Zhonglun New Materials' Indonesia Base Starts Operations! China-EU Reconcile on Electric Vehicle Case! TSMC Profit Surges 35%

International News Highlights:

Material News - Zhonglun New Materials' Indonesia Base Commences Operations, Global Layout Upgraded to 2.0

Automotive News - MOFCOM: Proper Settlement of China-EU Electric Vehicle Case is of Great Positive Significance

Electronics News - TSMC Profit Surges 35%

Packaging News - Shikoku Kasei Holdings Raises Earnings Forecast on Strong Fine Chemicals Performance and Export Growth

Recycling News - Vancouver Apartments to Launch Flexible Plastic Recycling Program

Macro News - U.S. Officially Begins Selling Venezuelan Oil

Below are the details of international news:

Zhonglun New Materials' Indonesia Base Commences Operations, Global Layout Upgraded to 2.0

Zhonglun New Materials' first overseas production base, the Indonesia Changsu High-performance Film Production Base, has officially commenced operations. The commissioning of the Indonesia base marks the first step in the official implementation of "capacity going global" following the company's achievements in "product going global," "brand going global," and "R&D going global." It signifies that Zhonglun New Materials has established a global production network featuring "two domestic fulcrums (Xiamen, Quanzhou) + one overseas hub (Indonesia)." This will strongly boost the company's deeper participation in global competition and significantly enhance its overseas market service capabilities and global brand influence.

Located in the Suryacipta Industrial Park, West Java Province, Indonesia, the Indonesia Changsu Base has a total investment of over RMB 1 billion and a planned annual production capacity of approximately 90,000 tons of functional BOPA films. Once fully operational, it will become the largest functional film production base in Southeast Asia.

MOFCOM: Proper Settlement of China-EU Electric Vehicle Case is of Great Positive Significance

At a regular press conference held by the Ministry of Commerce (MOFCOM) on January 15, spokesperson He Yongqian stated in response to questions regarding the China-EU electric vehicle case that on January 12, 2026, China and the EU simultaneously announced positive results reached through multiple rounds of consultations, which attracted significant attention from all sectors at home and abroad. The industry on both sides has "warmly welcomed and fully endorsed" this outcome, believing that the "soft landing" of the electric vehicle case will significantly boost market confidence and inject new impetus into China-EU automotive trade and investment cooperation. Some EU politicians commented that this is a positive step towards building a sustainable China-EU trade relationship, indicating that resolving trade disputes through partnership remains feasible.

Shikoku Kasei Holdings Raises Earnings Forecast on Strong Fine Chemicals Performance and Export Growth

Shikoku Kasei Holdings Corp., based in Marugame, Japan, announced an upward revision of its consolidated financial performance forecast for fiscal year 2025. The revision is attributed to the strong performance of its fine chemicals segment and growth in export business driven by the depreciation of the yen. The company now expects net sales to increase from the previously projected 70 billion yen to 70.7 billion yen (approximately $445.3 million); profit forecasts have also been raised, with net profit expected to rise from 7 billion yen to 8.3 billion yen, and operating profit projected to climb from 10 billion yen to 10.8 billion yen.

TSMC Profit Surges 35%

On Thursday afternoon, Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest chip foundry, released its Q4 earnings report. The report shows that driven by strong demand for AI chips, TSMC's Q4 profit surged by 35%, exceeding expectations and hitting a new high, marking the eighth consecutive quarter of year-on-year profit growth for the company. TSMC expects capital expenditure for 2026 to range from $52 billion to $56 billion, compared to a total of $40.9 billion in 2025.

Vancouver Apartments to Launch Flexible Plastic Recycling Program

According to Plastmatch on January 15, Recycle B.C., a non-profit organization responsible for residential packaging and paper product recycling in British Columbia, Canada, intends to expand its flexible plastic "pink box" recycling program to apartments and condominiums in Vancouver.

On Friday, September 5, 2025, staff were sorting films and soft plastics at the GFL Environmental recycling facility in Richmond, British Columbia. Sam Baker, Executive Director of Recycle B.C., stated in a press release: "Flexible plastic is a common material in everyday packaging, and improving the convenience of its recycling is crucial for increasing recovery rates."

