mercredi 30 avril 2025

China's Strategy to Counter Trump's Policies (2025)

 

1. Introduction: The Geopolitical Landscape



Since the Trump era (2017-2021), U.S.-China relations have deteriorated dramatically, marked by:

  • A trade war (tariffs on over $360 billion of Chinese goods)

  • Technology sanctions (against Huawei, SMIC, TikTok)

  • Strategic rivalry (military, diplomatic, and economic competition)

In 2024, with Trump’s potential return, China is preparing countermeasures. Here’s its game plan.


2. China’s 5-Pronged Strategy

1. Boosting Technological Self-Sufficiency

Goal: Reduce reliance on U.S. tech.

  • Massive investments in semiconductors ($230B planned by 2030)

  • Import substitution: Pushing local champions (Huawei, SMIC, Yangtze Memory)

  • Industrial espionage (FBI reports confirm China as the top IP thief)

2. Expanding Economic Alliances

Tactic: Bypass U.S. sanctions by strengthening ties elsewhere.

  • BRICS+ partnerships (Brazil, Russia, India, Iran, Egypt)

  • Deeper ASEAN integration (China’s #1 trade partner)

  • Belt and Road Initiative (BRI) expansion (securing supply chains)

3. Weaponizing the Yuan & Reducing Dollar Dependence

Moves:

  • Yuan internationalization (local currency deals with Russia, Saudi Arabia)

  • Dumping U.S. Treasuries (35% reduction since 2013)

  • Promoting digital yuan (to evade SWIFT sanctions)

4. Information Warfare & Global Influence

Methods:

  • Propaganda via CGTN & Confucius Institutes (soft power)

  • Cyberattacks & disinformation (Microsoft ranks China #2 after Russia)

  • Buying influence in Europe/Africa (funding pro-Beijing media, politicians)

5. Military Buildup & Deterrence

Key Actions:

  • Rapid military modernization (defense budget up 7% in 2024)

  • Hypersonic weapons development (successfully tested)

  • Taiwan intimidation (regular military drills near the island)


3. Scenarios if Trump Returns in 2025

🔴 Scenario 1: Trade War Escalation

  • Trump reimposes 60% tariffs on Chinese goods.

  • China’s response:

    • Embargo on rare earth minerals (controls 80% of global supply)

    • Retaliation against Apple, Tesla, Boeing

🔴 Scenario 2: Full Tech Decoupling

  • U.S. bans advanced chip sales (NVIDIA, ASML).

  • China’s countermove:

    • Sanctions on U.S. tech firms (Microsoft, Intel)

    • Boosts Huawei’s 7nm chip development

🔴 Scenario 3: Taiwan Crisis

  • Trump strengthens Taiwan ties (arms sales, official visits).

  • China’s reaction:

    • Partial naval blockade of Taiwan

    • Massive cyberattacks on Taiwan’s infrastructure


4. Weaknesses in China’s Strategy

  • Still reliant on foreign semiconductors (despite investments)

  • Risk of diplomatic isolation if too aggressive

  • Economic fragility (20% youth unemployment, property crisis)


5. Conclusion: Who Wins This Fight?


China has key advantages:
✅ Stronger economic growth (+5% in 2024)
✅ Economic leverage (rare earths, supply chain control)
✅ Growing Global South influence

But…
❌ U.S. still leads in tech & military power
❌ The West is rallying against China (EU, Japan, Australia)

Final Verdict:
China can’t outright "win" against the U.S., but it can make the conflict so costly that Trump is forced to negotiate. Expect a prolonged economic cold war, with cycles of tension and temporary truces.


💡 For Businesses:


  • Diversify supply chains (India, Vietnam, Mexico)

  • Prepare for a bifurcated world (two tech systems, two markets)

  • Monitor sanctions to avoid getting caught in the crossfire.

China is playing the long game, while Trump prefers shock tactics. The clash will be fierce. 

WeChat Pay Fees in China is changing

 

Chinese social media giant Tencent Holdings Ltd is slashing transaction fees by 10% for small and medium merchants using its WeChat payment system, the company said in a statement on Thursday.


The discounts will apply from September 1, 2021 and run until September 30, 2024, the company added.


