Economics

Following the recent completion of Alibaba's three-year restructuring development, and months of beta testing, Taobao users will soon be able to use WeChat Pay, in addition to the current digital payment platform Alipay. Alibaba Group's core e-commerce division Taobao and Tmall Group (TTG) is planning to implement the change in the coming month. For years, Taobao and WeChat have had a contentious rivalry – almost entirely blocking each other's services. In 2013, WeChat blocked Alibaba's messaging app Laiwang, which resulted in a string of restrictions from both sides. The two companies have been gradually working to lift these restraints in recent years; Taobao tested a WeChat QR code payment system in 2023. However, the process was problematic and drew criticism from users. For WeChat’s parent company Tencent, the benefits of Taobao allowing WeChat Pay are clear: immediate access to a new revenue stream – Taobao will have to pay a payment processing fee to WeChat for each transaction completed via WeChat Pay. Conversely, Taobao will likely see an increase in spending and merchant's advertising purchases. Earlier steps have laid the groundwork for this collaboration; Alibaba and Tencent have begun cooperating by allowing WeChat Channels, Moments, and mini program ads to…Original link

Outbound travelers will be able to explore downtown duty-free shopping in more Chinese cities and more easily access consumer goods of fashionable Chinese brands, an official statement said on Tuesday. A duty-free store will be opened in each of the eight cities, namely Guangzhou, Chengdu, Shenzhen, Tianjin, Wuhan, Xi'an, Changsha and Fuzhou, as required by a recently released interim measures for the administration of duty-free shops in cities. The rules will apply to six existing duty-free shops in Beijing, Shanghai, Qingdao, Dalian, Xiamen and Sanya immediately after being put to effect on Oct 1, said the statement jointly made by the Ministries of finance, commerce, culture and tourism, the General Administration of Customs and the State Administration of Taxation. Another 13 foreign exchange goods duty-free shops shall be transformed into downtown duty-free shops within three months from the commencement of the new rules, and shall begin to operate only after passing the customs inspection. The rules stipulated that duty-free shops in cities are for travelers, including but not limited to the Chinese nationals, who will be departing the country by air or international cruise within 60 days. Travelers can make purchases in advance at these stores and pick up their goods…Original link

China Railway Shanghai Group introduced three new high-speed rail passes designed to meet travelers' diverse travel needs on Aug 26. These passes offer tourists the convenience of "one purchase, three destinations, valid for seven days", providing a flexible and cost-effective way to explore three different cities. The passes cover popular routes such as Shanghai-Dongtai-Yangzhou, Hangzhou-Qiandao Lake-Yellow Mountain, and Nanjing-Huai'an-Yancheng. Travelers can easily book tickets via the 12306 app or website, or at ticket machines, and use their ID to board any eligible train within the seven-day period. For example, the Hangzhou-Qiandao Lake-Yellow Mountain pass costs 210 yuan ($29.5), significantly cheaper than buying individual tickets along the same routes. These passes, with flexible booking and refund options, aim to enhance the travel experience, catering to the growing trend of leisurely tourism in the region.Original link

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Universities in Hong Kong and on the Chinese mainland have become venture capital players, adding teeth to their investments and driving the commercialization of technology and innovation breakthroughs. Li Xiaoyun reports from Hong Kong. Blackstone - the world's largest alternative asset manager - was grappling with a surge in redemption demands in its real-estate income trust in the fourth quarter of 2022 as investors fretted about the global economic outlook. The turmoil took a heavy toll on the asset management giant's share price, sending it into a nosedive of nearly 20 percent in December that year to its lowest level since April 2021. However, the company's fortunes took a turn for the better early last year when UC Investments, which manages the University of California's investment portfolio of $169 billion, vowed to sink $4 billion into the trust. It drove Blackstone's share price up more than 6 percent to $82.40 in the two trading days following the decision. UC Investments' move reflects a growing trend among the world's top tertiary education institutions of not only being active in scientific research, but also playing the role of an investor, often generating returns that exceed the market average. University-managed investments generally comprise…Original link

Industrial upgrades and restructuring have boosted foreign trade in the Yangtze River Delta region both in terms of value and volume, said industry experts. The total import and export value of the region grew 5.8 percent year-on-year to hit a new high of 9.1 trillion yuan ($1.3 trillion) during the first seven months, said Shanghai Customs on Sunday. The region, which contributed about 24 percent to China's GDP in 2023, accounted for 36.7 percent of the country's total trade value in the January-July period. Nearly 181 billion yuan worth of cars were exported from the region during the period, up 2.7 percent year-on-year and accounting for 39 percent of the country's total auto exports. The export value of ships spiked 79 percent from a year earlier to top 111.4 billion yuan, accounting for 64.1 percent of China's total. In June, Anhui province in the northern part of the Yangtze River Delta region exported over 9.1-billion-yuan worth of vehicles, up 47.3 percent year-on-year and hitting a new high. The province, which is home to well-known domestic automakers such as Chery and JAC Group, saw its auto export value spike 32 percent to approach 40.3 billion yuan in the first half. While…Original link

