Daily Buzz: 30 December 2025

China Hosts Cambodia-Thailand Talks

China held two days of trilateral talks with Cambodia and Thailand after they agreed to a ceasefire that China helped broker. The truce, announced on December 27, ended three weeks of fighting this month over a longstanding border dispute. It's the second ceasefire agreement this year. Chinese Foreign Minister Wang Yi said Thai and Cambodian representatives at the meeting expressed their commitment to de-escalation of hostilities and improved bilateral dialogue. China said it is willing to provide humanitarian assistance to both countries, support efforts to remove landmines and facilitate communication between the two nations' militaries.

Russia Claims Ukraine Attempted Attack on Putin Home

Russia said it is reviewing its negotiating stance in US-mediated peace talks after Ukraine launched a drone attack on a President Vladimir Putin residence in the Novgorod region west of Moscow on Monday. The Kremlin said the drones were destroyed by Russian air defenses and Putin was in residence at the time. Kiev flatly denied the accusation, calling it ruse to undermine chances for peace. Trump said he was angry when Putin told him of the attack on a phone call. Asked if US intelligence had any evidence verifying Moscow's allegation, Trump said, "We'll find out." The Russian accusation came after the president held three hours of peace talks with Ukrainian President Volodymyr Zelensky at his Miami estate, with no breakthrough deal announced.

Trump Turns Focus Back to Fraught Gaza Peace Plan

US President Trump welcomed Israeli Prime Minister Benjamin Netanyahu at his Florida estate to Palm Beach try to create fresh momentum for the next step of his Gaza peace plan – the start of reconstruction efforts and a demilitarization of the territory, presided over by an interim international body. Netanyahu has been accused of dragging his feet on the next step, amid the pressure from the rightwing of his government coalition that wants to keep control of the Palestinian territory. The issue of Hamas disarming also remains thorny. The group has said it is ready to discuss "freezing or storing" its arsenal of weapons, but insists it has a right to keep arms as long as Israel occupies Palestinian territory. An October ceasefire, the first step in Trump's peace plan, has been riddled by violations on both sides. The UN has also accused Israel of violating its ceasefire obligations by continuing to restrict full access of aid to Gaza.

Trump said after the meeting that the US would support another major strike on Iran were Teheran to resume rebuilding ballistic missile or nuclear weapons programs. "We know exactly where they're going and what they're doing," Trump said. The US and Israel attacked Iranian nuclear sites in June.

Top Business

FAW Invests in Leapmotor, a First in China's Car Market

FAW, China's oldest carmaker, has agreed to acquire a 5 percent stake in electric vehicle startup Leapmotor for 3.7 billion yuan (US$534 million), the first investment by a state-owned company in a new energy vehicle company, the South China Morning Post reported. The investment comes despite forecasts of slowing domestic car sales in 2026. Leapmotor, 19 percent owned by Stellantis, has been one of China's most successful new energy vehicle startups. Leapmotor Chief Executive Zhu Jianming said his company is aiming to sell 1 million vehicles in 2026 and more than 4 million vehicles a year within the next decade, which would catapult it into the ranks of the world's top 10 automakers. The Hangzhou-based company will be launching a new premium lineup of models, with prices starting at 250,000 yuan. Leapmotor has been chipping away market leader BYD. For the first 11 months of the year, Leapmotor sales almost doubled to 482,447 vehicles, while BYD domestic sales fell 5.1 percent to 3.1 million units. Leapmotor is starting production at a new factory in Spain in 2026.

China Adjusts Import Tariffs for 2026

China adjusted import tariff rates on a range of goods, effective January 1, as part of efforts to improve their quality and enhance links between domestic and global markets, the State Council's Customs Tariff Commission said. Under the revision, provisional tariffs will be lowered on 935 products, including specified advanced industrial materials such as hydraulic cushions, special composite contact strips and recycled black powder for lithium-ion batteries. Tariffs will also be lowered on selected medical products, including artificial blood vessels and diagnostic test kits for infectious diseases. China will add new tariff subcategories for products such as intelligent bionic robots and bio-aviation fuel.

Xiaomi Co-Founder Plans Share Sell-Down

Electric car and smartphone maker Xiaomi said Lin Bin, its co-founder and vice chairman, plans to sell up to US$2 billion of his company shares, starting in December 2026, the South China Morning Post reported, citing a Hong Kong stock exchange filing. Xiaomi shares fell 1.6 percent on the news. Lin, who owns 2.3 billion in Class A and B shares valued at an aggregate US$10 billion, will cap sales at US$500 million in any 12-month period, with the proceeds earmarked for an investment fund. Lin, a former Google engineer, and current Chairman Lei Jun founded the company in 2010.

