China expressed willingness to increase imports from France in exchange for a “fair, conducive environment” for Chinese businesses in Europe, President Xi Jinping said during talks with French President Emmanuel Macron in Beijing on Thursday.

Macron, on the first day of a three-day visit to China—his first in over two years—emphasized the need for a “balanced relationship” while urging Beijing to help end the Russia-Ukraine war.

The French leader welcomed China’s “renewed willingness to facilitate access to the Chinese market for French products, particularly agricultural goods,” citing wine, pork, poultry, and beef. The two countries also agreed to work toward a framework that would encourage Chinese direct investment in Europe, particularly France, with the potential to create new jobs.

During the meeting, Xi called for deeper cooperation in aerospace, nuclear energy, the digital economy, biopharmaceuticals, and artificial intelligence. Several agreements covering energy, agriculture, education, and the environment were signed, according to Chinese state media, though the details of the deals were not disclosed.

Analysts view Macron’s visit as part of Paris’ broader aim to act as a stabilizing influence in EU-China relations. “Good ties with France also ensure that China has friends within the EU when Brussels makes economic and political decisions that impact Chinese interests,” said Daniel Balazs, research fellow at the S. Rajaratnam School of International Studies in Singapore.

Tensions between Beijing and Paris have risen in recent years, particularly after Macron supported EU tariffs on Chinese-made electric vehicles, prompting China to respond with price measures on French cognac. Macron is expected to lobby Beijing to avoid similar restrictions on French pork and dairy products.

The two leaders also discussed global imbalances, including China’s overproduction and export dependence, as France’s trade deficit with China reached nearly 20 billion euros in 2024. Xi affirmed China’s commitment to “continue to play a constructive role in resolving the conflict and support European nations in pushing for a balanced, effective, and sustainable security framework” regarding Ukraine.

After formal meetings in Beijing, Xi and Macron are scheduled to travel to Chengdu, home to China’s giant panda breeding center. Last month, France returned two pandas to China after 13 years, signaling warming diplomatic relations. Xi confirmed that new pandas will be sent to France under a fresh panda protection agreement, emphasizing expanding cultural exchanges between the two nations.

The visit marks a critical opportunity for both countries to strengthen trade ties, advance investment, and address geopolitical challenges in Europe and beyond.

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Costco has become the most prominent public company to challenge President Donald Trump during his second term, filing a lawsuit that accuses the administration of exceeding its emergency authority when imposing wide tariffs. The retailer’s move surprised many in Corporate America, which has largely avoided public clashes with the White House while offering gifts, donations and high-profile CEO visits in pursuit of favorable treatment.

Costco filed its complaint on Friday, arguing it deserves a refund after paying duties the company says were imposed unlawfully. Several other firms, including Bumble Bee Foods, EssilorLuxottica, Revlon and Kawasaki Motors, have brought similar cases, but none match Costco’s scale or visibility.

Major corporations have shown far less willingness to confront Trump than they did in his first term, when executives openly criticized the president and some resigned from his business council after he downplayed neo-Nazi violence in Charlottesville, Virginia. The shift reflects several factors. Trump has often retaliated against companies that fall out of favor. Many businesses have benefited from his light regulatory approach, especially in the fast-growing AI sector, and some firms have seen him soften policies once they earned his approval.

Tariffs, however, have emerged as a clearer point of tension. Polls show Americans increasingly oppose new duties, linking them to higher prices. A recent CBS News survey found only 38 percent support additional tariffs, compared with 62 percent who oppose. Costco risks little backlash by targeting a policy that has become broadly unpopular.

In its filing, the company criticized “the pell-mell manner by which these on-again/off-again” tariffs were “threatened, modified, suspended, and re-imposed, with the markets gyrating in response.” Although Costco did not disclose its total tariff payments, it asked for a full refund. The Supreme Court appears poised to void most of Trump’s tariffs, and Justice Amy Coney Barrett recently warned the refund process could be “a mess.” Costco’s lawsuit signals an effort to move ahead of a likely surge of claims if the court rules against the administration.

Costco may also be more comfortable taking a stand than peers. The company maintained its diversity, equity and inclusion programs while many firms retreated under pressure from Trump and conservative media. Its focus on value has also strengthened customer loyalty during a period of elevated prices.

