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
Diplomacy
Illustration: Henry Wong
Diplomacy
Why young Chinese are turning away from the American dream
Unlike older generations, who saw the US as the ultimate destination, China’s Gen Z views the superpower through a more pragmatic lens.
28
China’s Commerce Minister Wang Wentao, left, and EU trade chief Maros Sefcovic, who held talks in Brussels as Beijing and the bloc sought to ease escalating trade tensions. Photos: AFP
China
China signals openness to cut gaping EU trade gap as Brussels toughens stance
Beijing floats buying more European goods as the EU weighs new trade tools and presses for tangible progress by October.
18
Workers inspect solar panels at a factory in China’s eastern Jiangsu province. Photo: AP
China Economy
Potential US ban on Chinese inverters would harm local power industry: firms
America’s need for inverters is growing amid boom in renewable energy demand driven by AI race – and China is the dominant global supplier.
1
A Brazilian rescuer works in the aftermath of earthquakes in Venezuela. Photo: Reuters
China
Aid for Venezuela, China-Colombia ties: 7 Latin America relations reads
From Argentina’s move towards Beijing to Lula’s beef deal, here are highlights from the SCMP’s foreign correspondents in June 2026.
1
Illustration: Craig Stephens
China Opinion
Opinion|When and how will China ease capital controls?
While China has reasons to maintain capital controls, the recent crackdown on three Hong Kong brokerages is not meant to discourage mainland outbound investment.
1
Photo: Shutterstock
China Economy
Daily Pulse|China food-security risks worsen as extreme weather becomes more common
Heavy rains and growing drought risks may make it harder to feed China’s 1 billion-plus population.
A woman walks by the World Bank building in Washington. The World Bank will reportedly cap sovereign lending to China at US$2 billion for the 2026-2031 period before ending it altogether. Photo: AP
China Economy
China’s World Bank journey hits lending limit: why it is being phased out
Ministry of Finance eyes move towards knowledge sharing as wealth gains and US pressure curb lending for a nation that is now the world’s top bilateral creditor.
1
The flags of the European Union and China in front of the German Foreign Office in Berlin. Photo: Photothek via Getty Images
China Economy
European firms ‘becoming more reliant on China, not less’: EU chamber chief
Jens Eskelund tells conference in Berlin that Beijing can raise costs of confrontation beyond what other side is willing to bear.
5
PDD, which operates budget marketplace Pinduoduo, is raising its profile in China’s Xiongan New Area. Photo: Shutterstock
Big Tech
Temu owner PDD embraces China’s ‘city of the future’ after regulatory debacle
Operator of big-name budget marketplaces Pinduoduo and Temu is buying an office and adding 5,000 jobs in the hyped-up Xiongan New Area.
Lionel Messi celebrates scoring Argentina’s third goal during the FIFA World Cup 2026 Group J match against Jordan. Photo: Getty Images via AFP
China
China’s Fifa fever, EU’s trade deadline: 7 global relations reads
From the Quad’s critical mineral agenda to Shein’s Paris ousting, here are highlights from the SCMP’s overseas correspondents in June 2026.
People cool off near the Trocadero fountain in front of France’s Eiffel Tower last week during a heatwave. Jean-Herve Lorenzi, president of Le Cercle des economistes, contends that major European powers must reach a strategic agreement with China. Photo: Reuters
Global Economy
‘World without bearings’: Lorenzi sees economic conflict and unplottable fixes
Prominent French economist warns that Europe must reach strategic pact with Beijing and enact structural reforms as global order enters volatile era.
3
Illustration: Craig Stephens
World Opinion
Opinion|In the AI era, US-China competition hinges on who can adapt faster
In an age of disruption, power rests with whoever learns, innovates and adapts more effectively.
1
Kling AI is said to be close to completing a US$3 billion fundraising round that would value the company at US$18 billion post-investment. Photo: Shutterstock
Big Tech
China’s Kling AI nears US$3 billion round at US$18 billion valuation: sources
The Kuaishou Technology spin-off aims to start Hong Kong listing process within a year, as annual recurring revenue soars following latest AI video model release.
