IMF BLAMES BEIJING FOR GLOBAL "EXTERNAL IMBALANCES"
The International Monetary Fund's executive directors have warned that Beijing's economic policies are causing domestic waste and international damage. They estimated China's current account surplus for 2025 at 3.3% of GDP — more than double previous projections — driven by a renminbi that is approximately 16% undervalued, contributing to a record $1.2 trillion trade surplus. Staff calculated that this is giving Chinese exports an artificial advantage, while domestic demand remains subdued. The IMF leadership urged China to move toward a "consumption-led growth model" to mitigate "adverse spillovers" to its trading partners. Goldman Sachs economists project that China's surplus could reach 1% of global GDP within three years, the largest in history. China's IMF representative, Zhang Zhengxin, dismissed the criticism, attributing export growth to "innovation capacity" and U.S. trade policies. (Bloomberg, February 18, 2026)
CHINA SNAPS UP DISCOUNTED RUSSIAN, SAUDI CRUDE
China is rebalancing its energy mix away from Iranian oil and toward cheaper Russian and Saudi supplies. February data shows China's Russian oil imports hitting a record 2.07 million barrels per day (bpd), up from 1.7 million bpd in January. Due to Western sanctions and U.S. pressure, India slashed Russian purchases to a two-year low, allowing Chinese independent "teapot" refiners to secure the fuel at $9–$11 discounts below the global pricepoint for Brent crude. Simultaneously, Saudi Arabia increased March allocations to China to 57 million barrels — up from 48 million in February — following price cuts that have taken oil prices to five-year lows. Conversely, sanctioned Iranian deliveries dipped to 1.03 million bpd from January's average of 1.25 million bpd. (MSN, February 16, 2026; Bloomberg, February 16, 2026)
[EDITOR'S NOTE: Saudi crude prices have hit a five-year low, triggering a regional buying surge. Indian refiners purchased 2 million extra barrels in February and expect another 1 million in March. South Korean and Japanese refiners followed suit, with February volumes exceeding typical long-term contract levels by at least 9 million barrels.]
POLAND BANS CHINESE-MADE VEHICLES FROM MILITARY SITES
The Polish army has prohibited Chinese-made cars from entering military facilities to prevent the "uncontrolled acquisition" of sensitive data via integrated sensors and communication systems. The restrictions, which Warsaw said are consistent with the practices of other NATO countries, also forbids connecting official military mobile devices to Chinese-made infotainment systems. While the new rules apply to all vehicles capable of recording location, video, or audio, the army specifically identified the risks posed by Chinese cars for state-sponsored data harvesting. Chinese models now account for 8% of Poland's new car registrations. Beijing's Foreign Ministry called the decision an "abuse of the concept of national security." (Newsday, February 18, 2026)
CK HUTCHISON THREATENS SUIT AGAINST MAERSK OVER PANAMA PORTS
Hong Kong's CK Hutchison Holdings warned of legal action against Denmark's A.P. Moller-Maersk after Panamanian authorities tapped the Danish firm to manage two strategic Panama Canal ports. The move follows a ruling by Panama's Supreme Court last month declaring CK Hutchison's concessions unconstitutional. Maersk will manage the facilities on a transitional basis until a new bidding process concludes. (The Globe and Mail, February 12, 2026)
[EDITOR'S NOTE: After President Trump alleged last year that China is "running the Panama Canal," CK Hutchison planned to sell the two ports to a consortium that included U.S. investment firm BlackRock. But Beijing intervened to scuttle the deal, and last month's court ruling only further complicates matters. The Hong Kong company criticized the ruling and started arbitration proceedings against Panama.]
PRC EXPANDS VISA-FREE ENTRY
British and Canadian citizens may now enter China visa-free for up to 30 days for business, tourism, exchange programs and to visit family and friends, bringing the total number of eligible countries to 79. The expansion follows recent diplomatic visits by Prime Ministers Keir Starmer and Mark Carney aimed at revitalizing bilateral ties. The program, targeting tourism and business, now includes most European, Southeast Asian, and Middle Eastern states. American citizens remain limited to 10-day transit exemptions. The broader policy simplifies access for executives who are deterred by the PRC's cumbersome application process. (Japan Today, February 17, 2026)
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