China Economy

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Background explainers, news and analysis on China’s economy, including its opening up, the US-China trade war, the impact of tariffs and trade talks, growth rates and other key economic data, the Belt and Road Initiative, and Greater Bay Area plan.

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Global Economy
China’s yuan accounts for 2.18 per cent of global forex reserves, compared with 57.8 per cent for the US dollar, according to the International Monetary Fund. Photo: AFP
Global Economy
Yuan trade settlements on rise amid ‘soaring volatility’ in US Treasury market
Washington’s policies seen opening door to greater yuan internationalisation, undermining but not removing US dollar’s dominance in global trade.
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Stephen Miran, chairman of US President Donald Trump’s Council of Economic Advisers, speaks during a television interview at the White House in Washington on Wednesday. Photo: AP
China Economy
‘Thuggish’ act: Chinese scholars take on Trump adviser over global shake-up
Stance of Council of Economic Advisers chairman Stephen Miran likened to ‘collecting protection money on the streets’.
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Contemporary Amperex Technology’s Gao Huan, chief technology officer for EV business, speaks at CATL Tech Day in Shanghai on April 21, 2025. Photo: AFP
China Business
CATL to mass-produce cheaper, efficient sodium-ion EV batteries
The new Naxtra-brand batteries would enable an electric vehicle to travel up to 500km (310 miles) on a single charge.
Chinese President Xi Jinping reviews the Royal Palce honorary guards as he is accompanied by Cambodian Senate President Hun Sen during a send-off ceremony at Phnom Penh International Airport in Phnom Penh, Cambodia, on Friday. Photo: AKP via AP
Diplomacy
What did China’s Xi Jinping achieve on his trip to Southeast Asia?
Xi was hoping to galvanise support for a united front against US tariffs. Each country had its own response, observer says.
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A Meituan delivery worker walks among office towers in Beijing on March 27. Photo: Reuters
Big Tech
JD and Meituan food fight spills into public in Chinese delivery platform spat
In a public letter, JD.com accused a ‘rival platform’ of preventing delivery riders from using multiple platforms, for which Meituan was fined in 2021.
The trade of soybeans is among the most contentious battlefields in the US-China tariff war. Photo: Reuters
Global Economy
China is weaning itself off US soybeans as decade-long outlook comes into view
The days of China relying on America for soybeans could be numbered as agricultural ministry outlook report for next decade puts onus on self-sufficiency.
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China is reported to have been Africa’s top trading partner for 15 consecutive years, with trade exceeding US$295.56 billion in 2024, a 6 per cent increase from the previous year. Photo: EPA-EFE
Diplomacy
China-Africa trade makes ‘moderate’ gains despite US tariffs, currency weakness
First quarter customs data shows Chinese exports to Africa climbed 11.3% to US$45.92 billion while imports from the continent fell 9.4%.
Washington has reserved its heaviest trade blows for China, having imposed 145 per cent in tariffs on Chinese imports, prompting Beijing to hit back with a 125 per cent levy on imported US goods. Photo: AFP
Global Economy
‘Bargaining with a tiger for its skin’: China says US trade tactics will fail
Ministry of Commerce calls for countries to resist US trade coercion after report said Washington asked them to curb economic ties with China in exchange for tariff relief.
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Shanghai welcomed a record-high 220,000 spectators for the Chinese Grand Prix last month. Photo: EPA-EFE
China Economy
How showpiece sports events offer China big rewards in hard times
The game is on as local authorities across country try to capitalise on interest in all things sport – an area in which consumers are willing to splash extra cash.
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Illustration: Craig Stephens
World Opinion
Opinion|Why the impact of US tariff war on China won’t be all that great
China’s shrinking dependence on exports and the US, coupled with its economic resilience, means it can still grow by 4.5 per cent this year.
