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The Peoples Bank of China vowed to guide borrowing costs to continue hovering at a low level, according to a Wednesday statement following its fourth-quarter monetary policy committee meeting. The bank repeated a pledge to step up cross-cyclical policies, a phrase suggesting it aims to look beyond short-term volatility and avoid excessive stimulus that could create structural imbalances.
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Under the latest projections approved by the cabinet on Wednesday, the government expects Japan's economy to expand 1.1% in the current fiscal year, up from 0.7% growth estimated in August due to the smaller-than-expected hit from U.S. tariffs.
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Forecasters said Southern California could see its wettest Christmas in years and warned about flash flooding and mudslides. Areas scorched by January's wildfires were under evacuation warnings, and Los Angeles County officials said Tuesday they were going door to door to about 380 especially vulnerable homes to order residents to evacuate.
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China is still limiting rare earth element supplies needed by the United States for permanent magnet manufacturing. This is happening even after a trade deal was reached in October. While China has increased deliveries of finished magnets, the US industry struggles to obtain the raw materials. This situation highlights ongoing tensions between the two nations.
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China is offering new incentives to attract foreign investment. The country has added over 200 industries to its encouragement list. These include advanced manufacturing, modern services, and green technology. Incentives like tax breaks and preferential land use will be available. This policy aims to counter a decline in overseas capital. The new rules take effect in February 2026.
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