Starting February 16, pink carts will be placed in Vancouver apartments and condominiums to collect flexible plastics such as plastic bags, wrapping paper, and zipper bags. These carts will function similarly to blue carts, which are used to collect other types of recyclables within buildings.

Overseas Macro Market Information:

Two Ministries: Exempt from Corporate Income Tax and VAT on Bond Interest Income Earned by Overseas Institutions Investing in Domestic Bond Market

From January 1, 2026, to December 31, 2027, bond interest income earned by overseas institutions investing in the domestic bond market will be temporarily exempted from corporate income tax and value-added tax.

SAFE: Banks Settled RMB 2.2446 Trillion in Foreign Exchange in December, Sold RMB 1.5382 Trillion

Data from the State Administration of Foreign Exchange (SAFE) shows that in December 2025, banks settled RMB 2.2446 trillion in foreign exchange and sold RMB 1.5382 trillion. From January to December 2025, banks settled a total of RMB 18.5227 trillion and sold a total of RMB 17.1314 trillion.

SAFE: Continue to Issue QDII Quotas in an Orderly Manner

Xiao Sheng, Director of the Capital Account Management Department of SAFE, stated at a press conference held by the State Council Information Office on January 15 that China will steadily promote high-level institutional opening-up of the capital account in areas such as direct investment, securities investment, and cross-border financing. Next, it will further study and optimize policies related to Qualified Foreign Institutional Investors (QFII) and continue to issue investment quotas for Qualified Domestic Institutional Investors (QDII) in an orderly manner.

PBOC: Overall, About 60% of Import and Export Trade is Less Affected by Exchange Rate Fluctuations

Zou Lan, Spokesperson and Vice Governor of the People's Bank of China (PBOC), stated at a press conference on January 15 that the PBOC has continuously improved policy arrangements for the cross-border use of the RMB, supported financial institutions in enriching and improving exchange rate hedging products, and enhanced the ability of foreign trade enterprises to cope with exchange rate fluctuations, thereby strengthening the resilience of the foreign exchange market.

Approximately 30% of foreign trade enterprises use the RMB for cross-border trade settlement, which can basically avoid the impact of exchange rate fluctuations. The proportion of foreign exchange hedging for settlements still conducted in foreign currencies has also risen to around 30%, allowing enterprises to lock in exchange rate costs in advance and avoid the impact of fluctuations on production and operations. Overall, this means that about 60% of import and export trade is relatively less affected by exchange rate changes. It is expected that this proportion will continue to rise as high-level institutional opening-up deepens and financial services improve.

First in Southeast Asia: Bank Indonesia Joins the Ranks in Supporting Powell

Bank Indonesia has joined several central banks around the world in publicly expressing support for Federal Reserve Chairman Jerome Powell, becoming the first monetary authority in Southeast Asia to do so. Bank Indonesia Governor Perry Warjiyo was listed as a signatory to an online support statement on Thursday, although the bank has not yet responded. Public support for Powell is politically delicate for some central banks.

PBOC: RMB Exchange Rate Expected to Continue Two-Way Fluctuation with Flexibility

Zou Lan stated that overall, the RMB exchange rate is stable. Factors affecting the exchange rate are very diverse, such as economic growth, monetary policy, financial markets, and sudden geopolitical risk events. China has a super-large market and a complete industrial chain, with accelerated integration of technological and industrial innovation, vibrant new growth drivers, and continuously released domestic demand potential. The smooth operation of the dual circulation of domestic and international markets and the long-term positive macroeconomic fundamentals form support for the basic stability of the RMB exchange rate.

However, the external environment remains complex and severe, with uncertainties regarding the magnitude and pace of interest rate adjustments by major economies, and potential continued geopolitical shocks, which may cause certain disturbances to the exchange rate. The RMB exchange rate is expected to continue to fluctuate in both directions and maintain flexibility.

