Daily Buzz: 6 March 2026

China Sets 2026 Growth Target, Plans 'Large Scale' Spending

China set its 2026 growth target at between 4.5 percent and 5 percent, as the government seeks to tackle weak consumer spending, a housing market slump, global trade tensions and other economic headwinds. Last year, the nation's gross domestic product came in at 5 percent. Policymakers kept the budget deficit target for 2026 unchanged from last year at around 4 percent of GDP, with the deficit to rise 230 billion yuan (US$33.4 billion) this year to 5.9 trillion yuan. The government set a 2 percent target for consumer inflation. Urban unemployment at pegged at 5.5 percent, with plans to add 12 million additional jobs.

"Government spending this year will continue to be fairly large in scale," Chinese Premier Li Qiang said in unveiling the economic policy report, noting a priority on boosting consumer spending and raising living standards. China plans to issue 1.3 trillion yuan (US$188.5 billion) in ultra-long-term special treasury bonds this year, a volume unchanged from 2025. It also is allocating 250 billion yuan to support the consumer goods trade-in program and another 300 billion yuan for capital replenishment at large state-owned commercial banks. Defense spending will increase 7 percent.

The National People's Congress and its advisory body, the People's Political Consultative Conference, began a week of meetings on Wednesday to chart the nation's course this year and under the 15th Five-Year Plan (2026-30).

China Steps Up Middle East Diplomacy as War Expands

China will send its special envoy on Middle East affairs, Zhai Jun, to the region as part of efforts to help ease tensions, the foreign ministry said on Thursday. Ministry spokeswoman Mao Ning told a regular press briefing that Beijing is stepping up diplomatic engagement and believes that military force cannot resolve disputes. Despite calls from China and other nations to de-escalate the conflict, Israel said it is "moving to the next phase" of the war, which it will "further dismantle the regime and its military capabilities." Israel also escalated strikes on Hezbollah strongholds in southern Beirut after warning 500,000 residents in the densely populated area to flee for their lives.

US President Donald Trump said US-Israeli attacks are "totally demolishing" Iranian targets and military operations are "far ahead of schedule." He said the US will be involved in choosing the next leader of Iran. The Pentagon said the US has destroyed over 30 Iranian ships and missile attacks from Iran have dropped 90 percent. Several EU nations are sending warships to Cyprus after that bloc member came under Iranian drone attacks.

Washington closed its embassy in Kuwait, Qatar has begun evacuating residents living near the US Embassy in Doha, and the United Arab Emirates issued an emergency warning for its residents to take shelter. A UK security agency said a tanker off the coast of Kuwait was hit by a large explosion, causing an oil spill, and an Iranian missile struck an oil refinery in Bahrain. Beijing told the country's largest oil refiners to suspend exports of diesel and gasoline to prioritize domestic energy needs as tanker shipping from the region remains curtailed. Another country, Azerbaijan, got dragged into the conflict after it said Iranian drones struck the country – a claim Tehran denied. The UN estimates more than 1,000 people have been killed in the conflict. More than 11,000 commercial flights in the Middle East have been cancelled.

Russian LNG Tanker Sinks in Mediterranean, Moscow Blames Ukraine

A Russian liquefied natural gas tanker sank in the Mediterranean about 240 kilometers north of the Libyan coast after explosions and a fire. Russia accused Ukraine of targeting the Arctic Metagaz with naval drones. Libyan officials said cause of the fire was unclear. Moscow said the tanker was carrying 62,000 tons of natural gas and 30 Russian crew, who were all rescued from a lifeboat by Maltese military personnel.

Top Business

JD.com Swings to 4Q Loss on Food Delivery, Retail Operations

Beijing-based e-commerce giant JD.com, China's largest retailer by revenue, turned to a loss of 2.7 billion yuan (US$400 million) in the fourth quarter from a year earlier profit of 9.9 billion yuan, with the cost of its fast food-delivery service and a drop in retail earnings weighing down income from other segments. Marketing expenses surged 50 percent. The company reported a 1.5 percent rise in revenue to 352.3 billion yuan and an operating margin of 3.2 percent. JD has been in a fierce and costly battle with Alibaba and Meituan in the instant food-delivery market. The company doesn't break out figures for food delivery but lumps it into the "new businesses" segment. That segment showed a sharp loss of 14.8 billion yuan, widening from a 885 million yuan loss a year earlier. The company said its food delivery market share grew to 15 per cent at of the end of 2025, with the aim of controlling a third of the market by the end of 2026. Chief Executive Xu Ran told investors on a conference call that the company will reduce its investment in food delivery this year "depending on market competition" and will improve operational efficiency.

In its retail segment, JD was burdened by weaker consumer spending. Profit declined 2.5 percent on a 2 percent drop in revenue. Sales of electronics and home appliances fell 12 percent. The company continued to expand offline operations, with 15 stores on the mainland and a new JD Mall in the southeastern city of Xiamen. For the full year, the company reported a 52 percent drop in profit to 19.6 billion yuan on a 13 percent increase in revenue to 1.31 trillion yuan. JD acquired German electronics retailer Ceconomy for US$2.5 billion last year.

