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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News
Policy
A cargo ship loaded with containers berths at a Chinese port in Qingdao, Shandong province. Photo: AFP
Policy
China urges ‘positive dialogue’ with US as Trump’s threatened tariffs loom large
Deputy commerce minister also warns of tariffs’ adverse effects on the country imposing them, while pointing to China’s economic ‘resilience’ in face of external shocks.
Amazon is inviting Chinese merchants onto its new budget-shopping platform. Photo: AFP
Big Tech
Amazon invites Chinese sellers to new bargain marketplace Haul
The US e-commerce giant is aggressively promoting its new budget-shopping platform this holiday season to take on Temu and Shein.
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Demand for gold has surged in China over the past two years, as consumers and investors react to domestic and global economic uncertainty. Photo: Shutterstock
China Economy
China hits jackpot with discovery of ‘massive’ gold reserves in Hunan
The US$80 billion hoard is the latest fruit of China’s drive to find new domestic precious minerals reserves.
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Xiaomi’s revenue was driven by a burgeoning electric vehicle business and global smartphone rebound. Photo: Reuters
Tech
Recap|China’s tech giants defy economic woes: 6 latest earnings reports
How have some of China’s biggest tech companies fared in their third-quarter earnings revelations? Find out in some of our latest stories.
Net inflows into wealth management products offered in Hong Kong nearly tripled to HK$341 billion in 2023, from a year earlier. Photo: Eugene Lee
Banking & Finance
Hong Kong’s wealth sector thrives as political uncertainty, geopolitics swirl
The Capital Investment Entrant Scheme, launched in March, has brought in more than HK$20 billion from 670 applications, Paul Chan says.
Visitors look at Mona M03 electric vehicles (EVs), displayed at an XPeng launch event in Beijing on August 27, 2024. Photo: Reuters
China Business
Unprofitable Chinese EV makers face ‘do-or-die moment’
Only those that can sustain operations without external funding will stay in the race amid overcapacity and tariff woes, analysts say.
4
A Chinese province is attempting to ease concerns over the physical stress of childbirth with a plan to include labour pain treatment in public health insurance policies. Photo: Getty Images
Policy
Chinese province makes labour pain relief pledge to ease childbirth jitters
Hainan says labour pain relief will be covered by public health insurance, part of broader plan to boost birth rates.
A robotic surgical system is displayed during the 2024 China Medical Equipment Conference in southwest China’s Chongqing Municipality on March 29, 2024. Photo: Xinhua
Biomedicine
Chinese biotech firms brace for Trump tariffs, US funding bill
Efforts to expand sales of high-value products in China and non-US markets would cushion the blow, analysts say.
The logo of Chinese online budget shopping app Pinduoduo, pictured next to its mobile app on July 17, 2018. Photo: Reuters
Big Tech
Temu owner PDD sees 10% plunge in pre-market trading despite 44% revenue growth
PDD’s results, including a 66 per cent jump in net revenue, outperformed rivals, but it did not allay investor concerns amid e-commerce competition.
Students hoping to pursue advanced degrees prepare for the national postgraduate entrance exam in China’s Hunan province. Photo: Xinhua
China Economy
An advanced degree in China? Think again, students say, as exam numbers plunge
China’s graduate entrance examination is not seen as the golden ticket to employment that it once was.
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Pinduoduo has grown its market share through aggressive pricing, which is now facing criticism. Photo: Shutterstock
Big Tech
China’s second-richest man blasts Pinduoduo for hurting domestic brands
The founder of bottled water company Nongfu Spring called Pinduoduo a main contributor to aggressive pricing causing ‘huge harm for Chinese brands’.
The logo of Baidu seen during the World Internet Conference in Wuzhen on November 23, 2020. Photo: Reuters
Big Tech
Baidu’s 3rd-quarter revenue falls 3% as economic woes hit ad spending
The internet search giant pulled in US$4.6 billion in the September quarter, with a decline in online marketing outpacing AI growth.
