Weekend Buzz: 27-28 December 2025

China Sanctions US Military Firms

China said on Friday it will impose sanction on US companies involved in military arms sales to Taiwan. The measures target 20 companies, including Northrop Grumman Systems, L3Harris Maritime Services, some Boeing operations, and several drone, defense technology and maritime services firms. Their assets in China will be frozen, and Chinese companies and individuals will be prohibited from doing business with them. The sanctions also cover 10 senior executives linked to the companies, including the founder of defense company Anduril Industries. The sanctions follow Washington's announcement last week of a record US$11 billion arms package for Taiwan. "The Taiwan issue is the core of China's core interests, and the first red line that cannot be crossed in China-US relations," a Chinese foreign ministry spokesperson said in a statement on Friday.

Zelensky, Trump to Meet to Discuss Peace Plan

Ukraine President Volodymyr Zelensky said he will meet US President Donald Trump in Florida on Sunday to discuss the latest proposals in a peace plan to end the nearly four-year war with Russia. Zelensky said a peace plan is 90 percent complete. The US has proposed creation of a demilitarized zone in areas of eastern Ukraine that Kiev still holds, but reports of the proposal suggest that Russia would be allowed to keep territory it already occupies in the east. In that event, Zelensky reportedly has proposed putting the peace plan to a national referendum if Russia agrees to a 60-day ceasefire to allow Ukraine to prepare for the election. Zelensky also told reporters that control of the Zaporizhzhia nuclear plant in Ukraine – Europe's largest nuclear plant, now occupied by Russian forces – will part of Sunday talks. In Moscow, Russian President Vladimir Putin told a meeting with leading businessmen that he might be open to swapping some territory controlled by Russian forces in Ukraine, but he stuck to demands for Ukraine to surrender the whole of the eastern Donbas region, where Russia controls about 90 percent of territory.

Vanke Gets Second Reprieve From Debt Default

Debt-riddled property developer China Vanke won a second reprieve from default after creditors extended a grace period for repayment on a maturing 3.7 billion yuan (US$528 million) bond but rejected the company's request for a one-year delay, Reuters reported, citing a filing to the National Association of Financial Market Institutional Investors. That followed a similar decision by holders of a 2 billion yuan bond earlier in the week. Vanke, once China's largest property developer, has been grappling with liabilities, now totaling US$50 billion, since a liquidity crisis hit the mainland real estate sector in 2021. In the latest decision, bondholders extended repayment of a bond due to mature on December 18 for 30 trading days. The company's problems are far from over. Vanke has 9.4 billion yuan of bonds maturing through May. A default could trigger one of China's biggest ever bankruptcy proceedings. Property, which once contributed to a quarter of China's economy, has yet to recover from a years-long slump.

Former Malaysian Leader Draws Longer Jail Time

Former Malaysian Prime Minister Najib Razak, still an influential figure in the nation's politics, was jailed on Friday for a further 15 years and fined US$2.8 billion for his role in the nation's biggest-ever financial scandal. He is accused of abusing his power and money laundering associated with the US$4.5 billion embezzlement of funds from the 1Malaysia Development Berhad government-controlled fund that he co-founded in 2009. Najib was first imprisoned in 2022 for a term that was to end in 2028. Investigations into what has been called one of the world's worst financial scandals spanned the world, including regulators in the US, UK, Singapore, Switzerland, China's Hong Kong, Indonesia and Saudia Arabia.

Top Business

Listing Rules Loosened for Chinese Rocket Developers

The Shanghai Stock Exchange said Chinese companies developing reusable commercial ⁠rockets will get a fast track to initial public offerings on the tech-heavy STAR market, a move seen to benefit Chinese private rocket developer LandSpace. China is trying to narrow a gap with the Elon Musk's SpaceX, which currently holds a near monopoly on reusable-rocket technology used to launch satellite clusters. The new rules loosen requirements for profit and minimum revenue thresholds. LandSpace recently became the first domestic company to carry out a full reusable rocket test with the launch of its new Zhuque-3 model. While the test failed to recover the rocket booster, the company expressed confidence in the success of a subsequent test scheduled in 2026. The company, in need of funds to continue development, has expressed interest in an initial public offering.

UBTech Plans to Take Control of Fenglong

Hong Kong-listed UBTech Robotics has agreed to take control of Shenzhen-listed mechanical components maker Fenglong Electric for 1.7 billion yuan (US$237 million) in cash, giving it a foothold in China's Class A-share market. UBTech, the Shenzhen-based maker of humanoid robots, said the deal would comprise two stages, the South China Morning Post reported, citing a filing to the Hong Kong stock exchange. The first stage will see UBTech acquire a 30 percent stake in Shenzhen-listed Fenglong from existing shareholders, followed by a voluntary partial offer to buy a further 13 percent. Fenglong, based in Zhejiang Province, manufactures engines for garden tools, automotive components and machine pressure-control systems. UBTech made global headlines in July when it launched the Walker S2 model, the world's first humanoid robot capable of replacing its own batteries.

CATL Forms Auto-Chip Venture with Guoxin

Contemporary Amperex Technology (CATL), the world's largest maker of electric vehicle batteries, has linked up with chip developer Guoxin Microelectronics to form a new automotive semiconductor company. CATL-owned Wending Investment, Guoxin Micro unit Tongxin Micro and five affiliates have agreed to establish Tongxin Micro Technology, the South China Morning Post reported. Tongxin will hold a controlling 51 percent stake in the venture, while Wending will have a 5 percent share. CATL has been expanding its business scope with investments in AI developer Horizon Robotics, Shanghai-based start-up SmartLogic and Hangzhou power semiconductor firm Silicon Magic. Guoxin was founded by a microelectronics team from Tsinghua University in 2001.

