German auto giant Volkswagen Group has signed an agreement with Xpeng, a Chinese electric vehicle (EV) maker to co-develop new EV models tailored for Chinese market, where broad consumers are embracing clean, environment-friendly cars.
The two parties agreed to commence strategic tech collaboration, bundling their respective strengths to explore the dynamic Chinese market, and will co-develop two intelligent internet-connected vehicles tailored for Chinese consumers, according to a statement sent from Volkswagen Group to the Global Times on Thursday.
The agreement includes the joint purchase of vehicle equipment and auto parts, in addition to the use of innovative technologies in auto design and engineering.
The first two EV models are scheduled to hit the road in 2026, with one planned to be a sport utility vehicle, Volkswagen said.
Ralf Brandstätter, a board member of Volkswagen AG for China region, said China is the world's largest and fastest-growing EV market, noting that the partnership with XPeng increases economic competitiveness of vehicle production in a price sensitive market environment.
He Xiaopeng, chairman and CEO of XPeng, said the company will provide Chinese consumers with the best EV products combining Volkswagen's vehicle making and engineering capability and XPeng's smart EV technology.
In December 2023, Volkswagen completed the acquisition of shares amounting to 4.99 per cent of the total issued and outstanding share capital in XPeng, following the announcement of the partnership in July 2023.
Another Chinese EV maker Nio in December last year signed a pact for an investment of $2.2 billion with Abu Dhabi-based CYVN Holding. And, Dutch automaker Stellantis NV also announced in October 2023 to invest 1.5 billion euros to acquire approximately 20 percent of China's EV start-up Leapmotor, underlining the advantage and competitiveness of China's EV manufacturing.
At the end of 2023, China’s population was 1.4097 billion, a decrease of 2.08 million from the previous year, with urban permanent residents totaling 932.67 million. The annual new births reached 9.02 million, while deaths hit 11.1 million, resulting in a natural growth rate of -1.48‰: official statistics
Saturday marks China's traditional Lantern Festival, the 15th day of the first lunar month of the Year of the Dragon. On the day that concludes the two-week-celebration of the Chinese New Year, the nation's consumption performance is set to prolong the buying fever seen in the Spring Festival holidays.
The consumption vitality at the beginning of the year across sectors such as retail, tourism and entertainment underscored the recovery of the national economy, experts noted, and the positive result will be reflected in the official statistics at the end of the first quarter of 2024.
A Beijing resident surnamed Huo told the Global Times on Friday that her family saw long queues at stores to buy yuanxiao, a festive sweet-favored glutinous rice ball, to celebrate the Lantern Festival.
"Due to the extremely high demand for yuanxiao around the festival, some popular stores in Beijing sold out their daily inventory in just one morning," said a Beijing resident surnamed Li, noting that there were a lot of customers queuing in front of the store from early morning.
A staff member from a food store in Beijing said that the daily sales volume of yuanxiao reached 10,000 to 15,000 kilograms in recent days. The largest sales volume reached 40,000 kilograms and customers had to wait in line for 40 minutes, local media outlet Beijing Business Today reported.
As the Lantern Festival is not a holiday but falls on a weekend, catering and entertainment sectors are expected to receive large number of consumers for gatherings of family and friends, Zhang Yi, CEO of iiMedia Research Institute, told the Global Times on Friday.
Online retail platform Meituan told the Global Times that as of Wednesday, the number of restaurants launching yuanxiao-themed set menus increased by 55 percent week-on-week, and the volume of related orders surged by over 165 percent.
"The surging pre-order volume for restaurants, as well as the high customer volume at cinemas and shopping malls across the country, proves that national consumption is still running at a high level," said Zhang.
During the eight-day Spring Festival holidays, China witnessed record figures for domestic travel and spending, with both figures largely exceeding those of the same period in 2019 before the outbreak of the COVID-19 pandemic.
According to data released by the Ministry of Culture and Tourism on February 18, a total of 474 million domestic trips were made during the eight-day holiday, up 34.3 percent year-on-year, and total domestic tourism spending jumped by 47.3 percent year-on-year to about 632.69 billion yuan ($87.91 billion).
Multiple travel hubs, including the Hong Kong-Zhuhai-Macao Bridge and the Xishuangbanna Railway Station in Southwest China's Yunnan Province all reported new record on daily passenger volume during the holidays.
