Weekend Buzz: 17-18 January 2026

State Grid Plans Big Power Upgrade to Meet AI Demand

China's State Grid, the world's largest utility, unveiled plans to invest 4 trillion yuan (US$574 billion) to upgrade the nation's power network over the next five years, amid surging demand from artificial intelligence (AI) data centers that consume vast amounts of electricity. That's a 40 percent increase over the last five years. State Grid's blueprint for next-generation power systems includes plans to add 200 million kilowatts of renewable energy capacity a year, increasing the proportion of non-fossil fuels to 15 percent of consumption. Its big increase in investment is expected to be largely directed toward westerns regions of China where energy supplies are plentiful but grid transmission infrastructure lags.

Expansion of electricity production is considered a vital factor in the China-US race for supremacy in AI development. The International Energy Agency estimated that in the next five years, China's data centers will use 170 percent more electricity. China now leads the world with a third of global electricity generation, thanks to years of forward government planning, while the US may be facing power shortages, forcing some big AI companies there to invest in power generation. The Chinese government is encouraging higher electricity production. China Southern Power Grid announced last week that it will dedicate 24 billion yuan to grid infrastructure in the first quarter of this year.

China Hails New Era of Relations With Canada

Chinese President Xi Jinping hailed a "turnaround" in ties between China and Canada after meeting with visiting Canadian Prime Minister Mark Carney in Beijing. Both nations signed an energy framework for closer collaboration in uranium and oil and gas development, and Carney announced Canada will ease its 100 percent tariff on import of electric vehicles to allow entry of 49,000 Chinese electric cars at a duty rate of 6.1 percent. The first visit to China by a Canadian prime minister since 2017 was aimed at repairing bilateral relations that soured under the administration of Carney's predecessor Justin Trudeau, when Canada detained Huawei chief financial officer Meng Wanzhou in 2018 on fraud charges, two Canadian citizens were detained in China and a tit-for-tat tariff war broke out. The new rapprochement with China marks a shift from Canada's longtime close trade relations with the US, which have deteriorated under the Trump administration.

Trump Threatens Tariffs on Nations Opposing Greenland Takeover

US President Donald Trump, who frequently wields tariffs as a political weapon, said he may impose "stiff" tariffs on nations who oppose a US takeover of Greenland. His threat comes just days after he imposed a new 25 percent tariff on countries that trade with Iran. Trump continues to warn that the US will take over Greenland, an island of mineral wealth and Arctic strategic importance, through a purchase or by force, if necessary. Greenland is an autonomous territory under Danish sovereignty for centuries. Several European countries that oppose the takeover, including France and Germany, have sent small military contingents to Greenland in a show of solidarity. A bipartisan US congressional delegation currently visiting Greenland also has expressed misgivings about Trump's plan, which is vehemently opposed by both Greenland and Denmark.

Former South Korean Leader Handed Prison Term

A South Korean court, in the first ruling related to criminal charges against former South Korean president Yoon Suk Yeol, sentenced him to five years in prison on charges that he obstructed efforts to arrest him on a warrant after his ill-fated attempt to impose martial law in December 2024. Court rulings on other charges – including leading an insurrection, which carries a maximum penalty of death – are still pending.

Top Business

Europe Aviation Regulator Tests China's C-919 Jetliner

The European Union Aviation Safety Agency said it has carried out test flights of China's domestically made C-919 jetliner in Shanghai as part of the process to certify that its carriers can fly the plane. The narrow-body C-919, manufactured by Commercial Aircraft Corporation of China, went into commercial passenger service in China in 2023. The aircraft maker, which has already sold some 1,000 C-919s to domestic Chinese carriers, will be able to expand its footprint overseas once the plane is certified, though it hasn't been certified in the US.

China AI Nipping at US Heels, Google Official Says

China's artificial intelligence models may be just "a matter of months" behind the US, Demis Hassabis, head of Google's DeepMind, told CNBC. His assessment contrasts with views that China lags years behind. "The question is, can they innovate something new beyond the frontier?" Hassabis said. "I think they've shown they can catch up ... and be very close to the frontier ... But can they actually innovate something new, like a new transformer ... that gets beyond the frontier?"

Hassabis heads up one of the world's leading AI labs, and DeepMind is a key driver behind Google's Gemini assistant. This month marks a year since Chinese AI lab DeepSeek unveiled a large language model built on less advanced chips and at a much cheaper cost that US models.

China Tightens Electric Car Battery Recycling

China has released interim rules to strengthen the recycling and reuse of spent batteries from electric vehicles, effective April 1. New measures announced by the Ministry of Industry and Information Technology aim to prevent batteries from entering unregulated markets, establish a nationwide battery tracking system and close regulatory loopholes in the recycling chain. Electric car sales in China ended last year with more than a 50 percent shares of the vehicle market.

US Companies Plan Increased Investment in China

Some 57 percent of US companies doing business in China said they plan to increase investment there, with 18 percent anticipating an investment growth exceeding 20 percent, according to a survey released by the American Chamber of Commerce in China on Friday. Just over half of US businesses ranked the mainland among their top three global investment destinations, with 71 percent saying they have no plans to relocate operations overseas.