3
A foreign tourist records with a Chinese-brand pocket camera at the Temple of Heaven Park in Beijing on May 2. Photo: Xinhua
China Economy
How China’s visa-free boom is reshaping tourism beyond major cities
A growing number of foreign travellers are taking advantage of looser rules to venture inland, fuelling a shift away from traditional hotspots.
11
The Bank of China building in Shanghai. The National Audit Office has accused the bank of evading 2.37 billion yuan in taxes by misusing preferential treatment intended for publicly offered mutual funds between April 2023 and August 2025. Photo: Getty Images
China Opinion
Opinion|As China tightens the fiscal net, it must strike a fine balance
While the central government is cracking down on tax evasion, provincial governments are scrambling for cash in ways that can be destructive.
Chinese-made MG Cyberster electric vehicles wait to be loaded onto a ship for export at a car yard in Yantai, in eastern Shandong province, on June 25. Photo: AFP
China Opinion
Opinion|Will US-China economic ties become self-reinforcing cycle of suspicion?
China’s regulations on outbound investment might seem purely administrative but they give Beijing crucial new control over transactions.
1
Westlake University in Hangzhou, Zhejiang province. Photo: Handout
China Economy
Why China’s billionaire-backed research universities are looking for more money
Newcomers began admitting undergraduates last year and are now vying with older institutions for tuition fee revenue.
Hong Kong skyline with business area taken at the Peak. Agents have predicted Hong Kong’s luxury property market will stay resilient throughout 2026 but prices could remain mild. Photo: Sam Tsang
Markets & Investing
Buyers eye Hong Kong luxury homes as agents predict mild price growth
Big-ticket luxury home prices expected to rise up to 2% as more buyers enter the market and momentum stays buoyant after strong first half.
Chinese President Xi Jinping is applauded at a ceremony marking the 105th anniversary of the founding of the Communist Party on Wednesday. Photo: Reuters
Politics
A model for other states? China’s Xi lauds Communist Party’s global influence
On the 105th anniversary of the ruling party’s founding, Xi Jinping also warns members to stay vigilant and prepare for challenges.
61
A guard stands at attention outside the Great Hall of the People in Beijing. China has enacted a sweeping overseas investment law. Photo: TNS
Global Economy
Beijing asserts control over China’s offshore tech transfers with landmark law
Beijing’s ‘milestone’ mandate seen authorising retaliatory responses to trade barriers while restricting research leaks.
6
People check out BYD electric cars in Yantai, Shandong province, in April last year. Photo:
China EVs
Will slowing car sales in China reignite brutal price war in crowded market?
Global consultancy AlixPartners delivers most bearish forecast for Chinese carmakers’ fortunes this year.
1
Chinese retailers are increasingly relying on higher merchandise margins generated by their own brands, according to a report. Photo: Sam Tsang
Companies
Race to the bottom? Why retailers bet on their own brands in China
Analysts forecast in-house goods to rise sharply as Chinese retailers seek loyalty and offset lost supplier-funded fees.
Illustration: Lau Ka-kuen
Tech
The AI industrial revolution: why US faces a historic tech reckoning from China
From EVs to robotics, China’s advancement in cutting-edge tech has seen it shake off the West’s long-standing belief in US exceptionalism.
25
Residential buildings in Beijing on September 15, 2025. China’s property sector, once accounting for roughly a quarter of the economy, has remained sluggish since late 2020, eroding household wealth. Photo: EPA
Wealth
China’s millionaire growth lags the global average. Is the wealth boom over?
Global personal wealth rose at its fastest pace in nearly a decade last year, though China saw only modest gains, according to a new report.
3
China’s Ministry of Commerce said Canadian exporters sold pea starch at prices undercutting Chinese producers. Photo: Shutterstock
Global Economy
China-Canada trade thaw sours as Beijing levies penalties for dumping pea starch
Beijing imposes cash deposits on imports of the widely used agricultural product ahead of Ottawa’s decision on Chinese-made steel racks.
