A noteworthy 21 provinces reported an average disposable income exceeding 30,000 yuan (about US$4,222), with seven surpassing the 40,000 yuan (US$5,629) mark. Remarkably, both Shanghai and Beijing have crossed the substantial threshold of 80,000 yuan (US$11,257).

The data, disclosed on January 17, 2024, illuminates the national average disposable income at 39,218 yuan (US$5,519), marking a nominal increase of 6.3% from the previous year.

After adjusting for inflation, the real growth stands at 6.1%. Urban residents enjoyed a higher average disposable income of 51,821 yuan, a 5.1% nominal growth, translating to a 4.8% real increase. Meanwhile, rural inhabitants saw their income climb to 21,691 yuan, boasting a more robust growth of 7.7% nominally and 7.6% in real terms.

Drilling down to provincial specifics, eight provinces outpaced the national average, predominantly from the affluent eastern coastal regions, including Shanghai, Beijing, Zhejiang, Jiangsu, Tianjin, Guangdong, Fujian, and Shandong.

Shanghai and Beijing stand out, with incomes soaring above 80,000 yuan, at 84,834 yuan and 81,752 yuan respectively, highlighting a significant gap with other provinces.

This income disparity underscores the economic might of Shanghai and Beijing, where high urbanization rates, advanced service sectors, cutting-edge technology industries, and a concentration of high-paying jobs attract a wealth of talent.

These cities dominate in lucrative sectors like information transmission, software, information technology services, financial services, and scientific research, contributing to their high average incomes.

Following Shanghai and Beijing, Zhejiang claims the third spot with an average disposable income of 63,830 yuan.

Ding Changfa, an associate professor of economics at Xiamen University, attributes this to Zhejiang’s thriving private economy and small urban-rural income disparity, fuelled by industrial clusters across numerous counties. This prosperity often translates into higher investment rates among residents, further boosting their income through asset gains.

The rankings continue with Jiangsu, Tianjin, Guangdong, Fujian, Shandong, Inner Mongolia, and Liaoning, delineating a clear economic pecking order.

Notably, Inner Mongolia, Chongqing, Hunan, Hubei, and Anhui lead the central and western regions, reflecting their advanced industrialization and urbanization levels.

The report highlights the branding strengths of nine major Chinese cities, all making it into the top 100 global city brands. This includes Shanghai (54th), Beijing (58th), Shenzhen (73rd), Chongqing (74th), Macau (81st), Guangzhou (85th), Chengdu (89th), and Nanjing (93rd).

Key Findings from the Report:

1. Hong Kong’s Global Standing:
   • Hong Kong ranks exceptionally in “Familiarity” (9th globally) and as a “Global Important City” (10th).
   • Known as one of Asia’s largest financial centers, Hong Kong’s favorable tax system, straightforward listing procedures, and robust regulatory framework make it highly attractive to foreign investors.
   • With the easing of travel restrictions, Hong Kong is poised for a strong economic rebound this year.
2. Shanghai’s Financial Influence:
   • Ranking 14th in “Global City Influence,” Shanghai asserts its position as a globally impactful financial center.
   • The city leads China in “Future Growth Potential” (7th) and “Strong and Stable Economy” (18th).
3. Beijing’s Global and Cultural Impact:
   • Beijing scores high in “Global Importance” (13th) and “City Familiarity” (20th).
   • Renowned for its exquisite royal palaces and museums, Beijing is also China’s leader in rich history and heritage (31st globally), making it a popular tourist destination.
4. Shenzhen’s Business and Trade Value:
   • Shenzhen ranks as China’s most valuable city for business and trade (16th globally).
   • The city excels in “Ease of Employment” (4th), “Ease of Starting a Business and Innovation” (5th), “Access to Skilled Labor” (6th), and “Ease of Doing Business” (10th).
5. Chongqing’s Emerging Presence:
   • Known as China’s “Mountain City,” Chongqing, despite limited global familiarity (98th), outranks other Chinese cities in various domains among those who know it.
6. Macau’s Tourist Appeal:
   • Macau leads China in “Lifestyle” (32nd), “Entertainment” (35th), and “Openness and Warmth” (57th), maintaining its allure as a tourist destination.
7. Guangzhou’s Manufacturing Ambitions:
   • Poised to become one of China’s leading manufacturing hubs, Guangzhou consistently ranks in the top 20 for “Access to Skilled Labor” (15th), “Ease of Doing Business” (15th), “Personal Tax Benefits” (17th), and “Ease of Employment” (18th).
8. Chengdu’s Financial Sector Growth:
   • Envisioned as a national financial center in Western China, Chengdu is gaining a reputation in financial technology, rural finance, and consumer finance.
   • The city ranks second in China for “Future Growth Potential” (33rd) and “Investment Reputation” (52nd).
9. Nanjing’s Friendly Business Environment:
   • As one of the nation’s most business-friendly cities, Nanjing ranks second and third in China for “Corporate Tax Benefits” (10th) and “Ease of Employment” (13th) respectively.

The Brand Finance report showcases Chinese cities’ diverse strengths and growing global recognition, positioning them as key players on the world stage.

The industrial production value added grew by 5.2% year on year, while the service sector expanded by 5.4%. Notably, contact-intensive services such as accommodation and catering experienced rapid growth.

