China Business NOW

• Asian stock markets rise on signs of progress in China-US trade talks

  Hi everyone. I’m Stephanie LI.Coming up on today’s programAsian 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 hoursAsian 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 expressHong 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 newsChina'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 highlightsJapan 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.

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  9:20
• China adopts first law dedicated to promoting private sector

  Hi everyone. I’m Stephanie LI.Coming up on today’s programChina adopts first law promoting private sector, underscoring “nation's commitment to safeguarding rights of private businesses”;China expects to handle 144 million railway passenger trips over May Day holiday.Here’s what you need to know about China in the past 24 hours China's national lawmakers on Wednesday voted to adopt the country's first fundamental law dedicated to promoting the private sector, underscoring support for a key part of the world's second-largest economy.After over a year of legislative process, the private sector promotion law, passed at a session of the Standing Committee of the National People's Congress, will take effect on May 20, 2025.The adoption of the private sector promotion law marks a milestone in the development of the nation's private economy, a major economic driver, since the beginning of reform and opening-up, experts said, noting its importance as the country ramps up efforts to foster new quality productive forces.Comprising 78 articles in nine chapters, the law covers such areas as fair competition, investment and financing promotion, scientific and technological innovation, regulatory guidance, service support, rights and interests protection and legal liabilities.The law aims to further improve the environment for the development of the private sector and ensure fair market competition for all types of economic entities. It also promotes the healthy development of the private economy and supports the comprehensive growth of entrepreneurs.During the drafting and deliberation process, lawmakers solicited public opinions through 54 legislative outreach offices and gathered broad feedback from private enterprises in various sectors, according to the members of the NPC Standing Committee.Private enterprises have long been a key driving force behind China's economic ascendance, contributing more than 60 percent of GDP and 80 percent of urban employment. In the first quarter, 1.979 million new private enterprises were registered, marking a 7.1 percent year-on-year increase - surpassing the average growth rate of the past three years. By the end of March, the number of registered private enterprises surpassed 57 million, accounting for 92.3 percent of all businesses nationwide, according to the State Administration for Market Regulation.New quality productive forces have become a key highlight of China's private sector. In the first quarter, 836,000 new private firms were registered in the "four new economies" - new technologies, industries, business formats and models, accounting for more than 40 percent of new private enterprises.GBA expressHong Kong Exchanges and Clearing (HKEX), operator of Asia’s third-largest stock market, said its first-quarter profit reached a record high, thanks to more new listings and increased turnover. Net profit rose 37 percent to HK$4.08 billion in the first three months, the exchange said on Wednesday. HKEX also topped its record profit of HK$3.84 billion posted in the first quarter of 2021.Nansha District in Guangzhou said children of non-local residents who purchase newly built homes in the area will be given access to school placements. This "home-for-school" policy is the first of its kind among China's major cities and comes as Nansha marks its 10th year as a free trade zone. Industry and company newsChina's railway network is expected to handle approximately 144 million passenger trips during the eight-day May Day holiday travel rush, which kicked off on Tuesday. The figure represents a year-on-year increase of 4.9 percent, according to China State Railway Group. To cater to this surge in traffic, China's rail authorities have scheduled additional train services, operating an average of more than 12,000 passenger trains each day.The purchasing managers' index (PMI) for China's manufacturing sector came in at 49 in April, down 1.5 percentage points from March, official data showed Wednesday. China's non-manufacturing PMI came in at 50.4 in April, down 0.4 percentage points from the previous month.Xiaomi today open-sourced its first LLM designed for reasoning, namely Xiaomi MiMo. According to the Chinese tech firm, MiMo outperformed OpenAI's closed-source reasoning model o1-mini and Alibaba's reasoning model QwQ-32B-Preview, with just seven billion parameters.Alibaba's Taobao joined the instant retail war by renaming its one-hour delivery service to “flash buy”, a joint effort of Taobao and its affiliate food delivery platform Ele.me. The service is available in 50 cities today and will expand nationwide on May 6.Kweichow Moutai's net profit widened 12 percent to 26.8 billion yuan in the first quarter from a year earlier, the Chinese liquor giant said yesterday. Revenue rose 11 percent to 51.4 billion yuan in the period, with overseas revenue surging 38 percent.China's three biggest airlines reported deeper first-quarter losses on Tuesday from the same period a year ago. Air China, the country's flagship carrier, reported a net loss of 2.04 billion yuan for the quarter, 22 percent lower than the prior-year period. China Southern, the country's largest carrier by capacity, moved into a net loss of 747 million yuan in the first three months of this year, having posted a comparable quarterly profit of 756 million yuan last year. And Shanghai-headquartered China Eastern Airlines reported a quarterly net loss of 995 million yuan, down 24 percent from last year.Asia-Pacific highlightsChinese Foreign Minister Wang Yi said on Monday that China always gives China-Thailand relations high priority in neighborhood diplomacy when meeting with his Thai counterpart. Wang said China is ready to work together with Thailand to deepen practical cooperation across various fields and bring more certainty to regional peace and stability. China welcomes Thailand's participation as a BRICS partner country and supports its full engagement in BRICS cooperation, he added.Australian wine exports recorded a strong rebound in the 12 months to March 2025, driven by surging demand from China after the removal of tariffs on Australian bottled wine. According to the latest export report released on Tuesday by Wine Australia, the country's wine industry regulator, wine exports to the Chinese mainland soared to 96 million liters, valued at AU$1.03 billion, accounting for nearly 40 percent of Australia's total wine export value.Against the backdrop of profound global geopolitical shifts, China and ASEAN are focusing on building a China-ASEAN Common Market. Rebecca Fatima STA Maria, former APEC Executive Director, said during an interview with the 21st Century Business Herald that the building of a common market presents a key opportunity for ASEAN, prompting reflection on the sufficiency of intra-ASEAN integration efforts. With the China-ASEAN Free Trade Area 3.0 negotiations concluding with substantial results, she stressed that ASEAN must integrate trade and investment environments, reduce barriers, and strengthen regional economic unity. Under U.S. unilateralism, she pointed out that ASEAN and Asian nations should leverage frameworks like RCEP to deepen regional cooperation, forming tighter economic partnerships with China, Japan, South Korea, Australia, and New Zealand to enhance resilience against unilateralist impacts.

