Topic

China's economic recoveryi

This topic charts China's economic recovery as it, in 2023, enters an era of slower growth, along with an ageing and shrinking workforce, weak consumer demand and a property market downturn.

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  • China recorded high tourism figures during the Labour Day holiday, beating pre-pandemic levels and contributing major growth to consumption
  • Spike in aggregate figures not matched by increase in average spending, suggesting a change in priorities for travellers as country shores up recovery
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A record 246,000 international visitors flocked to the spring session of the Canton Fair over the last three weeks in Guangzhou, but deals signed rose by only 10 per cent from the previous edition.

Beijing has introduced measures aimed at boosting inbound tourism, including visa-free travel for a number of European and Southeast Asian countries.

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More than 46 per cent of urban residents polled by People’s Bank of China say job market is ‘uncertain’, while 62 per cent aim to save more, in continued challenge for policymakers counting on domestic consumption to propel the economy.

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China’s Caixin/S&P Global services purchasing managers’ index (PMI) remained in expansionary territory for the 16th straight month in April, but eased from March, data released on Monday showed.

Facing budget blowouts and new policy directions, local governments are finding ways to shed ‘iron rice bowl’ positions without mass redundancies.

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China’s steel production has increased, but a property market downturn and slowdown in infrastructure spending have seen prices plunge steeply, leading to overcapacity and trade tensions.

In the spotlight due to the Netflix hit 3 Body Problem, China’s sci-fi industry saw revenues grow by 29 per cent year on year to 13.29 billion yuan (US$15.6 billion) in 2023.

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After Beijing’s recent lifting of crippling wine tariffs that had been in effect since early in the pandemic, Chinese customers will need to be convinced to buy new stocks of Australian wine.

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Hefei, the capital of the eastern Anhui province, has placed a heavy focus on innovation and emerging industries, including new energy vehicles, with officials from across China eager to copy the formula for success.

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In an official communique, China’s Politburo said ‘patient capital’ is expected to pitch in as the country moves towards a tech-driven growth model, showing a much-needed focus on the long term, analysts say.

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A growing ‘she-conomy’ in China is leading to the working-age female population playing a leading role in personal spending and family purchases amid Beijing’s shift away from an investment-led growth model.

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Predictions China would have already joined the group of high-income nations have yet to bear fruit. Is it still possible to break through the middle-income ceiling – and is it still an important benchmark?

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Yum China Holdings, which owns the KFC and Pizza Hut restaurant chains in mainland China, plans to open more stores in ‘untapped’ parts of the country where it hopes its low-price strategy will appeal to vast numbers of less affluent customers.

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China’s Communist Party will hold one of its most-watched meetings in July, as analysts predict the political body will lay out reforms to aid in the country’s economic recovery.

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After a stretch of trials in select Chinese cities, there is rising urgency to rapidly expand use of the underperforming retirement accounts as demographic challenges mount.

China’s official manufacturing purchasing managers’ index (PMI) remained in expansion territory for a second consecutive month in April, although the pace slowed as officials admitted that manufacturers are facing higher costs.

Gold purchases in China rose by 5.9 per cent in the first quarter compared with the same period in 2023, as consumers seek security in ‘the only safe asset’, analysts said.

Austrian crystal maker Swarovski has launched a lab-grown diamonds collection in China, in a sign that it has confidence in its second-largest market by sales despite some economic turbulence.

Creating enough jobs for its young people remains a daunting challenge for Beijing, with the key private sector struggling to shake off scars of the coronavirus pandemic.

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Air China will start to add international flights from Sunday, while bookings ahead of May Day holiday have surged, but flights to US are having a sluggish recovery.

China’s yuan has lost more value against the US dollar as interest rate cuts have yet to materialise, leading exporters to find whatever alternative assets they can until exchange differentials subside.

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China is reviewing amendments to laws governing statistics and accounting, with Beijing eager to clamp down on inflated or manipulated economic statistics and uphold rules in the world’s second-largest financial market.