Deutsche Bahn (DB) is lagging far behind its European neighbors in adopting reduced-emission green steel, despite its potential to be a massive lead market. At the Zukunft Stahl conference, Saarstahl Rail highlighted that while they secured large green rail contracts with the UK (78,000 tonnes) and France (170,000 tonnes/year), DB only contracted a 1,000-tonne trial. DB representatives cited complex internal bureaucracy and unresolved political funding questions regarding who pays the green premium. Industry leaders criticized the paradox of the German government subsidizing green steel tech with billions while failing to create a domestic market for DB's estimated 250,000-tonne annual rail demand.

Japan installed an estimated 5.8 to 6 GW of solar in 2025, pushing its cumulative capacity past 100 GW. According to RTS Corp, growth was driven by C&I power purchase agreements and new-build rooftop solar mandates in Tokyo and Kawasaki. Installations in 2026 are expected to remain steady, with a potential market rush before FiT/FiP subsidies for >10 kW systems end in FY2027. Long-term, Japan aims for solar to be its largest power source by 2040 (targeting up to 280 GW) and is actively subsidizing perovskite technology to hit a 20 GW target.

On December 30, 2025, the National Development and Reform Commission (NDRC) and the Ministry of Finance officially issued the "Notice on Implementing Large-Scale Equipment Renewal and Consumer Goods Trade-in Policy in 2026" (NDRC Resource and Environment Document No. 1745, 2025), marking the continued implementation of this major initiative aimed at promoting economic rebound and improvement. Approved by the State Council, this Notice, while continuing the core framework of 2025, introduced three key optimizations regarding the scope of support, subsidy standards, and implementation mechanisms, striving to make the policy more targeted and effective. The original text is as follows: First, optimizing the scope of support. For equipment renewal, the scope of support from 2025 was generally maintained, with additions in the area of people's livelihoods including elevator installations in old residential communities and equipment renewal in elderly care institutions; in the safety sector, additions included fire rescue, inspection, and detection equipment renewal; and in the consumer infrastructure sector, equipment renewal was added for offline commercial consumption facilities such as commercial complexes, shopping malls, department stores, and large supermarkets. For consumer goods trade-in, resources were further concentrated to enhance the "subsidy receipt rate" for key consumer goods with broad population coverage and strong spillover effects. Subsidies for vehicle retirement and renewal and vehicle replacement continued; subsidies for home appliance trade-ins also continued, with the scope focused on six product categories: refrigerators, washing machines, televisions, air conditioners, computers, and water heaters; meanwhile, the subsidy for purchasing new digital products was expanded to cover digital and smart products, including mobile phones, tablets, smartwatches (wristbands), smart glasses, and smart home products (including age-friendly home products). Second, optimizing subsidy standards. For equipment renewal, subsidies for updating old residential elevators were changed from a fixed amount to a tiered subsidy based on the number of elevator floors (stops); in subsidies for retiring and renewing old commercial trucks, priority support was given to updating to electric trucks. For consumer goods trade-in, while keeping the maximum automobile subsidy unchanged, the fixed subsidy was changed to a subsidy based on a percentage of the vehicle price; the home appliance trade-in subsidy was adjusted to cover products with Grade 1 energy or water efficiency, subsidizing 15% of the selling price, with a maximum single-item subsidy of 1,500 yuan; the subsidy standards for digital and smart products remained the same as the previous standards for digital products. Third, optimizing the implementation mechanism. For equipment renewal, the project application mechanism and review process were optimized, further lowering the investment threshold for project applications, increasing support for small and