The shockwave followed an unusually blunt advisory from Beijing, which urged Chinese citizens to avoid travel to Japan after Prime Minister Fumio Kishida suggested Tokyo could intervene militarily if China attacked Taiwan. The message landed loudly in a market where outbound tourism often mirrors political mood swings and where consumer sentiment can flip almost instantly. 

Airlines moved fast. Within hours of Beijing’s advisory, major Chinese carriers rolled out full refunds and no-penalty itinerary changes for Japan-bound tickets, clearing the way for cancellations at scale. Reports also suggest some state-owned enterprises told staff to suspend personal travel applications to Japan, adding another layer of caution even without a formal nationwide directive.  

Taken together, the China–Japan travel spat signals more than a brief wobble – at least in the near term. It’s not unprecedented: during the 2012 Senkaku/Diaoyu Islands flare-up, Chinese tourism to Japan plunged before rebounding once tensions eased. The same pattern could play out again. But for now, the advisory, the rapid airline response and the SOE-level caution all point to a chill that, while likely temporary, is very much real. 

Chinese travellers normally account for roughly a quarter of Japan’s inbound tourism and punch well above their weight in per-capita spending. Tokyo felt that loss immediately. Local media reported sudden drops in hotel occupancy forecasts for late 2025 and early 2026, as operators braced for a winter without their most valuable customer base. 

But the implications stretch well beyond Japan’s tourism trade. The scale and speed of cancellations signals tourism as a new lever for Beijing to pull when China’s neighbours don’t play ball. Discouraging leisure travel is a low-cost, high-visibility way to broadcast displeasure without touching trade. 

The question now is whether this freeze becomes structural. If the advisory stays in place – or if rhetoric around Taiwan hardens further – Japan’s most dependable inbound engine could remain stalled well into 2026. And for both sides, a once-routine flow of tourists has become another proxy battleground in an increasingly brittle regional relationship. 

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The index, widely viewed as a barometer of China’s economic health, has climbed nearly 19% since January. Daily trading volumes have exceeded RMB 2 trillion (USD $280 billion) for more than a month, roughly double last year’s average, showing that ordinary investors, and big institutions are wetting their feet in market waters once more.  

Fuelling the surge is a wave of optimism in what’s often called China’s ‘new economy’ sectors: Semiconductors, AI, and computing stocks. Expectations that the government’s fiscal support and tech reform will keep liquidity flowing and innovation on track has also helped. Analysts say the rally is being driven by genuine earnings momentum rather than speculative trading, even as margin financing climbs to RMB 2.45 trillion (USD $343 billion). 

And it’s not just China that’s feeling confident. Global investors are taking note. Morgan Stanley reports U.S. investor interest in China has reached a five-year high, while Goldman Sachs projects a 30% gain in Chinese equities by 2027, citing the strength of the country’s innovation-led growth model. 

There’s talk afoot of a slow bull market – one experiencing a steady climb rather than short-term exuberance. With China’s recently announced 15th Five-Year Plan laying out the groundwork for a more self-reliant economy, and one that supports growth in tech sectors, it looks like the slow bull could be a good call.  

After several years of slow growth and economic doubt, stock running at this new high is no doubt good news for China. The country’s markets appear to be finding their stride again. They may not pump as they did in the days of mass concrete pouring and mega-scale manufacturing, but the era of AI and computer-chip growth looks set to be one with a lot less risk. 

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If the 14^th Plan (2021–2025) was about high-quality growth, this, the 15^th, is about strategic endurance. Beijing’s priorities fall into three pillars: technological self-reliance, household consumption, and system security. Taken together, they mark a clear pivot from chasing speed to building stability.

The top priority is technology. Semiconductors, AI, robotics and quantum computing are now national security assets, not just commercial sectors. Beijing wants ‘major breakthroughs’ in hard tech to reduce its exposure to western export controls. The tone is existential. Technology leadership is now being framed as survival.

Alongside that is a commitment to domestic spending. Party officials have promised to raise household consumption as a share of GDP – a metric currently stuck at around 40%, far below western levels. The logic behind the policy is blunt: without stronger household demand, China can’t sustain that much-touted 4–5% growth. Expect targeted welfare reform, wage support and city-level consumption drives to follow.

The third pillar, security and resilience, threads through everything. Economic planning and national security are being folded into one document. The aim is to build what planners call ‘a modern industrial system’ that can absorb external shocks, from chip bans to shipping disruptions.

