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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China Economy
US President Donald Trump participates in a welcome ceremony with Chinese President Xi Jinping in Beijing on Thursday. Photo: Reuters
China Economy
China says US agreed to a maximum tariff rate. Could the trade war be waning?
Beijing says Washington agreed to keep future trade levies at numbers set in trade talks last year.
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Workers transport soil containing rare earth elements for export at a port in China’s eastern Jiangsu province. Photo: Reuters
China Economy
Japanese firms warn of ‘severe’ magnet shortages as China’s exports remain low
China’s exports of rare earth magnets to Japan recovered only modestly last month, with Japanese firms warning of ‘severe’ shortages.
3
Chinese battery giant Contemporary Amperex Technology Ltd is building a huge new facility in Debrecen, Hungary. Photo: Reuters
China Economy
Chinese investment in Europe surges to 7-year high despite rising trade tensions
But study warns that new project pipeline appears to be drying up, as Chinese investors face pressure from both Beijing and Brussels.
1
A worker produces intelligent central control navigation products at BeiDou Zhilian (Jiangsu) Technology’s factory in Suqian, Jiangsu province, last month. Photo: CFOTO/Future Publishing via Getty Images
China Economy
China’s BeiDou leads GPS, other rivals across belt and road network: report
Products and services compatible with China’s navigation system have captured 58 per cent market share in countries in the trade initiative.
1
Illustration: Lau Ka-kuen
China Economy
Putin is pushing for a ‘serious’ new energy deal in China. Will he get it?
The Russian leader arrives in China days after Trump in search of an energy deal, with yuan settlements, pricing potentially on the table.
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Illustration: Craig Stephens
China Opinion
Opinion|Despite summit pledges, don’t expect US-China trade to improve
The near-term trajectory of China-US economic ties rests on several key timelines, any of which could trigger new tensions.
1
Photo: AFP
China Economy
Daily Pulse|China’s US Treasuries slump may not be what it seems
A reduction in China’s direct holdings of US government debt may be partly offset by the nation holding Treasuries via third parties.
Chinese Premier Li Qiang during a tour in Beijing on Monday. Photo: Xinhua
China Economy
Chinese premier urges faster, broader adoption of AI in advanced manufacturing
Premier Li Qiang says boosting AI-powered manufacturing can help drive new growth for the economy.
The mayor of Szeged,, Laszlo Botka, visits the BYD factory being built in the Hungarian city on April 21. Photo: Xinhua
Economy
Chinese companies in Hungary scramble to adjust to post-Orban era
BYD tells builders of Hungarian factory to abide by labour laws as new government adopts stricter approach to foreign investment.
1
Illustration: Henry Wong
China Economy
China’s firms in Europe chose to save on legal services. Will it cost them?
Chinese companies, often reluctant to pay for legal services, are encountering greater compliance issues as they expand into a stricter EU.
2
Pony AI’s robotaxi is seen on a Shanghai road. Photo: Weibo
China Economy
China’s old ‘Motown’, Shanghai bets on robotaxis, better batteries to bump GDP
City authorities point at the need to lure foreign firms, while emerging sectors are expected to generate a trillion-yuan boost over the next 5 years.
Mainland Chinese investors are among seven of the top 10 foreign holders to cut their exposure to US government debt, triggered by uncertainty around the war in Iran. Photo: AFP
China Economy
China joins global sell-off of US Treasuries in March as Iran war prompts panic
Seven of the top 10 foreign holders cut their exposure to US government debt, led by Japan, which offloaded US$47.7 billion.
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China’s yuan has appreciated steadily against the US dollar in recent months. Photo: Getty Images
China Economy
As China’s yuan hits multi-year highs, Beijing puts the focus on stability
China’s top foreign exchange regulator said in an article that authorities would seek to keep the yuan ‘basically stable’.
2
Northern Minerals is developing a heavy rare earths project in Western Australia, at a time when the sector has become increasingly strategic for its uses in green energy and defence. Photo: Handout
China Economy
Australia to force investors with China ties to divest from rare earths company
The company will force divestment from two individuals and four companies due to Chinese affiliation.
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Photo: VCG via Getty Images
Economic Indicators
Daily Pulse|China’s unexpected retail slowdown shows Hormuz strains
Retail sales growth slumped in April, industrial output cooled and fixed-asset investments tumbled as high oil prices hit China’s economy.
A rare earth mine at Bayan Obo, in the Inner Mongolia autonomous region of China, seen in 2011. Photo: VCG via Getty Images
Science
China’s northeast, poor in rare earths, scores big find
A new type of deposit in Heilongjiang and Jilin promises easier, cheaper mining than in southern clay-rich areas, say scientists.
7
Workers at a Sany new energy heavy truck factory in Changsha, Hunan province, on May 12. A new truck rolls off the production line every six minutes. Photo: Xinhua
China Economy
China’s economy ‘weaker than expected’ in April as Iran war headwinds bite
China’s retail sales growth fell to just 0.2 per cent in April, while industrial output and fixed-asset investment softened more than forecast.
