The China Story at your Fingertips
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Introduction
Themed "Connecting the World for a Shared Future", the fourth China International Supply Chain Expo is scheduled to take place in Beijing from June 22 to 26.
During this year's expo, a special zone focused on artificial intelligence will be set up, showcasing the sector's ecosystem of data, computing power and applications.
China's 15th Five-Year Plan: Next leap for industrial system
By Song Yi

The 15th Five-Year Plan (2026-30) outlines the strategic near-future roadmap for China. This video focuses on China's plan for the industrial system and what it means for the global economy.

'Remarkable resilience' seen in China's exports
By Wang Keju
A containership docks at a port in Qingdao, Shandong province, on Thursday. YU FANGPING/FOR CHINA DAILY

China's export sector, driven by surging global demand for high-tech products, is expected to remain robust in the second half, which will provide strong support for the country's economic growth, senior economists said.

The recent thaw in trade relations between China and the United States could also help improve market expectations and reduce uncertainty over external demand in the months to come, they added.

China's export sector is displaying "remarkable resilience", driven by a global artificial intelligence investment boom and a sustained energy super-cycle, with Chinese firms well-positioned to capture growing global market share in relevant fields, said Robin Xing, chief China economist at Morgan Stanley.

Xing said global capital spending on AI hardware continues to expand, and Chinese firms have developed "core competitiveness" in printed circuit boards, optical components and memory chips, allowing them to share in the sector's upside.

China's integrated circuit exports have entered a phase of rising volumes and prices, with monthly export value growth exceeding 20 percent for 13 consecutive months as of April, said the China Chamber of Commerce for Import and Export of Machinery and Electronic Products.

Gao Shiwang, a spokesperson for the chamber, said that in the first four months, integrated circuit export volume rose 10.6 percent, while the value of exports jumped 78.3 percent. April alone saw a 92 percent year-on-year increase in export value.

"China's mature manufacturing and supply chain capabilities give it a unique position in the global AI hardware ecosystem. We are not only a major producer, but also a vital link in the value chain," Gao said.

On the energy front, Xing said large AI data centers require massive amounts of electricity, and China has taken "a leading position" in the global energy transition from wind and solar components to grid equipment and storage batteries.

The General Administration of Customs said exports of electric vehicles surged 68.1 percent year-on-year in the first four months, while lithium battery exports rose 43.2 percent and wind power generation equipment climbed 40.7 percent.

After weathering the COVID-19 pandemic, geopolitical conflicts, trade frictions and energy shocks, China's supply chain resilience has won global recognition, and global capital looking to invest in AI hardware and the energy transition would find it hard to bypass China, Xing added.

Guan Tao, global chief economist at BOCI China, said China's export strength, especially in high-tech sectors, will be a "key stabilizer for growth" in the second half.

Guan said robust exports are driving industrial production and manufacturing investment, while imported inflationary pressures are also helping to improve the country's price trajectory — factors that could push economic performance above expectations.

The easing of trade tensions between Beijing and Washington after US President Donald Trump paid a state visit to China in mid-May could also lower the uncertainty that weighed on China's export sector and US businesses alike, experts said.

"Cooperation with the US helps reduce external uncertainties for China, which greatly contributes to the stability of the Chinese economy," said Zhu Min, former deputy managing director of the International Monetary Fund.

"For the US, working with China is beneficial to its economic development and helps boost its demand. Especially in a year marked by so much uncertainty, we are introducing a factor of certainty, which carries great significance," Zhu said.

However, Guan from BOCI China warned of the external uncertainty still remaining in the second half due to situations in the Middle East.

"Currently, the Middle East is in a state of neither war nor peace," Guan said. "If the conflict escalates or the blockade of the Strait of Hormuz is prolonged, the resulting energy supply disruptions and international logistics blockages will have an increasingly severe impact on the global economy and trade."

"If the global economy falls into recession, China will not be immune," he added.

Optimizing AI for real-world scenarios
A visitor photographs a live-line operation robot at China Southern Power Grid's stand during the 2025 World AI Conference in Shanghai on July 28. CHEN HAOMING/XINHUA

BEIJING — Chinese artificial intelligence researchers have released an open-source framework and a real-world scenario competition platform that significantly improves AI industrial application.

As AI computing power grows stronger and large language models become increasingly sophisticated, Chinese researchers have been focused on how best to apply the fast-growing technology to real-world scenarios.

To this end, a research initiative at the artificial intelligence innovation center at the Yangtze Delta Region Institute of Tsinghua University standardized human-machine interactions, task-set mechanisms and human feedback systems, resulting in enhanced industrial application efficiency and greater enterprise deployment.

The team leader said that the global AI sector currently faces a structural contradiction: the exponential growth of model and tool capabilities versus the linear climb in industrial adoption rates. The core contradiction in AI development has shifted from "enhancing model intelligence" to "bridging the deployment gap".

To address the gap between AI capabilities and real-world deployment, the team released the Real World AI open-source framework, expanding the scope of open-source efforts from code and tools to encompass role definitions, workflow design, human-machine interaction and human-human collaboration as an integrated practice.

The framework reconstructs the interaction between AI and humans in real-world tasks through three core elements: restoring real-world task sets, capturing authentic human feedback from real interactions and standardizing human-machine interaction protocols.

A staff member demonstrates how a robot can be controlled remotely at a mock power grid control unit at a lab of Guangdong Power Grid Co in Guangzhou, Guangdong province, on April 16. ANDY WONG/AP

The team said real-world tests have proven that RWAI outperforms traditional software development models in practical efficiency, actual effectiveness and resolution times, reducing pre-project validation timelines from two-to-three months to less than two weeks.

The team also launched its AI arena platform. Unlike traditional benchmarks or model leader boards, the platform focuses on evaluating the actual effectiveness of AI solutions in real business operations, including metrics such as organizational costs, time efficiency, computing costs and compliance requirements.

The platform adopts a "challenger-champion" mechanism, where competing entities are not single models, but complete solutions, encompassing team configurations, workflows, agent combinations and context engineering. The best-practice workflows corresponding to winning solutions will be made public and available for replication.

China Southern Power Grid's internet service subsidiary utilized the RWAI platform to address the end-to-end safety management challenges of power grid infrastructure projects, ranging from planning to on-site execution. Faced with complex compliance requirements, traditional manual supervision on infrastructure projects had reached an efficiency bottleneck.

Using the platform, the company developed an intelligent risk control solution for on-site and subcontractor management, increasing hidden risk detection rates by approximately 40 percent and boosting risk warning accuracy to 92 percent. The company and research team are now preparing to advance a demonstration project for generative AI across the full lifecycle of construction planning.

The company's senior engineer Hu Rui said the RWAI platform has successfully bridged the gap between AI technology and deployment, while significantly reducing trial-and-error costs. The system has transformed engineering management from reactive response to proactive intelligent control, using AI to support high-quality power grid construction.

Jiangsu Eastern Shenghong has also used the RWAI platform. As a petrochemical manufacturer, it has long-faced challenges such as integrating knowledge in traditional process industries, applying general-purpose AI to core business operations and a lack of controllability in decisionmaking by large language models.

