China in January 2026: the most important developments in economy
China's economy in January 2026 was marked by the international expansion of Chinese companies. BYD became the top-selling car brand in Singapore, Chery planned to use Jaguar Land Rover plants in the UK, and a Chinese sportswear maker was set to become the largest shareholder in Puma. On January 20 Sony agreed to hand control of its Bravia television business to a joint venture majority-owned by TCL. General Motors said it would move Buick Envision production from China to the United States, and Porsche reported that its 2025 deliveries fell 10%, with China at a four-year low.
Relations with Japan were the second main theme. On January 6 China tightened export controls on dual-use items to Japan, and the next day opened an anti-dumping investigation into dichlorosilane, a chipmaking chemical. By January 9 China had begun restricting rare earth exports to Japan, which demanded that the controls be lifted. The G7 agreed to speed up efforts to reduce reliance on China for rare earths.
Trade with the United States and its partners shifted repeatedly. Washington conditionally approved sales of Nvidia's H200 chips to China, but Beijing blocked their import. Canada and China agreed on January 16 to cut tariffs on electric vehicles and canola, and President Trump then threatened 100% tariffs on Canadian goods. The European Union and China agreed on minimum prices for electric vehicles. Chinese data showed a record trade surplus of $1.2 trillion for 2025, and the IMF raised its 2026 growth forecast for China to 4.5%.
Technology and science rounded out the month. China announced a goal of a trillion-yuan AI industry within two years, the AI firm Zhipu listed in Hong Kong, and new chips and humanoid robot platforms were unveiled. Researchers set a world record with a 35.6-tesla superconducting magnet.
by WorldBrief & Maksim Micheliov | AI-generated summary
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