CX Daily: China’s Generation Z Inspires Homegrown Beverage Makers To Take On Coca-Cola
Domestic brands /
In Depth: China’s Generation Z inspires homegrown beverage-makers to take on Coca-Cola
A shift in interest among China’s younger generation toward homegrown products and a desire to lead healthier lifestyles opened the door for more local brands to challenge big international names such as Coca-Cola and Starbucks, fueling investor interest in startups and inflating valuations.
The change is being driven by Generation Z, or those born in the late 1990s, who grew up during a period of unprecedented domestic economic growth and China’s rise to global prominence. This has instilled in them confidence, national pride and a sense of nostalgia for all things Chinese.
They are also digital natives and, since they account for roughly 15% of the population, represent the engine for growth of domestic consumer spending, according to McKinsey & Co. Inc.
Central China tourist hub linked to 11 new Covid cases across the country
Eleven people who tested positive for Covid-19 have all been linked to the same popular tourist destination in central Hunan province and have since traveled on to three major cities across the country, including Beijing.
Compounding the risk of further transmission, four of the 11 infected tourists traveling together from the northeast city of Dalian joined 5,000 others including those in the audience, performers and event staff at a live show on July 22 at a local theater in Wulinyuan, Zhangjiajie city, according to a statement released by local health authorities this week.
Zhang Wenhong: Will Nanjing’s outbreak grow out of control?
FINANCE & ECONOMY
China’s deleveraging gathers pace as debt-to-GDP ratio falls again
China’s total nonfinancial debt as a percentage of GDP declined for the third straight quarter, the first time that’s happened since the 2008 Global Financial Crisis, data published in a study by a state-backed think tank show.
China’s overall leverage ratio, which measures outstanding debt in the real economy against nominal GDP, fell to 265.4% at the end of June, 2.6 percentage points lower than at the end of March and 5.8 percentage points down from the record high of 271.2% at the end of September, according to a report (link in Chinese) released Friday by the National Institution for Finance and Development (NIFD).
Nevertheless, the report warned of the potential negative fallout from the reduction in the leverage ratio including a weakening of companies’ willingness to invest, a slowdown of the post-pandemic recovery in the economy and a greater risk of default among indebted local government financing vehicles.
Regulator fines banks $1.4 million for property loan violations
The Shanghai office of China’s top banking regulator slapped 9.1 million yuan ($1.4 million) of fines on banks for property loan violations as China continues to clean up irregularities in the real estate market.
Branches of the four biggest state-owned banks—Bank of China, China Construction Bank, Industrial and Commercial Bank of China, and Agricultural Bank of China—were penalized for issuing personal consumer loans and corporate business loans that were used in the property market, the Shanghai bureau of the China Banking and Insurance Regulatory Commission (CBIRC) said.
Southwest China city offers couples cash to have more children
A city of 1.2 million people in Southwest China’s Sichuan province became the first jurisdiction in China to offer a cash incentive to families to have two or three children after the country announced a third-child policy to boost population numbers.
Local authorities in Panzhihua said at a press conference Wednesday that families that give birth to a second or third child from June 12 will be granted a subsidy of 500 yuan ($77.40) per month until the child is age 3. This means that for each child, families will receive a total subsidy of 18,000 yuan.
China’s new ‘tough but wise’ envoy to Washington vows to put relations ‘back on track’
China’s new ambassador to the U.S., Qin Gang, a veteran diplomat with extensive experience in China-Europe relations and a trusted aide to President Xi Jinping on diplomatic protocols, vowed to “endeavor to bring China-U.S. relations back on track.”
In his remarks upon arrival, Qin said he will work to realize “mutual respect, equality, win-win cooperation and peaceful coexistence” between the two countries, which have been trying to reengage in recent months as tensions remain high over several issues including the South China Sea, Taiwan and Hong Kong.
Qin, 55, arrived in the U.S. on Wednesday local time, according to the Chinese embassy.
Quick hits /
China injects short-term cash after crackdowns spook markets
Analysis: What the deadly Zhengzhou floods teach us
BUSINESS & TECH
China’s state-run news agency Xinhua said in a commentary that new rules for tech companies and the private tutoring industry will benefit the long-term development of society. Photo: VCG
Tightening of tech, tutoring sector rules is not ‘suppression,’ state media says as shares tank
China’s official news service said tough new rules for tech companies and the private tutoring industry are meant to “ensure healthy development” of the sectors as it sought to address stock market volatility sparked by the recent crackdown.
The campaign, which at the weekend reached private tutoring enterprises with a ban on share sales, will benefit the long-term development of society and is not “suppression” the Xinhua News Agency said in a late night commentary Wednesday as Chinese stocks continued to take a battering.
The moves will protect data security and peoples’ livelihoods, it said.
China targets mobile pop-ups in latest tech crackdown
Chinese sellers cry politics in Amazon ban over fake reviews
Chinese cross-border sellers that use Amazon.com Inc. are up in arms after a crackdown on fake reviews resulted in hundreds being purged from the platform, with some blaming it on frosty U.S.-China relations.
Amazon put the purge down to improved detection of fake reviews. But a cross-border e-commerce industry group based in the commercial hub of Shenzhen complained to China’s Ministry of Commerce, alleging the crackdown could be politically motivated.
China’s TikTok denies facial scanning tech collects personal data
ByteDance Inc. denied that its Douyin app, the Chinese version of TikTok, uses facial scanning technology to access users’ personal information, saying the data it collects via the special effects function is inadequate to recognize a person’s identity.
When users select the short video app’s special effects features for use in their videos, it will not be uploaded to company servers, Yang Hui, a special effects expert at ByteDance told Caixin at a Wednesday event.
Huawei steers toward luxury EVs in deal with GAC’s Aion
Huawei Technologies Co. Ltd. signed a deal with a subsidiary of Guangzhou Automobile Group Co. Ltd. (GAC) to develop luxury autonomous vehicles, deepening its push into the car industry.
The Chinese technology giant will work with GAC’s electric vehicle (EV) marque Aion to create high-end self-driving cars for the consumer market by the end of 2023, GAC said in a statement (link in Chinese) Wednesday.
Quick hits /
Billionaire Sun Dawu sentenced to 18 years in jail
Northwestern city calls out Evergrande over unpaid land transfer dues
Xiaomi hires more self-driving experts to boost its smart-car ambitions
Hot Topics /
Nanjing outbreak spreads to six provinces, Adidas fined for fire violations, inhalation vaccine boosts immunity
Nanjing tackles Covid outbreak head on
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