Resources

China's total vehicle exports are expected to reach 4.4 million units in 2023, with new energy vehicles (NEVs) expected to account for more than 30 percent of the total, market research firm Canalys said in a report.

China's auto exports have been climbing since 2020, surpassing Germany as the world's second-largest exporter in 2022. In the first quarter, China surpassed Japan as the world's largest auto exporter, with growth in NEVs exports the main reason for the overall increase, Canalys said.

In April, China's vehicle exports rose 142.40 percent to 424,200 units, up 9.61 percent from March, according to the China Passenger Car Association (CPCA).

In January-April, China's auto exports were 1.49 million units, up 71 percent year-on-year, according to the CPCA.

The core regions of China's auto export destinations are shifting from Africa, Central Asia and South Asia to more developed regions, including Europe and Southeast Asia, the report noted.

China's light vehicle exports to these two core regions contributed 5.9 percent and 7.6 percent of the country's vehicle exports in 2020, respectively. In 2022, the share was 22 percent and 14.3 percent, respectively, according to Canalys.

The average selling price of Chinese car exports increased from RMB 112,000 ($15,670) in 2021 to RMB 140,000 in 2022, up by more than 25 percent. In the European market, the figure was RMB 210,000 in 2022.

In 2022, Chinese automotive products had a penetration rate of 2.6 percent in the Southeast Asia region. By 2025, that figure is expected to rise to 12.8 percent, Canalys said.

In Europe, the penetration of Chinese cars is expected to rise to 16.5 percent by 2025, according to the report.

The average selling price of mainstream products in the European market is highly aligned with the average price of Chinese automotive exports, and consumers here are more aware of the NEV market, according to Canalys.

The overall light vehicle market volume in Europe and Southeast Asia is expected to grow to 13.7 million and 3.8 million units, respectively, by 2025, with NEVs penetrating more than 40 percent in Europe, Canalys said.

In 2021, the Covid pandemic caused instability in overseas supply chains and was the core reason for the growth of Chinese vehicle exports. After 2022, the growth of the overseas NEV market presents new opportunities, according to the report.

Chinese automakers have a first-mover advantage in electrification and vehicle intelligence, and have sufficient capacity and short product delivery times, Canalys said, adding that brands in other countries are lagging behind in the NEV transition and are falling short of expectations in core technology development.

($1 = RMB 7.1457)

------------------------

Source: Canalys

China has emerged as a global leader in the field of artificial intelligence (AI), making significant advancements in recent years. With a combination of government support, research institutions, and thriving tech companies, China has positioned itself at the forefront of AI innovation. This article examines the current developments in AI in China, highlighting key areas of focus, achievements, and challenges.

Government Support and Strategic Planning:

The Chinese government has recognized the potential of AI and its transformative impact on various sectors, including healthcare, transportation, finance, and manufacturing. In 2017, China released its "Next Generation Artificial Intelligence Development Plan," outlining a roadmap for becoming a world leader in AI by 2030. The plan includes ambitious targets, such as building world-class AI innovation hubs, cultivating top talent, and enhancing data availability for AI research and development.

Investment in Research and Development:

China has significantly increased its investment in AI research and development. Major Chinese tech companies, such as Alibaba, Tencent, and Baidu, have established their own AI research labs and are actively involved in cutting-edge research. The government has also set up national-level AI research centers and funds to support AI-related projects. These investments have fueled breakthroughs in various AI subfields, including machine learning, computer vision, natural language processing, and robotics.

Advancements in Facial Recognition and Surveillance Systems:

China has made notable strides in facial recognition technology, leading to the widespread deployment of surveillance systems across the country. Companies like Megvii, SenseTime, and Dahua Technology have developed advanced facial recognition algorithms that can identify individuals with high accuracy. Facial recognition technology is being used for various applications, including public security, access control, and personalized marketing. However, concerns have been raised regarding privacy and the potential for misuse of such technologies.

AI in Healthcare:

China is leveraging AI to revolutionize its healthcare sector. AI-powered medical imaging systems are being used to assist doctors in diagnosing diseases, interpreting medical images, and detecting early-stage cancers. Companies like Ping An Good Doctor and iFlytek are developing AI chatbots that can provide preliminary medical advice based on symptom analysis. Moreover, AI algorithms are being applied to analyze vast amounts of medical data to identify patterns and improve treatment outcomes.

Autonomous Vehicles and Smart Transportation:

China is actively developing autonomous vehicle technology and aims to become a global leader in the field. Companies like Baidu, Pony.ai, and WeRide are conducting extensive research and development on self-driving cars. China's large population and diverse transportation challenges provide an ideal testing ground for autonomous vehicles. Additionally, the integration of AI into traffic management systems is enhancing efficiency, reducing congestion, and improving road safety.