The total retail sales of consumer goods increased by 5.8% year on year, recovering from a 2.7% decline in Q4 2022. Upgraded goods showed significant growth, with online retail sales reaching 3,286.3 billion yuan, up 8.6%.

Investment in fixed assets remained steady, with a year-on-year increase of 5.1%, while high-tech industries witnessed a 16.0% growth in investment. Investment in social sectors, such as health and education, also increased by 8.3%.

Imports and exports of goods continued to grow, with a 4.8% increase in total value. Exports grew by 8.4%, and imports by 0.2%. The trade balance showed a surplus of 1,409.0 billion yuan.

Consumer prices rose mildly, with the Consumer Price Index (CPI) increasing by 1.3% year on year. Meanwhile, producer prices for industrial products dropped by 1.6% year on year.

Employment remained generally stable, with the urban surveyed unemployment rate averaging 5.5% in Q1. By the end of the quarter, the number of rural migrant workers totaled 181.95 million.

Residents’ income increased steadily, with per capita disposable income reaching 10,870 yuan, a nominal growth of 5.1% year on year. Rural residents’ income grew faster than that of urban residents, showing real growth of 4.8% compared to 2.7% for urban residents.

Although the national economy demonstrated a steady recovery, challenges persist due to the complex global situation, inadequate domestic demand, and an unstable economic recovery foundation.

China must focus on economic stability and pursue progress while maintaining stability to address these challenges. Efforts should be directed towards high-quality development, deepening reforms, promoting high-standard opening up, and unleashing the potential of domestic demand.

The GDP growth in 2022 was primarily driven by the mining sector (7.3%), manufacturing (3.0%) and production and supply of electricity, thermal power, gas and water (5.0%).

High-tech manufacturing and equipment manufacturing also grew at a faster rate (7.4% and 5.6% respectively). Agriculture and animal husbandry also saw an increase in output.

In 2022, China’s total value of imports and exports of goods was 42,067.8 billion yuan, an increase of 7.7% compared to the previous year. The total value of exports was up by 10.5%, and the total value of imports was up by 4.3%.

The trade balance was in surplus by 5,863.0 billion yuan. The imports and exports by private enterprises grew by 12.9%, and the imports and exports of mechanical and electrical products grew by 2.5%.

The consumer price in 2022 went up by 2.0% compared to the previous year, with the highest increase in transportation and communication (5.2%). The producer prices for industrial products went up by 4.1% and the purchasing prices for industrial producers went up by 6.1%.

Employment was generally stable, and the surveyed unemployment rate in urban areas was 5.5%. The number of rural migrant workers was 295.62 million, up by 1.1% compared to the previous year.

Top 10 Smart City Forecast in China 2022-2025

China GDP Grew 8.1% in 2021; Q4 slowed to 4%

According to the preliminary estimates, China gross domestic product (GDP) in 2021 reached 114,367 billion yuan in 2021, an increase of 8.1 percent over the previous year at constant prices with an average two-year growth of 5.1 percent.

• Q1 GDP up by 18.3 percent year on year
• Q2 7.9 percent
• Q3 4.9 percent
• Q4 4.0 percent

By industries, the value-added of the primary industry was 8,308.6 billion yuan, up by 7.1 percent over the previous year, that of the secondary industry was 45,090.4 billion yuan, up by 8.2 percent and that of the tertiary industry was 60,968.0 billion yuan, up by 8.2 percent.

The total output of grain in 2021 was 682.85 million tons, an increase of 13.36 million tons, or up by 2.0 percent over the previous year. Of this total, the output of summer grain was 145.96 million tons, up by 2.2 percent, and that of early rice was 28.02 million tons, up by 2.7 percent. The output of autumn grain reached 508.88 million tons, up by 1.9 percent.

The total value added of industrial enterprises above the designated size increased by 9.6 percent over the previous year, an average two-year growth of 6.1 percent.

• mining was up by 5.3 percent
• manufacturing up by 9.8 percent
• production and supply of electricity, thermal power, gas and water up by 11.4 percent.
• high-tech manufacturing and equipment manufacturing went up by 18.2 percent and 12.9 percent respectively

The production of new energy vehicles, industrial robots, integrated circuits, and microcomputer equipment grew by 145.6 percent, 44.9 percent, 33.3 percent, and 22.3 percent, respectively.

In 2021, the national industrial capacity utilization rate reached 77.5 percent, 3.0 percentage points higher than that of the previous year.

The tertiary industry experienced fast growth in 2021.

The value-added of the information transmission, software and information technology services, accommodation and catering services, and transportation, storage and postal services grew by 17.2 percent, 14.5 percent, and 12.1 percent over the previous year respectively.

In 2021, the Index of Services Production grew by 13.1 percent over that of the previous year with the average two-year growth of 6.0 percent.

In 2021, the investment in fixed assets (excluding rural households) reached 54,454.7 billion yuan, up by 4.9 percent over the previous year with the average two-year growth of 3.9 percent.

Specifically, the investment in infrastructure went up by 0.4 percent, manufacturing up by 13.5 percent, and real estate development up by 4.4 percent.  The private investment was 30,765.9 billion yuan, up by 7.0 percent, accounting for 56.5 percent of the total investment.

