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Tag: China

  • Unlocking New Trade Horizons: Vietnam’s Fresh Jackfruit Wins Approval for Export to China

    Unlocking New Trade Horizons: Vietnam’s Fresh Jackfruit Wins Approval for Export to China

    Vietnam has received approval to export their fresh jackfruits directly to China, following a protocol agreement between the two nations’ respective agricultural authorities.

    Significant Trade Agreement

    The protocol was established during a business meeting involving Tran Duc Thang, Vietnam’s Minister of Agriculture and Environment, and Zhao Zenglian, the Deputy Director of the General Administration of Customs of China. This accord signifies a noteworthy advancement in the bilateral agricultural commerce, adding to this year’s series of protocols encompassing chili, passion fruit, rice bran, and raw swiftlet nests.

    China’s General Administration of Customs (GACC) has underlined its commitment to opening its markets to premium Vietnamese agricultural products. Simultaneously, Vietnam reiterated its focus on augmenting collaboration in the agriculture and environment sector.

    Fresh Jackfruit Trade

    With this protocol, fresh jackfruit will be standardized, minimizing trade risks and aligning with stringent quality standards. This regulation supports the proliferation of jackfruit cultivation under Good Agricultural Practices (GAP). This progression is anticipated to amplify value-added production and improve farmers’ earnings.

    As per the Vietnamese Ministry of Agriculture, the nation’s fruit and vegetable exports reached an impressive nearly $7.1 billion during the initial 10 months of 2025. This denotes a growth of 15.1% compared to the previous year, with China absorbing 62.9% of these shipments.

    The fresh jackfruit export protocol looks set to bolster this growth further. It is hoped that this new agreement will help the sector achieve its export goal of $8.5 billion for the entire year.

    Questions & Answers

    What is the significance of this fresh jackfruit protocol between Vietnam and China?
    This protocol signifies a noteworthy advancement in the bilateral agricultural commerce between the two nations, potentially leading to an increase in the value-added production and earnings of Vietnamese farmers.

    What does the standardization of fresh jackfruit entail?
    The standardization of fresh jackfruit will minimize trade risks, align with stringent quality standards, and support the proliferation of jackfruit cultivation under Good Agricultural Practices (GAP).

    How much did Vietnam’s fruit and vegetable exports reach in the first 10 months of 2025?
    Vietnam’s fruit and vegetable exports reached nearly $7.1 billion during the initial 10 months of 2025, marking a growth of 15.1% compared to the previous year.

  • Triumph Bids Farewell to China: Decades-Long Journey of Lingerie Giant Ends

    Triumph Bids Farewell to China: Decades-Long Journey of Lingerie Giant Ends

    The international lingerie brand, Triumph, has announced plans to exit Mainland China, one of the world’s largest retail markets, by the end of this year. This decision marks the end of a long-standing presence in the region, spanning over several decades.

    Gratitude for Loyal Customers

    In a recent statement, Triumph expressed its appreciation towards its Chinese consumers, acknowledging their support over the past three decades. The company expressed gratitude to all customers and members who trusted and supported the Triumph brand over the years.

    They further emphasized how fortunate they have been to grow alongside their customers in China. Ever since their initial venture into the Chinese market, Triumph states that it has been a privilege to work closely with their consumers, witnessing the brand’s growth and transformation in the country.

    Phased Withdrawal Strategy

    The brand has decided to employ a phased approach to its withdrawal, initially focusing on its digital ecosystem. Triumph’s WeChat mini-program, which offers after-sales services, will cease operation as of midnight, December 10.

    Other digital platforms that offer after-sales support, including Taobao, Tmall, Tmall Outlet, JD, Pinduoduo, Douyin, and VIPshop, will end their association with Triumph no later than midnight, December 5.

    Following the digital shutdown, Triumph’s physical presence will also be phased out. All offline locations are slated for closure by December 31.

    The decision was issued by Hainan Youmei Underwear and Yancheng International Women’s Fashion, the entities that manage Triumph’s operations in China.

    Questions & Answers

    When will Triumph’s WeChat mini-program cease operation?
    Triumph’s WeChat mini-program will stop offering after-sales services at midnight on December 10.

    What is Triumph’s strategy for exiting the Chinese market?
    Triumph is employing a phased approach to its withdrawal, first focusing on its digital ecosystem and then moving to its physical locations.

    When are all of Triumph’s offline stores set to close?
    All of Triumph’s physical stores in China are set to close by December 31.

  • Alibaba’s Revenue Surges, Thanks to Fast Delivery and AI Investments: Outpaces Quarterly Estimates

    Alibaba’s Revenue Surges, Thanks to Fast Delivery and AI Investments: Outpaces Quarterly Estimates

    In Tuesday’s quarterly report, Alibaba, the Chinese e-commerce behemoth, exceeded analysts’ revenue predictions. This success was primarily attributed to the company’s significant investments in one-hour delivery services, which attracted more users to its shopping applications. Additionally, the company’s cloud division demonstrated remarkable growth.

    Share Performance and Revenue

    Following the announcement, the company’s US-listed shares increased by 2% in initial trading. Alibaba reported a second-quarter revenue of 247.80 billion yuan (approximately US$35 billion). This figure surpassed the anticipated revenue of 242.65 billion yuan. However, the adjusted profit of 4.36 yuan per American Depository Share fell short of an estimated 5.49 yuan.