Last year saw major layoffs and salary cuts throughout all sectors in China. Annual reports from 23 of China’s biggest firms – including the top five companies in real estate, internet, automotive and financial industries, as well as three of the largest electronic car manufacturers – showed that 14 of them downsized their work forces, while others slashed salaries and cut staff related expenses. China’s largest property developer, Poly Real Estate, fired 16.3% of their employees – a whopping 11,000 jobs – in the past year. Despite subsidies provided by the government to support the market, real estate investments and sales have remained slow. Last year, Tencent reduced their number of employees by 2.8% (3,000 jobs) and continued the trend with another 630 layoffs in the first quarter of 2024. In addition, Weibo, Xiaomi, JD.com, Didi Chuxing and Bilibili all announced plans to reduce their staff earlier this year. The automotive industry has also been hit hard, and several of the largest Chinese electric vehicle companies such as Nio, Xpeng and Li Auto have all decreased their budgets for staff. Beijing-based Li Auto laid off 18% of their employees in recent months, after expanding by an ambitious 62% just last year. Image…Original link

It’s a new era of payment convenience for international residents in Beijing and visitors to the capital city. A series of updates to Weixin Pay (a payment feature within WeChat, commonly known as WeChat Pay) and Alipay services, as well as new currency exchange services at the airport, making payments considerably more accessible for foreign visitors. That means you can breathe a sigh of relief when friends and family come to see the sights of the capital! And just in time, too; these service improvements come just as China is easing visa requirements. Dozens of countries have been added to the country’s visa-free list for stays of up to 15 days, while in other cases, visitors no longer need to provide an invitation letter. In other words, it's never been easier to convince loved ones and old pals overseas to come over and see the Summer Palace. And in terms of payment options, it’s never been easier for you to cover your expenses as an international Beijinger. Spearheaded by government efforts, these updates send a clear message: as a resident or visitor, you are welcome! Here’s a quick update on what new services have popped up and how you can take…Original link

The scene of the opening ceremony. The opening ceremony of the Overseas Chinese College (North Europe) of Guangzhou Open University took place on Aug 17 in Copenhagen. This event signifies the establishment of a new hub for cooperation and communication among overseas Chinese, offering a platform for Danish youth interested in traditional Chinese culture. Shen Ang, the director of the Chinese Embassy in the Kingdom of Denmark, attended the ceremony to extend congratulations and encourage the children to bravely explore and study diligently. He urged them to become ambassadors for promoting Chinese culture and expressed optimism for future Sino-Danish cultural and educational cooperation. During the ceremony, the head and founder of the Overseas Chinese College (North Europe) expressed that having deeply experienced the strong emphasis placed on overseas Chinese language education work, she is committed to upholding the mission and running the college diligently.Original link

The first cargo train running on a regular schedule between Chongqing and Shenzhen departs from Chongqing on Tuesday. Yi Dong   Since the launch of Sino-European train services Aug. 18, 2020, some 474,000 tons of goods valued at 16.1 billion yuan (US$2.26 billion) have been transported to Europe. Operating on 19 routes that connect Shenzhen with 44 countries across Europe and Asia, these trains have become a crucial link in the international supply chain.   With these trains, more than 100 types of products manufactured in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) are now reaching European markets efficiently, including household appliances, garments, footwear, vehicles and auto parts, intelligent equipment, electronic products, and machinery. According to customs statistics, the export value of these products has been growing by over 20% annually, showcasing the robust performance of this logistics corridor.   Sino-European trains stand out for their efficiency, stability, and convenience, playing an increasingly vital role in economic and trade exchanges between Shenzhen and Europe, according to customs.   "Sino-European trains provide a fast and stable logistics channel for export-oriented enterprises in the GBA. We can tailor diverse transportation services based on different delivery times, destinations, and freight rate requirements, which…Original link

China's GDP grew by 5.5 percent year-on-year in the first half of the year to 59.3 trillion yuan ($8.3 trillion), posting a steady economic rebound, the National Bureau of Statistics said on Monday. In the second quarter, the economy rose by 6.3 percent compared with a year earlier, up from 4.5 percent in the first quarter of the year. On a quarter-on-quarter basis, China's GDP increased by 0.8 percent in the second quarter of the year, the NBS said. Figures released by the NBS showed China's value-added industrial output, a gauge of activity in the manufacturing, mining and utilities sectors, grew by 4.4 percent in June from a year earlier after a 3.5 percent rise in May. In the first half of the year, value-added industrial output grew by 3.8 percent compared to the same period last year, while in the first quarter, it rose by 3 percent from a year earlier. Retail sales, a key measurement of consumer spending, grew by 3.1 percent year-on-year in June, down from the 12.7 percent growth in May. In the first half of the year, retail sales rose by 8.2 percent compared to the same period last year, while in the first quarter,…

