Daily Buzz: 21 January 2026

China Pledges Efforts to Pare Trade Surpluses

Chinese Vice Premier He Lifeng, in an address to the World Economic Forum's annual Davos meeting in Switzerland, praised the resilience of the nation's economy in face of global headwinds and said the domestic market will be opened further to correct trade imbalances with other countries. China ran a record US$1.2 trillion trade surplus last year, but He said the country is a "partner, not a rival" in trade. Warning against global protectionism, he said, "The world must not return to the law of the jungle where the strong prey on the weak," he said. "China's development presents an opportunity, not a threat to the world economy." His speech came just days after China announced it had achieved its 2025 growth target of 5 percent.

US-European Rift Over Greenland Intensifies

The US and European allies remained in a tense standoff over US President Donald Trump's vow to take over Greenland from the Danes and punish European countries who oppose him with higher tariffs. There's "no going back," Trump said told a press briefing before heading to the World Economic Forum's annual meeting in Davos, but added that the US will develop a plan for ownership of the Arctic island that "NATO is going to be very happy" with. Asked about concerns that a takeover of Greenland could spell the end of NATO, Trump said the Western security alliance is only as strong as US participation in it. Meanwhile, Europe showed no signs of buckling under pressure. French President Emmanuel Macron, in a speech at Davos, said, "We don't give in to bullies."

Russia Foreign Minister Sergey Lavrov said Trump's plan to annex Greenland heralds a "deep crisis" for NATO and raises questions about the alliance's future if "one NATO member is going to attack another." Earlier, a Kremlin spokesman said Trump would go down in world history if he succeeded in taking Greenland. China's foreign ministry rebuked US claims that China poses a threat in the polar region and urged Washington to stop using that excuse as "a pretext to pursue its own selfish interests."

Earlier in the day, Trump linked a UK policy decision to his list of reasons for taking over Greenland. In a slap in the face to British Prime Minister Keir Starmer, he called UK plans to return the sovereignty of the Chagos Islands in the Indian Ocean back to Mauritius "an act of great stupidity," after earlier endorsing the move. Under the US$4.6 billion deal, the Diego Garcia airbase on Chagos would be leased back to the US and UK for 99 years. Trump said the return of the Chagos is another "in a very long list of national security reasons why Greenland has to be acquired."

Trump Isn't First US President to Set Sights on Greenland

In an historical footnote to the current controversy over Trump's plans to take over Greenland, the BBC said he's actually the fourth US president who has tried. The most recent was president Harry Truman in 1946, who offered Greenland US$100 million in gold for the island. Even as far back as the 19th century, there were calls to take control of the ice-covered island and even a proposal that the US swap the Philippines, which it then owned, with Denmark for Greenland. The island is strategically important as the gateway to Arctic sea lanes and frozen mineral reserves now more accessible because of melting ice.

Israel Razes UN Relief Agency Headquarters

Israel began demolishing the East Jerusalem headquarters of the UN agency that was once the main provider of aid to Palestinians in Gaza after banning its activities in the country. UN Relief and Works Agency for Palestine Refugees called the move "an unprecedented attack . . . and a new level of open and deliberate defiance of international law." Israel last year accused the agency of hiring Hamas-affiliated workers, a claim a subsequent UN investigation found involved only a few staff.

ASEAN Won't Observe Myanmar Poll or Endorse Its Outcome

The 11-member Association of Southeast Asian Nations rejected a request from Myanmar to send observers to monitor the nation's ongoing three-stage election and won't endorse the outcome of the military-controlled poll, Malaysia's foreign minister told his parliament on Tuesday. The election, which began in December has drawn criticism from the United Nations and Western governments as a rigged ruse to legitimize junta rule.

Top Business

China to Step Up Incentives for Consumer Spending

China plans to unveil new policies to spur domestic spending and tackle supply-demand imbalances, according to Wang Changlin, deputy head of the National Development and Reform Commission. He told a press conference that the focus of incentives to counter weak demand will focus on the services sector, and the policies will be spread across the 15th Five-Year Plan (2026-30). Zhou Chen, an official at the state planning agency, told the briefing that the government will continue to use trade in subsidies to support purchases of consumer goods, including electric cars, but more emphasis will be placed on sectors such as elderly care, health care and leisure activities.

Separately, China's finance ministry released a package of measures to spur private investment and spending, including a special guarantee program for corporate lending and interest subsidies for personal loans. The 500-billion-yuan (US$71 billion) guarantee program is aimed at private investment by smaller companies and will last for two years. The loan interest subsidies will cover fixed-asset loans and other financing.

Global Markets Succumb to Greenland Tensions

Financial markets that proved resilient last year in face of US President Donald Trump's often erratic trade and political policies tanked on Tuesday amid the Greenland controversy. In a sea of red, stocks across Asia, Europe and the US plunged, US government bonds sold off, and the dollar dropped. Safe haven investments like gold and silver rose to new records. In New York, the S&P 500 index lost 2 percent and the Nasdaq fell 2.4 percent. The yield on the 30-year US Treasury bond spiked up to 4.295 percent, and gold gained almost 4 percent to US$4,765. The Stoxx600 index in Europe slipped 0.7 percent. In Asia, the Nikkei index fell 1.1 percent, and the yield on the 40-year government bond hit a record 4 percent high. The Hang Seng in Hong Kong dropped 0.3 percent, and the benchmark Shanghai Composite Index gave up early gains to close flat.