medium-sized enterprises, and expanding the policy's coverage. For consumer goods trade-in, the fund allocation method was optimized, full-chain implementation rules were refined, and illegal activities such as subsidy fraud and "price increases before subsidies" were strictly crackdown on. Meanwhile, in line with the requirements for building a unified national market, unified subsidy standards were explicitly implemented nationwide for vehicle retirement and renewal, vehicle replacement, trade-ins for six categories of home appliances, and purchases of four categories of digital and smart products. Compared with the 2025 policy, the 2026 policy has the following changes: 1. Vehicle Retirement and Renewal: Shift from Fixed Amount to Percentage-Based Subsidy, Subsidy Amount Reduced for Low-Price Vehicles 2025: A fixed subsidy of 20,000 yuan was provided for replacing internal combustion engine passenger vehicles with China 4 or lower emission standards with new energy vehicles, and a fixed subsidy of 15,000 yuan for replacing them with internal combustion engine vehicles. 2026: For any passenger vehicle registered under the applicant's name, a subsidy of 12% of the vehicle price (capped at 20,000 yuan) is provided when replacing with a new energy vehicle, and 10% of the vehicle price (capped at 15,000 yuan) when replacing with an internal combustion engine vehicle. 2. Vehicle Replacement: Nationally Unified Standard, Shift from Fixed Amount to Percentage-Based 2025: The maximum subsidy for new energy vehicles was 15,000 yuan, and 13,000 yuan for internal combustion engine vehicles. 2026: A subsidy of 8% of the vehicle price (capped at 15,000 yuan) is provided for new energy vehicles, and 6% of the vehicle price (capped at 13,000 yuan) for internal combustion engine vehicles. 3. Home Appliances: Focused Product Categories, Both Subsidy Percentage and Cap Reduced 2025: Subsidies covered 12 product categories; 20% for Grade 1 energy efficiency, 15% for Grade 2, with a maximum single-item subsidy of 2,000 yuan; up to 3 air conditioner units could be subsidized. 2026: Subsidies cover 6 product categories (refrigerators, washing machines, televisions, air conditioners, computers, water heaters); 15% for products with Grade 1 energy efficiency or water efficiency, with a maximum single-item subsidy of 1,500 yuan; only one item per person is subsidized. 4. Digital and Smart Products: Expanded Product Categories, Standards Unchanged 2025: Subsidies covered 3 product categories (mobile phones, tablets, smartwatches); a 15% subsidy per item, capped at 500 yuan; the selling price of a single product must not exceed 6,000 yuan. 2026: Subsidies cover 4 product categories (mobile phones, tablets, smartwatches, smart glasses); a 15% subsidy per item, capped at 500 yuan; the selling price of a single product must not exceed 6,000 yuan. 5. Other Subsidies: Continuation of Local Autonomy, Emphasis on Age-Friendly Trends 2025: Support was provided for home decoration consumer goods, including old home renovation and age-friendly modifications; trade-in subsidies were explicitly provided for e-bikes. 2026: Subsidies for purchasing new smart home products are explicitly proposed, with specific rules to be formulated locally. Wang Cong 021-51666838 Ma Rui 021-51595780 Feng Disheng 021-51666714 Lu Yanlin 021-20707875 Zhou Zhicheng 021-51666711 Zhang Haohan 021-51666752 Wang Zihan 021-51666914 Wang Jie 021-51595902 Xu Yang 021-51666760 Yang Lianting 021-51595835 Wang Zhaoyu 021-51666827

I recently wrote a column on Ukraine’s potential in the titanium value chain with an analysis on the current geopolitical situation and geographic concentration.

[Starting Next Year, Purchase Tax Will Be Halved, 17 Major Automakers Have Committed to Covering the Difference] The policy of full vehicle purchase tax exemption for new energy vehicles is expected to end in 2025, and the battle among automakers for orders has already begun. As of November 13, 17 major automakers, including Li Auto, NIO, Chery, AITO, LUXEED, Xiaomi, Zeekr, IM, Changan, M-Hero Automotive Technology, Deepal, Tank, GAC, Dongfeng Yipai, Lynk & Co, SAIC Audi, and Buick, have introduced plans to cover the purchase tax difference, subsidizing the tax out of their own pockets for consumers who locked in orders this year.