China Economy

What makes the world's second largest economy tick
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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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Hong Kong Economy
Secretary for Development Bernadette Linn Hon expects developers to deliver some results within two years after the commencement of their projects, with a total time frame of six to seven years for completion. Photo: Jonathan Wong
Hong Kong Economy
Hong Kong confident in mega-project bids amid economic headwinds
Secretary for Development Bernadette Linn Hon optimistic of successful tenders for Northern Metropolis projects despite US-China tensions.
Foreign businesses operating in Chinese business hubs such as Beijing (pictured) are worried about the impact of the US-China trade war. Photo: AFP
Global Economy
US, EU, German business chambers in China brace for ‘long-lasting’ trade war
Some say China-US strife offers an opportunity for other third countries to re-evaluate their relationship with China.
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Employees of Jiangxi Banbiantian Pharmaceutical pack medicines at the company’s plant in Jiangxi province. Photo: VCG via Getty Images
China Business
Trump’s tariffs: will Chinese pharmaceutical industry feel the pain?
With biotech firms caught in the crosshairs of Trump’s tariffs, the levy could prove to be a boon for domestic producers but a bane for exporters.
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A drone view of an eco-industrial park in Wuxi, Jiangsu province. Few people distant from China properly recognise the awesome size and diversity of China’s economy. By some counts, the city of Wuxi alone has an economy comparable to New Zealand’s. Photo: Xinhua
China Opinion
Opinion|Cities power growth. China has more megacities than anyone else
Many Chinese cities have country-sized economies. Places some Westerners haven’t heard of would have UN seats if they were countries.
Outspoken Chinese economist Yu Yongding has warned of the precarity of Beijing’s overseas assets amid a heated trade war with the US. Photo: Shutterstock
Global Economy
Economist says China’s overseas assets at risk as trade war hits boiling point
Yu Yongding, a former central bank adviser, says Beijing’s foreign holdings could become another battleground in the US-China trade war.
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Tesla’s Model 3 on display at a showroom in Beijing. Photo: EPA-EFE
China Business
Tesla halts importing Model S and X in China as buyers balk at tariffs
Tesla has stopped taking orders to import the US-made models to China; to persuade buyers to consider the Shanghai-made Model Y and Model 3.
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China has responded to US President Donald Trump’s latest tariff increase with a reciprocal rate on American goods. Photo: AFP
China Economy
China ups tariffs on American goods to 125%, will ‘ignore’ future US hikes
Latest move matches tariff level announced by US President Donald Trump, and officials say any future US increases will not be met with reply.
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Reflections in a brokerage house window in Beijing show a chart of stock market movements on Wednesday. Photo: Reuters
China Economy
Worried Chinese retail investors want answers about US exposure
China’s more than 100 million retail investors have seen the A-share market shed about 4.5 trillion yuan of value this month.
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This spring’s Canton Fair, though slated to host more companies than last fall’s session, is shrouded in uncertainty amid the US-China trade war. Photo: Xinhua
China Economy
China’s exporters on edge as trade war casts shadow over Canton Fair
China’s oldest and largest trade fair unlikely to be a bonanza as exporters prepare for lean times amid tariff-induced uncertainty.
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An assembly line inside an electric vehicle (EV) factory owned by Li Auto in Changzhou in eastern Jiangsu province. Photo: Xinhua
China Business
China’s auto-parts makers could face biggest risk from tariff war fallout
At biggest risk US$13.6 billion worth of components which China ships to the US annually.
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The US-China trade war threatens to spill over into the financial markets, with unpredictable consequences, analysts say. Photo: TNS
China Economy
Will China dump US treasuries? Fears of ‘vicious spirals’ in global markets grow
Fears are growing that the US-China trade war could enter an unpredictable – and potentially devastating – new phase.
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China is searching for reserves of a rare quartz that is critically important in the production of solar panels. Photo: AFP
China Economy
China kicks off hunt for rare quartz, with hi-tech aspirations in mind
The critical mineral, used to produce silicon, is a foundational material for strategic industries like semiconductors and photovoltaics – and now it can be mined in China.
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The booth of Cambricon Technologies a the 2021 World Artificial Intelligent Conference in Shanghai. Photo: Cambricon Technologies
Big Tech
Sanctioned Chinese chip firms shrug off Trump tariffs, anticipate new business
Chipmakers and analysts anticipate benefits to China’s chip supply chain from the fresh US tariffs, including for equipment and components.
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Containers are seen at a port in China’s Shandong province. China is improving its export controls to mitigate the impact of a trade war with the United States. Photo: AFP
China Economy
China vows new safeguards to export controls as trade war rages on
Efforts also aim to protect China’s ‘sovereignty, security and development interests’.
Illustration: Craig Stephens
China Opinion
Opinion|Trump’s targeting of China will only spur its economic recovery
Trump’s policies are repelling nations and academics, helping China deepen trading ties and attract talent even as the US heads towards recession.
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A shop owner holds a toy featuring US President Donald Trump at the Yiwu International Trade Market in Yiwu, Zhejiang province, on Thursday. Photo: AFP
China Economy
China seeks to strengthen EU, Asean ties as US trade war escalates
China and European Union ready to engage on thorny issues such as electric vehicle imports as Trump’s tariff plans spark concerns.
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Peng Zhihui, founder of AgiBot. Photo: Handout
Tech Trends
Meet Peng Zhihui, the latest robotics star to catch the premier’s attention
The founder of AgiBot joins a new generation of tech entrepreneurs who have gained recognition from China’s top leadership.
