China Business NOW

Hi everyone. I’m Stephanie LI.

Coming up on today’s program

Chinese premier says China and Malaysia jointly usher in new "Golden 50 Years" for bilateral ties;

China's industrial profits went up 1.4 percent in Jan-April.

Here’s what you need to know about China in the past 24 hours 

Chinese Premier Li Qiang said Monday that China is ready to work with Malaysia to deepen exchanges and collaboration across various fields, and jointly usher in a new "Golden 50 Years" for bilateral ties guided by the principles of mutual respect and trust, equality and mutual benefit for win-win outcomes. 

Li made the remarks when meeting with Malaysian Prime Minister Anwar Ibrahim.

Li said that both sides agreed to build a high-level strategic China-Malaysia community with a shared future and mapped out the strategic direction for the development of bilateral relations.

He urged the two sides to continue expanding trade and investment cooperation with a focus on cutting-edge areas, including the digital economy, the green economy and artificial intelligence, promote the integrated development of industrial and supply chains and value chains, and steadily advance major projects such as the "Two Countries, Twin Parks" and the East Coast Rail Link, so as to strengthen the economic growth engine of the China-Malaysia community with a shared future.

Li is among guests attending a two-day summit of Southeast Asian nations, China's biggest regional export market. The meeting of the 10-member ASEAN trading bloc, hosted by Malaysia, is likely to be dominated by concerns about US tariffs and calls for greater regional integration to withstand rising global trade protectionism. Gulf states, including Saudi Arabia and the United Arab Emirates, were also attending.

In the face of rising unilateralism and protectionism and a sluggish global economic recovery, China, the ASEAN and the Gulf Cooperation Council (GCC) countries, all participants in and beneficiaries of economic globalization, should enhance coordination and jointly uphold open regionalism and true multilateralism, Li said.

Noting that Malaysia is both the rotating chair of ASEAN and the host of the trilateral summit, Li said that China is ready to work closely with Malaysia to take the event as an opportunity to push for closer economic cooperation among the three sides, build a model of global cooperation and development, jointly safeguard free trade and the multilateral trading system and address global challenges together.

For his part, Anwar noted that China is a good neighbor and partner of Malaysia. Malaysia firmly supports multilateralism and China's accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, he said, adding that his country is ready to work with China to ensure fruitful outcomes of the inaugural ASEAN-GCC-China Summit.

Speaking at the opening ceremony of the ASEAN Summit on Monday, Anwar urged ASEAN members to work together to face the challenges brought about by a changing world order to ensure the agenda of sustainable and equitable development is not sidelined.

Profits of China's industrial enterprises above the designated size rose 1.4 percent to 2.12 trillion yuan in the first four months from a year earlier, the NBS said today. Their revenue climbed 3.2 percent to 43.44 trillion yuan.

GBA express

The 21st China (Shenzhen) International Cultural Industries Fair concluded on Monday with total visits exceeding 2.2 million in five days -- a strong testament to its role as a major platform for global cultural exchange and cooperation. Featuring an artificial intelligence exhibition area for the first time, the fair drew 60 leading and emerging AI companies.  

Guangdong on Monday launched eight measures to promote inbound shopping. These measures include increasing the number of tax refund shops, promoting departure tax refund policies, accelerating the construction of duty-free shops within cities, encouraging cruise and yacht economy consumption, supporting targeted renovations of commercial streets, promoting trendy domestic products, optimizing entry permit processing, and improving payment convenience for inbound consumers.

China introduced new rules to encourage Hong Kong and Macao service providers to set up movie production companies on the Chinese mainland to deepen industry cooperation and boost filmmaking, according to the China Film Administration.

Industry and company news

“We are ready and prepared to do whatever it takes to win the fight and solidify our market leadership,” Meituan’s CEO Wang Xing said during the Chinese takeaway giant’s earnings conference call yesterday to respond to a question about JD.com introducing 10 billion yuan in food delivery subsidies that intensified competition. Shares in Meituan fell 5.5 percent in Hong Kong after Chinese regulators issued draft guidelines related to the fees paid to online merchants. Shares in rival JD.com slid 1.2 percent.

AI chip developer Hygon Information Technology and computer-server manufacturer Dawning Information Industry announced a merger valued at over 400 billion yuan on Monday. The move is expected to address surging domestic demand for artificial intelligence capabilities and bolster China's drive for technological independence to reduce reliance on US technologies.

Swedish truck maker Scania will begin operations at its new USD2.3 billion Chinese factory in the Jiangsu Province city of Rugao in October, media reported, citing Chief Executive Christian Levin. The new Chinese factory will eventually reach a production capacity of 50,000 vehicles for the mainland and Asian markets.

China's Ministry of Commerce and seven other agencies released a new plan on Monday to accelerate the development of "smart" supply chains across sectors such as agriculture, manufacturing, wholesale and retail. The plan aims to cut nationwide logistics costs and boost industrial resilience by promoting AI-powered smart factories, warehousing and retail systems. Authorities are aiming for 100 major smart supply chains by 2030.

China had 232 economic and technological development zones across 31 province-level regions at the end of last year, housing some 85,000 high-tech enterprises, according to the Ministry of Commerce. They achieved 10.7 trillion yuan in foreign trade last year, accounting for 25 percent of the country’s total.

Pony.ai entered an MoU with Dubai's Roads and Transport Authority to deploy its advanced robotaxi fleet in the region, the Chinese self-driving technology startup announced today. The initial supervised trials will begin this year and will be followed by fully driverless operations next year.

Asia-Pacific highlights

Chinese Premier Li Qiang said on Tuesday that China is ready to work with Cambodia to promote trade and investment liberalization and facilitation, so as to further expand economic and trade cooperation. In his meeting with Cambodian Prime Minister Hun Manet, Li said that China is willing to strengthen cooperation with Cambodia in such areas as infrastructure, digital economy, advanced manufacturing and clean energy.

The People's Bank of China (PBOC) and Bank Indonesia on Sunday signed an MoU on establishing a cooperation framework to promote bilateral transaction settlement in local currencies. The new agreement expands upon a previous MoU, which was limited to current account transactions and direct investment. According to the PBOC, the scope of bilateral local currency settlement cooperation will be expanded to include transactions made through capital and financial accounts.

Hello! Welcome to this edition of CBN Perspective. I’m Stephanie Li.

As the 21st China International Cultural Industries Fair (ICIF) opened in Shenzhen on Thursday, Guangdong—China’s top cultural export province—stepped into the spotlight, unveiling an 87-measure policy blueprint to turbocharge six core areas including film and TV, live performances, animation, online games, esports, and digital streaming.

At the heart of this cultural surge: the red-hot “guzi economy”, a phenomenon driven by Gen Z and Gen Alpha’s passion for anime merchandise and the rise of “guochao anime”, which blends Chinese cultural narratives with modern creativity following the sensational debut of Black Myth: Wukong and the history-making box office of the Ne Zha franchise. 

Derived from the phonetic English word “goods”,“guzi” refers to ACG (animation, comics, games) collectibles—badges, figurines, posters—that have evolved into a symbolic language for young consumers. 

It’s also a play on “gu,” the Chinese word for grain, comparing the joy of collecting small merch to harvesting tiny, satisfying rewards.

Within that world, fans navigate limited editions, blind boxes, resale markups, and algorithm-driven livestreams, blurring the line between passion and product. 

For fans, “guzi” is more than materialistic; it’s an experience resonating on a deeper, emotional level, and the so-called “guzi” economy allows them to express their passion for specific cultures and characters through purchases.