Leveraging the RWAI platform, Eastern Shenghong integrated 30 years of production process knowledge with data from the full industry chain, overcoming the high-compliance barriers to build an industrial large model that truly understands the business.

Through multimodal fault monitoring and prediction, the company has significantly reduced unplanned downtime on key production lines and can dynamically recommend optimal production scheduling, achieving cost reductions, efficiency improvements and process optimization.

Yang Tianwei, vice-chairman of the company and general manager of its AI business unit, said that by using the RWAI platform's evaluation capabilities, they have transformed internally validated, high-quality model capabilities into a library of reusable, billable and composable products.

"This not only activates Eastern Shenghong's own intelligent development, but also provides a field-proven and best-practice solution for deploying large models in the process industries," Yang added.

The RWAI platform now covers multiple application scenarios including industrial forecasting systems, document review, risk control and research report generation. Its implementations have already been deployed in projects for some Fortune Global 500 companies.

The research team said that the platform will also supply real-world human-computer interaction data to support large language model development and academic research.

XINHUA

Electric three-wheelers gaining traction overseas
By ZHONG NAN
A worker drives a newly assembled electric three-wheeler off the production line at a factory in Xuzhou, Jiangsu province, on Oct 16. MAO JUN/XINHUA

At a workshop owned by Jiangsu Zhufeng Electromechanical Technology Co in Xuzhou, Jiangsu province, a buyer evaluated an electric three-wheeler model destined for Indonesia, discussing modifications with engineers, who took detailed notes on the customer's requirements.

As concerns over fuel costs and energy security grow globally, China's electric three-wheelers, widely used to transport people and goods, have seen a surge in demand in overseas markets in recent months.

Jiangsu Zhufeng Electromechanical Technology Co produced nearly 30,000 units in 2025, with exports mainly destined for the United States, Turkiye, Cambodia and Indonesia. With its products having entered Brunei, Vietnam and Laos this year, the company expects its annual production to surpass 50,000 units.

From January to April this year, exports of electric three-wheelers from Xuzhou reached 168 million yuan ($24.8 million), up 87.1 percent year-on-year, while exports of related parts and components totaled 115 million yuan, an increase of 29.6 percent from a year earlier, according to data from Xuzhou Customs.

Dai Hui, deputy head of Xuzhou Customs, said that three-wheelers made in Xuzhou have reached more than 130 countries and regions.

"In addition to emerging markets, the next frontier is North America, Western Europe and Northern Europe, where exporters are stepping up efforts to expand their presence," Dai said.

Ni Xiaofeng, president of Jiangsu Guowei Motorcycle Co, another three-wheeler manufacturer based in Wuxi, Jiangsu, said the growing appeal of low-cost, energy-efficient transportation solutions, coupled with stricter environmental regulations and efforts to reduce reliance on fossil fuels, have further boosted demand for Chinese three-wheelers in overseas markets.

"A standard electric three-wheeler and similar models typically sell for $3,000 to $6,000 in European and North American markets," he said.

Li Chengyun, head of the technical unit of Xuzhou Zhibo Locomotive Co in Xuzhou, said most electric three-wheelers on the market offer a driving range of 80 to 100 kilometers with standard lithium batteries. For an additional cost, customers can choose larger battery packs, which increase the range to as much as 180 to 220 kilometers.

"More overseas customers are demanding higher power output, prompting us to equip vehicles with larger motors," Li said. "Buyers are also requesting larger and wider tires and wheel rims, leading the company to adopt aluminum alloy wheels to better meet customers' specifications."

Zhang Hui, president of Xuzhou Zhibo Locomotive Co, said that in the long run, concerns over fuel supply disruptions and the search for affordable transportation alternatives will continue to drive the global adoption of electric three-wheelers.

Beyond traditional cargo and passenger-carrying three-wheelers, manufacturers are increasingly branching into specialty and recreational vehicles to diversify their product offerings.

He Shan, sales director at Jiangsu Shanming Shuixiu Environmental Protection Technology Co in Xuzhou, said the company's business originally focused on manufacturing cargo three-wheelers, but shifted toward developing and exporting specialty vehicles such as road sweepers after spotting growing demand in niche markets.

"We are rolling out upgraded models that can sweep streets, wash surfaces, spray water mist and suppress dust. A single sweeper can do the work of more than a dozen people," He said.

Household-use three-wheelers, passenger shuttles and leisure vehicles designed for tourist attractions and golf courses have become key growth segments for many traditional electric three-wheeler manufacturers, said Chen Bin, deputy director of the expert committee of the Beijing-based China Machinery Industry Federation.

Chen said the growing popularity of electric three-wheelers reflects a broader shift toward affordable, energy-efficient mobility solutions, creating new opportunities for Chinese manufacturers in global markets.

Hainan tropical island hub for global investment
By MA SI and CHEN BOWEN in Haikou
A visitor walks through the international healthcare consumption section of the sixth China International Consumer Products Expo in Qionghai, Hainan province, on April 16. GAO JING/XINHUA

For Michael Heilig, who is from Germany's federal association for small and medium-sized enterprises, his trip to Hainan province last week felt almost destined.

His Chinese name, "Hai Li Ge", carries a special meaning. "Hai" means sea, "Li" means reason and trust, while "Ge" means character and taste. "I believe these qualities — facing the sea, rationality, character — can be transported to Hainan and reflected in our cooperation," Heilig said.

Heilig was one of more than 100 executives from 19 countries and regions who landed in Hainan on May 25-26 for the International Life and Health Enterprises Hainan Visit event, co-hosted by CITIC Group and the Hainan provincial government. Among them were 80 foreign life-health companies and 105 senior executives from global giants such as Siemens, Pfizer and Novo Nordisk, as well as a host of German "hidden champions".

What brought them here, in the heat of late May, was not the island's famous beaches, though those were a welcome bonus, but the accelerating dividends of the island-wide special customs operations, which kicked off in Hainan Free Trade Port on Dec 18.

For Heilig, the most eye-catching policy is the 30-percent value-added processing rule. "German SMEs are often called 'hidden champions'. The policy we learned about today — 30 percent value-added processing in Hainan allowing tariff-free access to China's mainland — is particularly innovative and appealing," he said.

"Given Hainan's strategic location, it can connect to the huge Chinese mainland market as well as the broader Asia-Pacific and Southeast Asia. This will be very important for German SMEs as they restructure their supply chains under the current economic situation," Heilig added.

More than 20 European companies accompanied Heilig on the trip. "The feedback has been very positive. They are very interested in Hainan, find the policies attractive and are considering the possibility of establishing a presence here — finding their own place in Hainan," he said.

Peter Burnett, chief executive of the China-Britain Business Council, who has visited Hainan several times, put it more bluntly. "Hainan is not just a free trade zone — it's a free trade port, the only one in China. That means the whole island is included, with very low tax rates and low tariffs," Burnett said."Once you're in Hainan, you're free to operate and you have the ability to access the mainland — it's a launch pad."

Burnett, who led a delegation of British companies, said the 30-percent value-added policy is "of great interest". "Some companies have already set up in Hainan. Success will breed success. I expect more companies to realize the potential."

"For the United Kingdom, 80 percent of our economic output is in services. Many companies in our delegation to Hainan this time are in services — not just financial services, but also engineering, publications, media and creative industries," Burnett added.

