China

China-US Focus | English | AcademicThink | Jan. 9, 2026 | Geopolitical Conflict and Disputes

The United States’ intervention in Venezuela highlights evolving dynamics in the liberal international order rather than signaling its collapse. While the core pillars of this order remain intact and alternatives are weak, the intervention exemplifies a shift toward more frequent discretionary US actions without clear thresholds for when coercion supersedes restraint. This ambiguity challenges established norms about state behavior and the interpretation of power within the international system.

Historically, US global leadership relied on military and economic dominance, buttressed by alliances and institutional structures that created interdependencies. However, recent moves under the Trump administration, such as the intervention in Venezuela based on broad concerns like migration and Chinese influence rather than a clear “red line,” have blurred traditional boundaries. The administration’s actions—from prosecuting a sitting foreign leader to sidelining Congress and opposition groups—have replaced visible thresholds with discretionary judgments, creating uncertainty for other states.

This new approach undermines expectations of US prudence and restraint, potentially prompting other nations to hedge, seek legal protections, diversify institutions, and reduce exposure to US influence without necessarily defecting outright. Although the existing international order is not on the verge of collapse due to the lack of credible alternatives, maintaining US leadership is becoming more costly and transactional. The intervention in Venezuela thus intensifies a longstanding tension between unilateral enforcement and cooperative leadership, risking a future where the US is perceived more as a rogue power, thereby raising the costs and diminishing the returns of its global authority.

从双星创始人断绝父子关系看家族企业传承的深层次法律困境

AnJie Broad Law Firm | Local Language | AcademicThink | Jan. 9, 2026 | UndeterminedLegal Exposure

The public severance of relations between Wang Hai, the 84-year-old founder of Shuangxing Mingren Group, and his son Wang Jun and daughter-in-law Xu Ying has placed the century-old family business in crisis. In 2022, Xu Ying's company, controlling 80% of Qingdao Xingmaida Industry & Trade Co., acquired a 56.96% stake in Shuangxing Mingren, making Xu Ying the controlling shareholder with 69.48% of shares. By May 2025, Wang Hai was removed from his chairman position by the board, reflecting a shift in power due to changes in equity structure. This dispute highlights typical control battles in Chinese family businesses, often centered on shareholding percentages, board composition, and control of the company seal.

Legally, the case reveals flaws in succession and governance models prevalent among family businesses. Wang Hai’s arrangement failed to anticipate risks introduced by external capital and changing family dynamics, underscoring gaps between corporate governance and family property law. Informal family trust that functions during harmony falters when estrangement occurs, exposing weaknesses in the absence of formal legal protections. Wang Hai’s advocacy for “talent succession” and “professional manager succession” emphasized progressive concepts but lacked institutional support to be viable.

The case also illustrates conflicts between family law, which governs kinship, and company law, which governs corporate relationships. Coordination between these frameworks requires distinguishing personal identity from commercial investment rights. To address such governance challenges, a systematic and institutional succession framework is recommended, beyond reliance on isolated legal tools.

One effective mechanism proposed is the use of family trusts, which separate ownership, control, and benefits, providing flexibility in succession arrangements according to founder specifications. Trusts enable conditions on successors and safeguard family wealth management, while incorporating control, beneficiary order, and tax planning. Additionally, the new Company Law’s introduction of class shares permits different voting rights, enabling founders to retain control despite reduced equity share. Had Wang Hai employed such mechanisms—like an A/B share structure or family trust—the current control struggle might have been mitigated.

Overall, Shuangxing Mingren’s situation serves as a cautionary tale for Chinese family businesses to transition from personal rule to legal institutionalization in succession planning. Establishing clear legal frameworks that balance family ties and corporate governance is essential to avoid destructive control disputes and ensure long-term business stability.

Yicai Global | English | News | Jan. 9, 2026 | UndeterminedFinancial System Problems

The People's Bank of China (PBOC) has confirmed its commitment to maintaining a moderately loose monetary policy throughout 2026, aiming to support high-quality economic growth and reasonable price recovery. The central bank plans to flexibly use tools such as reserve requirement ratio (RRR) and interest rate cuts to ensure ample liquidity and boost credit expansion, with possible initial adjustments occurring before the Chinese New Year on February 15.

Prices are expected to remain relatively low this year, supported by the easing of external constraints due to the Federal Reserve’s rate cut cycle. Although large rate cuts and quantitative easing are unlikely, structural monetary policy tools will be optimized, with increased quotas and moderately lower operating rates following the interest rate cuts. The PBOC also reaffirmed its exchange rate policy to maintain the yuan's value at a reasonable and balanced level while preventing extreme fluctuations.

The external environment for the yuan appears generally favorable due to expected weakness in the US dollar amid continued Fed rate cuts and differing global central bank policies. However, uncertainties remain, particularly linked to the US economic recovery and fiscal policy. The PBOC intends to actively manage market expectations to avoid self-reinforcing trends in the foreign exchange market and supports moderate yuan appreciation under current conditions.

Resolving financial risks remains a key focus, with the PBOC setting measures to control financing platform debt, small financial institutions, and financial markets. It plans to establish a liquidity provision mechanism for non-bank institutions during systemic stress scenarios, addressing limitations in current liquidity support frameworks which primarily target commercial banks. This proactive approach aims to prevent systemic crises despite no recent major liquidity events in non-bank sectors.