And in this year’s edition of ICIF, the organizers for the first time introduced Shenzhen’s Bit City, dubbed the city’s “guzi haven”, as a new venue, hosting anime carnivals, ancient-style IP pop-ups, and ACG concerts—signaling the subculture’s ascension to mainstream commerce. 

The move mirrors a broader shift: China’s ACG audience swelled to 503 million in 2024 — a number projected to reach 570 million by 2029, according to research firm iiMedia.

Last year alone, China’s “guzi economy" was worth 168.9 billion yuan ($23.5 billion). By 2029, it’s projected to nearly double (US$42 billion), a scale reshaping how China consumes.

ACG consumers are highly loyal to their favorite characters and are willing to pay a premium for products that hold cultural and emotional significance. These small trinkets, often bought in bulk, provide emotional value and a way to purchase “happiness.”

On social media, the fandom moves fast. In recent months, photos and videos of young collectors showing off gu hauls or filming unboxings have flooded feeds. On Xiaohongshu, known globally as RedNote, a related hashtag has drawn more than 4.7 billion views, while on Douyin, China’s version of TikTok, “eating gu” has racked up 6.6 billion.

The sense of belonging is the beating heart of this economy. According to a McKinsey survey, 64% of Chinese consumers place greater importance on emotional consumption than purely functional consumption. This connection is also reflected in the preference for offline purchases, with physical stores becoming true shrines for enthusiasts.

Similar to the popularity of an IP like Jellycat, characters from Labubu, Chiikawa, and Molly, to the latest cinematic sensation Ne Zha and Ao Bing, are making their presence known through dedicated “guzi” shops, subtly reshaping China’s retail landscape.

Shopping malls are retooling around character merchandise and immersive fan experiences to build loyalty and draw foot traffic. Pop-ups, specialty stores, and anime-themed events now fill spaces once dominated by fast fashion and food courts.

In Jinan, eight specialty stores have quietly sprung up in major shopping areas, with outlets reporting daily sales exceeding 10,000 yuan.

Just before New Year, Bailian Group, the largest retailer in Shanghai, launched its second Bailian ZX mall, a brand wholly dedicated to otaku, a Japanese word that describes people with consuming interests in the pop cultures of anime, manga, video games and computers.

Data from corporate data provider Tianyancha show that over 10,000 new businesses related to the “guzi economy" were established between January and November 2024, up 14 percent year-on-year, bringing the existing total number to over 64,000.

It’s no surprise that the first to recognize the potential of this phenomenon were the giants of the food and beverage industry. Chains like Heytea, Good Me and Luckin, China’s tea and coffee chains, have launched special collections dedicated to “guzi,” while Starbucks even introduced a Christmas line inspired by anime.

The economic impact of the “guzi” phenomenon is also visible in financial markets: the stock value of MINISO, specializing in pop-culture merchandising, has risen so far by over 300% since its Hong Kong IPO in 2022, while retailer Pop Mart eclipsed HKD300 billion in market cap, putting it in elite company on the Hong Kong stock market on Thursday. In the first quarter of 2024, Pop Mart has recorded a 165% to 170% year-on-year growth in revenue.

As the birthplace of one-third of China’s animation output that exceeded 60 billion yuan in 2024, Guangdong is leveraging its manufacturing might and proximity to Hong Kong and Macao with a 15-point policy plan. The initiative released yesterday targets tech integration with AI and virtual production, talent cultivation, and cross-industry collaboration, aiming to transform the Greater Bay Area into a global hub for anime IP creation—think Journey to the West reimagined through humanoid robots or digital collectibles.

As “guochao” anime conquers domestic screens and “guzi” stores pop up in Southeast Asia and beyond, Guangdong isn’t just riding a trend—it’s rewriting the playbook for how nations monetize their cultural heritage in the digital age.

In an era where global cultural exports are dominated by Hollywood and Japanese anime, Guangdong’s rise as a “guzi economy” trailblazer signals a seismic shift. This isn’t merely about selling merchandise; it’s about weaponizing nostalgia, technology, and youth culture to craft a new form of “Made in China” storytelling—one that travels beyond borders, turns myths into markets, and proves that the most powerful economic engines are fueled by the heart.

As the world shops for a piece of China’s animated soul, Guangdong’s vision might just set the standard for how cultures monetize their magic in the 21st century.

Hi everyone. I’m Stephanie LI.

Coming up on today’s program

The 21st ICIF kicks off in Shenzhen, showcasing a fusion of Chinese culture and technology;

Hong Kong’s IPO market nearly quadruples in a year as global investors reprice Chinese assets.

Here’s what you need to know about China in the past 24 hours 

More than six-thousand exhibitors attend the 21st China International Cultural Industries Fair(ICIF) in South China's Shenzhen beginning Thursday. 

With a record-breaking scale, the five-day fair brings together 6,280 government delegations, cultural institutions, and enterprises for online and offline exhibitions, showcasing over 120,000 cultural products. Additionally, more than 4,000 cultural industry investment and financing projects will be displayed and traded onsite, reflecting the vibrancy of China’s cultural economy.

Recognized as one of China's most influential cultural expos, the 2025 edition features 305 overseas exhibitors from more than 65 countries and regions, with the number of participating nations along the Belt and Road Initiative hitting an all-time high. It is expected to attract 35,000 overseas professional visitors from 110 countries and regions, underscoring its growing influence as a global cultural exchange hub.

A core theme of this year’s fair is the deep integration of technology and culture. For the first time, an Artificial Intelligence (AI) Exhibition Zone has been established, featuring over 60 leading enterprises in the AI field. 

Chinese AI search innovator DeepSeek and trendy toy giant Pop Mart—both making global headlines this year—are participating with cutting-edge equipment and stylish blind boxes.

Leveraging technologies like AI, the metaverse, virtual reality, digital exhibition halls, and cloud computing, visitors can virtually journey through the prosperous Tang Dynasty with poet Li Bai or engage closely with Dunhuang’s ancient civilization without leaving their homes.

Popular exhibits range from Dunhuang’s Silk Road-inspired intangible cultural heritage crafts and cultural and creative products to smart cockpits, humanoid robots, and AI glasses from the Greater Bay Area, which blend practicality with aesthetic value.

Notably, humanoid robots at the fair have engaged in “soul-touching” interactions with visitors, embodying a breakthrough in “technology + culture” as new productive forces.

This year’s fair not only showcases China’s cultural soft power but also highlights its commitment to fostering global cultural trade and technological collaboration, with the first-ever "Chinese Culture Going Global" section this year that allows Chinese enterprises to showcase their cultural exports.

GBA express

Guangdong unveils a major policy package to strengthen the competitiveness and appeal of its cultural industry globally, following the opening of the 21st ICIF today. Aiming to enhance innovation, market expansion, and industrial upgrading of the cultural sector, the targeted initiatives provide customized support for six core areas: film and TV, live performances, animation, online games, esports, and digital streaming.

IPOs on the Hong Kong stock exchange surged almost four-fold in value in the past year, as international investors re-evaluate the value of Chinese companies amid a softening US dollar and shifting global supply chains. Some 76 companies went public in Hong Kong in the 12 months ended May 21, raising a combined HKD145 billion, according to data from Wind Information.

Macao welcomed over 3.09 million visitors last month, up 18.9 percent from a year earlier, the SAR's Statistics and Census Service announced yesterday. The Chinese mainland remained the largest visitor source, with more than 2.12 million, up 22.4 percent. Same-day visitors jumped by 30.1 percent to over 1.75 million, while overnight visitors rose 6.9 percent to nearly 1.34 million.

