China Insights Weekly has once again brought a series of news stories that illustrate the dynamic development of China's economy and technology sector. Here is a selection of five key points from this week:
- Volkswagen and Xpeng extend cooperation to hybrid and petrol platforms
- Subway opens its 1,000th branch in China, targets 10,000
- China controls more than half of the world market for industrial robots
- Concert market in China has grown sevenfold in two years
- Launch of the 8th batch of satellites for China's Internet megaconstellation
Main News
Volkswagen and Xpeng extend alliance to combustion and hybrid platforms
Chinese carmaker Xpeng and German Volkswagen are extending their strategic cooperation beyond the field of electric vehicles. The new phase of the partnership involves the development of a shared architecture for combustion engine cars and plug-in hybrids. The two companies will work together to develop an E/E architecture that enables flexible deployment on different types of powertrains and accelerates the market entry of new models.
Subway celebrates 1000th branch in China, plans 10 times more
US sandwich chain Subway has opened its 1,000th restaurant in China and announced an ambitious plan to reach the border 10 000 branches. The pace of expansion is fastest outside the US and the company relies on strong local partners. In 2023, Subway entered into a 10-year franchise agreement with Tianyi Group to accelerate expansion.
China dominates 54 % of the global industrial robots market
Installations of industrial robots in China increased by 5 % and the country consolidated its position with more than half of the global market. While the US, Japan and the EU have seen a decline, China has expanded the use of robots, especially in the automotive and electronics industries. By 2024, China will have deployed 290,258 robotic units.
Fosun Pharma sells global rights to lung disease drug for $645 million
A subsidiary of Fosun Pharma has entered into an agreement to sell the global rights to an experimental drug for idiopathic pulmonary fibrosis to Cumberland Pharmaceuticals. The value of the contract is up to 645 million USD. The Chinese side retains exclusive rights for the Chinese market.
Chinese brands dominate the mobile market in India and Southeast Asia
Brands like Xiaomi, Vivo, Realme and Oppo dominate more than 70 % of the smartphone market in India and Southeast Asia. Chinese manufacturers benefit from affordability, customization to local demand and aggressive marketing. In India, Xiaomi has a market share of 18.3 %, and in Indonesia, Realme has as much as 19.9 %.
China's gig economy grows 7-fold in two years
From 2022 to 2024, live music and concert revenues in China have increased sevenfold. Growth is driven not only by the mega-concerts in Beijing and Shanghai, but also by regional cities. The concert economy has become a key segment of cultural consumption, boosting local hospitality and tourism revenues.
China launches 8th batch of satellites for internet megaconstellation
Long March 2C rocket with another batch of satellites of the project has been launched from Guangxi province Guowang. When completed, the Chinese megaconstellation is expected to read up to 13 000 satellitesto provide global broadband internet access. The project is seen as a response to the US Starlink.
World's first phased array CT scanner heads into clinical trials in Shanghai
Clinical trials to begin soon in Shanghai the first phased array CT scanner. The new technology will enable significantly sharper imaging with lower radiation dose. The scanner was developed by United Imaging Healthcare in collaboration with academic institutions.
China introduces new K visa for young scientists and engineers in STEM fields
New To the visa to attract foreign talent to China in the fields of science, technology, engineering and mathematics (STEM). Young professionals under the age of 40 will get fast-track entry and long-term residency opportunities for research and innovation.
Beijing hosts the World Humanoid Robot Games
A unique competition started in Beijing World Humanoid Robot Games, which is attended by more than 500 robots from 16 countries. The robots compete in running, climbing, playing musical instruments and data processing. The aim is to promote research in the field of servo robotics and artificial intelligence.
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