    Fierce Competition in the Quick Commerce Sector

    Alibaba’s performance comes amidst an expensive competition in China’s ‘instant retail’ or ‘quick commerce’ sector. Here, major corporations are investing billions in expedited delivery services to secure a larger market share. Simultaneously, Alibaba has been making significant investments in artificial intelligence (AI), positioning itself as a frontrunner in the industry within China.

    Investment in AI

    The company announced in February plans to allocate 380 billion yuan over three years to AI and cloud investments. However, CEO Eddie Wu hinted at potential additional investments to address supply chain challenges while meeting customer demand. Indicating the company’s aggressive stance on AI investment, Wu suggested that the planned investment may be insufficient given the scale of customer demand.

    Profit Impacts

    Despite the investments causing a 53% reduction in net profit to 20.61 billion yuan, this figure still surpassed analysts’ predictions. These investments, particularly in AI, are anticipated to establish long-term competitive advantages, notwithstanding the immediate pressure on profit margins.

    Instant Retail Sector

    In the instant retail sector, aggressive discounting and subsidies from Alibaba and its competitors have led to concerns over margins and substantial cash expenditure. However, with its diversified business model and significant resources, Alibaba is less vulnerable than its rivals. The company projects that the instant retail sector could add 1 trillion yuan in yearly gross merchandise value over the next three years. Notably, Alibaba’s instant retail business has significantly improved unit economics recently, with cost per order decreasing by half since summer.

    Singles’ Day Subsidies

    The Singles’ Day sales period, stretching from early October to November 11, witnessed considerable subsidies and discounting by retailers to stimulate demand. Sales across major platforms during this period escalated to 1.70 trillion yuan, an increase from 1.44 trillion yuan the previous year.

    Expansion into Consumer AI

    Alibaba has also recently intensified efforts to penetrate the consumer AI market, a sector where it has been comparably less active due to its greater emphasis on enterprise clients. Despite launching a free app, which gained 10 million downloads within its first week, it remains behind the market leader, ByteDance’s Doubao, which boasts 150 million users. Consequently, an ongoing price war in China’s domestic AI market, triggered by competitors focusing on affordable computing and app development, has forced Alibaba to reduce prices.

    Questions & Answers

    What led to Alibaba exceeding analysts’ revenue expectations?
    Alibaba’s investments in one-hour delivery services attracted more users to its shopping apps, leading to increased revenue.

    What challenges is Alibaba facing in the quick commerce sector?
    The sector is highly competitive, with corporations investing billions in expedited delivery services to secure a larger market share.

    How is Alibaba responding to competition in the consumer AI market?
    Alibaba has intensified efforts to penetrate the consumer AI market and launched a free app that gained 10 million downloads within its first week. It has also reduced its prices to remain competitive.

  • China’s 5G-Boosted M2M & IoT Market Set for 7% CAGR Surge by 2030: The Future of Mobile Connectivity

    China’s 5G-Boosted M2M & IoT Market Set for 7% CAGR Surge by 2030: The Future of Mobile Connectivity

    The cellular machine-to-machine (M2M) and Internet of Things (IoT) connectivity market in China is projected to experience considerable expansion over the next decade. Projected growth rates estimate an increase in subscriptions at a compound annual growth rate (CAGR) of 7% from 2025 to 2030. The driving factors behind this growth include the emergence of new applications across diverse industries, the development of 5G infrastructure by telecommunications firms, and their comprehensive M2M/IoT service offerings.

    Increasing Adoption of M2M/IoT Technology

    The China Mobile Broadband Forecast for the third quarter of 2025 suggests that M2M/IoT subscriptions will constitute approximately 30% of all mobile subscriptions in the nation by 2030. This statistic underscores the escalating adoption of this technology and its growing significance as a revenue stream for telecom firms.

    China’s vast manufacturing base and pervasive digitalization in the sector support the growth of the M2M/IoT market. The advent of digital factories, which require extensive automation and connectivity for real-time monitoring and predictive maintenance, will bolster this growth.

    Expanded Use Cases

    Telecom Analyst Hrushikesh Mahananda points out that the expansion of use cases beyond the manufacturing sector will also benefit the market. Applications in the utilities sector, such as smart grids and smart metering, along with vehicle-to-vehicle and vehicle-to-infrastructure applications in the automotive and transportation sector, are notable examples. Additionally, connected devices and patient monitoring in healthcare and smart city initiatives involving smart buildings, traffic control, and public safety systems show promising potential.

    Government backing for the integration of M2M/IoT technology into manufacturing, smart cities, and public infrastructure projects aligns with national strategies like Made in China 2025 and China 2035. This alignment highlights the technology’s increasing relevance in the country.

    5G Infrastructure and M2M/IoT Expansion

    The creation of a robust 5G infrastructure and advancements in 5G-Advanced technology, which support large-scale IoT deployments, will further boost the M2M/IoT sector in China. For instance, the Chinese telecom regulator MIIT plans to establish over 10,000 5G factories during the 14th Five-Year Plan (2021-2025) to enhance industrial applications of 5G, primarily in manufacturing.

    Mahananda concludes that the growing prominence of M2M/IoT has led China’s leading mobile operators to design comprehensive service offerings that are fueling growth in M2M/IoT connectivity subscriptions. These operators have also developed advanced M2M/IoT platforms that streamline deployment, integration, and management of M2M/IoT ecosystems across industries, further enhancing connectivity, device management, edge, and AI capabilities.

    Questions & Answers

    What factors are driving the growth of M2M/IoT connectivity in China?
    The growth is driven by new use cases across various sectors, advancements in 5G infrastructure by telecom companies, and their comprehensive M2M/IoT service offerings.