Cathay Pacific carried 36.3 percent more passengers and 13.6 percent more cargo in April this year compared with the month last year. During the month, its capacity – measured in available seat kilometers – also rose 27.1 percent, the Hong Kong flag carrier’s traffic figures for April show. In the first four months of this year, the number of passengers carried increased by 26.6 percent compared with the same period for 2024, Cathay added.

Industry and company news

Xpeng opened 9.7 percent up today after the Chinese NEV startup reported better-than-expected first-quarter earnings and predicted to turn profitable in the fourth quarter. Net loss narrowed 52 percent to 660 million yuan, while revenue soared 142 percent to 15.8 billion yuan. Xpeng delivered 94,008 vehicles in the first quarter, up 331 percent from the same period last year, to achieve a new quarterly record. It plans to roll out humanoid robots for industrial and commercial use next year, chairman and CEO He Xiaopeng said during the earnings call.

Baidu’s non-GAAP net income fell 8 percent to 6.5 billion yuan in the first quarter from a year earlier, the Chinese tech giant’s latest earnings report showed yesterday. Revenue rose 3 percent to 32.5 billion yuan, with profits from its core businesses rising to 7.63 billion yuan, marking a 48 percent year-on-year increase.

QatarEnergy is deeply cooperating with China on LNG carriers, as China has a huge demand for natural gas, being the world's largest LNG importer, Saad Al-Kaabi, Qatar’s minister of energy and CEO of QatarEnergy, said at the WGC2025. Qatar's North Field east expansion project, which involves Chinese oil and gas giants, will come on stream in mid-2026, he added.

JPMorgan Chase's CEO Jamie Dimon is visiting China to deliver a keynote speech at the two-day J.P. Morgan Global China Summit in Shanghai today. Themed Capital Connections, the event features business leaders, such as Saudi Aramco's CEO Amin Nasser and Qualcomm's CEO Cristiano Amon.

Asia-Pacific highlights

Alibaba Group's e-commerce platform Taobao announced on Thursday that its free global delivery service will expand to 12 countries and regions across the globe, as the company is stepping up its globalization layout. According to Taobao, Singapore, Malaysia, South Korea, Australia, Japan, Thailand, Cambodia, Kazakhstan and Mongolia will be included in the initiative.

China is the biggest source of foreign investments in Southeast Asia's clean energy sector, helping the region to reach its decarbonization goals, a regional webinar heard on Tuesday. Sharon Seah Li-Lian, a senior fellow of the ISEAS-Yusof Ishak Institute in Singapore and coordinator of the ASEAN Studies Centre and Climate Change in Southeast Asia Program, noted that with the US retreating from the Paris climate treaty, China is "providing greater leadership" in global climate issues. Seah also noted ASEAN's underrepresentation in international climate initiatives and called for increased regional participation and cooperation. The latest report by global think tank Zero Carbon Analytics revealed that China has invested over USD2.7 billion in clean energy in ASEAN between 2013 and 2023. China also led in clean energy trade with ASEAN, with trade valued at USD4.3 billion.

Hi everyone. I’m Stephanie LI.

Coming up on today’s program

China’s central bank reduces LPR and major lenders cut deposit rates;

CATL jumped 16 percent in its Hong Kong debut as the year’s biggest IPO sizzles. 

Here’s what you need to know about China in the past 24 hours 

China's one-year loan prime rate (LPR), a market-based benchmark lending rate, was lowered to 3.0 percent on Tuesday, down by 10 basis points, in the central bank's first cut of the rate this year.

The over-five-year LPR, on which many lenders base their housing mortgage rates, dropped to 3.5 percent from the previous reading of 3.6 percent, according to the National Interbank Funding Center.

The cut will further drive down financial costs for companies and Chinese residents, helping bolster market confidence and support the steady growth of the real economy, according to Xinhua News Agency.

These rate cuts come shortly after Beijing unveiled a series of sweeping monetary easing measures aimed at boosting liquidity and supporting growth. 

On May 7, the country’s central bank announced a series of rate cuts, including a reduction in the seven-day reverse repo rate and the interest rates for the standing lending facility, to better implement the moderately loose monetary policy and enhance support for the real economy.

"The cut in LPR, the first round this year, has shown that the comprehensive financial support policies have led to further easing of monetary and credit policies, which in turn has reduced the borrowing costs of medium- and long-term funds," said Yan Yuejin, research director at Shanghai-based E-house China R&D Institute.

"The policy to further reduce interest rate will help lower mortgage loans costs, which also should stimulate the housing consumption demand," Yan said.

In the meantime, China's major state-owned commercial banks and some joint-stock banks announced reductions in deposit interest rates on Tuesday morning.

The one-year fixed-term deposit interest rate was cut by 15 basis points to 0.95 percent, according to the official deposit interest rates released by Industrial and Commercial Bank of China, Bank of China, China Construction Bank, Agricultural Bank of China, and Bank of Communications.

China Merchants Bank, a joint-stock bank based in Shenzhen, also cut its deposit interest rate, with one-year fixed-term deposit interest rate being reduced to 0.95 percent.

The National Development and Reform Commission (NDRC), China's economic planner, said on Tuesday that China is accelerating the formulation of measures to stabilize employment and the economy, promote high-quality development, and address issues related to excessive competition, which are expected to be implemented by the end of June. Meanwhile, NDRC will introduce a series of measures to attract and utilize foreign capital more effectively, and it will continue to create favorable conditions for multinational companies to invest and grow in China. Moreover, the NDRC will publicize the Private Economy Promotion Law, which took effect today, facilitate the implementation of its supporting policy measures, and address private enterprises' concerns.

GBA express

China’s leading battery maker CATL made another IPO at the Hong Kong Stock Exchange on Tuesday, with its shares opening 12.5 percent higher at HK$296 and closed up 16.4 percent at HK$306.2. At the debut ceremony on Tuesday, Chairman Zeng Yuqun noted the listing also marks “a new starting point” in promoting the global zero-carbon economy. CATL’s prospectus reveals that approximately 90 percent of its IPO proceeds will go to fund the first and second phases of its Hungary battery plant. Hong Kong Financial Secretary Paul Chan Mo-po said that CATL’s listing has become a focal point in global markets, reflecting strong confidence from both corporates and investors in Hong Kong’s stock market. The offering attracted investments from sovereign wealth funds, industrial capital, long-term institutional investors, insurance funds, and multi-strategy funds from 15 countries and regions. 

Hong Kong authorities have identified nine projects involving big local industrial brands, the four most beautiful peaks and old town travels in the first phase of developing tourism hotspots to attract more tourists seeking in-depth tours in the city. At least four industrial brands, including food seasoning company Lee Kam-kee, bakery giant Kee Wah, vinegar maker Pat Chun and probiotic drink company Yakult, confirmed that they would organize tours with travel agencies starting from the third quarter of this year. Measures to boost in-depth tourism will also cover two popular old neighborhoods in Kowloon City and Central, featuring the local characteristics and history.

Industry and company news

Xiaomi has started mass producing its self-developed flagship chip with a 3-nanometer processor, the Xring O1, after four years of development and a total R&D investment of 13.5 billion yuan, CEO Lei Jun said on Weibo yesterday. Two flagship devices featuring the chip, the Xiaomi 15S Pro smartphone and Xiaomi Pad 7 Ultra OLED tablet, will be launched at 7 p.m. on Thursday.

Nvidia is leasing a new office space for its employees in Shanghai as part of its efforts to deepen its presence in China while complying with US export control measures, the US chip giant told media today.

