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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News
Hong Kong Opinion
Illustration: Craig Stephens
Hong Kong Opinion
Opinion|How Hong Kong became the trusted bridgehead for China firms going out
Firms eager to escape oversupply and involution at home are looking to leverage Hong Kong’s trusted institutional interface.
US Trade Representative Jamieson Greer during an interview at the White House in October. Photo: Reuters
China
US seeks ‘constructive’ reset with China as trade tensions ease: Greer
Trade envoy says Washington aims to steady ties after a bruising tariff year, even as disputes over minerals and AI chips persist.
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The Great Hall of the People in Beijing. Photo: Reuters
Money & Wealth
China heads into 2026 with economic strains, uneasy US rivalry: Asia Society
Report says Beijing must juggle control and growth as debt, demographics and US tech tensions shape the year ahead.
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A container ship arrives at the Port of Balboa in Panama City, Panama, on October 27. Latin America has emerged as a focal point in the competition between Washington and Beijing. Photo: EPA
Diplomacy
China pledges aid to Latin America, Caribbean with no ‘political conditions’
Third strategy paper of its kind released as Beijing seeks to expand its influence in a region Washington actively courts.
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The City of London financial district’s skyline, as seen from the Thames River. Photo: EPA
China Economy
China’s sovereign fund reveals it opened London office after Trump win
China Investment Corporation opened its third offshore office in London in December 2024, joining outposts in Hong Kong and New York.
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China’s first comprehensive factory dedicated to the assembly, testing and reuse of carrier rockets, in south China’s coastal city of Wenchang. Photo: People’s Daily
China Economy
China launches satellite ‘super factory’ in bid to rival Elon Musk’s Starlink
The facility features a ‘factory-to-launch’ pipeline, expected to make it faster and cheaper to build low Earth orbit constellations.
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Photo: SOPA Images/LightRocket
Daily Pulse|China’s economy can probably ride out storms in 2026
Policymakers meeting in Beijing this week will probably see few reasons for new stimulus measures after China’s economy largely weathered the US trade war.
IMF Managing Director Kristalina Georgieva speaks at a press conference during the 2025 Spring Meetings of the World Bank Group and IMF in Washington, DC, the United States, on April 24. Photo: Xinhua
China Economy
IMF raises China growth forecast to 5% for 2025, citing resilience
The assessment is up from October’s forecast, with the fund citing government stimulus and lower tariffs as drivers.
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Customers shop at a store in Beijing on October 19. Photo: Reuters
Economic Indicators
China’s consumer prices rise at fastest pace in nearly 2 years in November
Consumer price index rises by 0.7 per cent for the month, while factory-gate prices continue long decline.
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A China-Europe freight train leaves the Xian international port station in Shaanxi province on November 17. Photo: Xinhua
China Economy
‘Toothpaste without China’? EU firms must stop Beijing, US overreliance: report
European Union Chamber of Commerce in China urges companies to “eliminate single-source dependencies”.
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An aerial drone photo taken on March 12, 2024, shows Guangzhou in south China’s Guangdong province. Photo: Xinhua
China Economy
China’s powerhouse province targets doubling GDP by 2035 – but can it deliver?
Southern province in Greater Bay Area has fallen short of national average since 2021, but new proposals pin hope on hi-tech industries.
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US President Donald Trump and President Xi Jinping talk after a bilateral meeting in Busan, South Korea, on October 30. Trump said on Monday that he had reached an agreement with Xi to allow US chip giant Nvidia to export advanced artificial intelligence chips to China. Photo: Reuters
Global Economy
US-China tech thaw? Trump clears Nvidia H200 exports – why it matters
It’s a ‘sliding scale’ strategy, analysts say of Trump’s U-turn – preserve American market share while dampening Beijing’s self-reliance push.
