Retail sales of passenger cars in China in 2025 increased by 3.9% – the slowest pace in three years, according to the China Passenger Car Association (CPCA). In 2024, sales growth was 5.3%.
Sales of electric vehicles and plug-in hybrids rose 17.6% last year after jumping 40.7% a year earlier. At the same time, annual sales of such vehicles in the country exceeded sales of traditional vehicles for the first time.
Car exports from China rose 19.4% last year to 5.79 million units. Exports of electric vehicles jumped 48.8% to 1.52 million units, the CPCA reported.
Domestic demand for new energy vehicles (NEVs) in China declined after subsidies for buyers were reduced or discontinued in many cities and provinces across the country.
According to the CPCA forecast, car sales in China will remain at 2025 levels in 2026, and the growth rate of electric vehicle exports will slow down.
Some waste-to-energy plants in China are experiencing a shortage of waste to fuel their capacity amid rapid expansion of the sector and changes in household waste management, according to Chinese media reports.
There are more than 1,000 waste-to-energy plants in the country, and by 2022, their combined waste incineration capacity exceeded the volume of household waste collected (333 million tons versus 311 million tons).
Experts attribute the problem not to the fact that “the waste has run out,” but to excess capacity and an imbalance between where the waste is generated and where the facilities are built. In particular, in China, the share of urban household waste processed by incineration increased to 79% in 2024, and the number of waste incineration facilities, according to Dialogue Earth, increased from approximately 104 in 2010 to about 1,000 at present.
The media notes that some companies are expanding the “geography” of waste delivery to support their operations, switching to industrial waste and resorting to so-called landfill mining – the extraction of “old” waste from landfills for further incineration.
At the same time, statements about the possible import of waste to fill capacity are hampered by existing restrictions: the Chinese authorities have previously announced a complete ban on the import of solid waste from January 1, 2021.
Analysts also point to the risk of misguided incentives: discussions about a “waste shortage” may push the market to try to increase waste volumes, but industry experts emphasize that the priority should remain reduction, reuse, and recycling, rather than increasing waste generation to fill furnaces.
China has abolished a 30-year tax exemption on condoms and a range of contraceptives and started imposing a standard VAT of 13% on them from January 1, 2026, media reported. The decision is seen as part of a package of measures to stimulate the birth rate amid a continuing decline in the number of births and an aging population.
Earlier, Chinese authorities also announced the launch of a nationwide childcare subsidy program – the payment amounts to 3,600 yuan a year (about $500) for each child under the age of three.
In addition, the government encouraged universities to introduce “love education” courses – training focused on fostering positive attitudes toward marriage, family and having children.
According to Serbian Economist, China’s CCSC Technology International Holdings Limited has announced that construction of a cable factory and logistics center in the Serbian municipality of Merosina is scheduled to begin in January 2026.
The company had previously expected work to start in November 2025, but has postponed the deadline. The new schedule was announced during the presentation of financial results for the first half of fiscal year 2026, which ended on September 30, 2025.
As noted in the announcement, the project in Merosina is scheduled for completion at the end of 2026. Once completed, the facility is expected to become the company’s logistics and manufacturing hub for its European operations.
The investment has been discussed with local authorities before: it was reported that the Chinese partners’ enterprise in Merosina could provide about 200 jobs.
CCSC specializes in the production of cables, connectors, and cable harnesses, which are used, in particular, in the automotive industry, robotics, and medical equipment.
The Chinese Foreign Ministry announced sanctions against 10 individuals and 20 US defense companies in response to the latest US arms deliveries to Taiwan. This was stated in a statement by the Chinese Foreign Ministry, released on Friday and quoted by Reuters.
The restrictions apply, in particular, to Boeing in St. Louis, as well as a number of other US defense contractors. The sanctions include freezing any assets of companies and individuals in China and prohibiting Chinese legal entities and individuals from doing business with them. In addition, executives on the sanctions list are barred from entering mainland China, as well as Hong Kong and Macau.
Beijing linked the decision to Washington’s approval of a large package of arms supplies to Taiwan worth more than $10 billion, including HIMARS multiple launch rocket systems, artillery, and other types of weapons to strengthen the island’s defenses.
The Chinese authorities have stated that they consider US arms supplies to be interference in the internal affairs of the PRC and a violation of the “one China” principle, promising to continue to take “decisive measures” in response to the arming of Taiwan.
The Experts Club think tank previously compared the military capabilities of China and Taiwan. For more details, see https://www.youtube.com/shorts/kFdxOOC4_Ss
The US will impose tariffs on chip imports from China in connection with Beijing’s “unreasonable” attempts to secure dominance in the semiconductor industry, the administration of US President Donald Trump has announced. The size of the tariffs will be announced at least 30 days before their introduction, which has been postponed until June 2027.
“China’s focus on dominating the semiconductor industry is unreasonable and burdens or restricts US trade, and therefore warrants action,” said US Trade Representative Jamison Greer in a statement.
The US authorities have been investigating Chinese chip imports for unfair trade practices throughout the year and have concluded that China has been engaging in such practices.
Beijing could use its control over the global semiconductor industry to exert economic pressure on other countries, the trade representative’s release said.
In response, the Chinese Foreign Ministry criticized the US for abusing tariffs and suppressing sectors of the Chinese economy.
Ministry spokesman Lin Jian said that the American approach harms not only global supply chains, but also Americans themselves.
“If the US continues to do things its own way, China will resolutely take appropriate measures to protect its legitimate rights and interests,” the Financial Times quoted him as saying.
