SelfStaking

In the foreign exchange market, China's currency, the yuan, has experienced appreciation. On January 5, the yuan-to-dollar exchange rate reached the 1 USD to 6.97 yuan range, marking the strongest level for the yuan and weakest for the dollar in 2 years and 8 months. Accumulating trade surpluses and other factors have created pressure to sell dollars and buy yuan. To avoid economic downturn, China's relevant departments have shown a restraining attitude toward yuan appreciation.
Annual trade surplus breaks 1 trillion dollars for the first time
The yuan once appreciated to 1 USD to 6.9870 yuan on December 30, 2025, breaking through the important 7-yuan level, with appreciation intensifying. This is the first time the 7-yuan level has been broken since May 2023. On January 5, 2026, it further appreciated to 1 USD to 6.9770 yuan.
When Chinese-American trade frictions peaked in April 2025, the yuan-to-dollar exchange rate once fell to 1 USD to 7.3518 yuan, marking the weakest level in 17 years and 4 months

By 2025, China will have three companies among the top 20 global semiconductor manufacturing equipment firms, with the domestic production rate expected to increase to 20%~30%. Despite the US implementing export restrictions, China is still building an independent supply chain, which may pose a threat to Japan and the US in the future. North Huachuang Technology Group expects a 21% increase in sales.

China's artificial intelligence (AI) semiconductor enterprises are experiencing rapid growth. Emerging companies like Mthreads are accelerating product development, and the government is strengthening support policies to achieve "self-reliance and self-strengthening." Predictions suggest that China's domestic semiconductor self-sufficiency rate, which stood at only 30% in 2024, will increase to 80% by 2026. The goal is to enhance competitiveness in high-tech fields and counter the United States.
In mid-December 2025, Zhang Jianzhong, chairman and chief executive officer (CEO) of Mthreads, emphasized at a developer conference held in Beijing that the new generation of products has already met the needs of domestic developers, and there will be no need to wait for advanced foreign products in the future.
Zhang Jianzhong, who previously served as vice president of American company NVIDIA, founded Mthreads in 2020. In early December 2025, Mthreads conducted its initial public offering (IPO) on the Shanghai Stock Exchange's STAR Board, with its total market value briefly exceeding 6 trillion yen, marking a major

In 2025, Japan's imported car sales are expected to increase by 7%, reaching 243,129 units, with pure electric vehicle sales growing by 26%, setting a new record. Tesla and BYD performed notably in the Japanese market, with Tesla's sales exceeding 10,000 units for the first time, and BYD's sales increasing by 62%.

SoftBank Group's Vision Fund has increased its total investments to $163.2 billion since its launch in 2017, with pre-tax investment gains of approximately 3.7 trillion yen. Despite challenges, the fund's improved performance has strengthened the group's financial position and promoted investments in the AI sector.

President Trump’s demand for Greenland has sparked tensions with eight European countries, potentially leading to the disbandment of NATO. Expert Ian Bremer believes that Trump’s actions stem from personal vanity and lack of domestic support. If pressure continues, Europe may turn to cooperate with China.

By 2025, China's car sales are expected to lead the world for the first time, surpassing Japan with approximately 27 million units, becoming the top car exporter. Countries may strengthen protective measures to counter Chinese companies' competition.

Yangtze Memory Technologies has emerged in the NAND storage field, with sales share exceeding 10% globally for the first time. Its technological level is close to Samsung Electronics, with decreasing production costs. The market share is expected to continue growing, impacting the competition among Japanese, American, and Korean manufacturers.

China is gradually increasing its power generation capacity in the field of artificial intelligence research and development. By 2025, it is expected to add 470 gigawatts of power generation capacity, seven times that of the United States, further widening the gap with the U.S. Low-cost electricity will become an important advantage for China in the US-China AI competition.

In the 2025 international commodities market, precious metal prices are rising. Silver has surpassed oil prices for the first time, reflecting China's decarbonization and economic deflation risks. A Bank of America Securities report shows that the silver-to-oil price ratio is below 1, with silver reaching a record high while oil prices drop to their lowest in nearly five years.

GAC Group plans to officially enter the Japanese market in summer 2026, launching the pure electric vehicle brand "AION," with a target of 2,000 orders by 2027. Initially, they will sell the compact car AION UT and SUV AION V, targeting corporate clients and enhancing competitiveness in Japan's EV market.

On January 7th, Trump directed the U.S. government to withdraw from 66 international organizations and treaties, including the United Nations Framework Convention on Climate Change, further indicating America's departure from multilateralism and shifting towards a policy of establishing order through strength.

The Japanese yen continues to depreciate amid narrowing interest rate differentials, overturning traditional consensus. Although the Bank of Japan is expected to raise interest rates, the USD/JPY exchange rate remains stable around 155 yen, revealing complex and volatile market dynamics.

The Japanese government will provide technical support for rare earth mining to Malaysia, planning to supply equipment and environmental technology cooperation through ODA projects, aimed at diversifying rare earth procurement channels. This is the first cooperation between the two countries in this field, with experts already dispatched to promote the project and plans to invite Malaysian technicians to Japan for training.

Iran blocks the Strait of Hormuz, and Japan responds cautiously. The Chief Cabinet Secretary stated that it has not been recognized as a major impact event or a crisis of existence, a concept originating from the 2015 security law.

The "global strategic models" in the global supply chain are disappearing. Tesla has stopped developing low-cost models, reflecting an increasing trend of industry "fragmentation," and automakers are forced to reconstruct their business models. Tesla's "Model 2" project has been canceled, and the company will continue to optimize the "Model Y" in the future.

Jim Rogers stated that China has the potential to become the next hegemonic power and recommended accelerating market opening. Meanwhile, he pointed out that Japan's high debt levels will lead to long-term economic recession.

In regions outside Tokyo, Japan, the prices of newly built residential buildings have risen significantly, with average housing prices exceeding 10 times the local annual income, making it difficult for ordinary salaried families to buy homes. The national price-to-income ratio is 10.38 times, indicating that single-income families find it hard to afford new homes. Experts point out that a more realistic range for house prices is within 5 to 7 times annual income.

Dai Nippon Printing (DNP) has developed a new technology to produce 1.4-nanometer semiconductors with one-tenth of the power consumption, with plans for mass production in 2027. This technology could reduce the manufacturing costs of AI semiconductors and break the market monopoly of Dutch company ASML.

The dream of owning a home in the city center of Japan is gradually fading due to rising housing prices and an increase in single-person households. The mayor of Chiyoda Ward in Tokyo warned that ordinary people cannot afford neighborhood housing prices and called for the introduction of resale restrictions. Although some developers have taken measures, there are still no signs of housing prices stabilizing.