China Economy

What makes the world's second largest economy tick
+ FOLLOW
Register and follow to be notified the next time content from China Economy is published.

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.

Latest News
News
China Economy
Foreign tourists handle their smartphones while buying tickets for a performance at a theatre in China’s Chongqing municipality last month. Photo: Xinhua
China Economy
Before Apec meeting, China’s mobile-payment overhaul is helping foreigners spend
Smartphone apps such as Alipay and WeChat Pay now link foreign cards and wallets, easing a cashless barrier that has long frustrated international visitors.
Chinese-made MG cars produced by SAIC Motor await export in Yantai, Shandong province, last month. Photo: AFP
China Economy
China and EU deadlocked on medical devices, still talking on PHEV curbs: source
Sources on the Chinese side recently described the talks as difficult and expressed frustration over the EU’s inflexibility.
A BYD electric car on display at Germany’s Essen Motor Show in December. Photo: AP
China Economy
Chinese carmakers gain as high petrol prices boost European EV sales
Chinese brands’ share of plug-in hybrid registrations across Europe climbed from about 20 per cent in January to 35.3 per cent in August.
1
Dog mooncakes have become a popular new trend ahead of this year’s Mid-Autumn Festival in China. Photo: Handout
China Economy
Mooncakes for the dog? How China is reinventing its iconic festive snack
China’s consumers appear to be going off the dense Mid-Autumn Festival treat, but tiny mooncakes for pets are a different story.
Banks in China are phasing out retail leveraged precious-metals trading for gold and silver. Photo: AFP
China Economy
Shanghai Gold Exchange pushes more Chinese banks to end retail leverage trading
Lenders in China are redirecting retail clients to fixed-price accumulation plans and physical purchases of precious metals, moving away from margin-based speculation.
1
Blue Bottle Coffee’s first Beijing store will be in the city’s central business district in China World Mall. Photo: Handout
China Business
Blue Bottle bets that premium coffee has room to grow in China
US brand, recently sold by Nestlé to Chinese capital firm, will need to offer unique experiences and ‘new taste combinations’, analyst says.
The workshop of a wind power equipment maker at the China-Malaysia Qinzhou Industrial Park in Qinzhou city, Guangxi autonomous region, on September 4. China’s partners must distinguish between genuine imbalances and the productive advantages that offer opportunities for cooperation. Photo: Xinhua
China Opinion
Opinion|China’s industrial strengths must also benefit its trading partners
By shifting towards domestic consumption and exporting industrial know-how, Beijing can give global partners a genuine stake in its growth.
2
Workers load sulphur at a storage yard on a wharf in Nanjing, in eastern China’s Jiangsu province, on April 14, 2026. Photo: AFP
Economy
China’s sulphur imports dive 65% as prices surge 3.5 times
Country pays more for less of the key fertiliser ingredient, potentially pressuring the spring planting season, analyst says.
1
US Treasury Secretary Scott Bessent and Vice-Premier He Lifeng met in Washington on Wednesday. Photo: X/SecScottBessent
Global Economy
What a 2-month trade-truce extension reveals as US-China rifts persist
Analysts say that the relatively short window, while a positive sign, could also raise pressure on both Beijing and Washington.
1
Humanoid robots by Unitree Robotics demonstrate a group dance during an expo in Beijing. Photo: Reuters
Markets
China’s humanoid robot IPO slowdown no threat to firms with ‘genuine strength’
The market is shifting from a ‘blind rush’ to ‘fine screening’, but funding is still there for firms with clear strategies, Deloitte China says.
Tourists visit Tangqi town in Hangzhou, eastern China’s Zhejiang province. Photo: Xinhua
China Economy
Next-level travel: how up to 13 days off could push China’s tourism to new highs
An alignment of Mid-Autumn Festival and National Day holidays stretches time off for millions of Chinese, with breaks reaching up to 13 days.
Migrant workers wait to board a chartered train at Dingxi North railway station in northwest China’s Gansu province, in 2024. In 2025, China’s nearly 300 million migrant workers earned just 5,075 yuan (US$758) a month on average, up only 2.3 per cent from the previous year. Photo: Xinhua
China Opinion
Opinion|China has a much bigger priority than winning the AI race
China’s pressing economic problem is that ordinary people still have too little money in their pockets.