AI Ethics and Regulation:

China recognizes the importance of addressing ethical considerations in AI development. The government has issued guidelines and regulations to ensure responsible and transparent AI deployment. Initiatives such as the "New Generation Artificial Intelligence Governance Initiative" aim to establish ethical norms, promote AI safety, and address potential risks associated with AI technology. China is also actively participating in global discussions on AI governance and ethics.

Challenges and Future Outlook:

Despite remarkable progress, China faces certain challenges in the development of AI. One major concern is the quality and accessibility of data, as AI algorithms require vast amounts of high-quality data for training and validation. Additionally, attracting and retaining top AI talent is crucial for sustaining growth and innovation. The competition for talent both domestically and internationally poses a significant challenge.

Looking ahead, China's AI development is expected to continue at a rapid pace. The integration of AI into various sectors will bring about increased efficiency, economic growth, and societal benefits. However, it is essential to address ethical concerns, privacy issues, and the potential impact on employment. International collaboration and cooperation will also play a vital role in shaping the future of AI development in China and the global AI landscape.

China has made impressive strides in the development of artificial intelligence, driven by government support, significant investments, and a thriving tech ecosystem. From facial recognition and healthcare to autonomous vehicles and AI ethics, China's progress in AI showcases its determination to lead in this transformative technology. By addressing challenges and embracing responsible AI development, China has the potential to shape the future of AI not only within its borders but also on a global scale.

------------------------

China has begun a fresh round of nationwide inspections to work out how much money local governments’ owe, according to people familiar with the matter, a sign that authorities are preparing to take concrete steps to tackle a key financial risk.

Wang Wen, Executive Dean of the Chongyang Institute for Financial Studies at Renmin University of China delivered a speech at “习近平外交思想与‘身边的国际社会’理论研讨会 a seminar on Xi Jinping Thought on Diplomacy and its relevance to the "international community around us" on May 9. Below is a condensed version of his speech:

While the term "international community" may sound sophisticated, it exists right within our own society. Through social media platforms like WeChat, Chinese individuals can engage with a diverse range of foreigners, including diplomats, foreign journalists, businesspeople, international students, and overseas Chinese. These daily interactions, such as likes, comments, and conversations, contribute to the formation of an "international community around us." This community has significant influence over the number of long-term foreign elites residing in China and their integration into Chinese society. Moreover, it plays a vital role in shaping China's relationship with the rest of the world, particularly developed nations, and can contribute to resolving existing tensions.

One crucial challenge that China faces is the insufficient infrastructure to fully leverage the potential of the "international community around us." To establish and strengthen this community and propel China's global influence, breakthroughs and expansion in infrastructure are necessary. This includes developing and enlarging various institutional frameworks related to finance, business, and management. Looking ahead, attracting more global talents and foreign elites is vital for China to become a socialist modernized strong nation.

Furthermore, there is a significant disparity between China's global power status and the current quantity and quality of foreign residents and talents in the country. This disparity raises concerns. On one hand, statistics indicate an overall increase in the number of foreigners in China, but there has been a notable decrease in individuals from developed countries.

According to the seventh national census, the number of long-term residents from developed countries in China showed varying degrees of decline from 2010 to 2020. For example, the number of French citizens residing in mainland China decreased by about 40%, from 15,087 to 9,196. The number of Americans decreased by 23%, from 71,000 to 55,000. The number of German, Italian, and Japanese citizens residing in China has also declined.

As China's most internationalized city, Shanghai experienced a decrease in the number of foreigners from 208,000 in 2011 to 163,000 in 2021. I reside in Beijing's Wangjing Street, a relatively internationalized neighborhood. Ten years ago, nearly 100,000 Koreans were living in Wangjing, but now the number may be only 20,000. The proportion of foreign residents in China is approximately 0.05%, which is significantly low for the world's second-largest economy. It lags behind the percentages in Japan and South Korea, both of which have over 2% of foreign residents. It is even lower than countries like Laos (approximately 0.8%) and Cambodia (approximately 0.5%).

In general, top-tier talents tend to come from developed countries, but the fastest-growing segment of foreign residents in China consists of individuals from developing nations. However, the challenge of effectively accommodating and retaining high-caliber global talents in the long term remains unresolved in China.

The decline in the number of residents from developed countries in China over the past few years can be attributed to various factors, such as the impact of the COVID-19 pandemic and the intensification of the Sino-US competition. However, another significant factor often goes unmentioned: the actual implementation of China's policies and the social-cultural environment still have room for improvement to effectively accommodate foreigners. In light of this, four suggestions are in order to attract a greater number of high-caliber foreign talents.

