China Biz Snips

cargo ship of COSCO SHIPPING Lines transporting Italian products to participate in the 2019 China International Import Expo (CIIE) berths at the Port of Piraeus in Greece. (Photo by Lefteris Partsalis/Xinhua)

Hello again from Aim2D real time, 24/7 China Business, Marketing, Tech and Social Media News Portal of Bic Brands based in sunny Shunyi. Tuesdays we look at business, marketing, tech or social news in and around China. Friday is image gallery where we examine a place, topic or subject giving you greater insight, background to life in China, and of course, your Chinese consumer.

As today is Tuesday June 28th we are taking a fast cruise over some headlines making business news in China last week.

China Mobile unveils 6G architecture plan

6G already? Some of us are still struggling to migrate up from 4G! However 56G in China has revolutionised the mobile experience as the mobile phone is China’s GoTo device for social media, E-com, video, entertainment. Above all perhaps, the seemingly now ubiquitous QR code for shopping, dining, travel, payment, car and bike hire and, well life in China. It is now much less of a time consuming hassle with 5g.

What practical advantages 6g will bring are still uncertain, but then our ancestors looked at the horse as a massive step up in transport. They would be agape at today’s jet liners and Hi-speed rail so I guess we will soon look down on 5G with equal disdain. Either way, China Mobile unveiled its overall architecture design on 6G last Tuesday as it steps up its push on the research and development of the next-generation wireless technology.

China’s 6/18 Shopping Fest

Around the 14 or 15 of June Aim2D suggested this years 618 shopping festival may not be quite the orgy of past events. And lo, it happened that JD.com reported the lowest sales growth on record for the e-commerce sector’s biggest summer shopping promotion. Fixing the blame on Covid.

Total sales for the 618 period, ( remember it kicks off with teasers and pre-orders 2 weeks in advance) rose just 10% year-on-year, down from last year’s 27.7% . Be that as it may, we still can’t help feeling that the “novelty” aspect may have peaked with China’s massive shopping galas. However, Covid willing the 11/11 shopping festival in November will give a clearer indication of where the future of the extravaganzas lies.

Chinese Couriers record falling profit for year to date.

Many websites are reporting almost 80% of China’s logistics companies reported that their profits declined in the first five months. Probably not surprising if read in tandem with the above report. If people ain’t buying, deliveries ain’t going to happen. We took our report from Caixin Premium.

China: The NEW Dairy Queen?

Not quite, but as it turns out, maybe one day not too far off.
Likely as not when you think of dairy producing countries you think mostly of Switzerland, France and then NZ and Australia. And for sure, these guys rank up there. But these days, the biggest players are Asian based with India currently holding top spot. Although to be fair, India’s heard, like the US, is a mix of cow and buffalo.

What is interesting is that China currently ranks at #2 for global dairy production, yet only a small % of this is exported, mostly to Asia. In 2020 it was reported:

” China is heavily investing in building a 100,000-cow dairy farm to export milk to Russia. According to speculations, the Chinese farm is three times bigger than the largest dairy farm in the USA.”

However what caught our eye was an article relating to the 15th Global Dairy Congress in Laval, France, on June 14-16. Of note was that Chinese dairy giant Yili Group and its subsidiary Ausnutria ( A dutch firm) topped the tally of the World Dairy Innovation Awards. Apparently Yili has set up a total of 15 innovation centers scattered around the world and a ‘global intelligence chain’ has now been established.”

When speaking of its international ambitions, Yili said it needs to carry out personalised innovation according to the needs of local consumers. So whilst currently Yili and local producers cater largely for the domestic and near neighbour market, it might seem they have aspirations to take on some of the worlds biggest players. You can read the full report here: Chinese dairy giant tops world innovation tally courtesy of China Daily.

EV in China

Today we also take a quick peek at a couple of headlines relating to China NEV or Electric Vehicle market. Early this year, BMW made headline with yet another snipe and challenge to TESLA claiming its time at the top of the heap was limited – or words to that effect: BMW dice que los días del dominio de Tesla en el mercado de los autos eléctricos se han terminado.

More recently, just last week in fact, in China they made headlines again with news of a new plant, “Lydia” opened in conjunction with their partner Brilliance Automotive in Shenyang, capital city of Northeast China’s Liaoning province. Again the full story can be read here: BMW faster in EV lane with new plant courtesy of China Daily. It would seem they may be starting the battle with TESLA on what is currently the worlds busiest EM market – China.

“Together with the newly upgraded Dadong plant, Lydia will play an important role in accelerating China’s electrification of its auto industry,” he said.

Also in last weeks news round up was the prediction that sales of small new energy vehicles in China will surge in the wake of the country raising retail prices of gasoline and diesel again. This is the 10th such increase this year. (2020)

If that prediction holds true we could see the start of a battle between TESLA’s Model 3 and BMW’s i3. However, based on our highly technical research methodology (standing on a street corner and counting on our fingers) we estimate the small, low price end EV market is already pretty well fleshed out with local brands in pole position. Our guess is the battle will be for the high end, big lire market currently dominated (in China) by Maserati, Lamborghini, Audi, Mercedes and BMW.

Anyway you can read the full story here: Gas-fueled cars falling out of favor as prices rise yes, again, via China Daily ( what can we say, it’s been an incredibly hot week, we’re too lazy to dig deeper!)

However, as a coincidence we did stumble across this more than slightly misleading, click bait headline. The site seems to specialise in sensational headlines to draw traffic to its primary business model, share market trading. Such as:
Tesla’s Giga Shanghai Plant To Shut Down. Turns out is it only for 2 weeks maintenance and capacity upgrade. However, for those of you who are interested in global EV news it may be of interest. This is NOT ONE OF OUR VERIFIED SITES – take it with a grain or more of salt. Week’s Top News From EV Industry.

Latest China Social Media News

Finally, for those of you looking for some China Social update news, this article from our friends at Sixth Tone – ( the ones who brought you “Remembering Shanghai” last Friday) we have some feed back on Chinese views on working from home V/S working from the office: Chinese Embrace Remote Work — Just Not Under Lockdown -reminiscent of a quote from “Remembering Shanghai.”

“Turns out there is a big difference between not wanting to out and being forbidden to go out”

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