The event was not merely a gathering of foreign firms, it was also a demonstration of how Chinese enterprises are facilitating global cooperation. Xi Guohua, chairman of CITIC Group, called Hainan Free Trade Port the highest-level form of China's opening-up.

"The full implementation of Hainan's policies presents historic opportunities for the bio-health industry to integrate into global industrial chains," Xi said. He added that CITIC will leverage its strengths as a multinational conglomerate to serve as a bridge between China and the world, deepening cooperation with Hainan in biomedicine, high-end medical care and wellness services.

To put words into action, CITIC has provided a financing support package exceeding 39 billion yuan ($5.76 billion) to facilitate win-win cooperation during this trip, Xi disclosed.

The success of this event, Xi said, confirms that China is a grand stage and a vast market for investment, Hainan is a new highland and a new gateway for open cooperation, and CITIC is a reliable guide and bridge for global partners.

Xi made three proposals: first, to build an open and win-win island by establishing multi-level cooperation mechanisms; second, to create an innovative and dynamic island by integrating financial resources and strengthening the Hainan-Hong Kong dual-hub linkage; and third, to foster a culturally charming island through publishing, think tanks and media to enhance international cultural exchanges.

Company executives sign contracts at the International Life and Health Enterprises Hainan Visit event in Haikou, Hainan province, on May 26. CHINA DAILY

While policies attract, execution matters. Li Tao, vice-president of Siemens Healthineers Greater China, said what made this trip different from many others he had attended was the sequencing: site visits first, then discussions.

"In many other events, it is usually meetings first and then site visits. Today, during the discussions, we were able to have very good conversations because we had visited three areas — Haikou, Boao and Sanya — which made the process much more efficient: see first, then discuss," Li said. He summed up Hainan's approach in three words: pragmatic, effective and professional — with an emphasis on efficiency.

On Dec 18, Siemens Energy became the first foreign-invested enterprise to complete registration after receiving its business license at the Yangpu administrative service center in Danzhou, Hainan. The company simultaneously broke ground on a new gas turbine assembly base and service center, a project it described as its first project of its kind in China.

The move marked a milestone manufacturing project demonstrating investor confidence, and came as Hainan launched island-wide special customs operations on the same day.

Joern Schmuecker, senior vice-president, Gas Services Central of Siemens Energy, said: "Establishing a gas turbine assembly base and service center in Hainan aligns perfectly with the free trade port's vision of becoming a new high ground for openness and international cooperation. Together with our partners, we will drive collaborative innovation across the industry value chain, continuously enhance equipment delivery and service capabilities, and build an industrial ecosystem that contributes to energy resilience in China and across the world."

Meanwhile, French pharmaceutical company Mayoly has also established a presence on the island, while Singapore-based Fullerton Health Group opened Hainan's first wholly foreign-owned hospital.

Companies' enthusiasm is backed by hard data. Since the special customs operations started on Dec 18, Hainan had added 1,004 new foreign firms up to April 29, up 35.86 percent year-on-year.

As of the end of April, Hainan had 12,300 foreign-invested enterprises, with investment sources covering 180 countries and regions.

Feng Fei, Party secretary of Hainan, told a conference last week that the life and health industry is a key pillar of the Hainan Free Trade Port, and the province's excellent ecology, open industrial policies and vast market potential make it uniquely positioned.

"The island province is becoming a new frontier of China's opening-up, a hotbed for mutually beneficial cooperation and a new engine for economic globalization," Feng said. "Choosing Hainan means choosing opportunities. Investing in Hainan means investing in the future."

He emphasized the importance of developing "two bases" — one for Chinese enterprises expanding globally and another for foreign companies seeking access to the Chinese market.

Foreign executives talk at the Hainan event in Haikou on May 26. CHINA DAILY

Hainan's negative list for foreign investment is the shortest in the country, Feng said, extending a warm welcome to international investors.

Sean Stein, president of the US-China Business Council, offered a concrete example of how Hainan's new policies are changing investment decisions. "Previously, a major US company that refurbishes used products from Southeast Asia and Japan could not do so in China due to regulations. Now, after the kickoff of island-wide special customs operations, the company is setting up a base in Hainan to renovate and re-export the products globally," Stein said. "That's a big, encouraging change."

Tesla has also seen a surge in activity across its Hainan outlets. A Tesla spokesperson told China Daily that Hainan's ecological advantages and open policy environment make it "an ideal base for promoting green mobility worldwide". Due to the new customs policies and local government subsidies, foot traffic at Tesla's stores in Haikou has risen 20 percent month-on-month.

The influx of foreign businesses is not accidental. Hainan has been systematically improving its business environment. Chen Shuying, an official of the Hainan provincial market supervision administration, said that a series of reform measures have shortened the preparation time for foreign-funded enterprises to invest in Hainan.

The process for foreign enterprises has been changed from "separate handling by different departments" to "integrated processing", compressing the number of procedures from five to one and reducing paperwork by more than 77 percent, Chen said.

In late April, Hainan issued a three-year action plan to improve foreign-related services and the international business environment, introducing 30 specific measures in seven areas. These include extending Hainan's enterprise registration window to Hong Kong and offering customized "one enterprise, one policy" services for key industries.

He Jifeng, deputy director of the Hainan Provincial Department of Business Environment Development, said the action plan aims to create a precise foreign investment service system covering the entire lifecycle of enterprises.

"We will refine annual plans, clarify timelines, strengthen coordinated implementation and put every reform measure and every service scenario into practice — so that more foreign enterprises can invest with confidence, operate with ease and develop with focus in Hainan," said He.

For Heilig, Hainan's progress is still in the early stages, but he is optimistic. "We are watching closely. For German companies, our needs include not only open policies, but also important international infrastructure — education, medical resources and most importantly talent to support business development," he said. "Much work is being done. We believe Hainan will develop well."

When asked whether Hainan could become a new center or model for China-Germany cooperation, Heilig did not hesitate. "I hold a very positive attitude. I believe it will certainly become a new model or benchmark."

That confidence is shared by many. Burnett from the China-Britain Business Council, after a beach walk at sunset, put it simply: "You sometimes forget that you're in an industrial zone. So you can come to work, invest in Hainan and feel like you're on holiday."

Behind that pleasant feeling lies a serious business case. With its unique policies, improving infrastructure, coordinated governance and growing openness, Hainan is steadily transforming from a tropical resort into a genuine hub for global investment, experts said.

China the global hub of EV development
By LI FUSHENG
Visitors check out the Freelander SUV brand at its launch at the Museum of Art Pudong in Shanghai on March 31. LI FUSHENG/CHINA DAILY

Automakers are increasingly turning to China to revive legacy brands and accelerate their transition to electrification, marking a structural shift in the global auto industry.

The trend has been highlighted by recent developments involving Jaguar Land Rover's Freelander revival through its collaboration with Chery, and Stellantis' expanded partnership with Dongfeng Motor to jointly produce new Peugeot and Jeep models in China for both domestic sales and global export.

Taken together, the projects suggest that China is evolving from a key sales market into a core development and production base for global automotive brands navigating the electric transition.

Jaguar Land Rover's Freelander project is widely seen as an early example of this shift. The model, once a mainstream SUV nameplate within the Land Rover portfolio, was upgraded into a brand through a partnership with Chery in March.