For brands and investors, this new plan signals a more defensive China – one that prizes reliability over flashy growth data. Domestic manufacturing and consumption will sit at the heart of policy, while politically risky sectors may see tighter scrutiny. Essentially, expect a strengthened high-tech manufacturing industry and drives to boost consumer spending, but don’t be surprised to see government eyes watching sectors that could be deemed sensitive or unstable.

In short: the next five years will be less about the breakneck expansion we’ve known China for of late, and more about insulation. The country’s growth model is evolving from engine to shock absorber: slower, steadier, and more self-contained. But that doesn’t mean China’s dropping its ambition to shape the next era of the global economy.

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The Shanghai reforms are wide in scope, encompassing everything from healthcare to imported artworks – the latter of which will see deposit requirements stripped. The broadest changes are happening by district, or free-trade zone, with each region focusing on a different area of business. In total, it will add eight districts and five national-level development zones to six districts that were piloted in August.   

It’s a lot to get your head around, but here’s what it means on the ground: finance sees big changes. Short-term international lending of RMB will be made easier, and multinational cash pools will see better integration of local and foreign currency. To snare the best talent from abroad, recognition will be given to a host of foreign professional qualifications and special cases will be granted longer durations of stay on their visas.  

Private hospitals will now be able to have entirely foreign ownership, and qualifying overseas legal practices will be allowed to apply for financial licences. It will be easier for performance agencies representing foreign talent to set up shows in the city. Had enough yet? We’ll wrap it up after this: Scientists will be incentivised by profit-sharing schemes, and the sending of research and financial data will be streamlined. Full details of the changes can be found in Chinese here.

There’s much to be said about this. Last month Dior was fined for improper transfer of data. Much of what happened was the result of unclear guidelines on what they could and couldn’t do. No doubt their lawyers will be picking over the fine print on the data-sending changes. This kind of reform reminds us that Shanghai still wants to be the shopfront of China: cosmopolitan, ambitious and confident. The question now is whether openness on paper can translate into opportunity on the ground. 

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The K Visa’s critics weren’t angry about price though – a K Visa doesn’t cost any more than other China visas. The concern was around opportunities. With more foreign talent being drawn to the country, they worried their own chances in what’s already a very competitive job market would be diminished.  

Recent laxing in Chinese visa requirements have generally been aimed at boosting tourism. But the K Visa aims to attract talent from top global universities and offers perks like flexible entry and extended stays without the need for a local employer sponsor – an approach similar to Western talent visas. 

To a generation of Chinese people increasingly disillusioned with the 996 lifestyle – a work routine of 9am to 9pm, 6 days a week – and the heavy demands of Chinese society, it didn’t go down well. Netizens took to Weibo saying things like ‘China does not need foreign undergraduates.’ And calling to ‘Resolutely resist the blind implementation of the #k visa,’ adding ‘We need to fully consider the national strategic needs and the employment needs of a large number of undergraduate graduates in China.’  

Government officials took to state media to defend the visa and calm the uproar. Foreign Ministry spokesman Guo Jiakun said the K visa is intended ‘To promote exchanges and cooperation between young science and technology talents from China and other countries.’ Other media outlets stated the visa wasn’t going to risk Chinese jobs.  

The political backdrop to this is that China is seeking to attract foreign talent, as the U.S. rejects it under Trump’s recent executive actions. China struggles to attract foreign professionals as easily as the U.S. because of wider cultural and linguistic divides. Easing STEM-related visa requirements might be a step in the direction of bridging that gap, but it risks upsetting people who already feel hard done by. 

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The news is especially scandalous because Shi is not only under investigation for “misappropriating and embezzling project funds and the temple’s assets”, but also for violating Buddhist precepts by maintaining “improper relationships with multiple women over time” and allegedly having at least one “illegitimate” child.

The statement triggered heated discussion online, with many netizens saying that “the wishes we made in temples came true for the monks”. Others turned to memes, such as a clip from the 1997 wuxia TV series Demi-Gods and Semi-Devils based on the novel of the same name. In the clip, one of the antagonists, Jiu Mozhi, accuses a fictional version of the Shaolin Temple of sheltering corruption. Many netizens are calling the scene prescient.

• #少林寺住持释永信被查 Shaolin abbot Shi Yongxin under investigation: 800 million views on Weibo, ranking number 1 on the Hot Search list
• #少林寺住持释永信被查 Shaolin abbot Shi Yongxin under investigation: 9.39 million views on Rednote, ranking number 1 on the Hot Topic list

Often called the “CEO” monk, Shi has been behind many of Shaolin’s business ventures and licensing deals since he was put in charge of the temple and its brand in 1999. Almost exactly 10 years ago, a public letter sent under a pseudonym accused Shi of embezzling temple funds and having sexual relations with women, breaking monastic celibacy. However, it was rejected by monks and the temple. In this latest development, Shi has been defrocked by the Buddhist Association of China.

