Daily Buzz: 7 January 2026

China Bans Dual-Use Exports to Japan

China banned exports to Japan of goods that can be used for either civilian or military purposes. The Commerce Ministry catalog of so-called "dual-use" items includes rare earth elements, advanced electronics, aerospace and aviation components, drones and nuclear-related technology. The ministry said the ban is effective immediately. China supplies about 60 percent of Japan's need for rare earths essential in automaking and other industries. China earlier took steps to restrict seafood imports from Japan and urged Chinese tourists to avoid Japan. Bilaterial relations have soured since early November, when then new Japanese Prime Minister Sanae Takaichi made remarks about Taiwan that Beijing called provocative. China's Xinhua news agency last month commented on an alarming a militaristic tone in Japanese government policies. Memories of Japanese atrocities and occupation during the Second World War remain fresh in China.

Trump Hasn't Ruled Out Military Takeover of Greenland

President Donald Trump is considering "a range of options" to acquire Greenland, including deployment of the US military, White House press secretary Karoline Leavitt told CNBC on Tuesday. Trump raised the Greenland takeover issue again after the successful US weekend military attack on Venezuela, taking control of its oil industry. Greenland is a semi-autonomous, mineral-rich island under the Kingdom of Denmark. Trump says the US needs the island, located in the strategic Arctic region, for national security reasons. It already has a major air force base in Greenland under an earlier security agreement.

Six European countries rallied behind Denmark in a statement issued on Tuesday. "Greenland belongs to its people, and only Denmark and Greenland can decide on matters concerning their relations," the leaders of the UK, France, Germany, Italy, Poland and Spain said. Danish Prime Minister Mette Frederiksen has warned that any forced annexation of Greenland would spell the end of NATO, the security alliance that includes the US, Denmark and other European countries.

France, UK Agree to Station Troops in Ukraine

France and Britain agreed to deploy forces to Ukraine as part of any peace deal ending the four-year war. The forces would be a pivotal part of Western security guarantees that Ukraine is seeking to deter future Russia attacks. At a Paris meeting with Ukrainian and European leaders, US negotiators said Washington accepts those terms. However, Russia has said in the past it won't accept any European troops in Ukraine. The talks made no progress on the thorny question of territory in eastern Ukraine claimed by both Kiev and Moscow. As peace talks slog on, the war continues. A Russian drone this week struck an oil plant in Ukraine owned by US-based Bunge, triggering a spill of 300 tons of oil onto the streets of Dnipro.

Nobel Peace Prize Winner to Return to Venezuela

Venezuelan opposition leader María Corina Machado said she plans to return to the country soon, after leaving hiding in Caracas to travel to Oslo to accept the 2025 Nobel Peace Prize, the Guardian reported. She said she hasn't spoken with President Donald Trump, who covered the peace prize for himself, since the US attacked Venezuela and sent President Nicolas Maduro to New York to face trial on drug-trafficking charges. She hasn't commented on Trump's remark that she isn't respected enough in Venezuela to be involved in a post-Maduro government even though her political ally Edmundo González is widely recognized as the winner of the 2024 presidential election considered rigged in Maduro's favor.

Top Business

Full Speed Ahead for China Carmakers Despite Go-Slow Signs

Chinese carmakers, many of them still unprofitable, are ignoring pessimistic forecasts for sales growth in electric cars this year and pushing ahead with ambitious targets for increased deliveries. Xiaomi Auto said it aims to deliver 550,000 electric vehicles in 2026, about a third higher than in 2025. BYD, the world's top electric carmaker, set a sales goal of 5.5 million vehicles, up 19 percent from last year, and Leapmotor Technology is aiming for 40 percent growth to one million vehicles. Geely Automobile said it plans to sell 3.5 million cars, up 14 percent, and Nio, which just rolled its millionth vehicle off the assembly line at its factory in Hefei, said it is targeting 50 percent annual sales growth.

Deutsche Bank, Morgan Stanley and JP Morgan have released forecasts suggesting that new vehicle sales could drop as much as 5 percent in 2026 in the saturated China market. The South China Morning Post reported that as many as 50 unprofitable Chinese electric vehicle brands could be forced out of business or face massive restructuring. In addition to overproduction and the rising cost of memory chips, the industry faces the halving of government tax breaks on purchases of new-energy vehicles, which came into effect on January 1.

Nvidia Unveils Technology to Make Cars Think Like Humans

Nvidia Chief Executive Jensen Huang announced a new tech platform called Alpamayo that he said will help self-driving cars think like the drivers they replace. He unveiled the platform at the annual CES technology conference in Las Vegas. "Alpamayo brings reasoning to autonomous vehicles, allowing them to think through rare scenarios, drive safely in complex environments and explain their driving decisions," Huang told the conference. A vehicle equipped with the technology, developed in partnership with Mercedes-Benz, will be released in coming months in the US before being rolled out in Europe and Asia, the BBC reported. Nvidia also said it's working with robotaxi operators on use of the company's AI chips and Drive AV software stack to power their fleets.

