Daily Buzz: 16 February 2026

China-US Agree to Manage Differences at Munich Security Summit

Chinese Foreign Minister Wang Yi and US Secretary of State Marco Rubio, meeting on the sidelines of the annual Munich Security Conference, pledged to strengthen dialogue and manage differences that divide the world's two biggest economies. One of those differences is the importance of the UN, which President Donald Trump dismisses. "The UN is not perfect, but it remains the most universal and authoritative international position in the world," Wang said in a speech to the conference. "The monopolization of global power by a small number of countries is unpopular. We live in a multipolar world and need to practice true multilateralism." Speaking of China-US relations, he said there are anti-China voices in Washington seeking to "smear" China and undermine the bilateral relationship, and it's up to the US whether the two nations can get along through dialogue and consultation. While in Munich, Wang also lashed out again at Japanese Prime Minister Sanae Takaichi for Taiwan-related comments last year that insulted China's national sovereignty.

Rubio said it would be "geopolitical malpractice" not to talk to China. "We're two large countries with huge global interests, and our national interests will often not align," he said. "We owe it to the world to try to manage those as best we can, obviously avoiding conflict, both economic and worse."

The Munich conference was a microcosm of geopolitics. Here's a snapshot of what some participants said in speeches and on the sidelines:

Marco Rubio: The top US diplomat said the US has no plans to abandon the trans-Atlantic alliance but made it clear that European leaders need to change course, embrace the world vision championed by Trump and abandon what he described as the long-standing "deception" of liberal democracy. He also chided the UN, saying it "has no answers to the most pressing matters before us," like ending the wars in Ukraine and Gaza.

Friedrich Merz: The German Chancellor Friedrich Merz said he's in talks with France over a potential European nuclear defense alliance to reorder the trans-Atlantic relationship amid the turmoil of Trump's second term. "The world order no longer exists as it did," he said, though he stopped short of advocating a wider break with Washington.

Gavin Newsom: The Democratic governor of California offered some solace to a world weary of Trump administration "wrecking-ball" policies. "Donald Trump is temporary. He'll be gone in three years," he said. Newsom, who is considered a potential candidate in the 2008 presidential election, also lambasted Trump's anti-climate change policies.

Volodymyr Zelensky: The Ukrainian president said his nation is too often the only one asked to make concessions in ongoing peace talks with Russia and accused Moscow of impeding progress. He called Russian President Vladimir Putin a "slave to war" and said Russian air strikes have damaged every power plant in Ukraine. Peace talks are due to resume in Geneva on Tuesday.

Mette Frederiksen: The Danish prime minister said talks with the US over Greenland show no signs that Washington is backing down from its ambition to annex the Danish-controlled island. "Pressure in Greenland is totally unacceptable," she said. "There are some things you cannot compromise on, including respect for sovereign and territorial integrity."

Keir Starmer: The UK prime minister said Britain will send a fleet of warships and fighters jets to the Arctic this year to deflect Russian influence in the region. He also said Europe "must stand on its own two feet" when it comes to defense.

Pedro Sanchez: The Spanish prime minister said nuclear rearmament will not protect anyone from Vladimir Putin. He said global powers spend US$11 million every hour on nuclear weapons – "enough to eradicate extreme poverty in the world." The application of artificial intelligence to nuclear arsenals is particularly dangerous, he added.

Europeans Cite Evidence Navalny Poisoned in Russian Prison

Russia poisoned high-profile opposition politician Alexei Navalny two years ago with deadly toxin from the South American dart frog, France, Germany, the Netherlands, Sweden and the UK jointly announced this weekend. The Kremlin, which has always claimed Navalny died of natural causes in a Siberian prison, called the finding a "misinformation campaign by the West." The five European countries said analysis of samples from Navalny's body "conclusively confirmed" the presence of a toxin called epibatidine, which is found in Ecuadorian frogs. Navalny's widow Yulia Navalnaya welcomed the conclusion, saying it vindicates what she and others have always claimed – that her husband was killed by Russian authorities. Navalny, an anti-corruption campaigner, had earlier survived a poisoning attempt with a nerve agent while on a flight in Russia.

Top Business

Hua Hong Turns to Profit on Memory Chip Demand

Shanghai-based Hua Hong Semiconductor, one of China's largest chip foundries, said it turned to a profit of US$17.5 million in the fourth quarter from a year earlier loss of US$25 million on a surge in memory chip prices. Revenue rose 22 percent to a quarterly record of US$600 million. On an earnings call with investors, company President Bai Peng said, "Memory certainly is in high demand nowadays. If the supply gets tighter, it does give us more opportunity to increase prices."