5
There is a high probability China will meet its annual growth target of 4.5 to 5 per cent, according to an economist. Photo: EPA
Banking & Finance
Resilient economy lifts Chinese banks, but property debt drags, experts say
Steady growth and stabilising China-US ties support banks, with PBOC expected to keep rates steady, according to economists.
1
People depart Japan from Tokyo’s Haneda Airport on April 18. Photo: Kyodo
China Economy
Locked out of Russia, could Japan’s airlines face new risk in Chinese skies?
Pilots say such a move would mark a major escalation of retribution for Japanese PM’s remarks on Taiwan.
23
A woman shows a gold bar before selling in a smart gold store machine placed in a shopping mall in Shanghai on January 29. Photo: AFP
China Economy
‘Explosive’: why China’s gold recycling industry is growing at record speed
More than half of the country’s gold recycling firms are less than three years old.
3
Passengers at Beijing Daxing International Airport in 2023. The second major airport in China’s capital city opened in 2019. Photo: AFP
China Economy
China’s up-and-coming cities plan second airports as competition soars
Emerging economic centres are looking to broaden their aviation networks as local governments seek greater international, regional connectivity.
1
President Xi Jinping holds a welcome ceremony for US President Donald Trump, who is on a state visit to China, outside the Great Hall of the People prior to their talks in Beijing on May 14. Photo: Xinhua
Global Economy
China, US agree to establish trade, investment councils after Xi-Trump summit
The world’s two biggest economies also agree to roll back tariffs, deepen investment and establish a new board to manage disputes.
4
Imported soybeans from Brazil are seen in a cargo vessel at a port in Yantai, in China’s eastern Shandong province. Photo: AFP
Global Economy
Bought the farm? Details still fuzzy on scope of US-China agriculture deal
China granted five-year export licenses to 77 US beef facilities, while renewing expired licenses of 425 other plants for another five years.
2
A poster for Dear You, an independent film set in Chaoshan, Guangdong province, which has become an unexpected box office hit in China. Photo: Handout
China Economy
How a tiny indie movie sparked a major tourist boom in southern China
Made on a shoestring budget, the hit drama Dear You has triggered a surge of interest in the history of southern China’s Teochew diaspora.
4
Illustration: Lau Ka-kuen
Economy
Trump and his CEOs want China’s business – but has Asia moved on?
The US delegation went to Beijing looking for deals, but a ‘super cycle’ of capital expenditures across Asia is already fuelling enormous growth.
15
Billionaire Elon Musk gestures after attending a welcome ceremony for US President Donald Trump with President Xi Jinping at the Great Hall of the People in Beijing on Thursday. Photo: Reuters
Tech
Trump, Xi weigh AI ‘guardrails’ as Nvidia chip exports hang in the balance
Meeting in Beijing, the presidents weighed safety protocols for the rapidly emerging technology, and H200 chip shipments were a ‘sovereign decision’ for ‌China.
1
An Air China Boeing 787-9 Dreamliner taxis to a runway before takeoff in Beijing on Saturday. Photo: AFP
Global Economy
Trump, touting deal, says China to buy 200 Boeing jets with promise for more
After leaving Beijing, the US president announced a pledge to buy at least 200 jets, and up to 750 under certain conditions.
4
A BYD Sealion 7 on display at the Baltic Motor Show in Riga, Latvia, on April 24. Photo: EPA
China Business
Chinese EV makers hunt for idled plants in Europe as they expand global influence
BYD, the world’s largest electric car maker, says it is in talks with Stellantis about using European marques’ idled assembly facilities.
A nurse feeds a neonatal patient at the First People’s Hospital of Yunnan Province in Kunming on Sunday. Photo: Xinhua
China Economy
China to start certifying cities and workplaces as ‘birth-friendly’
Campaign aims to name 40 cities and 200 workplaces as being supportive of childbirth every three years.
US President Donald Trump shakes hands with his Chinese counterpart Xi Jinping during his state visit to Beijing on May 14, 2026. Photo: Pool via Reuters
Global Economy
After Xi-Trump, China tech stocks retreat as market weighs ‘fantastic’ deals
Mainland benchmarks slip as investors lock in profits following Beijing summit, while analysts say the lack of specific deal terms suggests a deterioration ‘freeze’.
3
Opinion
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
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Editorial|International forums underscore China’s enduring push to open up
In the wake of the ‘two sessions’, Beijing is taking advantage of key annual conferences to speak with global stakeholders about its agenda.
SCMP Editorial
Editorial|Hainan’s arrival as a free-trade port opens new doors for Hong Kong
Rather than viewing Hainan as a rival to be feared, Hong Kong should seize new opportunities for its professional sector and industrial traders.
SCMP Editorial
Macroscope|China is weathering the Iran war oil shock better than others in Asia
As the conflict threatens Asian economies, the best protected are those that can leverage import diversification and energy independence.
Nicholas Spiro
2
Editorial|China’s ‘two sessions’ passes smoothly despite global turmoil
As long as China focuses on economic development, Hong Kong can leverage its unique strengths to seize opportunities.
SCMP Editorial
Editorial|Amid external uncertainties, China steers for growth and stability
Government work report pledges to continue doubling down on innovation and upgrading of manufacturing; Hong Kong featured prominently.
SCMP Editorial
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