Daily Buzz: 23 January 2026

China Central Bank Adviser Flags Risk of Holding US Debt

An adviser to China's central bank has publicly questioned the stability of rising US debt to finance deficit spending, the South China Morning Post reported. "I've heard so many people telling me that US debt as a share of gross domestic product has been rising and probably will continue to rise, "Huang Yiping was quoted as telling an academic symposium in Singapore. "That's probably not sustainable." Harvard Professor Jason Furman, who also attended the forum, agreed that the US budget deficit is "clearly too large" and that the country's debt trajectory had been on an increasingly "unsustainable path." US government debt last year rose by US$2.2 trillion to US$38 trillion. China has been steadily reducing its holdings of US government Treasury bonds but remains the fourth-largest creditor of the US. The last reported data show that China's holdings fell to US$862.6 billion in November.

Greenland 'in the Dark' About Accord Details

The new Greenland framework accord that has outwardly defused global tensions gives the US "total and permanent" access to the Arctic island, President Donald Trump said on Thursday. The framework makes no mention of Danish sovereignty over the island, but Trump a day earlier said the US won't seek to take over Greenland by force – a threat that caused a serious rift in the trans-Atlantic alliance. Greenland Prime Minister Jens-Frederik Nielsen welcomed the tentative agreement but said he is still in the dark on many of its aspects. The US already has military access to Greenland under a 1951 agreement, and the new deal reportedly gives it access to mineral rights on an island that ranks eighth in rare earth resources. NATO, which brokered the agreement, said the purpose of the accord is to prevent Chinese and Russian influence in Greenland. European nations that have strongly oppose a US takeover of Greenland remain wary, given Trump's track record of flip-flopping on policies.

Ukraine Trilateral Talks Scheduled for First Time

Ukraine President Volodymyr Zelensky, after a meeting the President Donald Trump at the World Economic Forum meeting in Davos, said trilateral talks involving Ukraine, Russia and the US will be held for the first time, scheduled on Friday and Saturday in the United Arab Emirates. Russian will need to make compromises, he said, if the four-year war in Ukraine is to end. The thorny issue of who will control what territory under a peace plan remains to be resolved. Zelensky urged European allies, who have been riveted on the Greenland issue, to do more to secure a favorable peace agreement.

'Board of Peace' or UN Usurper?

US President Donald Trump and leaders from 20 countries officially signed the charter creating Trump's "Board of Peace," which was originally aimed at overseeing reconstruction of Gaza but has since morphed into an international organization pledged to resolve global conflicts. The charter makes no reference to Gaza. Trump reportedly invited 60 nations to become members of the board, offering them three-year terms or permanent seats if they pay US$1 billion. Of the 20 or so countries agreeing so far to serve on the board, only four rank among the 20 most populated nations and only five are among the 20 biggest global economies. Among the board members are Saudi Arabia, Egypt, Turkey, Israel, Indonesia and Pakistan. Among the noticeable no-shows are China, India, Japan, the UK, France, Brazil, Canada and Australia. Russia has said it is considering joining.

Critics of the board said it's a Trump vanity project aimed at sidelining the UN. The Guardian newspaper said it resembles "an imperial court." The executive board of the group, to be chaired by Trump, includes US Secretary of State Marco Rubio, US envoy Steve Witkoff, son-in-law Jared Kushner and former UK prime minister Tony Blair. Trump, Witkoff and Kushner are property developers. Kushner on Thursday unveiled a US$30 billion blueprint for reconstruction of Gaza that includes residential towers, data centers and seaside resorts.

Finland's Prime Minister to Visit China

Finland's Prime Minister Petteri Orpo will pay an official visit to China next week at the invitation of Chinese Premier Li Qiang, China's foreign ministry said on Thursday. He will meet President Xi Jinping and other officials to discuss bilateral relations. His trip comes days ahead of a scheduled visit by UK Prime Minister Keir Starmer and follows one by Canadian Prime Minister Mark Carney as China seeks to strengthen foreign ties.

Top Business

Xiaomi Launches Buyback to Shore Up Share Price

Electric car and smartphone maker Xiaomi said it will repurchase and cancel up to HK$2.5 billion (US$320 million) of its Hong Kong share to demonstrate confidence in the company's long-term business prospects. Fewer shares outstanding will lift the company's share price, which has dropped about 40 percent from its September high. Xiaomi is currently facing stiffer competition both in autos and smartphones from domestic rivals that include Huawei, and it also is facing rising costs for core components like memory chips.