Smaller food portions, please!

The advent of obesity drugs in pill form, rather than self-injections, is expected to reshape the strategies of packaged food makers and fast-food restaurants that have tailored products to big appetites, Reuters reported. The US earlier this week approved Novo Nordisk's new Wegovy GLP-1 pill for marketing, raising speculation that more people will try to lose weight by popping pills. Eli Lilly is close behind in seeking approval to market its own obesity pill. The food industry is beginning to shift its focus to smaller-portion packaging and away from salty snacks, sugary soft drinks and bakery goods as the weight-control trend accelerates.

Economy & Markets

China Launches Venture Capital Fund

China initiated a national venture capital fund that hopes mobilize 1 trillion yuan (US$143 billion) of investment steered toward advanced technology businesses. The fund, jointly established by the National Development and Reform Commission and Ministry of Finance, has initial central government funding of 100 billion yuan and is designed to attract additional investment through regional funds set up in the Beijing-Tianjin region, the Yangtze River Delta region, and the Guangdong-Hong Kong-Macao Greater Bay Area The fund's investment focus spans integrated circuits, quantum technology, biomedicine, brain-computer interfaces and aerospace. It will prioritize company companies at the seed, startup and mid-stages of technology breakthroughs, acting as an "angel investor" to encourage innovation.

Japan's Cabinet Approves Record Budget

Japan's cabinet approved a record 122.3 trillion yen (US$785 billion) budget for the fiscal year beginning next April 1, with Prime Minister Sanae Takaichi striking a balance between her expansive economic policies and limited room for new bond issues to finance spending. The budget, which is 6 percent higher than the current fiscal year, goes to parliament for approval early in 2016. Bond issuance will increase to 28.6 trillion yen from the current year's 29.6 trillion yen, Reuters reported.

Precious Metals Surge to New Highs

Silver breached US$77 for the first time on Friday, while gold and platinum also hit record highs. The recent gains in precious metals reflect weakness in the US dollar, concerns about geopolitical tensions and expectations of further US rate cuts. Silver in New York trading surged 11 percent to trade at US$79.68, gold rose 1.3 percent to US$4,562, and platinum soared 12 percent to US$2,513. The US dollar index declined this week.

Chinese Airlines Poised for Record Year

Chinese airlines, which have suffered from sluggish profits in recent years, are expected to log a record number of 2025 passengers amid cheaper ticket prices. Chinese carriers are on track to transport 770 million passengers this year, an increase of 5.4 percent from 2024 and a jump of 16 percent from pre-pandemic 2019 levels, according to flight data service platform Feekr. The average economy class ticket this year fell 2.9 percent from a year earlier.

Corporate

Xiaomi's New 17 Ultra Targets High-End Market

Smartphone and electric carmaker Xiaomi unveiled new17 Ultra smartphones, with the 12GB+512GB model starting at 6,999 yuan (US$1,000) and an upgraded Leica Edition selling from 7,499 yuan. The new phones are scheduled to begin sales today. Xiaomi President Lu Weibing said the company is positioning itself as a high-end brand, with the 17 series designed to directly compete with Apple. Xiaomi is pushing into the premium range of phones while simultaneously moving its automotive business into the luxury end of the market. Lu said the company has spent up to 33 billion yuan this year on research.

Innovent Receives Green Light on Cancer Drug

Suzhou-based Innovent Biologics has received approval from China drug regulators for its Daboxin drug for treatment of colon cancer. It is the world's first approved dual-immunotherapy regimen for pre-surgery use in stages 2 and 3 colon cancer. The therapy improves pathological response rates, potentially allowing most patients to bypass post-operative chemotherapy.

Silicon Wafer Giants Hike Prices to Counter Losses

Four major Chinese silicon wafer producers, including Longi Green Energy and TCL Zhonghuan, announced 12 percent price increases this week amid surging AI-related demand for chips. Following the announcements, Longi shares rose 4 percent and TCL was up 3 percent on Friday in mainland stock trading. Industry insiders said the industry was facing losses related to rising production costs and declining supplies.

Toyota Sales Slip as China Market Weakens

Toyota Motor Corp reported a decline in global vehicle sales and production in November, in part reflecting a weakening China market. The Japanese automaker sold 900,011 vehicles worldwide in the month, down 2 percent from a year earlier and the first year-on-year drop in 11 months. China was a key drag on performance. Toyota sold 154,600 vehicles in the Chinese market during the month, a 12 percent decline, reflecting intensifying competition and cautious consumer spending. The carmaker said it manufactured 821,723 vehicles worldwide in November, down 5.5 percent.

Mercedes-Benz Finalizes Acquisition of Qianli Stake

German luxury carmaker Mercedes-Benz said it has completed the acquisition of a 3 percent stake, valued at 1.3 billion yuan (US$191 million), in Qianli Technology, a Chongqing company that expanded into driver-assisted technologies from motorcycle manufacture. Mercedes-Benz Digital Technology, the company's largest digital research and development center outside of Germany, bought the stake from Shanghai-listed Lifan Holdings, which makes smart cockpits. The deal makes Mercedes-Benz the fifth largest shareholder in Qianli, Yicai Global reported. The German company, like many traditional foreign auto makers, is trying to lift its presence in China, a market that has come to be dominated by domestic vehicle manufacturers.

Veichi Plans Thailand Robot Venture

Chinese industrial automation firm Veichi Electric said it plans to establish a joint venture in Thailand with Zhejiang Rongtai to expand its presence in the intelligent robotics market. Veichi said in a market filing that each partner will hold 50 percent stakes in a venture that will focus on research, production and sale of mechatronic components, intelligent transmission systems and related products for robotics applications.