China
Examining China’s Export Boom: Analyzing the Mid-2024 Trade Growth
China’s exports grew by 6.9% in H1 2024 to RMB 12.13 trillion, driven by high-tech sectors like integrated circuits and automobiles. Despite geopolitical tensions and domestic pressures, trade with ASEAN and Latin America increased while trade with the EU, US, Japan, and Australia decreased. China’s trade surplus reached US$435 billion, highlighting its strong economic performance.
China’s export performance soared in H1 2024, climbing 6.9 percent to RMB 12.13 trillion (US$1.67 trillion). The surge was fueled by strong showings from high-tech sectors like integrated circuits and automobiles. Nevertheless, geopolitical tensions and domestic economic pressures will temper an optimistic outlook. Additionally, the trade landscape has shifted notably, with increased trade volumes with ASEAN and Latin America, while exports to the EU, the US, Japan, and Australia have decreased. In this article, we take a closer look at China’s H1 2024 trade expansion.
China’s foreign trade in the first half of 2024 reached US$2.98 trillion, a 2.9 percent increase year-on-year in dollar terms, generating a trade surplus of US$435 billion, up 8.6 percent year-on-year. In RMB terms, the trade expansion is even more substantial – at a 6.1 percent surge year-on-year. This growth highlights China’s robust performance amid a complex global trade landscape and accelerating economic momentum.
Exports played a crucial role in China’s trade expansion, totaling US$1.71 trillion, up 3.6 percent year-on-year. Key sectors driving export growth included electromechanical products, with integrated circuits and automobiles seeing impressive increases. Integrated circuit exports surged by 25.6 percent, while automotive exports rose by 22.2 percent, showcasing China’s rising position in high-tech and automotive markets.
Understanding these trends is essential for grasping the broader economic and trade dynamics, as well as the international reactions to China’s evolving trade policies. This article explores the factors behind China’s strong export growth, the key markets contributing to this performance, and the outlook for Chinese exports amid rising global economic tensions.
China’s export performance has been a subject of considerable interest and analysis, particularly given its impressive growth trajectory over recent years. Between 2019 and 2023, the value of China’s exports to the world rose by 35.2 percent, reaching a substantial US$3.38 trillion.
This upward trend extended into the first half of 2024, with exports increasing by 3.8 percent year-on-year in dollar terms, reaching a total of US$1.71 trillion. This period also saw China achieve a record monthly trade surplus of US$99 billion in June 2024, according to fDi Intelligence, underscoring its dominant position in global trade.
The table below represents the total trade breakdown of January to June 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.
Banking
HSBC to Scale Back China Credit Card Operations Amid Expansion Challenges – Reuters
HSBC is withdrawing from its China credit card business due to difficulties in expanding, marking a strategic retreat in a challenging market environment.
HSBC’s Strategy Shift in China
HSBC is scaling back its credit card operations in China, highlighting challenges the bank has faced in expanding its customer base. The competitive landscape, combined with changing consumer preferences, has made it increasingly difficult for the bank to maintain its position in this lucrative market.
Market Challenges Ahead
Recent reports indicate that HSBC is reassessing its strategy, focusing resources on other areas where it sees stronger growth potential. The decision to pull back reflects the broader difficulties foreign banks encounter when trying to penetrate China’s financial services sector.
Future Focus
As HSBC pivots away from its credit card business in China, it aims to concentrate on digital banking and wealth management services. This strategic shift underscores the bank’s commitment to adapting to the evolving landscape of financial services while ensuring long-term sustainability in the region.
Source : Exclusive: HSBC pulling back from China credit card business after struggling to expand – Reuters
China
Implications of Chinese Tech Companies’ Global Reach for AI Governance Worldwide
China is actively shaping global AI governance through participation in multilateral organizations and initiatives, while its technology companies increasingly influence the market, limiting the potential for international agreements.
China’s Role in Global AI Governance
China plays a vital role in the global governance of artificial intelligence (AI), with an increasing presence in multilateral organizations that set technical standards for this emerging technology. Chinese nationals are taking on significant roles, and the country is actively influencing AI-related initiatives within the United Nations. Additionally, China has been issuing high-level declarations outlining its vision for global AI governance.
Commercial Influence on AI Standards
While formal governance measures are important, China’s growing global market share in technology may have the most substantial impact on international AI governance. The widespread adoption of AI technologies by Chinese firms could shape and, in some cases, restrict the framework of international agreements governing these technologies. As Chinese technology companies expand, the proliferation of their AI applications may pose challenges for standardization.
Global AI Initiatives
China’s vibrant innovation ecosystem and government support for AI have propelled its tech companies to the forefront of international markets. In countries like Saudi Arabia and Uganda, firms such as SenseTime and Huawei are facilitating AI projects, including surveillance systems and smart city infrastructure. These partnerships deepen China’s global commercial reach and enhance its influence over AI development and training worldwide.
Source : What the commercial reach of Chinese technology companies might mean for global AI governance
Business
iClick Interactive Finalizes Strategic Divestment of China Marketing Business | ICLK Stock Update
iClick Interactive announced the completion of its disposal of demand side marketing solutions in mainland China, aiming to improve operational efficiency, liquidity, and profitability to enhance long-term shareholder value.
iClick Interactive Completes Business Disposal
HONG KONG, Nov. 27, 2024 /PRNewswire/ — iClick Interactive Asia Group Limited (NASDAQ: ICLK), a leading online marketing provider in Asia, has finalized the sale of its demand side marketing solutions business in mainland China. This move aligns with a share purchase agreement dated September 11, 2024, signaling a strategic shift for the company.
Enhancing Operational Efficiency
The company plans to enhance operational efficiencies and realign its focus to meet evolving market trends. These initiatives aim to boost liquidity and profitability, potentially increasing long-term shareholder value. iClick aims to leverage its strengths to drive business growth amidst dynamic industry conditions.
About iClick Interactive
Founded in 2009, iClick offers data-driven online marketing solutions across Asia, helping brands optimize performance throughout the consumer lifecycle. For further information, visit iClick’s investor relations. This release contains forward-looking statements about the company’s strategies and performance; actual outcomes may differ.
Source : iClick Interactive Completes Strategic China Marketing Business Divestment | ICLK Stock News
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