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1、2025CHINA MEGA REPORT YOUR COMPREHENSIVE GUIDE TO THE EVOLVING CHINA MARKET:CONSUMERS,INNOVATION,TECHNOLOGY,THE NEW RETAIL,MARKETING,AND THE DIGITAL SPACEHELLO!In 2024,China underwent profound transformation driven by economic challenges,shifting consumer sentiment,native innovations,applied technol

2、ogies,new regulations,and evolving geopolitical demands.2025 is set to be a year of change,disruption,recovery,and evolution.Its a time to adapt,innovate,and prepare for what lies ahead.This report is your comprehensive guide to the evolving China market:consumers,innovation,technology,new retail,ma

3、rketing,and the digital space.To ensure we deliver the most valuable insights,weve gathered perspectives from over 50 China experts,drawing on the collective wisdom of the industry.Thank you for joining us on this journey.Lets go get them!2Follow my LinkedIn for daily China insights https:/chozan.co

4、/https:/.hk/https:/ Dudarenok Sign up to my monthly China Digest newsletterFounder of ChoZan,Keynote Speaker,Book Author,LinkedIn Top Voice E:infochozan.co W:www.chozan.co W: CONTENTS306 07 8 19 26 31 41 53 61 81 94 116 123 145158 170 183 199 200 202 209 215 224 231 236 238 247 259 270 279PART 1:ECO

5、NOMIC OVERVIEW CHINAS ECONOMIC OVERVIEW IN 2024 Macroeconomic Performance Industrial&Sectoral Analysis Labor Market&Demographics Retail&Market Consumption How are Foreign Businesses Doing in China Consumer Mindset&Sentiment CHINAS ECONOMIC OUTLOOK FOR 2025 PART 2:DIGITAL AND TECHNOLOGY CHINAS DIGITA

6、L ECONOMY RISE CHINAS TECHNOLOGY INSIGHTS Artificial Intelligence Extended Reality(XR)Online-Merge-Offline(OMO)Blockchain&Fintech New Energy Vehicles(NEV)PART 3:CHINESE CONSUMERS KEY CONSUMER BEHAVIOR TRENDS IN 2025 Rational&Quality-Driven Consumption Choices Rise of Inner Fulfillment&Emotional Well

7、-Being Travel Takes Center Stage in Consumer Spending Consumers Embrace Comprehensive Health Growing KOC Credibility in Consumer Decisions TOP 5 MOST POPULAR CHINESE CONSUMER PROFILES The Green Connectors(Chinese Millennials)The Aspiration Generation(Chinese Gen Z)Silver-Haired Generation(Chinese Re

8、tirees)Rising Phoenixes(Chinese Women)Modern Pragmatists(Chinese Men)TOP 5 MOST POPULAR CHINESE CONSUMER PROFILES Entertainment-First Consumers Emotional Healing Gurus Travel&Outdoor Enthusiasts Eco-Conscious Buyers Paw-rents:The Fur Family Circle Coffee Connoisseurs PART 4:KEY CONSUMPTION ECONOMIES

9、 IN CHINA TODAY TOP 5 THRIVING CONSUMPTION ECONOMIES IN CHINA The Pet Economy The Green Economy The Sports,Health&Fitness The Smart Home Economy The Personal Finance&Investment EconomyE:infochozan.co W:www.chozan.co W: 287 288 298 309 320 332 340 349 350 351 362 369 380 387CONTENTS4394 395 403 410 4

10、17 428 429 430 441 450 451 459 465 472 478 484492 510 512 519 527 537 545 559 560 568 584614 616 635 670E:infochozan.co W:www.chozan.co W: CRUCIAL INDUSTRY GUIDES Education Industry Beauty&Cosmetics Industry Electronics&Home Appliances Industry Luxury Industry PART 5:THE FUTURE OF RETAIL CHINAS E-CO

11、MMERCE LANDSCAPE AND THE GLOBAL EXPANSION OF CHINESE E-COMMERCE GIANTS Chinas Domestic E-commerce Chinas Overseas E-commerce Chinas Leading E-commerce Giants Alibaba JD.com Pinduoduo Douyin Kuaishou WeChat CHINAS LIVE STREAMING E-COMMERCE REVOLUTION CHINAS SHOPPING FESTIVALS Chinese New Year(CNY)Wom