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An illustration pictured on April 16, 2025 shows the logo of Chinese shopping app Taobao. Photo: AFP
Global Economy
French flock to Chinese e-commerce bargains, hunt for ‘agent Taobao’ to deliver
Amid US-China trade war, TikTok accounts show users how to purchase cheap goods directly from Chinese factories to avoid pricing mark-ups and tariffs.
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Fresh durians from Malaysia displayed at a supermarket in Zhengzhou on August 25, 2024. Photo: Xinhua
China Business
Smell of success: fresh Malaysian durians are taking bite out of China’s market
While Thailand dominates durian sales in China, sales of the Malaysian fruit have grown tenfold from last year, industry insiders say.
Illustration: Brian Wang
China Economy
China’s durian determination yields golden home-grown bounty in Hainan
Tropical Hainan province has defied sceptics and rewarded investors with China-grown durian, but it ‘simply cannot compete’ with booming imports from Southeast Asia.
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The number of Russian nationals visiting the southern Chinese resort city of Sanya has soared over the past year. Photo: Xinhua
China Economy
Russian tourists lift China’s beach resorts as visits surge
Sanya, long a favourite of Russian tourists, saw visits soar elevenfold last year as China’s visa-free policies begin to pay off.
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Zhao Chunling, the chief designer of China’s home-grown widebody C929 aircraft. Photo: Xinhua
China Economy
Who is the female engineer leading China’s challenge to Boeing and Airbus?
Zhao Chunling has been lead designer for ambitious programme aimed at challenging Western duopoly since 2023.
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Illustration: Henry Wong
Diplomacy
Are China’s space ties with Latin America under threat as the US asserts power?
Trump administration to increase scrutiny of Sino-Latin American space cooperation to curb China’s influence, analysts say.
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Illustration: Craig Stephens
World Opinion
Opinion|A world on edge is headed for a geopolitical reckoning – in May
Lasting changes could arise from the Trump vs Xi diplomatic chess, EU’s emerging strategy and political flux in Seoul, Taiwan and Southeast Asia.
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People walk past the Shanghai Stock Exchange Building on April 9, 2025. Photo: EPA-EFE
Banking & Finance
Tightened rules to shut many LGFVs out of Shanghai bond market, Fitch says
China has pledged to trim debts among local government financing vehicles by 2.3 trillion yuan (US$315 billion) by 2028.
One humanoid-industry insider estimates that hands account for about 10 per cent of the cost to make Tesla’s Optimus robot. Photo: AFP
Global Economy
Tesla can’t make Optimus robot for US$20,000 without China, humanoid experts say
As US-China trade war tariffs bite, mass production of Tesla’s Optimus ‘likely to be put on hold’, threatening Elon Musk’s plans, according to Chinese industry insiders.
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Cars await export at the port in Nanjing, Jiangsu province, on Wednesday. Photo: AFP
China Economy
As trade war heats up, China’s premier wants focus on positive expectations
Li Qiang tells State Council study session in Beijing that market economy is ‘largely an expectation economy’.
Chinese Vice-Premier He Lifeng meets with Nvidia CEO Jensen Huang in Beijing, on April 17, 2025. Photo: Xinhua
Daily Pulse|Jensen Huang in Beijing, Auto Shanghai kicks off and more
This week: Jensen Huang in Beijing, China’s first quarter GDP beats expectations and Trump says US and China are in trade talks. Next week: Auto Shanghai kicks off, Japanese officials visit Beijing, robotic half marathon and more.
A container ship departs from the Port of Los Angeles on Sunday, July 16, 2023. Photo: TNS
Global Economy
Trump targets Chinese ships with steep port fees, raising stakes in trade war
Forecasters warn of global repercussions as Washington takes aim at China’s shipbuilding dominance.
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Sunac faces a liquidation hearing in Hong Kong on April 28 for non-payment of a US$30 million loan to China Cinda HK Asset Management. Photo: Reuters
Business
China’s Sunac reaches deal with key creditors on offshore debt revamp plan
Two groups of creditors, holding about 26 per cent of Sunac’s existing debt, could choose to receive two types of mandatory convertible bonds.