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  8:49
• “China Travel” fever continues to gain momentum in upcoming May Day holiday

  Hi everyone. I’m Stephanie LI.Coming up on today’s programChina’s inbound tourism trips for Labor Day holiday surge 173%, trip.com says;Goldman Sachs raises 2025 southbound fund flow forecast due to growing attractiveness of HK stocks.Here’s what you need to know about China in the past 24 hours The number of inbound tourism orders for the upcoming Labor Day holiday on Trip.Com has climbed 173 percent from a year earlier, according to data from the Chinese online travel agency.The top Chinese destinations for foreign tourists are Shanghai, Beijing, Guangzhou, Shenzhen, and Chengdu, according to Trip.Com. Their main countries of origin are South Korea, Japan, Singapore, Russia, Malaysia, Thailand, the United States, Australia, the United Kingdom, and Vietnam.China is expected to see an average of 2.15 million daily border crossings during the five-day holiday, representing a 27 percent increase from last year, according to the National Immigration Administration on Monday.The inbound tourism boom is part of the result of recent social media exposure from foreign influencers. For example, overseas users’ searches for hotels in China tripled after YouTuber IShowSpeed visited the country. China’s recent policies allowing foreign tourists to obtain instant tax refunds upon purchase also help fuel the China travel heat. The country announced a lower threshold for tax refunds for foreign tourists among a series of policies on Sunday, from the previous 500 yuan to 200 yuan. The upper limit for their tax rebate in cash also has been doubled to 20,000 yuan. Domestic tourism is also expected to achieve new highs during the Labor Day holiday, which will run from May 1 to May 5. China’s Ministry of Transport forecast more than 270 million daily cross-regional trips during the period.Chinese airlines are expanding international routes to accommodate the ever-growing "China Travel" fever. On Monday, China Eastern Airlines launched a direct flight from Shanghai Pudong International Airport to Abu Dhabi, marking the first time a Chinese airliner flies this route. Sichuan Airlines will also open a direct route from Chengdu to Penang of Malaysia with five flights per week starting tomorrow. Additionally, the airline inaugurated a commercial charter service from Chengdu to Pokhara, Nepal, last month.On the accommodation end, over 80 percent of hotel reservations for the Labor Day holiday are cross-region stays, as the 5-day break prompted residents to venture farther, Trip.Com said, adding that about 20 percent of such bookings are for stays of two or more days for in-depth travel experiences.Another characteristic of this year’s Labor Day holiday is the pronounced shift toward rural destinations. Tourism demand in fourth- and lower-tier cities soared 25 percent from a year earlier, compared with a growth of 14 percent for higher-tier cities, Trip.Com data also showed. High-star hotel consumption in rural areas also greatly exceeded that in cities.GBA expressGoldman Sachs has significantly raised its 2025 forecast for southbound fund flows under the mainland-Hong Kong stock connects, raising the estimate from $75 billion to $110 billion, citing the growing attractiveness of Hong Kong stocks. Goldman Sachs said in a report that the upward revision reflects the more attractive H-share profiles in terms of earnings growth, valuation and dividend yields, as well as the expanded investable universe due to newly listed and home-coming companies.Hong Kong Chief Executive John Lee Ka-chiu has said he believes there is ample room for cooperation between the SAR and the Slovakia Republic in the application of innovation and technology during a meeting with Slovak Deputy Prime Minister for the European Union Recovery Plan and the Knowledge Economy Peter Kmec on Monday. Hong Kong is striving to become an international inno-tech center and Slovakia has announced various long-term digital