12、ens Day 618 The Golden Week Double 11 PART 6:CHINAS MARKETING,KOL STRATEGIES,AND SOCIAL MEDIA CALENDAR FOR BRANDS CHINAS DIGITAL MARKETING INSIGHTS CHINAS KOL INSIGHTS AND STRATEGIES CHINA MARKETING CALENDAR 2025 PART 7:LESSONS FROM CHINA WHAT THE WORLD CAN LEARN FROM CHINAS HUMAN-CENTRIC BUSINESS A

13、PPROACH,TECH ECOSYSTEMS,AND AGILE INNOVATION MODELS CHINAS CUSTOMER-CENTRIC AND HUMAN-FOCUSED OPERATIONAL MODEL AND PRODUCT DEVELOPMENT APPROACH CHINAS TECH ECOSYSTEMS CHINAS MANAGEMENT AND LEADERSHIP MODELS 5OUR LEARN FOR/FROM CHINA SOLUTIONS5REACH OUT TO TALK TO OUR TEAM ABOUT YOUR GOALSSOCIAL MED

14、IA MARKETINGWe help localize your messaging,build a strong brand image,and connect with your target audience on platforms like RedNote,WeChat,Douyin,and more.Clients like Crocs trust us to boost their presence in China.INFLUENCER MARKETING&CAMPAIGNSWe create goal-driven social media campaigns and co

15、nnect you with the right KOLs and influencers for impactful collaborations.CHINA RESEARCHWe provide in-depth consumer and market research,trend analysis,and strategic advice to help you make better decisions.Brands like J&J and HSBC trust us to connect the dots in Chinas evolving landscape.CHINA LEA

16、RNING EXPEDITIONSWe organize tailored learning tours to help leaders form world top companies understand Chinas market,tech ecosystems,digital transformation,and competitors.Clients like Coca-Cola,InMobi and Deckers have joined us to get ahead.TRAINING FOR TEAMSWe train global and local marketing,e-

17、commerce,and commercial teams to excel in China.Companies like Disneyland,Richemont,and Shiseido have upskilled their teams with our help.CONSULTING&EXPERT CALLSWe deliver tailored advice and connect you with top industry experts in China to tackle your biggest challenges.Brands like DFS,Adobe,and C

18、olgate-Palmolive have benefited from our support.GOT A QUESTION?DROP US AN EMAIL BY SCANNING THE QR CODESOCIAL COMMERCEWe help brands kickstart and grow their presence in the Chinas social commerce space,especially on platforms like Douyin.TRANSFORMATIVE TECH IN ACTIONDiscover how AI,XR,and robotics

19、 are revolutionizing industries.Explore innovations from companies like DeepSeek,Unitree,and the Six Little Dragons are reshaping customer experiences and driving industry transformation.CHINESE CONSUMER EVOLUTIONGain a deep understanding of Chinas evolving consumer landscape.From Gen Z trends to en

20、gaging aging demographics,discover how to create seamless customer journeys,build brand loyalty,and leverage personalization to connect with modern audiences.THE FUTURE OF RETAILStay ahead in the ever-changing retail landscape with insights into social commerce,livestreaming,and omnichannel strategi

21、es.KEYNOTE SPEAKINGAshley Dudarenok delivers fully customized keynote sessions packed with actionable insights and cutting-edge trends from China.Trusted by clients like Bank of America,BMW,Disney,and more,Ashleys talks cover:E:infochozan.co W:www.chozan.co W: PART 1ECONOMIC OVERVIEWCHINAS ECONOMIC

22、OVERVIEW IN 20247E:infochozan.co W:www.chozan.co W: MACROECONOMICPERFORMANCE8E:infochozan.co W:www.chozan.co W: CHINAS GDP IN 20249Source:National Bureau of StatisticsAccording to Chinas National Bureau of Statistics,in 2024,China has reported full-year economic growth of 5%for 2024.Even though the

23、full-year GDP has met Chinas official target,its GDP growth has stabilized in the first three quarters,reflecting a steady but cautious economic expansion amidst ongoing challenges.CHINA HITS ITS 2024 GDP TARGET BUT WITH SLOWER GROWTH PACE5.4%5.2%2.9%4.3%6.4%4.6%4.9%3.9%5.2%4.8%4.7%6.3%0.4%8.3%3.1%5