Under the new arrangement, Jaguar Land Rover will contribute design and brand expertise, while Chery will lead supply-chain integration and intelligent-vehicle development.

Positioned as a premium NEV marque, Freelander will target global markets with a planned lineup of six models over the next five years.

The new brand will be underpinned by a dedicated EV platform compatible with battery-electric, plug-in hybrid and extended-range power trains.

Freelander will also leverage partnerships with Chinese technology suppliers including Huawei and CATL to bolster its competitiveness.

Another example comes from Stellantis, which in May signed a strategic agreement with Dongfeng to deepen their long-standing partnership in China.

Under the plan, the joint venture Dongfeng Peugeot Citroen Automobile will begin production of two new Peugeot-branded NEVs at its Wuhan plant in Hubei province from 2027, with vehicles designed for both domestic and global export markets.

The project includes the production of two new electrified Jeep models at the same plant, marking the brand's return to manufacturing in China after the dissolution of its joint venture with GAC in 2022.

The Jeep models will incorporate technology from Dongfeng's electric off-road platform, underscoring the increasing role of Chinese engineering in supporting global brands' electrification strategies.

The deals will benefit from "Stellantis' global layout advantages and Dongfeng's intelligent electric vehicle technologies", said Dongfeng Chairman Yang Qing.

Industry observers say the two cases reflect a broader structural adjustment in the global auto industry, as traditional automakers face mounting pressure to reduce costs and accelerate electrification timelines.

China's NEV industry has built a leading position across batteries, vehicle platforms, software integration and manufacturing scale. This enables domestic partners to play a more central role in global vehicle development programs.

According to industry data, Chinese manufacturers now account for a dominant share of global EV battery output and are expanding their presence in overseas markets, particularly Europe.

This has intensified competition for legacy automakers, many of which are struggling to match the speed and cost efficiency of Chinese NEV development cycles.

As a result, the old collaboration models of foreign tech plus Chinese market have reversed, with Chinese partners increasingly providing underlying EV platforms and supply chain systems, while global brands contribute brand equity and international distribution networks.

Analysts say the pattern is visible across multiple partnerships, including Volkswagen's cooperation with Chinese NEV firm XPeng on software and platforms, Toyota's expansion of China-based development activities, and Audi's localization strategy with the launch of models codeveloped with SAIC.

"China is at the core of our transformation and a key driver of our global ambitions," Volkswagen China CEO Oliver Blume said. "China is not just a market for Volkswagen Group. China makes us better."

Some analysts describe the shift as a pragmatic response to technological realities in the EV transition.

Others argue it reflects a longer-term rebalancing of industrial capabilities, with China increasingly acting as a hub in the global automotive value chain.

"China is becoming the operating system of the global electric vehicle industry," one industry observer said, noting that legacy automakers are increasingly dependent on Chinese partners for speed, scale and system-level integration.

While global brands still provide brand recognition and distribution reach, the underlying technological stack is increasingly being developed and industrialized in China.

The shift does not necessarily signal a loss of competitiveness for those foreign automakers, but it does suggest a redistribution of roles within the global industry, said analysts.

They added that China's position is moving beyond manufacturing hub status toward a system-level enabler of global EV development.

Swire Coca-Cola opens two new plants
An aerial drone photo taken on Oct 16, 2025 shows a new factory of Swire Coca-Cola Ltd, a bottler of Coca-Cola, in Zhengzhou, capital of Central China's Henan province. [Photo/Xinhua]

GUANGZHOU — Swire Coca-Cola's green and high-tech production base in the Guangdong-Hong Kong-Macao Greater Bay Area officially opened in Guangzhou, capital of South China's Guangdong province on Wednesday.

With an estimated investment of 1.25 billion yuan ($184.37 million) and a floor area of nearly 130,000 square meters, the plant is set to boost annual production capacity by around 66 percent, further improving supply efficiency for the GBA market.

The Guangzhou base is the second new facility launched by the firm within 24 hours. With a total planned investment of 2 billion yuan, the company's Kunshan new plant in Suzhou, East China's Jiangsu province, began operation on Tuesday.

The two new plants are equipped with more than 20 modern production lines in total, with a combined annual production capacity exceeding 3.1 million metric tons. Capable of manufacturing over 100 products under more than 20 brands, the expansion increases Swire Coca-Cola's total production capacity in the Chinese mainland by 10 percent.

Focused on green, digital and intelligent development, the two new facilities have rolled out operational processes for energy conservation and carbon reduction, water resource management and waste recycling, leveraging advanced technologies including the internet of things, big data and artificial intelligence.

"Through our green and intelligent upgrading and regional industrial coordination, Swire Coca-Cola is translating tangible investment into solid contributions to China's economic growth," said Hunter Jin, CEO of Swire Coca-Cola Greater China.

"We hope every step of our development will keep pace with China's high-quality development process."

The greatest development opportunity still lies in the long-term sound momentum of the Chinese market, the huge vitality of continuous consumption upgrading, as well as the policy environment that firmly expands domestic demand and encourages investment, Jin added.

As a wholly owned subsidiary of Swire Pacific Ltd, Swire Coca-Cola is the fifth-largest bottling group by sales volume in Coca-Cola's global bottling system.

XINHUA-CHINA DAILY

Business leaders hail nation's intelligent manufacturing
By Zhang Chenxu and Zhou Lanxu in Tianjin and Wang Keju in Beijing
Guests attending the "CEO: Grow with China" event exchange insights on Thursday in Tianjin. The event, jointly organized by the Publicity Department of the Tianjin Municipal Committee of the Communist Party of China and China Daily, was held during the 2026 World Intelligence Expo, which runs from Thursday to Sunday. ZOU HONG/CHINA DAILY

China's stepped-up push to advance intelligent manufacturing is reinforcing corporate confidence and opening broader opportunities for enterprises at home and abroad to innovate, expand and share in the growth of the world's second-largest economy, economists and business executives said on the sidelines of the World Intelligence Expo 2026 in Tianjin, which opened on Thursday and runs through Sunday.

The rise of intelligent manufacturing in China is expected to accelerate global industrial upgrading and inject fresh impetus into world economic growth, they said.

This optimistic outlook was reflected at the "CEO: Grow with China" roundtable, which was held on Thursday as part of the expo, with participation of corporate executives from sectors ranging from green development to smart manufacturing and consumer technology.

The roundtable was jointly organized by the Publicity Department of the Tianjin Municipal Committee of the Communist Party of China and China Daily.

"China is not just a huge market — it is a global engine for innovation and manufacturing," said Rainer Kern, chief financial officer of Karcher Greater China.

The Germany-based cleaning solutions provider sees China's complete industrial supply chain, rapid adoption of new technologies and vast market as key strengths in the large-scale deployment of artificial intelligence, Kern said.

The positive sentiment is showing as China moves quickly to create new forms of a smart economy, with this year's Government Work Report calling for advancing and expanding the "AI Plus" initiative, promoting faster application of new-generation intelligent terminals and AI agents, and encouraging large-scale commercial application of AI in key sectors and fields.