    What percentage of mobile subscriptions in China will M2M/IoT subscriptions make up by 2030?
    According to the China Mobile Broadband Forecast (Q3-2025), M2M/IoT subscriptions will account for approximately 30% of all mobile subscriptions by 2030.

    What role does the Chinese government play in the growth of M2M/IoT connectivity?
    The government supports the integration of M2M/IoT technology into the manufacturing sector, smart cities, and public infrastructure projects, which aligns with national initiatives like Made in China 2025 and China 2035.

  • Harrods Ramps up Digital Strategy, Scaling Down Physical Presence in China

    Harrods Ramps up Digital Strategy, Scaling Down Physical Presence in China

    The iconic British department store Harrods has decided to scale back its physical presence in China. Its most significant move in this direction is the impending closure of its upscale hospitality spaces in Shanghai.

    Closure of Premium Spaces

    The Shanghai Tea Rooms and the ultra-exclusive private member club, The Residence, are scheduled to shut their doors in January. This move signifies the end of an era that began in 2020, initiated by an exclusive personal shopping concept that was only available via invitation.

    Both the Shanghai Tea Rooms and The Residence were designed with the intention of offering well-heeled Chinese customers a taste of classic British luxury. They were spaces where social, lifestyle, and retail experiences were effectively blended.

    Maintaining Presence through Other Channels

    Despite the closures, Harrods is not completely pulling out of China. The retailer aims to maintain its presence in the country by hosting exclusive pop-up events and activities. They also plan to continue their engagement with Chinese consumers through digital channels and by exploring local wholesale opportunities.

    Harrods has additionally discontinued its membership program, which was specifically designed for Chinese consumers. However, the retailer’s senior leadership is committed to supporting local partners and plans to conduct a series of visits over the next year.

    Earlier Developments

    In 2021, Harrods unveiled a second version of The Residence in Beijing. The brand then embarked on a partnership with The Opposite House, which is part of Swire Hotels’ Upper House Group, to launch The Harrods Residence Suite. This marked the opening of its first hotel suite in Asia.

    Questions & Answers

    Why is Harrods closing its hospitality spaces in Shanghai?

    Harrods is reducing its physical footprint in China and focusing more on digital channels, local wholesale opportunities, and exclusive pop-up events.

    Will Harrods completely withdraw from the Chinese market?

    No, despite the closure of some physical spaces, Harrods intends to maintain its presence in China through various channels and activities.

    What was the purpose of the Shanghai Tea Rooms and The Residence?

    These venues were designed to offer affluent Chinese customers a taste of traditional British luxury, blending elements of social, lifestyle, and retail experiences.

  • Yum China’s Bold Leap: 30,000 Stores by 2030 and Why the Best is Yet to Come

    Yum China’s Bold Leap: 30,000 Stores by 2030 and Why the Best is Yet to Come

    Yum China, operating KFC and Pizza Hut in China, is strategically planning to double its store count within the next six years. This ambitious plan is built on the company’s consistent growth record and the vast untapped potential of the Chinese consumer market.

    Aggressive Expansion Goals

    Yum China has put forth a bold vision to reach 20,000 stores by next year and more than 30,000 by 2030, a significant increase from its current count of over 12,600. The company’s plan is driven by an understanding of the vast potential that exists within the Chinese consumer market, the largest of its kind in terms of purchasing power. Despite 38 years of operation, Yum China currently serves only about a third of the Chinese population, according to CEO Joey Wat. Their midterm goal is to serve half of the population by 2028.

    The next phase of the company’s growth will be fueled by its expansion into lower-tier cities. These regions are experiencing swift income growth, but the availability of branded food service options remains limited. Wat expressed confidence in the company’s potential to capture a larger share of the market in these cities, backed by their innovative store model, high-quality products, and value for money.

    Broadening KFC and Pizza Hut’s Reach

    Plans are underway to increase KFC’s footprint in lower-tier cities from the current 2,500 to approximately 4,500 by 2030. Similarly, Pizza Hut sees opportunity in over 3,500 cities where it has yet to enter.

    In order to penetrate these markets, Yum China has reimagined its store formats. For instance, KFC’s “small town model,” which requires an investment of RMB 500,000 – 700,000, has already been introduced in 400 cities. Pizza Hut’s Wow stores have also demonstrated promising results with payback periods of just two to three years.

    New Concepts and Resurgence

    In addition to expanding its primary brands, Yum China is also betting on new concepts like KCoffee and KPRO. KCoffee, a coffee chain embedded within KFC locations, already operates over 1,800 stores and is projected to exceed 5,000 by 2029. KPRO, a light-meal concept that emphasizes energy bowls and healthier choices, has gained popularity in Tier 1 markets where consumers are seeking lighter options.

    Pizza Hut’s resurgence in the Chinese market is another notable accomplishment for the company. After years of strategic repositioning, Pizza Hut has reported consistent growth, expanding its reach to previously untapped cities and attracting new customer groups.

    Digital Advancements and Supply Chain Strength

    A key strength of Yum China is its advanced infrastructure, including a supply chain that can serve 5,000 cities. The company is also utilizing cutting-edge technology such as generative and agentic AI applications to enhance its operations and customer service.

    Future Projections

    By 2030, Yum China is aiming to have more than 30,000 stores, with expectations of an operating profit margin of at least 11.5% and more than $1 billion in annual capital returns starting in 2027. The company’s leadership remains confident in their ability to meet these ambitious targets and sees promising signs of improving consumer sentiment.