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Nvidia’s H200 chips are expected to be in demand in China after Washington approved shipments to the country. Photo: Shutterstock
Big Tech
China’s AI developers to welcome Nvidia’s H200 chip shipments, analysts say
Nvidia faces stronger domestic competition from the likes of Huawei, Cambricon, Moore Threads and MetaX.
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Economist Jin Keyu at a 2023 Ted Talk. Photo: Handout
China Economy
‘China threat’ narrative a ‘complete mislabelling’, economist Jin Keyu says
At a recent summit, the economist said China has been a ‘benefactor’ by lowering the cost of technology for developing economies.
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A man walks past posters advertising Japanese restaurants at a shopping mall in Shanghai. Tensions between China and Japan remain high amid a dispute over Taiwan. Photo: Reuters
China Economy
‘We’ve been careful’: Japanese firms in China stay calm amid political storm
Japanese businesses in China are under pressure amid a diplomatic row over Taiwan, but they have dealt with political tensions for years.
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A woman shops in a supermarket in Beijing on December 8, 2025. Photo: EPA
China Business
China’s cautious shoppers continue to challenge consumer brands
Makers of fast-moving goods must look to lower-tier cities for growth as deflation persists, Bain & Co and Kantar Worldpanel say.
Between the Lines|Explaining the key points from China’s Politburo December meeting
SCMP Plus annotates an official report of the monthly meeting of China’s Politburo, which focused on the economic work needed in 2026, including stepped up efforts to boost domestic demand and cope with trade ‘turbulence’.
Illustration: Lau Ka-kuen
China Economy
Are US, EU and Japan banking on defence spending for an economic boost?
As advanced economies ramp up military expenditures, they have multiple goals - including a reduced reliance on China in defence supply chains.
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Jihad Azour, director of IMF’s Middle East and Central Asia Department, speaks during Abu Dhabi Finance Week in the United Arab Emirates on December 8, 2025. Photo: Coco Feng
Tech
AI spending helps save global economy under threat of trade war, IMF director says
AI investment, especially in the US, helped mute the impacts of increased tariffs, Jihad Azour says at Abu Dhabi Finance Week.
Labourers work on an assembly line at a factory in Chongqing, China, in May. Beijing has pressed German carmakers to help resolve disputes over the European Union’s anti-subsidy tariffs on Chinese electric vehicles. Photo: EPA-EFE
Global Economy
China leans on German carmakers to help break Brussels tariff deadlock
Commerce vice-minister urges German industry leaders to leverage their clout to push the European Commission towards a compromise on the anti-subsidy probe.
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The gig workforce in China includes food delivery drivers, an industry known for its intense demands. Photo: Getty Images
China Economy
China warns internet platforms not to shift tax burden onto gig workers
Celebrities and high-profile influencers also under scrutiny, with regulators pursuing hundreds of such cases in recent years.
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A view of the China Securities Regulatory Commission’s headquarters in downtown Beijing, Photo: Simon Song
Banking & Finance
New China guidelines to base asset managers’ pay on the performance of funds
The China Securities Regulatory Commission seeks a performance-based salary mechanism at the country’s 160 mutual fund houses.
Commerce Minister Wang Wentao has called for China to push ahead with opening-up policies over the next five years. Photo: Xinhua
China Economy
Chinese minister calls for more opening-up as key planning meeting looms
Commerce Minister Wang Wentao’s remarks echo similar calls by other senior officials ahead of annual central economic work conference.
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President Xi Jinping and French President Emmanuel Macron are seen here at a Unesco World Heritage site in Dujiangyan, Sichuan province, on Friday. Photo: AFP
Global Economy
Macron’s trade ultimatum to China goes public: fix surplus or face tariffs
French president says EU could copy American protectionism, warning that a lopsided flow of goods results in China ‘effectively killing their own customers’.
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President Xi Jinping presided over a meeting of the Politburo of China’s Communist Party, held in advance of the annual central economic work conference. Photo: Xinhua
Policy
China’s Politburo pledges action to tackle trade ‘struggles’ in 2026
Analysts said the decision-making body’s phrasing on the international trade environment suggests a cautious stance next year despite US truce.
