China

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

On January 3, 2026, Venezuelan President Nicolas Maduro and his wife were forcibly taken to New York in a U.S. military raid involving over 150 aircraft and drones. This operation, conducted without congressional approval, resulted in significant casualties and was accompanied by an indictment against them for narco-terrorism and conspiracy charges. The action was widely condemned internationally, with China, France, Mexico, and Russia criticizing it as a violation of international law and the UN Charter, which protects the sovereignty of states. The U.S. motivation behind this move is seen as a strategic effort to gain control over Venezuela’s vast oil reserves.

Venezuela holds the world’s largest proven crude oil reserves, estimated at 303 billion barrels, yet its oil production has sharply declined to around 1 million barrels per day due to U.S. sanctions, mismanagement, and infrastructure decay. Although there were some economic improvements linked to eased sanctions, increased U.S. pressure has exacerbated Venezuela’s economic fragility. China's role has grown as it became Venezuela’s main crude oil buyer, receiving 68% of exports by 2023 through loan-for-oil deals, while the U.S. imports dropped to 23%. Both nations view Venezuela's resources as critical to their global influence, with China following international laws and the U.S. using unilateral sanctions and military interventions.

China has maintained economic ties with Venezuela as a key "all-weather" ally since the 2000s, providing credit lines and securing oil shipments crucial for its economy. Beijing opposes U.S. military actions, viewing them as imperialistic violations of sovereignty. Conversely, the U.S. seeks to reassert dominance in Latin America under a new national security strategy, framing its intervention against Maduro as necessary to combat drug trafficking and terrorism. The U.S. emphasis on regime change contrasts with China’s approach of partnership and economic cooperation rather than direct intervention.

Following the raid, the Trump administration aims to encourage U.S. oil companies to invest heavily in restoring Venezuela's oil infrastructure to stabilize energy markets and benefit American business interests. However, this approach risks undermining regional peace and stability necessary for investment, prompting strong condemnation from China and many Global South nations who support sovereignty, multilateralism, and international law. Venezuela remains a focal point in the global contest between U.S.-led unipolarity and China's push for a multipolar world order based on respect for sovereignty and cooperation.

上交所深夜火速出手！两科创板公司被监管警示

STCN | Local Language | News | Jan. 9, 2026 | Regulatory Enforcement Actions

On January 7, the Shanghai Stock Exchange issued regulatory warnings to two STAR Market companies, YahuiLong and Yingjixin, due to inaccurate and incomplete disclosures related to their brain-computer interface (BCI) businesses. YahuiLong disclosed a framework agreement with Shenzhen Brain-Machine Starlink Technology Co., Ltd. regarding cooperation in product R&D and equity investment, but the Exchange found inconsistencies in the technical routes described and inadequate risk disclosure. Yingjixin’s vague investor platform responses about its brain-computer interface chip, IPA1299, also led to regulatory warnings; the chip is still in early market cultivation with uncertain future sales. Both companies issued supplementary announcements to clarify risks.

The Shanghai Stock Exchange emphasized that BCI is a market hotspot drawing significant regulatory attention and requires especially careful, accurate disclosure to avoid misleading investors. Prior to issuing warnings, the Exchange had used inquiry letters and regulatory work letters to press the companies for fuller disclosure. YahuiLong’s share price rose 6.52% on January 6 with a significant volume increase, while Yingjixin’s initial statements on the SSE E-Interaction platform inaccurately portrayed the product’s sales scale and technical status.

In addition to YahuiLong and Yingjixin, three other STAR Market companies—Weisi Medical, Xiangyu Medical, and Mailande—issued risk reminders after experiencing consecutive trading-day limit-ups tied to their involvement in BCI. These companies, primarily engaged in rehabilitation medical devices, clarified that their BCI activities are in R&D or early commercialization stages, use non-invasive technical routes, and currently have minimal impact on financial performance. Their announcements drew attention to differences from internationally mainstream invasive BCI technologies.

On January 7 evening, three further companies—Xinghuan Technology, Bibete, and Puran Co., Ltd.—were identified as having abnormal stock trading fluctuations due to rapid price increases over three days. Xinghuan Technology and Bibete, STAR Growth tier companies, highlighted risks including ongoing unprofitability and commercialization challenges in biopharmaceutical development. Puran Co., Ltd., a semiconductor memory chip company, noted that its stock price gains were not supported by corresponding operating performance improvements, warning investors of associated risks.

Peoples Daily | English | News | Jan. 9, 2026 | UndeterminedTech Development/Adoption

In 2025, China's digital economy advanced rapidly, driven by the widespread integration of artificial intelligence (AI) and other digital technologies. The DeepSeek large language model, launched in early 2025, quickly gained over 22 million active users within three weeks of its DeepSeek-R1 update and remained cost-efficient while becoming a leading global AI model. Hundreds of domestically developed AI models were integrated into various sectors, with one in three Chinese internet users utilizing them. Network infrastructure also expanded notably, with 4.83 million 5G base stations by November 2025, an increase of nearly 580,000 from the previous year.

Digital industrialization and digital transformation deeply influenced China’s economic structure. Robotics experienced rapid breakthroughs, and high-tech manufacturing output rose 9.2% year-on-year through November 2025. More than 7,000 advanced smart factories were established, with the intelligent manufacturing sector valued at over 4.5 trillion yuan ($642.5 billion). AI integration into the real economy led to continuous emergence of smart products and services, further accelerating industrial modernization.

Public digital services improved accessibility and convenience in 2025. For example, Chengdu launched a digital two-way referral platform connecting health centers and hospitals, enhancing patient appointment management and cross-provincial medical billing, with over 600 million settlements processed. More than 1.2 billion people used electronic medical insurance codes, and telemedicine reached every city and county. Additionally, all 5A-level tourist attractions nationwide completed digital transformations utilizing digital twin and virtual reality technology to enhance visitor experience.

China also promoted global digital cooperation through initiatives like the SOHO Cloud Silk Road e-commerce platform, launched in March 2025. This platform connected nearly 30 Central Asian buyers with over 500 suppliers in Jiangsu Province, enabling rapid growth in cross-border trade, which surged more than 220% year-on-year in the first half of 2025. The Silk Road e-commerce cooperation now involves 36 partner countries, with extensive networks of national pavilions and procurement bases established to foster international digital economic collaboration.