    Questions & Answers

    What is Yum China’s expansion plan?
    Yum China aims to reach 20,000 stores by next year and more than 30,000 by 2030.

    What strategies will Yum China employ to achieve these goals?
    The company plans to tap into the untapped potential of lower-tier cities, redesign store formats for quicker and affordable entry into new markets, and leverage advanced technology to enhance operations and customer service.

    What new concepts is Yum China introducing?
    Yum China is introducing KCoffee, a coffee chain embedded within KFC locations, and KPRO, a light-meal concept focused on healthier choices.

  • Peter Horng Takes the Helm: StanChart’s New Investment Advisory Head for Greater China and North Asia

    Peter Horng Takes the Helm: StanChart’s New Investment Advisory Head for Greater China and North Asia

    Standard Chartered’s private banking division recently announced the appointment of Peter Horng as the new head of investment advisory and product advisory for their Greater China and North Asia operations.

    Peter Horng’s Wealth Management Background

    Peter Horng, a wealth management professional with over a quarter-century of experience, has assumed his new role with Standard Chartered. Prior to this appointment, Horng served as the Hong Kong head of investment products and advisory at DBS. His extensive career has also included positions at prestigious financial institutions such as Citibank, HSBC, and UBS, with roles based in both New York and Hong Kong.

    Leadership Transition at Standard Chartered

    Horng takes over the reins from predecessor Muska Chiu, who has transitioned into a fresh role within the private bank. Chiu is now heading up a team responsible for advising ultra-wealthy clients.

    Chiu brings over two decades of experience in investment and product advisory to his new role. In his previous position, he led Standard Chartered’s investment advisory team for the Greater China and North Asia regions for a successful period of two years.

    Questions & Answers

    Who has Standard Chartered appointed as the new head of investment advisory for Greater China and North Asia?
    Standard Chartered has appointed Peter Horng to this position.

    What previous roles has Peter Horng held in the financial industry?
    Peter Horng has held numerous roles, most recently serving as the Hong Kong head of investment products and advisory at DBS. He has also held positions at Citibank, HSBC, and UBS in New York and Hong Kong.

    Who did Peter Horng replace in his new role at Standard Chartered?
    Peter Horng replaced Muska Chiu, who has transitioned into a new role within the private bank, guiding ultra-wealthy clients.

  • PDD Holdings Outpaces Forecasts with 14% Earnings Surge Amid E-Commerce Boom in China

    PDD Holdings Outpaces Forecasts with 14% Earnings Surge Amid E-Commerce Boom in China

    China-based e-commerce giant PDD Holdings exceeded expectations on Tuesday, reporting a 14% increase in third-quarter adjusted earnings. This indicates that the company’s aggressive marketing strategies and considerable discounts have successfully fueled demand within its domestic market.

    Surpassing Predictions

    PDD reported an adjusted earnings per share of 21.08 yuan (US$2.97), surpassing the average analyst forecast of 16.84 yuan. Despite these encouraging results, PDD’s US-listed shares, which operate the Pinduoduo platform in China and Temu internationally, experienced a 5% drop in early trading.

    Prominent Chinese retailers like PDD, Alibaba, and JD have been enticing local consumers with significant price reductions and billions of dollars’ worth of subsidized promotions. This strategy is in response to a lengthened period of diminished consumer confidence, caused by employment concerns and a weak property market. While these tactics have resulted in elevated sales, they are not reaching PDD’s usual high double-digit growth rates of past years.

    Moderating Revenue Growth

    PDD stated that its revenue increased by 9% in the quarter, while JD reported consistent sales growth in the previous week, demonstrating a robust demand for general merchandise and staples.

    PDD’s Co-CEO, Zhao Jiazhen, highlighted the competitive nature of the industry, noting, “We have witnessed many industry peers investing considerable capital into developing new business models, leading to increasingly fierce competition.” He further emphasized the company’s intention to continue investing in merchant support programs and platform upgrades, leading to expected financial fluctuations in future quarters.

    International Challenges

    Globally, cross-border platforms like Temu and Shein, known for selling inexpensive goods from China to the rest of the world, are facing increasing pressure. This comes after the US abolished duty-free exemptions on parcels worth less than US$800, and the EU announced plans to impose duties on low-cost packages beginning next year. Furthermore, Temu was recently flagged by a French consumer watchdog for selling illegal products.

    Co-CEO Chen Lei voiced concerns over the evolving trade barriers, stating, “We are witnessing a significant shift in the regulatory environment for the global business. We will inevitably face greater challenges and uncertainties.”

    For the quarter ending September 30, PDD reported revenue of 108.28 billion yuan, slightly lower than the 108.41 billion yuan average of 15 analyst estimates compiled by LSEG. Adjusted net income attributable to PDD’s shareholders was 31.38 billion yuan, an increase from 27.46 billion yuan a year earlier.

    Subdued Singles’ Day Sales

    China’s biggest shopping event, the Singles’ Day sales festival, concluded on a quiet note this year. Many retailers started offering discounts in the first half of October, which made it the longest festival to date. Pinduoduo saw an 11.7% sales growth in this period, while JD and Alibaba reported increases of 8.3% and 9.3% respectively.

    Questions & Answers

    What has led to PDD’s increased earnings in the third quarter?
    The rise in PDD’s earnings can be attributed to heavy marketing spending and steep discounts which bolstered demand in its home market.

    What challenges are PDD and other cross-border platforms facing?
    These platforms are facing regulatory pressure, with the US scrapping duty-free exemptions on low-value parcels and the EU planning to introduce duties on low-cost packages starting next year. There are also concerns over the sale of illicit products.

