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18 Jan 2026, 13:11
China tech stocks defy weak economy to outperform international competition
China’s tech stocks are ripping higher while the rest of the world tries to figure out what’s happening. Been a year since DeepSeek dropped its shock AI model, China is flying into 2026 with a fresh round of tech milestones and a market that doesn’t care how weak the economy looks. A Nasdaq-style index of local Chinese tech stocks has jumped nearly 13% just this month. A second gauge tracking Hong Kong-listed Chinese tech firms is up 6%. Both are leaving the Nasdaq 100 behind. And this is happening while the economy is stuck. Housing is still a disaster, and consumers aren’t spending. AI stocks jump as investors bet on Chinese-made breakthroughs The real fireworks started last January when DeepSeek released its low-cost AI model. It worked just as well as its Western peers and cost way less. That one launch rattled global markets and lit a fire under China’s entire tech ecosystem. Since then, local firms haven’t looked back. Giants like Tencent and Alibaba quickly embraced generative AI. Others raced to develop their own versions. Now it’s everywhere. Chinese AI firms aren’t just building chatbots. They’re embedding large language models into machines, tools, even flying cars. Some robots have run marathons, boxed in demo fights, and danced in folk shows. In factories, AI is showing up inside precision machine tools and next-gen equipment. Investors are no longer seeing China as just a cheap labor hub. It’s now looking like a serious rival to US tech. That shift is visible in the numbers. Jefferies tracks 33 Chinese AI stocks. Their market value has exploded by $732 billion in the past year. And Jefferies thinks that number could grow much more because Chinese AI companies still make up just 6.5% of the market cap of their U.S. counterparts. Public listings are heating up too. A bunch of new AI-related IPOs have seen huge gains. That’s encouraging more firms to go public. Companies in the queue include Xpeng’s flying-car division , rocket maker LandSpace Technology, and BrainCo, a firm being called a possible rival to Neuralink. Tech valuations stretch as Beijing tries to slow speculation Of course, not everyone’s thrilled. Some stocks look way too expensive. Cambricon Technologies , an AI chip company competing with Nvidia, is trading at around 120 times forward earnings. A separate index tracking Chinese robotics is trading at 40 times forward earnings, higher than the Nasdaq 100, which sits around 25. Regulators are watching. Beijing just tightened margin financing rules, a clear signal that they’re worried about speculation getting out of hand. Most of the heat is in the tech sector. The message is simple: they don’t want a bubble. Still, some investors are holding their ground. They point to low labor costs, strong central planning, and government backing as reasons to stay long on China’s tech. Outside of tech, things are bleak. New economic data expected Monday will likely confirm that investment is shrinking, and consumer spending is weak, even as exports remain strong. Economists in a Bloomberg poll predict fourth-quarter GDP growth of 4.5%, the worst since China reopened after the Covid lockdowns. For the full year, growth is expected to come in at 5%, hitting Beijing’s official target. But that number hides the truth. Once you strip out price changes, nominal growth could be just 4%, dragged down by deflation. That would be the slowest pace in half a century, except for 2020. Economist Raymond Yeung at Australia & New Zealand Banking Group said last week that the negative GDP deflator means supply is far outpacing demand. “A negative GDP deflator suggests excess aggregate supply in the economy,” he said in a research note. If you're reading this, you’re already ahead. Stay there with our newsletter .