The investment in high-tech industries grew by 17.1 percent, 12.2 percentage points faster than the total investment, of which the investment in high-tech manufacturing and high-tech services grew by 22.2 percent and 7.9 percent, respectively.

In terms of high-tech manufacturing, the investment in electronics and communication equipment manufacturing and in manufacturing of computers and office devices grew by 25.8 percent and 21.1 percent, respectively.

In terms of high-tech services, the investment in e-commerce services and services for the transformation of scientific and technological achievements grew by 60.3 percent and 16.0 percent, respectively.

The investment in social sector went up by 10.7 percent over the previous year. Specifically, the investment in the health sector and in the education sector went up by 24.5 percent and 11.7 percent respectively.

In 2021, the total value of imports and exports of goods was 39,100.9 billion yuan, an increase of 21.4 percent over the previous year.

Specifically, the total value of exports was 21,734.8 billion yuan, up by 21.2 percent; the total value of imports was 17,366.1 billion yuan, up by 21.5 percent. The trade balance was 4,368.7 billion yuan in surplus.

The imports and exports of general trade grew by 24.7 percent, accounting for 61.6 percent of the total value of the imports and exports, an increase of 1.6 percentage points over the previous year.

The imports and exports by private enterprises grew by 26.7 percent, accounting for 48.6 percent of the total value of the imports and exports, 2 percentage points higher than that of the previous year.

Find out about China’s economy in 2021:

• China retail sales up 12.5% in 2021; online retail grew 14.1%
• China Consumer Price Index (CPI) in 2021
• Statistics: China per capita disposable income
• China’s population

China IoT market forecast 2021-2024; Internet of Vehicles the fastest growing segment

In rural areas, the seriously unbalanced gender ratio makes it more difficult for men to find a partner. Some people are reluctant to introduce a partner because the success rate is too low.

Since the 1980s, there has been a high proportion of boys in children born every year in China. As they gradually enter marriage and childbearing age, there has indeed been a phenomenon that men encounter fierce competition in the marriage market and even can’t find a spouse.

However, the distribution of this phenomenon is uneven. This phenomenon is not obvious in large cities due to the supplementary effect of the incoming population, but it will be more prominent in some rural areas, remote areas, and areas with a low level of economic development.

There are differences in the gender ratio of the marriageable population between urban and rural areas.

The gender ratio of the marriageable population in big cities tends to be feminine, resulting in the phenomenon of “older leftover women”; the gender ratio of the marriageable population in the vast rural areas, especially in remote areas, tends to be masculine, resulting in the problem of “grass-roots singles”.

Gender composition should be divided into age groups. From the main marriage and childbearing age group of 20 to 40, there are more than 17 million men than women, not more than 30 million, according to NBS.

Guangdong is the province with the highest proportion of men, accounting for 53.07% of the male population and 46.93% of the female population, with a gender ratio of 113.08. Followed by Hainan, the proportion of the male population is 53.02%, the female population is 46.98%, and the gender ratio is 112.86.

The three northeastern provinces are the most balanced. Among them, Jilin and Liaoning are the only provinces in China where the female population exceeds the male population.

7 Major Consumer Segments Shaping Chinese Market Landscape

The birth rate was 10.48 ‰, the lowest since 2000.

With the opening of “single two children” policy (the married couple must both be the only child in each family) in 2014 and “comprehensive two children” in 2016, China’s birth rate ushered in a wave of slight increase, reaching 12.95 ‰ in 2016, the highest in recent years.

It continued to decline, not reaching the expected level, which decreased by 2.47 ‰ four years ago.

Among the 31 provinces and cities in the mainland, there are 11 provinces with a birth rate of more than 12 ‰ and 5 provinces with a birth rate of more than 13 ‰, which are respectively 14.60 ‰ in Tibet, 13.72 ‰ in Ningxia, 13.66 ‰ in Qinghai, 13.65 ‰ in Guizhou, and 13.31 ‰ in Guangxi.

There are 12 provinces with lower birth rates than the national average, which are Heilongjiang, Jilin, Liaoning, Tianjin, Shanghai, Beijing, Xinjiang, Inner Mongolia, Shanxi, Jiangsu, Hunan, and Chongqing.

Among them, the birth rate of three provinces in Northeast China was the lowest, with Heilongjiang, Jilin, and Liaoning being 5.73 ‰, 6.05 ‰, and 6.45 ‰ respectively.

In 2014, the permanent resident population of Heilongjiang Province was 38.33 million, which was 20,000 less than that of the previous year. It took the lead in a downward trend in Northeast China, followed by Liaoning Province in 2015 and Jilin Province in 2016.

By the end of 2019, the number of permanent residents in the three northeast provinces has decreased by 1.8255 million compared with 2013.

Gen-Z Insights: capturing attention of China’s post-95s consumers

The IMF predicts that the global economic growth rate will be 5.5% in 2021, which is 0.3 percentage points higher than the estimate in October last year. The IMF also predicts that there will be a severe divergence in the recovery process of various countries.

China’s recovery takes the lead among all the large economies in the world, and it has taken the lead in returning to the predicted growth rate before the epidemic in the fourth quarter of 2020.