6
Women sit on a hill overlooking a coal power plant in Indonesia. The country is a hotspot for Chinese energy investment. Photo: AP
China Economy
China has scrapped two-thirds of its planned coal power plants abroad: report
The cutbacks have saved 6.4 billion tonnes of potential carbon emissions, though campaign’s momentum slowed last year, report finds.
1
Illustration: Victor Sanjinez
China Opinion
Opinion|China is leveraging its diaspora to boost the economy, unlike India
While Beijing has turned its diaspora into an extension of its domestic economy, New Delhi has largely allowed its diaspora to strengthen other economies.
4
The US Capitol building is seen following rain showers. The US federal government’s debt alone accounts for more than 10 per cent of all the debt in the world, spanning government, household, financial and non-financial corporate sectors in more than 100 economies, according to the Institute of International Finance. Photo: AFP
Global Economy
US$365 trillion and counting: the world’s total debt hits record high, IIF finds
Debt climbs US$10 trillion in six months as fiscal strains deepen, exposing cracks in household and corporate balance sheets.
3
People wait outside a busy restaurant in Beijing on Monday. Photo: AFP
China Economy
Boosting China’s social safety net could address consumption woes: IMF director
The global organisation found that savings of rural households decrease when social and healthcare spending is higher.
2
CATL is the world’s largest manufacturer of lithium-ion batteries, which are used in electric vehicles among other consumer electronics. Photo: AFP
China Economy
As Chinese carmakers diversify beyond CATL, Beijing warns of market overreaction
MIIT-linked commentary dismisses “de-CATLisation” concerns as normal supplier diversification and warns cutthroat price competition poses a far bigger threat.
1
China Economy
FactSheet|China’s US dollar holdings
China’s direct holdings of US Treasuries fell to an 18-year low in August as the country shifts to buying the bonds via Europe while continuing to diversify by increasing gold reserves.
China is doubling down on efforts to uncover new domestic reserves of coal, oil, natural gas, rare earths and other resources. Photo: Reuters
China Economy
China launches ‘mineral exploration offensive’ amid growing global uncertainties
Beijing is scouring the nation for resources ranging from oil to rare earths, as it tries to shield its economy from rising geopolitical turbulence.
1
A Futu Securities International branch in Causeway Bay. Photo: Sam Tsang
Business
Will Hong Kong property market benefit as online financial firms get physical?
Online brokerages and digital banks are opening branches across city after a sharp drop in shop rents in prime locations.
1
China is scaling up adoption of the digital yuan as it seeks to embed it more deeply into the country’s financial system. Photo: dpa
Global Economy
Digital yuan push quickens as Ant International spurs instant cross-border flows
The Shanghai-to-Hong Kong settlements worth hundreds of millions of yuan bypassed traditional channels and could accelerate Beijing’s broader yuan strategy.
China Economy
FactSheet|China’s gig economy
Some 320 million people work in China’s gig economy. The growth in jobs offering few benefits and little security reflects challenges to finding permanent employment, especially for record numbers of new graduates.
A sign for the Food And Drug Administration outside its headquarters in Maryland. Photo: Getty Images
Markets
Are clinical trials about to become a new front in the US-China biotech race?
China’s ability to conduct clinical trials quickly and cheaply has given it an edge in the biotech sector – and the US is growing concerned.
In this 2010 image, Warren Buffett is seen at a BYD product-launch conference in Beijing, two years after the company he founded, Berkshire Hathaway, invested in the Chinese automaker. Photo: Getty Images
Banking & Finance
As Buffett exits, China embraces his investment legacy. Will Wall Street buy it?
Chinese regulators push patient capital, reshape US$4.5 trillion mutual fund industry towards long-term holdings as foreign investors weigh risks against thin IPO pipelines.
1
China’s summer grain harvest exceeded 150 million tonnes for the first time this year. Photo: Xinhua
China Economy
Weathering the storm: can China’s grain reserves defend against El Nino?