Tencent’s QQ developed a version for Huawei's computers running on its self-developed HarmonyOS that launched yesterday, media reported. WeChat and WeCom, two other instant messaging platforms under Tencent, are accelerating the development of their own versions for HarmonyOS.

Trip.Com's net profit stayed flat at 4.3 billion yuan in the first quarter from a year earlier, while its net revenue rose 16 percent to 13.8 billion yuan, the Chinese online travel agency said today. Inbound tourism bookings on Trip.Com more than doubled in the first quarter from a year earlier, while outbound hotel and flight reservations exceeded the levels in the same period of 2019 by about 20 percent.

Leapmotor's stock opened 2.6 percent up after the Chinese EV maker said its net loss narrowed 89 percent to 130 million yuan in the first quarter from a year ago, while its revenue soared 187 percent to 10 billion yuan. Its sales surged 162 percent to 87,552 units.

Kweichow Moutai yesterday announced it repurchased 4 billion yuan in shares and approved a new share buyback scheme of up to 6 billion yuan. The Chinese liquor giant will distribute 34.7 billion yuan worth of cash dividends.

Chinese commercial space firm Galactic Energy successfully conducted a sea-based launch of its CERES-1 carrier rocket at 3:38 pm (local time) on Monday, completing the first phase of the Tianqi constellation, the country's low-Earth orbit Internet of Things (IoT) satellite constellation.

Asia-Pacific highlights

Thailand and Indonesia announced the elevation of bilateral relations to a strategic partnership following the first official visit to Thailand of President of Indonesia Prabowo Subianto on Monday. Southeast Asia’s two biggest economies pledged strong support for more two-way investment, and expanded cooperation in food security, fisheries, halal products, energy security and green economy, education and healthcare. Moreover, both sides are committed to increasing bilateral trade and they also agreed to enhance tourism cooperation, especially cruise and yacht tourism and wellness.

Chinese pea protein maker Shuangta Food today announced plans to expand its production capacity by 10,000 tons once its new Thailand plant is completed and put into operation in the second half of the year.

American pop singer Katy Perry today announced the Asia leg of her fifth world tour The Lifetimes Tour in three cities, Hangzhou and Shanghai in China and Tokyo in Japan.

Hi everyone. I’m Stephanie LI.

Coming up on today’s program

Chinese economy displays strong resilience in April, marked by 6.1% rise in industrial output and 5.1% growth in retail sales;

HKEX is set to become the world's top destination for IPOs after CATL’s listing tomorrow.

Here’s what you need to know about China in the past 24 hours 

China's economy continued to grow steadily in April with supportive macroeconomic policies despite external shocks, official data showed on Monday.

Figures released by the National Bureau of Statistics showed that China's value-added industrial output- a gauge of activity in the manufacturing, mining and utilities sectors - rose by 6.1 percent year-on-year in April after a 7.7 percent growth in March.

Retail sales, a key measurement of consumer spending, grew by 5.1 percent year-on-year in April versus the 5.9 percent increase in March.

Fixed-asset investment - a gauge of expenditures on items including infrastructure, property, machinery and equipment – rose by 4 percent during the January-April period compared to a year ago, while in the first quarter, it grew by 4.2 percent.

The surveyed urban unemployment rate came in at 5.1 percent in April, down from 5.2 percent in March, according to the NBS.

Boosted by the government's latest package of pro-growth stimulus policies, major economic indicators have witnessed a pattern of strong resilience, NBS spokesperson Fu Linghui said at a press conference on Monday.

“The fundamentals of China’s long-term sound economic growth will not change, with concerted efforts on macro policies, the growing momentum of consumption and innovation,” Fu said.

However, the NBS warned of mounting external uncertainties, saying the foundation for sustained recovery is yet to be consolidated.

Responding to a question whether Fu expects a surge in exports to the US following the recent Geneva agreement on significant tariff cuts, and on the trade outlook for the rest of the year, Fu said that in April, the external environment changed drastically, and the pressure on foreign trade increased. However, China’s foreign trade overcame difficulties and maintained steady growth.

According to the NBS, in April, China’s total import and export of goods rose by 5.6 percent, of which, exports grew 9.3 percent, maintaining a faster growth.

Fu noted that amid growing external shocks, China’s foreign trade has withstood the pressure and maintained growth, reflecting the solid support capacity of the industrial base, as the country’s complete industrial system with upgrading of the manufacturing industry occupies an important position in the global industrial chain, and has a strong advantage in international competition. 

Home prices in 70 major Chinese cities remained flat or fell in April from March, the NBS said today. The prices continued to fall on a yearly basis, but the pace of decline further eased. The NBS data also revealed a narrowing in the year-on-year decline in the volume of new home sales during the January-April period, compared with the first quarter of the year.

GBA express

Hong Kong's bourse is expected to become the world's largest destination for IPOs after a big new energy firm from the Chinese mainland debuts tomorrow, bringing its total fundraisers this year to over HKD60 billion, Financial Secretary Paul Chan said yesterday. 

The Guangdong-Hong Kong-Macao Greater Bay Area and Hungary (Europe) Economic and Trade Cooperation Conference was held Friday in Budapest, marking a new milestone in China-Hungary economic relations. The high-level conference saw the signing of 36 investment projects worth over USD3.8 billion, involving leading enterprises from China's Greater Bay Area and Hungarian partners. One of the key projects is Guangdong-based electric vehicle giant BYD setting up its new European headquarters in Budapest.

Tencent's R&D investment surged by 21 percent year on year to 18.9 billion yuan in the first quarter of 2025, as the company upgraded its comprehensive AI ecosystem, the tech giant revealed at the Tencent Global Digital Ecosystem Summit held in Guangzhou. Tencent has also established data centers in Guangzhou, Qingyuan, Shaoguan and other locations across the GBA. It will further expand its overseas investments by investing USD150 million in the Middle East to establish its first data center in Saudi Arabia, and another USD500 million in Indonesia to build its third data center in the country.

Industry and company news

Nvidia's next chip for China after the export-restricted H20 will not be based on Hopper architecture as "it's not possible to modify Hopper anymore," CEO Jensen Huang said regarding a recent rumor that the US chipmaker may rework existing Hopper series to fit the Chinese market. Meanwhile, Huang told media that Nvidia has begun producing the DGX Spark, the world's smallest AI supercomputer, which may launch in the coming weeks.

QQ Browser announced today it was upgraded to an AI-powered browser with the launch of QBot, featuring AI models Tencent Hunyuan and DeepSeek. The browser under Tencent now supports intelligent agents capable of handling complex tasks.

GAC Group has forayed into the Ethiopian market with the launch of two NEV models, the Aion Y Plus and GAC ES9, the firm said yesterday. The Chinese automaker plans to launch five NEV models in the East African country over the next three years, GAC International’s GM Wei Haigang said.

Xiaomi Auto will launch its first SUV model, the YU7, on May 22, CEO Leijun said on Weibo today. The launch event will also feature other products, including the flagship Xiaomi 15s Pro and the Xiaomi Pad 7 Ultra.

Shanghai Disneyland announced today that it has broken ground on its Spiderman-themed land. The theme park will launch a series of events and activities related to Disney Pixar films in June.

Asia-Pacific highlights

Chinese automaker Changan Automobile's first overseas electric vehicle production plant started operations in Thailand on Friday. Located in Rayong Province in eastern Thailand, the facility represents Changan's inaugural comprehensive overseas EV production base. With an initial investment of 10 billion baht (USD301.4 million) for the first phase, the plant is poised to serve as a manufacturing center for the ASEAN region and global right-hand drive markets.