18 Jan 2026, 12:30
Bitcoin Nears $100K, Ordinals Boom, and More — Week in Review
Bitcoin Nears $100K, Ordinals Boom, RLUSD at LMAX, Institutional Crypto Shift, and more in this Week in Review. Week in Review Bitcoin pushed above $97,000 on Jan. 14 as a Supreme Court tariff delay and Fed–Trump tensions helped spark a rally, Bitcoin ordinals surpassed 100 million inscriptions even as inscription hype cools, Ripple locked RLUSD
18 Jan 2026, 11:58
Internet Computer (ICP) Pulls Back After 30% Weekly Rally as Profit-Taking Intensifies
Internet Computer (ICP) is pulling back after a high-velocity rally, underscoring how sharp surges in altcoins often invite rapid profit-taking. The token fell roughly 3%, contrasting sharply with its 30% gain over the past week and signaling that near-term momentum has cooled. This analysis is powered by Outset PR , a crypto PR firm built on data, which helps Web3 projects make the most of every moment. A Strong Weekly Rally Driven by Inflation Reduction Proposal ICP’s impressive weekly surge was fueled largely by DFINITY’s “Mission 70” whitepaper, which proposes reducing token inflation by 70% by the end of 2026. The prospect of significantly lower issuance sparked bullish sentiment and renewed interest in ICP’s long-term tokenomics. This policy-driven catalyst attracted momentum traders, contributing to the rapid upside move and lifting ICP to a 39% monthly gain. Profit-Taking Follows Parabolic Moves However, such strong rallies often trigger equally sharp reversals as traders secure profits. The speed of ICP’s rise created ideal conditions for short-term participants to exit positions, especially as market-wide liquidity began to soften. The token faced natural resistance near the $4.80 Fibonacci swing high—an area that historically acts as a profit-taking zone during extended moves. Once ICP approached this level, selling pressure intensified, accelerating the pullback. PR with C-Level Clarity: Outset PR’s Proprietary Techniques Deliver Tangible Results If PR has ever felt like trying to navigate a foggy road without headlights, Outset PR brings clarity with data. It builds strategies based on both retrospective and real-time metrics, which helps to obtain results with a long-lasting effect. Outset PR replaces vague promises with concrete plans tied to perfect publication timing, narratives that emphasize the product-market fit, and performance-based media selection. Clients gain a forward-looking perspective: how their story will unfold, where it will land, and what impact it may create. While most crypto PR agencies rely on standardized packages and mass-blast outreach, Outset PR takes a tailored approach. Each campaign is calibrated to match the client’s specific goals, budget, and growth stage. This is PR with a personal touch, where strategy feels handcrafted and every client gets a solution that fits. Outset PR’s secret weapon is its exclusive traffic acquisition tech and internal media analytics. Proprietary Tech That Powers Performance One of Outset PR’s most impactful tools is its in-house user acquisition system. It fuses organic editorial placements with SEO and lead-generation tactics, enabling clients to appear in high-discovery surfaces and drive multiples more traffic than through conventional PR alone. Case in point: Crypto exchange ChangeNOW experienced a sustained 40% boost in reach after Outset PR amplified a well-polished organic coverage with a massive Google Discover campaign, powered by its proprietary content distribution engine. Drive More Traffic with Outset PR’s In-house Tech Outset PR Notices Media Trends Ahead of the Crowd Outset PR obtains unique knowledge through its in-house analytical desk which gives it a competitive edge. The team regularly provides valuable insights into the performance of crypto media outlets based on the criteria like: domain activity month-on-month visibility shifts audience geography source of traffic By consistently publishing analytical reports, identifying performance trends, and raising the standards of media targeting across the industry, Outset PR unlocks a previously untapped niche in crypto PR, which poses it as a trendsetter in this field. Case in point: The careful selection of media outlets has helped Outset PR increase user engagement for Step App in the US and UK markets. Outset PR Engineers Visibility That Fits the Market One of the