In addition, the IMF predicts that the US GDP growth rate in 2021 will be 5.1%, a significant increase of 2 percentage points from the previously expected 3.1%.

Japan also has an increased forecast for growth from IMF. It expects Japan’s economic growth rate in 2021 to be 3.1%, an increase of 0.8 percentage points from the previous forecast.

The economic growth forecasts for the United Kingdom and Canada in 2021 have been lowered to 4.5% and 3.6%, respectively, a decrease of 1.4 and 1.6 percentage points.

Read China’s economy in 2020 »

China’s year-on-year GDP for the first quarter went down by 6.8%, up by 3.2% for the second quarter, 4.9% for the third quarter, and 6.5% for the fourth quarter.

By industries, the value-added of the primary industry was 7,775.4 billion yuan, up by 3.0%, that of the secondary industry was 38,425.5 billion yuan, up by 2.6%, and that of the tertiary industry was 55,397.7 billion yuan, up by 2.1%.

Agriculture

The total output of grain in 2020 was 669.49 million tons, up by 0.9% over 2019, or an increase of 5.65 million tons.

Of this total, the output of summer grain was 142.86 million tons, up by 0.9%, and that of early rice was 27.29 million tons, up by 3.9%. The output of autumn grain reached 499.34 million tons, up by 0.7%.

The output of rice was 211.86 million tons, up by 1.1 percent; wheat, 134.25 million tons, up by 0.5 percent; corn, 260.67 million tons, almost the same as that of 2019 with a slight decline; soybean, 19.60 million tons, up by 8.3%.

The total output of pork, beef, mutton, and poultry in 2020 was 76.39 million tons, down by 0.1% over 2019. Of this total, the output of beef was 6.72 million tons, up by 0.8 percent; mutton, 4.92 million tons, up by 1.0%; poultry, 23.61 million tons, up by 5.5%; eggs, 34.68 million tons, up by 4.8 percent; milk, 34.40 million tons, up by 7.5%, and pork, 41.13 million tons, down by 3.3%.

At the end of 2020, pigs and breeding sows registered in stock were up by 31.0% and 35.1% respectively over that at the end of 2019.

Industrial Production

The total value added of industrial enterprises above the designated size increased by 2.8% over 2019.

In terms of ownership, the value-added of the state holding enterprises grew by 2.2%, that of the share-holding enterprises up by 3.0%, that of the enterprises funded by foreign investors and investors from Hong Kong, Macao, and Taiwan up by 2.4% and that of private enterprises up by 3.7%.

In terms of sectors, the value-added of mining was up by 0.5%, that of manufacturing up by 3.4% and that of production and supply of electricity, thermal power, gas and water up by 2.0%.

The value-added of the high-tech manufacturing and equipment manufacturing went up by 7.1% and 6.6% respectively over 2019, or 4.3 percentage points and 3.8 percentage points higher than that of the industrial enterprises above the designated size.

Specifically, the production of industrial robots, new energy vehicles, integrated circuits and microcomputer equipment grew by 19.1%, 17.3%, 16.2% and 12.7% year on year respectively.

In the fourth quarter, the total value added of the industrial enterprises above the designated size grew by 7.1% year on year, 1.3 percentage points higher than that in the third quarter.

In 2020, the national industrial capacity utilization rate reached 74.5%. In the fourth quarter, the national industrial capacity utilization rate reached 78.0%, 1.3 percentage points higher than that in the third quarter.

In the first eleven months, the profits made by industrial enterprises above the designated size were 5,744.5 billion yuan, up by 2.4% year on year, 1.7 percentage points higher than that in the first ten months.

Service Sector

In 2020, the Index of Services Production was the same as that of 2019.

The value-added of the information transmission, software and information technology services and that of financial services grew by 16.9% and 7.0% year on year respectively, 14.8 percentage points and 4.9 percentage points higher than that of the tertiary industry.

The Index of Services Production grew by 7.7% year on year in the fourth quarter, 3.4 percentage points higher than that in the third quarter.

In December, the Index of Services Production grew by 7.7% year on year.

In the first eleven months, business revenue of service enterprises above the designated size grew by 1.6% year on year, of which that of information transmission, software and information technology services and that of scientific research and technology services grew by 13.5% and 9.9% respectively, 11.9 percentage points and 8.3 percentage points higher than that of service enterprises above the designated size.

In December, the Business Activity Index for services was 54.8%, staying above the expansion range.

Specifically, the Business Activity Index for sectors like air transportation, telecommunication, broadcast, television and satellite transmission services, monetary and financial services and capital market services continued to stay within the high expansion range at 60.0% and above.

From the perspective of market expectation, the Business Activity Expectation Index for services was 60.1%, staying within the high expansion range for six months in a row.

China’s total online retail sales grew 10.9% in 2020 »

Investment

In 2020, the investment in fixed assets (excluding rural households) reached 51,890.7 billion yuan, up by 2.9% over that of the previous year.

Specifically, the investment in infrastructure was up by 0.9%, manufacturing down by 2.2% and real estate development up by 7.0%.

The floor space of commercial buildings sold reached 1,760.86 million square meters, up by 2.6%. The total sales of commercial buildings were 17,361.3 billion yuan, up by 8.7%. The growth of investment in the three industries shifted to positive.