Sun Xuegong, director-general of the department of policy study and consultation at the Chinese Academy of Macroeconomic Research, said the policy push is aimed at building a broader ecosystem to support the smart economy, rather than focusing on a single technology.

"AI is rapidly expanding the production frontier and has great potential to improve efficiency," he said, adding that the initiative is expected to remain an important part of China's economic policy agenda in the coming years.

Dr. Christoph Schrempp, vice-chair of the European Union Chamber of Commerce in China's Tianjin chapter, said that China's shift toward intelligent manufacturing will reshape the business environment, as its AI capabilities are expected to mature further over the next five to 10 years.

"The speed of China's transition toward highly automated production is impressive," he said, adding that emerging technologies will create fresh room for European and Chinese enterprises to collaborate.

His remarks were echoed by a survey released on Wednesday by the European Union Chamber of Commerce in China and consultancy firm Roland Berger, which showed "signs of an uptick" in confidence among European businesses operating in China.

China remains "the heavyweight champion of efficient and cost-effective supply chains", the survey said, with 75 percent of respondents saying their China-based production is more efficient than operations elsewhere.

"If you want to learn how to manage your business in a highly dynamic and fast-developing environment, come to China and learn from the fastest," Schrempp added. "That experience can help companies compete more successfully in global markets."

A full-size model of an aerial vehicle is displayed on Thursday during the 2026 World Intelligence Expo at Tianjin's National Convention and Exhibition Center. ZOU HONG/CHINA DAILY

John Markmann, president of Grundfos China, said that China serves as both a vital testing ground and a launchpad for cutting-edge industrial innovations that can benefit markets worldwide.

Markmann, who is also vice-chair of the Danish Chamber of Commerce in China, North Board, said Grundfos, the Danish pump and water solutions provider, is proud to "ride this wave" by leveraging local AI talent and smart technologies to optimize its manufacturing processes in China.

Chinese manufacturers are also putting these advantages into practice. Jamie Erin Wood, head of investor relations at home-robotics and smart-appliance maker Dreame Technology, said that China's long-established industrial strengths are being amplified by AI-enabled production, robotics and a deeply integrated supply chain network.

Zhao Liang, partner at Unique Capital, said that China's rapid rollout of large-scale AI applications is gaining momentum, with the country, under certain metrics, now accounting for 61 percent of global daily token consumption.

Buoyed by the optimism widely shared by domestic and global businesses, Tianjin, the host city of the roundtable, is also strengthening its role in advanced manufacturing, innovation and intelligent industries, supported by its industrial base and growing AI ecosystem.

Schrempp of the European Union chamber said Tianjin's AI-related industries generated more than 300 billion yuan ($44.2 billion) in operating revenue, underscoring the city's growing weight in China's intelligent industrial transformation.

"For a traditional industrial city, that is remarkable," he said, adding that Tianjin has strong potential to become an emerging hub for intelligent industries.

China key to MSC Air Cargo growth
By Wang Ying in Shanghai
Two driverless vehicles haul cargo near the smart logistics warehouse at an airport in Hangzhou, Zhejiang province, on March 13, 2025. WANG GANG/CHINA NEWS SERVICE

Viewing Shanghai as a strategic cornerstone of its global network, MSC Air Cargo is well positioned to serve its strategy of growing alongside the Chinese market following the establishment of a cargo station in Shanghai and the rapid expansion of its operations in China, said a top executive of the company.

"If you look at the global trade lanes and trade corridors, China is very much a core component in the globe. So we selected Shanghai as one of the strongest additional markets to support any growth of products for MSC Air Cargo," said Jannie Davel, CEO of MSC Air Cargo, the air cargo division of Geneva-headquartered MSC Group, during an exclusive interview with China Daily.

"We strongly believe that Shanghai has the capability to continue to be one of the strongest places," said Davel on his visit to Shanghai in late April. The company launched the Shanghai station last month.

Regarding Shanghai's ambition to become a global shipping center, Davel said he sees immense opportunities, given Shanghai's status as one of the world's largest trading ports.

"Shanghai and Hong Kong are two of our biggest gateways. (The launch of) the Shanghai station is very much part of our China gateway strategy in terms of growing with China," Davel said.

Globally, MSC Air Cargo has five major gateways, which are Hong Kong, Shanghai, Malpensa of Italy, Liege in Belgium and Mexico City.

Wuhu Customs staff members inspect export goods on the maiden international cargo route of Wuhu Xuanzhou airport in Anhui province on June 28, 2024. XIAO BENXIANG/FOR CHINA DAILY

"Every decision we have made over the past two years, from our partnerships to our route development, has been shaped by our belief in the importance of this market," he said.

According to Davel, the agreement signed with the logistics unit of Shanghai Airport (Group) — also known as Shanghai Airport Authority Logistics Development Co — in November has helped MSC Air Cargo grow through adding two new flights, including two weekly in Shanghai, and four in Ezhou, Hubei province.

"Shanghai Airport Authority Logistics Development Co was a very key partner in helping us facilitate our establishment here ... They have been very instrumental for us in helping us start in such a great market," said Davel.

Established in October 2022, MSC Air Cargo has grown rapidly from a single aircraft into a scalable intercontinental platform operating a fleet of seven cargo aircraft on more than 30 routes weekly, serving over 17 destinations in Asia-Pacific, Europe and the Americas.

"China is very much part of our strategy to continue to grow. More than half (16) of the routes are from or to Chinese destinations," Davel said.

According to Davel, the Chinese mainland contributes between 17 and 18 percent of global air cargo business in terms of tonnage, and that of the Chinese market (including Hong Kong) is between 20 and 21 percent.

"You have to be part of that growth, and we continue to see opportunities," Davel said.

Since his first visit to China back in 1999, Davel said that over the past few decades he was impressed with the quality and speed of China's development.

China's total social logistics value expanded 5.1 percent year-on-year to 368.2 trillion yuan ($54.23 trillion) in 2025, and the nation's logistics sector generated a combined revenue of 14.3 trillion yuan during the same period, up 4.1 percent from a year ago, according to data from the China Federation of Logistics and Purchasing.

China's logistics sector has gone through effective growth during the 14th Five-Year Plan (2021-25) period. The fact that it has retained the title of the largest logistics market in scale globally for the tenth consecutive year fully demonstrates China's strengths as a supersized market, and such advantages have played a positive role in supporting the nation's economic development, Cai Jin, president of the China Federation of Logistics & Purchasing, was quoted as saying by CCTV news.

In December 2022, MSC Air Cargo kicked off its first operation in Xiamen, Fujian province. The company currently operates in six Chinese cities including Hong Kong, Ezhou, Shanghai, Xiamen, as well as Guangzhou and Shenzhen in Guangdong province.

"Our presence in China is built on trust, mutual respect and a shared belief that strong local partnerships are the foundation of reliable global logistics," Davel noted.

Budweiser China, Jiangsu Nongken strengthen domestic barley supply chain
By Wang Zhuoqiong
Budweiser China and Jiangsu Nongken Group host the sixth annual Growers Day at Huaihai Farm in Sheyang County, Yancheng, Jiangsu province, on May 14. [Photo provided to chinadaily.com.cn]

Budweiser China and Jiangsu Nongken Group are reshaping domestic barley supply chain, supporting farmers to increase yields, improving raw material supply, and boosting industry collaboration.