    How did the major Chinese retailers perform during the Singles’ Day sales festival?
    Despite being the longest festival to date, the event ended on a subdued note. Pinduoduo, JD, and Alibaba saw sales growth of 11.7%, 8.3%, and 9.3% respectively.

  • Air China Cargo Leaps Ahead with First-ever A350F Freighter Purchase in Mainland China

    Air China Cargo Leaps Ahead with First-ever A350F Freighter Purchase in Mainland China

    Air China Cargo has made history by becoming the first purchaser of the highly-anticipated A350F on the Chinese mainland, following the signing of a purchase agreement for six units of the cutting-edge aircraft.

    Boosting Efficiency with the A350F

    According to Wang Hongyan, the Vice President of Air China Cargo, the inclusion of the A350F in the company’s diverse cargo fleet will bolster operational and maintenance efficiency. He believes that the A350F will enhance the airline’s resilience and ensure its long-term stability.

    Airbus EVP Sales of the Commercial Aircraft business, Benoît de Saint-Exupéry, expressed his delight in welcoming Air China Cargo as the newest customer for the A350F. The advanced aircraft is expected to bring unprecedented capacity, loading flexibility, and next-generation efficiency and performance to the company. Airbus is committed to ensuring a smooth transition for Air China Cargo with the integration of the A350F.

    Air China Cargo’s Expanding Operations

    Air China Cargo, which is based in Beijing, proudly carries the Chinese national flag and stands as the country’s sole cargo airline to do so. Since June 2025, the airline has been managing all cargo aircraft operations across North, East, South, and Southwest China. The organization has established 25 exclusive cargo routes connecting major regions and cities across the globe, including destinations in the Asia-Pacific, Europe, the Americas, and the Middle East. This extensive network is further complemented by over 1,500 ground trucking routes worldwide.

    The Advanced A350F Aircraft

    The A350F, known as the most technologically advanced freighter aircraft in the world, is designed to cater to the changing demands of the global air cargo market. It boasts a maximum capacity of 111 tonnes and a range of 8,700 km. Equipped with Rolls-Royce Trent XWB-97 engines, the A350F promises a reduction in fuel consumption and CO₂ emissions by up to 40% compared to its predecessors.

    Constructed with over 70% advanced materials, the A350F is significantly lighter than its rivals, weighing in at 46 tonnes less. Its main deck cargo door is also the largest in the industry. The aircraft fully complies with the ICAO’s 2027 CO₂ standards, and by the time it is commissioned, it is expected to be 50% SAF capable, with an ambition of reaching 100% by 2030. The assembly of test aircraft is currently in progress in Toulouse.

    By the conclusion of October 2025, the newest widebody A350 Family had received a total of 1,445 orders from 63 different global customers. This includes 74 orders for the all-new A350F from 12 different customers.

    Questions & Answers

    What is the A350F’s cargo capacity and range?
    The A350F can carry up to 111 tonnes and cover a range of 8,700 km.

    What is the expected reduction in fuel consumption and CO2 emissions with the A350F?
    The A350F, powered by Rolls-Royce Trent XWB-97 engines, is expected to offer up to a 40% reduction in fuel consumption and CO₂ emissions.

    How does the A350F stand in comparison to its competitors in terms of weight?
    The A350F is made of over 70% advanced materials, making it lighter than its competitors by 46 tonnes. It also features the industry’s largest main deck cargo door.

  • China’s Economy Under Pressure: Factory Output And Retail Sales Hit Yearly Lows

    China’s Economy Under Pressure: Factory Output And Retail Sales Hit Yearly Lows

    October witnessed the slowest growth in China’s factory output and retail sales in more than a year, applying added pressure on policymakers to overhaul the nation’s $19 trillion export-driven economy. Increasing supply and demand strains are poised to further hinder growth.

    For many years, those accountable for maintaining the momentum of the world’s second-largest economy had the choice of stimulating its massive industrial complex to enhance exports if domestic consumer spending dwindled. Alternatively, they could delve into public funds to finance GDP-boosting infrastructure projects.

    However, the tariff war initiated by former US President Donald Trump underscores the manufacturing behemoth’s dependency on the world’s most extensive consumer market. There are limits to how much growth the Chinese economy can derive from constructing more industrial parks, power substations, and dams.

    The Current State of Affairs

    The indicators released last Friday provide little optimism for a rapid recovery. As each month’s data worsens, the call for reform becomes more critical.

    According to data from the National Bureau of Statistics (NBS), industrial output experienced a yearly growth of 4.9% in October. This marks the weakest annual growth since August 2024, compared to a 6.5% increase in September, falling short of the anticipated 5.5% surge.

    Meanwhile, retail sales, a measure of consumption, saw a 2.9% expansion last month, which is also their slowest pace since last August. This decelerated from a 3.0% growth in September, albeit exceeding the projected gain of 2.8%.

    Fred Neumann, Chief Asia Economist at HSBC, remarked, “China’s economy is facing pressures from all sides.” He believes that the robust support from exports in the recent quarters will be challenging to maintain into the next year, even if US import tariffs are now lower than earlier feared.

    Policy Implications and Economic Outlook

    Policymakers are aware of the need for change to rectify historical supply-demand imbalances, spur household consumption, and confront the enormous local government debt that complicates provinces’ self-sufficiency.

    However, they also understand that structural reform will be challenging and politically risky, particularly at a time when the trade war has heightened economic pressure.