biggest pain points in Web3 PR is the disconnect between effort and outcome: generic messaging, no product-market alignment, and media hits that generate visibility but leave business impact undefined. Outset PR addresses this by offering customized solutions. Every campaign begins with a thorough research and follows a clearly mapped path from spend to the result. It's data-backed and insight-driven with just the right level of boutique care. ICP Price Outlook ICP’s 3% drop represents a natural cooling phase following an outsized rally. With sentiment elevated, liquidity thinning, and RSI signaling exhaustion, the pullback appears to be a standard corrective move rather than a shift in long-term narrative. The key question now is whether buyers return on dips or whether momentum fades further as traders reassess the sustainability of recent gains. For now, ICP’s fundamental catalyst remains intact, but near-term volatility is likely as the market digests its rapid ascent. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
18 Jan 2026, 11:49
Beijing to crack down on Chinese tech firms using price wars to gain market share
Xi Jinping wants China’s tech companies to stop tearing each other apart with endless price cuts. Platforms keep slashing costs to beat each other, and now regulators are getting involved. Beijing doesn’t want another year of businesses throwing subsidies at users just to win market share. The government is under pressure to stop this, especially with deflation hanging over the economy and prices falling for more than three years straight. The main watchdog, SAMR, is picking off companies one by one. First, it went after food delivery services. Then this week, it announced an investigation into China’s biggest travel booking site, Ctrip. Ctrip joins food delivery groups under investigation Ctrip is now under official investigation, which SAMR made public on Wednesday, saying that it came right after earlier probes into Meituan and Alibaba’s delivery businesses. Regulators are trying to stop what’s being called “involution;” basically, when companies go all-in on cutting prices and launching discounts just to stay relevant, without any real long-term plan. It’s a problem across China, from tech to electric cars to solar panels. Trip.com, Ctrip’s parent company listed in Hong Kong, dropped over 20% in the past week. Ctrip put out a statement saying it’ll cooperate with the probe and that its operations are still running like normal. SAMR’s new energy isn’t coming out of nowhere. For years after the 2021 tech crackdown, enforcement slowed down. Companies had room to breathe. But now, things are ramping up again . Experts say SAMR feels more confident now, but it’s still understaffed. So instead of launching complex cases, it’s calling in execs for warnings and asking the State Council (China’s top government body) to support its efforts publicly. Price war in food delivery pushes regulators to act The food delivery space is where this really exploded. Last year, Alibaba and JD.com started crowding into Meituan’s territory. Everyone started throwing money at discounts; cheap burgers, free drinks, whatever it took. Platforms bled money. Restaurants had to slash prices too. Regulators called in the platforms for a meeting in July and told them to chill. But the battle didn’t stop. Subsidies kept flowing all summer. One executive said it’s tough to end the fight unless the government starts handing out real fines. But officials are nervous. These companies hire millions of workers and feed thousands of restaurants, so they’re treading lightly during a weak job market. Chelsey Tam at Morningstar said the big discounts seem to be slowing down now, but it took too long. And that lag showed how bad the relationship between tech and the regulators has gotten. Tensions are high. Last month, things got physical. SAMR staff showed up at PDD Group’s Shanghai office. They were there to gather info on pricing and how suppliers were being treated. According to local media, a fight broke out between employees and regulators during the inspection. One source allegedly said SAMR saw PDD’s behavior as arrogant. That kind of reaction could lead to even harsher action later. So far, no fine’s been announced. But if PDD keeps acting like this, it’s probably next in line. The smartest crypto minds already read our newsletter. Want in? Join them .