Economy & Markets

MiniMax IPO Oversubscribed 1,209 Times

The Hong Kong initial public offering of Shanghai-based MiniMax, a maker of large language models, was 1,209 times oversubscribed on Tuesday as investor frenzy for AI-related stock sales continues. According to Futu Securities, the IPO will raise about US$535 million if priced at the top of the range. MiniMax is tapping into a recent string of highly successful new share sales by other mainland AI companies. Its shares will begin trading in Hong Kong on January 9.

China Robotics Years Away From 'EV Moment,' Financier Says

China's robotics may need at least five years before humanoid models reach a moment equivalent to when electric vehicles dazzled markets with low-cost, mass-produced models, Sean Xiang Yuqiu, founder and chief executive of Hong Kong private equity firm Hermitage Capital, told the South China Morning Post. The firm controls US$1.5 billion in assets. Xiang said the embodied intelligence sector, which has captured the attention of the public and investors, faces "technology bottlenecks" that will slow its rapid development. Citing investment hype, he also said the market for humanoid robots is overheated and in danger of becoming a bubble. There are more than 150 robot makers in mainland China, led by high-profile companies such as Unitree, Ubtech and Agibot.

Two China Tech Shares Suspended for Trading Irregularities

Shares of Shanghai-listed solar cell maker Grand Sunergy Tech and Shenzhen-listed Jiamei Packaging will be suspended for three days, effective today, due to "abnormal volatility" in recent trading sessions, the stock exchanges announced. Grand Sunergy shares soared more than 370 percent in the past two months despite the company's reporting a net loss of 152 million yuan (US$22 million) in the first three quarters of 2025. Shares of Jiamei Packaging surged 230 percent in the past 15 days despite a 47 percent drop in net profit in the first nine months of last year. The exchanges in Shanghai and Shenzhen said they will investigate the share movements for any suspicious behavior to safeguard interests of investors.

China Plans 20 Percent Expansion in High-Speed Rail

China plans to expand its high-speed railroad network, already the largest in the world, by 20 percent over the next five years to 60,000 kilometers, taking the total rail network to 180,000 kilometers, according to China State Railway Group. Fixed asset investment in the rail system rose 6 percent last year to 901.5 billion yuan (US$129 billion).

Corporate

ByteDance Plans Cautious AI Glasses Rollout

ByteDance plans to begin marketing its first-generation Doubao AI glasses with a modest delivery of about 100,000 units, according to supply chain sources cited by Chinese media service Blue Whale Technology. The initial delivery will be targeted at experienced Doubao users and not for open retail sales, the sources said. A second-generation version is already under development but has not yet entered mass production. No decision has been made on availability to the general public. Doubao AI glasses use Qualcomm's AR1 chip, rather than the widely rumored BES 2800 chip with an external image signal processor. Blue Whale reported earlier that the glasses, which must be used with the Doubao app, has been developed jointly with Longcheer Technology, a Chinese original design manufacturer. Share of Longcheer rose 2.5 percent on Tuesday.

Air China to Pare Stake in Cathay Pacific

Air China said it plans to sell a 1.6 percent stake in Hong Kong flag carrier Cathay Pacific for HK$1.3 billion (US$170 million). The sale will lower Air China's stake to about 27 percent. Cathay said the decision was "tactical" and Air China will remain a long-term investor. Swire Pacific remains Cathay's largest stakeholder.

Labubu Doll Creator Expands Foreign Supply Chain

Pop Mart, the Chinese creator of the Labubu doll sales frenzy, widened its supply chain with the addition of manufacturing sites in Indonesia, Mexico and Cambodia, citing surging global demand. Its furry toys and blind-box collectibles have to date been made in factories in China and Vietnam. Pop Mart is also aiming to expand its outlets in the US beyond the existing 60.

'Zootopia 2' Sets Box-Office Record in China

Disney said its "Zootopia 2" movie has overtaken "Avengers: Endgame" to become the highest-ever grossing Hollywood film in China, with box office receipts at 4.3 billion yuan (US$610 million) since its November release.

CATL, Nio Strengthen Pact on Longer-Life Car Batteries

Contemporary Amperex Technology (CATL), the world's largest maker of electric vehicle batteries, deepened its 2024 partnership with Chinese carmaker Nio to develop longer-life batteries that will save electric car owners on costs of battery replacement, the South China Morning Post reported. William Li, chief executive of Nio, said China's existing 40 million electric car owners face up to 3 trillion yuan (US$420 billion) in costs when the life cycle of current battery packs expires by 2032.

RayNeo Fundraising Backed by China Mobile, Unicom

Shenzhen-based RayNeo, a developer of augmented reality glasses, raised over 1 billion yuan (US$143 million) in a new financing round, with China Mobile. China Unicom and Citic Goldstone Investment participating.

Shenghua Plans US$1.2 Billion Expansion

Shenghua New Material, a Chinese supplier of lithium iron phosphate cathode materials, plans to invest 8.7 billion yuan (US$1.2 billion) to expand its production capacity with three new facilities in Inner Mongolia. Shenghua is a major supplier to Contemporary Amperex Technology (CATL), a world leader in batteries for electric cars.