    Last week, separate data revealed that China’s exports unexpectedly collapsed in October. This is as manufacturers grapple to secure profits in other markets after months of front-loading intended to outpace Trump’s tariff threats.

    Contrary to expectations, China’s car sales also broke an eight-month growth streak. This is concerning, given that the fourth quarter is typically the strongest for auto sales, and the slump occurred despite an extra day due to a national holiday in October compared to 2024.

    Questions & Answers

    What are the main challenges faced by the Chinese economy?
    The Chinese economy is currently grappling with a slower growth pace in factory output and retail sales, increased supply and demand strains, manufacturers’ struggle to stay profitable because of the tariff war, and an unexpected decline in car sales.

    What measures are needed to boost China’s economy?
    Policymakers must address historical supply-demand imbalances, promote household consumption, and tackle the enormous local government debt. Structural reform, while challenging and politically risky, is crucial to enhance the nation’s economic outlook.

    How has the trade war affected China’s economy?
    The trade war has underscored China’s dependency on the global consumer market and increased economic pressure, leading to an unexpected collapse in exports in October. Manufacturers have been struggling to secure profits in other markets as they try to outpace tariff threats.

  • Golden Milestone: China Strikes Largest Gold Deposit Since 1949 Worth Nearly $193 Billion

    Golden Milestone: China Strikes Largest Gold Deposit Since 1949 Worth Nearly $193 Billion

    A significant gold deposit estimated to hold approximately 1,444 tonnes of reserves, valued at nearly US$193 billion, has been identified in China. This monumental find is the largest for the nation since 1949.

    The Discovery

    The find, termed as the Dadonggou deposit, is situated in China’s northeastern Liaoning Province. According to the country’s Ministry of Natural Resources, it is estimated to contain around 1,444.49 tonnes of gold within 2.586 billion tonnes of ore. Despite the ore being of a low grade, with an average grade of 0.56 grams per tonne, the sheer size of the deposit has earned it the title of the largest single gold discovery in China since 1949.

    With current market rates, the estimated value of the gold deposit is over 166 billion euro (US$192.9 billion).

    Collaborative Development

    The development of the Dadonggou mine is set to be a collaborative effort, with the China National Gold Group, Liaoning Mineral Geology Group, and the Yingkou Municipal Government partnering up. Investment plans from 2024 to 2027 indicate an estimated expenditure of over 20 billion yuan (US$2.82 billion). This investment will be directed towards establishing a comprehensive industry chain which includes exploration, mining, processing, smelting, and gold jewelry production.

    Previous Discoveries

    In the past year, China has reported several similar gold deposit discoveries, such as a substantial find in Hunan province. Prior to these discoveries, the world’s largest known gold deposits typically held only a few hundred tonnes.

    Industry estimates previously suggested that around 3,000 tonnes of gold remained undiscovered in China. This figure was considered to be a quarter of the untapped reserves in Russia and Australia. However, the frequency of new discoveries implies that China’s gold reserves could be considerably larger than previously believed.

    Recent Trends

    China has been increasing its mineral exploration activities in recent years. In 2024, the country produced 377.24 tonnes of gold, marking a 0.56% increase from the previous year. Domestic consumption of gold reached 985.31 tonnes, with the demand for gold bars and coins rising by over 24%.

    This latest discovery coincides with an increase in the global demand and price for gold. The value of the precious metal has soared by over 50% this year, reaching a peak of $4,381.21 per ounce on October 20. Factors contributing to this surge include a weaker dollar, geopolitical tensions, and aggressive central bank buying in emerging economies aiming to diversify their reserves.

    Questions & Answers

    Where was the largest gold deposit found in China?
    The largest gold deposit in China, named the Dadonggou deposit, was discovered in the northeastern Liaoning Province.

    What is the estimated value of the Dadonggou deposit?
    The estimated value of the Dadonggou deposit, at current prices, is approximately 166 billion euro or US$192.9 billion.

    Who will be responsible for the development of the Dadonggou mine?
    The development of the Dadonggou mine will be a joint project between the China National Gold Group, Liaoning Mineral Geology Group, and the Yingkou Municipal Government.

  • China Mobile Boosts Global Connectivity with Pioneering 2Africa and SEA-H2X Submarine Cable Initiatives

    China Mobile Boosts Global Connectivity with Pioneering 2Africa and SEA-H2X Submarine Cable Initiatives

    In the first half of November 2025, China Mobile achieved substantial growth in its underwater cable investments, strengthening its influence in promoting worldwide digital connectivity.

    China Mobile Activates 2Africa Submarine Cable

    In Nairobi, Kenya, China Mobile spearheaded a significant event to mark the activation of the 2Africa submarine cable’s eastern sections, connecting South Africa, Kenya, Djibouti, Marseille, and Egypt. The event aimed to showcase next-generation infrastructure and intelligent connectivity platforms, designed to speed up digital transformation for African service providers and businesses.

    Guo Haiyan, the Ambassador of the People’s Republic of China to Kenya, emphasized that digital cooperation is becoming a crucial component of collaboration between China and Africa. The activation of the 2Africa submarine cable’s eastern section and the introduction of China Mobile’s AI+ Cloud-Network Convergence Industry Solutions are a testament to the robustness of China-Africa digital collaboration.

    Furthermore, she noted that Kenya is a crucial ally for China in pursuing digital transformation and pledged to continue sharing expertise to bolster Africa’s digital economy. Guo expressed hope that both nations would intensify collaboration to create an open and inclusive digital governance ecosystem that encourages mutual growth and prosperity.