Analysts say many of China’s export industries may be forced to redirect their products to the domestic market as the risk intensifies of a complete decoupling from the United States. Image: Shutterstock
Global Economy
US, China competing for ‘economic resiliency’ in a test of endurance: economists
As trade conflict threatens a complete decoupling, analyst asks: ‘If the US produces everything domestically, why would other countries need the dollar?’.
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US President Donald Trump’s sudden turnaround on tariffs for most countries - except China - has added more volatility to global trade. Photo: AFP
Global Economy
‘War has started’: Trump tariff pause won’t ease trade tensions, analysts say
Rapid movements in the US-China trade war, even with a 90-day tariff pause, are throwing the global economy into turmoil, analysts say.
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Domestic consumption has taken on new importance in China as the US imposes hefty tariffs on Beijing’s imports. Photo: AFP
Economic Indicators
China’s consumer prices fall in March as trade war reaches fever pitch
China’s consumer prices declined 0.1 per cent at a decisive moment in protracted trade conflict with US.
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US President Donald Trump at the White House on Wednesday, when he announced a 90-day pause in his tariff regime, except for China. Photo: Reuters
Economy, Trade & Business
Trump raises China tariffs to 125%, pauses those on other nations for 90 days
Markets soar on the move, seemingly an attempt to narrow a US trade war with most of the world to one between Washington and Beijing.
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China’s rapid advancements in the field of robotics have created new opportunities for investment in the country, even as US tariffs hit trade. Photo: Xinhua
Global Economy
As tariffs hit China, ‘bold’ US firms could bolster their market share, CEO says
Some American businesses see an opportunity to ‘jump in’ during volatile times, and foreign firms already in China are advised to ‘weather through’.
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China may face greater deflationary pressure amid the trade war, as a decline in US demand leads companies to build of large inventories of unsold goods. Photo: AFP
China Economy
US inflation? China is more worried the trade war will make goods too cheap
As American demand declines, Chinese producers will be forced to compete even more fiercely for orders at home.
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Presidents Xi Jinping and Donald Trump shake hands in 2017. Beijing has released a new white paper calling for a return to dialogue to work through differences with Washington. Photo: Reuters
Global Economy
Beijing white paper outlines China trade stance before retaliatory strike on US
Beijing issues a white paper for third time since trade war started in 2018, outlining position on major bilateral concerns.
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China has responded swiftly to US President Donald Trump’s imposition of additional 50 per cent tariffs on its goods. Photo: Shutterstock
China Economy
China fires back with fresh 50% tariff in stern rebuke to Trump’s escalation
Matching blows with Washington, Beijing’s tariff hike brings the accumulative tariff total to 84% on goods from US, as trade war rapidly intensifies.
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Shoppers in Shanghai on February 28. The property bubble has been lanced, people are braced and households have twice as much savings as debt. There is very little economic downside left for China, and no scenario in which it cannot go on. Photo: Reuters
China Opinion
Opinion|Why China can and should go all out against Trump in his trade war
China has all the cards and the confidence; but for the US, the likely outcome is the bursting of the US financial bubble and the dollar’s demise.
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A farmer harvests grapes at a vineyard in the Ningxia autonomous region in northwestern China. Photo: Xinhua
China Business
Hong Kong and Ningxia forge trade ties amid US-China tariff war
Deals worth US$616 million were signed at the launch of the Ningxia-Hong Kong Cooperation Advisory Committee.
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The People’s Liberation Army launched joint exercises around Taiwan on April 1, marking Beijing’s latest warning to the island. Photo: CCTV
China Business
Chinese defence stocks in play as Trump’s tariffs erase DeepSeek-fuelled gains
Military industry is providing stability against the backdrop of turbulence in global markets, Industrial Securities analyst Shi Kang says.
The spot price of gold has fallen by about 5.1 per cent since April 3. Photo: Reuters
China Economy
Gold slumps as Trump tariffs prompt sell-off, but it remains a safe-haven choice
Spot price climbed 40 per cent in a year, but it has now fallen 5.1% from peak in less than a week.
US President Donald Trump has raised tariffs on Chinese goods by a cumulative 104 per cent. Photo: AP
China Economy
China prepared to ‘strike back’, state media says as new tariffs kick in
In the wake of more US tariffs on Chinese goods, Beijing’s media arm keeps up defiant language but adds door is not closed to talks.
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Opinion
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
Editorial|China’s austerity is very different to that in US
Beijing is targeting wasteful spending on projects and misuse of public money by officials, not savings to finance tax cuts.
SCMP Editorial
Editorial|China offers stability in a world roiled by rising trade tensions
Premier Li Qiang has reassured major CEOs from around the world that the nation remains open for business despite Donald Trump’s tariff threats.
SCMP Editorial
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Editorial|Uncertainty from the US will have impact on local interest rates
Three key economic factors highlighted by US Fed chairman Jay Powell should have borrowers carefully assessing the interest rate risk.
SCMP Editorial
Editorial|Beijing’s ambitious plan can help to prime the consumption pump
Communist Party Central Committee and State Council issue 30-point action plan aimed at reviving Chinese economy and stoking domestic spending.
SCMP Editorial
Editorial|Walmart’s bid to force China to pay Trump tariffs is unacceptable
Chinese suppliers with already razor-thin margins should not have to bear the costs of Washington’s trade war.
SCMP Editorial
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