BEIJING, June 12 (Xinhua) -- The Chinese yuan weakened against a basket of currencies last week, according to the China Foreign Exchange Trade System (CFETS). The CFETS yuan exchange rate composite index, which measures the yuan's strength relative to a basket of currencies, went down 0.49 points from the previous week to 97.65, according to the CFETS. The index compares the yuan with the value of 24 currencies, including the U.S. dollar, euro and Japanese yen. Last week also saw an index that measures the yuan against the Bank for International Settlements currency basket edge down 0.49 points from the previous week to 102. The index measuring the yuan against the Special Drawing Rights basket lost 0.33 points week on week to 93.74.Original link

China's first-quarter GDP expanded 4.8 percent compared to a year ago amid pressures from a more complicated and grimmer international environment and a resurgent of COVID-19 cases, the National Bureau of Statistics said on Monday. The country's gross domestic product reached 27.02 trillion yuan ($4 trillion) in the first quarter. On a quarter-on-quarter basis, China's GDP grew by 1.3 percent in the first three months of the year, the NBS said. China, the world's second-largest economy, maintained steady growth in the first quarter with the help of the government's effective measures to prevent and control the pandemic, Fu Linghui, spokesman with the NBS, told at a news conference in Beijing. The country's value-added industrial output grew 6.5 percent on a yearly basis in the first quarter, with the March reading jumping 5 percent year-on-year, the NBS data showed. Retail sales grew by 3.3 percent to 10.87 trillion yuan in the first quarter from the same period last year. Fixed-asset investment rose by 9.3 percent year-on-year and 0.61 percent quarter-on-quarter in the January-March period, the bureau said. The surveyed urban jobless rate came in at 5.8 percent last month, up from 5.5 percent in February, the bureau said. The NBS warned…Original link

• Beijing has rolled out tax relief and other beneficial policies such as more favourable loan rates and rent exemptions, rather than cash handouts • Some Omicron-hit regions such as Shanghai and Tianjin are also implementing local support measures, but analysts still expect a big hit to consumption Beijing says it has stepped up relief measures for coronavirus-hit businesses, as the highly contagious Omicron variant has spread to 28 of the country’s 31 provincial jurisdictions and authorities stick to their zero-Covid strategy that involves large-scale lockdowns and mass testing. In addition to a planned 2.5 trillion yuan (US$393 billion) tax cut, authorities have also rolled out a variety of supportive measures, including rent exemption and credit support. Relief packages announced so far Premier Li Keqiang announced the 2.5 trillion yuan tax-cut package at the “two sessions” in early March, and it is considerably larger than last year’s 1.1 trillion yuan.   Key points: Value-added tax (VAT) will continue to be exempted for small taxpayers – those with monthly sales revenue of below 150,000 yuan Income tax will be halved if annual payment is between 1 million and 3 million yuan 1.5 trillion yuan worth of VAT refunds planned for this…Original link

The 131st China Import and Export Fair, also known as the Canton Fair, will be held online from April 15 to 24. Themed as facilitating dual circulation, this year's event will showcase 16 product categories across 50 exhibition areas. More than 25,000 businesses at home and abroad will participate online. The exhibitions cover online display platform, business matchmaking and cross-border e-commerce. During the upcoming 10-day session, this year's Canton Fair will focus on making its business matchmaking services more efficient and making the platform more easy to use for both exhibitors, purchasers and guests. The rural vitalization zone will continue to be set up this year to bring together the products of the enterprises coming from areas that have been lifted out of poverty. The 131st Canton Fair is free of charge both for the participating businesses and the cross-border e-commerce platforms involved in the online sessions. Domestic and international companies are welcome to join in this mega online event to seek business opportunities and common development. As China's No. 1 fair, the Canton fair is deemed to be the barometer of China's foreign trade. With 65 years of history (founded in 1957), it is a comprehensive international trading event.Original link

