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China’s Economy Cooling Down

According a studied released on August 14 by the China National Bureau of Statistics China’s economic growth slowed 5.5%. This rate is lower compared to the first seven months (January through July) of the previous year’s growth. Beijing tried to explain the slow growth by China transitioning from ““high-speed growth” to “high-quality growth,” which was promoted by high tech initiative as part of Beijing’s “Made in China 2025” industrial policy. – Ziqing Zhang

For our assessment on the global impacts on businesses, see our detailed summary and assessment here.

Chinese Currency, Yuan, and Stock Markets Fall in Reaction to the Trade War

On August 6, the Chinese currency, Yuan, and mainland equities declined. While the yuan fell 0.17 percent to 6.8402 Yuan per dollar, the Shanghai Composite Index closed down 1.3 percent at its lowest since February 2016.For US companies heavily reliant on Chinese labor, Southeast Asia could be an alternative choice for relocating factories, temporary or permanent. – Ziqing Zhang

For more on the global impacts on businesses, see our detailed summary and assessment here.

BMW & Great Wall Motors to Produce Electric SUVs in New Joint Venture

On July 10, German automaker BMW and Chinese SUV manufacturer Great Wall Motor reached an agreement to work together to produce electric MINI vehicles, of Mini Cooper notoriety, in China. The joint venture will be called Spotlight Automotive Ltd and will focus on researching, developing, and manufacturing electric vehicles. – Weiting Li

China Intelligence Brief: June 2018

The China Intelligence Briefs are the start of a global initiative to provide context and recommendations to businesses, non-profit organizations, and policy makers who are looking for specific examples of opportunity or disruption from global events. While analyzing the macro problems we often identify specific issues that affect our clients and readers. Identifying both opportunities & challenges allow us to better identify solutions at home and abroad for a wide range of disciplines. In addition to the China Intelligence Briefs, we maintain detailed notes from interviews, overseas trips & business missions, conferences, conventions, and private events.
We provide access to these notes and other analytical products for clients and paid subscribers daily.

Apple Launches Green Energy Fund in China

Apple, a leading American tech giant, is showing its growing interest in renewable energy development in China, even amid trade tensions with the U.S. On July 13, Apple announced plans for a $300 million US dollar (USD) investment to launch a clean energy fund in China. The fund aims to develop renewable energy projects and generate more than 1 Gigawatt of clean energy which hopes to power 1 million households in China. – Weiting Li

American Meat Export is Likely to Take a Big Hit Following Chinese Tariffs

Following the latest round of American tariffs on Chinese goods July 5, Beijing responded with retaliatory tariffs imposed on July 6, adding a 25% duty targeting American soybeans, meat, and vehicles. US farm produce, especially beef and high-end steaks, is expected to take a significant hit as exports to China becomes increasingly more expensive. The duty rate on US beef to China is being tripled from 12% to 37%, just as US beef was beginning to reemerge as a strong player in Chinese markets. – Dillon Billingham

Tensions high as US Commerce Department bans exports to ZTE

The Committee of Foreign Investment in the United States (CFIUS) announced a ban that makes it illegal for American companies to supply ZTE with components and technology, through intermediaries or otherwise, effective immediately, for 7 years. CFIUS says this is due to the discovery that ZTE was selling US goods to Iran despite American sanctions in 2017. – Adriana Ray

Google invests in JD.com to rebuild its presence in China

On June 18, Google announced that it would be investing $550 million in JD.com, also known as Jingdong. JD is China’s biggest e-commerce company and claims net revenue of 100.1 billion Chinese Yuan (16.0 billion USD) in Q1 2018. As per the investment agreement, JD will join the Google Shopping advertising platform and in return, JD will work with Google on other e-commerce projects in Europe, Southeast Asia and the United States. – Ziqing Zhang

China Intelligence Brief (April-May 2018)

The China Intelligence Briefs are the start of a global initiative to provide context and recommendations to businesses, non-profit organizations, and policy makers who are looking for specific examples of opportunity or disruption from global events. While analyzing the macro problems we often identify specific issues that affect our clients and readers. Identifying both opportunities & challenges allow us to better identify solutions at home and abroad for a wide range of disciplines. In addition to the China Intelligence Briefs, we maintain detailed notes from interviews, overseas trips & business missions, conferences, conventions, and private events. We provide access to these notes and other analytical products for clients and paid subscribers.

Drones delivery is fast developing in China’s E-Commerce market

SUMMARY  On June 18, Jingdong, or JD.com, a Chinese e-commerce company, began testing their prototype drone delivery service, an initiative to reduce transportation costs and delivery times for more remote areas. On the same day, Google announced that it would be investing $550 million to develop new retail solutions using cutting edge AI and logistics…

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