24、.3%4.5%4.8%18.7%-6.9%Q1Q2Q3Q4CHINA GDP YEAR-ON-YEAR GROWTH RATE BY QUARTERS20202021202220232024E:infochozan.co W:www.chozan.co W: CHINAS GDP BREAKDOWN 10CHINAS SHIFT TOWARDS A SERVICE AND CONSUMPTION-DRIVEN ECONOMYSource:National Bureau of StatisticsPrimary IndustrySecondary IndustryTertiary Industr

25、y03,0006,0009,00012,00010,4306,7001,25056.6%37.2%6.2%Primary IndustrySecondary IndustryTertiary IndustryTHE ADDED VALUE OF PRIMARY,SECONDARY AND TERTIARY INDUSTRY(IN BILLION USD)CONTRIBUTION RATE TO GDP GROWTHOfficial data shows that the tertiary industry continues to dominate Chinas economic growth

26、 in 2024,with significant contributions from services.While the secondary industry shows moderate growth,the primary sector remains a smaller but stable contributor.This distribution highlights Chinas ongoing shift towards a service-driven economy,with a focus on higher-value sectors for sustainable

27、 growth.Tertiary industry(i.e.services)includes:Information transmission,software,and information technology services(10.9%)Leasing and business services(10.4%)Transportation and warehousing services(7.0%)E:infochozan.co W:www.chozan.co W: CHINAS FOREIGN TRADE11CHINAS RECORD-BREAKING FOREIGN TRADE P

28、ROVIDES BOOST FOR THE ECONOMYEXPORTS Exports totaled RMB 25.45 trillion(USD 3.48 trillion),rising by 7.1%.Source:State Administration of Foreign ExchangeRMB 43.85 TRILLION(USD 5.98 TRILLION)A NEW RECORD HIGH TOTAL IMPORTS AND EXPORTS IN 2024IMPORTS Imports totaled RMB 18.39 trillion(USD 2.5 trillion

29、),up by 2.3%.Chinas imports and exports grew by 5%year-on-year in 2024 to reach RMB 43.85 trillion(USD 5.98 trillion),with the total foreign trade volume setting a new record high,according to official customs data.Overseas exports were one of the few positive factors for Chinas economy,as weak dome

30、stic consumption and the ongoing property sector crisis hindered economic growth.Top 3 Export Categories Electromechanical products(accounting for 59.4%of total exports)Automobiles Textiles&apparelTop 3 Import Categories Consumer goods(esp.clothing(+5.6%),fruits(+8.6%),and wine(+38.8%)Energy product

31、s High-tech componentsE:infochozan.co W:www.chozan.co W: CHINAS INFLATION RATE12WEAK INFLATION IN CHINA REFLECTS FEEBLE DEMAND AND SLUGGISH RECOVERYSource:Trading EconomicsIn 2024,Chinas inflation rate remained relatively stable(although lower than market expectation),but underlying pressures such a

32、s weak domestic demand and declining consumer confidence point to ongoing economic fragility.Chinas economy is navigating a period of sluggish recovery,posing challenges for both domestic growth and foreign businesses looking to enter the market.JanFebMarAprMayJunJulAugSepOctNovDec0.1%0.2%0.3%0.4%0.

33、6%0.5%0.2%0.3%0.3%0.1%0.7%-0.8%CHINAS INFLATION RATE IN 2024(BY MONTH)E:infochozan.co W:www.chozan.co W: CHINAS CURRENCY AND EXCHANGE RATE13THE RELATIVE STRENGTH OF RMB AGAINST OTHER MAJOR CURRENCIES SIGNALS ITS MAINTENANCE OF ECONOMIC STANDINGSource:WindAgainst the backdrop of a strong USD,most dev

34、eloped and emerging market currencies have depreciated against the dollar.However,compared to most currencies,RMBs depreciation against the USD has been relatively small,leading to an appreciation of RMB against a basket of currencies.In 2024,among developed countries,RMB appreciated the most agains

35、t the South Korean won,New Zealand dollar,and Japanese yen,with increases of 10.97%,9.45%,and 7.41%,respectively.USDEURJPYGBPAUDCADNZDSGDKRWCHF-3%0%3%6%9%12%4.64%10.97%0.21%9.45%5.56%6.41%-1.29%7.41%3.41%-2.83%CHANGES IN RMB EXCHANGE RATE AGAINST MAJOR DEVELOPED ECONOMIES CURRENCIES IN 2024E:infocho