Stephanie: Hey everyone, and welcome to this edition of CBN x ASEAN Watch. I’m Stephanie, your host, and today we’re diving into a phenomenon that’s taking Southeast Asia by storm: Chinese mini dramas.

These bite-sized shows, packed with drama, romance, and plenty of “shuangdian” (those satisfying plot twists), are becoming a big deal overseas. Joining me today to unpack this trend is Sharon, our ASEAN correspondent who’s recently been covering the rise of mini dramas in the Southeast Asian market and here to share her observations.

Sharon: This is such an exciting topic—who would’ve thought that short, sometimes even “cheesy” Chinese dramas would become a hit from Jakarta to Bangkok?

Stephanie: Let’s start with the basics. What exactly are these micro-short dramas, and why are they blowing up in Southeast Asia?

Sharon: Right! So, micro-short dramas are typically 1-10 minute episodes, often serialized, with tight plots—think “fast food TV” for the smartphone era.

In China, they exploded during the pandemic, riding the wave of short-form video apps like Douyin. Shows like The Fragrance of Plum Blossoms—about a woman overcoming family pressure to build her career—racked up 30 million views in Southeast Asia. Why? They’re addictive, easy to watch during commutes, and surprisingly relatable, even across cultures.

Stephanie: Relatable despite cultural differences? How does that work?

Sharon: Great question! Southeast Asia has a huge Chinese diaspora, so there’s a shared cultural base—family values, respect for elders, even romantic tropes. But it’s not just about familiarity. Shows with “nixi” (rising against odds) or “tianchong” (sweet romance) themes tap into universal emotions.

For instance, Jiuzhou Culture, one of the big players—their app ShortMax has 6 million daily active users in Southeast Asia, mostly hooked on stories about underdogs fighting back. Plus, the production cost is a third of what it would be in North America, so they can pump out content fast.

Stephanie: Speaking of players, who’s leading the charge? I’ve heard names like ReelShort and DramaBox.

Sharon: Yes, it’s a mix of tech giants, content studios, and even web novel companies. Chinese online literature giant COL Group started this trend with ReelShort, adapting their popular novels into mini dramas —think werewolf romances and CEO marriages.

In 2024, ReelShort made $142 million globally, but here’s the twist: while North America still spends more, Southeast Asia is growing faster, with 7.8 million downloads in just February 2025. Other big names include Dianzhong Tech  with DramaBox and ByteDance with Melolo, which launched in Indonesia and Philippines last year and already has 1.3 million downloads.

Stephanie: Wait, so it’s not just about exporting Chinese shows? Some companies are making local content now?

Sharon: Exactly! That’s the 2.0 phase. At first, it was all about translating Chinese hits—like Afternoon Rose with actress Li Ruotong, which even aired on Southeast Asian TV.

But now, companies like Zhitao Media are producing localized content. In Thailand, they’ll set a bossy CEO as a Chinese-Thai businessman; in Malaysia, they weave in Nyonya culture. Why? Because while 90% of current content is translated, local originals earn 75% more in-app purchases. Crazy Maple Studio’s VP once said, “A Thai audience relates better to a story set in their neighborhood, even if the production is simpler.”

Stephanie: But it can’t be all smooth sailing. What challenges are these companies facing?

Sharon: Oh, plenty. First, local competition. Southeast Asia has its own content creators—think Indonesia’s RCTI+ or Thailand’s GMMTV—who understand local humor and slang better. Then there’s the cost of localization. Even though it’s cheaper than the US, hiring local actors, writers, and dealing with permits adds up.

Plus, audience preferences vary: Indonesians love family dramas, while Thais go for spicy rom-coms. Oh, and let’s not forget platform wars. ByteDance’s Melolo is offering free episodes with ads, undercutting the traditional pay-per-episode model. During an interview with me, Jiuzhou Culture’s CEO Wang Jiacheng said, “It’s like a buffet versus a la carte—users love free, but can we keep the lights on?”

Stephanie: Speaking of culture, are these dramas just entertainment, or are they sneaking in some soft power?

Sharon: Great point! While it’s not intentional, they’re definitely a cultural window. For example, Indonesian viewer Faziah started learning Chinese because she loved the traditional Chinese clothing “hanfu” in The Fragrance of Plum Blossoms. Thai fan Bobo told me, “I didn’t know Chinese rural life was like this—now I want to visit Sichuan!”

Zhang Yi, an industry analyst from iMedia Consulting told me that these dramas spread values subtly—female empowerment, hard work—through stories, not lectures. It’s soft power in bingeable form.

Stephanie: What’s next for this trend? Could Southeast Asia become the new frontier for Chinese entertainment?

Sharon: Absolutely. Companies are already building local studios— Jiuzhou Culture’s “Chengfeng Plan” is setting up production hubs in Thailand and Malaysia. And it’s not just about making money; they’re betting on long-term brand loyalty.

But it won’t be easy—they need to balance Chinese elements with local flavor, like adding Malay proverbs to a romance plot or casting Indonesian influencers. As Yang Liu from RisingJoy, a content agency, puts it, “You can’t just copy-paste. Southeast Asia wants stories that feel like theirs, even if the producer is Chinese.”

Stephanie: Final question: For someone new to this, what’s a must-watch example?

Sharon: Start with The Fragrance of Plum Blossoms—it’s got all the ingredients: underdog story, cultural touches, and that addictive “just one more episode” vibe. Plus, it’s a perfect example of how a “Chinese” story can feel universal.

Stephanie: Love it! Thanks for breaking down this fascinating trend, Sharon. It’s clear that Chinese mini  dramas are more than just a fad—they’re reshaping how we consume stories across borders. For our listeners, stay tuned for more deep dives into global culture trends. Until next time!

Hi everyone. I’m Stephanie LI.

Coming up on today’s program

China's social financing surges in first 4 months, with this year’s first RRR cut expected to further lift market demand;

US container bookings for shipments from China surged threefold after the two countries mutually lowered tariffs.

Here’s what you need to know about China in the past 24 hours 

China’s central bank cut the reserve requirement ratio (RRR) by 0.5 percentage points for financial institutions on Thursday, marking its first RRR cut of the year. The move is expected to provide about 1 trillion yuan in long-term liquidity into the market. 

The RRR reduction came following the announcement of the People’s Bank of China on May 7 that it would roll out a package of monetary policies to enhance macro-economic regulation, including lowering the lending policy rate and RRR.

Central bank governor Pan Gongsheng said that the RRR cut would improve the structure of liquidity provided by the central bank to the country’s banking system, reduce banks' liability costs, and help cement the stability of their liabilities.

Meanwhile, China’s social financing continued to improve, surging by 3.61 trillion yuan year-on-year to 16.34 trillion yuan in the first four months of 2025, official data showed yesterday, as pro-growth policies are gaining traction in bolstering the real economy.

Notably, yuan loans issued to the real economy rose by 9.78 trillion yuan, an increase of 339.7 billion yuan compared with the same period last year.

In the first four months, yuan loans increased by 10.06 trillion yuan. By sector, household loans rose by 518.4 billion yuan. Loans to enterprises and institutions surged by 9.27 trillion yuan. 

The growth in social financing and credit indicates stronger financial support for the real economy, boosting economic expansion, experts noted. At the same time, improved investment and business conditions have spurred fresh financing demand, creating a positive cycle between policy stimulus and market-driven growth. Following China's cuts to interest rates and RRR, market analysts predict further positive effects on financial data in May.

After the US and China mutually lowered tariffs, container shipping bookings ordered in the US for shipments from China surged nearly 300 percent, CCTV reported, citing tracking agency Vizion. Average bookings were 5,709 standard containers in the seven days ended May 5, which soared to 21,530 in the seven days ended yesterday.