CATL Unveils Batteries to Extend Range, Withstand the Cold

Contemporary Amperex Technology (CATL), the world's largest automotive battery manufacturer, launched its upgraded Tectrans 2 series specifically engineered for the vehicle fleets and other commercial uses. A standout feature of the new batteries is resilience in cold climates, which can affect operation of batteries. The cells can operate efficiently at minus-15° Centigrade and support a fast charge in 30 minutes, nearly a third faster than previous generations. The series includes a high-capacity version capable of an 800-kilometer range. CATL also introduced a battery swapping service to minimize recharging time for fleet operators.

Chinese Automakers Make Strong Inroads in Europe

China automakers, who have been making a big push into Europe as mainland sales slow, are seeing the fruits of their outbound strategy. Sales of Chinese autos in Europe in December surged 127 percent from a year earlier, despite EU tariffs on China-made electric vehicles. Chinese carmakers sold 109,900 vehicles in Europe last month, Yicai Global reported, citing preliminary data from market research firm DataForce. Sales of all-electric and plug-in hybrids jumped about a third. For the whole year, Chinese automakers doubled sales and market share in Europe, with 810,000 vehicles taking 6 percent of the market. SAIC Motor's MG was the best-selling Chinese brand there last year, ranking 16th in the top 20 of overall car sales on the continent. BYD placed second with sales of 187,000 vehicles. Chery Automobile's Jaecoo and Omoda brands, and Geely Automobile's Polestar also had strong sales. Amid European concerns about a flood of imported cars, many Chinese automakers are setting up production factories on the continent.

TCL, Sony to Team Up on Home Entertainment Venture

China electronics and appliance giant TCL said it will partner with Japan's Sony in a new joint venture that will control Sony's home entertainment business. TCL will hold 51 percent of the venture, which will handle global product development, manufacturing, sales and customer services for televisions, audio equipment and related products. Investment in the venture wasn't disclosed. The venture boasts the synergy of TCL's display technology, integrated supply chain and cost efficiency with the Japanese electronics giant's audio-visual expertise and brand value. TCL said the venture will continue to market high-profile Sony and Bravia brand names. Sony's global TV shipments in 2025 are estimated to have slipped 0.7 percent, while TCL shipments rose 5.4 percent.

Economy & Markets

Longcheer Rises in Hong Kong Debut

Shares in Shanghai-based Longcheer Technology closed up 3.6 percent in their Hong Kong trading debut on Thursday, as investor interest in the technology sector continues to deliver positive starts to initial public offerings. The company raised HK$1.62 billion (US$207.8 million) in the share sale, giving it a market capitalization of HK$25.6 billion. US chipmaker Qualcomm and China's OmniVision are among cornerstone investors. Longcheer was the world's largest smartphone original design manufacturer by shipment volume in 2024, with a market share exceeding 32 percent. Founded in 2004, the company's clients include Xiaomi, Samsung Electronics, Lenovo and Oppo.

China Reports Record Grain Output

China's grain output in 2025 hit a record high of 715 million tons, officials said at a State Council press briefing on Thursday. The harvest rose 13 percent from a year earlier. Higher production lifted the per-capital disposable income of rural residents by 6 percent to 24,456 yuan (US$3,500) a year. Vice Agriculture Minister Zhang Xingwang said emerging technologies applied to the farm sector are improving yields and operations. They include agricultural drones, which now exceed 300,000 nationwide.

Shanghai Posts Strong Retail Sales, Helped by Record Tourism

Shanghai retail sales of consumer goods expanded 4.6 percent in 2025 from a year earlier, helped by a record number of tourists to the city. Sales topped 1.6 trillion yuan (US$238.4 billion) and exceeded the national gain by nearly a percentage point. The city logged a 40 percent increase in overseas tourists last year to 9.36 million. Government policies of visa-free 14 day stays for most foreign nationals and refunds of value-added tax on goods purchased in the city helped buoy tourist numbers and spending.

Shanghai Seeks Pricing Power in Non-Ferrous Metals

Shanghai is rolling out new measures to promote development of non-ferrous metals like copper, aluminum, zinc, lead, nickel and tin, and to tighten links between futures, spot and derivatives market trading in the metals. The city is seeking to establish itself as a global hub in commodities trading, The Paper reported. The Shanghai Futures Exchange offers 11 contracts on non-ferrous metals. China, the world's largest producer and user of non-ferrous metals, wants to leverage that dominance to more global influence over pricing. Its production of non-ferrous metals in December rose 5 percent from a year earlier to 7 million tons.

