Weekend Buzz: 21-21 March 2026

War Enters Fourth Week Amid Reports of US Ground Forces

The war in the Middle East entered its fourth week with a flurry of US media reports that the US is planning to deploy ground troops in the region. The Wall Street Journal, CBS, Axios and CNN, citing unidentified Trump administration officials, said Washington is sending thousands of Marines, possibly to secure Kharg Island, Iran's major oil-exporting base, and open oil tanker passage through the Strait of Hormuz. Reuters said the amphibious assault ship USS Boxer is being sent to the region, along with a contingent of 2,500 marines. The strait handles about a fifth of the world's oil.

US President Donald Trump said mixed signals on Friday, saying that he doesn't want a ceasefire but is considering "winding down" the war and leaving the traffic bottleneck in Hormuz to countries that depend on Gulf oil and natural gas, which doesn't include the US.

The UK agreed to let the US use its military bases to strike Iranian missile sites targeting ships in the strait. Downing Street that the bases will be used for "defensive operations" only and Britain won't be directly involved in strikes. Trump, who has frequently berated Prime Minister Keir Starmer publicly, said he should have acted faster. Trump also launched a new barb at fellow NATO members, calling them "cowards" for their unwillingness to get involved in securing the Hormuz waterway.

Iran's new Supreme Leader Mojtaba Khamenei, who has not been seen since he was named to replace his slain father, issued a statement read out on state television to mark the Persian New Year. He denied that attacks on Oman and Turkey were perpetrated by Iran, calling them "false flag tactics" by the US and Israel, and called for unity within Iran. The US and Israel claim Khamenei is in hiding because he suffered injuries in air strikes.

Iranian missiles targeted Jerusalem and drones hit an oil facility in Kuwait. Israel continued attacks on Tehran. A US F-35 fighter jet made an emergency landing at a US air base in the Middle East after it was struck by what was believed to be Iranian fire. Iran's foreign minister Abbas Araghchi said US claims that it is winning the war show that the Trump administration is "detached from reality."

Conservative Joe Kent, the US national counterterrorism chief who resigned this week, deepened a divide opening in Trump's MAGA base by telling political podcaster Megyn Kelly in an interview that Israeli leaders and US hawks created a misinformation "bubble" around Trump that convinced him to go to war without justification.

Global Oil Prices Rise, Stock Markets Drop

Oil prices rose and stock markets across Asia, Europe and the US fell on Friday amid concerns about energy shortages and inflation. International Energy Agency chief Fatih Birol warned that it could take up to six months to restore oil and gas flows from the Gulf, saying the world is facing a severe energy crisis. Amid high gasoline prices globally, China's refined oil prices will undergo their sixth round of adjustment on March 23, according to The Paper. The price increase for 92-octane gasoline is expected to exceed 1.6 yuan (23 US cents) a liter.

Nations around the world are taking steps to address the energy crisis. In Thailand, residents have been warned to reduce use of air conditioners, and the Philippines closed some restaurants and put government employees on a four-day workweek. Sri Lanka initiated gasoline rationing. Rural economies are concerned about soaring prices for fertilizer, with about a third of global fertilizer production coming from the Gulf region.

In late afternoon trading in New York, benchmark Brent crude was priced at US$109 a barrel, paring earlier gains. The S&P 500 stock index tumbled 1.5 percent. In Asia, which depends heavily on Gulf oil and natural gas, the benchmark Shanghai Composite Index lost 1.2 percent and Japan's Nikkei plunged 3.4 percent.

US Indicts Trio in Unauthorized Nvidia Sales to China

The US Attorney's Office for the southern New York district has charged three people with US$2.5 billion of unauthorized chip sales to China. The US government alleges that Liaw Yih-Shyan, Chang Ruei-Tsan and Sun Ting-Wei conspired to violate federal export law by sending servers to China that contained advanced Nvidia chips subject to licensing regulations. Liaw is a co-founder of server maker Super Micro Computer, resigned from the board. Shares of Super Micro plunged 33 percent in New York on Friday, even though Super Micro is not named as a defendant. Chang is the company's sales manager and Sun as a contractor. The indictment said a Southeast Asian company acted as a middleman in the transactions, using fake paperwork to disguise the servers' destination.

Top Business

XPeng Posts First Quarterly Profit, Narrows Annual Loss

Chinese electric vehicle maker XPeng reported a milestone, achieving its first profitable quarter in the last three months of 2025. Net profit turned to 380 million yuan (US$55 million) from a 1.33 billion yuan loss a year earlier. Revenue rose 9.2 percent to 22.3 billion yuan. For the full year, the company narrowed its loss to 1.1 billion yuan from 5.8 billion yuan a year earlier. Revenue for 2025 surged 88 percent to 76.7 billion yuan on a 126 percent surge in deliveries to 429,445 vehicles, cost reductions and an improved product mix of models. XPeng said it benefited from increased revenues generated by technical research and development services, parts and accessories sales, and carbon credit trading.

Headquartered in Guangzhou, XPeng develops in-house advanced driver-assistance and intelligent operating systems. The firm is currently expanding into more advanced self-driving technology aimed at what is called Level 4 autonomous driving. It is also branching out into production of advanced humanoid robots. The company is additionally developing "flying cars" and robotaxis.

