Daily Buzz: 29 December 2025

Top News

No Vile Content: China Cracks Down on AI Abuse

China's cyberspace regulator released a draft of new rules tightening controls over use of human-simulated artificial intelligence to ensure that harmful or fake content – including pornography, violence, illegal religious activity, gambling or criminal incitement -- isn't served up to the public and national security isn't compromised. The ban also prohibits content that glamorizes suicide, self-harm or bullying. Under the rules, users must be informed when they open humanoid content generated by AI, according to the Cyberspace Administration of China. The new rules require online providers of such AI-generated content to conduct security assessments and make a report to regional regulators. The new rules are open for public feedback through January 25.

China is heavily supporting advancement of AI technologies, which have a way of running ahead of regulation. Lin Wei, president of Southwest University of Political Science and Law, in an article cited by Global Times, said breakthroughs in AI technology are propelling human-machine interaction beyond mere functional assistance toward emotional and personalized engagement, which gives rise to new risks and challenges the foundations of social order.

Trump Says Peace in Ukraine 'Closer Than Ever'

US President Donald Trump said "we are closer than ever before" though "thorny issues remain" after high-stakes peace talks with Ukraine President Volodymyr Zelensky at his Florida estate. "In a few weeks, we will know one way or another" whether the killing will stop, Trump told a joint press conference with Zelensky after the nearly three-hour talks concluded. Trump said he talked with Russian President Vladimir Putin by phone and thinks the Kremlin is serious about peace. The US president said issues related to control of territory remain to be ironed out, with a proposal for a ceasefire, free-trade zone in part of the contested eastern industrial region of Donbas yet to be finalized. Details of security guarantees for Ukraine against any future Russian attacks will be the subject of continuing negotiations What remains unclear is the status of large swathes of eastern Ukraine, which Russian now occupies and wants surrendered as a precondition of peace. Trump also said talks on the future of the Zaporizhzhia nuclear power plant, now occupied by Russia near the frontline, are proceeding. The peace plan also calls for US$800 billion in reconstruction aid for Ukraine, with Trump saying Russia will be "helping' in that process.

Thailand, Cambodia Begin New Ceasefire

Thailand and Cambodia began a ceasefire along their disputed border this weekend after defense ministers from both countries signed a new truce agreement. Weeks of fighting this month broke a truce signed in October in the presence of US President Donald Trump, who claimed credit for the cessation of hostilities. The latest three weeks of fighting killed an estimated 100 people and displaced millions of residents on both sides of the border. Mediation by the Association of Southeast Asian Nations and diplomacy from China brokered the new ceasefire. The contentious border, stretching 817 kilometers, was drawn during French colonial rule in the region in the last century.

Myanmar Holds First Election in Five Years

Myanmar is holding its first election since the military seized power in a coup five years ago. Voting will take place in three stages over the next month, but about half of the nation engulfed in civil war won't be participating. China, Russia, India and Vietnam have sent election observers, but the UN and Western nations have condemned the poll because the main opposition party, the National League for Democracy that won the last election, has been forced to disband. The military government has framed the election as a "return to democracy."

Top Business

China Hones Trade War Tools

China has revised legislation aimed at strengthening its ability to respond to trade wars by using tools such as export curbs or restrictions on foreign companies operating in the country. The revisions add provisions related to trade in digital and green technologies, and intellectual property.

Trade by China's privately owned export firms also comes under tighter scrutiny when related to national directives or foreign actions. The new measure will become effective on March 1. For much of 2025, China has been engaged in trade disputes with the Trump administration, which has sought to restrain the emerging power of Beijing in global commerce and geopolitics.

Consumer Goods Trade-Ins to Continue

China will continue subsidizing consumer goods trade-ins next year as part of broader efforts to boost domestic spending, Finance Minister Lan Fo'an said at a work conference in Beijing. The program, begun in 2024, encourages consumers to trade in older goods for new models. The subsidies, which are capped, cover a wide array of products, including smartphones, cars, furniture and electronic devices. The government finances the program with special-issue bonds.

Value of China's Core AI Industry Surges

China's core artificial intelligence industry, a government priority, surged in value this year to exceed 1 trillion yuan (US$142 billion), Xinhua reported. The Ministry of Industry and Information Technology has signaled further expansion in the sector in 2026, with emphasis on research and emerging breakthroughs in areas such as integrated circuits, advanced industrial materials, aerospace, low-altitude flight technology and biomedicine. In the first 11 months of the year, the value added by large high-tech manufacturing and equipment manufacturing companies increased by about 9 percent. China is attempting to become dominant in global development of AI technologies, despite attempts by the US to thwart that goal.

