China

2025年新房销售8.4万亿元，库存增速骤降、销售降幅收窄

Beijing News | Local Language | News | Jan. 21, 2026 | UndeterminedReal Estate

In 2025, China's national real estate development investment totaled 8.28 trillion yuan, a 17.2% decrease from the previous year. Newly built commercial housing sales area and sales amount also declined by 8.7% and 12.6% year-on-year, respectively. However, these declines were narrower than those in 2024, signaling a market movement toward balance. The growth rate of commercial housing inventory slowed significantly, with the area for sale increasing only 1.6%, compared to double-digit increases in prior years, indicating effective destocking efforts by both the government and developers.

Investment in residential real estate specifically fell 16.3% in 2025, while new housing starts dropped sharply by 20.4%. Developers showed increased caution, focusing investments on higher-tier cities with strong fundamentals and population inflows, moving away from broad nationwide expansion. Declines in housing construction, new starts, and completions all reached double digits, reflecting a contraction in industry scale driven by policies controlling new supply and revitalizing existing stock.

Available funds for real estate firms decreased by 13.4%, affecting investment capacity. Developers responded to market pressures by adopting price cuts and promotions, which contributed to a slower decline in sales area compared to sales amount. The decline in commercial housing sales area fell to single digits, and slower inventory growth, combined with shrinking new supply, indicates the market is stabilizing under deep adjustment.

Looking ahead to 2026, the market is expected to prioritize absorbing unsold stock projects while benefiting from improved conditions in second-hand housing markets in key cities. Price declines in first-tier cities have narrowed, and transactions for second-hand homes have increased, signaling growing demand from first-time buyers and urban residents. Policy efforts in 2026 will focus on stabilizing market expectations, activating demand, and optimizing supply, although overall market repair will take time due to limited new project supply and ongoing destocking pressures.

Yicai Global | English | News | Jan. 21, 2026 | UndeterminedEconomic Growth

The economic relationship between China and South Korea has evolved from a vertical division of labor to a multi-layered horizontal cooperation during the last Five Year Plan, which ended in 2025. Bilateral trade between the two countries increased by 1.7 percent last year, reaching CNY2.37 trillion (USD340 billion). China’s exports to South Korea totaled CNY1.03 trillion (USD147.9 billion), while imports from South Korea were CNY1.34 trillion. South Korea has been China’s second-largest trading partner for two consecutive years, and its trade with China is considered higher quality compared to China’s trade with the United States.

There is significant industrial complementarity between the two countries, with South Korea able to leverage Chinese technology to reduce costs, while Chinese companies use the South Korean market for product testing. Trade with South Korea accounted for 5.2 percent of China’s total foreign trade last year, indicating room for further growth. China has become more competitive than South Korea in fields such as robotics, autonomous driving, electric vehicles, and semiconductors, now leading in chip research, manufacturing, product services, and domestic demand. Conversely, South Korea maintains an advantage in the supply chain for materials, components, equipment, and overseas demand.

During a recent state visit to Shanghai, South Korean President Lee Jae-myung attended the China–ROK Innovation and Entrepreneurship Forum, emphasizing the need for cross-border cooperation and technology sharing to foster innovation. He highlighted the importance of creating an environment that supports young entrepreneurs and professionals. President Lee expressed hope that youth-led scientific and technological collaborations between the two countries under China’s 15th Five-Year Plan (2026–2030) will become the norm and drive productivity growth.

Global Law Office | English | AcademicThink | Jan. 21, 2026 | Regulation

On December 29, 2025, China's Tariff Schedule Commission announced the 2026 Tariff Adjustment Plan, effective January 1, 2026. Key changes include reduced interim import duty rates on selected high-tech components, advanced materials, recycled battery powders, unroasted iron pyrites, and certain medical products such as artificial blood vessels and diagnostic kits. The plan also excludes 14 commodities from interim duty rate treatment, with one commodity receiving a further reduction.

The tariff subheading structure was revised, increasing the number of 8-digit subheadings from 8,960 to 8,972 to accommodate new categories like intelligent bionic robots and bio-aviation kerosene. Additionally, three national subheading notes were added and one modified, bringing the total to 201 notes covering 240 tariff codes.

Preferential tariff rates will continue under 24 free trade agreements with 34 trading partners. Further tariff reductions will be implemented based on agreements with countries such as New Zealand, Peru, Switzerland, and South Korea, as well as under the Regional Comprehensive Economic Partnership (RCEP). Preferential rates remain for commodities whose tariff reduction transition periods have expired under FTAs with ASEAN, Chile, Singapore, and others.

China maintains zero-tariff treatment on all tariff items for 43 Least Developed Countries with diplomatic relations, while tariff quotas only offer zero rates within the quota. Special preferential rates also continue for certain goods from Bangladesh, Laos, Cambodia, and Myanmar under the Asia-Pacific Trade Agreement and related ASEAN arrangements.

The tariff adjustments introduce compliance risks, notably the need for importers and exporters to reclassify affected tariff codes and prepare legal documentation to address customs inquiries and audits. Exporters must have robust internal compliance to substantiate country of origin declarations to benefit from preferential tariff treatments.