36、zan.co W:www.chozan.co W: CHINAS UNEMPLOYMENT RATE14CHINAS URBAN UNEMPLOYMENT RATE DROP SUGGESTS RECOVERY BUT STRUCTURAL CHALLENGES PERSISTSource:National Bureau of StatisticsIn 2024,Chinas urban surveyed unemployment rate averaged 5.1%,0.1%lower than that of the previous year.While the drop is mode

37、st,it indicates gradual recovery in employment as sectors like tech and services continue to drive job creation.However,this level also signals that structural issues such as youth unemployment and sectoral imbalances persist,posing challenges for long-term economic growth.CHINAS UNEMPLOYMENT RATE I

38、N URBAN AREAS IN 20244.9%5.0%5.1%5.2%5.3%2023-122024-012024-022024-032024-042024-052024-062024-072024-082024-092024-102024-112024-125.1%5.0%5.0%5.1%5.3%5.2%5.0%5.0%5.0%5.2%5.3%5.2%5.1%E:infochozan.co W:www.chozan.co W: EXPERT BITES15E:infochozan.co W:www.chozan.co W: JOERG WUTTKEPartner at the DGA G

39、roup and past President of the European Union Chamber of Commerce in ChinaQ:WHAT KEY TRENDS WILL SHAPE CHINAS BUSINESS ENVIRONMENT IN 2025 AND BEYOND?Trading and investing in China will become more complex.Beijings drive for self reliance is already challenging foreign brands,excessive overcapacitie

40、s will drive exports and increase chances that trading partners become more protectionist.Widening definitions on security in policy circles in Washington,Brussels and Beijing will narrow cooperation potentials with Chinese partners.Yet,it is important to engage and invest in China to be what I labe

41、l the Chinese fitness center:speed of lab to market,deep bench of excellent engineers,demanding and brand loyal consumers and risk savvy private entrepreneurs.Foreign business can only benefit from those unique clusters.China might emulate the Japanese economy thirty years ago,sluggish future growth

42、 but the emergence of fantastic domestic technology companies.EXPERT BITE16Q:WHAT SIGNIFICANT CHANGES IN CHINA IN 2024 WILL SHAPE TRENDS FOR 2025?EDWARD TSEFounder and CEO at Gao Feng Advisory One of the significant changes in 2024 is that China has shifted from reactive management to a proactive ap

43、proach in addressing local government debt.Local government debt was a key issue highlighted during the 2024 Central Economic Work Conference.To tackle this,a series of policies were introduced,including a major policy to increase the local debt ceiling by 6 trillion yuan,allowing local governments

44、to replace implicit debts*with explicit,transparent debt.This move will save an estimated 600 billion RMB in interest payments over the next five years.As a result,by the end of 2024,over 300 local government financing platforms(LGFPs)have cleared their debts and stopped their borrowing roles,markin

45、g significant progress in managing local debt risks.Looking ahead,to further reduce debt costs and create a favorable environment for resolving local government debt,it is expected that in 2025,more proactive fiscal policies and accommodative monetary policies will likely to be implemented.These may

46、 include expanding special bond investments to enhance debt repayment capacity and to lower interest rate to reduce interest expenses.*Note:implicit debts refer to off-balance-sheet liabilities,such as debt that local governments have incurred through financing platforms(LGFPs)or non-transparent mea

47、ns,which are not officially recorded in their financial statements.These debts are often less clear,with higher interest payment rate and very hard to managed.E:infochozan.co W:www.chozan.co W: EXPERT BITE17Q:WHAT WAS THE KEY LEGAL TOPIC IN CHINA IN 2024,AND WHY WAS IT SIGNIFICANT?KRISTINA KOEHLER-C

48、OLUCCIAHead of Business Advisory at Woodburn Accountants&Advisors In 2024,one of the most significant topics in Chinas legal and regulatory landscape was the ongoing evolution of data protection and cybersecurity laws.The Personal Data Protection Law(PDPL)was further developed to enhance compliance

49、and individual protections.Regulatory bodies were strengthened,creating a structured enforcement environment and increasing compliance costs but also consumer trust.China aimed to align its regulations with global standards,driven partly by multinational companies pressure.High-profile data breaches

50、 highlighted the need for robust data governance,prompting governmental action and public awareness.As tech companies scaled operations,compliance with new data laws became essential,leading to shifts in business practices,including investment in infrastructure and training.shortened and rephrased f