China and the EU yesterday concluded a two-day financial working group meeting in Brussels for intensive exchanges on global economy uncertainty, financial stability conditions, and regulatory frameworks for banking and insurance sectors, according to the Chinese central bank.

China will grant 30-day visa-free entry to visitors from Brazil, Argentina, Chili, Peru and Uruguay from June 1, 2025 to May 31, 2026, CCTV reported today, citing a spokesperson from the Ministry of Foreign Affairs.

GBA express

Hong Kong Chief Executive John Lee Ka-chiu has hailed his four-day visit to Qatar and Kuwait with a business delegation comprising representatives from Hong Kong and Chinese mainland enterprises, saying it yielded fruitful results. The Middle East visit resulted in a total of 59 memoranda of understanding and agreements – 35 in Qatar and 24 in Kuwait – spanning across diverse areas and laying a robust groundwork for multifaceted cooperation, he said.

Hong Kong and Hunan province signed several trade and business agreements on Wednesday during the 2025 Hunan and Hong Kong investment and financing matchmaking conference. The province brought more than 200 projects to the conference and about 60 percent are high-tech related. Officials from Hunan province said they recognize Hong Kong’s status as Hunan's largest source of foreign investment and the largest overseas trading partner, and expect Hong Kong to assist Hunan in connecting with global markets.

Funds raised through Hong Kong IPOs totaled USD303 billion between 2014 and last year, leading all stock exchanges globally, Securities Times reported, citing the HKEX Global Business Services. Information technology, consumption, and public utilities were the top three IPO fundraisers during 2018-2024.

Jiangsu Hengrui Pharmaceuticals has started taking investor orders for a Hong Kong listing that could raise as much as HKD9.9 billion. The Chinese mainland drugmaker is offering 225 million shares at HKD41.45 to HKD44.05 apiece, according to its listing document on Thursday.

Industry and company news

China on Wednesday launched 12 space-computing satellites, advancing its push into satellite-based networking. The satellites are the first phase of China's "Three-Body Computing Constellation," a space-based infrastructure designed to support integrated computing capabilities developed by Zhejiang Lab and global partners.

Chinese internet giant Tencent Holdings said its profit rose 22 percent to 61.3 billion yuan in the first quarter of the year, with strategic AI investments and implementation across key business segments starting to yield tangible returns. Revenue rose 13 percent to 180 billion yuan. Income from the value-added services and social network segments climbed 17 percent and 7 percent to 92.1 billion and 32.6 billion yuan, respectively. Domestic games revenue jumped 24 percent to 42.9 billion yuan, driven by Honour of Kings and other new releases. In addition, Tencent reiterated its commitment to repurchase at least HKD100 billion of its stock.

Geely Auto’s first-quarter net profit more than tripled to 5.6 billion yuan from a year earlier, the Chinese auto giant’s latest earnings report showed today. Revenue soared 25 percent to 72.5 billion yuan. Meanwhile, the automaker’s EV brand Zeekr announced today that the 10,000th Zeekr 007 GT had rolled off the production line and was delivered to its customer. The e-wagon was only released a month ago.

Chinese beverage giant Wahaha said it terminated its bottled water subcontracting deal with Jinmailang last month due to some batches of the instant noodle maker's manufactured purified water products failing to pass its quality inspection.

Asia-Pacific highlights

A new cross-border railway between China and Mongolia started construction on Wednesday at the Ganqimaodu port in North China's Inner Mongolia. To be operational by 2027, the railway will be the second cross-border railway between the two nations in nearly 70 years. The project is expected to increase Mongolia's coal exports to 165 million tons annually, generating an additional USD1.5 billion in revenue, local media reported.

Australian beef producers are poised to further tap the lucrative Chinese market, driven by strong growth in demand in China. In April, Australia's beef export volume hit a record high, exceeding 127,000 tons, with 21,572 tons imported by China, ranking as the second largest buyer. As of the end of April, China has bought 42,000 tons of Australian grain-fed beef this year, jumping 36 percent year-on-year.

China Petroleum Engineering Corporation, the construction engineering unit of oil and gas giant PetroChina, has secured its third major gas contract in the Middle East this year, worth USD1.6 billion.

Hi everyone. I’m Stephanie LI.

Coming up on today’s program

China-Brazil financial cooperation highlights vitality in China-LAC community with a shared future;

Hong Kong seeks to ink free-trade deals with Gulf nations.

Here’s what you need to know about China in the past 24 hours 

The central banks of China and Brazil on Tuesday inked a memorandum of understanding (MOU) on financial strategic cooperation, according to the People's Bank of China (PBOC).

The PBOC also renewed a bilateral currency swap agreement with the central bank of Brazil on the same day, with a total value of 190 billion yuan, or 157 billion reais. The agreement is valid for a period of five years and can be renewed upon mutual consent, it said.

The increasingly close economic and trade relationship between the two countries calls for strengthening financial collaboration. Since 2009, China has consistently been Brazil's largest trading partner. According to Chinese customs statistics, bilateral trade reached $188.17 billion in 2024, a year-on-year increase of 3.56 percent. 

China primarily exports machinery, chemicals, telecommunications equipment and textiles to Brazil, while importing iron ore, soybeans, crude oil and pulp.

The significant level of trade has highlighted the need for a more stable and efficient settlement mechanism, as the traditional dollar-based system exposes businesses on both sides to the volatility of the dollar exchange rate and incurs additional transaction costs.

Beyond trade facilitation, the China-Brazil currency swap mechanism also creates a more stable financial environment for mutual investment, and help the South American country tap into yuan liquidity to stabilize its foreign exchange market

This development not only underscores the deepening of financial ties between China and Brazil, but also serves as a positive example for other Latin American countries grappling with the volatility of the international financial market.

In 2024, China-LAC trade surpassed $500 billion for the first time, more than 40 times the amount at the beginning of this century. Over 20 LAC countries have joined the Belt and Road Initiative by signing different cooperation memoranda with China, and Colombia confirmed its participation in the BRI during the the China-CELAC (the Community of Latin American and Caribbean States) Forum in Beijing on Tuesday. 

From Chancay Port to the Phoenix Park Industrial Estate, numerous major projects have taken root and yielded fruitful results. In cutting-edge sectors, such as new energy, photovoltaics, electric vehicles, digital technology and cross-border e-commerce, China-LAC cooperation continues to expand, with mutual benefit and win-win cooperation providing strong momentum for the partnership.

Trade between China and Colombia hit a record of 48.34 billion yuan in the first four months of 2025, an 8.5 percent increase year-on-year, marking the highest trade volume ever recorded for the same period, according to data from China’s General Administration of Customs on Wednesday. Colombia has become China’s third-largest source of imported coffee and fresh-cut flowers. From January to April, China imported 470 million yuan of Colombian coffee, representing 14.2 percent of its total coffee imports. Fresh-cut flower imports from Colombia rose 14.6 percent year-on-year to 13.6 million yuan, representing 10 percent of China’s total in that category.

GBA express

Hong Kong Chief Executive John Lee Ka-chiu on Tuesday sought Kuwait’s support for free trade agreements between the SAR and Gulf Cooperation Council members during his visit to Kuwait, which chairs the GCC this year. Lee added that Hong Kong could support Kuwait’s Vision 2035, which aims to establish the country as a regional financial center, as the city is ready to offer valuable expertise in law, finance, and talent development.