Firstly, efforts should continue to attract foreign investment and enhance the business environment, ensuring a rapid influx of foreign capital. The rapid increase in foreign investment is crucial for domestic development prospects and countering Western containment. Central and local governments need to address foreign investment access in areas such as tariff barriers, banking and finance, postal services, securities and insurance, construction and tourism, education, and telecommunications.

Secondly, fostering social acceptance and cultural inclusiveness towards foreigners is essential. Regrettably, derogatory comments about foreigners can be found in Chinese public discourse, contradicting China's traditional values of inclusivity and failing to showcase the confidence of a great nation. Particularly in the context of escalating competition between China and the West, approaching foreign individuals, especially those from Western countries, with a fair and balanced mindset is crucial. Treating foreigners equitably based on law rather than cultural biases or social prejudices is a fundamental value for citizens of a modern great nation.

Thirdly, guaranteeing quick and convenient procedures for foreigners in various areas, such as finance and taxation, residence, tourism, and daily life, is crucial. Foreign students, workers, and long-term residents coming to China should receive equal treatment as Chinese citizens, including simplified processes for registering WeChat and Alipay accounts, obtaining credit cards, and accessing social security, medical insurance, and pension. These procedures should be streamlined to ensure convenience and efficiency for foreigners settling in China.

The key to "coordinating security and development" is to promote development while ensuring overall security. It is crucial to maintain overall security while continuously advancing rapid development. An important criterion for testing local governance is if it does NOT prioritize security and in the process stifle development or international exchanges.

Lastly, reforms and innovations can be promoted in China's approval process for intellectual exchanges with foreign countries. Exploring interactions between China's intellectual community and foreign scholars, businesses, embassies, media, and related individuals for greater flexibility can transition from a pre-approval system to a post-reporting system. Requiring pre-approval for every interaction can impede academic and exchange activities, potentially tarnishing China's international image.

Against the backdrop of General Secretary Xi Jinping's continuous call for "comprehensive opening up to the outside world" and the central government's emphasis on openness, it is necessary to reflect on and remind the Chinese government at all levels to pay attention to the specifics of their policies regarding international exchanges. The devil is in the details, as they determine the success or failure and the actual outcome of China's interactions with foreign countries and the construction of the "international community around us."

Amidst ongoing reports in overseas public opinion suggesting a decrease in the number of long-term residents from developed countries in China and claims of China's lack of accommodation towards foreigners or inconvenience in traveling within the country, it is essential to reflect on these issues and ensure that the implementation of policies aligns with the goals of openness and fosters positive international interactions.

--------------------------------

Source: Pekingology

China’s much-anticipated economic recovery isn’t turning out to be as ebullient as some bullish investors hoped. And yet investors looking to policy makers to power stocks higher with aggressive stimulus might be disappointed. China’s growth is indeed recovering—a contrast to slowing economies in the U.S. and elsewhere—but not at the robust pace expected. That leaves the world’s second-largest economy in a difficult in-between.

Just on Wednesday, data showed that China’s exports fell 7.5% in May from a year earlier, a much steeper drop than economists had projected and the first contraction in three months. That, along with other weaker data points lately, has sparked hopes for more stimulus to rev up growth. But policy makers so far appear more intent on stabilizing the economy rather than supercharging it.

Chinese stocks, in turn, have lost  7% over the past three months. It’s a stark comedown from the fall, when Chinese stocks surged for three months after Beijing lifted its harsh Covid-19 restrictions in late October.

Of course, policy makers have rolled out some efforts to help the recovery—like lowering deposit rates to nudge Chinese savers to spend more. Lenders including Industrial and Commercial Bank of China, China Construction Bank and Bank of China are now offering 2.45% and 2.50%, respectively, on three- and five-year time deposits, down by 15 basis points from September.

But so far, these efforts don’t seem to have persuaded households—or companies—to do so. For that to happen, TS Lombard Chief China Economist Rory Green says employment and income prospects need to improve to help repair confidence.

BCA Research Chief Strategist Arthur Budaghyan in a recent note said consumer spending will likely keep growing since Covid-19 restrictions have lifted, but at a slower pace than in the past.

As for companies, those on China’s mainland are among the most debt-laden in the world, Budaghyan adds. Combine that with a lack of government stimulus and lackluster demand, and these businesses likely won’t rush into investing, expanding, or hiring. That could be yet another obstacle for continued economic momentum.

For now, Chinese policy planners are in a “wait-and-see mode” about whether the economy will regain momentum on its own, says Shehzad Qazi, managing director at research firm China Beige Book.  If growth disappoints in the second quarter, Qazi expects Beijing will roll out more stimulus. TS Lombard’s Green also expects more measures, along the lines of accelerated use of local government bond quotas, cuts to the required reserve requirements at banks to spur lending, and support for the real estate market with reduced down payment requirements.

