Weekend Buzz: 6-7 December 2025

Xi Joins Macron in Visit to Ancient Irrigation Site

Chinese President Xi Jinping, who rarely accompanies visiting dignitaries when their trips take them outside Beijing, was at the side of Emmanuel Macron on Friday when the French president traveled to the southwestern province of Sichuan to view the iconic Dujiangyan dam, an irrigation system dating back to the 3rd century BC. The two leaders used the occasion for informal talks, Xinhua reported. Xi's gesture was interpreted as a demonstration of Beijing's regard for France as a conduit in its sometimes fraught relations with the EU. In the Sichuan capital of Chengdu, Macron was filmed jogging through a city park and waving at surprised residents, and his wife Brigitte visited the panda center where two giant pandas loaned to France recently returned to retire.

China Pledges US$100 Million in Aid for Gaza

China this week pledged US$100 million in aid to Gaza to alleviate the humanitarian crisis affecting Palestinians and support reconstruction in the war-torn territory. China has long been a strong supporter for the creation of a Palestinian state, which is vehemently opposed by the current Israeli government.

Storm Death Toll Rises in Southeast Asian, Sri Lanka

More than 1,500 people have died in Southeast Asia and Sri Lanka from the impact of two separate storms that triggered widespread flooding and landslides. Indonesia is among the worst hit, with 800 people dead and hundreds more missing on the island of Sumatra. Vietnam, Thailand and Malaysia have also been affected. More than an estimated 1 million people have been left homeless.

Congo-Rwanda Peace Accord Off to Shaky Start

Fighting between the Democratic Republic of Congo and neighbor Rwanda flared hours after US President Donald Trump, with much fanfare, hosted the signing of a peace deal between the two countries. "We're settling a war that's been going on for decades," said Trump, who wants to burnish his credentials as a world peace broker. At least 23 people were reported killed in the latest attacks.

Legendary Architect Gehry Dies

US architect Frank Gehry, whose vast body of works includes the Opus residential block and Maggie's cancer center in Hong Kong, and the Taiwan China Medical University museum in Taipei now under construction, died at age 96. Gehry in his long career won every major prize in architecture. Among his many masterpieces are Guggenheim Museum in Bilbao, Spain, the Walt Disney Concert Hall in Los Angeles and Berlin's DZ Bank Building.

Top Business

China Grants Rare Earth Export Licenses

China granted general export licenses to rare-earth magnet producers JL Mag, Zhong Ke San Huan and Ningbo Yunsheng, marking the first group of broad approvals under a revised export-control regime. The Ministry of Commerce has confirmed the swift approval of all compliant rare-earth export applications for civilian end-use. Analysts said the approvals ease global concerns about global shortages of the magnets, which are used in electric vehicles and wind turbines.

HongShan Issues Golden Goose Takeover Bid

China's HongShan Capital Group sent a 2.5 billion euro (US$2.9 billion) offer to private equity firm Permira to buy its Italian luxury sneaker brand Golden Goose, with the aim of signing the deal by year's end, Reuters reported, citing the Italian newspaper La Repubblica. If completed, the deal would mark one of the largest consumer brand acquisitions by a Chinese investor in Europe this year. The Venice-based company sells sneakers for more than 500 euros a pair.

China Encourages 'Patient Capital' for Insurers

China's National Financial Regulatory Administration has cut the risk weightings for key insurance investments to encourage stable, long-term capital. This adjustment effectively lowers the minimum capital insurers must reserve, freeing up funds. The risk factor for blue-chip stocks held for over three years was reduced from 0.3 to 0.27, while the risk factor for STAR Market technology stocks held for over two years was cut from 0.4 to 0.36. The agency seeks to instill a longer-term outlook – or "patient capital" – in insurance investments.

Local Bond Issues Earmarked for Debt Repayment

More than 10 trillion yuan (US$1.41 trillion) of local bonds during were issued in the first 11 months of this year, with the majority dedicated to debt repayment, according to the Enterprise Early Warning Platform. About 4.8 trillion yuan was in refinancing bonds used to roll over maturing obligations, and 38 percent was earmarked for construction projects. The central government has supported the sales as an avenue for cleaning up "off the books" local government debt, which the finance ministry estimated at 53.7 trillion yuan at the end of September.

Netflix to Buy Warner Bros Streaming Service

Netflix has won a bidding battle to buy the film and streaming businesses of Warner Bros Discovery for US$72 billion. Warner owns franchises including the Harry Potter and Game of Thrones series, and HBO Max. The takeover, still subject to regulatory approval, would create a new giant in the entertainment industry.

Economy & Markets

China Pledges 'Deep Transformation' in Capital Market

China's securities regulator pledged to open the door wider to foreign investment in the mainland's capital market and to lower the threshold for startup technology companies seeking to raise funds publicly through equity markets. In an article published in People's Daily on Friday, Wu Qing, chairman of the China Securities Regulatory Commission, said the capital market needs a "deep transformation," with money funneled into priority sectors and private equity and venture capital encouraged to play an important role, the South China Morning Post reported.

