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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China Business
A Leapmotor C10 model car is displayed at a showroom in its headquarters in Hangzhou. Photo: Getty Images
China Business
Leapmotor targets global growth with Europe R&D hub, eyes Canada assembly
Chinese EV maker lifts overseas sales target as rising fuel costs and easing tariffs boost demand abroad.
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US Secretary of State Marco Rubio at the G7 Foreign Ministers’ meeting in Paris last month. Photo: Reuters
Diplomacy
Rubio raises concerns over China’s detention of Panama-flagged ships
Panama’s decision to strip Panama Ports Company of its concessions is a test of US backing for countries challenging China, experts say.
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Shipping containers wait to be transported along a railroad at the port of Los Angeles in Long Beach, California, one of the busiest gateways for US trade. Photo: Reuters
US
As Xi-Trump summit approaches, tariffs continue to choke direct trade
Deficit with mainland hits two-decade low as trade shifts to Taiwan, Mexico and Vietnam amid tariff fallout and efforts to stabilise ties.
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Large numbers of cars and containers are stacked at a port waiting for export in China’s eastern Jiangsu province. Photo: AFP
China Economy
‘False proposition’: state media hits ‘China shock’ as cover for Western anxiety
The state-run Economic Daily says the real problem with the global economy is not China’s strong exports, but rising protectionism.
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Illustration: Lau Ka-kuen
China Economy
Iran war to test China’s self-reliance, Goldman Sachs economist says
Andrew Tilton, Goldman’s chief Asia-Pacific economist, on Iran conflict’s impacts, why exports continue to drive China’s growth and an end to its housing slump.
A China Eastern Airlines plane takes off from Shanghai Hongqiao International Airport. Photo: Xinhua
China Economy
Chinese airline regulator faces dilemma as Iran war sends fuel costs soaring
Pending announcement from regulator, two airlines reveal plans for sixfold increase in surcharges.
Flats under construction in Nanjing, Jiangsu province, in eastern China on February 13. Photo: AFP
China Opinion
Opinion|Reinflate the property sector? No, China wants an ambitious redesign
Beijing is attempting a difficult pivot: transforming real estate from a debt-driven growth engine into a pillar of a consumption-led economy.
Brazilian importers buying from China are turning to the state-owned Chinese credit insurer, Sinosure, to sustain trade flows that reached US$158 billion in 2024. Photo: Shutterstock
Diplomacy
Brazil exporters bypass local banks to tap China’s US$1 trillion Sinosure fund
As Brazilian interest rates price out local lenders, Sinosure is quietly reshaping how Chinese goods reach the market.
3
Vehicles await export at a port in China’s Jiangsu province on March 15. A commentary in the latest issue of the Qiushi Journal says the traits of China’s economy render an export-driven growth model “unsustainable”. Photo: AFP
Global Economy
Qiushi reaffirms China’s trade push, calls old export-led growth ‘unsustainable’
Global tensions, weak high-end exports, and record trade surpluses are spurring a strategic shift to boost imports, develop services trade and deepen market integration.
2
Chinese Premier Li Qiang is displayed on a large screen live broadcasting his speech at the opening of the China Development Forum held at the Diaoyutai State Guesthouse in Beijing on March 22. Photo: AP
China Opinion
Opinion|Global businesses are piling back into China, drawn by its stability
For all its structural challenges, China offers something the West no longer seems to: policy continuity and a sense of stability.
3
Qantas is already raising airfares as Australia faces a jet fuel supply crunch amid the US-Israel war on Iran. Photo: AFP
China Economy
Australia and Japan face jet fuel supply crunch as China cuts exports
Both Australia and Japan are heavily reliant on Chinese jet fuel, but shipments have plunged in recent weeks amid the Iran war.
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China is building a high-speed rail tunnel stretching more than 14km (9 miles) under the Yangtze River between Shanghai and Taicang, Jiangsu province. Photo: People’s Daily
China Economy
China builds record-breaking underwater tunnels to unite eastern, western hubs
China is building new high-speed rail lines that dive underneath major waterways, providing fast services without disrupting shipping traffic.
5
A residential building under construction by China Vanke in Hangzhou, Zhejiang province, in March 2024. Photo: AFP
Business
Top Chinese developers’ losses mount as debt overhaul props up operations
Analysts say subdued demand and cautious buyers persist, with one-off debt restructuring masking deeper losses in the sector.
1
Farmers harvest rice in Aceh Besar, Indonesia. The first planting season of the year is just months away in much of Asia. Photo: EPA
Diplomacy
Why spike in fertiliser prices could boost China’s political clout
Beijing could see its regional leverage grow as the Iran war hits supply, though weaponisation of exports is unlikely, analysts say.
2
Drivers line up to refuel at a petrol station in China’s Jiangsu province last week, amid concerns about rising energy prices due to the ongoing Middle East conflict. Photo: EPA
China Economy
China has ‘room’ for imported inflation, but economic risks rising: PBOC adviser
As US-Israel war with Iran sends prices up, a monetary expert says impact on China depends on conflict’s severity, while higher energy costs are worrying.
1
Cargo ships in the Persian Gulf, near the Strait of Hormuz, on March 11. Photo: Reuters
China Economy
3 Chinese ships exit Strait of Hormuz as PetroChina stresses operations stable
PetroChina chairman addresses annual results conference as three Chinese vessels transit Strait of Hormuz and Iran passes law on transit fees.
