Chinese President Xi calls for bay area integration push as Shenzhen-Zhongshan Link opens;China’s elder economy hits US$2 trillion in value – and industry is only just maturing
China’s factory activity contracts for second straight month
Welcome to this issue of The China Brief. Today is June 30, 2024. Here at The China Brief, we bring you the latest news on China's politics, economy, and society from global media sources, along with exclusive expert analysis. If you find our content helpful, please subscribe to our newsletter.
Chinese President Xi calls for bay area integration push as Shenzhen-Zhongshan Link opens
South China Morning Post
Chinese President Xi Jinping has called for increased integration of the Greater Bay Area, following the opening of a key cross-sea link between Shenzhen and Zhongshan. The Shenzhen-Zhongshan Link, which took seven years to build, will shorten travel time between Hong Kong and cities along both sides of the Pearl River Delta. President Xi hailed the link as a record-breaking engineering project, and stressed the need for it to run securely, smoothly, comfortably and intelligently. The Greater Bay Area refers to Beijing's plan to integrate Hong Kong, Macau and nine mainland Chinese cities into an economic powerhouse.
https://www.scmp.com/news/hong-kong/transport/article/3268615/chinese-president-xi-calls-bay-area-integration-push-shenzhen-zhongshan-link-opens?utm_source=rss_feed
China’s elder economy hits US$2 trillion in value – and industry is only just maturing
South China Morning Post
The final consumption value of products and services designed for China's aging population has reached CNY14.4tn ($2tn), according to a white paper from China Insights Consultancy and QuantaSing Group. The paper also found that 60% of Chinese people aged over 45 travel three or more times per year, although they are put off by high costs, and 34.7% of people in the same age bracket use online platforms for shopping. The paper authors said that products and services for middle-aged and elderly people are not yet fully mature, meaning there is significant market potential.
https://www.scmp.com/economy/china-economy/article/3268480/chinas-elder-economy-hits-us2-trillion-value-and-industry-only-just-maturing?utm_source=rss_feed
China’s factory activity contracts for second straight month
South China Morning Post
Factory activity in China remained in contraction for a second consecutive month in June, according to the official manufacturing purchasing managers’ index (PMI) released by the National Bureau of Statistics. The PMI stood at 49.5 in June, unchanged from May. A reading above 50 typically indicates expansion of activity, while a reading below suggests contraction. The non-manufacturing PMI, which measures sentiment in the service and construction sectors, fell to 50.5 in June from 51.1 in May, but remained in expansion territory for the sixth straight month. These figures add to the difficulties facing the Chinese economy ahead of next month’s key third plenum, where major economic strategies for the next five to 10 years are traditionally unveiled.
https://www.scmp.com/economy/economic-indicators/article/3268599/chinas-factory-activity-contracts-second-straight-month?utm_source=rss_feed
China tech firm enforces extreme overwork, exceeding contentious ‘996’ model
South China Morning Post
A tech company in China has launched a campaign called "Striving for 100 Days" which enforces extreme overtime that exceeds the controversial "996" work model. The company has reportedly called for employees to adopt an "896 work schedule" for 100 days, requiring them to work from 8am to 9pm, six days a week. Reports did not identify the firm involved, but workers have said that these long hours are not uncommon in the industry. The move has reignited the debate about overtime culture and the 996 model, which was ruled illegal by China's top court in 2021.
https://www.scmp.com/news/people-culture/trending-china/article/3267322/china-tech-firm-enforces-extreme-overwork-exceeding-contentious-996-model?utm_source=rss_feed
Hong Kong's talent pass program drives up housing rents
Nikkei Asia
Despite falling home prices in Hong Kong, rents are surging to new highs, driven by a surge in demand for lettings. The private residential rental index increased 1.02% month-on-month in May, marking the third successive month of increases. The rental surge is attributed to Hong Kong's talent pass program, which has attracted skilled professionals from mainland China and elsewhere. The program has surpassed its target, attracting 180,000 professionals by the end of May. On the other hand, home prices continue to fall, with the price index for pre-owned homes dropping by 1.2% in May and a 12.7% year-on-year decline.
https://asia.nikkei.com/Spotlight/Caixin/Hong-Kong-s-talent-pass-program-drives-up-housing-rents
China issues rare-earth regulations to further protect domestic supply
Japan Times
China has released a set of rare-earth regulations aimed at safeguarding supplies for national security purposes. The regulations, issued by the State Council, state that rare earth resources belong to the state and that the government will oversee the industry's development. China is currently the world's dominant producer of rare earths, accounting for nearly 90% of global refined output. Rare earths are critical materials used in a wide range of products, including magnets in electric vehicles and consumer electronics. The move comes as countries, including the EU, set ambitious targets for domestic production of minerals crucial to the green transition.
https://www.japantimes.co.jp/business/2024/06/30/china-rare-earth-regulations/
Why search for love in the ‘iron rice bowl’ may be killing growth in northern China
South China Morning Post
Young people in China’s northeastern regions are being encouraged to seek government jobs in order to improve their marriage prospects. An academic study has found that it is seen as an unwritten rule in the region that people with government jobs should only marry each other, with such relationships considered to be more important than any other factor, including salary. The study suggests that the practice is a consequence of the experiences of large-scale layoffs in the 1990s.
https://www.scmp.com/news/china/politics/article/3268436/why-search-love-iron-rice-bowl-may-be-killing-growth-northern-china?utm_source=rss_feed
A quarter of Hong Kong companies plan cuts in office space, up from 2023, says Colliers
South China Morning Post
Over a quarter of Hong Kong companies plan to downsize their office space this year, an increase of 6% from last year, according to a survey by Colliers. The survey also revealed that 91% of respondents cited price as the top factor when making rental decisions. The logistics and shipping sector had the highest share of respondents cutting office space, followed by the technology, media and telecommunications industry. However, half of insurers and a third of law firms surveyed wanted a bigger office in the next 12 months.
https://www.scmp.com/business/article/3268569/quarter-hong-kong-companies-plan-cuts-office-space-2023-says-colliers?utm_source=rss_feed
Genius China engineer cements love with concrete engagement ring
South China Morning Post
Yao Guoyou, a post-doctoral graduate from Tsinghua University in China, has faced criticism for proposing to his wife with an engagement ring made of cement. Yao is known for inventing a nano silicon ion material that improves the waterproofing quality of building materials, and his invention was used in the construction of the Beijing 2022 Winter Olympics arena. While some saw his proposal as romantic, others called it "cheap and insincere." Yao is the founder of Guardex, a company that specializes in cement waterproofing materials, and he has donated his products to impoverished areas. He holds about 60 patents.
https://www.scmp.com/news/people-culture/trending-china/article/3265573/genius-china-engineer-cements-love-concrete-engagement-ring?utm_source=rss_feed
Stay informed about the latest news, analysis, and policy briefs from across the globe related to China with the China brief. Our team aggregates, synthesizes, and summarizes the most important information from various sources, including media outlets, think tanks, government agencies, and industry experts.
Our mission is to provide you with easily accessible and critically valuable information tailored to your specific field of interest. We understand the significance of staying up-to-date on developments related to China and aim to make this information comprehensible for our readers.
Join the conversation and stay informed about the latest news and developments related to China by visiting our website at www.6dobrief.com