(Yicai) Dec. 31 -- Anti-involution and Nezha are two of the 14 key words and phrases that Yicai has chosen to sum up the biggest shifts in China’s economy and the global landscape over the past 12 months.

Anti-involution

Cracking down on disorderly and cutthroat competition was a central theme of China’s economic work this year. From the Government Work Report in March to the sixth meeting of the Central Financial and Economic Affairs Commission in July, anti-involution was firmly in the spotlight. The campaign has already shown results in sectors such as the platform economy, autos, photovoltaics and power batteries, with prices stabilizing and profits improving across the board.

Debt Resolution

China has been moving fast to defuse local government debt risks, launching a five-year, CNY10 trillion (USD1.4 trillion) program at the end of last year to swap hidden local debt. By the end of 2025, nearly CNY6 trillion had been completed. As a result, outstanding hidden local debt tumbled to CNY10.5 trillion at the end of 2024 from CNY14.3 trillion at the end of 2023, and is projected to fall below CNY8 trillion at the end of this year.

For the debt swaps completed so far, the average borrowing cost has fallen by more than 2.5 percentage points, saving over CNY450 billion (USD64.4 billion) in interest payments. This has freed up financial resources for local governments to focus on development, improving people’s livelihoods, as well as supporting steady growth and structural adjustment.

DeepSeek

Early in the year, artificial intelligence startup DeepSeek sent shockwaves through the global AI developer community. With its open-source approach and extremely high cost-effectiveness, the Hangzhou-based firm’s models rivaled top closed-source systems in areas such as complex reasoning. It challenged the old narrative that “computing power decides everything,” triggering a market reassessment of chip giants such as Nvidia, and driving AI technology to reshape industrial ecosystems at an unprecedented pace.

Embodied AI

This year saw the explosive growth of embodied AI. Ubtech’s annual orders for humanoid robots came to almost CNY1.4 billion (USD200 million), while Unitree Robotics and AgiBot won orders worth hundreds of millions of Chinese yuan, equivalent to tens of millions of US dollars. Nearly 30 robotics industry chain companies filed for listings in Hong Kong. Robot uses went from demos to manufacturing, inspections, and services, marking a crucial leap from “future tech” to “real-world engineering products.”

Fed Rate Cuts

The US Federal Reserve initiated its first interest rate cut in September, and trimmed rates by 75 basis points over the course of the year. With Chair Jerome Powell’s term set to end next May, the Fed’s independence is facing an unprecedented test.

Gold Soars

Gold staged an epic rally. Spot prices in London began the year around USD2,625 per ounce and climbed to as high as USD4,550 per oz., a 70 percent gain, making the precious metal one of the year’s best-performing assets.

Nezha

Chinese fantasy animation Nezha 2 grossed CNY15.4 billion (USD2.2 billion) at the domestic box office, thanks to an audience of 324 million. Global takings exceeded CNY15.9 billion, setting a new overseas record for a Chinese animated film and symbolizing the collective rise of China’s animation and film industries.

Nvidia

US chip giant Nvidia’s market valuation broke past USD5 trillion on Oct. 29, making it the first company in history to reach that milestone. The surge in its share price reflected the ongoing global AI boom. Nvidia expects its Blackwell and Rubin chips to generate more than USD500 billion in revenue across this year and next.

Shanghai Stock Index Hits 4,000

The benchmark Shanghai Composite Index reached its highest level since August 2015 on Oct. 29, closing at over 4,000 points. Trading turnover of Chinese mainland shares topped CNY400 trillion (USD57.2 billion) for the first time, while the market’s total capitalization surpassed the CNY100 trillion-mark, also an all-time high.

Star Market’s New Growth Tier

The Shanghai Stock Exchange’s Nasdaq-style Star Market launched a sci-tech growth tier in June, speeding up the review process for initial public offerings by unprofitable companies. Thirty-eight companies, including Moore Threads, MetaX, and Healthgen Biotechnology, had listed on the sci-tech growth tier as of Dec. 29.

Tariff War

The Trump administration rolled out so-called reciprocal tariffs in April, a unilateral move that has disrupted global supply chains in the short term, undermined the credibility of US trade policy in the long run, and failed to fix what Washington calls trade imbalances. In response, economies around the world have been promoting trade diversification and regional cooperation to boost economic resilience while at the same time continuing to negotiate with the United States. The tariff war is also a key force reshaping the global trade system.

Ultra-long Special Treasury Bonds

China issued CNY1.3 trillion (USD186 billion) of ultra-long special treasury bonds this year, up CNY300 billion from last year. Of this, CNY800 billion was used to support major national strategies and critical security capabilities while CNY500 billion went toward equipment upgrades and consumer goods trade-ins.

Looking ahead to 2026, these ultra-long bonds are expected to evolve from a short- and medium-term measure into a regular policy tool supporting China’s medium and long-term strategies and offering greater flexibility and room for maneuver.

Editor: Kim Taylor