分类： business

Chinese authorities are implementing a multi-faceted national strategy to address the country’s substantial housing inventory surplus, combining targeted municipal policies with broader market interventions. The initiative comes as data reveals a critical imbalance, with the average inventory clearance period across 100 major cities reaching 27.4 months in November—nearly double the 14-month threshold considered healthy for a balanced market.

The approach features distinct regional variations, with first-tier cities averaging 17.1 months of inventory, second-tier cities at 22.6 months, and third- and fourth-tier markets facing a daunting 40.3-month backlog. Housing Minister Ni Hong emphasized the implementation of city-specific measures to manage new supply while reducing existing stock, particularly through the conversion of commercial properties into affordable housing.

A cornerstone of the strategy involves the innovative use of a 300-billion-yuan ($42.96 billion) relending facility established by the People’s Bank of China to support affordable housing conversions. This financial mechanism, potentially expanded through local government bond allocations, enables the purchase of existing commercial properties for transformation into subsidized housing.

Concurrently, local governments are deploying creative mechanisms including housing “trade-in” programs and voucher systems for urban redevelopment projects. These initiatives facilitate residents’ transition from older properties to new developments while simultaneously reducing inventory overhang.

Market analysts highlight the potential for further policy relaxation in core metropolitan areas. Wang Qing, chief macroeconomic analyst at Golden Credit Rating International, suggested that additional easing of purchase restrictions in Beijing, Shanghai, and Shenzhen could generate significant positive ripple effects across smaller markets.

The long-term vision extends beyond inventory reduction to quality transformation. Minister Ni advocated for constructing “quality homes” with superior design, materials, and maintenance standards, while simultaneously upgrading existing housing stock. Market trends already indicate shifting preferences, with units exceeding 120 square meters comprising 30% of new supply in key cities.

Experts emphasize that stabilizing the property market is crucial for mitigating negative wealth effects on household consumption. Morgan Stanley’s chief China economist Robin Xing noted that restoring confidence in this key asset class would be instrumental in unlocking broader economic spending power.

In a landmark economic agreement reached Thursday, the United States and Taiwan have established a comprehensive trade partnership centered on massive technology investments and reduced tariffs. The deal secures $250 billion in Taiwanese commitments to advance U.S. semiconductor manufacturing and artificial intelligence infrastructure while lowering tariff rates on Taiwanese goods to 15%—aligning with rates applied to other Asia-Pacific partners like Japan and South Korea.

The arrangement, negotiated under the Trump administration’s broader trade rebalancing initiative, represents a strategic economic alignment between the two nations. The U.S. Department of Commerce characterized the agreement as ‘historic,’ emphasizing its potential to catalyze a ‘massive reshoring of America’s semiconductor sector’ through the development of world-class industrial parks.

Taiwanese semiconductor giant TSMC stands at the forefront of this investment surge, announcing parallel plans to increase capital expenditures by nearly 40% this year following a stellar quarterly performance. The chipmaker reported a 35% year-over-year profit increase to $16 billion, with revenue climbing to $33 billion in the October-December period.

While Beijing immediately criticized the agreement as ‘economic plunder,’ Taiwanese officials framed the ‘Taiwan model’ as a vehicle for enhancing global competitiveness and deepening strategic cooperation with the United States. The deal includes targeted exemptions for specific Taiwanese imports such as generic pharmaceuticals and aircraft components, alongside favorable treatment for semiconductor producers investing stateside.

TSMC’s ambitious expansion strategy includes accelerating construction of its Arizona fabrication plants, with total U.S. investments approaching $165 billion. Company leadership expressed confidence in sustained AI-driven demand despite market concerns about potential technology bubbles, noting that AI adoption ‘is starting to grow into our daily life.’

Market analysts reinforce TSMC’s dominant position, highlighting its unparalleled pricing power and robust customer backlog that insulates against short-term demand fluctuations. With a market capitalization of $1.4 trillion, TSMC now ranks as Asia’s most valuable listed company—a testament to its critical role in the global technology ecosystem.

Despite a new round of tariff impositions initiated by former US President Donald Trump in April 2025, China’s trade surplus soared to an unprecedented $1.19 trillion, according to data released by the General Administration of Customs. This remarkable figure represents a significant increase from the $992 billion surplus recorded in 2024. The surge was primarily driven by a 5.5% year-on-year increase in exports, which reached $3.77 trillion, while imports remained stagnant at $2.58 trillion.