On May 14, the two companies hosted the sixth annual Growers Day at Huaihai Farm in Sheyang County, Yancheng, Jiangsu province. Since forming a partnership with Jiangsu Nongken a decade ago, both sides have created a system covering cultivation, production and distribution, building on their "Five Excellence" system, which centers on soil, seeds, farming, storage and purchase. This approach has steadily improved the quality and availability of locally grown barley.

Barley is a key ingredient in beer, shaping both taste and quality. It also plays a strategic role in linking agriculture and industry. Even though China is the world’s largest beer market, the country still faces gaps in high-quality barley supply.

To address this, the Ministry of Industry and Information Technology issued guidance in February on upgrading the brewing industry (2026–2030). The plan emphasizes stronger raw material supply, expansion of brewing-specific crops, and closer collaboration between farmers and industry.

Ricardo Obara, vice president of procurement & sustainability at Budweiser APAC, said: "We have built a tripartite model with farmers, Jiangsu Nongken, and Budweiser China. This gives farmers more stable income and predictable demand. Our goal is to show farmers the value of high-quality barley and help strengthen domestic production."

Budweiser China and Jiangsu Nongken Group host the sixth annual Growers Day at Huaihai Farm in Sheyang County, Yancheng, Jiangsu province, on May 14. [Photo provided to chinadaily.com.cn]

In 2024, the partners launched the "100+ Innovation Alliance" to promote low-carbon farming. One collaboration with Kangfen Ecolutions focuses on regenerative agriculture, replacing chemical fertilizers with organic alternatives and creating a sustainable value chain for high-end fertilizers.

The better seed practice drives innovation in barley varieties. In 2024, two new strains, Y131 and Y148, were successfully developed. "These varieties have strong malting and brewing traits and perform well in the field," Obara said.

The partnership has helped farmers grow a higher share of malting-quality barley that meets brewing standards and fetches better prices. Average yields have risen from about 500–550 kilograms per mu to 550–600 kg per mu. So far, about ten percent of the barley used in domestic beer brewing is sourced locally.

Jiang Jianyong, general manager of Jiangsu Nongken Group, said: "Our work with Budweiser China is key to advancing industrialization, premiumization, and green agriculture in the province. We will continue to strengthen cooperation on supply chain resilience, low-carbon farming, and farmer income, while developing barley varieties suited to Jiangsu’s soil and climate."

Using local barley in domestic beer brands also strengthens ties with communities, giving farmers pride in seeing their crops in products enjoyed nationwide. "There is still room for growth," Obara said. "Farmers have different options, and our goal is to keep barley a profitable and valuable choice for them."

GE Aerospace vows continuous support for China's aviation sector
By Zhong Nan
Larry Culp, chairman and CEO of GE Aerospace. [Photo provided to chinadaily.com.cn]

GE Aerospace, the United States-based aircraft engine supplier, said it remains committed to supporting the development of China's civil aviation sector and expanding cooperation with Chinese airline customers, as its top executive joined the US business delegation visiting China this week.

Larry Culp, chairman and CEO of GE Aerospace, said the latest high-level exchanges between China and the US underscored the global nature of the aviation industry and the importance of cross-border industrial cooperation.

"For more than 45 years, GE Aerospace has supported the development of China's civil aviation market," said Culp.

GE Aerospace and CFM International, a joint venture between GE Aerospace and France-based Safran Aircraft Engines, currently support more than 60 partner airlines in China, with about 8,500 engines in service and nearly 4,600 additional engines on order.

Culp said the company will continue investing in its capabilities in the US while strengthening localized service, support and training capacity in China to help airlines maintain safe and reliable fleet operations.

He added that commercial aviation plays an important role in connecting people, economies and industrial capabilities, and that the company remains committed to supporting customers in both China and the US.

Resilient supply chain offers MNCs chances
Staff members work at Airbus' second A320 family final assembly line in Tianjin on Nov 17. XINHUA

TIANJIN — In the Louis Dreyfus Company workshop in North China's Tianjin municipality, tons of beige soybean meal moved along a highly automated production line as it was transformed into bags of specialized feed protein after multiple processes.

With an annual capacity of 60,000 metric tons, this production line, which began operations last November, is LDC's first global production line for specialized feed protein. During the first three months after its launch, the company managed to establish cooperative relationships with about 20 partners worldwide.

"Tianjin has a world-class port and advanced warehousing and logistics networks, greatly facilitating the import of raw materials and product distribution for us. Our cooperation with local enterprises has further strengthened the company's supply chain resilience," said Chen Jiayuan, CEO of LDC North Asia.

In his view, China's highly resilient industrial chain offers unprecedented opportunities for multinational companies.

The Europe-headquartered LDC, a global merchant and processor of agricultural goods, plans to continuously expand investment in the Chinese market in the future, according to Chen.

In recent years, the highly resilient industrial chain provided by the Chinese market has become a major attraction for multinationals. Aerospace companies, which rely heavily on global supply chains, cast their votes via investments, making significant commitments in China.

Last October, Airbus inaugurated its final assembly line for A320 family aircraft in Tianjin, the second of its kind in both China and Asia as a whole. The Airbus A320 family production network now features a total of 10 FALs, with assembly capacity in Tianjin set to contribute 20 percent of the company's total globally.

Such investment in China has demonstrated the company's confidence in the country's booming aviation market, robust supply chain and friendly business environment, said Airbus CEO Guillaume Faury.

Approximately 200 Chinese suppliers now support Airbus' commercial aircraft production efforts, covering the entire industrial chain from raw materials to system assembly, a key factor that gave Airbus the confidence to establish an additional assembly line in China.

Similarly, at Boeing Tianjin Composites Co Ltd, nearly half of the production materials are from Chinese domestic suppliers, with these products renowned for their high safety and quality standards within Boeing's global supply network.

Marcus Williams, vice-general manager of BTC, said China has a relatively complete aviation industry chain system, and the country's open and inclusive market environment makes it a place suitable for long-term investment.

"China is very attractive for global investors," noted Victor Chu, chairman of First Eastern Investment Group, which has invested in Tianjin for many years. Chu added that Tianjin has all the ingredients of industrialization, like high-level research and development, advanced manufacturing and a big market. The company will increase involvement in Tianjin and attract more international partners to the city, Chu said.

He Zhiyi, chief expert at the Institute for Global Industry, Tsinghua University, highlighted that every country has its own competitive industries. While multinational corporations have achieved mutual benefits through exchange and cooperation, China, with its open and inclusive market environment and resilient supply chain system, provides an ideal platform for such collaboration.

China is the only country in the world with a complete industrial system. Foreign-invested companies in China benefit from shorter duration, greater convenience and lower costs in accessing industrial chain support from upstream and downstream partners, giving them greater confidence and resilience in coping with global economic and geopolitical changes, said Wu Hongliang, an official with the National Development and Reform Commission.

Durian boom ripening into supply chain story
A staff member weighs durians at a fruit distributor's operating center in Guangzhou, South China's Guangdong province, on Oct 17. DENG HUA/XINHUA

BEIJING — When durian season arrives, it makes a grand entrance to China via railway wagon, cold-chain container and express vessel, bringing with it a fruit whose distinctive aroma may divide opinion, but whose commercial appeal is unmistakable.