transformation development strategies in recent years, Lee said. During the meeting, a memorandum of understanding on cooperation in science, research, and innovation was signed between the two places. Shenzhen’s Qianhai & Shekou pilot free trade area is making big strides in promoting business development in the region, as the cumulative transaction volume of Qianhai free trade accounts hit 1 trillion yuan, with nearly 80 percent of the balance of payments relating to cross-boundary transactions with Hong Kong, the latest official data showed on Sunday. Thanks to a raft of preferential policies, an increasing number of Hong Kong-funded enterprises have set up office in the Qianhai & Shekou area of the China (Guangdong) Pilot Free Trade Zone (Guangdong pilot FTZ), with the number reaching 8,048. The area also provides strong support for nurturing startups from Hong Kong. So far, Qianhai Shenzhen-Hong Kong Youth Innovation and Entrepreneur Hub has incubated 1,450 entrepreneurial teams, of which 943 are from the SAR.Passenger trips made by foreign nationals through the Zhuhai port of the Hong Kong-Zhuhai-Macao Bridge surged 70 percent to about 172,000 this year as of April 27, according to official data. Overall passenger trips via the land port exceeded 10 million on Sunday, achieving such milestone 25 days earlier than last year.Industry and company newsChina's services trade saw an 8.7 percent year-on-year growth in the first quarter, totaling 1.97 trillion yuan, according to the Ministry of Commerce on Tuesday. Services exports reached 835.15 billion yuan, up 12.2 percent from a year earlier, and services imports rose 6.2 percent to 1.14 trillion yuan, resulting in a deficit of 303.88 billion yuan. Trade in travel-related services continued robust growth momentum, jumping 21.8 percent year on year to reach 584.9 billion yuan.China's logistics volume hits 91 trillion yuan in the first quarter with a year-on-year increase of 5.7 percent, 0.4 percentage points higher than the growth rate in the first two months, according to data released by the China Federation of Logistics & Purchasing (CFLP) on Tuesday.Nvidia today denied rumors claiming the US chip maker is considering establishing a JV in China and is preparing to separate its Chinese operations due to restrictions from the US on its H20 chip exports to China, media reports.Sinopec reported a 28 percent decline in net profit in the first quarter of this year, mainly because of falling international crude oil prices. Net profit was 13.3 billion yuan in the period, while operating revenue rose 6.9 percent to 735.4 billion yuan.Chagee has started trial operations at its first North American store at Westfield Century City in Los Angeles, media reported. The Chinese tea chain began its global expansion in 2019 and has opened hundreds of stores across Southeast Asia since then.Asia-Pacific highlightsChina’s BYD yesterday started building an automotive assembly plant in Cambodia, the Council for the Development of Cambodia said. BYD is Cambodia’s most popular EV brand, ahead of Toyota and Tesla, according to the Southeast Asian nation’s Ministry of Public Works and Transport. The EV giant also plans to set up two service centers and install 200 electric vehicle charging stations across Cambodia. Guiyang, in China's Guizhou province, seeks to become a transit hub for Eurasian trade, opening up to the west and south by creating a land outlet to the sea. Guiyang's international dry port should be a "gateway" for a new highland of an open economy in inland Guizhou, according to a new document the provincial government released yesterday. The initiative aims to make it a global trade transit hub and logistics center, targeting the ASEAN, Central Asia, and Europe, turning it into an important global logistics hub in Southwest China.Singapore has cut the country's growth forecast for 2025 to zero percent to 2 percent in the face of US tariffs, a downgrade from the 1 percent to 3 percent range previously. Singapore's economy grew 4.4 percent last year.