Specifically, the investment in the primary industry went up by 19.5 percent; that in the secondary industry up by 0.1 percent; and that in the tertiary industry up by 3.6%.

The private investment was 28,926.4 billion yuan, up by 1.0%. The investment in high-tech industries grew by 10.6%, 7.7 percentage points higher than the total investment, of which the investment in high-tech manufacturing and high-tech services grew by 11.5% and 9.1% respectively.

In terms of high-tech manufacturing, the investment in pharmaceutical manufacturing and in computers and office devices grew by 28.4% and 22.4% respectively.

In terms of high-tech services, investment in e-commerce services and information services grew by 20.2% and 15.2% respectively.

The investment in the social sector went up by 11.9%, 9.0 percentage points higher than the total investment. Specifically, the investment in the health industry and in the education industry went up by 29.9% and 12.3% respectively.

Foreign Trade

In 2020, the total value of imports and exports of goods was 32,155.7 billion yuan, an increase of 1.9% over the previous year.

The total value of exports was 17,932.6 billion yuan, up by 4.0 percent; the total value of imports was 14,223.1 billion yuan, down by 0.7%. The trade balance was 3,709.6 billion yuan in surplus.

The exports of mechanical and electrical products grew by 6%, accounting for 59.4% of the total value of exports, 1.1 percentage points higher than that of 2019.

The imports and exports of general trade accounted for 59.9% of the total value of the imports and exports, an increase of 0.9 percentage point compared with 2019.

The imports and exports by private enterprises grew by 11.1%, accounting for 46.6% of the total value of the imports and exports, 3.9 percentage points higher than that of 2019.

In December, the total value of imports and exports of goods was 3,200.5 billion yuan, up by 5.9% year on year. Specifically, the total value of exports was 1,858.7 billion yuan, up by 10.9 percent; the total value of imports was 1,341.9 billion yuan, down by 0.2%. The trade balance was 516.8 billion yuan in surplus.

China Consumer Price Index (CPI) in Dec 2020; up 2.5% in 2020

Employment

In 2020, the newly increased employed people in urban areas totaled 11.86 million, which exceeded the expected goal of 9 million and achieved 131.8% of the whole year target.

In December, the surveyed unemployment rate in urban areas was 5.2%, the same as that of 2019. Specifically, the surveyed unemployment rate of major labor force aged from 25 to 59 was 4.7%, the same as the previous year.

In 2020, the average annual surveyed unemployment rate in urban areas stood at 5.6%, lower than the expected target of around 6%.

At the end of 2020, the registered unemployment rate in urban areas was 4.24%, lower than the expected target of around 5.5%. The number of rural migrant workers reached 285.60 million, 5.17 million less than that of 2019 or down by 1.8%.

Specifically, local migrant workers totaled 116.01 million, down by 0.4 percent; outside migrant workers totaled 169.59 million, down by 2.7%. The average monthly income of migrant workers was 4,072 yuan, up by 2.8% over 2019.

Resident Income

In 2020, the nationwide per capita disposable income of residents was 32,189 yuan, a nominal increase of 4.7% over that of 2019, and a real increase of 2.1% after deducting price factors, which was generally at the same pace as the growth of the economy.

In terms of permanent residence, the per capita disposable income of urban households was 43,834 yuan, a nominal growth of 3.5% and a real growth of 1.2% after deducting the price factors.

The per capita disposable income of rural households was 17,131 yuan, a nominal growth of 6.9% and a real growth of 3.8% after deducting price factors.

The per capita disposable income of urban households was 2.56 times that of the rural households, 0.08 less than the ratio of 2019.

The median of the nationwide per capita disposable income was 27,540 yuan, a nominal increase of 3.8% over that of 2019.

Taking the per capita disposable income of nationwide households by income quintile, that of the low-income group reached 7,869 yuan, the lower-middle-income group 16,443 yuan, the middle-income group 26,249 yuan, the upper-middle-income group 41,172 yuan, and the high-income group 80,294 yuan.

In 2020, the nationwide per capita consumption expenditure was 21,210 yuan, a nominal decline of 1.6%, or a real decline of 4.0% after deducting price factors. Specifically, the per capita consumption expenditure of urban households was 27,007 yuan, a nominal decline of 3.8 percent; the per capita consumption expenditure of rural households was 13,713 yuan, a nominal growth of 2.9%.

Top 10 forecast of China digital innovation in 2021-2025

1. Digitalization

COVID-19 has also accelerated digitization of the traditionally less digitized part of the Chinese economy, such as areas requiring physical interactions, and B2B.

Before COVID-19, China was already a digital leader in consumer-facing areas— accounting for 45 percent of global e-commerce transactions while mobile payments penetration was three times higher than that of the US, according to McKinsey.

Based on McKinsey’s mobile surveys of Chinese consumers, about 55 percent are likely to continue buying more groceries online after the peak of the crisis.

Nike’s first-quarter digital sales in China increased 30% yoy after the company launched home workouts via its mobile app while real estate platform Beike said agent-facilitated property viewings on its virtual reality showroom in February increased by almost 35 times compared with the previous month.