In order to qualify for the discount, merchants must meet the classification standards for small and medium enterprises set by China's Ministry of Industry and Information Technology.



The company will also reduce fees on money withdrawals from users' bank accounts, according to the statement.


The policy follows similar moves by Chinese tech companies last week.


Here's a concise yet comprehensive overview covering WeChat's fees (personal & business), its core functions, and 2025 trends:


1. What is WeChat?

WeChat (微信) is China's "super app" by Tencent, combining:

  • Social media (Moments, messaging)

  • Payments (WeChat Pay, 1.3B+ users)

  • Mini-programs (light apps within WeChat)

  • Business tools (official accounts, ads)

  • Lifestyle services (food delivery, rides, gov't services)


2. WeChat Fees (2025)



A. Personal Users

FeatureFeeNotes
Wallet balance withdrawals0.1% fee (min ¥0.1)Free for transfers between users
Credit card payments0.6-1%Charged to merchants, not users
Red Packets (红包)FreeLimited to ¥200/packet

B. Businesses & Companies

ServiceFeeDetails
WeChat Pay merchant0.6-1% per transactionHigher for international cards
Official Account¥300/yearVerification required
Mini-ProgramFree to publishPaid developer tools (¥300+/year)
WeChat AdsCPC: ¥0.5-5
CPM: ¥20-100
Auction-based pricing
Cross-border payments1-3% + forex feeVaries by currency

Key Note: Fees can change based on industry (e.g., gaming pays higher rates).


3. WeChat Trends for 2025




A. Social-Commerce Evolution

  • Live shopping 2.0: AI-powered hosts, VR try-ons (Douyin rival).

  • Mini-program dominance: 70% of users spend 90+ mins/day in them.

B. AI Integration

  • Tencent’s Hunyuan AI: Chatbots for customer service/sales.

  • AI-generated content: Auto-create ads, product descriptions.

C. Global Expansion

  • WeChat "International Edition": Focused on SEA, Chinese diaspora.

  • Cross-border payment growth: Partnering with Alipay+ (50M+ int'l merchants).

D. Super App "OS" Model

  • Embedded services: Car rentals, healthcare, gov't IDs within WeChat.

  • Open API ecosystem: More third-party integrations.

E. Stricter Compliance

  • Data localization: Adhering to China’s new privacy laws.

  • KYC for payments: Facial verification mandatory.


4. Key Takeaways for Businesses

✅ Leverage mini-programs for low-cost sales funnels.
✅ Use AI tools to cut customer service costs.
✅ Budget for ads + 1% transaction fees in financial planning.
⚠️ Monitor policy changes (China’s tech regulations evolve fast).

WeChat remains China’s digital "Swiss Army knife"—indispensable for users and brands alike. Stay ahead by adopting its AI and commerce features early




Top reading of the week. 


https://forumgrad.com/how-to-start-and-grow-a-business-in-china-2022/

https://chinesetouristagency.com/why-brand-need-to-open-an-official-wechat-account/

https://www.beatsmonsterfrance.com/2022/03/how-to-start-china-e-commerce-business.html



    mardi 29 avril 2025

    Top reading of the Week China Market newsletter

     top 3 breaking news stories from China this week, with key insights for global observers:




    1. China's Economy Shows Mixed Signals Amid Deflation Fears

    • Latest Data: July CPI fell -0.3% (first deflation since 2021), while exports plunged -14.5% YoY

    • Why It Matters:
      ✓ Confirms weakening domestic demand despite stimulus efforts
      ✓ Heightens pressure for stronger economic interventions
      ✓ Global markets watch for potential yuan devaluation moves

    2. U.S.-China Tech War Escalates: New Chip Export Controls

    • Developments: Biden administration plans new restrictions on AI chip exports (targeting Nvidia's A800/H800)

    • China's Response:
      ✓ Accelerating $150B semiconductor self-sufficiency plan
      ✓ Testing local AI chips (e.g., Huawei's Ascend 910B) as replacements

    • Impact: Could delay China's AI ambitions by 2-3 years, per analysts

    3. Diplomatic Storm Over Taiwan Ahead of 2024 Elections

    • Current Crisis: China conducts live-fire drills after Taiwan VP's U.S. transit stop

    • Strategic Implications:
      ✓ Tests U.S. "strategic ambiguity" policy
      ✓ Raises risk of accidental conflict (60+ PLA warplanes near ADIZ this week)
      ✓ Taiwan's January elections could trigger bigger crisis

    Bonus Trend: Youth unemployment hits record 21.3% - government suspends official data publication, signaling deeper labor market troubles.