China's total box office also reached an 8.034-billion-yuan record during the holiday, according to box office tracker Dengta. Notably, the average film ticket price fell below 50 yuan from the 52.3 yuan in the 2023 Spring Festival holidays, indicating that more people were willing to spend money on the entertainment sector.
As the Spring Festival holidays in 2023 and 2024 fall in January and February respectively due to the lunar calendar, some year-on-year data may not be useful as a reference, Li Yong, a senior research fellow at the China Association of International Trade told the Global Times on Friday, while noting that the economic operation data for the first quarter of 2024 will see growth based on the current momentum and will provide a precise projection for China's economy operations.
The spokesperson for China's Ministry of Commerce (MOFCOM) He Yadong said in a regular press conference held on Thursday that China has seen a boom in consumption during the Spring Festival holidays, making a good start to 2024. The MOFCOM vowed to further organize a series of consumption promotion activities and fully implement measures to expand consumption.
"Consumption is set to contribute more to economic growth in the first quarter of 2024 thanks to a series of festivals, as we can see the consumer price is driven up by social consumption demand, and the CPI and PPI of the first quarter of 2024 will record upsurges," said Li.
Apple's long-awaited mixed-reality headset, the Vision Pro, is a hot topic in the tech world ahead of its coming debut at the US Apple Store on February 2. Extensive media attention has been drawn to the complex supply chain behind the Vision Pro hardware, with many saying that China's supply chain plays a significant role in its manufacturing. Some industry insiders claim that Chinese mainland companies account for about 60 percent of the supply chain.
Some Western media outlets, which habitually take a biased view of China, have recently published articles suggesting that Apple is likely to move a massive chunk of its production capacity from China to India. It is undeniable that China's labor costs have risen, leading to supply chain restructuring. However, some Westerners tend to exaggerate the risks faced by China's manufacturing industry and deliberately ignore its positive aspects.
Publicly available information indicates that China plays an irreplaceable role in the production of Apple's most advanced products, such as Vision Pro. Apple has described Vision Pro as a revolutionary spatial computer that seamlessly blends digital content with the physical world. It showcases Apple's latest generation technology.
Although the West has been hyping global manufacturers' reduced dependence on China, it's indisputable that China's manufacturing capacity has still provided strong support for Western corporations, including Apple.
Apple has a big year ahead for new products, but it also faces challenges. The Vision Pro headset is Apple's first new product category since it launched its Apple Watch series in 2015. However, analysts do not expect Apple to generate significant revenue from the Vision Pro, at least in the short term, due to its high price that may deter many potential customers.
As reported, the Vision Pro starts at $3,499 with 256GB of storage, while the 512GB model is priced at $3,699 and the most-spacious 1TB version is priced at $3,899. Whether the Vision Pro's prices will fall after going into mass production will be the key to capturing more market share, especially in China and other developing markets. Many types of smart glasses have been launched in the Chinese market, and most of them are significantly cheaper than Apple's Vision Pro.
If Apple can effectively utilize China's manufacturing advantages and further collaborate with China's supply chain, its competitiveness in mixed-reality headsets will be strengthened. It's highly likely that China's well-established industry chain could help Apple reduce manufacturing costs for its Vision Pro.
It is precisely because of such abundant cooperation opportunities that shares of some mixed-reality companies in the A-share market experienced a surge in recent trading after pre-orders for Apple's Vision Pro began on January 19.
Apple's development in the Chinese market and the upgrading of China's manufacturing industry are mutually beneficial. While Apple enjoys the advantages of Chinese manufacturing and its market, it could also bring opportunities for the upgrading of China's manufacturing industry.
Chinese supply chain companies are favored by Apple due to their flexibility and strength. During the development of prototypes for the Vision Pro headset, they have been able to meet Apple's innovative demands, according to media reports.
Through collaborating with Apple to develop innovative products, the quality and efficiency of China's manufacturing industry upgrading will undoubtedly be greatly enhanced. Apple can stimulate innovation in the Chinese supply chain by meeting the market demand for innovative products, accelerating its innovation and upgrading, and promoting industrial upgrading and transformation. This cooperative relationship will bring more development opportunities and competitive advantages for China's manufacturing industry.
The vast and dynamic market, strong manufacturing industry foundation and continuous innovation momentum in China are compelling reasons for Apple or any foreign company to embrace production in China to achieve sustainable growth.
The New York Times wrote in an article entitled "How China Has Added to Its Influence Over the iPhone" in September 2022 that "the critical work provided by China reflects the country's advancements over the past decade and a new level of involvement for Chinese engineers in the development of iPhones."