Shenzhen has established a 5 billion yuan investment fund for the semiconductor and integrated circuit industry, with focus on building, reinforcing and expanding the industrial chain around Shenzhen's major integrated circuit manufacturing clusters. Shenzhen's semiconductor and integrated circuit industry investment fund completed its business registration on Tuesday, and it is managed by Shenzhen Capital Group. 

CATL’s retail book-building has received over HK$147 billion via margin financing, marking an oversubscription of 63 times, as local lenders race to attract orders with offers, media reports today. More than 20 cornerstone investors from around the world have committed a total of US$2.63 billion to the IPO. It is seeking to raise at least HK$31 billion from its IPO in Hong Kong. The Chinese battery giant's listing is scheduled for May 20.

Industry and company news

Yunnan province's coffee exports surged 122 percent to 310 million yuan in the first quarter from a year earlier, CCTV reported, citing official figures. The southwestern Chinese province exported 3.25 tons of coffee last year, up 358 percent from 2023.

China's Wandong Medical, the medical devices unit of Midea Healthcare, inked a deal with Brazil's VMI Group on May 12 to set up a JV in the South American country focusing on the research, development, and localized production of high-end medical equipment, including MRI, CT, and Cath lab, Midea said yesterday.

Baidu is reportedly in talks with Swiss Post-backed public transport service provider PostAuto to debut its Apollo Go robotaxi service in Switzerland. The Chinese tech firm may also launch its driverless ride-hailing service in Türkiye.

Global electric vehicle sales are expected to exceed 20 million this year, accounting for more than one-quarter of overall sales, according to the Global EV Outlook released by the IEA today. EVs are projected to reach around 60 percent of the total in China this year, it added.

Chinese e-commerce giant JD.com's first-quarter net profit surged 53 percent to 10.9 billion yuan, according to its latest earnings report. Quarterly revenue totaled 301.08 billion yuan for the quarter ending in March, up 15.8 percent from a year earlier. Revenue from new businesses, which includes food delivery this year, rose 18 percent to 5.8 billion yuan, compared with a year-on-year decline of 19 percent in the same period last year. JD.Com's food delivery business average daily orders will soon exceed 20 million, with the number of registered stores surpassing one million, JD's CEO Sandy Xu said yesterday. The instant delivery service brings new users to the Chinese e-commerce platform, as its active users surged over 20 percent in Q1, achieving a double-digit growth for the sixth consecutive quarter.

China's State Administration for Market Regulation (SAMR) and four other government departments recently summoned three major Chinese food delivery platforms—JD.com, Meituan, and Ele.me—to address core issues in the food delivery industry, the regulator announced Tuesday. The companies were asked to abide by laws and regulations, compete fairly and safeguard the legitimate rights and interests of consumers, business operators and food delivery workers. 

Asia-Pacific highlights

China today launched two direct international road freight routes to Hanoi, with trucks departing from Nanning and Kunming. This is the first time Chinese freight vehicles enter Vietnam under the Greater Mekong Subregion Cross-Border Transport Facilitation Agreement.

Cambodia has seen a significant uptick in the number of Chinese tourists to its famed Angkor Archeological Park in the first four months of 2025, with a total of 36,368 Chinese holidaymakers visited Angkor during the period, up 29 percent year on year.

China and Saudi Arabia have signed contracts at a forum on Tuesday in Beijing that exceeded $4 billion to increase their agricultural cooperation.

Hi everyone. I’m Stephanie LI.

Coming up on today’s program

China's commerce ministry holds meeting with trade companies, vows full support for firms to overcome difficulties;

The PBOC and four other authorities announced 30 measures to boost Nansha’s role in GBA finance opening-up.

Here’s what you need to know about China in the past 24 hours 

Despite mounting external pressures, China's foreign trade has remained generally stable this year, demonstrating strong resilience, said China's top commerce official.

During his meeting with 12 foreign trade companies and representatives from six business chambers, as well as trade experts in Beijing on Monday, Chinese Commerce Minister Wang Wentao said that in response to the United States' unwarranted imposition of high tariffs on Chinese products, China took firm countermeasures to defend its national interests and uphold international fairness and justice - actions that have earned broad international respect.

Recent high-level economic and trade talks between China and the US reached important consensus and made substantial progress, laying the foundation and creating conditions for further bridging differences and deepening cooperation, the commerce minister said.

The two countries announced a series of tariff adjustment measures aimed at easing trade tensions on Monday, after a two-day high-level meeting on economic and trade affairs in Switzerland, according to a joint statement issued by both governments in Geneva.

Looking ahead, the commerce ministry will coordinate domestic economic efforts with international economic and trade challenges, and work together with relevant departments to fully support foreign trade enterprises in overcoming difficulties. It will provide more support to help foreign trade enterprises expand markets and promote the stable development of foreign trade.

According to the General Administration of Customs, in the first four months of 2025, China's total value of goods trade reached 14.14 trillion yuan, an increase of 2.4 percent year-on-year against the backdrop of a complex and volatile global economic environment.

China on Tuesday announced to offer a visa-free policy to five countries in Latin America and the Caribbean, and will expand the policy to cover more regional countries in due course.

GBA express

China on Monday announced measures to bolster the opening-up of the financial sector of the Greater Bay Area through stepped-up support for Nansha, one of the three areas in the Guangdong Pilot Free Trade Zone. The 30 key measures, jointly announced by five Chinese departments, including the central bank, cover areas including improving financial services for innovation and entrepreneurship, strengthening financial support in social and livelihood sectors, developing specialized financial services, advancing interconnectivity in the GBA financial markets, conducting cross-border financial innovation and exchanges, and enhancing financial regulatory mechanisms. The package also includes steps to ease cross-border financing, settlements, futures trading, and equity investment, further boosting Nansha’s role as a springboard for Chinese firms going global.

Hong Kong passport holders will enjoy immediate visa-free entry to Qatar for stays of up to 30 days, removing previous visa requirements for the city’s residents, Chief Executive John Lee Ka-chiu announced on Monday, following a high-level business luncheon in Qatar, on the first leg of his six-day visit to the Middle East. Lee also revealed that Hong Kong and Qatar signed 35 memorandums of understanding and agreements covering a range of crucial fields, including trade, investment, technology, legal cooperation, and financial markets, which he described as laying “a solid foundation for long-term collaboration”.

Huawei and Ubtech Robotics inked a deal in Shenzhen yesterday to ally in embodied intelligence and humanoid robotics in industrial, home, and other scenarios. The pair also plan to jointly establish an embodied intelligence innovation center.

Shenzhen will hold two AI-related expos from May 22 to 24, the Global AI Device Expo 2025 and 6th Shenzhen Global AI Expo, showcasing nine types of AI end devices, including smartphones, personal computers, tablets, and wearable devices, marking the first such exhibition in the country. Covering 25,000 square meters, the expos are expected to attract more than 300 industry players from 15 countries and regions worldwide.

Industry and Company news

Meituan will launch its food delivery service Keeta in Brazil in the coming months and invest USD1 billion over the next five years to support the project’s development, according to a signing ceremony witnessed by Brazilian President Luiz Inácio Lula da Silva and Meituan’s founder and CEO Wang Xing yesterday. The Brazilian president is in China on a state visit to attend a China-Latin American meeting of regional leaders. He called the Beijing forum "another major step in our friendly and strategically close relationship with China, Brazil's largest trading partner since 2009." 

Chinese bubble tea chain Mixue yesterday signed an MoU with the Brazilian Trade and Investment Promotion Agency to deepen economic and trade cooperation, including the procurement of agricultural products, such as coffee beans, worth over 4 billion yuan over the next three to five years. Mixue will open its first store in Brazil and begin construction of supply chain plants later this year, expecting to provide 25,000 jobs in the country.