    For business leaders: Monitor China's August policy response - expected stimulus could create short-term opportunities in infrastructure/tech sectors despite long-term decoupling trends.

      China has key advantages:


      ✅ Stronger economic growth (+5% in 2024)
      ✅ Economic leverage (rare earths, supply chain control)
      ✅ Growing Global South influence

      But…
      ❌ U.S. still leads in tech & military power
      ❌ The West is rallying against China (EU, Japan, Australia)

      Final Verdict:
      China can’t outright "win" against the U.S., but it can make the conflict so costly that Trump is forced to negotiate. Expect a prolonged economic cold war, with cycles of tension and temporary truces.

      lundi 28 avril 2025

      Fashion Trends in China 2025

       Kids’ Fashion in China

      The Chinese fashion market for kids is huge. There are a lot of different brands, colors, and styles to choose from. The prices are also very reasonable, especially for younger children.


      One of the best things about Chinese fashion for kids is that there are so many different brands to choose from. You can find everything from stylish high-street stores to more unique and niche brands which cater specifically to children’s interests and needs.


      And even if you can’t find what you’re looking for in traditional stores, there are always online shops where you can purchase clothes directly from the manufacturer. This can be a great way to get hold of unique and hard-to-find clothing items without having to go through the hassle of travelling to China or dealing with complicated customs procedures.


      China: Your Fashion Store on KOL

      When it comes to selling fashion, China is one of the biggest markets in the world. If you’re looking to get your fashion store off the ground in China, there are a few things you need to know. Here are a few tips for promoting your store on KOL:

      1. Join the KOL community and start posting regularly. This is one of the best ways to get noticed by potential customers and create lasting relationships with them. You can also use KOL as a way to showcase your latest arrivals and promote offers and discounts.


      Top 5 Fashion App in China

      There are many fashion app in China, but here are five of the most popular ones.

      1. Zalando

      Zalando is a German online retailer with a massive presence in China. The app offers a wide range of products from high-end brands like Dior and Saint Laurent to more affordable options from Aritzia, Uniqlo, and H&M. It features an easy shopping experience with filters for size, color, and brand. You can also place orders directly from the app and check out instantly with secure checkout.

      https://asiapro-distribution.com/7-mistakes-brands-do-when-dealing-with-chinese-distributors/

      Understand the Differences Between Chinese and Western Distributors

      There are a few key differences between Chinese and Western distributors when it comes to business.

      Chinese distributors tend to be more focused on long-term relationships with their customers. This means that they are often more dedicated to offering quality products and services, than chasing after quick profits.


      Western distributors, by contrast, are often more oriented towards making quick profits and expanding their businesses as quickly as possible. This can lead to some tense relationships with their customers, who may feel that the distributor is not giving them the attention or support they need.





      jeudi 23 mai 2024

      Overview of Overseas Real Estate Investment from China


      Overseas real estate investment has long been a preferred strategy for Chinese investors looking to diversify their portfolios, in 2024,  hedge against domestic market volatility, and gain from international markets. While the landscape has experienced fluctuations due to global economic shifts and evolving regulatory frameworks, certain countries continue to attract significant Chinese investment in their real estate sectors.

      Current Situation in China 


      The Chinese government has implemented stricter capital controls over the past few years to stabilize the domestic currency and reduce capital outflow pressures. These measures have somewhat tempered the volume of overseas real estate investments. However, Chinese investors remain influential in several global markets, often focusing on commercial and residential properties that promise high returns and stability.

      Economic factors in China, such as the cooling of the domestic real estate market, have also driven investors to seek opportunities abroad. Moreover, the desire for asset diversification, migration, education abroad for children, and lifestyle considerations continue to fuel interest in overseas property investments.

