Welcome back to China Insights Weekly. Here are some of the highlights of this release:
- China aims for 70% localization of production facilities for chips by 2027, 28nm systems close to mass deployment
- Clean energy capacity has surpassed fossil fuels, solar power has grown by 1,500 % in ten years
- Global pharmaceutical giants Billion dollar deals in China, siRNA and GLP-1 expand
- Humanoid robotics gains national standards, for one year shown 330 models
Main News
Japan's Panasonic to transfer its TV business in the US and Europe to China's Skyworth
Panasonic has entered into a partnership with China's Skyworth Group to transfer its TV sales, marketing, logistics and manufacturing activities in North America and Europe to Skyworth from April 2026. Panasonic will retain brand ownership and quality control and focus on premium models in Japan; Skyworth, the world's third largest OLED TV manufacturer, will take over operational management to reduce costs and improve profitability. The agreement includes joint development of premium OLED TVs. The aim is to achieve a double-digit market share in Europe, another instance of a Japanese electronics giant outsourcing TV operations to Chinese manufacturers following similar moves by Sony, Sharp and Toshiba.
Frontier Biotechnologies signed an agreement with UK pharmaceutical giant GSK on 16 February. GSK has been granted exclusive global rights to develop and commercialise two siRNA therapies in a deal worth over US$1 billion. The financing structure includes an upfront payment of US$40 million, US$13 million in short-term milestone payments and up to US$950 million in development and commercialisation-related milestones, plus royalties. Nanjing-based Frontier will continue Phase I studies and new drug approval (IND) filings in China for both drugs, one currently in IND and the other in preclinical phase, while GSK will lead subsequent global development and commercialisation. The agreement provides Frontier with a significant cash infusion and international validation of its siRNA technology platform.
Pfizer has acquired exclusive commercialization rights in China for ecnoglutide, a GLP-1 type weight loss drug developed by Sciwind Biosciences based in Hangzhou, under a deal worth up to US$495 million including an upfront payment and milestones tied to regulatory and sales. Ecnoglutide won approval in January for the treatment of type 2 diabetes, with its application for approval for long-term weight management now under review by Chinese regulators. The deal targets China's growing obesity market, where 14.1 % of adults are classified as obese, amid intensifying competition involving five GLP-1 approved drugs, including Novo Nordisk's semaglutide and Eli Lilly's tirzepatide, which sparked a price war late last year with price cuts of 50 % and 80 %, respectively. Separately, Sciwind has licensed rights for markets outside China to South Korea's HK Inno.N and the UK's Verdiva.
Nike-backed brand ACG opens first global store in Beijing amid China's sportswear boom
Nike-backed brand All Conditions Gear (ACG) has opened its first global branded store in Beijing's upscale Sanlitun district, operated directly by Nike to tap into China's growing outdoor sports market. The move follows last year's entry of Norwegian brand Norrøna, UK-based Soar and Canada's Ciele Athletics, with Topsports International Holdings acting as the exclusive operating partner of the three brands in China. Topsports has also launched Ektos, a collection of running brands including these labels. According to Authentic Brands Group, 70 % of its portfolio focuses on outdoor sports. Nike's sales in China remain roughly one-third of its North American sales, and there is significant room for expansion as consumer demand shifts to more expensive specialized gear and lower-tier cities present growth opportunities.
China ramps up chip device manufacturing efforts, sets target of 70 % by 2027
China has set a target of achieving 70% semiconductor manufacturing equipment localization by 2027 for mature but established manufacturing processes, versus current requirements that mandate chipmakers to source more than 50 % devices domestically when expanding production capacity. This push, motivated by US sanctions and supply chain security concerns, is being led by domestic champions SMEE, NAURA Technology Group and AMEC. SMEE has moved its 28nm ArF immersion lithography systems into the verification phase, while NAURA has started mass production of 28nm etchers and AMEC is verifying equipment for the 14nm process. In addition, China has reportedly assembled a prototype EUV system using components from legacy ASML systems with the goal of achieving functional chip production by 2028. Industry reports indicate that domestic equipment validation cycles are being completed in approximately one year.
China's epic renewables boom propels it into the exceptional clean energy club
China reached a historic milestone in its energy transformation in 2025, installing 1,494 GW of clean energy capacity and surpassing fossil fuel capacity (1,420 GW) by 73 GW for the first time. Clean energy now accounts for 51 % of China's energy mix, putting the country alongside Brazil, France and Germany as a major economy driven predominantly by clean energy. The transformation has been boosted by a 1,554 % increase in large-scale solar capacity since 2015, with its share rising from 2.4 % to 18.3 % of operating capacity, while coal's share fell from 64 % to a record low of 42.7 %. Total clean energy capacity grew by 253 % between 2015 and 2025, compared to 501 % growth in fossil fuel generation capacity, resulting in an increase in total electricity generation capacity of 113 % over the decade.
Tomáš Kučera & Yereth Jansen
China-insights.com/gnews.cz - GH
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