PDD Probe Widens After Report of Punch-Up

China has broadened a probe into online retail giant PDD Holdings after some of the company's employees at its Shanghai headquarters got into fisticuffs with regulators probing allegations of corporate misconduct, Bloomberg News reported, citing unidentified inside sources. The investigation ranges from fraudulent deliveries to taxation issues. PDD shares in New York fell for seven trading sessions, losing more than 12 percent. PDD, which competes with the likes of Alibaba and JD.com, operates the Temu low-cost fashion platform, which has been under regulatory scrutiny in Europe. China has been cracking down on e-commerce platforms for anti-competitive behavior.

Workers Fear AI Will Rob Them of Jobs, Survey Finds

Some 80 percent of the 27,000 workers surveyed by Randstad, one of the world's largest recruitment agencies, expressed fears that artificial intelligence may usurp their jobs, with those born in the late 1990s or later the most anxious, Reuters reported. Job vacancies requiring AI agent skills have surged 1,587 percent, Randstad said in its yearly Workmonitor report. AI-focused tech firms have started to replace some jobs with automation, but industrial officials say the impact of AI won't be as severe as feared.

Economy & Markets

China Leaves Benchmark Lending Rates Steady

China's central bank kept its prime lending rates unchanged on Tuesday for an eighth month, though many analysts are predicting they may be lowered later this year if the economy falters. The People's Bank of China held its 1-year rate, used to finance corporate and consumer loans, at 3 percent, and the 5-year rate, used as a benchmark for mortgages, at 3.5 percent. China's growth in 2025 hit the government's target of 5 percent, largely on strong exports, though the property market remained soft.

Tesla, Geely Stand to Gain From Lower Ottawa Duties

Canada's decision to sharply reduce import tariffs on China-made electric vehicles will probably most benefit Tesla and Volvo and Polestar brands controlled by China's Geely Holding Group, according to Bloomberg. The tariff reduction, allowing 49,000 Chinese-made new-energy vehicles to enter the Canada at a duty rate cut to 6.1 percent from 100 percent, came after a meeting between Chinese President Xi Jinping and Canadian Prime Minister Mark Carney in Beijing last week. Transport Canada will certify which Chinese qualify for lower tariffs within eight weeks.

Busy Ming Prepares to List in Hong Kong

Busy Ming, China's largest snack and drink retailer, is seeking to raise up to HK$3.34 billion (US$428 million) in a Hong Kong initial public offering. The firm said it plans to sell 14.1 million shares at between HK$229.60 and HK$236.60, and begin trading on January 28. Busy Ming's two brands are Busy for You and Super Ming, which operate under a franchise system. The IPO will be a test of sentiment toward the consumer market in China amid slower spending.

Corporate

Xiaomi, Other China Smartphone Makers Slash 2026 Shipments

Chinese smartphone makers, including Xiaomi and Transsion, are slashing forecasts for 2026 shipments amid a global shortage of memory chips, the South China Morning Post reported, citing industry supply chains. Beijing-based Xiaomi cut its forecast by up to 70 million phones, and Shenzhen-based Transsion lowered its outlook by up to 45 million. The memory chip squeeze comes as major producers such as Samsung Electronics, SK Hynix and Micron Technology shift capacity to more advanced artificial intelligence chips.

Netease Cloud Music Inks Deal with Taylor Swift Label

Chinese streaming service NetEase Cloud Music said it signed a multi-year licensing agreement that allows it access to the Universal Group Music library, which includes artists such as Taylor Swift. Under the deal, both parties agreed to a "shared commitment" to responsible AI practices and protection for the intellectual property of artists.

LVMH to Sell DFS Travel Assets

LVMH French luxury brand LVMH and the shareholding Miller family said they have agreed to sell their DFS travel retail business in Hong Kong and Macao, and intangible assets such as brand names and intellectual property to the China Tourism Group Duty-Free in a deal valued at about US$395 million. Upon completion of the transaction, LVMH and the Miller family will participate in a capital increase for CTG Duty-Free by subscribing to newly issued Class H shares listed in Hong Kong.

Taiping Insurance Forecasts Profit Surge

China's Taiping Insurance Holdings said it expects 2025 net profit to increase up to 225 percent on gains in investments, though Fitch Ratings warns that its Hong Kong subsidiary faces massive claims this year related to the deadly Tai Po fire housing complex fire in November. In a statement to the Hong Kong stock exchange, Taiping said it will release 2025 earnings in March. The insurer made profit of HK$8.43 billion (US$1.1 billion) in 2024.

Yinsheng E-Pay Fined for Regulatory Breaches

Shenzhen-based Yinsheng E-Pay Technology was fined 15.8 million yuan (US$2.3 million) by China's central bank for regulatory breaches in merchant, clearing and account management practices.