Economy & Markets

China Central Bank Bolsters Digital Yuan

The People's Bank of China rolled out a plan to ramp up the management and support systems for its digital yuan, effective on January 1. "We should work faster to boost China's strength in finance, and the digital yuan is part of that steady development," Lu Lei, deputy governor at the nation's central bank, wrote in an article published in Financial News. He said the action is aimed at keeping the digital yuan in pace with the evolution in the international monetary system. The central bank is currently overseeing pilot programs for use of the digital yuan both domestically and abroad. Its transaction value at the end of November was 17 trillion yuan (US$2.4 trillion).

Separately, the Hong Kong Monetary Authority announced that leading banks from Southeast Asia and the Middle East – including OCBC, Bangkok Bank, First Abu Dhabi Bank and Qatar National Bank – have joined its yuan liquidity finance facility, bringing lender membership to 40 and underscoring the city's role as a global offshore yuan hub, the South China Morning Post reported. The authority said it on Monday it doubled the quota allocated to banks under the facility to 100 billion yuan (US$14 billion).

Gold, Silver Cool After Record Rallies

Gold, silver and platinum retreated on Monday as investors took some profits from the sharp year-end rally in precious metals. Silver futures plunged intraday as much as 15 percent after hitting a record US$80 an ounce. In late New York trading, silver was priced at US$71.93. Gold was down 4 percent at US$4355, and platinum plunged 14 percent to US$2,133. Record highs by the metals were attributed to the weak US dollar and geopolitical concerns.

China Beef Industry Seeks Protection From Imports

China's Ministry of Commerce announced that it is extending an investigation into beef imports after a major animal husbandry association sounded an alarm on the state of the domestic industry. The probe covers fresh, chilled and frozen imports, which rose 73 percent from 2019 to US$14 billion last year but fell 9.5 percent in the first half of this year after China restricted shipments from the US. Import prices have been more than 50 percent lower than those of domestically produced beef. A petition from the China Animal Agriculture Association cited growing strains throughout the entire industry chain, noting that the stock of breeding cattle declined 3 percent last year as breeders face mounting losses. China is the world's biggest beef importer, with Brazil, the US, Australia and New Zealand among major suppliers.

Corporate

Chery Plans US$800 Million Vietnam Factory

Chinese carmaker Chery plans to build its largest factory in Southeast Asia, to be located in Vietnam, by mid-2026, Nikkei reported. The US$800 million factory will have capacity for production of up to 60,000 left-hand drive vehicles, with the potential to increase output to 200,000 vehicles. Currently, all vehicles – electric, hybrid and gasoline-powered – that Chery sells in Vietnam are imports.

China Eastern, Comac Team Up on Larger C919 Jet

China Eastern Airline will partner with state-owned Commercial Aircraft Corp of China (Comac) in the development of an extended version of the narrow-body C919 jetliner to carry 200 or more passengers, amid rising public demand for flights. The current version of the C919 can seat 158-192 people, the South China Morning Post reported. Aside from more seating, the new model could extend flying range to 4,500 kilometers or more, allowing the jetliner to be used on some international routes as well as its current deployment on domestic routes. Comac, designer and manufacturer of China-made aircraft, hasn't not yet announced a timeline for the extended version.

TCL China Star Acquires Zhaoyuan Optoelectronics

TCL China Star Optoelectronics Technology, a leading maker of liquid-crystal displays, acquired a controlling stake in Zhaoyuan Optoelectronics for 490 million yuan (US$70 million), including assumption of 1.8 billion yuan in debt claims. Zhaoyuan had a net loss of 300 million yuan in the first 10 months of this year.

3-D Shoe Printer Expands Into Robotic Muscles

Suzhou-based startup PollyPolymer is using its expertise in ultra-fast 3-D printed footwear to design bionic "muscles" that give humanoid robots lifelike agility, the South China Morning Post reported. The technology uses advanced materials of high elasticity, heat dissipation, wear resistance and anti-aging properties that give robots a skin-style texture. Wang Wenbin, founder and chairman of the company told the newspaper PollyPolymer also has developed joint cushioning kits for UBTech Robotics and integrated foot kits for EngineAI. Wang started the company in 2017, with a focus on shoes. This year it printed 2 million pairs. The company has collaborated with Disney, Samsung and Bosch in adapting the technology to specific industry needs.