MOFCOM: China's Foreign Trade in 2026 Still Has Many Favorable Conditions

Spokesperson He Yongqian stated that in 2026, the external environment facing China will undergo profound and complex changes, with strategic opportunities coexisting with risks and challenges, and an increase in uncertain and unpredictable factors. However, China's economy has a solid foundation, many advantages, strong resilience, and great potential, and foreign trade development still has many favorable conditions. MOFCOM will conscientiously implement the decisions and arrangements of the Party Central Committee and the State Council, focus on the goals of innovative development and quality improvement, promote the integration of trade and investment, cultivate new foreign trade drivers, and strive to stabilize the basic fundamentals of foreign trade, contributing to a good start for the "15th Five-Year Plan."

Takaichi Demands Withdrawal of "Export Controls on Dual-Use Items to Japan"; China: Firmly Oppose and Will Not Accept!

According to CCTV, in response to Japanese Prime Minister Sanae Takaichi's recent statement that China's strengthened export control measures on dual-use items target only Japan and are inconsistent with international practices, demanding their withdrawal, MOFCOM Spokesperson He Yongqian responded that the root cause of China's relevant measures against Japan lies in the erroneous words and deeds of Prime Minister Takaichi, which Japan is well aware of.

MOFCOM: Share of Mechanical and Electrical Products Exports Exceeded 60% for the First Time in 2025

He Yongqian stated that China's foreign trade grew against the pressure in 2025 with many highlights, fully demonstrating resilience and vitality, and making important contributions to global economic and trade development. Among them, innovation drivers continued to strengthen, with exports of mechanical and electrical products increasing by 9% and accounting for more than 60% of total exports for the first time. The international competitiveness of green and low-carbon products has significantly increased, and new forms of business such as cross-border e-commerce have shown vitality.

PBOC: Cut Interest Rates on Various Structural Monetary Policy Tools by 0.25 Percentage Points

Zou Lan announced that the interest rates on various structural monetary policy tools have been cut by 0.25 percentage points. The one-year interest rate for various relending facilities has been reduced to 1.25%, and interest rates for other maturities have been adjusted simultaneously. Improving structural tools and increasing support will further help optimize the economic structure.

U.S. Officially Begins Selling Venezuelan Oil

On January 14 local time, a U.S. government official revealed that the United States has completed the first batch of Venezuelan oil sales. The transaction is valued at $500 million, and the official added that more oil sales are expected in the coming days and weeks.

Price Information:

RMB/USD Central Parity Rate Rises 56 Pips to 7.0064, the Highest Since May 18, 2023

The RMB/USD central parity rate was set at 7.0064, up 56 pips; the previous trading day's central parity was 7.0120, the previous trading day's official closing price was 6.9734, and the previous night session closed at 6.9739.

Upstream Raw Material USD Market Prices

CFR Northeast Asia: $725/ton; CFR Southeast Asia: $710/ton.

Northeast Asia propylene FOB Korea average to $740/ton; CFR China average to $790/ton.

North Asia refrigerated cargo CIF: propane $558-560/ton; butane $578-580/ton.

China South China refrigerated cargo CIF for early February arrival: propane $599-609/ton; butane $594-604/ton.

Taiwan refrigerated cargo CIF: propane $558-560/ton; butane $578-580/ton.

LLDPE USD Market Prices

Film: $800/ton (CFR Xiamen); Injection: $820/ton (CFR Huangpu).

HDPE USD Market Prices

Film: $890/ton (CFR Huangpu); Injection: $770/ton (CFR Huangpu); Blow molding: $795-840/ton (CFR Huangpu); Pipe: $1000/ton (CFR Huangpu).

LDPE USD Market Prices

Film: $1020/ton (CFR Huangpu); Coating: $1050-1180/ton (CFR Qingdao).

PP USD Market Prices

Injection: $800/ton (CFR Dongguan); Copolymer: $860/ton (CFR Nansha); Film: $960-990/ton (CFR Huangpu); Transparent: $1000/ton (CFR Huangpu); Pipe: $1100/ton (CFR Shanghai).