Separately, the commission on Friday released a draft of new administrative rules for Chinese listed companies. It focuses on strengthening corporate governance, enhancing investor protection, regulating mergers and acquisitions, and significantly increasing penalties for misconduct.

Japan Bond Yield Spike Puts Central Bank in a Quandary

A spike Japanese government bonds creates a dilemma for the nation's central bank, CNBC reported. This week, the 10-year bond yield rose to an 18-year high of 1.917 percent, while 20- and 30-year debt hit 26-year highs. Bank of Japan Governor Kazuo Ueda has signaled the bank may start reversing its near-zero rate policy and consider a rate rise this month, as inflation stubbornly remains above the bank's 2 percent target. A rate rise risks sending yields higher, driving up the cost of money when the economy is limping along. Investor nervousness over bond yields also poses a problem for Prime Minister Sanae Takaichi's proposed US$137 billion spending plan, financed by debt, to prod economic growth.

Small Chinese Bank Defaults on Public Bond

Yanbian Rural Commercial Bank in Jilin Province defaulted on an interest payment on a 300 million yuan (US$42 million), 10-year public bond without informing investors, Caixin reported. The "silent default" is the first time a borrower has failed to meet its credit obligations without a public explanation, fueling concerns about the health of China's small banks.

China Carmakers Race to Meet Targets

China's automakers are waging a fierce year-end push to meet annual sales goals. The top four companies in sales in November were BYD, even after 5 percent year-on-year decline, and SAIC, Geely and Changan. Year-end auto sales are buoyed by consumers rushing to buy before the January expiry of government tax breaks on electric vehicles. Sales of new energy vehicles in November rose 9 percent from a year earlier. Startup Leapmotor set a monthly record with 70,327 deliveries in November, surpassing its 2025 goal.

Deep Dive

The 15th Five-Year Plan Series

China recently released the blueprint for the 15th Five-Year Plan (2026-2030), outlining how the nation will move up the value chain in industry and spur innovation, become more self-reliant in technology, and improve living standards. The new plan, which comes amid a more disquieting global environment, will go to the National People's Congress in March for adoption. This series provides insights into China's vision of its path forward.

China Nurtures Technology Development as Engine of Growth

The plan stresses the nation's drive toward self-reliance in technology development to free China from dependence on foreign suppliers.

China's Auto Industry Shifts Gears from Quantity to Quality

China's automakers, ready and eager to embrace the self-driving cars of the future, are poised under the nation's 15th Five-Year Plan (2026-2030) to shift their focus from production volume and speed to AI development and deeper overseas penetration.

Synergy of Finance, Technology a Keystone in China Vision of the Future

China's multi-trillion-dollar financial industry and the nation's leading role in global technology development are bedfellows in the 15th Five-Year Plan (2026-2030), and Shanghai is poised to play a pivotal role in advancing their synergy.

China Rejigs Healthcare to Put Money Where It Delivers Optimal Results

China is redesigning its healthcare system, with the 15th Five-Year Plan (2026-2030) pointing where change will lead.

Corporate

Baidu Chip Arm Said to Eye Public Share Sale

The AI chip unit of Chinese Internet search engine titan Baidu is planning an initial public offering in Hong Kong after the latest round of financing valued it at 21 billion yuan (US$3 billion), Reuters reported. Kunlunxin aims to file an initial application with the Hong Kong stock exchange as early as the first quarter of 2026. Kunlunxin would join a wave of Chinese chip-making companies going public to raise funds for research and development, supported by the Chinese government's ambition to achieve self-sufficiency in advanced technology.

Foxconn Revenue Surges 26 Percent

Taiwan-based Foxconn, which assembles iPhones and makes AI chips for Nvidia, reported revenue in November surged 26 percent to NT$844 billion (UD$$27 billion) on high demand for its cloud computing and networking products. The world's largest contract electronics maker, also known as Hon Hai Precision, Foxconn makes the servers that hold chips in data centers.

Country Garden Gets Debt-Restructuring Approvals

Country Garden Holdings, once a leader in mainland property development, said it has obtained Hong Kong court approval for its US$17.7 billion overseas debt restructuring plan and creditor approval for a domestic rescue package for debt totaling 13.8 billion yuan (US$2 billion). Country Garden was one of the victims of the liquidity crunch in 2021 that sent the nation's property market into a slump.

Nio's Battery Swap Stations to Expand

Electric carmaker Nio's Onvo arm said it will add 8,000 new battery swap packs to its network of stations by the start of the Lunar New Year holiday in mid-February. Battery swaps allow motorists to exchange spent batteries for new ones within five minutes, faster than the time required to plug into a recharging station. In October, Nio said battery swaps to date surpassed 90 million.

SpaceSail Signs Agreement with Airbus

Shanghai-based SpaceSail Technologies signed a market agreement with Airbus on satellite Internet services to provide high-speed, low-latency broadband satellite services via the high-speed connectivity system on aircraft, enhancing the in-flight experience for passengers.