Daily Buzz: 9 December 2025

China's Politburo Signals Economic Stimulus for 2026

China's top leadership, meeting to discuss the 2026 path forward for the economy, signaled that stimulating domestic demand will continue to be a top priority, along with cultivating development of advanced science and technology. The Politburo of the Communist Party meeting on Monday traditionally sets the tone for the annual Central Economic Work Conference, scheduled next week, where growth targets, the budget and policy priorities for the next year are refined. "Progress while maintaining stability," is the prescription for growth, according to a readout from Xinhua news agency. China's policy deliberations come during a time of upheaval in the global trading environment, largely roiled by a US president bent on upending the traditional global trading system. The readout described the international economy and trading atmosphere as "a struggle." The Politburo meeting also signaled China's intention to open its markets wider to foreign investment and to keep its monetary policy "moderately loose". China's huge domestic market has been a bulwark in powering the economy amid headwinds from abroad. US investment bank Goldman Sachs is forecasting that Beijing will keep the 2026 growth target unchanged from 2025 at about 5 percent.

Thai-Cambodia Fighting Flares, Trump Ceasefires Falter

Thailand launched air strikes against Cambodia along their disputed border on Monday, breaking a truce that US President Donald Trump largely took credit for brokering. Each side accused the other of provocation. At least one Thai soldier was reported killed and several wounded in skirmishes along the 817-kilometer border. The long-running dispute led to a five-day war in July related to territorial boundaries mapped in 1907 by France, when it ruled Cambodia. The new attacks underscore the wobbly nature of Trump-brokered ceasefires. His deal between the Democratic Republic of Congo and neighboring Rwanda, signed last week in a ceremony he presided over, and his still-fragile Gaza ceasefire have both been punctured by periodic outbreaks of violence. Trump last year lobbied for the Nobel Peace Prize for his peacemaking successes.

Trump Takes a Swipe at Zelensky at Critical Juncture in Peace Plan

US President Donald Trump took one of his periodic slaps at Ukraine President Volodymyr Zelensky, saying the Ukrainian people "love" the latest draft peace proposal but Zelensky isn't ready to accept it -- a dubious reading of Ukrainian public sentiment. He also accused the Ukrainian president of not having even read the latest draft. His criticism came as Zelensky met with European leaders in what was described as a crunch time in the peace process. UK Prime Minister Keir Starmer, French President Emmanuel Macron and German Chancellor Friedrich Merz agreed that more work needs to be done to obtain security guarantees for Ukraine, which Moscow opposes. The US is putting pressure on Kiev to agree to cede territory to Russia and wrap up a swift peace deal. European clout in the peace process has been marginal. Europe has been sidelined from the peace process by the US, and the EU bloc can't even agree within its ranks about releasing frozen Russian funds for Ukrainian reconstruction. Zelensky said Ukraine will present a revised peace plan to the US on Tuesday.

Japan Hit by Major Earthquake, No Serious Impact Reported

A 7.5-magnitude earthquake struck northeastern Japan late Monday, prompting orders for about 90,000 residents to evacuate and resulting in tsunami warnings that were later downgraded. The epicenter of the quake was 80 kilometers off the coast of Aomori prefecture at a depth of 54 kilometers, according to the Japan Meteorological Agency. Several people were reportedly injured and some buildings incurred damage, but no problems were reported at nuclear power plants.

Top Business

US to Allow Nvidia to Sell H200 Chips to China

The US will allow Nvidia to sell its H200 chips to China, President Donald Trump announced, sending Nvidia shares higher in New York trading. The president said US chipmakers have agreed to pay 25 percent of sales proceeds to the US Treasury. However, export of Nvidia's more advanced Blackwell chips will remain banned. Nvidia Chief Executive Jensen Huang met with US President Donald Trump last week to discuss chip sales to China, once one of the company's largest markets. The H200 chip, unveiled two years ago, has more high-bandwidth memory than its predecessor, allowing more rapid processing of data. Technology companies in China need more powerful chips to build AI supercomputers, though domestic semiconductor makers are rapidly gaining the expertise to manufacture them. Nvidia shares rose 1.7 percent.

Low-Cost Home Resales Buoy an Ailing Property Sector

Lower-cost homes helped revive resale markets in Beijing, Shanghai, Guangzhou and other large mainland urban areas, Yicai Global reported. The figures provide a ray of hope for the residential property sector, which has been in a slump for four years after developer defaults. In Shanghai, 22,940 homes were resold in November, up 24 percent from October and the largest volume since May. About 60 percent of sales were priced at 3 million yuan (US$424,380) or lower, according to the Shanghai research arm of Lianjia, the country's largest real estate agency. In Beijing, existing home sales jumped 20 percent and resale apartment prices fell 1.4 percent, according to Fang.com, a property listings platform. Similar patterns were reported in the cities of Guangzhou, Shenzhen and Hangzhou.

