Xi holds his ground as Macron's visit to China only yields modest returns

China has reported its first annual investment decline in 30 years, with economic data for November indicating deepening domestic issues. Retail sales have grown at their slowest pace in three years, and investment has sharply slowed, reflecting increased caution among consumers and businesses. This downturn comes despite a record trade surplus of $1.08 trillion, highlighting a significant gap between exports and imports.

Jimmy Lai, a prominent pro-democracy media mogul in Hong Kong, has been convicted in a high-profile national security trial for lobbying foreign governments to impose sanctions on Hong Kong and China. The trial, which was conducted without a jury, has raised serious concerns regarding judicial independence and media freedom in the region.

German businesses and politicians are increasingly questioning the long-standing policy of unfettered free trade with China, marking a significant shift in sentiment after decades of reliance on Chinese manufacturing. This reconsideration comes as Germany seeks to reassess its economic ties amid rising concerns about China's growing dominance in global markets.

China's economy is experiencing a broad-based deterioration, marked by declines in consumer spending, investment, and real estate activity. Recent reports indicate that the services sector's growth has slowed significantly, with key indices reflecting the lowest levels in months.