Key Takeaways
- China's Widening Economic Imbalances: Preliminary data for 2025 from China's foreign exchange regulator shows a massive $734.9 billion preliminary current account surplus alongside a $760.2 billion preliminary capital and financial account deficit. This highlights a significant outflow of capital, even as the country's trade surplus remains robust.
- France's Nuclear Future: The French Finance Ministry has confirmed that work is underway to extend the operational lifetime of its 56-reactor nuclear fleet beyond 60 years. This long-term energy strategy will necessitate substantial investment from the state-owned power company EDF (EDF).
- Russia-Cuba Alliance: In a move signaling strengthening ties, Russian Deputy Foreign Minister Sergei Ryabkov announced that Russia will provide Cuba with material assistance. This comes as Cuba faces significant economic challenges.
- EDF's Financial Trajectory: Despite the significant investments required for the nuclear fleet's lifetime extension, advisors at the French Finance Ministry have stated that EDF's financial trajectory is considered "fine" within the context of low electricity market prices.
China's Economic Picture: Surpluses and Deficits
Recent data released by China's State Administration of Foreign Exchange (SAFE) paints a complex picture of the nation's economy. For the full year of 2025, a preliminary current account surplus of $734.9 billion was reported. This surplus is largely driven by trade in goods.
However, this is contrasted by a preliminary capital and financial account deficit of $760.2 billion for the same period. This indicates that a substantial amount of capital is flowing out of the country.
A similar trend was observed in the fourth quarter of 2025, with a preliminary current account surplus of $242.1 billion and a corresponding preliminary capital and financial account deficit of $242.1 billion. These figures suggest persistent pressure on capital flows.
France Bets on Nuclear Longevity
In a significant move for its energy sector, France is proceeding with the second phase of extending the lifespan of its extensive nuclear fleet. Advisors to the French Finance Ministry have confirmed that plans are in motion to keep the country's 56 nuclear reactors operational beyond 60 years.
This ambitious project will demand considerable "study, design and significant investment" by the state-controlled energy giant Electricité de France (EDF) (EDF). Despite the hefty price tag, ministry officials have expressed confidence in EDF's financial stability, even amidst a low electricity price environment.
Geopolitical Shifts: Russia's Support for Cuba
On the international stage, Russia has pledged its support for Cuba. According to the state news agency TASS, Russian Deputy Foreign Minister Sergei Ryabkov confirmed that Russia will provide material assistance to Cuba. This development underscores the ongoing strategic relationship between the two nations.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.