51、or brevityE:infochozan.co W:www.chozan.co W: EXPERT BITE18ASHLEY DUDARENOKQ:WHAT PRODUCT CATEGORIES ARE PROJECTED TO DECLINE?In 2025 several sectors in Chinas consumer market will continue to decline due to economic pressures and shifting preferences.Luxury goods are cooling as consumers cut back on

52、 discretionary spending.Foreign fast food chains face slower growth amid competition from local players and health-conscious trends.Overseas education services are declining as geopolitical tensions and rising costs deter students.Fast fashion is struggling as sustainability concerns grow,while trad

53、itional retail is being outpaced by e-commerce and livestream shopping.The baby and childcare sector is shrinking due to Chinas falling birth rate,and traditional automobiles are losing appeal as EVs gain traction.High-end real estate,traditional electronics like TVs and PCs are also losing ground.F

54、ounder of ChoZan,Keynote Speaker,x10 Book Author,Linkedin Top Voice E:infochozan.co W:www.chozan.co W: INDUSTRIAL&SECTORAL ANALYSIS19E:infochozan.co W:www.chozan.co W: CHINAS PRIMARY SECTOR20Source:National Bureau of StatisticsCHINA STRENGTHENS ITS AGRICULTURE WITH A NEW RECORD-HIGH GRAIN HARVESTCHI

55、NAS TOTAL GRAIN OUTPUT IN 2018-2024(UNIT:MILLION TON)According to the official data,Chinas agricultural sector has achieved a remarkable milestone,producing a record-breaking 706.5 million tons of grain in 2024,an increase of 1.6%year on year.This reduces the risk of fluctuations in the primary sect

56、or caused by problems such as food shortages,and provide a solid foundation for the stable operation of the entire industrial system.6506656806957102018201920202021202220232024706.50695.41686.53682.85669.49663.84657.89E:infochozan.co W:www.chozan.co W: CHINAS SECONDARY SECTOR21Source:National Bureau

57、 of StatisticsMANUFACTURING LEADS IN INDUSTRIAL PRODUCTION GROWTH,WITH SHARE-HOLDING ENTERPRISES OUTPERFORMING OTHERSYEAR-ON-YEAR GROWTH RATE OF VALUE-ADDED INDUSTRIES IN 2024(BY THREE INDUSTRIES)For Chinas secondary sector,the strong growth in manufacturing and share-holding enterprises signals Chi

58、nas continued industrial strength,but also reflects the need for state-owned enterprises to adapt and improve efficiency.As the secondary sector becomes more diversified,private enterprises play a crucial role in driving innovation and market dynamism.MiningManufacturing0.0%1.8%3.5%5.3%7.0%5.3%6.1%3

59、.1%Production and supply of electricity,heat power,gas and water0.0%1.8%3.5%5.3%7.0%5.3%6.1%4.2%Private enterprisesState-holding enterprisesShare-holding enterprisesYEAR-ON-YEAR GROWTH RATE OF VALUE-ADDED INDUSTRIES IN 2024(BY OWNERSHIP)E:infochozan.co W:www.chozan.co W: CHINAS TERTIARY SECTOR22CHIN

60、AS TERTIARY SECTOR GROWS,HIGHLIGHTING KEY SERVICE INDUSTRY EXPANSIONSGROWTH RATE OF THE ADDED VALUE OF SERVICES IN 2024(BY CATEGORY)In 2024,Chinas service sector grew by 5.0%,with notable increases in information technology services(10.9%),leasing&business services(10.4%),and transportation(7.0%).Th

61、is reflects the continued expansion of high-demand industries,signaling a shift toward a more service-oriented economy.0%3%6%9%12%5.5%6.4%7%10.4%10.9%Information Transmission,Software&Information Technology ServicesWholesale&RetailLeasing&Business ServicesTransport,Storage&Postal ServicesAccommodati

62、on&CateringSource:National Bureau of StatisticsE:infochozan.co W:www.chozan.co W: EXPERT BITES23Q:WHICH MANUFACTURING INDUSTRIES IN CHINA ARE THRIVING OR WILL THRIVE,AND WHICH WILL BE LEFT BEHIND?For decades China was able to supply products at low cost to the whole world.In order to transition to h

63、igh quality manufacturing,China tried to upgrade the whole value chain to high tech.By now,you find an inter-connected supply chain which works well to produce high end products in a very efficient way.The production capacity exceeds the domestic demand.To keep this industry running,factories need t