China’s enormous export industry, a major growth driver in the country’s economy, would be hit hard by heightened trade restrictions. Photo: Xinhua
Policy
China unveils plan to guide exporters through tempestuous trade waters
With more external barriers to trade likely to come, China’s commerce ministry announces nine-point plan to aid exporters in tough climate.
2
A queue at a Starbucks cafe in Kunming city, in Yunnan province on 28 April 2011. Photo: ImagineChina.
Companies
Is Starbucks seeking help from a partner to regain its perk in China?
Starbucks is ‘working to find the best path to growth, which includes exploring strategic partnerships’, according to a statement.
This year’s Singles’ Day debacle for Apple reflects the continued cutthroat competition in China, the world’s biggest smartphone market. Photo: Shutterstock
Big Tech
Apple’s iPhone sales fall during China’s Singles’ Day shopping festival: report
The event’s two-week sales period saw ‘a double-digit, year-on-year decline’ in iPhone sales amid stiff competition from Chinese rivals.
2
An employee works on solar photovoltaic modules for export at a factory in China’s Jiangsu province. Photo: AFP
China Economy
China warns overheated solar industry to cool the competition, curb backlash
Revised ministry guidance serves to pour cold water on a photovoltaic sector that is rife with overcapacity concerns.
A man carries a television set on his shoulder as he passes through the Sanlitun shopping district in Beijing. Photo: AP
China Economy
China’s stimulus debate reignites questions of who gets what, and how
Better social welfare could increase financial security and encourage spending, while cash handouts could quickly lift consumption, economists say.
2
A cyclist waves a flag saying “I will reach a compromise with life after I squander my freedom”, as students ride rental bicycles in Zhengzhou city, Henan province, on November 8. Photo: EPA-EFE
China Opinion
Opinion|China is better off letting young people let off steam
Amid high jobless rates, youth have little to devote their hours to. The authorities must understand that all this energy has to be released.
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A bullet train passes by the Yongdingmen, the Gate of Perpetual Peace in Beijing. Photo: Xinhua
Policy
Reform China’s ‘competitive’ state-ruled industries: senior economic official
Han Wenxiu also stressed the need for breaking down market access barriers and the development of the private sector to advance Chinese-style modernisation.
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A loaded cargo ship in Qingdao, China. US president-elect Donald Trump has threatened to impose at least 60 per cent tariffs on all Chinese imports. Photo: AFP/Getty Images/TNS
China
Harsh Chinese retaliation against Trump tariffs is unlikely, economist predicts
Beijing has other moves at its disposal, including deepening trade ties with the rest of the world and increasing demand at home.
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China’s migrant workers accounted for about 21 per cent of the population last year. Photo: AFP
China Economy
Wary of ‘vicious’ events, China makes migrant worker arrears a priority
Social harmony takes centre stage after high-profile killings, and China’s cabinet says the unpaid salaries of migrant labourers require political action.
3
Howard Lutnick has the support of Elon Musk. Photo: Reuters
Diplomacy
How bad is Trump commerce pick Howard Lutnick – and his tariff talk – for China?
Lutnick, a Wall Street billionaire, will take the lead on the new administration’s trade agenda.
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Chinese economist Zhang Ming has warned against letting security outweigh development as Beijing plans for the future of its relationship with the US under the second term of Donald Trump. Photo: Elson Li
China Economy
Chinese economist calls for balance between development, security in US rivalry
Zhang Ming of the Chinese Academy of Social Sciences calls excessive focus on security over development a ‘trap’ worth avoiding.
China has issued what it terms ultra-long-term special government bonds on multiple occasions in 2024, a rare move to shore up the economy. Photo: Reuters
Policy
Explainer|What makes China’s ultra-long ‘special bonds’ so special?
China has only issued its ultra-long-term government bonds in special circumstances – here’s why this year qualifies.