In the space of about 24 hours from the morning of April 25, three "durian express" vessels carrying 356 containers and more than 6,300 metric tons of fresh Thai durians arrived at Nansha Port in Guangzhou, South China's Guangdong province. The fruit was to be distributed across China in time to add to supplies for the May Day holiday. Since April 15, Nansha Customs has supervised the import of more than 9,500 tons of fresh durians.

The railway picture is just as telling. From Jan 1 to April 26, the China-Laos Railway transported 50,300 tons of imported durians, up 94.2 percent year-on-year, according to China Railway Kunming Group. The figures show not only that Chinese consumers are buying more durians, but also that the supply routes serving this growing demand are becoming faster and more efficient.

Durians have long occupied an unusual place in China's fruit market. For devoted buyers, it is the "king of fruits", rich, creamy and worth paying for. For others, its unique smell remains a barrier.

Yet that traditional divide is narrowing as durians move beyond boutique supermarkets and first-tier urban consumers. Better cold-chain logistics, more efficient cross-border supply chains and the spread of e-commerce have brought durians into community group-buying channels, lower-tier cities and county-level markets.

That expansion has made China the center of gravity for the global durian trade. Customs data show that China imported about 1.87 million tons of fresh durians in 2025, making it the world's most important consumer market for the fruit. Industry participants say the consumer base has grown rapidly. Rising incomes, larger supply and improved cold-chain infrastructure have all helped enlarge the market.

For ports and railways, the challenge is speed, as fresh fruit is an unforgiving cargo. At Mohan railway port, the core hub for China-Laos Railway international freight, the authorities have deepened coordination with Laos' Boten port, streamlined customs procedures and worked to keep cross-border logistics flowing.

A consumer selects fresh durians at an imported durian distribution center in Chengdu, Sichuan province, on April 26. ZHANG LANG/CHINA NEWS SERVICE

Railway departments, customs and companies have formed special teams for the transport of fresh fruit. Green channels for inspection give priority to entry, inspection and testing, linking arrival, clearance and transfer more smoothly and sharply reducing the time fruit spends at the port.

Nansha, China's largest seaborne port for durian imports, is making a similar effort. As Southeast Asia's main producing areas enter peak season, its durian imports are expected to keep rising between April and June.

Yet scale has not reduced scrutiny. For the concentrated arrivals in late April, customs officers carried out targeted inspection and quarantine, checking for harmful organisms and taking samples for pesticide residues, heavy metals and other safety indicators.

"Visible pest risks can be checked by the eye, but invisible microbes and contaminants must also be strictly guarded against," said Lin Xiaojing, an official with Nansha Customs.

As a result, the market is expanding not only in size, but also in standards. Niti Pratoomvongsa, commercial counselor at the Royal Thai Consulate-General in Nanning, capital of South China's Guangxi Zhuang autonomous region, said Chinese consumers are shifting from a focus on price toward a stronger concern for quality, food safety, production standards and traceability. This change is raising the bar for competition.

Southeast Asian suppliers are responding. As planting areas expand in Thailand, Vietnam, Malaysia and Cambodia, industry participants say the competition among Southeast Asian suppliers in China is still being reshaped.

Chinese capital and business operators are also moving further upstream. Liu Junhong, a Guangxi businessman who shifted from engineering and agricultural irrigation into durians five years ago, has inspected markets in Malaysia, Thailand and Vietnam and invested in a planting project in Cambodia's Kampot province.

An employee sells durians via livestreaming at an imported durian distribution center in Chengdu on April 26. ZHANG LANG/CHINA NEWS SERVICE

"The industry is still expanding rapidly, but already entering a period of structural differentiation," Liu said. His answer is to focus on higher-end varieties such as "Black Thorn" to avoid future homogenized competition.

Growth, however, does not guarantee easy profits for everyone. Wang Zhengbo, chairman of Guangxi TWT Supply Chain Management, a trading company specializing in Thai durians, noted that the durian chain is long and layered, from planting to retail, with costs accumulating at each stage. Large traders and those controlling upstream resources are relatively stable, while some smaller players are more exposed to price volatility.

At the production end, Nicholas Lui, a durian grower from Malaysia's Pahang state, said rising fertilizer, fuel and labor costs — together with stricter procurement standards, are narrowing margins.

Even so, the direction of travel remains clear. China's market is widely seen by industry participants as far from saturated, but it is becoming more selective. Poor quality fruit, uneven standards and inefficient supply chains will find it harder to survive.

The boom is also creating new forms of consumption. In Nansha, a port-side fresh market model allows fruit to be unloaded, containers opened and products sold directly. A durian carnival on April 30 offered Thai Monthong, Malaysian Musang King and other varieties to consumers. In producing countries, some businesses are exploring durian tourism, combining picking experiences with agricultural travel. Processed products, from frozen pulp to cakes and snacks, are also extending the value chain.

The fruit's flavor may not have changed. But from orchard to port, railway and dinner table, the business around it is becoming faster, stricter and more regional. For China and Southeast Asia, the durian season is no longer just a seasonal rush. It is a vivid example of how consumer demand can reshape the routes, standards and economics of a whole supply chain.

Xinhua

Jinjiang upgrades supply chain
By Ke Rongyi and Song Yi
Anta's Olympics series sports products on display at a museum in Jinjiang, Fujian province. Jinjiang is a major hub for sportswear and consumer-brand manufacturing, illustrating how strong industrial clusters can support domestic demand. XINHUA

As China intensifies efforts to expand domestic demand and boost consumption, Jinjiang, a coastal city in Fujian province, is leveraging its manufacturing strengths to cultivate new growth drivers, underscoring the role of supply upgrading in supporting demand growth, experts said.

Their remarks came as the monthlong "Super Jinjiang, Happy Shopping in Beijing" consumption promotion campaign, launched on March 15, brought together 12 prominent Chinese consumer brands, including sportswear brands Anta, Xtep and Kelme, menswear brand Lilanz and fitness equipment supplier SHUA Fitness.

More than 200 stores across the capital are rolling out synchronized discounts, covering a full spectrum of consumer goods from professional sportswear, high-end business apparel and fitness equipment to daily casual wear.

"The campaign is Jinjiang's step to cultivate new consumption momentum," said Lin Qi, director of the Jinjiang Commerce Bureau. "For brands from Jinjiang, it signals a decisive upgrade from selling products to building brands."

Jinjiang is using its "Super Jinjiang" shopping IP as a key platform, fully unlocking consumption potential and guiding local enterprises to explore new growth areas such as the IP economy, fashion economy and debut economy, Lin said.

"Enterprises are encouraged to expand the supply of new products tailored to interest-driven, green, and health-focused consumption, so as to meet the public's evolving demand for diversified, personalized and high-quality goods," Lin said.

This local initiative aligns with national priorities. In this year's Government Work Report, building a robust domestic market was listed among the top major tasks, with special initiatives to boost consumption set to continue. Around 250 billion yuan ($36.36 billion) in ultra-long special treasury bonds will be earmarked for consumer goods trade-in programs, according to the report.