China's gross domestic product (GDP) exceeded 114 trillion yuan (about $18.1 trillion) in 2021, registering an increase of 8.1 percent over the previous year and an average growth of 5.1 percent over the preceding two years, the National Bureau of Statistics (NBS) said in a release (link in Chinese) on Monday (28th, Feb, 2022). In 2021, consumption contributed 5.3 percentage points to GDP growth, with investment making up 1.1 percentage points and exports 1.7 percentage points, according to the release. The country's total retail sales of consumer goods reached 44.1 trillion yuan last year, up 12.5 percent compared to the year before. Nationwide investment in fixed assets (excluding rural households) reached 54.5 trillion yuan, a 4.9-percent jump over the previous year. China's foreign trade volume of goods reached 39.1 trillion yuan in 2021, up 21.4 percent year on year. Exports and imports respectively increased 21.2 percent and 21.5 percent in 2021. The NBS said that China's population rose to 1.41 billion by the end of 2021. The country's per capita GDP was 80,976 yuan, and disposable income averaged 35,128 yuan, with a year-on-year increase of 8 percent and 9.1 percent respectively. Rising GDP also means more jobs. China's job market…Original link

When handling cash deposits and withdrawals on a single transaction of 50,000 yuan or more, or on foreign currency equivalent to up to $10,000, the identity of the individual customer shall be confirmed and verified, and the source or purpose of the funds shall be registered, according to the jointly order issued by the People's Bank of China, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission on January 19. The order will take effect on March 1. The new regulation drew immediate attention and debate online. Many expressed their support to the strict but necessary approach to tackle money laundry and other related illegal activities. In recent years, illegal and criminal activities like telecommunications fraud, illegal fundraising and cross-border gambling have become rampant, seriously endangering public interest. In 2021 alone, the public security organs investigated and handled more than 370,000 telecom fraud cases, according to media reports. Strengthening the management of cash deposits and withdrawals is based on the requirement for financial institutions to fulfill their anti-money laundering obligations while complying with international standards for anti-money laundering, the central bank said. Moreover, in general terms, the order is expected to produce a very limited impact…Original link

China's economy expanded 8.1 percent year-on-year in 2021, bringing the average growth rate from 2020 to 2021 to 5.1 percent, the National Bureau of Statistics said on Monday. The country's gross domestic product reached 114.4 trillion yuan ($18 trillion) in 2021, with major indicators reaching the expected targets, NBS said. China, the world's second-largest economy, is expected to cover over 18 percent of the global economy in 2021, said Ning Jizhe, head of NBS, at a news conference in Beijing. China's GDP grew by 4 percent in the fourth quarter, down from 4.9 percent in the third quarter, the bureau said. The country's total added value of industrial enterprises above a designated size grew 9.6 percent on a yearly basis in 2021, bringing the average growth rate from 2020 to 2021 to 6.1 percent, the NBS data showed. During the first 11 months of 2021, profits at major industrial companies surged 38 percent, with an average growth rate of 18.9 percent between 2020 and 2021. For the whole year of 2021, total retail sales of consumer goods came in at 44 trillion yuan, up by 12.5 percent over the previous year. In 2021, investment in fixed assets (excluding rural households)…

From January to July, China’s foreign trade registered steady and fast growth, firmly supporting the creation of a new development paradigm. On July 2nd, the State Council General Office issued the Opinions on Accelerating the Development of New Business Forms and Models of Foreign Trade to build up new growth drivers for foreign trade. The Ministry of Commerce, together with local governments and other ministries, has spared no effort to see through relevant policies and measures and made a solid step toward high-quality development of foreign trade. First, scale of import and export grew fast. In January-July, the volume of import and export reached 21.34 trillion yuan, with export standing at 11.66 trillion yuan and import 9.68 trillion yuan, all hitting a new record high compared with the same period in the past. The total import and export grew by 24.5% year-on-year, with export up 24.5% and import 24.4% year-on-year , all reaching a ten-year high. Two-year average growth rates were 10.6%, 10.9% and 10.2% respectively. In July, import and export reached 3.27 trillion yuan, the second highest in a single month in history (second only to 3.29 trillion yuan in June this year). Second, international market demand continued to…Original link

On September 18, the World Trade Organization (WTO) released its latest barometer of trade in goods, with a reading of 110.4. That's the highest since July 2016. It is worth noting that all the components of the goods trade barometer were higher than expected, suggesting that the recovery is broadly based. In particular, the indices for air cargo (114.0), container transport (110.8) and raw materials (104.7) continued to rise, indicating that trade growth was above average. Indices for air freight, container traffic and raw materials continued to rise The WTO's barometer of goods trade is a composite leading indicator that is updated quarterly, with a reading above 100 indicating higher than expected growth in global goods trade, while a reading below 100 indicates lower than expected growth. The WTO noted that all component indexes of the barometer had been above trend for the past month. In addition, the automobile product index (106.6) showed an upward trend in July, despite the decrease in automobile production and sales in some countries due to the shortage of semiconductors. At the same time, you can see a sharp rise in the air cargo index, reflecting a rebound in the air transport industry, as some…

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