Economy & Markets

China to Rein In 'Flash Trading' in Securities

Major stock exchanges in Shanghai, Shenzhen and Beijing released new rules related to high-frequency trading that would limit so-called "flash trading" to 300 orders per second or 20,000 orders a day. The measures, which come into effect on July 7, are aimed at curbing market volatility and "spoofing, the practice of frequent order cancellations to mislead investors. The rules will introduce differentiated fee structures that significantly increase costs for high-volume, rapid-fire traders. Flash trading uses complex algorithms that execute the purchase of sale of equities in split seconds. Industry analysts said the new measures may increase operational costs for quant funds that use data-driven, mathematical models but they will foster market stability and greater fairness for retail investors.

Yuan-Led Cross-Border Digital Platform Transactions Surge

Transactions on a new China-led digital currency platform have surged to over US$55 billion, Reuters reported, citing a report from the US-based Atlantic Council. The prototype mBridge platform, currently in trial operation by central banks in mainland China, Hong Kong, Thailand, the United Arab Emirates and Saudi Arabia, had now processed more than 4,000 cross-border transactions. The value of those payments is roughly 2,500 times higher than in the early days of the project in 2022, with the digital yuan estimated to now account for about 95 percent of volume.

"These developments point to a gradual expansion of the yuan's internationalization through digital infrastructure," the Atlantic Council's ⁠Alisha Chhangani was quoted as saying.

Shanghai Posts 11 Percent Surge in 2025 Exports

Shanghai exports in 2025 surged 11 percent from a year earlier to 2 trillion yuan (US$350 billion), while imports climbed 1.8 percent to 2.5 trillion yuan, China's major commercial hub announced on Friday.

China Continues to Pare US Treasury Holdings

China continues to step back as a creditor to the US even as foreign holdings of US Treasuries hit record highs in November. Foreign holdings of US government debt used to finance deficit spending rose to US$9.36 trillion. Japan remained the biggest foreign holder of the bonds after 11 straight months of purchases, followed by the UK. China is the third-largest holder but its stash of US bonds has been steadily dropping. Those assets were trimmed by US$6.1 billion in November from a month earlier to a 17-year low of US$682.6 billion. China's central bank, at the same time, is increasing the nation's reserves of gold, which rose 30,000 ounces in December to 74.2 million ounces, the 14th straight month of increases.

Indian Exports to China Surge

Indian exports to China in December surged as the South Asian country shifted its market focus away from US to avoid steep tariffs on its goods. Exports to China soared 67 percent from a year earlier, while shipments to the US fell 1.8 percent. In the last nine months, Indian exports to the mainland rose 37 percent and were up 25 percent to Hong Kong. Trade and diplomatic relations between China and India thawed last year after meetings between the leaders of the world's two most populous nations. Bilateral trade between April and December in 2025 year totaled US$110.2 billion.

Deep Dive

Foreign Luxury Carmakers Slash Prices in China As Sales Traction Slips

Gains by domestic rivals and changes in consumer preference drag down market share for once invincible brands like BMW, Maserati. Ferrari and Porsche.

Corporate

Miner CMOC to Increase Copper Production

China's CMOC, the world's largest miner of copper and cobalt, told the Hong Kong stock exchange that its output of copper this year will increase by as much as 11 percent to 820,000 tons as global prices for the industrial metal surge to record highs on escalating demand. The metal is used in advanced electronics in addition to traditional uses in construction. Henan-based CMOC said the higher prices helped boost 2025 net income by about half to 21 billion yuan (US$3 billion), Bloomberg News reported, citing preliminary company results. The miner kept its guidance on cobalt production this year between 100,000 and 120,000 tons after record output of 117,549 tons in 2025 from operations in the Democratic Republic of Congo.

China Northern Rare Earth Flags Profit Surge

China Northern Rare Earth, a major producer of minerals essential in advanced manufacturing, has forecast a sharp rise in full-year 2025 earnings, citing stronger sales, inventory reduction and capacity expansion across its industrial chain. The company, in a preliminary earnings announcement, said it expects net profit to increase up to 135 percent to as high as 2.35 billion yuan (US$330 million) from a year earlier. The company, based in Inner Mongolia, said 2025 was the first time in recent years when demand for lanthanum and cerium products exceeded output. The company also highlighted progress in mergers, joint ventures and capacity expansion across rare earth metals, magnetic alloys, magnets and recycling businesses.

Porsche's Biggest Sales Slump in 16 Years Tied to China

Car maker Porsche reported its biggest annual sales decline in 16 years for last year, joining fellow German automakers Audi and Mercedes-Benz in suffering from weaker sales in China amid fierce domestic competition in the luxury car market, Reuters reported. Porsche's global deliveries last year fell 10 percent from 2024, with a 26 percent sales slump in the mainland market.

Visa Links China Cardholders to Apple Pay

Visa has teamed up with Apple to enable credit-card holders in China to add their Visa cards to Apple Pay and make payments overseas, including with online and offline merchants that accept the cards. Mastercard said it will soon follow suit. Visa the system initially involves eight Chinese banks that issue the cards, including Industrial and Commercial Bank of China, Bank of China, Agricultural Bank of China.

Apple Expands Trade-In Program in China

Apple has adjusted trade-in values for iPhones, iPads and Macs in China, while expanding the program to include selected Android devices from Huawei, Xiaomi, Oppo and Vivo, according to information on its official website. Under the updated trade-in program, customers in China can receive from 1,600 yuan (US$229) to 14,000 yuan for different models.