Beyond a short-term stimulus, China's strategy also focuses on industrial upgrading to stabilize employment and raise incomes over the medium term, and on strengthening social security, income support, and public services to shore up consumer confidence in the long run.

The scale and ambition of the campaign are backed by Jinjiang's industrial heritage and vibrant private sector, the core of the widely recognized "Jinjiang Experience".

The "Jinjiang Experience" refers to the transformation of Jinjiang, once a poor county in Fujian province with a large population and limited land, into an economic powerhouse with a well-developed economy.

It focuses on the real economy, draws momentum from reform and innovation, and stresses effective government-enterprise cooperation.

This forward-looking strategy has enabled Jinjiang to become one of China's top county-level economies and a representative model of Chinese modernization at the local level.

"In 2025, Jinjiang's GDP reached 386.18 billion yuan, and its economic aggregate remained among the top three counties nationwide," said Wang Mingyuan, secretary of the CPC Jinjiang Municipal Committee.

Bai Wenxi, vice-chairman of the China Enterprise Capital Union, said China is at a crucial stage of consumption upgrading, and the Jinjiang model, by translating manufacturing strengths into fresh consumption drivers, represents not only a practical response to near-term economic pressures, but also a long-term step toward building a new development paradigm.

"Supply upgrading provides the fundamental support for expanding domestic demand," he added. "Only through sustained investment in research and development, as well as continued improvements in product quality, can companies generate real and effective consumer demand."

Tu Tian, Jiang Xueqing, Yan Xingzhou and Zhang Chenxu contributed to this story.

German enterprises in Taicang showcase supply chain heft
By Ren Qi
German executives from CIT (Taicang) Automotive Technology Co Ltd inspect a production workshop in Taicang, Jiangsu province, on Feb 25. JI CHUNPENG/XINHUA

The China-Germany (Taicang) SME Cooperation Demonstration Zone in Taicang, Jiangsu province, showcased its pivotal role in bilateral supply chain integration at a high-level economic meeting in Beijing recently, highlighting achievements in sectors ranging from humanoid robotics to zero-carbon development, said a local official.

Zhang Zhan, vice-mayor of Taicang, told China Daily that the city has evolved into the "hometown of German enterprises" in China, hosting over 560 German firms after more than three decades of dedicated cultivation.

Zhang attributed this success to a "German-style" focus and patience, noting that the city has created a service brand ensuring investors can "enter, stay, and thrive" through precise investment promotion and an optimized business environment.

He added that the integration of industry and city life is further supported by a dual-system vocational education model and a German-style living environment.

"Taicang's practice proves that high-standard opening-up relies on market-oriented, law-based, and international standards," Zhang said. "By deeply binding domestic and foreign industrial and value chains, foreign capital becomes a key driver for local industrial upgrading, creating a virtuous cycle of mutual benefit."

During the China-Germany Economic Advisory Committee meeting held at the Great Hall of the People on Wednesday, Taicang presented a strong track record, with multiple projects selected for the national cooperation list. The city is currently deepening the demonstration zone's construction to foster innovation in smart manufacturing, the digital economy, and service trade, aiming to enhance strategic trust between China and Europe.

A key focus of this cooperation is green development.

The Taicang High-Tech Industrial Development Zone has signed an agreement with Germany's GIZ, a sustainable development organization, to build China's first Sino-German dual-certified zero-carbon park. The launch ceremony was on Friday.

The initiative builds on a solid foundation. In 2021, a joint energy efficiency pilot program in Taicang was recognized by national authorities in both countries, successfully saving over 25,000 megawatt-hours of energy and reducing carbon emissions by more than 38,000 metric tons annually.

The upgraded cooperation will focus on top-level design and digital energy management. Crucially, the park will establish a carbon footprint accounting system for export-oriented enterprises to help them obtain ISO 14067 certification.

Products emerging from the park will effectively carry a "green passport" recognized by both nations, helping companies navigate trade barriers such as carbon tariffs and providing a "Taicang Model" for green industrial transformation nationwide.

Business sentiment on the ground remains robust. At Brose Taicang Automotive Systems Co Ltd, smart production lines are operating at full capacity to meet a full schedule of orders.

Thomas Herrmann, general manager of Brose Taicang, expressed confidence in the outlook. "We want to focus more on the Chinese market this year," Herrmann said. "In the future, we will expand local production and bring more production lines here. We are currently planning new investments."

Shein to strengthen supply chain with major investment in Guangdong
By Li Jiaying
Visitors gather at Shein's booth during a high-tech expo in Guangzhou, Guangdong province, on Aug 15. HUANG TAIMING/FOR CHINA DAILY

Cross-border e-commerce platform Shein said on Tuesday that it is investing more than 10 billion yuan ($1.46 billion) to strengthen its supply chain in Guangdong province, a move believed to signal a deeper commitment to the domestic market.

The announcement was made by Shein founder Xu Yangtian at Guangdong's high-quality development conference, where he outlined the company's plans to further consolidate its presence in the province.

"We will continue to deepen our roots in Guangdong and are investing more than 10 billion yuan to build Shein's smart supply chain system, working together to create a world-class fashion industry cluster," Xu said.

Against the backdrop of an ongoing listing window and evolving external regulatory conditions, the relocation of core business functions back to China is viewed as paving the way to streamline IPO review procedures and consolidate its domestic operational foundation.

According to Pan Helin, a renowned economist, although Shein has achieved solid growth in overseas e-commerce markets, its brand presence in the domestic market remains relatively weak, making it difficult to establish a strong foothold amid fierce competition. In addition, competition overseas is becoming increasingly intense, while consumer loyalty in cross-border e-commerce tends to be limited.

"Against this backdrop, a return to Guangdong signals the platform's intention to further expand and deepen its presence in the domestic market," Pan said.

Pan added that even though the company expresses its intention to return, whether it ultimately follows through will depend on concrete actions and implementation. "All parties should also work to create a favorable business environment for companies like Shein seeking to reintegrate," he said.

According to Xu, since establishing its presence in Guangzhou, Guangdong, in 2014, Shein has witnessed steady business growth. The platform's export value has surpassed 100 billion yuan, with product offerings ranging from apparel and footwear to beauty and household goods, and a market reach spanning more than 160 countries and regions.

In terms of industrial impact, Xu said the platform now collaborates with nearly 10,000 suppliers in Guangdong, helping support more than 600,000 jobs across the province.

Xu also highlighted Guangdong's famous "small-batch, quick-response" model. Linking garment factories with logistics hubs through digitalized systems, the local supply chain aligns real-time market demand with production, shortening the turnaround time from design to delivery to just two to three weeks.

Beyond expanding its supply chain footprint, the company has also adjusted its domestic operational structure in recent years.

In November, Shein inaugurated its China research and development center and national operations center in Nanjing, Jiangsu province. Together with its established manufacturing and supply chain base in Guangzhou, the move has created a dual-engine structure, pairing research and development and nationwide operations in Nanjing with large-scale production and fulfillment capabilities in Guangdong.

The strategic realignment comes as the company continues to navigate an uncertain listing trajectory. In June, the company submitted a confidential listing application to the Hong Kong stock exchange. Prior to that, the company's IPO plans had shifted among the United States, United Kingdom and Hong Kong Special Administrative Region, with no concrete progress toward a listing to date.

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