    Simultaneously, Hon. William Kabogo Gitau, Kenya’s Cabinet Secretary for Information, Communications, and the Digital Economy, hailed the 2Africa project as a significant achievement in China-Africa collaboration. He believed the activation of the eastern section would greatly improve East Africa’s international communications capacity and strengthen digital connections between China and Africa.

    Li Huidi, Executive Vice President of China Mobile, stressed that AI and 5G technologies are powering Africa’s economic transformation and expressed readiness to cooperate closely with Kenya and other African countries to establish an intelligent foundation by integrating 2Africa cable resources and enhancing AI computing capabilities.

    SEA-H2X Cable Reaches Hong Kong

    In another notable achievement, China Mobile successfully completed the landing of the Hong Kong segment of the Southeast Asia-Hainan-Hong Kong (SEA-H2X) international submarine cable, marking an important milestone in the construction of the high-capacity network system.

    As the principal initiator and primary investor of the SEA-H2X project, China Mobile oversaw the Hong Kong landing, ensuring its smooth and timely execution.

    China Mobile’s investment in the SEA-H2X project strengthens its core capabilities in digital communication in the Asia-Pacific region and improves its overall competitiveness in global telecommunications. This venture laid a robust network foundation for the long-term growth of the regional digital economy and injected sustained impetus into worldwide digital interconnectivity.

    Questions & Answers

    What is the significance of the 2Africa submarine cable’s activation?
    The activation of the 2Africa submarine cable’s eastern sections presents a crucial step in enhancing digital collaboration between China and Africa. It will significantly improve East Africa’s international communications capacity and strengthen digital connections between the two regions.

    What is the SEA-H2X international submarine cable?
    The SEA-H2X is a high-capacity network system connecting several strategic locations across Asia. China Mobile successfully completed the landing of the Hong Kong segment of the SEA-H2X cable, marking a key milestone in its construction.

    How does China Mobile’s investment in SEA-H2X impact the company and the region?
    China Mobile’s investment in the SEA-H2X project solidifies its core strengths in digital communication in the Asia-Pacific region, enhancing its competitiveness in global telecommunications. It provides a robust network foundation for the growth of the regional digital economy and boosts worldwide digital interconnectivity.

  • China’s Economic Troubles Deepen: Factory Output, Retail Sales Experience Record Lows

    China’s Economic Troubles Deepen: Factory Output, Retail Sales Experience Record Lows

    In October, China’s factory output and retail sales experienced their slowest growth in over a year, which is placing increasing pressure on policy makers to overhaul the $19 trillion export-driven economy. This comes as the country faces growing supply and demand challenges that threaten to further hamper growth.

    China’s Economy Dilemma

    For several decades, the officials responsible for maintaining China’s bustling economy, the world’s second largest, have had the option to stimulate its extensive industrial sector to increase exports if domestic consumer spending slackens. Alternatively, they could dip into public funds to finance infrastructure projects to boost the country’s GDP.

    However, the ongoing tariff war initiated by former U.S President Donald Trump has underscored China’s dependence on the world’s largest consumer market. It emphasizes that even an economy as large as China’s can only derive limited growth from developing more industrial parks, power substations, and dams.

    Recent economic indicators offer little promise of a swift recovery. The more the economic data deteriorates month by month, the more urgent the need for reform becomes.

    Slowing Industrial Output and Retail Sales

    According to data from the National Bureau of Statistics (NBS), industrial output in October grew by only 4.9% year-on-year, marking the slowest annual pace since August 2024. This is lower than the 6.5% growth seen in September and falls short of the 5.5% increase forecasted by economists.

    Retail sales, an indicator of consumption, rose by a mere 2.9% last month, also marking their slowest pace since August of the previous year. This is a decrease from the 3.0% growth in September, although it surpassed the forecasted growth of 2.8%.

    Challenges and Potential Reforms

    Policy makers are acknowledging the need for changes to rectify historical supply-demand imbalances, enhance household consumption and address the massive local government debt. This debt is preventing provinces, many of which have economies as large as those of nations, from becoming self-sufficient.

    However, they also understand that structural reform will be painful and politically risky, particularly at a time when trade tensions have increased pressure on the economy.

    Another surprise was China’s auto sales, which despite expectations of a surge ahead of the phase-out of various tax breaks and government incentives, ended an eight-month growth streak.

    Economy Undermined by Structural Issues

    Fixed asset investment contracted by 1.7% in the first 10 months of the year compared to the same period in the previous year. This decrease was far more significant than the anticipated 0.8% drop.

    Furthermore, a prolonged downturn in the country’s vital property sector, a significant repository of household wealth, showed no signs of letting up, with new home prices falling at their most rapid monthly rate in a year.

    Despite these challenges, the ruling Communist Party of China has pledged to considerably increase household consumption’s share of GDP, while also emphasizing the need to strengthen its vast industrial base.

    Questions & Answers

    What is the status of China’s factory output and retail sales?
    In October, China experienced the slowest growth in factory output and retail sales in more than a year, which is placing increased pressure on the economy.

    Has China’s dependence on the world’s largest consumer market been highlighted recently?
    Yes, the ongoing tariff war initiated by former U.S. President Donald Trump has underscored China’s dependence on the world’s largest consumer market.

    What challenges is China’s economy currently facing?
    China’s economy is facing numerous challenges, including a slowdown in industrial output and retail sales, a prolonged downturn in the property sector, and the need for structural reform to rectify historical supply-demand imbalances.