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  9:59
• China confident of achieving full-year growth targets: NDRC

  Hi everyone. I’m Stephanie LI.Coming up on today’s programThe NDRC expressed confidence in achieving full-year development targets after China released data showing upturn of industrial profits in Q1;137th Canton Fair draws over 220,000 overseas buyers.Here’s what you need to know about China in the past 24 hours With ample policy reserves and sufficient policy room, China is fully confident in achieving this year's economic and social development goals and tasks, Zhao Chenxin, deputy head of the National Development and Reform Commission, told a press conference on Monday.China will roll out measures to keep its employment and economic performance stable and promote high-quality development, Zhao said, adding that the nation will intensify efforts to ensure the full effect of existing policies, including special campaigns to boost consumption and effectively utilize the 5-trillion-yuan investment funds at the national level.At the same press conference, Zou Lan, deputy governor of the People's Bank of China, said that any single market volatility has limited impact on China’s foreign exchange reserves. It will also strengthen the resilience of the forex market, stabilize market expectations, enhance market management, and prevent the RMB exchange rate overshoot, Zou noted.On the monetary policy front, Zou said the central bank will cut the reserve requirement ratio and interest rates at the appropriate time, based on economic conditions and financial market developments, to maintain abundant liquidity, and will continue to implement a moderately loose monetary policy and intensify support for the real economy. Meanwhile, industrial profits has shown improvement in the first quarter, underpinned by the strengthening of high-tech sectors and pointing to strong economic resilience amid trade tensions with the United States. Profits at China's major industrial companies saw total profits increase 0.8 percent year-on-year to reach 1.5 trillion yuan, following a 3.3 percent decline last year, data from the National Bureau of Statistics showed on Sunday.In March, profits of industrial enterprises above designated size jumped 2.6 percent year-on-year, reversing a 0.3 percent decline in the first two months.The NBS said the rebound in industrial profits was mainly driven by the robust performance of high-tech manufacturing, aided by stimulus packages including incentives for large-scale equipment upgrades and trade-in deals for consumer goods.Despite the continued recovery in industrial profits, the bureau noted that amid rising instability and uncertainties in the external environment, more efforts are needed to better implement the announced policy measures and fully unleash the policy potential.China on Sunday introduced a new policy that enables foreign visitors to claim departure tax refunds for purchases as low as 200 yuan per day at the same store, significantly reducing the previous threshold of 500 yuan. GBA expressA total of 224,372 overseas buyers from 219 countries and regions had attended the 137th China Import and Export Fair, also known as the Canton Fair, by the conclusion of its second phase on Sunday, according to the China Foreign Trade Centre. The second phase, focusing on quality home furnishings, kicked off on Wednesday with a total exhibition area of 515,000 square meters, featuring 24,735 booths and 10,313 exhibitors, up by 273 from the previous session. Hong Kong is expected to welcome about 840,000 tourists from the Chinese mainland during the upcoming five-day May Day holidays, which would be up 10 percent from the same period last year and up 13 percent from this year's Spring Festival holidays in terms of average daily visitor arrivals, the SAR Financial Secretary Paul Chan Mo-po