Overall Highlights

• China is expanding its trade-in subsidy program to include smart glasses, indicating a focus on technology and consumer electronics.
• US concerns about national security are heightened due to potential compromises in technology deals with China, particularly in the semiconductor sector.
• China’s manufacturing activity has shown signs of recovery, which contrasts with US apprehensions about economic competition and security risks.
• Military tensions around Taiwan remain a significant point of contention, with both sides conducting drills and expressing concerns over each other’s actions.
• Regional dynamics in Asia are shifting, with Japan-China relations becoming increasingly complex amid US-China tensions.

United States Perspective (United States Sources)

• China’s addition of smart glasses to its trade-in subsidy program reflects its commitment to technological advancement.
• Concerns are raised in the US regarding a deal involving semiconductor technology that could compromise national security.
• Recent reports indicate that China’s factory activity has returned to growth after a significant contraction, which could impact US economic interests.
• The US is closely monitoring China’s military drills around Taiwan, viewing them as provocative and a threat to regional stability.
• There is a growing concern in the US about the implications of China’s economic recovery for its own manufacturing and technological leadership.

China Perspective (China Sources)

• China’s leadership is focusing on technological investments, with ByteDance planning to invest heavily in Nvidia chips to meet rising AI demand.
• Chinese President Xi Jinping’s New Year greetings with Putin signal a strengthening of ties between China and Russia amidst US tensions.
• China emphasizes the need for new engagement strategies with the US to stabilize bilateral relations, highlighting a willingness to communicate despite tensions.
• China’s military drills around Taiwan are framed as necessary for national security, with the government asserting its sovereignty over the region.
• The Chinese narrative suggests that US policies are increasingly isolating it diplomatically, as seen in the context of the Quad meeting in Beijing.

Sources

This summary is based on 20 articles from the following sources:

1. [en-US] China Adds Smart Glasses to Trade-In Subsidy Program - Yicai Global (12/31/2025)
2. [en-US] China factory activity returns to growth after record contraction - Financial Times (12/31/2025)
3. [en-US] Trumps’ chips to China deal compromises national security | GUEST COMMENTARY - Baltimore Sun (12/31/2025)
4. [en-US] Three key takeaways of PLA’s ‘Justice Mission 2025’ drills around Taiwan - chinadailyasia.com (12/31/2025)
5. [en-US] Dangerous new equilibrium awaits Japan-China ties in 2026 - The Japan Times (12/31/2025)
6. [en-US] Taiwan stays on high alert as Chinese ships pull back after massive drills - Reuters (12/31/2025)
7. [en-US] South Korea’s Lee to Meet Xi in China as Japan Tensions Simmer - Bloomberg.com (12/31/2025)
8. [en-US] China manufacturing activity expands for the first time since March, beating expectations - CNBC (12/31/2025)
9. [en-US] UK calls for restraint over China’s military drills around Taiwan - Red Lake Nation News (12/31/2025)
10. [en-US] China Coast Guard releases map of law enforcement patrol around Taiwan island - CCTV.com English (12/31/2025)
11. [en-US] Presidents Xi, Putin exchange New Year greetings - news.cgtn.com (12/31/2025)
12. [en-US] Exclusive | ByteDance to pour US$14 billion into Nvidia chips in 2026 as AI demand surges - South China Morning Post (12/31/2025)
13. [en-US] ‘No fixed identity’: new Chinese-American writers are telling their own stories - South China Morning Post (12/30/2025)
14. [en-US] US envoy hosts Quad meeting in Beijing as PLA’s drills around Taiwan continue - South China Morning Post (12/30/2025)
15. [en-US] US to impose new tax on overseas remittances - newsus.cgtn.com (12/30/2025)
16. [en-US] Oil tankers still arriving in Venezuela despite US blockade, data shows - South China Morning Post (12/30/2025)
17. [en-US] ‘Ocean’s Eleven’-style thieves take up to US$100 million from German bank - South China Morning Post (12/30/2025)
18. [en-US] Opinion | If Trump wants a deal with China, he must rein in US allies in Asia - South China Morning Post (12/30/2025)
19. [en-US] China’s Shenzhen targets AI in ‘every household’ as US tech rivalry heats up - South China Morning Post (12/30/2025)
20. [en-US] China and US need new ways to engage for stable ties: Wang Yi - South China Morning Post (12/30/2025)