Key Takeaways
- China's National Development and Reform Commission (NDRC) has announced a 2026 trade-in program and revised foreign investment catalogue, signaling sustained government efforts to boost domestic demand, modernize industries, and attract foreign capital.
- The scope of China's equipment upgrades is set to continue from 2025, backed by significant ultra-long special treasury bond issuance, targeting sectors like electronic information, agriculture, and new energy, with projected revenue growth of up to 10% for leading enterprises.
- A moderate 5.0 magnitude earthquake occurred 90 km north of Yakutat, Alaska, on December 30, 2025, as reported by the USGS, with no immediate reports of significant damage or disruption.
China is set to continue its aggressive economic stimulus and industrial modernization efforts into 2026, with new policies aimed at boosting domestic consumption and attracting foreign investment. Concurrently, a moderate earthquake struck off the coast of Alaska, as reported by the United States Geological Survey (USGS).
The National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM) have unveiled the 2025 version of the Catalogue of Encouraged Industries for Foreign Investment, which will become effective on February 1, 2026. This revised catalogue is a strategic move to guide foreign capital towards advanced manufacturing, modern services, high-tech sectors, energy conservation, environmental protection, and China's central and western regions. Compared to its 2022 predecessor, the new catalogue features a net increase of 205 items and 303 revisions, offering preferential policies such as tariff exemptions on imported equipment and a reduced 15% corporate income tax rate for listed industries.
Building on existing initiatives, the scope of China's equipment upgrades is slated to continue from 2025, with the government planning a significant increase in the issuance of ultra-long special treasury bonds to support large-scale equipment upgrades and consumer goods trade-in programs. These programs will expand funding support to critical areas including electronic information, production safety, and agriculture facilities. Subsidies are also set to increase for new energy city buses, batteries, agricultural machinery, and home decoration-related consumer goods, reflecting a broader push for green transition and economic growth. An action plan launched in March 2024 has already effectively shored up investment and boosted household consumption. Furthermore, a two-year action plan (2025-2026) aims to accelerate the power equipment industry's growth, targeting an average annual revenue increase of approximately 6% for traditional power equipment and a steady rise for new energy equipment, with leading enterprises expected to achieve around 10% growth.
Regions across China are actively preparing for the 2026 consumer goods trade-in scheme, which will encompass a wide array of products from automobiles and home appliances to digital devices. Cities like Shenzhen are already recruiting service providers to manage the vehicle trade-in process, ensuring end-to-end support for eligibility checks, fund management, and risk control. This follows the success of the 2025 consumer goods trade-in program, which is expected to extend into 2026 due to strong consumer enthusiasm. Additionally, China will lower provisional import tariff rates on 935 products starting January 1, 2026, to enhance the domestic supply of high-quality goods, including advanced materials, green resources, and medical products.
Meanwhile, in North America, a 5.0 magnitude earthquake occurred 90 km north of Yakutat, Alaska, on December 30, 2025, at 10:17:18 UTC. The United States Geological Survey (USGS) reported the quake at a shallow depth of 5.0 km. While described as a strong magnitude 5.0 event by some reports, there were no immediate declarations of significant damage or widespread disruption. The region around Yakutat is recognized for its seismic activity, being an active part of the Pacific Ring of Fire.
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.