  • A2 Milk Amplifies China Connection: Targets Growth in English-Label Infant Formula Sales

    A2 Milk Amplifies China Connection: Targets Growth in English-Label Infant Formula Sales

    A2 Milk, a renowned dairy company, has expanded its enduring alliance with China State Farm Agribusiness Holding Shanghai Co (CSFA), with the inclusion of English-label (EL) infant formula within the cross-border e-commerce realm.

    Introducing A2 Genesis Product

    The initial focus of the rollout will be on the A2 Genesis product, a premium item in their line-up. Subsequently, other EL formulas, like A2 Platinum, will also be introduced to the market.

    New Agreement Enhances Distribution and Confidence

    In the newly ratified agreement, CSFA will now function as the sole import agent and principal distributor for EL products. This strategic move will allow A2 Milk to improve logistics, strengthen its retail footprint, and utilize the reputation of the state-owned enterprise to reinforce consumer confidence.

    Targeting the HMO Segment

    A2 Genesis was launched in the latter half of this year. This new product targets the rapidly expanding human-milk-oligosaccharide (HMO) sector, with a specific focus on gut health and immunity.

    David Bortolussi, CEO of A2 Milk, described this development as a pivotal component in the company’s China strategy. Meanwhile, Zhang Lei, Chairman of CSFA, portrayed this arrangement as a benchmark of successful collaboration in the dairy nutrition field.

    Expanded Agreement and Recent Acquisition

    The augmented agreement was officially established at the China International Import Expo in Shanghai, after a year of diligent preparation.

    Additionally, in September, A2 Milk successfully concluded its purchase of Yashili New Zealand’s Pokeno nutritional manufacturing facility for $282 million from China’s Mengniu Dairy Group.

    Questions & Answers

    What is the primary focus of A2 Milk’s initial rollout with CSFA?
    The primary focus of the initial rollout will be the premium A2 Genesis product, which targets the rapidly growing HMO sector, with an emphasis on gut health and immunity.

    What is the role of CSFA under the new agreement with A2 Milk?
    Under the new agreement, CSFA will function as the exclusive import agent and principal distributor for EL products, which will help A2 Milk streamline logistics, expand its retail presence, and build consumer confidence.

    What significant acquisition did A2 Milk make recently?
    In September, A2 Milk completed the acquisition of Yashili New Zealand’s Pokeno nutritional manufacturing facility for $282 million from China’s Mengniu Dairy Group.

  • China’s Singles’ Day Sales Fall Flat Amid Consumer Apathy and Economic Concerns

    China’s Singles’ Day Sales Fall Flat Amid Consumer Apathy and Economic Concerns

    With the conclusion of China’s Singles’ Day sales festival, the largest shopping event worldwide, it’s clear that the country’s most significant e-commerce platforms were unable to stimulate widespread consumer enthusiasm. This comes in light of the lingering property crisis in China and rising concerns over income security, making it increasingly challenging to convince consumers to part with their money.

    Retailers’ Response

    Retailers, in response to the economic climate, have amplified their efforts in providing year-round discounts, introducing billions in consumer subsidies and coupons, and extending the duration of sales events. For this year’s Singles’ Day, many platforms commenced their sales in early October, making it the longest festival yet.

    However, the response has been mixed, according to Josh Gardner, CEO of Kung Fu Data, a company that manages online stores in China for various global fashion and lifestyle brands. He described the sales sentiment during the Singles’ Day period as “muted,” noting that some brands had performed exceptionally well while others observed flat or minor changes compared to the previous year.

    Last year’s sales event, also known as “Double 11” in China, reached an impressive total of 1.44 trillion yuan (US$202 billion). However, the figures for this year remain undisclosed, as companies such as Alibaba and JD have stopped revealing their total Singles’ Day sales in recent years.

    Platform Sales Performance

    JD reported on Wednesday that its turnover reached a “new high,” with a 40% increase in the number of users placing orders and a nearly 60% increase in the number of orders. Several brands on JD.com, including Bellamy Organic baby products from Australia, the American pet brand Instinct, and French skincare brand Avène, saw a surge in sales by over 150% compared to the previous year.

    Meanwhile, Alibaba’s Tmall and Taobao platforms have continued their Double 11 deals until November 14, yet they have not released any information regarding their sales performance for the entire period.

    Gardner reported that the Singles’ Day sales surge is not as robust as it was in the past, but October and November still account for approximately 30% to 40% of annual revenue for the brands he manages.

    Strategies for Attracting High-Spenders and International Growth

    In an attempt to lure high-spenders, Alibaba pledged 50 billion yuan in subsidies specifically for its 53 million 88VIP members in October. The company reported a 39% increase in daily active buyers from the previous year during the festival among those members.

    Moreover, Alibaba’s Taobao introduced Singles’ Day-related sales in over 20 countries this year, signalling a widespread push from Chinese e-commerce firms for international growth. According to a report released by Bain in late October, it is crucial for Chinese e-commerce companies to pursue global growth, considering the lukewarm consumer outlook domestically.

    Questions & Answers

    What is Singles’ Day in China?
    Singles’ Day is a Chinese sales festival held annually on November 11. It’s considered the world’s largest shopping event, with massive discounts offered by e-commerce platforms to stimulate consumer spending.

    How did Singles’ Day perform this year?
    This year’s Singles’ Day results were mixed. Some brands reported exceeding sales expectations, while others experienced flat or minor changes compared to the previous year.

    What are some strategies adopted by retailers during Singles’ Day?
    Retailers have introduced year-round discounts, billions in consumer subsidies and coupons, and extended sales events. Some are also attempting to attract high-spenders with exclusive offers and expanding their sales to international markets.