Japan Exports, South Korea Growth Miss Forecasts

Japanese exports in December rose 5.1 percent from a year earlier, short of market expectations, with shipments to the US plunging 11.1 percent. Exports to mainland China, Japan's largest trading partner rose 5.6 percent, and shipments to Hong Kong soared 31 percent. Imports in the month rose 5 percent.

South Korean economic growth slowed in the final quarter of 2026 to 1.5 percent, missing analysts' forecasts, on a sharp drop in construction investment and lower exports. Growth slowed from 18 percent in the third quarter. For the full year, the economy expanded 1 percent, its slowest past in five years.

Goldman Sachs Raises Forecast for Gold Price

US investment bank Goldman Sachs has raised its forecast of gold prices by the end of this year to US$5,400 per ounce from US$4,900. The higher expectation comes as gold prices keep hitting new record highs, with investors piling into the precious metal as a hedge against the uncertainties of geopolitical tensions. The bank said its forecast is based on the assumption that existing holders of gold won't liquidate their positions and that the private sector and central banks – particularly in emerging economies – will continue to buy bullion. It forecasts that central banks will buy 60 tons of the metal this year.

Corporate

Honor Posts Strong Growth, Releases New Phone Models

Honor, a Chinese smartphone maker, said it had 55 percent sales growth in the first three quarters of last year, cementing its place as the fastest-growing smartphone brand in the world. Overseas sales now account for nearly half of its business, according to researcher Omida, with strong growth in the Middle East, Africa and Latin America. Its latest product line, being launched today, includes the Magic8 Pro Air: a sleek flagship to rival Apple's iPhone Air with a more powerful camera and battery, and the Pro Molly, a collaboration with toymaker Pop Mart. Starting price for the flagship series will be 4,999 yuan (US$717), after national trade-in subsidies are applied.

Alibaba May Spin Off, List T-Head Chip Unit

Alibaba is moving toward a spinoff and listing of its chip design unit T-Head, Bloomberg News reported. T-Head, founded in 2018, is viewed as an adjunct of Alibaba's full stack cloud infrastructure and is deeply integrated with its AI infrastructure.

Vanke Fends Off Debt Repayment a Third Time

China Vanke, once China's biggest real estate developer, secured creditor approval for deferred payment on a 1.1 billion yuan (US$160 million) bond, staving off default for the third time in a month. The bond, with a January 2028 maturity date, has a put option that allows creditors to demand repayment of the principal on January 22. Under the deal, 90 percent of creditors agreed to defer payment of 60 percent of the principal by a year. Separate agreements with two earlier groups of creditors expire this month, so the company still faces tough negotiations. Vanke is burdened with about US$50 billion in debt, stung by the liquidity crisis that hit the mainland property sector in 2021.

Iron Ore Miner Fortescue Seeks to Strengthen China Ties

Australia's Fortescue, the world's fourth biggest miner, said it plans to buy more equipment from China to strengthen ties with its largest buyer of iron ore. The gambit comes as China Mineral Resources Group, which buys iron ore on behalf of more than half of China's steel mills, continues to restrict purchases from rival Australian iron ore producer BHP. To bolster its presence in China, Fortescue said it has strengthened its senior leadership on the mainland and will purchase battery electric storage equipment, solar panels and wind turbines from Chinese companies.

Apple China Offers Price Cuts on Some Products

Apple in China announced discounts of up to 1,000 yuan (US$143) on designated iPhones, Macs, iPad and Apple Watches from January 24 to January 27, ahead of the Lunar New Year next month, a time of gift-giving. The latest iPhone 17 model is not included in the price-cutting. Apple sales have rebounded on the Chinese mainland since the introduction of the iPhone 17, but the company still faces stiff competition from domestic rivals in other electronics products.

Burberry Credits Sales Rise to Young Chinese Consumers

UK luxury fashion retailer Burberry said young shoppers in China were a major contribution to a strong holiday season last month. Burberry said comparable global store sales rose 3 percent in the fourth quarter of last year, with sales in China increasing 6 percent, thanks to Gen Z consumers. The company has stepped up marketing efforts in China, including a branded ice rink and outdoor wear store Beijing, and a pop-up shop at the Chongli ski resort in Hebei Province, Reuters reported. The company has also launched a campaign to parlay its trademark logo of a knight on horseback to help sales in the coming Lunar New Year – the Year of the Horse.

Surface Unveils Developments for Intelligent Manufacturing

Shanghai-based Surface, a startup in industrial robot surface treatment, launched its AI intelligent grinding technology and related embodied intelligence platform. The development translates the "tactile feel" of master grinders into quantifiable data models, giving robots the "eyes" and "brains" needed to handle complex surfaces with real-time precision.