2. Declining global exposure

20% of companies surveyed by AmCham China believe COVID-19 may accelerate “decoupling”.

A paper published in February by the European Union Chamber of Commerce highlighted how diversification is now at the top of the agenda for many European companies in China. Global trade and investment has slowed sharply, and the movement of people has become highly restricted.

3. Rising competitive intensity

In China, the top decile of companies capture about 90% of total economic profit, while the ratio is about 70% for the rest of the world, according to McKinsey’s analysis of the world’s top 5,000 companies.

Alibaba’s Freshippo supermarkets surmounted supply constraints and met soaring online orders for fruit. Foxconn’s agility allowed it to switch factory operations to mask production, protecting employees, and enabling the resumption of production earlier than competitors.

4. Consumers come of age

China’s affluent younger generation had never experienced a domestic economic downturn prior to COVID-19. The virus has forced them to think harder about spending, saving, and trade-offs in purchasing behavior.

One survey showed 42% of young consumers intend to save more as a result of the virus. Consumer lending has also declined, while four out of five Chinese consumers intend to purchase more insurance products post-crisis.

China’s post-90s start personal finance management 10 years earlier than their parents

5. Private and social sectors step up

According to McKinsey, the private sector and leading technology companies are playing a more significant role, making large socioeconomic contributions amid the emergence of powerful social institutions that have donated millions to recovery efforts.

CIW Annual Subscribers can download the 158-page report here. 

Globally, the key benefits of 5G other than speed gains (e.g. network slicing, edge computing, and low-latency services) are not widely appreciated, with many companies believing 4G is ‘good enough’.

But China is a clear exception. Early partnerships and trials from local operators have paid dividends, as evidenced by the widespread intent among companies in the country’s industrial sector to utilize 5G.

Chinese operators are also leading the charge for standalone (SA) 5G, which will help deliver the key benefits of 5G for enterprises.

Awareness and knowledge of 5G are rising as hype makes way for reality.

Chinese consumers are among the most excited by the prospect of 5G. They are generally more optimistic than other markets about the benefits of 5G, with greater expectations of lower service costs, innovative services and new connected devices.

In addition, consumers in China are likely earlier adopters of 5G (versus the US, Japan, and Europe) and seem the most willing to pay more for 5G services – a key driver of potential 5G consumer revenue uplift.

4G is by far the dominant mobile technology across China, accounting for more than 80% of total connections (excluding licensed cellular IoT). However, 4G’s share will peak in 2020 (at 82%) as 5G grows significantly.

Several 5G smartphones have been launched, many by local OEMs, and Chinese consumers are among the most keen to upgrade to 5G.

As a result, China will account for 70% of global 5G connections in 2020, and 5G adoption will grow to just under 50% by 2025, placing the country among the leading nations along with South Korea, Japan and the US.

To support this generational shift and drive consumer engagement, Chinese operators are expected to invest more than $180 billion between 2020 and 2025 in mobile capex, roughly 90% of which will be on 5G networks.

Despite some financial headwinds – including market saturation, increasing competition and the country’s ‘speed upgrade and tariff reduction’ policy – China’s mobile revenue remains stable.

Financials will recover in 2020 and 2021, and revenue will rise steadily at around 1% per year to 2025, largely because of growing revenues in enterprise IoT and new 5G services.

By the end of 2019, 1.2 billion people subscribed to mobile services across China.

This accounts for 82% of the region’s population and places China among the world’s most developed markets. As with all advanced markets, adding new subscribers is increasingly difficult, with the cost of reaching rural populations hard to justify against a challenging financial backdrop for operators.

Despite this, there will be around 60 million new subscribers by 2025.

Since 2012, the number of people subscribing to the mobile internet across China has doubled to more than 900 million. By 2025, nearly 260 million people will start using the mobile internet for the very first time, almost halving the unconnected proportion of the population to 22%.

Mobile continues to make a significant contribution to the Chinese economy.

In 2019, mobile technologies and services generated $759 billion of economic value added (5.4% of GDP) across China. This figure will surpass $900 billion by 2024 as the region increasingly benefits from the improvements in productivity and efficiency brought about by the increased take-up of mobile services.

Download the full report here (CIW annual subscribers) including key trends shaping the mobile industry, mobile contributing to economic growth and addressing social challenges, and policies to accelerate digital development. Subscribe here.

According to the preliminary estimates of National Bureau of Statistics of China, the gross domestic product (GDP) of China was 72,278.6 billion yuan in the first three quarters, a year-on-year growth of 0.7% at comparable prices.

The GDP for the first quarter declined by 6.8% year on year, increased by 3.2% for the second quarter, and up by 4.9% for the third quarter of 2020.

By industry, the value-added of the primary industry was 4,812.3 billion yuan, up by 2.3 percent year on year; that of the secondary industry was 27,426.7 billion yuan, up by 0.9 percent; and that of the tertiary industry was 40,039.7 billion yuan, up by 0.4 percent.

The GDP for the third quarter grew by 2.7% quarter on quarter.

Check out China retail sales in Q3 here.

Agricultural Production

In the first three quarters, the value-added of agriculture (crop farming) grew by 3.8% year on year, the same as that of the first half of the year. Specifically, that of the third quarter grew by 3.9%.