JD was founded in 1998 by Liu Qiangdong as an optical equipment store but has since expanded into retailing, AI technology, logistics, health care, insurance and property management. It has spun off three units for separate public listings. JD Logistics reported 2025 revenue rose 19 percent to 271 billion, with adjusted net profit of 7.7 billion yuan. JD Health had annual revenue of 73.4 billion yuan, up 26 percent, and net profit increased 29 percent to 5.4 billion yuan. JD Industrials delivered a standout performance, with net profit tripling to 2.3 billion yuan on a 17 percent rise in revenue to 24 billion yuan.

Bilibili 4Q Net Surges, Turning 2025 to Profit From Loss

Bilibili, a Chinese online video-sharing platform, reported fourth-quarter net profit surged almost sixfold from a year earlier to 513.9 million billion yuan (US$73.5 million) on a 27 jump in ad revenue and a 10 percent gain in daily users to 113 million. Revenue rose 8 percent to 8.32 billion yuan, with sales from mobile games up 14 percent. Net margin improved to 6.2 percent from 1.1 percent. For the full year, the Nasdaq-listed company turned to a profit of 1.2 billion yuan from a year-earlier loss of 1.4 billion. Revenue in 2025 rose 13 percent to 30.4 billion yuan, and net margin was 3.9 percent. Ad revenue in the year was up 23 percent and sales from mobile games gained 14 percent.

Economy & Markets

Asian Stocks Rise, Wall Street Slumps on War Concerns

Asian stock markets rebounded after three days of losses as investors took a brief respite from concerns about the war in the Middle East, even though countries in the eastern Pacific import much of their oil and natural gas through the now-closed Strait of Hormuz in the Gulf. South Korea's Kospi index surged 9.6 percent, recouping most of yesterday's 12 percent plunge. Daniel Yoo, global market strategist at Yuanta Securities, told CNBC the bounce was largely driven by a reversal of leveraged selling, not fundamentals. The benchmark Shanghai Composite Index ended 0.64 percent higher, and Hong Kong's Hang Seng added 0.28 percent. The Nikkei 225 in Tokyo rose 1.9 percent.

Wall Street, however, slumped again as concerns about the economic impact of the widening war in the Middle East and spiking oil prices returned to the fore. The S&P 500 index lost 0.6 percent. In Europe, the Stoxx600 index fell 1.3 percent. Benchmark Brent crude oil was up 3 percent at US$83.88 a barrel in late New York trading.

China-Related Air Freight Shippers Face Higher Costs

Air freight costs for China-reliant shippers may rise by up to 30 per cent due to the war in the Middle East, the South China Morning Post reported, citing estimates by the Hong Kong Association of Freight Forwarding and Logistics. Most of the group's 303 corporate members operate in Chinese mainland. Shippers moving cargo between China and Europe are facing longer flight times, increased congestion and higher fuel consumption, the group said, citing the closure of airports and airspace in the Middle East.

Separately, Air China said it is resuming some commercial passenger flights to the Middle East, with the first flight departing Beijing for Riyadh on Thursday. It's the first service by a Chinese carrier to the Middle East since operations were suspended by the war there.

Corporate

Nvidia Shifts TMSC Production to New Rubin AI System

Nvidia has halted production of advanced H200 AI chips intended for ‌a Chinese market and reallocated its chip contract with Taiwan Semiconductor Manufacturing (TSMC) to focus on production for its next-generation Vera Rubin AI system, the Financial Times reported. Nvidia said last week that it had received licenses from the US government to ship "small amounts" of ‌H200 ⁠chips to customers in China, but China hasn't shown enthusiasm for the chips amid its drive to develop self-reliance in semiconductors.

Google DeepMind Offers Jobs to Alibaba Qwen Team

A senior executive at Google DeepMind publicly invited members of Alibaba's Qwen AI team to defect and join Google after a key researcher announced his departure. Omar Sanseviero, an official at Google DeepMind, posted on an invitation to Qwen developers on the X platform after Alibaba confirmed that Lin Junyang, the technical leader of the Qwen large language model project, was leaving. He is the third high-ranking official at Qwen to leave this year.

BYD Unveils Fast-Charging Battery

BYD said it is officially ending the era of slow electric-vehicle charging, unveiling its second-generation Blade Battery, which boasts record-breaking charging speeds and more than 1,000 kilometers of driving range. The "flash charging" system can charge from 10 percent to 70 percent in just five minutes and can operate in temperatures as low as minus-30 degrees Celsius.

Tech Titans Pledge to Finance Data Center Power Costs

Google, Microsoft, Meta, Amazon and other US titans in AI development signed a pledge at the White House to bear the cost of new electricity generation needed to power their data centers. The issue has come to the fore ahead of mid-term elections this year, with politicians worried about a public backlash if taxpayers believe they will have to foot the bill. US President Donald Trump hailed the agreement as a "historic win for countless American families." The International Energy Agency estimates that global electricity supply to meet data center demand will more than double by 2030, with the US and China the biggest data center markets. The US has been slower than China in building additional power capacity, resulting in higher electricity rates.