China

Peoples Daily | English | News | Jan. 23, 2026 | UndeterminedTaxes

In 2025, China's manufacturing sector accelerated its shift toward intelligent and green development, solidifying its role as a key stabilizer of the national economy. The sector's sales revenue growth exceeded the national average by 1.7 percentage points, reaching 29.7 percent of the country’s total sales revenue, a 0.5-percentage-point increase from 2024.

Procurement of automated and digital equipment by manufacturing enterprises rose by 11.3 percent and 10 percent respectively, illustrating progress in intelligent transformation and digital upgrading. The intelligent equipment manufacturing industry's sales revenue jumped 28.1 percent, supported by output increases in industrial robots (17.4 percent) and special operation robots (42.1 percent).

The share of high-energy-consuming manufacturing enterprises' sales revenue declined by 1.1 percentage points, indicating ongoing industrial structure optimization. Spending on environmental governance services by manufacturing enterprises also increased steadily. Moreover, procurement of digital technologies surged 10.4 percent in value, an acceleration of 3.5 percentage points compared to the previous year.

Going forward, China's tax authorities plan to implement preferential tax and fee policies to support the sector's transformation and upgrading. They will continue optimizing tax and fee services to promote the high-quality development of the manufacturing industry.

Yicai Global | English | News | Jan. 23, 2026 | UndeterminedEconomic Growth

The ASEAN+3 region, comprising the 10 ASEAN members along with China, Japan, and South Korea, is projected to experience stronger economic growth in 2026 than previously forecasted. The ASEAN+3 Macroeconomic Research Office (AMRO) updated its outlook, predicting a 4 percent expansion in 2026 following 4.3 percent growth in 2025, marking a 0.2 percentage point upward revision for both years. China’s growth forecast was similarly raised to 4.6 percent in 2026 from the earlier estimate, supported by macroeconomic policies, resilient exports, and investment in high-tech manufacturing.

The region’s economic resilience is attributed to strong technology demand and robust foreign direct investment inflows into sectors such as advanced electronics, electric vehicles, and digital services. Semiconductor exports in the region grew by 21.7 percent in the second half of 2025, driven by demand related to artificial intelligence and cloud infrastructure. The global purchasing managers’ index for electronics new orders showed improvement in December 2025, indicating continued export growth. Regional equity markets have also gained since October 2025, boosted by momentum in artificial intelligence despite concerns about US tariff policies.

Despite more balanced risks overall, AMRO identified ongoing uncertainties and downside risks, particularly linked to unpredictable US trade policies and potential expansions of protectionist measures. A significant slowdown in technology demand, possibly caused by market corrections or delays in AI adoption, could adversely affect regional exports, given the sector's cross-border ties. AMRO emphasized the importance of policy readiness to manage shocks in the short term, while encouraging diversification of growth drivers and deeper regional economic integration to enhance long-term resilience.

Xinhua | English | News | Jan. 23, 2026 | UndeterminedEconomic Growth

China's 2025 GDP growth demonstrated resilience amid global uncertainties, reflecting the early effects of a strategic economic rebalancing under the 15th Five-Year Plan (2026-2030). Policymakers are shifting focus from pursuing headline growth figures to enhancing economic stability and balance by expanding domestic demand, investing in human capital, and promoting innovation. This approach prioritizes long-term resilience through targeted support rather than broad stimulus measures.

The central bank's recent cautious monetary easing and planned increased fiscal spending for 2026 underscore the government's commitment to sustainable development. Fiscal resources will be directed towards consumption, human capital investment, and livelihood protection, balancing current needs with medium- and long-term financial sustainability. External observers see this as a sign of China's strategic transformation toward economic maturity.

Structural rebalancing is central to the new economic direction, with domestic consumption and technological advancement replacing traditional growth drivers like investment and exports. The government plans to release a domestic demand expansion strategy for 2026-2030, emphasizing sectors such as elderly care, green technology, and cultural tourism. Innovation, particularly in areas like artificial intelligence, is expected to enhance productivity and drive future growth.

A strong emphasis is placed on investing in people, viewing human capital as essential to sustainable growth and innovation. Policies aim to increase household incomes, stabilize and improve employment quality, and leverage China’s vast pool of STEM graduates to transition from a "population dividend" to a "talent dividend." This focus on intrinsic economic stability through rebalancing is poised to shape China's development trajectory amid global complexities in 2026 and beyond.