China Economic News

[Behappyalways]

陸車市內捲嚴重 比亞迪三度降價 零里程二手車搶市｜方念華｜FOCUS全球新聞20250528 ‪@tvbsfocus‬
https://m.youtube.com/watch?v=I2XlUFm0T1o

[weijian]

陸車市內捲嚴重 比亞迪三度降價 零里程二手車搶市｜方念華｜FOCUS全球新聞20250528 ‪@tvbsfocus‬
https://m.youtube.com/watch?v=I2XlUFm0T1o

I remember Travis Kalanick (Uber) once complained that Chinese scammers were registering new sim cards to enjoy the sign-up bonuses. And when the iPhone first came up, Chinese scammers were racking in big bucks by getting their hands on iPhones in US through signing up mobile subscription plans, pay for only the 1st month and then smuggle them back to China to sell for a premium.

So I suppose any kind of subsidy is just a matter of time before someone is "clever enough" to exploit it on scale.

China car trade-in subsidy halted in some areas as funds run low

Cities in provinces including Guangdong, Henan and Zhejiang have suspended the programme, which gives consumers up to 20,000 yuan (S$2,780) towards the purchase of a newer model car and had been scheduled to run until the end of this year, according to reports from local media including Dahe Daily.

The practice of dealers and traders purchasing new cars in bulk, registering them in order to qualify for rebates, then selling them on the used-car market without ever being driven has added to fiscal pressures and led to probes by authorities, the reports said.

The cash-for-clunkers programme, part of a broader trade-in package aimed at boosting retail sales to support a weakening Chinese economy, has been an important pillar for the nation’s car sales. About 70 per cent of personal car purchases in May utilised the trade-in subsidy, broadly in line with the figure for April, according to data from the China Passenger Car Association.

“These cars came under scrutiny as they’re considered a tactic to fraudulently claim the subsidy,” Li Yanwei, an adviser to the China Automobile Dealers Association, said.

https://www.businesstimes.com.sg/compani...ds-run-low

[weijian]

Most of us grew up with Jap brands like Sharp, Toshiba, Toyota or Honda, before we upgraded to the "continental" brands. The next generation is going to grow up with brands that sound Chinese or have Chinese origins.

In my opinion, the epitome of branding would be fronting the matchday jersey of an EPL club. Kejian did so over 20years ago for Everton. I suspect we will be seeing one of the familiar names (eg. BYD, Xiaomi or Hisense) fronting one of the top6 before 2030.

Chinese consumer brands gaining foothold in Indonesia, Malaysia as they shed ‘world’s factory’ image

“China used to be known as a country that copied products, but now it is a country that creates new product innovations in terms of technology and usability.”

For decades, Chinese-made products were synonymous with being mass-produced with little to no brand recognition.

The public also considers them to be inferior in quality to those that were made in Japan or in European countries. But that perception has slowly changed, and Chinese brands have become popular among consumers in Southeast Asia.

Today, Dwi owns a Lenovo laptop, handphones from brands such as Xiaomi, Huawei, Infinix, and Redmi as well as a Wuling electric vehicle. The list goes on.

According to him, Chinese products are affordable, widely available, and high-tech.

https://www.channelnewsasia.com/asia/ind...ia-5245476

[specuvestor]

China has been moving up the value chain from quantity to quality in Xi era after Jiang / Hu era resolve the food problem and the massive migration from rural to urban. Just as "Made in Taiwan" was synonymous with junk in the 1980s, but China moving up in a much larger scale that even Vietnam, India etc are being surpassed

[Behappyalways]

Wave Of Suicides Among Chinese Entrepreneurs Signals Deepening Crisis In Private Sector: Expert
https://www.zerohedge.com/political/wave...tor-expert

[weijian]

It is interesting to see Mao-ism been revived. Especially after the disastrous Great Leap Forward and Cultural Revolution. Maybe Deng's right - doesn't matter black or white cat, as any cat that catches a mouse is a "good pussy". Xi Jiping is probably having a good time putting Mao-ism and Xi Thoughts at the forefront of things.

There are definitely parallels we can learn from in our own investing career/journey.

Commentary: China is playing the long game on trade. It’s working

Time is Xi’s ally. So far, the clearest outcome of each round of talks has been a commitment to meet again. Despite Trump’s insistence that China has taken significant steps to improve their trade relationship, Beijing has made no consequential concessions on any of his key concerns. (China has offered some small compromises, none on the scale of American demands.)

During a series of lectures in May and June 1938, Mao spoke of how the “contest of strength is not only a contest of military and economic power, but also a contest of human power and morale”. Scholars say the idea was to alert his fellow citizens that the war would be long and gruelling, but could be won through endurance and unity.

Despite millions of Chinese dead, Mao refused to yield. The conflict only ended after Japan surrendered in World War II in 1945. (Mao’s civil war with the Nationalists lasted another four years.) Xi appears to be heeding his predecessor’s counsel: patience, at all costs – with the aim of shifting the odds in Beijing’s favour.

As Mao wrote, “final victory will not come about without human action”. Trump may tout his successes in bringing China’s economy to heel. By betting on time and resilience, Beijing is showing it’s willing to wait for the win.

https://www.channelnewsasia.com/commenta...my-5292466