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China

Investment Opportunities in China’s Emerging Low-Altitude Economy: Futuristic Industries

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Chinese policymakers identified priorities for 2024 economic work at the annual Central Economic Work Conference, focusing on the low-altitude economy and strategic emerging sectors such as bio-manufacturing and commercial aerospace innovation. This includes activities in low-altitude airspace, such as passenger transport, cargo delivery, and integrated services.


During the annual Central Economic Work Conference, which concluded on December 18, 2023, Chinese policymakers outlined priorities for 2024 economic work. The meeting identified the low-altitude economy as a strategic emerging sector, alongside key industries such as bio-manufacturing and commercial aerospace innovation.

The term “low-altitude economy” refers to a spectrum of economic activities occurring within low altitude airspace, defined as the space 1,000 meters above ground. This includes various activities and industries centered around civil-manned and unmanned aerial vehicles, such as passenger transport, cargo delivery, manufacturing, low-altitude flight operations, and integrated services.

This article is republished from China Briefing. Read the rest of the original article.

China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.

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Economic Update: Consumption and Trade in China See Strong Recovery Despite Decrease in Industrial Output by May 2024

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Industrial output growth in China has slowed, with robust performance in some manufacturing sectors but an increase in consumption driven by services, retail sales, and imports. Despite a slowdown, equipment manufacturing has been crucial in stabilizing overall industrial growth. Certain high-tech and electronic equipment manufacturing sectors have shown strong performance, while the automobile manufacturing sector has decelerated due to falling domestic demand.


The data indicates a slowdown in industrial output growth, despite some manufacturing sectors still showing robust performance. In contrast, consumption is on the rise, driven by growth in services, retail sales, and imports. The uptick in these areas suggests a strengthening of domestic demand, spurred by a stabilizing global economic situation and the boost from the Labor Day Holiday at the beginning of May.

China’s foreign trade also continued to show marked improvement, reflecting the country’s strong export capabilities and increasing imports.

Year-on-year growth in China’s industrial sector slowed in May from the previous month but remained relatively strong. Total industrial value-added output grew by 5.6 percent year-on-year in May, a month-on-month increase of 0.3 percent but a deceleration from 6.7 percent year-on-year growth recorded in April. Value-added output of the manufacturing industry grew 6 percent year-on-year, a deceleration from the 7.5 percent year-on-year in April.

According to NBS spokesperson Liu Aihua, equipment manufacturing played a crucial role in stabilizing overall industrial growth. The sector’s added value increased by 7.5 percent from the previous year, contributing 2.6 percentage points to the growth of all industries above the designated size and accounting for 45.7 percent of the total growth. Within this sector:

Certain high-tech and electronic equipment manufacturing sectors exhibited particularly strong performance:

However, the automobile manufacturing sector decelerated significantly from a 16.3 percent year-on-year jump in April to 7.6 percent year-on-year growth in May, possibly due to falling domestic demand.

This article is republished from China Briefing. Read the rest of the original article.

China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.

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Outlook for China’s Wine Market: Current Trends and Opportunities

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China’s wine market faces challenges like declining consumption and imports, but remains resilient. Adapting to consumer preferences, focusing on quality and sustainability, and using digital platforms for sales are key strategies. Despite setbacks, the market is promising for foreign producers.


Despite challenges such as declining consumption and import figures, China’s wine market remains resilient and promising. Strategic adaptation to evolving consumer preferences, emphasis on quality and sustainability, and leveraging digital platforms for sales are pivotal strategies for success in this dynamic and competitive landscape.

In recent years, China’s wine market has faced significant challenges marked by declines in key metrics such as consumption, imports, and domestic production. These difficulties were further compounded by the disruptions brought about by the COVID-19 pandemic. Despite these setbacks, the market retains its allure, presenting opportunities for foreign wine producers and exporters who are willing to adapt and strategically engage.