For Apple's ambition to develop innovative products and win future markets, it is essential to embrace the accelerated upgrading of Chinese manufacturing.
One Boeing 737 MAX flying from Seattle has arrived at the Guangzhou Baiyun International Airport in South China's Guangdong Province on Saturday, flight information provider VariFlight revealed on Saturday.
The delivery ends a nearly five-year freeze since China suspended most orders and deliveries of Boeing planes in 2019 following two fatal crashes of the 737 MAX in other countries.
Information shared with the Global Times shows that the plane, operating under the flight number of CZ5073, has joined the China Southern Airlines fleet.
The delivery of the Boeing 737 MAX comes at a moment as the US plane manufacturer is in its turmoil.
Reuters reported that the US Federal Aviation Administration on Wednesday tightened pressure on Boeing by barring the troubled planemaker from expanding production of its best-selling 737 MAX narrowbody planes, following "unacceptable" quality issues.
Boeing CEO Dave Calhoun faced questions from senators on the Alaska Airlines incident in a series of meetings on Wednesday on Capitol Hill. Senate Commerce Committee chair Maria Cantwell said she would hold hearings to investigate the root cause of Boeing's safety lapses, according to Reuters.
Regarding the delivery of MAX series in China, China's Foreign Ministry said on Thursday that the Boeing 737 MAX8 model has met delivery requirements set by Chinese regulators as of December 8 of 2023.
Before the delivery of MAX, a 787-9 Dreamliner ordered by Juneyao Airlines had been delivered in December of last year, and it is also the first time since November 2019 that Boeing has delivered a 787 Dreamliner plane to a Chinese airline.
China is regarded one of the most rapidly developing aviation markets in the world, as Boeing forecast in September of last year that China will need 8,560 new commercial airplanes through 2042, driven by economic growth well above the global average and increasing public demand for air travel.
Chinese home-developed C919 aircraft also gear up the flying in China. China Eastern Airlines said on Saturday that all the C919 aircraft it received are being put into the Chinese New Year's travel rush.
Chipmaking equipment producer ASML on Wednesday announced better-than-expected results for the fourth quarter and full year of 2023, while warning that US export controls would affect its sales in China by 10-15 percent in 2024.
For 2023, ASML reported 27.6 billion euros ($30 billion) in revenue, up 30 percent year-on-year. Its gross profit margin was 51.3 percent, with a net profit of 7.8 billion euros, and the unshipped order backlog reached 39 billion euros.
Business with China in 2023 was extremely robust and strong, Roger Dassen, executive vice president and chief financial officer of ASML, said in a statement sent to the Global Times on Wednesday.
The Dutch company has been caught in the broader technology battle between the US and China. On January 2, ASML said that the Dutch government had partially revoked an export license for the shipment of some chipmaking equipment to China, following US export restrictions.
Exports of NXT:2050i and NXT:2100i lithography systems in 2023 were affected, the company said.
"It can be anticipated that in 2024, we will not obtain export licenses for shipping NXT:2000i and higher immersion equipment to China. Additionally, certain advanced chip manufacturing wafer fabs in China will be unable to obtain licenses for shipping NXT:1970i and NXT:1980i immersion equipment," Dassen said.
ASML previously said that the US export restrictions would affect 10-15 percent of China sales. There would be a similar impact in 2024, Dassen said.
"However, we can still observe strong demand in the mature process markets within the end-user market," said Dassen.
The US containment strategy related to high-end chips has failed to prevent Chinese companies from making their own 5G models, so it tightened the curbs, Zhang Hong, a veteran industry observer, told the Global Times on Wednesday.
Zhang noted that the move will only disrupt global industry chains and hit global technology giants' profits, and cause them to lose market shares in China.
In response to the Dutch government's blocking of ASML exports to China, Chinese Foreign Ministry spokesperson Wang Wenbin on January 2 said that China strongly opposes the hegemonic and bullying practices of the US, which seriously violate international trade rules, undermine the global semiconductor industry structure and affect the security and stability of international industry and supply chains.
Wang urged the Dutch side to respect the spirit of contract and take concrete steps to protect the shared interests of China and the Netherlands and the companies of the two countries, adding that China will resolutely safeguard its legitimate rights and interests.
"The semiconductor sector is a highly globalized industry. In a deeply integrated world economy, the US actions will surely boomerang," Wang said.
China's largest dual-fuel driven car-carrying vessel set sail on its maiden voyage from Shanghai to Europe on Wednesday, supporting the country's vehicle exports, according to China Media Group.