      Top Countries for Chinese Real Estate Investment


      United States

      The U.S. remains a top destination for Chinese real estate investors. Key attractions include stable returns, a strong legal system, and high-quality educational institutions. Major cities such as Los Angeles, New York City, and San Francisco are particularly popular, although there is growing interest in secondary cities due to lower entry costs and higher potential yields.
      Australia

      Australia has been a favored destination for Chinese investors due to its proximity to China, quality of life, and robust legal protections for property owners. Sydney, Melbourne, and Brisbane are the most targeted cities. Although regulatory changes have imposed additional taxes and stricter lending conditions on foreign investors, the demand remains strong.



      Canada

      Canada is highly regarded for its stable economy, quality of life, and strong property rights. Vancouver and Toronto are the primary focuses for Chinese investors. However, similar to Australia, Canada has introduced measures like foreign buyer taxes to cool overheated markets, particularly in Vancouver.


      The UK, particularly London, has historically been attractive to Chinese property investors. The market's transparency, high rental yields, and the UK's status as a financial hub continue to draw investors. Post-Brexit currency fluctuations have also created buying opportunities.
      Southeast Asia

      Countries like Thailand, Vietnam, and Malaysia are increasingly popular among Chinese investors due to their growing economies, affordable property prices, and welcoming policies for foreign buyers. Bangkok, Ho Chi Minh City, and Kuala Lumpur are key cities of interest.


      As the largest economy in Europe, Germany attracts Chinese investment primarily in the commercial real estate sector. Cities like Berlin, Frankfurt, and Munich are popular due to their economic stability and strong growth prospects.
      Challenges and Opportunities
      While opportunities abound, challenges such as political uncertainty, foreign investment restrictions, and economic instability in some regions can affect the viability of overseas investments. Additionally, the ongoing global economic shifts due to trade tensions and the COVID-19 pandemic's aftermath continue to reshape investment strategies.

      In conclusion, despite some regulatory and economic hurdles, overseas real estate investment remains an integral part of the portfolio for many Chinese investors. The focus continues to be on markets that offer a combination of economic stability, strong yields, and lifestyle benefits. As global conditions evolve, so too will the strategies of Chinese real estate investors.

       

       Expanded Overview of Overseas Real Estate Investment from China: Focus on Dubai and Mauritius, Investor Types, and Leading Company
      Chinese investors continue to expand their global real estate portfolio, venturing into diverse markets that offer unique benefits. The addition of destinations like Dubai and Mauritius reflects a strategic choice due to their investment-friendly climates and high growth potential. Furthermore, understanding the variety of investor types and the leading companies in this sector provides a deeper insight into Chinese overseas real estate investments.




      Dubai and Mauritius as Emerging Investment Destinations

       

      Dubai

      Dubai is increasingly appealing to Chinese investors due to its tax-free environment, high rental yields, and ambitious infrastructure projects. The city's strategic location as a global business hub and its luxurious lifestyle are significant draws. Initiatives like long-term visas for investors and relaxed ownership laws have further boosted Chinese interest in Dubai's real estate market.


      Mauritius

      Mauritius attracts Chinese investment with its stable political environment, favorable tax regime, and strategic location as a gateway to Africa. The government's initiatives, such as the Property Development Scheme (PDS), allow non-citizens to buy property and obtain residency, enhancing its attractiveness. The island's luxury real estate market, appealing to retirees and investors seeking a peaceful lifestyle, has seen considerable growth in Chinese investment explained Keiza immobilier



      Types of Chinese Real Estate Investors


      Institutional Investors: These include insurance companies, investment funds, and state-owned enterprises looking for large-scale investments to diversify assets and manage large funds' stability.

      Private Equity Firms: They focus on high returns through direct investments or real estate funds, often engaging in more speculative ventures compared to institutional investors.

      Real Estate Developers: These companies or individuals purchase land or properties to develop and then sell at a profit, often focusing on luxury or large-scale projects.

      Individual Investors: Personal investors typically look for residential properties abroad either for personal use — such as for education or immigration purposes — or as rental investments.

      Leading Company: China Vanke Co., Ltd.