said on Sunday. China's self-developed car carrier, the BYD Shenzhen, the largest of its kind worldwide, set off on its maiden voyage with over 7,000 NEVs of the Chinese auto giant from Taicang Port in China's eastern Jiangsu province yesterday and is expected to reach Itajai Port in Brazil after over 30 days.Industry and company newsChina is expected to see an average of 2.15 million daily border crossings during May Day holiday, representing a 27 percent increase from last year, according to the National Immigration Administration (NIA) on Monday. Also, some 10.75 million domestic air passenger trips are expected to be taken during the holiday, with a daily average of 2.15 million, up by record 8 percent from a year earlier, according to China's civil aviation authority.China’s cabinet has given the green light to 10 new nuclear reactors across five projects, with a total investment of more than 200 billion yuan. Each reactor unit, which will cost over 20 billion yuan, will be powered by China’s third-generation atomic power technologies, including Hualong One and CAP1000, and have an installed capacity of about 1,200 megawatts each.Around 40 Brazilian soybean ships are expected to dock at Zhoushan port in Zhejiang Province in April, a 48 percent year-on-year increase from the 27 shipments recorded in the same period last year, media reported on Monday, as China accelerates shift to Brazilian soybeans amid a tariff-induced plunge in US agricultural exports.JD.Com said yesterday that it plans to recruit another 100,000 full-time riders for its new food delivery service over the next three months, intensifying its rivalry with takeaway market leader Meituan. JD is offering comprehensive benefits, including full coverage of social insurances and housing fund, paid leaves, health check-ups, etc.Xiaomi's smartphone shipments soared 40 percent to 13.3 million units in the first quarter of the year from a year earlier, seizing a Chinese market share of 19 percent and reclaiming the top position after a decade, Chairman Lei Jun said on Weibo, citing Canalys' data.China had applied for 1.57 million AI patents as of April 9, ranking first worldwide, accounting for nearly 39 percent of the global total, CCTV reported, citing official data. Adora Cruises said China's second domestically-built large cruise ship, the Adora Flora City, has completed its in-dock floating at Shanghai Waigaoqiao Shipbuilding. The project is over 70 percent complete and has entered the critical interior decoration and system debugging stage.The crew of China's Shenzhou-19 spacecraft held a handover ceremony with that of Shenzhou-20 yesterday and will return to the Dongfeng landing site tomorrow, according to the China Manned Space Agency.Asia-Pacific highlightsThe China Pavilion at the Osaka Expo in Japan has accepted almost 90,000 international visitors since opening on April 13, an official from the China Council for the Promotion of International Trade said today.Singapore has experienced an influx of restaurant brands from the Chinese Mainland entering its market. It is reported that the country had around 32 Chinese catering brands as of the end of June last year, which are now operating 184 outlets. Cao Zhongming, the Chinese Ambassador to Singapore, said on a Friday event that for those visiting the city country, try and search for the “Black Pearl Restaurant Guide-Singapore”, the Chinese equivalent of the Michelin Guide.Leading Chinese powertrain manufacturer Weichai has been honored with the Manufacturing accolade at the Singapore Business Review (SBR) International Business Awards 2025 for its achievement in developing a diesel engine with a 53.09 percent thermal efficiency, the first of its kind globally.

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  9:09
• Perspective丨The Hollywood Collapse: How US' Tariffs Signal the End of an Era