A model of a nuclear-powered container ship is displayed at the Marintec China expo in Shanghai last week. Photo: China News Service/VCG via Getty Images
China Business
China’s oldest shipyard Jiangnan plans world’s first nuclear-powered vessel
Construction on 25,000-container ship could start in the next 10 years, but a lot remains to be done, a top executive says.
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Illustration: Lau Ka-kuen
China Economy
Economist Huang Yiping on why China’s AI push must be ‘job-oriented’
Dean of Peking University’s National School of Development says ‘balance’ needed in AI development to protect employment, ‘human well-being’.
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Russian President Vladimir Putin addresses reporters after attending the Russia Calling! investment forum in Moscow on December 2. Photo: EPA
China Economy
Chinese firms gear up for Russia’s reopening amid talks aimed at peace deal
Many Chinese exporters expect the first wave of post-war demand in Russia to come from infrastructure.
Densely packed Shenzhen is rapidly running out of room for development. Photo: Eugene Lee
China Economy
China’s land-starved Shenzhen moving massive landfill to make more space
At the centre of the city, where open land is scarce, trucks are removing 6,000 cubic metres of waste a day to free up 30 valuable hectares.
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Beyond Meat burger patties on sale in New York. Photo: Reuters
China Economy
Flash in the pan: how China’s plant-based meat craze fizzled
The closure of Beyond Meat’s China business, despite heavy financing and marketing, underscores challenges that scuppered many vegan meat firms.
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Opinion
Editorial|‘Partner port’ ties will help Hong Kong navigate global trade volatility
New deals with mainland Chinese and Chilean ports will enhance the city’s status as an international hub for finance, shipping and trading.
SCMP Editorial
As I see it|China’s extended property slump was always expected
History has shown that when real estate bubbles burst, the economic damage is usually severe and prolonged.
SCMP ColumnistAlex Lo
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Editorial|As China ages, nurturing the silver economy could help drive growth
Beyond technological competitiveness, it is important for China to build an elderly care system that supports an increasingly ageing populace.
SCMP Editorial
Editorial|China’s commitment to globalisation evident at import expo
The event also underlined the importance of mainland consumers as growth drivers for the world economy.
SCMP Editorial
Editorial|Hot on heels of truce with US, import expo shows China’s resolve to open up
More than an exhibition, the expo is a statement of intent in a rapidly changing global landscape.
SCMP Editorial
Editorial|Beijing’s full backing for Hong Kong on display at finance summit
Hong Kong has a role to play in global financial governance.
SCMP Editorial
Macroscope|Asia’s trading powerhouses are more Trump-proof than many feared
High US tariffs not only did not cripple export-oriented economies like South Korea, thanks to the AI boom, but they also pushed policymakers to embark on reforms.
Nicholas Spiro
Editorial|Hong Kong can look forward to new chapter under 15th five-year plan
As its integration with the mainland deepens, Hong Kong must leverage its strengths and seize the opportunities offered in the nation’s latest development blueprint.
SCMP Editorial
Inside Out|What the world can learn from China’s high-speed rail revolution
With its vast network of high-speed trains and ability to develop at scale, the country stands above all others in redefining railway travel.
David Dodwell
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Editorial|Hong Kong marks National Day with hope amid challenges
As the People’s Republic of China turns 76, Hong Kong remains dedicated to national development and local growth.
SCMP Editorial
Editorial|As China drafts another five-year plan, it must brace for challenges
Amid domestic and global headwinds, national development won’t be easy. Hong Kong can help serve Beijing’s development goals.
SCMP Editorial
Macroscope|Tide may finally be turning in China’s battle against deflation
With economic indicators offering reasons to hope, the only question is how quickly and decisively Beijing can revive domestic demand.
Nicholas Spiro
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