      China Vanke Co., Ltd., often simply known as Vanke, is one of the largest real estate companies in China and a major player in the global real estate market. Founded in 1984, Vanke has expanded its operations beyond China, with significant investments in real estate projects around the world, including in the United States, Hong Kong, and the United Kingdom.

      Vanke's overseas strategy focuses on developing residential, commercial, and mixed-use projects, often in partnership with local developers to leverage their market knowledge and expertise. The company's approach is characterized by a commitment to quality, sustainability, and community-oriented developments, aligning with global trends towards green building and environmentally friendly practices.


      Chinese overseas real estate investment is characterized by a diverse array of destinations, investor types, and leading companies like Vanke, driving forward the industry. As markets like Dubai and Mauritius continue to offer favorable conditions, and as the types of investors diversify their strategies, the landscape of Chinese overseas real estate investment is set to evolve, reflecting broader economic trends and the shifting dynamics of global real estate. read more 









       

      vendredi 15 septembre 2023

      Fashion, Cosmetics, and the New Age of Advertising in China

       

      Look at this video first to understand your challenges hehe. 




      China, with its dynamic economy and evolving consumer base, has long been recognized as a powerhouse in the global fashion and cosmetics industry. As its middle class grows, so does its appetite for luxury, trends, and new-age beauty products. However, what truly sets China apart in recent years is its transformative advertising landscape, shaped by technology, culture, and a new generation of consumers. In this blog post, we'll delve into the current state of fashion and cosmetics consumption in China and explore the emerging advertising trends that brands must be aware of.


      A New Era for Fashion and Cosmetics in China


      The Chinese consumer has come a long way. Gone are the days when Western brands could easily dominate the market with their global reputation alone. Today’s consumers, especially the younger generation, are well-traveled, digitally savvy, and highly discerning.

      Local is the New Global: While international brands like Chanel and Estée Lauder still hold considerable sway, local brands are rapidly gaining traction. Companies like Perfect Diary and Li Ning are resonating with Chinese consumers through their deep understanding of local culture, values, and aesthetics.


      Digital Transformation: The e-commerce boom has revolutionized how consumers discover, evaluate, and purchase products. Platforms like Tmall, JD.com, and Xiaohongshu (Red) have become the new hubs for fashion and cosmetics enthusiasts.

      Personalization 

      Personalization Over Mass Production: There’s a growing demand for personalized products, where consumers want items tailored to their unique preferences and skin types.

      Trends in MARKETING: Navigating the Digital Landscape


      With the rise of digital platforms, advertising in China has taken on a new dimension. Brands are now realizing that traditional methods may not suffice in capturing the attention of the modern Chinese consumer.


      Influencer Collaboration: headack I know 

      Key Opinion Leaders (KOLs) play a pivotal role in shaping purchasing decisions. Their vast following, combined with a trusted voice, makes them invaluable assets for brands looking to expand their reach.


      Interactive Campaigns: Livestreaming has emerged as a popular advertising trend. From product launches to fashion shows, brands are engaging consumers in real-time, offering a more immersive shopping experience.


      Localized Storytelling

      Localized Storytelling: More than ever, brands are focusing on crafting narratives that resonate with the Chinese culture and values. This could be through festivals, historical tales, or modern-day success stories.


      Data-driven Decisions: The digital age has made it easier for brands to access consumer data. This data is instrumental in understanding consumer behavior, preferences, and creating targeted ad campaigns.


      Social Commerce: Social media platforms, especially WeChat and Xiaohongshu, are blurring the lines between socializing and shopping. Brands are integrating shopping features within these platforms, making it seamless for consumers to browse and purchase.

      Challenges Ahead: Finding the Right Balance for Brands


      Commlicated I know 


      While opportunities abound, brands must also be aware of potential pitfalls. The Chinese market, with its diverse consumer base and regional nuances, can be complex to navigate.


      Cultural Sensitivity: Brands must be cautious and respectful of local sentiments. Any misstep, especially those perceived as cultural insensitivity, can lead to backlash and loss of trust.


      Over-reliance on Digital: While digital is dominant, offline experiences, such as pop-up stores and experiential events, still have their place in the consumer journey.