As consumer preferences evolve and government policies increasingly emphasize quality and sustainability, understanding these complexities becomes crucial for stakeholders navigating China’s evolving wine landscape. By staying attuned to shifting trends and regulatory developments, stakeholders can position themselves effectively to capitalize on the market’s enduring potential.

The wine sector in China has experienced dramatic shifts over the last two decades, initially reflecting rapid growth and then gradually declining. In the early 2000s, China emerged as a lucrative market for global wineries seeking expansion due to soaring wine imports driven by rising consumer wealth and the perception of wine as a symbol of sophistication. However, per capita consumption peaked around 2012, and imports have since plateaued, with recent years showing significant market contraction. The COVID-19 pandemic exacerbated these challenges, particularly affecting wine sales due to its association with social gatherings, which were restricted during lockdowns.

Following this trend, in 2023, China saw a significant decline in wine consumption, with a 24.7 percent decrease compared to 2022. According to the International Organization of Vine and Wine (OIV), China’s wine consumption has been falling since 2018, averaging a loss of 2 million hectoliters annually.

Nevertheless, China remains the ninth-largest wine-consuming nation worldwide.

Looking forward to 2024, China’s wine market is poised for dynamic activity, delineated primarily by consumption settings: at-home and out-of-home. According to Statista, revenue from wine sales in supermarkets and convenience stores (at-home) is forecast to reach US$9.7 billion. In contrast, revenue generated from wine consumed in restaurants and bars (out-of-home) is expected to be substantially higher, totaling US$17.2 billion. This projects the total revenue from the wine market to reach US$26.8 billion by the end of 2024.

This article is republished from China Briefing. Read the rest of the original article.

China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.

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Insights and Impact of China’s National Financing Credit Service Platform

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China introduced the National Financing Credit Service Platform to improve financing opportunities for private enterprises. Efforts include streamlining platform development, enhancing credit data mechanisms, and prioritizing high-quality services for all enterprises, especially small and medium-sized ones. The platform aims to increase credit availability and reduce costs for private enterprises.


On January 2, 2024, the National Development and Reform Commission (NDRC) organized a significant conference in Jinjiang City, Fujian, emphasizing innovative development for high-quality growth in the private economy. During this event, the ‘National Financing Credit Service Platform’ was introduced—a nationwide digital infrastructure designed to improve financing opportunities for private enterprises.

Subsequently, on April 2, 2024, the General Office of the State Council unveiled a comprehensive action plan aimed at strengthening financing credit service platforms. The plan focuses on facilitating financing for micro, small, and medium-sized enterprises (MSMEs). Key strategies include streamlining platform development, enhancing credit data mechanisms, and encouraging financial institutions to prioritize high-quality services for all enterprises, with particular attention to MSMEs.

Historically, MSMEs and private businesses have encountered significant challenges in accessing affordable financing. These entities, especially those in the startup or growth phase, often struggle to secure bank loans due to their lack of collateral and credit data. Financial institutions that provide credit services rely on scattered and hard-to-obtain credit information, which limits their ability to assess the creditworthiness of these enterprises and extend loans.

To address this issue, China established the National Financing Credit Service Platform. This platform offers four key services:

Meanwhile, China aims to optimize its national integrated financing credit service platform network in several ways. Efforts include improving information collection and sharing platforms nationwide, integrating the national financial credit database, streamlining redundant local platforms by the end of 2024, and expanding information collection to cover major enterprise personnel, qualifications, and trade activities. Local platforms are also encouraged to develop specialized modules for emerging industries, green development, key industrial and supply chains, and agricultural sectors.

Currently, the National Financing Credit Service Platform has fostered a new inclusive finance model based on credit information. It provides comprehensive financing services for small and medium-sized enterprises, especially private ones. Going forward, the platform aims to strengthen financial support for private enterprise development by enhancing efficiency through credit information sharing and digital technology applications. This will increase credit availability, reduce costs, and broaden access for private enterprises.

This article is republished from China Briefing. Read the rest of the original article.

China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.

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