Despite the yuan appreciating by 5% against the US dollar and 9% against the euro since the beginning of the year, the International Monetary Fund (IMF) and EU countries continue to consider the Chinese currency significantly undervalued. According to the IMF, the yuan’s real effective exchange rate is 17.3–25.3% below its equilibrium level.
The yuan’s appreciation is reducing exporters’ profitability. Estimates indicate that Chinese companies generate $4.9 in net profit for every $100 in revenue, compared with $8.9 for their foreign competitors. According to estimates by French financial group Natixis, profit margins in the solar and wind energy, electric vehicle, battery and semiconductor industries stood at just 2%.
The People’s Bank of China is taking measures to limit further appreciation of the currency. Goldman Sachs forecasts that continued yuan appreciation could weaken export competitiveness and increase pressure on industrial employment.
According to the International Energy Agency (IEA), Spain reduced its natural gas import costs by $26 billion between 2011 and 2024 through the expansion of solar and wind energy.
Over the past 10 years, installed renewable energy capacity has more than doubled, reaching 119 GW, while greenhouse gas emissions have declined by 20%. Renewable energy development has contributed to lower wholesale electricity prices and reduced the country's exposure to fluctuations in global fuel prices.
The IEA recommends that Spain reduce electricity taxes to encourage greater electricity use by industry and households, expand energy storage capacity, and consider extending the operating lives of existing nuclear reactors. Spain had planned to close all five of its nuclear power plants by 2035.
China has adopted a new law on combating cross-border corruption, aimed at strengthening oversight of Chinese companies operating overseas and expanding international cooperation in the investigation of corruption-related offences.
The law requires companies to establish anti-corruption units and appoint responsible personnel according to their level of exposure to corruption risks. It also provides for measures to locate individuals wanted abroad, recover illegally transferred assets and protect trade secrets.
In 2025, China investigated 505 cross-border corruption cases and secured the return of 963 wanted individuals from overseas. By the end of 2025, Chinese investors had established more than 50,000 enterprises across 190 countries.
Growing demand for artificial intelligence (AI) processors is driving investment in advanced semiconductor packaging technologies. These technologies integrate individual chips, including processors and memory components, into a single high-performance module, enabling faster data processing and greater computational efficiency.
Capital expenditure in this segment is projected to reach $28 billion in 2026, while revenue from advanced packaging is expected to exceed that of traditional chip packaging for the first time.
Taiwan's TSMC remains the market leader. Nvidia is investing in the expansion of production capacity at Taiwan-based SPIL. Powertech Technology is investing $400 million in Singapore, with production scheduled to begin in 2028. Meanwhile, AMD has announced plans to invest more than $10 billion in Taiwan's semiconductor industry, including advanced chip packaging.
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