14
China Economy
Between the Lines|Explaining China’s trade probe announcements
SCMP Plus annotates announcements by China’s Ministry of Commerce of two trade barrier investigations in response to the United States’ Section 301 probes intended to justify reimposing higher tariffs on trading partners.
The 15th five-year plan has elevated China’s AI Plus initiative into a top national priority, and the maritime sector is set to benefit. Photo: Shutterstock
China Economy
China sails into AI era with ambitious smart shipping targets
Pilot zones and more than 100 smart vessels are part of Beijing’s strategy to bolster maritime operations and address bottlenecks.
A China Eastern Airlines flight takes off from an airport in Shanghai. Demand for flights over the upcoming Ching Ming Festival holiday remains robust in China despite soaring airfares. Photo: Xinhua
China Economy
Amid soaring airfares, Chinese bookings up 20% ahead of Ching Ming holiday
Global instability fails to deter Chinese holidaymakers with airlines selling 2.04 million tickets in the lead-up to Ching Ming Festival.
3
A drone view shows an employee working on the production line of aluminium products at a factory in Huaibei, Anhui province, China, in February 2025. Photo: Reuters
Global Economy
Will Iran’s strikes on Gulf smelters strengthen China’s aluminium dominance?
Analysts say disruption at plants could shift more output to China, which already produces more than half of global supply.
5
Pigs feed inside a sprawling 26-storey hog farm in central China’s Hubei province. Photo: Xinhua
China Economy
How China’s massive pig farms created a serious pork supply glut
Vast hog farms – some rising 26 storeys high – have caused China’s pig herd to swell, but consumers dislike the industrially produced meat.
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Robots perform at the China Science Fiction Convention in Beijing. The Chinese sci-fi industry saw revenues reach a record high last year, according to a report released during the event. Photo: Xinhua
China Economy
China’s sci-fi industry rides a tech wave as revenues hit record high
China’s sci-fi industry has built on the success of breakout hits like ‘The Three-Body Problem’, with revenues up over 15 per cent last year.
1
Photo: VCG
China Economy
Daily Pulse|China deploys new trade-war weapons with US investigations
An overhaul of China’s Foreign Trade Law has given the country new tools in global trade disputes and paved the way for retaliatory measures against the US.
Illustration: Henry Wong
China Economy
Kenneth Rogoff on why China’s yuan will be a reserve currency within 5 years
Harvard economist explains why cryptocurrencies will never take the US dollar’s place, despite their popularity in underground economies.
8
Richard Liu’s brand, Sea Expandary, has signed a strategic framework agreement with the coastal cities of Shenzhen and Zhuhai in Guangdong, for a high-end yacht industrial base with planned investment of about 5 billion yuan. Photo: handout
China Economy
China’s high-end yacht owners say industry growth stifled by structural gaps
Shipowners say billionaire Richard Liu’s new venture to make yacht ownership more affordable will need to surmount significant challenges.
2
In Shanghai, about 22,000 second-hand homes changed hands between March 1 and 23, up 170 per cent from the same period a month earlier. Photo: Getty Images
Banking & Finance
Rising second-hand home sales offer signs China’s property slump is bottoming out
Increased resale activity, driven by first-time buyers and policy support, is fuelling hopes that China’s property market may be stabilising.
A food vendor passes a construction site in Beijing on February 8. Instead of trying to revive the property-led growth model, Beijing is patiently executing a debt migration by transferring default risks from the public to the state’s balance sheet. Photo: AP
China Opinion
Opinion|China’s property pivot: from growth engine to protected household asset
Social and economic stability is now the key focus as Beijing works to preserve households’ property asset wealth against developers’ debt.
Humanoid robots at the pilot testing and validation platform at the Beijing Innovation Centre of Humanoid Robotics on March 20. Photo: AFP
China Economy
AI ‘collusion’ could force wages down, warns ILO economist
Young people’s unemployment woes ‘mostly related to the current economic slowdown, more than to specific AI’, says Ekkehard Ernst.
1
Opinion
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
10
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
Editorial|China steps up its clean energy push with electric ships
As the world’s largest shipbuilder and a leader in EVs and advanced batteries, the country is well placed to help clean up the polluting shipping industry.
SCMP Editorial
Editorial|Strikes on Iran may complicate US-China ties
No significant impact expected on China’s, or Hong Kong’s, economy from the most recent conflict in the Middle East.
SCMP Editorial
Macroscope|US dollar weakness is no game changer for a globalised yuan
Beijing will seize on the crisis to promote the yuan, but without capital account liberalisation – essential for a truly global currency – its rise will remain limited.
Nicholas Spiro
Editorial|As China and Indonesia strengthen ties, Hong Kong has a role to play
The SCMP’s China Conference: Southeast Asia highlighted the synergies between the world’s second-largest and Asean’s biggest economies.
SCMP Editorial
Editorial|China well placed to take advantage of the shift away from the US dollar
A stable and strong yuan has international appeal, just as a reliable and strong China is being seen as the rock on which the global system should be rebuilt.
SCMP Editorial
2
Editorial|China’s EV industry should focus on consolidation at home, expansion abroad
With Beijing discouraging ‘irrational competition’, the fewer brands with greater scale that emerge from the consolidation wave should look to opportunities abroad.
SCMP Editorial
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