Economy & Markets

Shanghai Details Rocket IPO Eligibility

The Shanghai Stock Exchange issued details of its newly announced decision to give commercial rocket-launching companies a fast track to listing on its STAR Market even if they haven't generated profits or significant revenue yet. The exchange said candidates must be involved in research, manufacture and launch services of commercial rockets, particularly reusable launch vehicles. Firms involved in national missions or participating in major state projects will receive priority. Applicants must have been involved in at least one successful orbital launch using reusable technology. At least eight commercial aerospace companies, including LandSpace, are currently pursuing IPOs.

China Industrial Profits Decline

China's industrial profits in November fell 13.1 percent from a year earlier, accelerating from a 5.5 percent decline a month earlier, the National Bureau of Statistics reported. The biggest drop in more than a year reflected softer domestic demand and factory-gate deflation. Profits for the first 11 months of the year edged up 0.1 percent. By sector, profits in the automotive industry rose 7/5 percent in the January-November period, and high-tech manufacturing gained 10 percent. However, the coal mining and washing sector plunged 47 percent.

China ETFs Rise to a Record

The combined scale of China's exchange-traded funds (ETFs) this year surged to a record 6 trillion yuan (US$856 billion), a rise of more than 2.2 trillion yuan from 2024, when China introduced its first ETF, Shanghai Securities News reported. Chinese market regulators have encouraged growth in ETFs, which are linked to a pool of assets such as bonds, stocks, property, currencies or commodities like gold, and are traded like ordinary shares on stock exchanges. They give investors low-cost, easy access to baskets of assets without actually owning the assets. For example, an investor may invest in an ETF linked to a stock index. If that index rises, the investor profits.

Stock Dividends on the Increase

Cash dividends paid by China's Class A-share listed companies reached a record high this year, reflecting stronger corporate governance, regulatory pressure and growing demand from long-term investors for stable returns. According to Wind data, payouts announced so far this year have reached 2.64 trillion yuan (US$370 billion). For the last five years, dividends have risen a cumulative 12 percent amid regulatory prodding. The biggest dividend payers have been big state-owned banks, major telecom operators and energy giants. Technology, healthcare and green industries have been increasing payouts.

Corporate

Meituan's First Offline Instant Retail Outlet

Meituan, one of China's biggest e-commerce companies, has opened its first "instant delivery" offline store as it expands its popular fast retailing model to bricks-and-mortar retailing. Located in Beijing, the Ella Supermarket deploys a different retailing model from the company's discount community supermarket brand Happy Monkey, which opened earlier this year in Hangzhou and has since expanded to eight locations. The Ella store, supported by 1,000 warehouses, offers delivery within an hour. It's positioned to target higher-end consumers, with an emphasis on fresh food and prepared meals.

Markor Seeks Shift From Furniture to Technology

Shanghai-listed Markor International Home Furnishings, which sells high-end furniture, said it is seeking to acquire Shenzhen-based Wandtec Optoelectronic Technology as it continues to close mainland stores to stem losses in its core business, Yicai reported. Markor said the purchase will be a share-and-cash deal, still in its preliminary stages. No figure for the takeover was disclosed. For the first half of this year, Markor reported that its cumulative losses reached 317 million yuan (US$45 million).

Porsche Dealerships Report Problems

Porsche dealerships in parts of China have reported "operational anomalies," according to CarNewChina.com. Videos show empty showrooms at some locations, and consumers have complained that issues related to vehicle deposits and prepaid maintenance package deposits remain unresolved. Mengguan Porsche Center and Zhengzhou Zhongyuan Porsche Center have closed, and Shijingshan Porsche Center is expected to cease operations in the near future. Porsche China issued a public apology last week, acknowledging problems at some dealerships. Dong'an Holdings, parent of affected dealerships in the cities of Zhengzhou and Guiyang, said employees at those locations have been placed on leave, and consumer complaints are being processed. Porsche, like other foreign luxury brands, has had a tough year in the China market due to rising competition from domestic automakers, weak consumer demand and lagging progress in deploying smart driving features.