China Economy

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Background explainers, news and analysis on China’s economy, including its opening up, the US-China trade war, the impact of tariffs and trade talks, growth rates and other key economic data, the Belt and Road Initiative, and Greater Bay Area plan.

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Global Economy
US President Donald Trump is expected to reveal details of his promised “reciprocal tariffs” on Wednesday. Photo: EPA-EFE
Global Economy
US trade office lays out Trump’s case against China as ‘Liberation Day’ nears
US’ annual report on global trade barriers, with a lengthy China section, presages reciprocal tariffs – and suggests stronger action down the line.
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US President Donald Trump speaks while standing in front of a painting of former President Ronald Reagan in the White House. Photo: AFP
China Economy
Explainer|What is the ‘Mar-a-Lago Accord’, and will it really crash China’s economy?
The US’ mooted idea to devalue the dollar has been compared to the Plaza Accord of the 1980s, which some believe caused Japan’s ‘lost decades’.
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Farmers harvest soybeans in the US state of Illinois. Photo: EPA-EFE
Global Economy
China contends ‘key pillar’ agriculture is off-limits in US trade war
Party mouthpiece warns against mutually destructive trade practices, says US and China are ‘natural partners in agriculture’.
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Chinese President Xi Jinping meets business representatives at the Great Hall of the People in Beijing, on March 28. Photo: Xinhua
China Opinion
Opinion|Key to China’s success in stabilising foreign investment lies within playing
While geopolitical factors are critical, the real test for Beijing is in improving its domestic economic environment and boosting consumption.
Laopu Gold, which focuses on high-end heritage jewellery, operates only 36 stores in China. Photo: SCMP Pictures
China Business
Will Laopu Gold stock reach HK$1,000 after investors’ H-share conversion?
Beijing Hongqiao Jinji Consulting, Chen Guodong and Tianjin Jincheng Enterprise have been given approval to convert their shares.
US President Donald Trump has rolled out several measures to curb China’s perceived influence in global shipping and shipbuilding. Photo: AP
Global Economy
Explainer|Why Trump is going full steam ahead to keep China’s shipbuilding in dry dock
US policies to curb China’s perceived influence on global shipping and shipbuilding are facing pushback – but Trump seems unlikely to let up.
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A job seeker from Sichuan province talks to a recruiter during a job fair at the Beijing West Railway Station on February 25. The fair is aimed at migrant workers who have just arrived in the city. Photo. Xinhua
China Opinion
Opinion|China’s economic recovery cannot leave migrant workers behind
China’s migrant worker population hovers around 300 million but work-relief job creation covers just 1 per cent of that.
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Russian President Vladimir Putin with Chinese Foreign Minister Wang Yi at the Kremlin, in Moscow on April 1. Photo: AP
Diplomacy
China and Russia look to ‘broader and broader’ ties and ‘close coordination’
Vladimir Putin tells China’s top diplomat Wang Yi in Moscow that he’s ‘looking forward’ to welcoming Xi Jinping next month.
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After US President Donald Trump returned to the White House in January, he ordered a comprehensive review America’s trade policy, with a focus on China. Photo: TNS
China Economy
Fresh US tariffs on China may be ‘too large to absorb, too conspicuous to dodge’
Donald Trump’s deadline for China report has arrived, ahead of his ‘Liberation Day’ to free US economy from what he sees as unfair practices.
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A staff member tests a humanoid robot from a company based in Shenzhen, Guangdong province. Photo: Xinhua
Policy
Guangdong boosts AI and robotics subsidies after DeepSeek’s success
A new initiative seeks to position Guangdong as a ‘global highland’ for AI and robotics, following DeepSeek’s success.
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China’s long-anticipated draft law for a national system tracking “social credit” was released in November 2022. It is still being updated with new guidelines. Photo: Simon Song
Economy
China’s complex social credit system evolves with 23 new guidelines from Beijing
Guidelines also establish ‘seriously discredited entities’ list for specific sectors – and those on the list could face restrictions or bans on issuing stocks and bonds.