But it isn’t clear if such measures would jump-start growth. And Beijing remains wary of exacerbating the longer term challenges it has tried to tackle in recent years, such as high levels of debt throughout its economy, including at the local level, financial speculation, and the excesses in the property market.

Another reason China might not be able to rely on its old playbook of leaning on infrastructure and construction to juice its economy: It might not have enough blue-collar workers to take on these projects. By 2025, the manufacturing sector is expected to see a shortfall of 30 million workers, according to Budaghyan. The silver lining: China is likely to keep rolling out efforts to put a floor under its economic growth.

---------------------------

Source: Baron's

China’s first domestically produced passenger jet took off on its maiden commercial flight on Sunday, a milestone event in the nation’s decades-long effort to compete with western rivals in the air. Beijing hopes the C919 commercial jetliner will challenge foreign models like the Boeing 737 MAX and the Airbus A320, though many of its parts are sourced from abroad.

Its first homegrown jetliner with mass commercial potential would also cut the country’s reliance on foreign technology as ties with the West deteriorate.“In the future, most passengers will be able to choose to travel by large, domestically produced aircraft,” state broadcaster CCTV said.

China Eastern Airlines flight MU9191 rose into the skies above Shanghai Hongqiao Airport on Sunday morning, footage from CCTV showed. The plane is carried over 130 passengers, the broadcaster said. Passengers received red boarding passes and enjoyed a sumptuous “themed meal” to commemorate the flight, CCTV reported.

China has invested heavily in the production of the homegrown jet as it seeks to become self-sufficient in key technologies. The aircraft is manufactured by the state-owned Commercial Aircraft Corporation of China (COMAC), but many of its parts – including its engines – are sourced from overseas.

From Monday, the C919 will operate on China Eastern’s regular route between Shanghai and the south-western city of Chengdu, CCTV reported.

The first model of the narrow-body jet, which seats 164 passengers, was formally handed over to China Eastern last year during a ceremony at an airport in Shanghai, hailed by state media as “an important milestone” for the country’s aircraft industry. Zhang Yujin, COMAC’s deputy general manager, told state-backed Shanghai outlet The Paper in January that the company had taken about 1,200 orders for the C919. COMAC planned to increase annual production capacity to 150 models within five years, Zhang said at the time.

Asia – and China in particular – are key targets for both Airbus and its American rival Boeing, which are looking to capitalise on growing demand for air travel from the country’s vast middle class. Last month, Airbus said it would double its production capacity in China, signing a deal to build a second final assembly line for the A320 in Tianjin.

The first assembly site in the northern city opened in 2008 and produces four A320s a month, with Airbus hoping to increase that to six a month before the end of the year.

--------------------------

Source: The Guardian

Specialised kids’ fitness training centres are set to be in high demand in Chinese cities following the raft of new education policies that were introduced from 2020 onwards.

The kids’ fitness industry started in 2017 but only gained momentum recently. A 50% year-on-year increase was noticed by one owner of a kids’ fitness centre in Hohhot in Inner Mongolia during the most recent winter vacation and he also noticed several new centres popping up in the neighbouring area in the span of two weeks. The kids’ fitness training market in China is expected to exceed 130 billion RMB (18.7 billion USD) in 2023, according to Duojing Educational Research Institute.

Fitness training for young people has become a top government priority in recent years due to concerns about the “feminisation” of boys in China, which many blame on the importing of Korean pop culture, called the “Korean Wave”.

In 2020, China’s Ministry of Education issued a notice calling for the “prevention of the feminisation of male youth”, largely through the strengthening of physical education provision in schools. Whilst the move initially stirred some controversy, it was later explained by the government that “masculinity” was not about gender stereotyping, claiming that the term encapsulates a range of admirable qualities all youth should strive for.

During the pandemic the concept of kids’ fitness took root in the minds of parents, many of whom witnessed the detrimental impact of at-home schooling on the mental health of their children. As of 2021 private tutoring companies, a dominant feature of education in urban China, were also banned to curb the excessive pressure the industry placed on parents and children. Fitness classes are the perfect option for middle class parents with cash to spare, helping to assuage health concerns at the same time as filling the gap left by the shutting of tutoring businesses.

Practitioners within this burgeoning field are now striving for standardisation so that kids’ fitness training can earn greater recognition and trust among parents across the country. Looking to the future, the head of a kids fitness centre in Inner Mongolia said “We will create exclusive profiles for each child, regularly monitor the child’s fitness, and share data on the effectiveness of the program so that the child’s progress can be seen at a glance.”