Hi everyone. I’m Stephanie LI.
Coming up on today’s program.
LAC region has become the second largest destination for China's investment as BRI cooperations deepen;
Great Wall Motor accuses two BYD hybrids of failing to meet pollutant emissions standards as competition intensifies.
Here’s what you need to know about China in the past 24 hours
Latin American and Caribbean region has become the second-largest destination for China's overseas investment, according to the China-CELAC Private Sector Forum held on Wednesday in Dongguan, Guangdong province.
In 2022, China-LAC trade reached $485.7 billion, up 7.7 percent year-on-year. More than 3,000 Chinese enterprises operate in the LAC region, including many private ones.
Xu Lejiang, executive vice chairman of the All-China Federation of Industry and Commerce (ACFIC), one the forum’s organizers, said China is pursuing high-quality development and high-level opening-up, which will surely bring more opportunities to LAC countries and the rest of the world.
Xu said when conducting economic, trade, and investment cooperation with LAC countries, Chinese private enterprises should actively shoulder social responsibilities and contribute to the steady and long-term development of China-LAC friendly cooperation.
Trades between Guangdong and the region have witnessed steady growth, as their trade volume exceeded $65.5 billion in 2022, up 9.5 percent year-on-year, data released at the forum showed.
With the active participation of private enterprises, Guangdong has continuously strengthened its friendly exchanges, economic cooperation and trade cooperation with Latin American and Caribbean countries in recent years. The province and CELAC have paired 18 cities with sister cities, and 11 Latin American countries have established consulates general in Guangzhou, capital of Guangdong.
In 2022, the added value of Guangdong's private economy was 6.98 trillion yuan ($989.23 billion), and the total import and export value of the province's private economy was 4.87 trillion yuan, according to the provincial government.
Guangdong will continue steadfastly promoting high-level opening-up, and building a market-oriented, law-based and internationalized business environment to deepen its private economic cooperation with Latin American and Caribbean countries.
Greater Bay Area, Greater future
Macau's GDP soared 39 percent in the first quarter of 2023 on the year, for its first positive growth in five quarters, and rebounded to 66.4 percent of its pre-pandemic level, the SAR's statistic department said on Thursday, bolstered by a revival in visitor numbers and higher spending. The number of inbound tourists in the first quarter surged by 1.6 times to reach 4.95 million. As a result, total exports of services rose by 71.5 per cent year-on-year, while imports of services increased by 24 percent. The value of Macao's retail sales for the first quarter totaled 24 billion patacas ($2.97 billion), up by 29.3 percent year-on-year and jumped by 62.3 percent from the previous quarter.
Next on industry and company news
Chinese fuel-car giant Great Wall Motor is making its conflict with local new energy vehicle (NEV) giant BYD public, as the competition between the two grows fiercer. Great Wall Motor has filed a report with Chinese regulators against BYD, alleging that the latter's Qin Plus DM-i and Song Plus DM-i use normal-pressure fuel tanks and are suspected of having substandard evaporative pollutant emissions, according to a statement today. BYD then responded with a statement on Weibo saying that its products and testing meet national standards and that the company is firmly opposed to any form of unfair competition. BYD said the test vehicles did not meet the status required by Chinese national standards for submission for testing, therefore the result should be deemed invalid.
长城实名举报比亚迪：5月25日，比亚迪、长城汽车两大汽车厂商股价午后双双下挫。25日上午，长城汽车股份有限公司发布《声明》，就比亚迪秦PLUS DM-i(产品型号:BYD7152WT6HEVC2)、宋PLUS DM-i(产品型号BYD6470ST6HEV2)采用常压油箱，涉嫌整车蒸发污染物排放不达标的问题进行了举报。目前，长城汽车正在密切关注该案的立案及处理进展。随后，比亚迪汽车官方发布声明称，“坚决反对任何形式的不正当竞争行为，并保留法务诉讼的权力。”比亚迪方面表示，经了解，长城所说的情况，测试车辆由长城购买、保管并安排送检，中汽中心（天津）按长城的要求进行了相关项目的检测。测试车辆严格来说，不符合国标要求的送检状态，即应由第三方抽样、保管及送检，并要求完成3000公里磨合后测试，而长城送检的车辆在检测时，里程仅为450-670公里。鉴于以上，公司认为其检测报告无效，长城不能以此作为依据。
Shares in TCL Zhonghuan Renewable Energy Technology advanced today after the world’s second-biggest solar wafer maker said it is teaming up with Saudi Arabian clean energy developer Vision Industries to construct the Middle Eastern country’s first solar wafer factory. TCL Zhonghuan will provide the production tech and Vision Industries will leverage its local resources and experience of investing in renewable energies, such as solar, wind and hydrogen, to ensure the construction and operation of the solar wafer plant, the firm announced yesterday.