Wanda Commercial Arm Seeks Debt Extension

Dalian-based property developer Wanda Group said its commercial real estate arm is seeking a two-year extension on a US$400 million bond, as China's property slump continues weigh on market liquidity, Bloomberg News reported. Wanda Commercial Management Group Co. said it is seeking creditor approval to extend the maturity date of its 11 percent dollar debt to February 2028. The company proposed redeeming the bonds in installments while keeping the interest rate steady. Last week, developer China Vanke rattled markets when it said it will seek a one-year extension on repayment of a 2 billion yuan (US$280 million) onshore bond due on December 15.

Warner Bros Takeover a Wall Street Blockbuster

The battle to buy Warner Bros Discovery, which includes streaming services, HBO and DC Comics, is shaping up like the Hollywood script for a Wall Street blockbuster. Just days after an offer from Netflix looked set to seal the takeover with a US$72 billion equity offer, Paramount Skydance jumped into the fray with a hostile, all-cash offer of US$108.4 billion. President Donald Trump earlier said he is taking a personal interest in the takeover, suggesting there could be anti-competition concerns. Financing for the Paramount bid includes Trump's son-in-law Jared Kushner's Affinity investment firm and Saudi and Qatari sovereign wealth funds.

Economy & Markets

China Stock Rally Attracts Global Investors

Global investors are increasingly betting that China's stock market rally will extend into 2026, after stock trading this year surged to US$2.4 trillion, outpacing major global benchmarks, Bloomberg News reported. The MSCI China Index has risen about 30 percent in 2025, beating the S&P 500 by the widest margin since 2017. Amundi, BNP Paribas Asset Management, Fidelity International and Man Group all said they expect further gains, citing China's improving technology competitiveness, particularly in artificial intelligence, chips and robotics. Foreign funds that focus on long-haul returns bought about US$10 billion in mainland and Hong Kong shares through November, reversing a US$17 billion outflow last year, according to Morgan Stanley. Improving domestic company earnings, fading deflation pressures and rising optimism around tech leaders such as Cambricon Technologies and Alibaba could help broaden the rally beyond big AI names.

China Exports Beat Forecasts, Trade Surplus Widens

China's exports in November exceeded market forecasts with a 5.9 percent increase from a year earlier, but the gains came from trade outside of the US market despite a deal between Washington and Beijing struck at the end of October . Exports to the US, once China's biggest market, plunged 29 percent, compensated by higher exports to Southeast Asia, the EU, Latin America and Africa.

For the first 11 months of the year, exports grew 5.4 percent, with Southeast Asia the largest trading partner, accounting for almost 17 percent of foreign trade. Chinese imports in November rose 1.9 percent, shy of forecasts. For the first 11 months, they fell 0.6 percent, taking China's trade surplus to US$1.1 trillion.

French President Emmanuel Macron said he told Chinese officials on his state visit to Beijing last week that China must take action to reduce its ever-growing trade surplus with the EU or risk the imposition of tariffs on its goods, Reuters reported, citing the French daily Les Echos. China's exports to the EU in November surged 15 percent, adding to a trade surplus that has expanded nearly 60 percent since 2019.

IMF Opens Shanghai Hub Operations

The International Monetary Fund began operations at its new IMF Shanghai Center. In a statement, the multinational institution said the center "will play an important role in enhancing the fund's engagement with the dynamic Asia-Pacific region," with the hub to promoting engagement with emerging markets and middle-income nations.

Corporate

Eli Lilly Diabetes Drug Added to China Reimbursement List

Eli Lilly's Mounjaro drug to treat type 2 diabetes was added to China's health insurance program, according to the National Healthcare Security Administration website. Inclusion on the national reimbursement list makes drugs more widely available to the public, but price negotiations in government bulk-buying often lower prices paid to pharma companies. Mounjaro is an injectable therapy that can also be used to treat obesity. It's similar to Ozempic, the popular drug from Danish drugmaker Novo Nordisk, which was added to the list in 2021.

Walmart Says China Sales Rose 22 Percent

US retail giant Walmart said sales in China on the back of expansion of its Sam's Club chain rose 22 percent to US$6 billion in the third quarter from a year earlier, outperforming the company's global average. Online sales in China jumped 32 percent. Sam's Club is a membership-only, warehouse-style chain.

'Zootopia 2' Spawns Merchandise Spree

Disney's success in China with the movie "Zootopia 2" has created a surge in demand for merchandise related to the film. The movie has already taken in more than 3 billion yuan (US$431.9 million) at the Chinese box office. The most popular licensed items are the Gary De'Snake plush toy and the carrot recorder pen, an official at the Shanghai Disney Resort store told Yicai Global. The benefits extend beyond licensed products. Luckin Coffee, Chow Tai Food Jewelry and Miniso have also capitalized on the craze with specialized products.

Tesla Passes Another Production Milestone

Electric carmaker Tesla said its Shanghai mega-factory completed its four millionth vehicle – a Starlight Gold Model Y L. It took the plant less than 14 months to increase production to 4 million from 3 million. The factory has accounted for nearly half of Tesla's global deliveries in the past six years.

Apple Offers Year-End Promotions

Apple's shop on the Tmall e-commerce platform in China has initiated a year-end promotion campaign, with 300 yuan (US$42) coupons offered toward purchases of the iPhone 17 Pro and the Pro Max. Apple's 17 series phones have been a big hit in China, reversing previously sluggish sales.