Daily Buzz: 25 December 2025

China President Urges State-Owned Companies to Upgrade

China's state-owned companies, once the prime engine of economic growth but now often lagging the private sector in innovation, should redouble their efforts to upgrade outdated production and embrace the new digital revolution, President Xi Jinping said. "Central state-owned enterprises must fully recognize the responsibilities and missions they shoulder and better serve the overall priorities of the Party and the state," the president said at a meeting of leaders of state-owned companies, Xinhua reported on Tuesday. His remarks came as the 15th Five-Year Plan (2026-30) is crafted to set the stage for a big leap in scientific and technological development. Xi called on the companies to improve their management, strengthen competitiveness and become more active in setting the pace in technological breakthroughs and improving China's self-sufficiency.

China Warns Against US Chip Tariffs

China hit back at the US announcement of plans to impose tariffs on its semiconductor industry beginning in 2027. Foreign Ministry spokesperson Lin Jian said such action would disrupt global supply chains and hurt the chip industry worldwide, calling "groundless" Washington's claim that China has resorted to unfair practices to dominate the industry. The Washington delayed imposition of semiconductor tariffs because of a one-year trade truce with Beijing.

Ukraine Signals Possible Territorial Concessions

Ukraine President Volodymyr Zelensky revealed for the first time publicly that his nation might be willing to withdraw its troops from parts of its eastern region to create a demilitarized zone as part of a 20-point, US-brokered peace deal on the table. He said the plan is "the main framework" for ending the nearly four-year war and includes NATO-style Western security guarantees in the event of any future Russian invasions. The Kremlin has so far insisted that Ukraine cede almost a quarter of its own territory in the eastern Donetsk region in return for a peace deal. The rest of the region is already under Russian occupation. In the continuing war this week, Ukrainian troops were forced to retreat from Siversk, a town in Donetsk, as the Russia army continued a slow but steady advance to seize more territory. Siversk, once home to about 11,000 residents, lies in ruins.

Holiday Sparkles, Many Asia Markets Close for Christmas

Gold, silver and platinum prices added a bit of glitter to the Christmas holiday season this week, with the precious metals hitting new record highs, before trimming some gains in New York on Wednesday. Gold prices breached US$4,500 an ounce for the first time, with a 70 percent year-to-date surge. Platinum surged past US$ 2,300 per ounce, and silver approached US$72. The gains reflect the weakest US dollar in two years and geopolitical concerns.

The Christmas holiday will halt trading in much of Asia today. Markets in Malaysia, Singapore, South Korea and India will close. Hong Kong and Jakarta markets will be closed both today and tomorrow. Japan and China markets will be open, but there will be few global leads for them to follow with US and European markets also closed.

Top Business

LandSpace Clears Procedural Hurdle Toward IPO

Chinese privately owned rocket company LandSpace completed the procedural "tutoring" process with Chinese securities regulators on its way to an initial public offering on Shanghai's STAR market. Often called China's answer to Elon Musk's SpaceX, LandSpace has been developing reusable rockets that save on cost and turn-around launch time. The Chinese government has opened its space technology industry to private companies to complement work by state-owned companies. Beijing-based LandSpace became the first Chinese entity to conduct a full reusable rocket test earlier this month, but the booster crashed rather than completing a controlled landing, Reuters reported. The company, which said it expects to complete a successful test in the new year, hasn't announced how much it will seek to raise in the IPO.

Nvidia to Make Largest AI Investment

Nvidia, in its largest deal to date, has agreed to buy AI chip designer Groq for US$20 billion in cash, CNBC reported, citing investment firm Disruptive, which led Groq's most recent fundraising round. California-based Groq, founded in 2016 by former Google engineers, designs high-performance artificial intelligence accelerator chips. Nvidia, one of the world's leading semiconductor companies, had US$60.6 billion cash and short-term investments at the end of October. Global tech giants are pouring huge sums of money into AI development and expansion.

China Delivers World First in Green Crude Carriers

The world's first "smart" very large crude carrier powered by methanol dual-fuel, was delivered in the port of Dalian in Liaoning province by China State Shipbuilding Corp. The vessel, called New Explorer, marks a milestone in China's transition into green shipbuilding. It is powered by a domestically developed methanol dual-fuel host and methanol fuel supply system, reducing carbon dioxide emissions by up to 92 percent, sulfur oxide emissions by 99 percent and particulate matter emissions by 90 percent, compared with use of conventional fuel.