  Hello! Welcome to this edition of CBN Perspective. I’m Stephanie Li.In recent weeks, Hollywood has found itself at the epicenter of a crisis fueled by geopolitical tensions and economic uncertainty. The Trump administration’s tariffs on Chinese imports—and Beijing’s countermeasures—have sent shockwaves through the American film industry, exposing vulnerabilities that threaten its global dominance. From soaring production costs to shrinking international markets, the signs of collapse are undeniable.Tariffs can affect any imported good that may be used in filming, from equipment to props to costumes. Trump’s tariffs have directly targeted materials critical to filmmaking, such as lumber, steel, and textiles. These increases have forced studios to grapple with 30% hikes in paint costs and rising expenses for imported costumes and props. But the pain doesn’t stop there.The ripple effects extend to advertising and distribution—a cornerstone of Hollywood’s revenue model. China’s decision to limit American film imports has sparked fears of declining IP licensing fees, a key source of income for studios. Advertisers are already scaling back investments, with industry analysts slashing 2025 growth forecasts from 4.5% to 3.6%. The result? Film production in Los Angeles has plummeted by 28.9% year-over-year, with studio usage dropping to a six-year low.Hollywood is and long has been intertwined with the global economy. More recently, the rise of streaming platforms investing heavily in international productions is reshaping the global cinematic landscape. Amid geopolitical tensions, streaming giants like Netflix are aggressively expanding their international production portfolios. Netflix’s commitment to invest $1 billion in Mexican film and TV production over the next four years exemplifies this trend.Such investments not only diversify content offerings but also reduce dependence on traditional Hollywood productions. This strategic pivot enables streaming platforms to cater to a global audience with localized content, potentially diminishing the dominance of American-centric narratives in the global market.For decades, Hollywood relied on its ability to shape global narratives and dominate box offices worldwide. China’s burgeoning film market used to be a key revenue stream for Hollywood, with American studios eager to capitalize on the expanding Chinese audience base.Yet today, its grip is slipping. In 2024, American films accounted for just 15.1% of China’s market share—a stark contrast to the days when blockbusters like “Avengers: Endgame” raked in 858 million domestically.Meanwhile, Chinese productions like “Ne Zha 2” have shattered records, earning $2.09 billion domestically compared to Hollywood’s top-grossing film “Avatar" ($2.92 billion globally).This shift isn’t just about numbers; it’s about cultural influence. If China turns away from American films, the ripple effects will devastate industries tied to IP and branding.Already, Hollywood’s global market share has fallen from 60% a decade ago to 51%, with audiences in France, India, and beyond increasingly favoring local content.Domestically, Hollywood faces its own demons. Streaming giants like Netflix and Disney+ have cannibalized theater attendance, with 73% of Americans now preferring home viewing. Ticket sales have plummeted from 12 billion in 2018 to a projected 7 billion in 2025.Beyond the shrinking numbers, Hollywood has also grown conservative creatively, leaning too heavily on Marvel and other franchise fare. The visual spectacle remains, but viewers are experiencing aesthetic fatigue.According to a China Film News report, original Hollywood productions accounted for just 18.6% of all US studio releases in 2024, a dramatic decline from 40.9% in 2000. In contrast, sequels, reboots, adaptations and spinoffs now account for 81.4%. This cost-efficient but creatively cautious model has dampened Chinese viewers' expectations for high-quality cinematic content.The world’s tastes are shifting at the meantime. Japanese animation continues to draw steady crowds, while European and Southeast Asian films are gaining ground. This year's surprise hits, Italy's "There's Still Tomorrow" and Britain's "National Theatre Live: Prima Facie," have exceeded expectations. Thailand's "How to Make Millions Before Grandma Dies" became a breakout sleeper last year.But Hollywood's box office and creative slump is only part of the picture. Film accounts for a significant portion of the broader US services sector, where the US has traditionally maintained a trade surplus with China.According to the US Department of Commerce, US service exports to China grew more than eightfold between 2001 and 2023, with the annual surplus peaking at nearly $40 billion. Film and other IP-driven content have long been a key part of that advantage.The tariffs’ true cost lies beyond economics—they erode Hollywood’s role as a cultural ambassador. For years, American movies projected ideals of heroism and innovation, subtly promoting US values. Now, as films like “Godzilla vs. Kong” struggle to find audiences, the industry’s ability to shape global perceptions is waning.A recent film agreement with Spain calls for deepening collaboration on co-productions, film festivals and mutual screenings, signaling that China is broadening its cultural partnerships.The irony is stark: Washington's trade restrictions and tariff moves, designed to protect American industries, may end up crippling one of the country's most impactful exports -- its cultural influence.The world is watching, and if Hollywood’s collapse teaches us anything, it’s that no empire, not even one built on celluloid dreams, is immune to the consequences of hubris.

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  7:38

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