Challenging Trump’s tariffs can carry risks. Amazon faced public criticism from the White House for evaluating whether to show tariff-related price increases to shoppers. Walmart was threatened after saying it would raise prices. Apple announced plans to shift iPhone production to India after tariffs that Trump said would cost the company nearly one trillion dollars a quarter, only to see the threat dropped after CEO Tim Cook met Trump in the Oval Office and unveiled a plaque with a 24K gold base along with a pledge to invest an additional $100 billion in the United States.

With a Supreme Court decision looming and public support for tariffs fading, analysts say Costco’s suit could spur more companies to follow. Trade lawyer Timothy Brightbill expects others to join, while Ed Mills of Raymond James believes some firms may still hesitate. “My guess is the more business you have before the federal government, the less likely you are to sue,” Mills said.

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China’s property market is showing deeper signs of stress as the downturn extends into a fifth year, with falling prices and swelling inventory putting more pressure on developers and homebuyers.

New figures from China Real Estate Information Corp showed that sales among the top 100 developers tumbled 36 percent in November from a year earlier, a slight improvement from a 42 percent drop in October but still signaling severe weakness. For the first 11 months of the year, sales were down 19 percent from the same period in the previous year.

Goldman Sachs chief China economist Hui Shan called the trend “real and concerning,” adding in a note that the probability of fresh housing stimulus had increased.

Secondary home prices are also sliding. The China Index Academy reported that resale prices across 100 major cities fell 7.95 percent in November, a deeper decline than the previous month, driven by high listing volumes and subdued buyer confidence. Morgan Stanley estimated that sales for 25 key developers dropped 42 percent year on year, with sluggishness expected to continue into next spring.

Daiwa Capital Markets analyst William Wu said Beijing’s goal to “halt the declines in housing market” now looks “increasingly unrealistic,” citing “renewed turmoil” late in the year, accelerating price drops and “resurfacing of high-profile defaults.”

Fresh concerns emerged after China Vanke asked bondholders to approve a one year delay on an onshore bond maturing on December 15. Vanke has long been viewed as one of the country’s more stable developers, supported by major shareholder Shenzhen Metro. That support came into focus in early November when Shenzhen said it would seek collateral for roughly 20 billion yuan in previously unsecured loans, sending Vanke’s bond prices to record lows.

Cathy Lu, a credit analyst at Octus, said the shift “reflects a liquidity crisis that will likely end in a comprehensive restructuring,” although she does not expect a broad wave of similar extensions or defaults.

Rating agency S&P Global downgraded Vanke’s long term issue credit ratings to “CCC-” last week, warning of a potential “distressed restructuring” within six months. Several of the company’s yuan bonds fell more than 20 percent on Tuesday, triggering trading suspensions in Shenzhen.

Beijing has tried to stabilize the market, including a 300 billion yuan initiative last year to help state owned enterprises buy completed but unsold homes. Yet excess inventory remains a major hurdle. S&P Global estimated that unsold completed units reached about 762 million square meters by the end of August 2025, up from 753 million square meters at the end of 2024.

Analysts at the Economist Intelligence Unit said that if authorities effectively limit land supply to developers and reduce inventory, home prices could bottom out as early as the first half of 2027. The inventory turnover cycle has shortened by five months since its April 2025 peak but still needs about 18 more months to return to historically healthier levels.

Economists expect incremental policy easing ahead as officials try to prevent a deeper downturn. Falling prices and declining sales have strained developers’ cash flow, leading banks to place more foreclosed homes on the market. Goldman’s Shan warned that this creates a “negative feedback loop” that policymakers need to break.

Morgan Stanley said Beijing may consider an “interest rate subsidy” to lower mortgage costs without harming banks, which could help steady prices and “buy time for a gradual demand led recovery.” The bank estimated that reducing mortgage costs by 1 percentage point in the second quarter of 2026 could lift new home sales and ease deflationary pressures, with higher tier cities likely to see prices find a floor first.

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• Hong Kong Fire Probe Leads to Manslaughter Arrests as Death Toll Climbs

Hong Kong police arrested 13 people on Monday on suspicion of manslaughter as investigators probe the city’s deadliest blaze in decades, a disaster that has claimed at least 151 lives and left more than 40 people unaccounted for.

Authorities continued to comb through the seven charred towers of the Wang Fuk Court housing estate, where residents were trapped in stairwells and on rooftops as they attempted to escape Wednesday’s inferno. Police official Tsang Shuk yin, visibly emotional, said, “Some of the bodies have turned into ash, therefore we might not be able to locate all missing individuals.”