      Sustainability Concerns: The modern Chinese consumer is becoming increasingly eco-conscious. Brands need to address sustainability, both in their products and their advertising narratives.


      In Conclusion from your Blog 


      China's fashion and cosmetics market is a goldmine of opportunities, but it requires a nuanced approach. With the right balance of cultural understanding, digital innovation, and authentic storytelling, brands can thrive in this vibrant landscape. The key lies in listening to the consumer, adapting to the ever-changing trends, and staying true to one's brand essence.


      Further readings 





      vendredi 30 juin 2023

      Australian Brands in China: Strides, Strategies, and Success Stories



      In 2023, Australian brands have established a strong presence in China, marking a significant milestone in Australia's economic and trade relations with the country. These brands span various sectors, including food and beverages, fashion, beauty, health, and education, each carving out a unique position in the vast and diverse Chinese market. This essay will explore the trajectory of Australian brands in China, their marketing and growth strategies, and notable success stories.

      Asutralia China's burgeoning middle class

      The initial interest in Australian brands in China can be traced back to China's burgeoning middle class, which sought out quality and safety in overseas products following a series of food safety scandals in China. Australian products, renowned for their high quality and strict safety standards, quickly became popular, particularly in the food and beverage sector. Brands such as Penfolds and Jacob's Creek in the wine industry, A2 Milk and Bellamy's in the dairy sector, and Swisse and Blackmores in vitamins and health supplements capitalized on this demand.


      Zimmerman, Sass & Bide, and RM Williams,

      However, beyond food and beverages, other Australian brands in fashion, beauty, and education have also made their mark in China. Fashion labels like Zimmerman, Sass & Bide, and RM Williams, beauty brands such as Jurlique and Aesop, and educational institutions including the University of Melbourne and University of Sydney have all developed strong followings in China.


      Crucial to the success of these Australian brands has been their ability to understand and navigate the unique aspects of the Chinese market. Digital marketing strategies, in particular, have played a pivotal role. Given the predominance of ecommerce and social media in China, Australian brands have had to embrace platforms like Alibaba's Tmall and Taobao, JD.com, and social media sites such as WeChat and Weibo. Live-streaming sales, collaborations with local influencers or Key Opinion Leaders (KOLs), and participation in shopping festivals like Singles' Day have become key promotional strategies.


      One successful example is Swisse, a leading Australian wellness brand. Leveraging local celebrity ambassadors and participating in reality TV shows, Swisse was able to raise its profile and drive sales in China. Similarly, A2 Milk capitalized on China's demand for safe and quality baby formula, building trust through strict control over its supply chain and robust offline and online marketing campaigns.


      Localization has also been a significant factor in the success of Australian brands. This includes not just language localization but also understanding local tastes, preferences, and cultural nuances. For instance, in the fashion sector, Australian brands have made efforts to release China-exclusive collections or incorporate Chinese elements into their designs during important festivals.


      Sustainability, a cornerstone of many Australian brands, has also found resonance with Chinese consumers. With growing environmental awareness in China, Australian brands known for their sustainable and ethical practices have gained traction. For instance, Aesop's focus on sustainable and natural ingredients in its skincare products has been well-received.

       Navigating China's complex regulatory environment

      Building and maintaining government relationships is another critical aspect of Australian brands' China strategy. Navigating China's complex regulatory environment requires a thorough understanding of local laws and regulations, and having strong government relations can often facilitate this process. Furthermore, government support can also help in dispute resolution and crisis management, adding an extra layer of security for Australian businesses operating in China.


      https://www.youtube.com/watch?v=TWeP92Jo5gU

      significant challenges

      Despite the successes, Australian brands in China also face significant challenges. These include intense competition, both from international and increasingly sophisticated local brands, complex regulations, and geopolitical tensions. Yet, many Australian brands have demonstrated resilience and adaptability in the face of these challenges.

      Growth, adaptation, and success

      Overall, the story of Australian brands in China is one of growth, adaptation, and success. With an astute understanding of the Chinese market, effective use of digital marketing platforms, localized strategies, a focus on sustainability, and strong government relations, Australian brands