China in April 2026: the most important developments in economy
China's economy in April 2026 was shaped by tighter state control over technology deals and a fast-moving race in artificial intelligence. On April 27 China blocked Meta's $2 billion acquisition of the AI startup Manus after a months-long probe, forcing Meta to unwind the completed deal; the decision raised concerns among entrepreneurs and investors about the climate for foreign tech firms. The White House accused China of industrial-scale theft of AI technology. DeepSeek released its V4 model on April 24, open source and adapted to Huawei chips, and cut fees for it three days later. The company was reported to be raising money for the first time at a valuation above $10 billion, with Tencent and Alibaba in talks at over $20 billion. AI and tech firms took Hong Kong listings to a five-year high, and Victory Giant rose 60% on its debut.
The Iran war and the Strait of Hormuz ran through the month. China's factory gate prices rose for the first time in years, ending a long deflationary streak, in a month of higher oil prices. First-quarter growth beat expectations and met the annual target, while export growth slowed in March. A US-sanctioned Chinese tanker passed through the Strait despite the US naval blockade; Beijing called the blockade "irresponsible and dangerous" and Treasury Secretary Bessent accused China of hoarding oil. On April 24 the US sanctioned a Chinese refinery and 40 shippers of Iranian oil. Trump threatened a 50% tariff if China sent arms to Iran, and Beijing warned of countermeasures.
Carmakers formed the third theme. Chinese brands hold over 70% of the home market, German makers' share of the electric car market hit a record low, and Volkswagen lowered its expectations before saying on April 27 that it could compete again. BYD reported its steepest profit drop in six years amid a price war. After a system failure stranded Baidu robotaxis on April 1, China suspended new autonomous vehicle permits.
With the EU, China warned of retaliation over "Made in Europe" rules and a possible Huawei ban, while the EU doubled steel tariffs to 50%.
by WorldBrief & Maksim Micheliov | AI-generated summary
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