As climate shocks and supply chain disruptions push global food prices higher, Beijing believes it has the tools to fend off rising risks.
From left, South Korean Foreign Minister Cho Hyun, US Secretary of State Marco Rubio and Japanese Foreign Minister Toshimitsu Motegi. Photo: Reuters
Diplomacy
Daily Pulse|US tightens Japan, South Korea ties ahead of Trump-Xi summit
Days before Chinese President Xi Jinping’s arrival in Washington, the US underscored relations with Japan and South Korea.
A worker examines a wafer in a dust-free workshop at a semiconductor company in China’s Jiangsu province. Photo: Getty Images
Tech
China’s old Han Xin barcode gets a second life – this time shrunk on silicon
After failing to unseat the QR code years ago, Beijing is betting that a “micro” version of its home-grown barcode can gain a foothold in the global semiconductor supply chain.
1
The Europe Union and Chinese flags. Photo: Getty Images
Global Economy
A shift by China towards service-based economy may realign trade, EU group says
The nation has seen little progress towards addressing ‘involution’, with output still growing beyond absorption rate, says an EU trade group.
4
A visitor exits an electric vertical takeoff and landing (eVTOL) aircraft in China’s Hubei province earlier this year. Photo: Xinhua
China Economy
Low-altitude sector hits turbulence in China’s Hangzhou as subsidies face repeal
Hangzhou tech hub looks to end financial incentives for development of light aerial vehicles, including eVTOLs, signalling more optimised regulations after June crash.
Opinion
As I see it|China and the US can make nice, if not peace
Outright enmity is too costly for both superpowers. Even without trust, shared interests leave room for pragmatic cooperation.
SCMP ColumnistAlex Lo
1
Editorial|Global monetary tightening tests China’s 2-speed economy
While the domestic hi-tech sector builds momentum, traditional exporters struggling with shifting trade patterns will need targeted support.
SCMP Editorial
The View|Why China’s new housing presale rules are still a source of risk
Beijing is putting homebuyers first, but only by transferring financial risks to to developers already under severe strain.
Nicholas Spiro
4
My Take|Why China’s shrinking population may be a blessing, not a curse
Research co-authored by Nobel laureate Daron Acemoglu finds labour shortages can spur, rather than slow down, productivity and growth.
SCMP ColumnistAlex Lo
17
As I see it|If a ‘great rebalancing’ is coming, will China really have to pay for it?
While China does have a large trade surplus, economist Michael Pettis’ argument that Beijing is most vulnerable to a global adjustment is not convincing.
SCMP ColumnistAlex Lo
9
As I see it|Why China’s political and industrial systems work better than the US
An Indian writer and an American businessman explain how de-industrialisation and the rise of oligarchs handicapped the US ability to compete.
SCMP ColumnistAlex Lo
25
Editorial|China’s moves to fuel growth driven by consumption are strategic
Government subsidies for consumer goods can only go so far. Beijing’s first five-year plan to lift household consumption is part of an essential pivot.
SCMP Editorial
1
Outside In|China’s export success is a by-product of self-reliance
But while the export surge is an accidental consequence of self-sufficiency and competitive manufacturers, the solution is not protectionism.
David Dodwell
7
Macroscope|Upper arm of China’s K-shaped economy both a blessing and a curse
China’s two-speed economy stems from the shift to new growth engines but the export boom it has created is doing little for jobs or consumption.
Nicholas Spiro
1
Editorial|Beijing’s latest salvo in the war on ‘involution’ is warranted
The massive fine imposed on Trip.com Group is part of Chinese regulators’ campaign against self-defeating cutthroat price wars and competition.
SCMP Editorial
2
Editorial|Retirement of Hong Kong judge over plagiarism is in judiciary’s interest
The chief justice helped secure public confidence in the judiciary and honoured judges’ security of tenure by requesting rather than demanding that the judge step down.
SCMP Editorial
Editorial|China’s economy on the right track despite polarised economic data
With better-than-expected trade figures being followed by lower-than-expected GDP growth, Beijing will have to consider how to strike a balance.
SCMP Editorial
2
LOADING
Unfollowed
View all