1
A woman works on a production line at a silk processing workshop in Xinghua, in eastern China’s Jiangsu province, on June 23, 2026. Photo: AFP
China Economy
China’s factory activity rebounds in June but weak domestic demand lingers
The world’s second-largest economy registered robust trade growth this year, with May exports skyrocketing 19.4 per cent year on year.
1
EU trade chief Maros Sefcovic speaks to the press following a meeting with Chinese Commerce Minister Wang Wentao in Brussels on Monday. Photo: EPA
Diplomacy
EU sets China October deadline for ‘tangible results’ after key trade talks
Marathon session in Brussels sees Beijing agreeing to establish a ‘joint monitoring mechanism of trade flows’ to help ease economic tensions.
3
On AliExpress, Alibaba’s international retail site, this month’s debut of air conditioners in Germany saw local warehouse inventory for a Midea model completely wiped out by Thursday. Photo: Shutterstock
Big Tech
China’s cooling, e-commerce giants see sales surge as Europe heat sizzles
Alibaba notes surge in retail and business-to-business orders, Midea reports sharp revenue rise, and Gree sales get bump in major European markets.
1
The new route comes as China continues to expand its overland trade network across Central Asia and beyond. Photo: Handout
Global Economy
China opens new Central Asia rail link to strengthen supply chain resilience
Beijing’s push to develop a transcontinental rail network has reduced exposure to naval chokepoints, analyst says.
6
Opinion
Editorial|Prospects for Hong Kong are looking up, 29 years after the handover
On the 29th anniversary of the city’s return to China and 105 years since the Communist Party’s founding, President Xi expressed high expectations of Hong Kong and Macau.
SCMP Editorial
As I see it|Europe wants a new Plaza Accord for China – seriously?
Instead of hoping for Beijing to commit economic suicide, it would be more realistic for the EU to strike a mutually acceptable trade deal.
SCMP ColumnistAlex Lo
27
Editorial|At Summer Davos, Li Qiang makes the case for China’s vision of growth
Chinese premier defends China’s competitive success and promises to share the dividends of its innovation with the world.
SCMP Editorial
Editorial|Hong Kong and Shanghai extend the yuan’s international reach
As Beijing tightens compliance, the country’s finance hubs can safely and efficiently promote the trade of Chinese treasury futures.
SCMP Editorial
Being Chinese|Once, I was proud of the Shenzhen miracle. Now I’m not so sure
The Taiwanese-influenced accent my voice carries is a relic of the 2000s and hints at how differently my generation understands modernity.
Ling Tang
11
Editorial|Xi-Trump summit in Beijing heralds start of constructive, stable relations
Through the meticulously planned welcome ceremony and Xi Jinping’s remarks, Beijing has emphasised the importance of stable bilateral ties to the world.
SCMP Editorial
1
As I see it|Has China just ended the end of history?
As China continues to thrive, Western observers are beginning to rethink past assumptions about the country’s future.
SCMP ColumnistAlex Lo
18
Outside In|Prepare for ‘China shock 3.0’ to the global food economy
Imagine China applying the same industry policy playbook for electric cars, solar panels and AI to agriculture and food self-sufficiency.
David Dodwell
2
Editorial|China fireworks factory blast sharpens focus on workplace safety
China’s safety record has improved but concerns persist about under-reporting and uneven compliance.
SCMP Editorial
Outside In|China’s manufacturing rise is here to stay. The West must recalibrate
The changes are structural and protectionism will only weaken long-term growth.
David Dodwell
2
Macroscope|Why investors should beware China safe haven narrative amid Iran crisis
While there is reason for optimism, the ceasefire in Iran remains tenuous and the return of inflation is not the kind China wants to see.
Nicholas Spiro
As I see it|Why China is always misunderstood and misrepresented
By insisting on the superiority of its own standards of judgment and experience, the West distorts the realities of other societies.
SCMP ColumnistAlex Lo
29
LOADING
Unfollowed
View all