China

China Daily | English | News | Dec. 12, 2025 | UndeterminedEconomic Growth

The World Bank has raised its economic growth forecast for China in 2025 by 0.4 percentage points, reflecting a more optimistic outlook for the world's second-largest economy. This revision is attributed to supportive fiscal and monetary policies that have bolstered domestic consumption and investment.

Exports have also been sustained by demand from developing countries, contributing to the positive growth expectations. The World Bank emphasizes that China's future growth will increasingly rely on domestic demand rather than external factors.

Mara Warwick, division director for China, Mongolia, and Korea at the World Bank, highlighted the importance of short-term fiscal stimulus alongside structural reforms, particularly in the social protection system. She also called for a more predictable business environment to enhance confidence and support resilient, sustainable economic growth.

Yicai Global | English | News | Dec. 12, 2025 | UndeterminedSupply Chain Issues

Nine major Chinese solar-grade polysilicon producers, including Tongwei Group and GCL Group Holdings, have formed a joint venture called Guanghe Qiancheng Technology with registered capital of CNY3 billion (USD425 million) to address overcapacity and stabilize prices. The venture, based in Beijing, also includes an entity fully owned by the China Photovoltaic Industry Association (CPIA). Tongwei and GCL own nearly half of the equity, with stakes of 30.35 percent and 16.79 percent respectively.

Solar polysilicon prices peaked in August 2022 but then plummeted by nearly 90 percent by July 2025 due to a surge in production capacity, resulting in a severe price war. After the JV announcement, spot prices recovered approximately 50 percent from their multi-year low, reaching CNY52,000 (USD7,362) per ton as of December 8. The joint venture aims to promote cooperation among photovoltaic companies, facilitate technology upgrades, expand markets, and rationalize costs and production capacity to end destructive competition.

The JV’s legal representative is Hou Yicong, founder of Chunquan Capital, who brings experience from ShineWing Certified Public Accountants, IDG Capital, and JD Capital. Other equity holders include East Hope, Daqo Energy, Xinte Energy, and Asia Silicon Qinghai, each owning between 7.79 percent and 11.3 percent, with smaller stakes held by three additional companies and the CPIA subsidiary. The industry is actively seeking orderly capacity reduction to stabilize supply and demand.

Xinhua | English | News | Dec. 12, 2025 | Geopolitical Conflict and Disputes

A spokesperson for China's State Council Taiwan Affairs Office condemned Taiwan's Democratic Progressive Party (DPP) for challenging the one-China principle and distorting historical and international legal interpretations. The spokesperson accused the DPP of using the San Francisco Peace Treaty, which China considers invalid, to promote a secessionist narrative and mislead the public.

The spokesperson emphasized that multiple international legal documents, including the Cairo Declaration and the Potsdam Proclamation, affirm China's sovereignty over Taiwan. The shift from the Republic of China to the People's Republic of China represented a change in government, not a change in China's legal status, maintaining Taiwan's status as part of China.

China also reiterated its position that the San Francisco Peace Treaty, drafted without China's involvement, holds no authority over Taiwan's status or China's territorial rights. China has consistently refused to recognize the treaty from the beginning.