The total output of summer grain and early rice totaled 170.10 million tons, a year-on-year growth of 2.24 million tons. The sown area for autumn grain was stable with an increase, major crops for autumn grain grew well and another bumper harvest is expected for autumn grain.

The planting structure was further optimized, with the sown areas of quality rice and soybean continuing to expand. In the first three quarters, the output of milk grew by 8.1%, and that of eggs grew by 5.1%.

The output of pork, beef, mutton and poultry dropped by 4.7%, a decline narrowed by 6.1 percentage points compared with that of the first half of this year.

Specifically, the output of poultry grew by 6.5%, and output of beef, mutton and pork dropped by 1.7%, 1.8% and 10.8% respectively, a decline narrowed by 1.7 percentage points, 0.7 percentage points and 8.3 percentage points compared with that of the first half of this year.

The pork production capacity gradually recovered. By the end of the third quarter, 370.39 million pigs were registered in stock, up by 20.7% year on year, among which, 38.22 million were breeding sows, up by 28.0%.

Check out China’s CPI from January to September 2020.

Industrial Production

In the first three quarters, the total value added of the industrial enterprises above the designated size grew by 1.2% year on year, while that of the first half of this year was down by 1.3%. Specifically, that of the third quarter grew by 5.8% year on year, 1.4 percentage points faster than that of the second quarter.

In September, the total value added of the industrial enterprises above the designated size grew by 6.9% year on year, growing for the sixth consecutive month, or 1.3 percentage points faster than the growth of August, with the month-on-month growth registering 1.18%.

An analysis by types of ownership showed that, in the first three quarters, the value-added of the state holding enterprises grew by 0.9% year on year; that of share-holding enterprises up by 1.5 percent; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan up by 0.3 percent; and that of private enterprises up by 2.1%.

In terms of sector, the value-added of mining went down by 0.6% year on year, a decline narrowed by 0.5 percentage points compared with that of the first half of this year; manufacturing up by 1.7% and the production and supply of electricity, thermal power, gas and water up by 0.8%, compared with a decline of 1.4% and 0.9% respectively in the first half of this year.

In the first three quarters, the value-added of high-tech manufacturing and equipment manufacturing grew by 5.9% and 4.7% year on year.

In terms of the output of products, in the first three quarters, the production of trucks, excavators, and shoveling machinery, industrial robots, and integrated circuits grew by 23.4%, 20.2%, 18.2% and 14.7% year on year respectively.

In the first eight months, the total profits made by industrial enterprises above the designated size totaled 3,716.7 billion yuan, down by 4.4% year on year, a decline narrowed by 3.7 percentage points compared with that of the first seven months.

The Manufacturing Purchasing Managers’ Index stood at 51.5% in September, 0.5 percentage points higher than that of August, staying above the threshold for seven consecutive months.

Service Sector

In the third quarter, the total value added of the tertiary industry grew by 4.3%, or 2.4 percentage points faster than that of the second quarter.

In the first three quarters, of modern service industries, the value-added of the information transmission, software and information technology services, and financial services grew by 15.9% and 7.0% respectively, or 1.4 percentage points and 0.4 percentage points higher than that of the first half of this year.

The Index of Services Production dropped by 2.6% year on year, a decline narrowed by 3.5 percentage points compared with that of the first half of the year; specifically, that of September grew by 5.4%, 1.4 percentage points faster than that of August.

In September, the Business Activity Index for services was 55.2%, 0.9 percentage points higher than that of August. Specifically, the Business Activity Index for transportation, telecommunication, internet and software, and accommodation and catering all stayed above 60%. In terms of market expectation, the Business Activities Expectation Index for service was 62.2%, 0.9 percentage points higher than that August.

Investment in Fixed Assets Shifted from Negative to Positive

In the first three quarters, the investment in fixed assets (excluding rural households) reached 43,653.0 billion yuan, up by 0.8% year on year, shifting from negative to positive for the first time in 2020, while that of the first half of this year was down by 3.1%.

• the investment in infrastructure grew by 0.2%, shifting from negative to positive for the first time in 2020, while that of the first half of 2020 was down by 2.7 percent;
• the investment in manufacturing dropped by 6.5%, a decline narrowed by 5.2 percentage points compared with that of the first half of 2020;
• the investment in real estate development grew by 5.6%, 3.7 percentage points faster than that of the first half of 2020.

The floor space of commercial buildings sold reached 1,170.73 million square meters, down by 1.8%, a decline narrowed by 6.6 percentage points compared with that of the first half of 2020; and the total sales of commercial buildings were 11,564.7 billion yuan, up by 3.7%, while that of the first half of 2020 were down by 5.4%.

The investment in China’s primary industry grew by 14.5%, a growth of 10.7 percentage points higher than that of the first half of the year; the secondary industry down by 3.4%, a decline narrowed by 4.9 percentage points compared with that of the first half of the year; the tertiary industry up by 2.3%, while that of the first half was down by 1.0%.

The private investment reached 24,399.8 billion yuan, down by 1.5%, a decline narrowed by 5.8 percentage points compared with that of the first half of 2020.

The investment in the high-tech industry grew by 9.1%, 2.8 percentage points faster than that of the first half of 2020. Of the total, the investment in high-tech manufacturing and high-tech services grew by 9.3% and 8.7% respectively.