However, this record trade performance presents a puzzling discrepancy when examined alongside China’s foreign exchange reserves. Data from the People’s Bank of China revealed that forex reserves grew by only $160 billion throughout 2025, reaching $3.36 trillion by December. This minimal increase means that merely 13% of the massive trade surplus actually flowed into the country’s reserves, continuing a pattern of stability within the $3.01-3.33 trillion range maintained over the past decade.

Financial columnist Dao Ge, based in Beijing, explains several factors contributing to this phenomenon. ‘The $992 billion trade surplus in 2024 wasn’t entirely earned in US dollars,’ Dao notes. ‘A substantial portion was settled in yuan and other currencies, meaning the actual dollar accumulation might have been approximately $200 billion.’ Additional pressures on reserve balances include outbound spending by Chinese tourists and students, profit remittances by foreign companies operating in China, and overseas investments by Chinese state-owned enterprises (SOEs).

Chinese SOEs have increasingly utilized renminbi for purchasing crude oil from heavily sanctioned nations including Venezuela, Iran, and Russia, as well as minerals from various African countries. These nations can then use the currency to acquire Chinese goods or convert it into global currencies through markets like Hong Kong.

The record surplus appears contradictory to the widespread narrative of manufacturing relocation to Southeast Asian countries such as Vietnam, Thailand, and Indonesia, which has reportedly left numerous factory workers unemployed. Some international commentators have raised concerns about potentially inflated export data, alleging that certain companies might be fabricating export records to claim tax rebates illegally.

Notable cases include a Liaoning company that illegally obtained tax rebates worth 212 million yuan ($30 million) through fabricated export transactions, and a Wuhan-based supply-chain firm that created fictitious export records involving over 200 million yuan in offshore cargo value. According to Shanghai Metals Market, approximately 30% of China’s steel exports in 2023 and 2024 involved fake invoice-based exports.

The central government implemented new regulations effective October 1, 2025, to combat these practices, though comprehensive national estimates of their impact on trade statistics remain unavailable.

Wang Jun, Vice Head of the General Administration of Customs, attributes China’s strong trade performance to strategic policy support, robust domestic market demand, and industrial strength. Key drivers include targeted government measures to help exporters secure orders, China’s large consumer base sustaining import demand, and the country’s complete industrial system supporting export growth.

Despite these strengths, Wang acknowledges significant challenges ahead: ‘Global trade momentum is weakening as economic growth slows, geopolitical tensions persist, policy uncertainty remains high, and trade costs continue to rise.’ International organizations have subsequently downgraded their forecasts for global trade growth in 2026.

Nevertheless, China’s exports of high-tech products rose 13.2% year-on-year, contributing 2.4 percentage points to overall export growth. Notably, China became a net exporter of industrial robots for the first time. The country’s growing dominance in robotics was evident at CES 2026 in Las Vegas, where Chinese companies represented 21 of the 38 exhibitors showcasing humanoid robots, demonstrating rapid commercialization of robotics innovation.

A U.S.-based labor rights organization has raised serious allegations regarding working conditions at a Chinese manufacturing facility responsible for producing the globally popular Labubu dolls. China Labor Watch (CLW), a non-governmental organization, claims its investigation revealed concerning labor practices at Shunjia Toys Co Ltd, a Guangdong-based supplier for toy retailer Pop Mart.

According to CLW’s report, researchers conducted 51 in-person interviews with factory employees, uncovering multiple labor violations. The investigation allegedly found evidence of excessive overtime shifts, problematic contract practices including blank or incomplete agreements, and denial of paid leave entitlements. While no child labor was identified, the report notes the factory employed 16-year-old workers without providing the special protections required under Chinese law for minor employees.

The factory in Xinfeng County, described as a core manufacturing facility employing over 4,500 workers, also allegedly lacked adequate safety training and protections for workers. CLW emphasized that as an original equipment manufacturer (OEM), the factory operates under pricing and production schedules set by client companies, making brands directly responsible for conditions in their supply chains.

Pop Mart, the Beijing-based toy company behind the wildly successful Labubu blind box toys, responded to the allegations by stating it is investigating the claims. The company acknowledged receiving the report details and committed to ‘firmly’ requiring corrective actions from suppliers if violations are confirmed. Pop Mart highlighted its existing audit processes, including annual independent third-party reviews conducted by internationally recognized inspectors.

The Labubu phenomenon has generated global excitement with celebrity endorsements from Kim Kardashian and Blackpink’s Lisa contributing to its massive popularity. The current allegations present a significant challenge to the company’s ethical manufacturing claims as it continues its international expansion.