China News This Week: Wednesday 29 June 2022
This week's news and trends in China:
Chinese Consumers
Despite Tensions, Many Chinese Online Shoppers Still Covet Western Goods: 51% of Chinese shoppers who have purchased foreign products online in the past year say they will buy more Western goods than previously in the year ahead. Product quality is the main reason they buy goods from the West, followed by giving ‘consumers a sense of uniqueness’ and ‘matching individual styles or values’. Apparel and accessories, personal care products and food and beverages are the most popular purchases. Cross-border shoppers in China are slightly more likely to be female. Most are between ages 25 and 44.
Almost 80% of China’s Logistics Firms Report Falling Profits in First Five Months, Survey Shows: By late May, over half of the companies surveyed reported that road transport had generally recovered, and two thirds reported that freight transport had stayed the same or increased.
Shanghai Stock Exchange is World’s No 1 IPO Venue as Chinese Firms Return Home to Counter US Delisting Threat: A total of 68 IPOs, including jumbo offerings by China Mobile, the world’s largest mobile operator by subscribers, and CNOOC, China’s largest offshore driller, helped fundraising in Shanghai to reach $32.4 billion – 49% more than a year ago, when it ranked fourth behind Nasdaq, New York Stock Exchange (NYSE) and Hong Kong. Shenzhen Stock Exchange ranked second.
Digital China
China Plans to Review Every Single Social Media Comment, Sparking More Censorship Fears: China’s internet watchdog has proposed that social platforms review all user comments before publishing, directing platforms to hire a content moderation team, “commensurate with the scale of the service.” The draft also proposes for the first time that the person who uploads a post is also responsible for the comments made by others.
China’s New Live-Streaming Guidelines Set to Change the Influencer Business Known for its ‘Low Threshold, High Income’: China issued new regulations on the live-streaming industry, including 31 banned behaviours and requirements for influencers to have relevant qualifications to discuss certain topics, such as law, finance, medicine and education. There were at least 1.23 million “professional” live-streaming hosts and aides working in the industry in 2020, compared with fewer than 250,000 in 2019.
JPMorgan China Fund Ramps Up Bets on Tech as Bullish Calls Grow: JPMorgan Asset Management is doubling down on China tech stocks after enduring a tumultuous selloff, betting that an easing of regulatory crackdowns and attractive valuations will pay off well. “The worst is over,” according to the company. President Xi Jinping, in a keynote speech to a virtual BRICS Business Forum last week, pledged to meet economic targets for the year.
Ant, Alibaba Plan for Less Intertwined Future After China Crackdown: Alibaba and Ant have begun to unwind some of their collaborative arrangements in moves that would have been inconceivable two years ago. The affiliates have started to restrict access to each other’s services, compete for clients and even strike alliances with rivals.
When Online Shoppers Feel Cheated, It’s Time to Go to Crab Court: Some Chinese ecommerce companies have found a way to outsource an unpleasant but critical task: the settling of minor disputes, usually involving fraud, damage or refund claims between sellers and buyers. Platforms such as Meituan and Alibaba’s Idle Fish are crowdsourcing juries. Meituan has 4 million jurors, with nearly two-thirds aged 20-30, playing on Chinese youths’ “strong sense of justice.”
Food & Beverage
Chinese NoLo Market Estimated to Boom to ¥74.3 Billion ($11.1 billion) in 2025: In 2021 NoLo (No and Low alcoholic beverages) market had reached ¥26 billion ($3.9 billion). Overall ecommerce sales of the products in 2021 increased by 42% from 2020. Soda-combos and pre-mixed cocktails are the most popular. Of those consumers who purchase NoLo products, 42% do so for social purposes, and 37% do so for solo drinking.
Beauty
China Focus: Latest Developments in China’s Booming Beauty Market: Yatsen is putting more focus on Douyin and offline retail to ‘ease sales decline’ of Perfect Diary. Kosé is pushing ahead with expansion of its ‘high-prestige’ brand Decorté, launching 15 more counters in department stores and two more in the duty-free mecca of Hainan Island. Coty is counting on Gen-Zs to drive fragrance growth in China. Sephora China has announced three new initiatives to celebrate Chinese beauty.
Sport
All Aboard: China Jumps on Skateboarding Trend This 6.18: Sales of skateboard-related items jumped 290% on Tmall during this year’s 618 festival. “Parents used to shoo their kids away from skaters when seeing them on the street; now they send them to classes to learn skateboarding skills,” says Bejing-based skateboarder Elon Shi.
Douyin to Broadcast 2022 World Cup: Douyin (China’s Tiktok) was chosen by CCTV parent company China Media Group who have the exclusive FIFA World Cup broadcast rights for China. In addition to livestreaming the football tournament, the platform is also likely to create interactive content for audiences.
Environment
The Rise of China’s Biodegradable Plastics Industry: Like the rest of the world, China is plagued by plastic, but it is also active in the new industry of degradable plastic products.
Chinese Tourists
China’s Strict Covid-19 Border Controls Show More Signs of Easing, as Zhejiang Province Cuts Entry Quarantine: Overseas arrivals to Zhejiang need spend only seven days in a central isolation facility, instead of 14, followed by another seven in home isolation. Beijing and Wuhan are among other cities already following relaxed rules, as China seeks to repair damage to travel and aviation sectors.