18 Jan 2026, 11:23
Talks planned as South Korea moves to avert U.S. tariffs on Samsung, SK Hynix
South Korea says it’s not going to sit quietly while Donald Trump slaps a 25% tariff on imported artificial intelligence chips. On Sunday, a presidential spokesperson said the government will push for favorable terms and talk directly with the U.S. to protect its chipmakers. The focus is Samsung Electronics and SK Hynix, two of the biggest memory chip exporters in the world. Trump’s proclamation might not hit them immediately, but no one in Seoul is taking chances. The official reminded reporters that last year, South Korea and the U.S. published a joint fact sheet. It said South Korea would not face worse tariff treatment than other chipmaking countries. That agreement is now under pressure. The new tariff order only covers some types of advanced chips, for now, but things could escalate fast. Trump order hits AI chips first, but more tariffs could follow South Korea’s Trade Minister Yeo Han-koo said on Saturday that Trump’s new tariff plan mainly targets high-end artificial intelligence chips, not memory chips. “While the government remains cautious at an early stage, the first-phase measures announced so far focus on advanced chips made by Nvidia and AMD,” he said . He pointed out that the memory chips South Korea usually exports are not included in this first phase, so the impact is “expected to be limited.” But Yeo made it clear the government is not relaxed about the situation. “It is not yet time to be reassured,” he said, noting that no one knows how wide the next phase could be. He added that the government will keep working with local companies to secure the best possible deal for South Korea. Trump signed the new tariff proclamation on Wednesday, claiming it’s about national security. It puts a 25% duty on AI chips like Nvidia’s H200 and AMD’s MI325X. The White House said the scope is “narrow,” and the tariffs won’t apply to chips imported for U.S. data centers, public sector uses, consumer electronics, startups, or civil industrial applications that don’t involve data centers. Still, the fact sheet makes it clear that wider tariffs are on the table. The U.S. could expand this to include more types of chips and related products to push more domestic production. Basically, if chipmakers don’t build factories in the U.S., they could get taxed hard. U.S. Commerce Secretary Howard Lutnick said that South Korean and Taiwanese chipmakers who aren’t investing in the U.S. could face tariffs as high as 100%. “If you want to sell in America, you should build in America,” he said at the groundbreaking of Micron’s new plant in New York. The new rules come after a nine-month investigation under Section 232 of the Trade Expansion Act of 1962. The investigation targeted advanced chips that meet certain performance levels and the gear built around them. Claim your free seat in an exclusive crypto trading community - limited to 1,000 members.
18 Jan 2026, 10:53
China throttles rare-earth supply chain as bilateral tensions with Japan escalate
China exported 6,745 tons of rare-earth products in December, a drop from 6,958 tons in November, based on customs data released Sunday. The biggest chunk of the exports are rare-earth magnets, which have played a key role in past trade fights. China’s Ministry of Commerce had recently said it’s adding controls on shipments that could be used in military applications, with Japan clearly in mind. These two frenemies have been in a beef ever since Japan’s new prime minister Takaichi Sanae made comments about Xi Jinping’s very publicized plans for Taiwan, saying that she will come to the aid of the island nation should Beijing move forward with those plans. China Daily said Beijing is also thinking about tightening up license rules for shipping these critical rare earth materials to Japan. U.S. and allies hold meeting to reduce dependence The export numbers don’t show where the materials went or what types were shipped. That kind of breakdown is supposed to come out Tuesday. But even without details, governments are already reacting. China said back in October that these export restrictions will apply worldwide now, not just to specific countries. This is why the U.S. invited the G7 finance ministers, plus reps from Australia, India, South Korea, and the EU, to meet in Washington on Monday. The meeting was led by Treasury Secretary Scott Bessent, and the focus was on how to stop depending so much on China for rare earths. They talked about setting price floors to help other countries start their own rare-earth projects and build new partnerships to get supplies from different places. An official at the meeting said, “Urgency is the theme of the day. It’s a very big undertaking. There’s a lot of different angles, a lot of different countries involved, and we need to move faster.” Tensions grow over military use and economic pressure Right now, foreign companies need to get a license from China if they want to ship out rare earths or related tech. That system is now being used to slow things down or block exports to certain places, especially in defense and advanced tech sectors in countries like Japan, Europe, and the U.S. Jon Lang, who runs economic security policy at APCO in Washington, said the U.S. push to cut down on rare-earth reliance was “an easy sell” because of what he called China’s broad economic coercion. He also said the G7 is more united now than before. Lang added, “The meeting could also be seen as a show of support for Japan, as it had been an early victim of China using rare earths as a tool of trade coercion since 2010.” Not surprisingly, The Global Times, which is a Chinese state-owned tabloid, called the G7 talks a sign of America’s strategic anxiety. They said the West’s goal of beating China on rare-earth supply just won’t happen because of the way global demand and production look right now. Still, it’s obvious China is watching other countries invest more in new mining and processing centers. Nobody wants to rely on one country forever. Since the October announcement, there’s been a serious push around the world to build new supply chains for these critical materials. Get seen where it counts. Advertise in Cryptopolitan Research and reach crypto’s sharpest investors and builders.