In terms of high-tech manufacturing, the investment in pharmaceutical manufacturing, manufacturing of computers and office devices grew by 21.2% and 9.3% respectively.

In terms of high-tech services, the investment in e-commerce services, information services and services for commercialization of research findings grew by 20.4%, 16.9% and 16.8%.

The investment in social sectors grew by 9.2%, 3.9 percentage points higher than that of the first half of 2020. Of the total, the investment in health sector and education sector grew by 20.3% and 12.7% respectively, or 5.1 percentage points and 1.9 percentage points faster than that of the first half of 2020.

In September, the investment in fixed assets (excluding rural households) grew by 3.37% month on month.

Imports and Exports

In the first three quarters, the total value of imports and exports of goods was 23,115.1 billion yuan, up by 0.7% year on year, shifting from negative to positive for the first time in 2020; specifically, that of the third quarter grew by 7.5% year on year, while the that of the second quarter was down by 0.2%.

The value of exports was 12,710.3 billion yuan, up by 1.8%, and the value of imports was 10,404.8 billion yuan, down by 0.6%. The trade balance was 2,305.4 billion yuan in surplus.

In September, the total value of imports and exports was 3,066.3 billion yuan, up by 10.0% year on year. The value of exports was 1,662.0 billion yuan, up by 8.7 percent; the value of imports was 1,404.3 billion yuan, up by 11.6%.

The trade structure continued to optimize. In the first three quarters, the import and export of general trade accounted for 60.2% of the total value of the imports and exports, 0.8 percentage points higher than the same period of last year.

The exports of mechanical and electrical products grew by 3.2%, while that of the first half of 2020 was down by 2.3%. The imports and exports by private enterprises grew by 10.2%, accounting for 46.1% of the total imports and exports, 4 percentage points higher than the same period of last year.

Employment

In the first three quarters, the newly increased employed people in urban areas totaled 8.89 million, accomplishing 99.8% of the whole-year target.

In September, the urban surveyed unemployment rate was 5.4%, 0.2 percentage points lower than that of August. Specifically, the surveyed unemployment rate of population aged from 25 to 59 was 4.8%, 0.6 percentage points lower than the urban surveyed unemployment rate, the same as that of August.

The urban surveyed unemployment rate in 31 major cities was 5.5%, 0.2 percentage points lower than that of August.

The employees of enterprises worked averagely 46.8 hours per week. By the end of the third quarter, the number of rural migrant workers reached 179.52 million, 3.84 million less than that of the same period last year, down by 2.1% year on year.

Residents Income

In the first three quarters, the nationwide per capita disposable income of residents was 23,781 yuan, a nominal increase of 3.9% year on year, or a real increase of 0.6% after deducting price factors, shifting from negative to positive for the first time in 2020 as that of the first half of 2020 was down by 1.3%.

In terms of permanent residence, the per capita disposable income of urban households was 32,821 yuan, a nominal increase of 2.8%, or a real decrease of 0.3%.

The per capita disposable income of rural households was 12,297 yuan, a nominal increase of 5.8%, or a real increase of 1.6%.

The per capita disposable income of urban households was 2.67 times that of rural households, 0.08 less than that of the same period last year. The median of the nationwide per capita disposable income was 20,512 yuan, a nominal increase of 3.2% year on year.

China saw its first positive quarterly growth in consumer retail sales in Q3 2020

The Index is based on 10 indicators and presents the sum of four individual rankings, comprising:

• enterprise activity
• research proficiency
• infrastructure readiness, and
• government engagement

The Intelligent Cities Index China (ICI-CN) reveals six main clusters of leading cities in AI. The Top 6 Intelligent cities are all located in the East Coast Region. Each of the other three economic regions comprises at least one Top 10 intelligent city.

Beijing is the Intelligent Capital, a leader in research and enterprise activity. The East Coast Challengers Shanghai, Nanjing and Hangzhou are allrounders with strengths across all categories of the ICI.

The Giants of the South Coast, Shenzhen and Guangzhou, are leading centers of government AI engagement and have strong enterprise sectors.

The Rising Centre comprises Wuhan, an up and coming city with strengths in AI research and enabling infrastructure. The Industrial Northeast, Harbin and Shenyang are known for strong AI research.

The Developing West comprises Xi’an and Chengdu, two cities with developing research strengths and favorable policy conditions for attracting AI talent.

The Top 10 Intelligent Cities Ranking presents the aggregate result of the four individual rankings, weighed according to the Intelligent Cities Capabilities Pyramid: Enterprise activity 40%, Research proficiency 30%, Infrastructure readiness 20% and Government engagement 10%.

• 1. Beijing
• 2. Shanghai
• 3. Nanjing
• 4. Guangzhou
• 5. Shenzhen
• 6. Hangzhou
• 7. Wuhan
• 8. Haerbin
• 9. Xi’an
• 10. Chengdu
• 10. Shenyang

The research distinguished Chinese cities into six clusters with distinct profiles and correspond to the major economic regions of China and reflect the historical development of the country. Reflecting the economic profile of the country, three of the six clusters and the Top 6 cities are located in the East Coast region.

CIW Members can download the report here.