Day: December 23, 2025

As Germany’s trade deficit with China nears new high, analysts warn of backlash

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Germany’s trade deficit with China is on track to hit a record high in 2025 amid shrinking demand for German goods – a trend that appears unlikely to be reversed in the short term and which could trigger a protectionist backlash, according to analysts. China, already Germany’s biggest import partner, is set to increase its total exports to Germany by 7.2 per cent, with the value reaching €168 billion (US$197 billion), according to a forecast last week by Germany Trade and Invest (GTAI), an economic development agency. Meanwhile, Germany’s exports…

The second China shock is coming – and the UK’s response is too timid | George Magnus

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Emmanuel Macron came back from China in early December empty-handed. The French president’s appeal to his Chinese counterpart, Xi Jinping, to help stop the war in Ukraine was never going to gain traction given Beijing’s unqualified support for Russia. Urging Xi to address China’s surging trade surplus, the result of the country’s economic and industrial policies, predictably also fell on closed ears. In any event, Xi’s main concerns were the imminent final politburo meeting of the year and the annual Central Economic Work Conference (CEWC) that followed. Centre stage was…

What China’s yuan internationalisation push looks like – and what may hold it back

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The yuan has strengthened in recent months, with the offshore rate hitting its highest level against the US dollar in more than a year, fuelling forecasts that it could reach as high as 6.8 in 2026. The currency’s international profile has also inched upwards as Beijing pushes for wider global use. In this explainer, the Post reviews the yuan’s progress across several fronts, drawing on a recent analysis by Betty Wang, head of North Asia research at Oxford Economics. How far has the yuan advanced internationally? The yuan has seen…

The best of the long read in 2025

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Victor Pelevin made his name in 90s Russia with scathing satires of authoritarianism. But while his literary peers have faced censorship and fled the country, he still sells millions. Has he become a Kremlin apologist? At 18, Mustafa was told his only way out of prison was to join the regime forces. After 14 years, his past as one of Assad’s fighters could get him killed When fossilised remains were discovered in the Djurab desert in 2001, they were hailed as radically rewriting the history of our species. But not…