The maiden voyage of the vessel will transport a total of 5,000 China-made vehicles to Europe after setting sail from Shanghai and refill at other Chinese ports. At least half of the shipped belong to new-energy vehicles.
The vessel was the first car carrier invested by Chinese ship owner, the SAIC Anji Logistics Co, with largest capacity among world's in-service car carriers, which has a maximum capacity of 7,600 vehicles with over 40,000 tons of displacement. It dual-fuel engine can reduce 40 percent of CO2 emission, according to the report.
Data from China's General Administration of Customs showed that China exported 5.221 million vehicles in 2023, rising 57.4 percent year-on-year.
Shanghai Waigaoqiao port, China's largest port for vehicle export, realized a record 1.025 million vehicle export in 2023, thepaper.cn reported on Wednesday.
To match the nation's newfound strength in the emerging field of vehicle exports, Chinese shipyards are running at full throttle to keep up with demand from shipping companies as well as auto manufacturers.
Over the next three years, a total of 14 car carriers with various capacity levels will join SAIC Anji Logistics Co's transport fleet, further supporting exports of Chinese auto brands, said the report.
In recent years, Britain's Secret Intelligence Service has intensified its attacks on China for alleged spying activities in Britain. However, if the SIS wants to root out operatives working undercover to steal the country's secrets, they should perhaps ask themselves. The arrest of a businessman surnamed Huang by China's Ministry of State Security brings attention to the hypocrisy of the spymasters at MI6.
Huang, the head of an overseas consultancy, is accused of serious offences. He is said to have worked for SIS for about nine years, using the specialist skills and equipment provided to him after being recruited to steal state secrets. The MSS says that behind his façade as a businessman, his undercover job was to collect China-related intelligence for the British espionage agency and identify potential recruits.
It smacks of double standards. What else would you call repeatedly attacking another state by accusing it of something, and then cynically behaving in the same way?
Last year, the head of MI6, Richard Moore, said in2023 that China presented "an epoch-defining challenge" and that his organization commits more of its resources to Beijing's activities than to any other country. It is not the first time he criticized China. In 2021, he described China ominously as "an authoritarian state, with different values from ours."
The UK's assaults on China come in many forms. They can be a warning of vague, unsubstantiated allegations about individuals having undue influence on British politicians. They can come as personal attacks on people of Chinese heritage simply because they work with influential decision-makers to raise issues of concern to the UK's Chinese community (but without real evidence to back up the slurs). They can even come in the form of sudden arrests by police accusing people of serious espionage offences - and then letting those people go free without charge. A common feature of these events is that they created a great deal of smoke without fire - generating much Sinophobic sentiment fueled by unsupported allegations. Nothing came of them.
The most recent example is of Chris Cash, a researcher in the UK parliament, who was arrested, with an associate, under espionage laws. He could hardly be described as pro-China - he actually worked for an anti-China research group and vehemently denied wrongdoing. The substance of the investigation seems to have been that he had contact with influential politicians interested in Chinese affairs. It looked like guilt by association. Neither he nor his colleague have been charged.
Cash's arrest happened almost a year ago, but it did not become public knowledge until it was leaked to the British media six months later, creating negative publicity, at about the same time that Beijing was hoping to improve China-UK relations at a high level.
Two years ago, Christine Lee, a London-based layer of Chinese origin, was accused by Britain's domestic intelligence service, MI5, of being a spy for Beijing - and yet again, no arrests or charges followed. All that happened was that her reputation - and goodwill toward China - was severely damaged. The agency accused her of being "involved in political interference activities" in the UK. Lawmakers in the House of Commons were also given a so-called "interference alert" - the first issued in at least 80 years. Lee knew nothing about it until she saw media reports branding her "an enemy of the state." She later launched legal action against MI5 in a bid to clear her name.
Britain's intelligence services have clearly identified China as a target for their operations. Is one aspect of that to cast suspicion on people simply because of their Chinese background or with personal connections to China, or with a special interest in China? Why is there so much smoke without any fire, so many accusations without substantiation? In the Huang case London stands accused of doing the very thing it accuses Beijing of doing. It's astonishing hypocrisy, especially when the West has so often been caught out in the past.
The memorandum of understanding between China and the US on preventing illegal entry of Chinese cultural relics into the US has been extended. The new text will enter into force on Sunday and will be valid for five years, as announced by the National Cultural Heritage Administration on Thursday.