US President Donald Trump speaks on the South Portico of the White House on April 9 in Washington. Photo: AFP
World Opinion
Opinion|Why the cowed silence amid Trump’s attacks on global trade and stability?
Many nations are avoiding confrontation due to caution or pragmatism. But this risks encouraging further actions that could destabilise the global order.
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Stephen Miran testifies during a Senate Banking, Housing and Urban Affairs Committee confirmation hearing in Washington on February 27. Photo: Reuters
China Economy
Explainer|Who is Stephen Miran? The Trump adviser demanding other nations pay up
Chairman of US president’s Council of Economic Advisers also wants multilateral ‘Mar-a-Lago Accord’ to weaken US dollar.
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IMF Managing Director Kristalina Georgieva at the IMF headquarters in Washington on Thursday. Photo: EPA-EFE
United States & Canada
IMF sees US-China trade grievances, welcomes India tariff cuts
Speaking in Washington, IMF chief Kristalina Georgieva said world’s 2 largest economies need to agree on fairer, rules-based trading system.
US President Donald Trump (right) offers a handshake to his Chinese counterpart Xi Jinping in Beijing in November 2017. Photo: TNS
Politics
How China’s sharper view of US has rewritten its trade war playbook
Beijing’s tougher tariff response reflects new understanding of Washington’s aims under Trump 2.0, analysts say.
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Opinion
My Take|China’s tariff opportunity: US trade war could spur needed economic reforms
As it did during the Asian financial crisis, China has a chance to rethink its economy in a way that will lay the groundwork for future growth.
SCMP ColumnistZhou Xin
Editorial|Xi’s charm offensive in Southeast Asia is perfect foil to Trump
If trade war results in stronger relations between China and neighbours, it will be an outcome that Trump may have failed to anticipate.
SCMP Editorial
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My Take|China’s green tech firms largely insulated from latest tariff war
With their reliance on the US market already limited, these battle-worn companies are better equipped to weather the coming decoupling storm.
Brian Rhoads
Editorial|China’s domestic demand is a key weapon in fight against Trump tariffs
First-quarter GDP growth beat expectations, but in longer term, China must boost local economy and forge new trade deals around the world.
SCMP Editorial
My Take|China could rebuild global trade system as US puts faith in tariffs
China’s marathon quest to join the global trade system started as early as 1986, when its economic size and foreign trade were both tiny.
SCMP ColumnistZhou Xin
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Editorial|Hong Kong better prepared with Beijing backing for uphill battle ahead
China has many levers at its disposal to support both its and Hong Kong’s stock markets during Donald Trump’s senseless trade war.
SCMP Editorial
Editorial|Hong Kong’s free-port status may help buffer city from worst of trade war
In the face of Trump tariffs chaos, Hong Kong must further develop as an international financial hub under the ‘one country, two systems’ formula.
SCMP Editorial
My Take|China needs to boost nation’s household income to counteract Trump tariffs
It is an urgent initiative that Beijing must pursue in the face of disruptions that Trump’s tariffs may cause to China’s export sector.
SCMP ColumnistZhou Xin
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Editorial|China’s tactics may yet spell opportunity for Hong Kong in US trade war
Universal levies from Donald Trump add to global uncertainty and call for a resolute response, but by taking a longer view Beijing could open doors.
SCMP Editorial
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Macroscope|3 reasons investors are falling in love with Chinese stocks again
Much has to go right for Chinese stocks to continue to outperform, but there is great potential if investor sentiment continues to thaw.
Nicholas Spiro
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Editorial|Welcome lifeline for China’s SMEs in cash crisis
Measures taken by Beijing to ensure state-owned firms and local governments pay up aim to revitalise the sector.
SCMP Editorial
My Take|Labubu proves Hong Kong IP and Chinese manufacturing are a recipe for success
The blind-box retailer’s mass-market toys based on cute Hong Kong designs are fuelling its international rise – and setting a template.
SCMP ColumnistZhou Xin
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