Alibaba and Baidu, along with the Magnificent Seven Stocks, were included in Wedbush's Defining AI's Future 30 list of the world's top tech firms from hyperscalers, cybersecurity, software, semiconductors, internet, and autonomous/robotics.

US sandwich chain Subway will expand its brick-and-mortar stores in China to about 1,000 from 800 by August, media reports. Subway plans to add 500-1,000 outlets in the Chinese market per year and reach 10,000 shops.

Chinese respondents showed much higher trust in and acceptance of artificial intelligence than the world at large in a survey of 48,000 people in 47 countries conducted by the University of Melbourne and consultancy firm KPMG. Globally, 58 percent of respondents said they use AI tools, with 93 percent of Chinese reporting workplace use.

Asia-Pacific highlights

Chery Holding Group, the owner of Chinese automaker Chery Automobile, announced that its Kaiyang Laboratory signed a deal with Singapore’s Nanyang Technological University to establish the first overseas collaborative innovation center under Chery Auto’s global open-source program.

Hi everyone. I’m Stephanie LI.

Coming up on today’s program

Asian stocks rose as China and the US made “substantial progress” on trade talks;

China and the US announce measures to ease tariff tensions.

Here’s what you need to know about China in the past 24 hours

Asian stock markets rose on Monday amid substantial progress in the high-stakes China-US trade talks in Geneva over the weekend.

China’s benchmark Shanghai Composite gained 0.8 percent and the Shenzhen Component was up 1.7 percent. Hong Kong’s Hang Seng Index climbed 3 percent, with the TECH index rallying 5.2 percent.

Shares in Australia, Japan and South Korea advanced at the open, with the Topix index gaining for a 12th day for its longest winning streak since October 2017.

China and the United States announced in a joint statement  Monday a series of tariff modification measures aimed at easing trade tensions between the world's two largest economies, Xinhua reported.

According to the statement, the US has committed to removing 91 percent of the additional tariffs imposed on Chinese goods under two executive orders issued in April. It will also adjust 34 percent of the reciprocal tariffs imposed under a separate executive order dated April 2, by suspending 24 percent for an initial period of 90 days, while maintaining the remaining 10 percent.

In response, China will eliminate 91 percent of its counter-tariffs on US goods. For the 34 percent of counter-tariffs corresponding to the US measures, China will suspend 24 percent for 90 days and retain the remaining 10 percent. Additionally, the country will suspend or remove its non-tariff countermeasures against the US accordingly.

In the joint statement, the two sides have committed to implement the actions by May 14 and emphasized the importance of building a sustainable, long-term and mutually beneficial economic partnership. They will establish a mechanism to continue discussions about economic and trade relations.

Chinese Vice Premier He Lifeng said in Geneva on Sunday that the China-US high-level meeting on economic and trade affairs were in-depth, candid and constructive, according to Xinhua.

The vice premier said substantive progress has been made and a series of major consensuses have been reached as China and the US have taken important step to resolve differences through equal dialogue and consultation, adding that both sides have also agreed to establish an economic and trade consultation mechanism.

China's US dollar-denominated exports to the US declined 21 percent in April from a year earlier, compared with a 9.1 percent rise in March, according to data from the General Administration of Customs. China's exports excluding the US expanded 13 percent, including a 21 percent increase in exports to the ASEAN.

GBA express

Hong Kong Chief Executive John Lee Ka-chiu began a busy round of meetings with Qatari officials in Doha on Sunday at the head of a delegation of more than 50 Hong Kong and Chinese mainland officials and entrepreneurs looking to explore business opportunities and attract investment. In a social media post late on Saturday, Lee said he looks forward to creating new opportunities for Hong Kong enterprises, attracting Middle Eastern investment to the SAR and promoting the alignment of local industries, such as finance, with Middle Eastern markets. The Hong Kong delegation is in Qatar on the first stop of a six-day visit that will also take in Kuwait. It is Lee’s second trip to the Middle East since taking office.

Invest Hong Kong (InvestHK), the government department responsible for foreign direct investment, will promote Hong Kong in Eastern Europe and the Middle East as the premier gateway for businesses to expand into the Chinese mainland and the Asia-Pacific region. Alpha Lau Hai-suen, director-general of Investment Promotion at InvestHK, will embark on a series of visits on Sunday to Türkiye, Hungary, and Egypt, some of the key economies along the Belt and Road to strengthen economic ties.

Industry and company news

China's passenger car sector recorded a surge in retail sales in April, growing by 14.5 percent year on year and reached about 1.76 million units, according to the China Passenger Car Association (CPCA) on Sunday. Since the beginning of 2025, total retail sales of passenger cars have reached about 6.87 million units, representing year-on-year growth of 7.9 percent. China's new-energy vehicle (NEV) exports also saw a notable jump in April. CPCA data showed that NEV passenger vehicle exports hit 189,000 units in April, up 44.2 percent year-on-year, accounting for 44.6 percent of total passenger vehicle exports - a 14-percentage-point increase from the same period last year.

China’s auto production and sales reached 10.17 million and 10.06 million in the first four months of the year, up 13 percent and 11 percent, respectively, from a year earlier, according to the China Association of Automobile Manufacturers. NEV sales soared 46 percent to 4.3 million in the period.

About 5,400 companies listed on China's Shanghai, Shenzhen and Beijing stock exchanges have reported first-quarter results, with more than 70 percent posting a profit. Chinese listed companies generated combined first-quarter profits of 1.49 trillion yuan, up 3.64 percent year-on-year, Xinhua reported over the weekend.

CATL surged as much as 3.43 percent on the Shenzhen Exchange today as the Chinese EV battery maker said in a prospectus filed with the Hong Kong Stock Exchange that it plans to raise over HKD31 billion in a share listing. The world′s largest electric vehicle battery producer is offering 117.9 million shares at a maximum price of HKD263 per share, with an option to increase the offering size.

Asia-Pacific highlights

Japan won’t accept any initial trade agreement with the US that excludes auto tariffs, according to Prime Minister Shigeru Ishiba. Ishiba on Monday made his stance clear when asked in parliament about the possibility that Washington might urge Tokyo to strike a provisional agreement that doesn’t address US tariffs on car imports. In the same parliamentary session, top trade negotiator Ryosei Akazawa said that Japan will continue to seek a reprieve from all the tariff measures imposed by the US.

Cambodia has reported a 50.6 percent rise in the number of Chinese tourists in the first quarter of 2025, said a Cambodian Ministry of Tourism's report released on Friday. A total of 286,156 Chinese visitors traveled to the Southeast Asian country during the January-March period of this year, accounting for 15.6 percent of the total international tourist arrivals to Cambodia, the report said.

Saleem Mandviwalla, Chairman of Pakistan's Senate Finance Committee, stated in an exclusive interview with 21st Century Business Herald that Pakistan is ready to collaborate with China to advance the high-quality Belt and Road Initiative and upgrade the China-Pakistan Economic Corridor (CPEC). The "upgraded" CPEC will focus on fundamental development, leveraging industrial cooperation and economic zone construction to maximize the effectiveness of past achievements and unlock Pakistan's economic potential. Witnessing the signing of a memorandum on molecular-assisted breeding between the two countries, Mandviwalla emphasized that this collaboration represents a systemic upgrade of Pakistan's agricultural system by helping the nation develop climate-resilient "future seeds," hugely boosting food production and farmers' incomes, as 43 percent of Pakistan's workforce is engaged in agriculture.