SelfStaking

The Chinese yuan continues to appreciate, with the exchange rate against the US dollar rising to 6.97 on January 5th, reaching a new high in over two years. Influenced by factors such as trade surpluses, Chinese authorities have maintained a restrained stance on the currency's appreciation. In 2025, the yuan briefly broke through the 7 yuan mark and rose again to 6.9770 yuan.

# Translation
In 2025, three Chinese enterprises have entered the top 20 global semiconductor manufacturing equipment manufacturers, triple the number in 2022. Some observers believe that China has increased the localization rate of semiconductor equipment, which was once a weak point, to 20%-30%. Although the United States restricts equipment exports to China and China cannot develop and produce advanced semiconductors, it has begun to build an independent supply chain. Despite gaps in technological capabilities, if this trend continues, it will pose a threat to Japan and the United States.
Nikkei (Chinese Edition: Nikkei Chinese Network) analyzed sales of semiconductor-related equipment compiled by Japanese research firm GlobalNet, comparing 2022—before comprehensive export controls on advanced semiconductor equipment to China took effect—with 2025 (forecast values).
Naura Technology Group (NAURA) has jumped to fifth place, approaching the Netherlands' ASML Holdings and the United States' Applied Materials

Yangtze Memory Technologies has emerged in the NAND storage field, with sales share exceeding 10% globally for the first time. Its technological level is close to Samsung Electronics, with decreasing production costs. The market share is expected to continue growing, impacting the competition among Japanese, American, and Korean manufacturers.

In 2025, Japan's imported car sales are expected to increase by 7%, reaching 243,129 units, with pure electric vehicle sales growing by 26%, setting a new record. Tesla and BYD performed notably in the Japanese market, with Tesla's sales exceeding 10,000 units for the first time, and BYD's sales increasing by 62%.

Dai Nippon Printing (DNP) has developed a new technology to produce 1.4-nanometer semiconductors with one-tenth of the power consumption, with plans for mass production in 2027. This technology could reduce the manufacturing costs of AI semiconductors and break the market monopoly of Dutch company ASML.

China is gradually increasing its power generation capacity in the field of artificial intelligence research and development. By 2025, it is expected to add 470 gigawatts of power generation capacity, seven times that of the United States, further widening the gap with the U.S. Low-cost electricity will become an important advantage for China in the US-China AI competition.

The "global strategic models" in the global supply chain are disappearing. Tesla has stopped developing low-cost models, reflecting an increasing trend of industry "fragmentation," and automakers are forced to reconstruct their business models. Tesla's "Model 2" project has been canceled, and the company will continue to optimize the "Model Y" in the future.

By 2025, China's car sales are expected to lead the world for the first time, surpassing Japan with approximately 27 million units, becoming the top car exporter. Countries may strengthen protective measures to counter Chinese companies' competition.

Jim Rogers stated that China has the potential to become the next hegemonic power and recommended accelerating market opening. Meanwhile, he pointed out that Japan's high debt levels will lead to long-term economic recession.

GAC Group plans to officially enter the Japanese market in summer 2026, launching the pure electric vehicle brand "AION," with a target of 2,000 orders by 2027. Initially, they will sell the compact car AION UT and SUV AION V, targeting corporate clients and enhancing competitiveness in Japan's EV market.

In the second year of the Trump administration, Japanese companies donated as much as 10 billion yen to the U.S. to celebrate the 250th anniversary of American independence. Although the rationale was questioned, companies still felt strong pressure and had to compromise.

In regions outside Tokyo, Japan, the prices of newly built residential buildings have risen significantly, with average housing prices exceeding 10 times the local annual income, making it difficult for ordinary salaried families to buy homes. The national price-to-income ratio is 10.38 times, indicating that single-income families find it hard to afford new homes. Experts point out that a more realistic range for house prices is within 5 to 7 times annual income.

The dream of owning a home in the city center of Japan is gradually fading due to rising housing prices and an increase in single-person households. The mayor of Chiyoda Ward in Tokyo warned that ordinary people cannot afford neighborhood housing prices and called for the introduction of resale restrictions. Although some developers have taken measures, there are still no signs of housing prices stabilizing.

The Japanese yen continues to depreciate amid narrowing interest rate differentials, overturning traditional consensus. Although the Bank of Japan is expected to raise interest rates, the USD/JPY exchange rate remains stable around 155 yen, revealing complex and volatile market dynamics.

Iran blocks the Strait of Hormuz, and Japan responds cautiously. The Chief Cabinet Secretary stated that it has not been recognized as a major impact event or a crisis of existence, a concept originating from the 2015 security law.

On January 7th, Trump directed the U.S. government to withdraw from 66 international organizations and treaties, including the United Nations Framework Convention on Climate Change, further indicating America's departure from multilateralism and shifting towards a policy of establishing order through strength.

President Trump’s demand for Greenland has sparked tensions with eight European countries, potentially leading to the disbandment of NATO. Expert Ian Bremer believes that Trump’s actions stem from personal vanity and lack of domestic support. If pressure continues, Europe may turn to cooperate with China.

Toyota has unveiled three ultra-luxury sports cars in "Woven City," a technology validation city in Shizuoka Prefecture, Japan, with plans to launch around 2027. Among them, the "GR GT" will be the first to feature a 4-liter V8 engine, while the hybrid "Prius" introduces a large-displacement engine under environmental regulations, aiming to create a top-tier sports car.

Due to the tense situation in the Middle East and rising crude oil prices, the yen has depreciated further, and the market is no longer actively buying yen. The yen against the US dollar once depreciated to a low of 157.90, with investors expressing concerns about future trade deficits.

The integration of data and artificial intelligence in manufacturing sites is driving a surge in robot development competition. SoftBank's acquisition of ABB's robotics business has prompted collaboration between Yaskawa Electric and Fanuc, helping Japanese companies revive their robotics industry. Masayoshi Son stated that integrating AI with robotics technology will achieve an epoch-making evolution.