Major New Find in Bohai Sea Oilfield

China National Offshore Oil Corp announced on Wednesday a new 100-million-ton discovery in the Bohai Sea off the eastern coast, the seventh discovery of its size there since 2019. A single well in the field can produce up to 370 tons of crude oil a day.

Economy & Markets

China Electricity Use Climbs in Month

China's electricity consumption, a key barometer of economic activity, rose 6.2 percent in November from a year earlier to 835.6 billion kilowatt-hours, the National Energy Administration reported. Major industrial use increased 7.9 percent, while residential consumption was up 9.8 percent. For the first 11 months of the year, China's total power use climbed 5.2 percent to about 9.46 trillion kilowatt-hours. In its shift to renewable energy from fossil fuels, China has set forth a roadmap for thermal power, targeting 15 gigawatts of installed capacity by 2030.

Mexico Tops China Auto Export List

Mexico was the top market for Chinese automobile exports in November, with 90,212 vehicle shipments, according to the China Passenger Car Association. Russia ranked second with 61,881 vehicles, followed by the United Arab Emirates with 53,114. Other major export markets included Brazil, Australia, the United Kingdom and Indonesia.

China Short Drama Market Surges

Growth of China's booming short drama industry is set to continue in the next two years, with the value of the market expected to reach 86 billion yuan (US$12 billion) by 2027, according to an industry report from business data platform Qixinbao. The report says estimated 19 percent growth over the period will be supported by investment inflows and integration of AI technologies. Short dramas are typically online video series with 80-100 episodes, each lasting three to 10 minutes. They have become a fast-growing segment of China's online entertainment market, tailored to an audience on the go. Some 350,000 short drama-related companies were operating as of October

Japan Faces Record High Debt-Servicing Costs

Japan, facing some record high yields on its government bonds, has set a key rate used to calculate the country's likely debt interest payments at 3 percent, the highest in nearly three decades, Bloomberg News reported. The level marks a sharp rise from 2 percent used in the current fiscal year and could push Japan's debt servicing costs to a new record. Budget numbers are expected to be released officially and approved by the cabinet on Friday, amid concerns about the state of Japan's finances and the expansive spending policy of Prime Minister Sanae Takaichi.

Corporate

Alibaba Launches World-First AI Agent Operating System

Alibaba workplace platform DingTalk launched Agent OS on Wednesday, saying it is the world's first dedicated operating system for AI agents – moving beyond traditional chat interfaces, Yicai Global reported. The agents can independently plan and execute complex professional tasks.

BMW Begins Trial Production of Electric Cars in China

German carmaker BMW began trial production of its "new class" electric vehicles at its Shenyang plant in northeastern Liaoning Province. The new long-wheelbase BMW iX3 sits at the core of the company's strategy for development of electric, digitalized vehicles. Mass production is expected to commence next year. BMC is collaborating with Chinese partners like battery maker CATL and tech giant Alibaba on battery development and AI integration in vehicles.

Kinghood Said to Default on Gold-Related Products

China gold-jewelry processor Kinghood Holdings failed to make payments this month on gold-related wealth management products, Yicai Global reported. Total investment funds involved are estimated at up to 80 billion yuan (US$11 billion). Shenzhen authorities have launched a probe into the defaults. Yicai said a visit to the company's headquarters in the city found it largely vacated.

Xreal Debuts Glasses With 2D-to-3D Conversion

Xreal launched its 1S glasses, the industry's first augmented reality glasses capable of built-in, real-time 2D-to-3D video conversion. Powered by the company's own X1 spatial computing chip, the company said the device delivers a "500-inch, virtual display" experience. The 1S is priced at 3,299 yuan (US$465). "Glasses are the terminal closest to human perception," said Xu Chi, founder and CEO of Xreal. "They are the most likely gateway to host the next generation of computing."

Toy Pop-Up Shop Draws Crowds to Shanghai Mall

Here, a fashion toy brand, opened an immersive pop-up store at Shanghai K11 mall in time for the festival season, drawing huge crowds and long queues to see its Wakuku and and SiiNono toys. The pop-up store blends immersive storytelling and hands-on experiences.

China Union to Acquire Argentine Lithium Miner

Shenzhen-based China Union Holdings said it plans to acquire Argentine miner Argentum Lithium from Lithium Chile for US$175 million. The Chinese company became a minority shareholder in the Argentine developer of lithium salt-mining technology in 2023. The deal would see China Union take an 80 percent interest in the Arizaro project in Argentina's Salta province.