3
Shenzhen on Tuesday announced tax breaks on large homes to spur sales. Photo: Getty Images
China Business
Shenzhen joins Beijing and Shanghai in offering tax breaks to boost home sales
Homeowners will not have to pay value-added tax when reselling their property after two years.
China’s second- and third-tier cities are seeing retail spending bounce back faster than in first-tier cities. Photo: Reuters
China Economy
Why are consumers in some of China’s smaller cities outspending metropolitans?
People face less daunting financial pressures and lesser debt burdens in smaller Chinese cities, with relatively stable expectations about the future.
2
Chinese President Xi Jinping is welcomed by Brazilian President Luiz Inacio Lula da Silva before the start of the 19th G20 Summit in Rio de Janeiro. Photo: Xinhua
Global Economy
Brazilian envoy says Chinese new energy investments welcome
Brazilian diplomat says country’s ‘huge’ potential in new energy makes it an appealing venue for Chinese investment.
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Children play with bubbles at a kindergarten in Yantai Hi-tech Zone in eastern China’s Shandong province. Photo: Future Publishing via Getty Images
Policy
Baby boon: far-flung Chinese county splashes cash to boost births
Researcher questions where the money will come from, as well as the sustainability of subsidies amid China’s falling birth rate.
Opinion
Editorial|Torch of international cooperation to burn despite Trump return
China’s President Xi Jinping along with leaders at the Apec and G20 summits make it clear multilateralism is still the way to go.
SCMP Editorial
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Editorial|More growth ahead as cross-border Connect turns 10
Status of Hong Kong as offshore financial hub for mainland China has been greatly enhanced by ever-widening investment scheme.
SCMP Editorial
My Take|Tesla is getting love from Chinese state media, but can the affair last?
Communist Party mouthpiece People’s Daily praised Tesla for sparking an EV boom, but Musk’s role in a new Trump administration could complicate matters.
SCMP ColumnistZhou Xin
2
Macroscope|Trump’s tariff weapon may amount to little in a changed world
US-China decoupling and trade diversification across the Asia-Pacific mean Trump’s tariffs are no longer capable of mass destruction.
Anthony Rowley
Editorial|Common approach best for ties between China and Indonesia
Presidents Xi Jinping and Prabowo Subianto have complementary development visions for their countries and dialogue is the way forward.
SCMP Editorial
Editorial|China fires first shot to shore up economy against any surprises
The 6 trillion yuan debt-swap plan announced by the National People’s Congress Standing Committee is a timely, measured and targeted approach.
SCMP Editorial
2
Macroscope|IMF is changing its tune on trade. Should Asian economies listen?
In matters of open trade, Asian policymakers can no longer rely on the IMF, which is now advising Asia to focus on building domestic demand.
Anthony Rowley
2
Macroscope|The most important part of China’s fiscal stimulus? Expectation management
As Beijing prioritises stability and development over reflation, investors must reconcile themselves to the realities of Chinese policymaking.
Nicholas Spiro
My Take|China’s bleak demographic condition offers harsh lessons for policymakers
Beijing’s efforts to cultivate a ‘birth-friendly society’ marks an about-turn from its rigid, decades-long enforcement of a one-child policy.
SCMP ColumnistZhou Xin
3
The View|China’s property prospects aren’t all doom and gloom
Despite lagging investment, mainland Chinese and Hong Kong real estate markets still have unappreciated long-term growth opportunities.
Nicholas Spiro
Macroscope|Will China replace India and Japan as Asia’s new investment darling?
Although Indian and Japanese stock markets have lost some of their lustre, more signs are needed to affirm the quality of China’s post-stimulus bull run.
Nicholas Spiro
3
Editorial|Industrial profits slide highlights China’s need for balanced economy
Amid mixed signals on the health of the economy, President Xi Jinping calls on top officials to keep China on track to meet annual growth target of about 5 per cent.
SCMP Editorial
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