The company, which makes logic chips regarded as the "brains" of electronic devices, said its gross margin in the last quarter of 2025 rose 1.6 percentage points to 13 percent. For the full year, Hua Hong reported a 5.6 percent decline in profit to US$55 million and a revenue rise of 20 percent to US$2.4 billion. It is forecasting first-quarter revenue of up to US$660 million.

US Unveils Plan to Challenge China's Shipbuilding Dominance

The Trump administration has released plans to rebuild the US shipbuilding industry to counter China's global dominance, paying for it in part by fees on China-made ships delivering cargo to US ports. The US and China last year levied reciprocal port fees on one another during a trade spat but later suspended them for a year. US shipbuilding has shrunk since World War II, now severely lagging China and South Korea, Reuters reported. The new plans calls for establishment of "maritime prosperity zones" to bolster investment, enhanced industry training, improved harbor infrastructure and an expanded US commercial fleet. The Chinese government earlier this month said the nation's shipbuilding production last year rose 11 percent to 53.7 million deadweight tons, accounting for 56 percent of the global total.

Economy & Markets

Bank Signals Profit Woes Among Chinese Companies

A Morgan Stanley analysis points to deteriorating profits when the Chinese earnings reporting season goes into high gear after the Chinese Lunar New Year holiday, Bloomberg News reported. The investment bank's outlook is based on preliminary earnings forecasts for the fourth-quarter and full year issued by mainland companies, largely reflecting weak consumer demand. About 15 percent of preliminary earnings statements from some 2,000 listed Chinese mainland companies have been negative, according to Morgan Stanley, particularly in property and consumer sectors. Technology companies are expected to fare better. The report came out before the Friday announcement from e-commerce giant Meituan that it may post a 2025 loss of up to 24.3 billion yuan (US$3.5 billion) on its "intense" battle with Alibaba and JD.com in the fast food-delivery market.

Three Chinese Mainland Companies to Join Hang Seng, One Leaving

China battery giant Contemporary Amperex Technology (CATL), copper miner CMOC and jewelry retailer Laopu Gold will be added to Hong Kong's Hang Seng Index beginning on March 9 under the latest quarterly revision. Chinese automotive dealer Zhongsheng Group will be bounced from the index. CATL, the world's largest maker of lithium batteries, raised US$4.6 billion in Hong Kong's largest 2025 initial public offering.

European Central Bank Expands Repo Lines

The European Central Bank unveiled plans on Saturday to widen access to its euro liquidity backstop, making it globally available and permanent in a bid to bolster the international role of the single currency, Reuters reported. Access to such repo lines, a critical source of funding during times of market stress, has been limited in the past. Bank President Christine Lagarde said the EU central bank "needs to be prepared for a more volatile environment. We must avoid a situation where that stress triggers fire sales of euro-denominated securities in global funding markets." Repo lines are used when banks are unable to obtain funding on the open market.

Chongqing Surpasses Shanghai as Retail Sales Leader

The southwestern metropolis of Chongqing eclipsed long-time leader Shanghai to become the largest Chinese mainland city in terms of retail sales. Municipal data shows 1.7 trillion yuan (US$241 billion) in 2025 sales.

Corporate

Bio-Thera Wins First Global Approval for Drug

Guangzhou-based biopharmaceutical company Bio-Thera Solutions received regulatory approval from the EU to market its Gotenfia drug for treatment of chronic inflammatory autoimmune diseases. The antibody drug has an indicative use in treatment of rheumatoid arthritis and ulcerative colitis. It's Bio-Thera's first global approval, with applications pending in the US and Brazil. In May 2024, Bio-Thera granted German pharmaceutical company Stada Arzneimittel exclusive commercialization rights for Gotenfia in the EU, Switzerland and the UK for upfront and milestone payments totaling up to US$157.5 million, as well as a double-digit percentage on the drug's net sales after launch, Yicai Global reported.

L'Oreal Sales Miss Market Forecasts, China Cited

French beauty products giant L'Oreal said sales to Chinese travelers, largely at duty-free shops, fell below expectations, a factor limiting growth in global fourth-quarter revenue to 6 percent at 11.3 billion euros (US$13.4 billion). However, Chief Executive Nicolas Hieronimus, on an earnings call with analysts, said the outlook is for China to return to "a positive in luxury consumption." He blamed the problem, in part, to the company's duty-free retail shopping app. L'Oreal revenue in the quarter was below market forecasts, sending the company's shares lower.