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Almost 7 years in the making, following its announcement in 2018, the Hainan Free Trade Port will finally close its customs across the island. Its status will become “within the border but outside the customs” (境内关外). There will be two “lines” in Hainan: the first line, between Hainan and the rest of the world, will be open, while the second line, between Hainan and the rest of China, will be closed. Most people and goods will remain the same in and out of the island, with no new documents needed for travellers.

• #海南自由贸易港封关12月18日启动 Hainan Free Trade Port customs closure starts on 18 December: 34.11 million views on Weibo, ranking number 2 on the Hot Search list
• #封关后去海南无需额外办证件 No need for extra documents to visit Hainan after customs closure: 11.02 million views on Weibo, ranking number 3 on the Hot Search list

After the customs closure, 74% of goods will be tariff-free, up from the current 21%. Products that are manufactured or assembled on the island and have over 30% of value added to imported materials can be sold to the rest of China without tariffs. Duty-free shopping will remain in place for visitors to meet diverse shopping needs. Residents of Hainan will also have the opportunity to buy duty-free imported goods. Hainan is working to become a global duty-free shopping centre, boosting tourism as well as trade.

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Emirates entered China with freight flights from Dubai to Shanghai in 2002, before introducing passenger flights to Shanghai, Beijing and Guangzhou in 2004, 2006 and 2008, respectively. Its waypoints remained limited to these three cities until expanding rapidly to the two new cities this month.

The choice of new Emirates waypoints at Hangzhou and Shenzhen reflects both China’s outbound travel boom and Dubai’s efforts to establish itself as a tech-centric business hub. Shenzhen is home to many of China’s tech and innovation enterprises, and Hangzhou, the home of Alibaba, also hosts a range of innovative businesses. According to Emirates, business travellers are one of the main drivers for the new routes. But Hangzhou, with its long history and beautiful sights such as the West Lake, is also a tourist destination in its own right.

Emirates’ financial report showed that in FY2024-2025, it earned a record-breaking 34.9 billion USD, with pre-tax profit reaching 5.8 billion USD, making it one of the most profitable airlines in the world. The new waypoints are also a result of the new Freedoms of the Air talks between China and the UAE. With the increasing business cooperation between China and the Gulf countries, and mutual interest in tourism, Chinese airlines such as China Eastern are also expanding their presence in the Middle East.

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Netizens, however, are less than impressed. Many note that the low marriage rate is not caused by the lack of registration points. Some joked that if the strategy is to rely on “impulse buy” to boost marriages, then they might as well try outside universities or move it online so you can register for marriage like internet banking.

• #多地音乐节可在现场领证结婚 You can register for marriage at music festivals at multiple places in China: 28.66 million views on Weibo, ranking number 9 on the Hot Search list

The change came after China eased its marriage registration process in May. The simplified paperwork eliminated the need for the household registration book (户口本) and removed the requirement to return to one party’s household registration location. The added flexibility means couples can now get married anywhere civil affairs teams are present. China is scrambling to rally marriage and birth rates, with data from the national Ministry of Civil Affairs showing that only 6.11 million couples got married in 2024, a 20% drop from the previous year. Whether the “Vegas-esque” registration push will help still needs to be monitored.

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However, the article was mainly focused on two themes: “mystery” packets of trading cards which have been immensely popular among children, and the “blind box fever” that swept across a range of sectors, from food and beverage to beauty, stationery, books and other merchandise. It highlights the opaque nature of “blind boxes” and their “over-marketing”. The op-ed also calls for transparency, such as the probability of getting each model, especially the rare ones.

However, many of us still remember how People’s Daily panned POP MART for its blind box food collaboration, which resulted in “irrational consumption” and food waste in 2022. The regulation introduced the following year caused the near collapse of the blind box market. POP MART has since tried to diversify its business and is moving towards becoming an “IP” company rather than a blind box maker.

It seems the warning in the op-ed is attempting to cool down the trend of brands in China riding the wave of LABUBU by marketing their products through blind boxes, while calling for the regulation of the market. Although it does not take aim at high-profile toymakers such as POP MART, it might still have an effect by association, similar to how video games experienced a “winter” a few years ago. Many might even choose to halt and monitor the market before investing in POP MART or similar brands as a result.

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