Zijin Mining Posts Strong 2025 Profit Growth

Fujian Province-based Zijin Mining reported 2025 net profit surged nearly 62 percent to 51.8 billion yuan (US$7.2 billion) as gold prices climbed to record highs. Operating revenue climbed 15 percent to 349 billion yuan. The increases came on gains in output. Zijin gold production surged 23 percent to 89,540 kilograms, accounting for almost a quarter of China's total production. Copper production edged up 1.6 percent to about 1 million tons. The Shanghai-listed mining giant said it made significant strides in its green energy transition. Clean energy accounted for 54 percent of its total annual electricity consumption, reaching 6.3 billion kilowatt per hour.

Economy & Markets

China Central Bank Leaves Rates Unchanged

The People's Bank of China left prime rates unchanged on Friday for a 10th month. The one-year rate, used for most commercial and household loans, remains at 3 percent, and the five-year rate used to benchmark mortgages stays at 3.5 percent.

Foreign Investment in China Drops This Year

China recorded a 5.7 percent decline in foreign direct investment in the first two months of 2026 to 161.4 billion yuan (US$23.1 billion), despite a 14 percent rise in new foreign firms operating in the country, the Ministry of Commerce reported. Investment in technology sectors surged 20 percent, accounting for 39 percent of inflows. Separately, authorities unveiled new measures to boost inbound tourism and spending, including expanding tourism offerings, easing business travel and promoting packages for visitor that combine sports and entertainment performances.

China to Update Diagnosis Payment Rules

China's National Healthcare Security Administration said it plans to release an update of its diagnosis-related group payment system in mid-year, with full implementation set for January 2027. The update will refine rules to improve accuracy. By utilizing real-world data and industry feedback, authorities aim to standardize payments and enhance healthcare efficiency nationwide.

More Banks to Join Digital Yuan Trading

China plans to authorize 12 additional lenders, including Citic and Bank of Beijing, to operate its digital yuan system. These institutions are currently completing system testing and deployment. The expansion aims to scale up yuan trading, enhance competition and accelerate the digital currency's integration into retail and financial services.

Deep Dive

Suffering Insomnia? Consult a Chatbot: AI As a Front Door to Healthcare

China's boom in consumer-related AI has spilled into healthcare, with technology companies racing to turn AI assistants into the next digital gateway after payments and e-commerce.

China to Ban Futuristic Car Controls That Endanger Safety

Starting from July 1, new vehicle models in China must come allow control of 19 core safety functions with physical buttons, not controls hidden exclusively in menus, including turn signals, hazard lights, gear selection and wipers, with physical controls.

Corporate

Tesla Eyes Purchase of US$2.9 Billion in China Solar Gear

Tesla is talking with Suzhou-based Maxwell Technologies and other Chinese suppliers, looking to buy US$2.9 billion of equipment to manufacture solar panels and cells, Reuters reported. Tesla Chief Executive Elon Musk is seeking to add 100 gigawatts of solar capacity in the US, where growth in power infrastructure hasn't kept pace with the electricity appetite of AI data centers. Maxwell is the world's biggest producer of screen-printing equipment used to make solar cells. Other potential suppliers include Shenzhen-based SC New Energy Technology and Laplace Renewable Energy Technology.

Xiaomi Launches Upgraded SU7, With Safety Handles

Xiaomi launched its second-generation electric SU7, pricing the standard model at 219,000 yuan (US$31,870), cheaper than the preceding model. The sticker price on the Pro model is 249,900 yuan and 303,900 yuan for the top range Max model. The door handles on the new models all feature safety modifications after several fatal collisions where passengers and rescuers couldn't open doors when fire impacted the car's electric automated systems. The cars have exterior handles and an interior mechanical handle for emergency escapes.

The company announced it plans to spend more than 60 billion yuan (US$8.7 billion) on artificial intelligence over the coming three years. Its Xiaomi MiClaw smartphone AI agent has gone into beta testing. Xiaomi also unveiled three MiMo large language models for integration into its operating system and the consumer smart market.

Jushi Opens World's Largest Electronic-Grade Fiberglass Fiber Plant

China Jushi, a subsidiary of China National Building Material Group, opened a new fiberglass production line in Jiangsu Province, the largest of its kind in the world. It has capacity to produce 100,000 metric tons of electronic-grade fiberglass and 390 million meters of electronic fabric a year. That output would comprise about 9 percent of the global market capacity. Fiberglass used in printed circuit boards. The company said its products are needed in consumer electronics, 5G telecommunications and information infrastructure.

France Can't Ban Shein Marketplace, Paris Court Rules

A Paris appeals court rejected the French government's legal attempt to ban Chinese online discount retailer Shein after sex dolls resembling children and weapons were found on its sales platform. Shein, which sells clothes and gadgets, is a favorite site for shoppers looking for rock-bottom prices. Much of the merchandise that stirred the controversy was offered through third party sellers. The court ruling stipulated that Shein cannot sell the dolls or weapons in the future without adequate age verification of buyers. Shein said it has addressed the concerns.

Kao's Kate Cosmetics Quits Chinese Online Retailers

Kate, the cosmetics brand under Japan's Kao Group, is closing its flagship shops on Chinese e-commerce platforms Douyin and Tmall on April first. The brand has faced stiff competition in a Chinese mainland market of weaker consumer spending.