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China ranked 10th in a new global innovation league table produced by an official research body in Beijing. Photo: Xinhua
China Economy
Stay humble? China ranks itself 10th in new global innovation league table
But China has risen up the rankings faster than any other nation over the past 12 years, according to the report.
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A worker welds at a steel-processing factory on Saturday. China’s factory activity showed signs of speeding up in March. Photo: Xinhua
Economic Indicators
China’s factory activity speeds up on export boost, Caixin PMI shows
But China’s macroeconomic policies must be ‘more proactive and decisive’, with immediate implementations, to support a recovery, economist says.
Zou Jiayi, then China’s vice-minister of finance, speaks during an event in Beijing in 2018. Photo: AFP
China Economy
Who is Zou Jiayi, China’s pick to be the next president of the AIIB?
The 61-year-old former vice-minister of finance would be the development bank’s first female leader.
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China’s private firms are more wary of making sales on credit as the broader economic environment remains uncertain. Photo: Xinhua
China Economy
Cash-strapped Chinese suppliers staying credit-conscious in 2025: survey
With China’s economy still in recovery, firms are less likely to extend credit for sales as many of their outstanding payments remain unfulfilled.
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From the left, South Korean Foreign Minister Cho Tae-yul, Japanese Prime Minister Shigeru Ishiba, Chinese Foreign Minister Wang Yi and Japanese Foreign Minister Takeshi Iwaya join hands at the prime minister’s office in Tokyo on March 21. Photo: Kyodo
Asia Opinion
Opinion|In a broken world, China-Japan-Korea cooperation is Asia’s backbone
By blending economic might, technological prowess and cultural bonds, cooperation can be elevated into a transformative, inspiring force.
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Microsoft has closed its research lab in Shanghai’s Zhangjiang hi-tech zone, and has already removed its logo from the entrance. Photo: Wency Chen
Big Tech
Microsoft shutters AI lab in Shanghai, continuing China retreat
The IoT & AI Insider Lab in the Zhangjiang hi-tech zone likely closed in January or February, nearby workers say.
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The EHang 184, an autonomous aerial vehicle designed to carry one passenger, performs a test flight in Guangzhou, Guangdong province. EHang has become one of the first companies in China to receive approval to put its passenger drones into operation. Photo: Reuters
China Economy
Flying taxis: China clears way for first companies to begin offering services
Chinese regulators have for the first time granted companies approval to operate autonomous passenger drones.
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Liang Yunfeng inspects smart machines at a Dahaize underground coal mine. Photo: Journal of Intelligent Mine
Science
How AI revolution at a Chinese coal mine is making profits soar
China’s Dahaize Mine is rewriting the playbook on how a coalfield operates as automation takes centre stage.
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An aerial drone shot this month shows a farmer plowing a field in China’s Zhejiang province. China is making agriculture advancements more attainable with a new plan. Photo: Xinhua
China Economy
Beijing bids adieu to ‘basic’ farmland with plan to supercharge soil
When it’s basic farmland vs ‘well-facilitated’ farmland, the latter considerably outperforms in cost and yield.
Country Garden posted a full-year loss of 32.8 billion yuan for 2024. Photo: Shutterstock
Business
No respite in sight for Chinese developers as profits continue to slump
China Overseas Land & Investment’s profit sank 40 per cent to 15.6 billion yuan, while Country Garden trimmed its loss to 32.8 billion yuan.
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This China-made C909 will operate in Laos and have 90 seats. Photo: CCTV
Global Economy
Lao Airlines cruising to first C909 – a milestone for the made-in-China aircraft
China’s aircraft manufacturer continues spreading its wings abroad with fresh deals to supply passenger jets to Asian neighbours.
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Chinese banks are lifting their consumer loan rates. Photo: AFP
Banking & Finance
Chinese banks raise consumer loan rates from record low to protect margins
Banks will offer consumer loans at 3 per cent to boost their net interest margins, which hit a low of 1.52 per cent at the end of last year.
A humanoid robot on display at the World Artificial Intelligence Conference (WAIC) in Shanghai on July 5, 2024. Photo: AFP
Tech Trends
Venture capital veteran Allen Zhu questions humanoid robots’ value
Zhu, who famously backed Didi Chuxing and RedNote, says early-stage venture capitalists should steer away from the embodied-AI sector.