TCL中环拟合资沙特建厂：中国上市公司TCL中环新能源科技股份有限公司24日发布公告称，公司与Vision Industries Company(下称“Vision Industries”)讨论拟共同成立合资公司并在沙特阿拉伯投资建设光伏晶体晶片工厂项目，经友好协商于当日签署合作条款清单，推动合作项目进程。公告显示，Vision Industries注册地为沙特阿拉伯，其主营业务为新能源全产业链投资开发，包括太阳能光伏、风能、氢能、储能等。
The cloud computing arm of Chinese e-commerce giant JD.com has lowered the price of many of its core services, including storage, security and cloud computing, in order not to be left behind as rivals Alibaba Cloud and Tencent Cloud offer substantial discounts. JD Cloud has trimmed the price of its standard cloud hosting service to 2,053 yuan per year, 233 yuan lower than “certain competitors,” the company said on its Wechat account. Its 10 million risk identification service is now available for 60,000 yuan a year, 4,000 yuan below these rivals. And if that is not enough, if a lower price be found, it will beat it by 10 percent.
Wanda Group has denied a report that the cash-strapped Chinese real estate developer plans to boost liquidity by selling 20 shopping malls for up to 16 billion yuan in wealthy areas such as Shanghai, Zhejiang, and Jiangsu, seeking a valuation of about 700 to 800 million yuan for each. It follows a string of negative publicity in which the developer has been reported to be laying off staff and to be in talks with major Chinese banks about extending loans. Wanda said today the report was “untrue”.
Shares of Jinko Solar moved up after the Chinese solar panel manufacturer said it will build a pioneering 56 billion yuan industrial park for photovoltaics in northern China. The company will construct a production base in Shanxi province to make products along the PV industry chain, including silicon single crystal rods, wafers, and modules, with an annual capacity of 56 gigawatts at each step, the firm said in a statement yesterday.
The Chinese arm of US e-commerce giant Amazon announced that it will no longer run the domestic marketplace that allows shoppers to buy from local sellers as it downsizes operations in the country. Amazon China said in a statement on Wednesday that its online store Amazon.cn will cease operation from July 17, but Chinese shoppers will still be able to order goods from Amazon's global store. Amazon announced last June to stop supplying its Kindle e-readers to retailers in China and would stop selling ebooks in the country at the end of this June.
Earnings reports express
Chinese handset maker Xiaomi returned to profit in the first quarter, while its revenue fell in the period amid lower smartphone sales. Net profit was 4.2 billion yuan in the first quarter, versus a net loss of 587 million yuan a year earlier, the firm announced yesterday. Revenue fell 18.9 percent to 59.5 billion yuan. But adjusted net profit rose 13.1 percent to 3.2 billion yuan, thanks to a decline in related costs, Xiaomi said. Its revenue from the smartphone business plunged 23.6 percent to 35 billion yuan in the first quarter from a year ago, as phone shipments declined 21.1 percent to 30.4 million. Meanwhile, the average price of Xiaomi cellphones sold in the Chinese mainland rose over 18 percent. And the overall gross profit margin rose 2.2 percentage points to a record 19.5 percent thanks to cost reductions. The company invested 1.1 billion yuan in the electric vehicle business and other new initiatives for the quarter. Company president Lu Weibing said Xiaomi plans to start a new round of testing for its EVs during the summer and winter, adding that car-making progress was in line with expectations.
Shares of Xpeng Motors plunged after the Chinese NEV startup said its net loss widened 37.4 percent to 2.3 billion yuan in the first quarter, versus 1.7 billion yuan a year earlier, the firm said yesterday. Revenue fell nearly 46 percent to 4 billion yuan. Gross margin came in at only 1.7 percent in the first quarter, compared with 12.2 percent a year earlier. Xpeng delivered 18,230 cars in the first quarter, down 47.3 percent from the same period last year. Revenue from car sales dropped 49.8 percent to 3.5 billion yuan. It also lowers the expectation for its second-quarter deliveries to between 21,000 and 22,000 units and revenue down by as much as 39.5 percent to 4.5 billion yuan.
Wrapping up with a quick look at the stock market
Chinese stocks extended rout on Thursday as overseas funds were net sellers of onshore stocks for a third straight day. The benchmark Shanghai Composite shed 0.1 percent and the Shenzhen Component fell 0.2 percent. Hong Kong’s Hang Seng index tumbles 1.9 percent to below 19,000 mark, and the TECH index dropped 2.3 percent.
Biz Word of the Day
Evaporative emissions are the result of gasoline vapors escaping from the vehicle's fuel system. In a typical system, vapors from the fuel tank and carburetor bowl vent (on carbureted vehicles) are ducted to canisters containing activated carbon. The vapors are adsorbed within the canister, and during certain engine operational modes fresh air is drawn through the canister, pulling the vapor into the engine, where it burns.
Executive Editor: Sonia YU
Editor: LI Yanxia
Host: Stephanie LI
Writer: Stephanie LI
Sound Editor: Stephanie LI
Graphic Designer: ZHENG Wenjing, LIAO Yuanni
Produced by 21st Century Business Herald Dept. of Overseas News.
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