Early findings have placed a spotlight on construction practices at the site. Tests on samples of green mesh wrapped around bamboo scaffolding failed to meet fire retardant standards, officials said. Chief Secretary Eric Chan accused contractors of using substandard materials in hard to reach areas to evade inspectors. Foam insulation used during renovations further intensified the flames, and fire alarms did not function properly, according to authorities.

The tragedy has prompted widespread mourning. Thousands of people, including relatives of at least nine domestic helpers from Indonesia and one from the Philippines, lined a canal near the complex to pay respects. Vigils are planned this week in Tokyo, London and Taipei.

Public frustration has grown alongside grief. Residents had warned officials last year about potential fire hazards tied to renovation works, including the flammability of the mesh. Beijing has meanwhile cautioned against any “anti China” demonstrations, signaling concern that anger over the disaster could fuel broader dissent.

One person involved in a petition calling for an independent inquiry and a review of construction oversight was detained for around two days, according to individuals familiar with the matter. Police have not commented. At a press conference, Security Chief Chris Tang said, “I’ve noticed that some people with malicious intent, aiming to harm Hong Kong and national security, have taken advantage of this painful moment for society. Therefore, we must take appropriate action, including enforcement measures.”

Search efforts have now shifted to the worst affected buildings, where recovery operations may take weeks. Images released by police show officers in protective gear navigating rooms with scorched walls, collapsed debris and ankle deep water left by firefighting crews.

More than 4,000 people lived in the apartment blocks, census data shows. Over 1,100 residents moved from evacuation centers into temporary housing, with another 680 placed in youth hostels or hotels. Authorities are providing HK$10,000 to each household for emergency needs and are helping survivors replace identity cards, passports and marriage certificates.

The blaze marks Hong Kong’s deadliest fire since 1948, when 176 people were killed in a warehouse inferno. The disaster comes days before legislative elections and has intensified scrutiny of construction oversight and government response.

On Saturday, police detained 24 year old Miles Kwan, a member of the petition group seeking an independent probe, though it remains unclear whether he was formally arrested. Two others have also been taken into custody on suspicion of seditious intent, according to the South China Morning Post. China’s national security office issued a warning over the weekend: “We sternly warn the anti China disruptors who attempt to ‘disrupt Hong Kong through disaster’. No matter what methods you use, you will certainly be held accountable and strictly punished.”

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Baidu is positioning itself as a major player in China’s artificial intelligence chip market, aiming to fill a gap left by Nvidia’s restricted access and Huawei’s reduced presence. The company, best known as China’s top search engine, has shifted its focus in recent years to AI and driverless cars, including its majority-owned chip subsidiary Kunlunxin.

Analysts have recently upgraded Baidu’s stock, citing Kunlunxin’s potential to secure more domestic orders. This month, Baidu unveiled a five-year plan for its AI chips, starting with the M100 in 2026 and the M300 in 2027. The company already deploys a combination of its own chips and Nvidia products in its data centers to power ERNIE AI models.

Baidu monetizes its chips by selling to third-party data center builders and renting computing capacity via its cloud platform. Its strategy emphasizes a “full stack” AI offering, integrating chips, servers, data centers, AI models, and applications. The Kunlun chip unit has already won orders from China Mobile, a major telecom provider.

“Kunlunxin has emerged as a leading domestic AI chip developer, focusing on high-performance AI chips for large language model training, cloud computing, and telecom workloads,” Deutsche Bank analysts said in a note.

With Nvidia blocked from exporting top-end GPUs to China and Huawei’s chip dominance diminished, Baidu appears set to capture significant market share. JPMorgan analysts forecast domestic AI compute demand will continue to rise, predicting Kunlun chip sales could increase six-fold to 8 billion yuan ($1.1 billion) in 2026. Macquarie analysts estimate the unit could be worth around $28 billion.

Baidu’s push comes amid broader chip shortages affecting Chinese tech firms. Alibaba CEO Eddie Wu said supply bottlenecks could persist for two to three years, while Tencent noted limited chip availability is slowing its capital expenditure despite strong AI demand.

Nick Patience, AI practice lead at The Futurum Group, said Baidu’s strategy represents both a necessity and an opportunity. “If Baidu can ship competitive Kunlun generations on time, it doesn’t just solve its own supply problem — it becomes a strategic supplier to the rest of China’s AI industry,” he said.

As demand for AI continues to surge, Baidu’s Kunlun chips could become a critical foundation for China’s domestic AI ecosystem, reducing reliance on foreign technology while meeting a fast-growing market need.

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