Economists have cautioned amid broader uncertainty, capital outflow pressure will remain on China for at least two years. Photo: EPA-EFE
China Economy
China’s capital outflow pressure may continue for now, top economists warn
Article on social media suggests US policy, low consumer sentiment will continue to motivate capital flight, though movement is likely to be slower.
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China’s factory activity remained resilient in March despite US moves to raise tariffs on Chinese imports. Photo: Xinhua
China Economy
China’s factory activity accelerates in March even as US ramps up tariffs
China’s manufacturing activity hit a 12-month high as Beijing introduced a slew of measures to boost the economy.
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Georges Elhedery, group CEO of HSBC, speaks at the bank’s Global Investment Summit last week. Photo: Handout
Banking & Finance
HSBC bets big on Hong Kong to tap Asia’s wealth-management boom: Elhedery
HSBC’s customers base increased to 6.2 million last year from 5.4 million, showing the importance of the city, Elhedery says.
People visit the Shanghai International Automobile Industry Exhibition in April 2023. Photo: AFP
China Business
China to crack down on unfair EV price cuts to stabilise industry
China vows to combat unfair pricing and misinformation by EV players, as it aims to stabilise growth and profitability of the sector.
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Luxury property prices in Shanghai are rising while prices of mass-market homes are falling. Photo: EPA-EFE
China Business
Shanghai’s luxury property market thrives while mass housing segment deteriorates
More than 60 per cent of the 4,110 new homes in China priced above 30 million yuan were sold in Shanghai last year, according to CRIC data.
Opinion
My Take|Labubu proves Hong Kong IP and Chinese manufacturing are a recipe for success
The blind-box retailer’s mass-market toys based on cute Hong Kong designs are fuelling its international rise – and setting a template.
SCMP ColumnistZhou Xin
Editorial|China’s austerity is very different to that in US
Beijing is targeting wasteful spending on projects and misuse of public money by officials, not savings to finance tax cuts.
SCMP Editorial
Editorial|China offers stability in a world roiled by rising trade tensions
Premier Li Qiang has reassured major CEOs from around the world that the nation remains open for business despite Donald Trump’s tariff threats.
SCMP Editorial
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Editorial|Uncertainty from the US will have impact on local interest rates
Three key economic factors highlighted by US Fed chairman Jay Powell should have borrowers carefully assessing the interest rate risk.
SCMP Editorial
Editorial|Beijing’s ambitious plan can help to prime the consumption pump
Communist Party Central Committee and State Council issue 30-point action plan aimed at reviving Chinese economy and stoking domestic spending.
SCMP Editorial
Editorial|Walmart’s bid to force China to pay Trump tariffs is unacceptable
Chinese suppliers with already razor-thin margins should not have to bear the costs of Washington’s trade war.
SCMP Editorial
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My Take|Will AI and robots drive China’s next consumer spending spree?
China is seeking the next ‘big items’ to encourage consumers to open their wallets. Technology looks to be a key.
SCMP ColumnistZhou Xin
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Macroscope|Trump’s trade war is giving Europe and China the nudge they need
While the tide has not fully turned in Europe and China’s favour, Trump’s recklessness is providing impetus for badly needed policy shifts.
Nicholas Spiro
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Editorial|Opportunities knock for Hong Kong with role in national development
City’s unique strengths mean it can take lead on international cooperation and exchanges while also benefiting from Beijing’s economic moves.
SCMP Editorial
Editorial|As US rivalry hots up, Beijing sets steady growth target and looks to wider world
China’s premier charts stable course through Trump global chaos on measured path to economic overhaul by managing internal and external risks.
SCMP Editorial
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The View|Why investors are taking a second look at Chinese real estate
While the overall market has yet to bottom out and policies are needed to boost confidence, secondary market resilience offers some hope.
Nicholas Spiro
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My Take|After DeepSeek, China gets a leg up in the quest for human-level AI
Will artificial general intelligence (AGI) arrive with a bang or quietly evolve? The answer may have implications in the US-China tech race.
SCMP ColumnistZhou Xin
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