China

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.

Global Times | English | News | Jan. 23, 2026 | Geopolitical Conflict and Disputes

Chinese Ambassador Sun Lei, Chargé d'Affaires a.i. to the UN, stated on January 21, 2026, that Japan is fundamentally unqualified to seek a permanent seat on the UN Security Council. He argued that Japan cannot shoulder the responsibility of maintaining international peace and security nor gain the trust of the global community.

Sun highlighted that the Security Council is central to upholding the postwar international order and that Japan's historical militarism has not been fully addressed. Despite the Tokyo trials punishing Japanese war criminals 80 years ago, right-wing forces in Japan have sought to whitewash wartime atrocities such as the Nanjing Massacre and forced labor, while revising history textbooks and honoring Class-A war criminals at the Yasukuni Shrine.

He also criticized Japanese leaders, including Prime Minister Sanae Takaichi, for provocative remarks on Taiwan, pro-nuclear positions, and efforts to revise security policies, which Sun viewed as a push toward remilitarization that threatens regional and global security.

Sun concluded that a country that denies its wartime crimes, challenges World War II outcomes, and disregards the postwar order cannot be trusted with the responsibilities of a permanent Security Council member. China, as a current permanent member, expressed its willingness to collaborate with peace-loving nations to uphold the postwar order and maintain the Security Council's authority and unity.

China Daily | English | News | Jan. 23, 2026 | UndeterminedBizdev-Partnering

Chinese companies are shifting from a traditional overseas expansion model focused on exporting products and achieving scale to one emphasizing deep localization, digital integration, and service differentiation. This strategic shift aligns with China's growing outbound direct investment, which increased 6.9 percent year-on-year to $158.21 billion in the first 11 months of 2025, with non-financial investments covering 153 countries and regions. The key transformation lies in how Chinese firms operate abroad, moving toward "high-quality globalization" characterized by stronger operational depth, governance, and local integration.

In consumer sectors, experience gained in China's competitive domestic market, especially in digital execution and user engagement, is becoming a competitive advantage overseas. Trip.com Group exemplifies this by prioritizing service differentiation, offering 24-hour customer support in 35 languages with over 20,000 agents worldwide, which has driven triple-digit growth. Granular localization, such as tailoring services to local preferences like smart toilet features for Japanese users, has strengthened user stickiness and market performance.

Chinese brands are also leveraging digital technology to embed themselves into daily life abroad, moving beyond mere exposure to integrating within consumers' cultural contexts through coordinated data, technology, and content strategies. For example, Govee, a smart home brand, effectively used programmatic advertising in the U.S. to boost purchase intent and outperformed social media advertising in conversion rates. Despite these advances, challenges remain in brand recognition, as shown by Beijing Ultrapower Software, which relies heavily on overseas revenue but struggles with global brand awareness, with users often recognizing products without knowing the brand or country of origin.