Chinese Economic Weekly Review - Jul.22~Jul.28
The must-see weekly hotspots of China's economy, all here for you!
Volkswagen invests $700 million in Xiaopeng Motors
On the evening of July 26, Volkswagen Group announced its plan to acquire approximately 4.99% of Xiaopeng Motors' (9868.HK) shares at a price of $15 per ADS, with a total investment of around $700 million. As part of the collaboration, Xiaopeng Motors and Volkswagen Group will jointly develop two B-class electric vehicle models based on Xiaopeng Motors' G9 platform, intelligent cockpit, and advanced driver assistance system software, which will be sold under the Volkswagen brand in the Chinese market.
Following this announcement, Xiaopeng Motors' US-listed stocks (XPEV.N) experienced a surge of over 40% during the day. Although there was some retracement later, the closing increase still reached an impressive 26.69%, dispelling the gloom that had been surrounding Chinese concept stocks this year.
MJ Comment: In the past, China used to trade market access for technology, but today, Chinese automakers are exporting technology to the world...
DJI's response to "Rejecting Indian Military Order Due to Risks": The related online content is severely untrue
Recently, there has been a lot of discussion in the industry about a circulated online content regarding a "business dispute between DJI and the Indian government." The content claims that the Indian military placed a huge order with DJI, but the company refused, citing "too much market risk in India." This has raised concerns and attention.
However, on July 26, DJI responded to inquiries from journalists, stating that the circulated online content is seriously untrue. DJI has not received any order invitations from the Indian side, and they will not export drones for military purposes.
MJ Comment: DJI's consumer drones are the best in the world, and no arguments will be accepted!!!
TEMU plans to open up to local sellers in the U.S. market
However, there is no specific launch date at the moment. Analysts point out that allowing local sellers to join the platform will provide a more diverse range of products and improve the shopping experience for consumers. For instance, shipping products locally will significantly reduce delivery times.
Recently, TEMU has been actively strengthening its ecosystem in overseas markets. This month, Pinduoduo launched the office social app "Whalek" overseas, and TEMU merchants have already started using this app for social chatting and business communication.
MJ Comment: I heard there's a new tactic going around recently. Merchants open stores on Amazon, list the same products as on TEMU but at triple the price, and when they receive orders, they directly purchase from TEMU... clever, right?
China has begun mass production of independently developed nuclear magnetic resonance (NMR) instruments
This technology is renowned as the "crown jewel" of advanced medical equipment, and it holds significant importance in the imaging diagnosis of various major diseases, including cardiovascular, neurological, and tumors. However, this technology has long been subject to restrictions imposed by foreign countries.
According to CCTV News, China has successfully achieved independent research and development of NMR instruments at the Shenzhen Institute of Advanced Technology, Chinese Academy of Sciences, and has commenced mass production. This notable achievement not only overcame technical challenges but also resolved issues related to the commercialization of scientific and technological achievements.
MJ Comment: A true testament to the impact of "technology changing lives."
CAICT: it is estimated that the overall market size of cloud computing in China will exceed one trillion yuan by 2025
Based on Gartner's statistics, the global cloud computing market size was 491 billion USD in 2022, with a growth rate of 19%. It is expected that the market will continue to grow steadily, driven by demand for large-scale models and computing power, and is projected to surpass two trillion USD by 2026.
According to CAICT's data, the Chinese cloud computing market reached 455 billion yuan in 2022, showing a remarkable growth of 40.91% compared to the previous year. With a growth rate surpassing the global average of 19%, the cloud computing market in China is still in a rapid development phase. It is anticipated that by 2025, the overall market size of cloud computing in China will exceed one trillion yuan.
MJ Comment: This has led to fierce competition in the cloud computing sector among major Chinese players, including Alibaba, Tencent, Huawei, and the three major telecom operators in China.