64、o find ways to export their products.At the same time,global sourcing teams move from China to South East Asia,looking for lower cost and reducing risk.It is very hard to find a similar production friendly environment in any other country.We will see how many companies really close their China opera

65、tions.As long as the manufacturing requirements remain as high,China can compete.This is certainly relevant to the EV industry.As soon as the manufacturing resolves to simple automated and manual assembly processes,the production cost in South East Asia will be more attractive to investors.Labor int

66、ensive products such as sports shoes,clothes,textile will probably be even too expensive in Asia and move to Africa.Import tariffs are a big challenge to Chinese manufacturing.They can lead an entire industry to be relocated out of China at increased cost which is borne by the end consumer.The relat

67、ed governments need to find a way to protect their own economy as well as support their own domestic consumers.FRANCIS KREMERVP at JULI Automation,Expert in EV industryE:infochozan.co W:www.chozan.co W: EXPERT BITES24E:infochozan.co W:www.chozan.co W: Q:WHAT INDUSTRIES IN CHINA DO YOU THINK WILL SEE

68、 THE MOST SIGNIFICANT GROWTH AND TRANSFORMATION BY 2025?PETER HELISInternational Executive At Invest Guangzhou By 2025,several industries in China,especially in the Greater Bay Area,are set for significant growth and transformation.The autonomous vehicle sector is rapidly advancing,with companies li

69、ke Baidu and Pony.ai leading in robotaxi services and logistics.Regulatory support is enabling broader testing and commercial operations.By 2025,Level 3 and Level 4 autonomous vehicles may become more common in urban areas,reshaping mobility and urban planning.The eVTOL sector in Guangzhous Huangpu

70、District is also poised for growth,with companies like EHang and XPeng AeroHT at the forefront.EHang has received airworthiness certifications,and XPeng AeroHT is preparing for mass production.Urban air mobility could revolutionize short-distance transport,reducing congestion and offering sustainabl

71、e travel options.The Huangpu District is actively building vertiports to support this growth.Chinas push for semiconductor self-sufficiency is gaining momentum,with companies like CanSemi expanding production capacities for high-end chips.By 2025,significant strides in chip manufacturing technology

72、are expected,reducing reliance on foreign tech and strengthening the local supply chain.With ambitious carbon neutrality goals,China is heavily investing in renewable energy and clean technologies.The Greater Bay Area is emerging as a hub for innovations in solar,wind,and hydrogen energy.This sector

73、 is also advancing in energy storage,smart grid technologies,and green building initiatives,influencing both manufacturing and urban development.The biotech sector is booming,particularly in genomics,personalized medicine,and drug development.Companies like BeOne(BeiGene)are expanding operations,foc

74、using on cancer treatments.By 2025,China may contribute more to global healthcare innovations,with a focus on affordable treatments and AI-driven drug discovery.The Greater Bay Area could become a leading region for medical research and clinical trials.Finally,robotics and advanced manufacturing are

75、 expanding,driven by Industry 4.0 technologies and the need for automation.The application of AI and industrial IoT is making Chinas manufacturing more competitive and innovative,especially in the Greater Bay Area.shortened and rephrased for brevity EXPERT BITES25Q:WHICH INDUSTRIES IN CHINA GREW OR

76、DECLINED IN 2024?The global economys strength benefited export-driven manufacturing while housing and consumption lagged.High-end manufacturing includes autos,including EVs and hybrids,air conditioners,locomotives,and electronic instruments.Industries that have struggled with output in 2024 include

77、iron ore,pig iron,crude steel,and tractors.The pickup in domestic and international travel is a positive sign of consumers slumber slowly retreating.Emphasis on the technologies needed to drive Chinas economy in the years to come will continue.BRENDAN AHERNChief Investment Officer at KraneShares E:i

78、nfochozan.co W:www.chozan.co W: LABOR MARKET&DEMOGRAPHICS26E:infochozan.co W:www.chozan.co W: CHINAS POPULATION OVERVIEW27Source:WorldometerDECLINING TOTAL POPULATION BRINGS LONG-TERM IMPACT FOR KEY SECTORSCHINAS YEARLY POPULATION GROWTH RATE IN 2012-2024By the end of 2024,Chinas total population re

79、ached 1.408 billion,a decrease of 1.39 million compared to the end of 2023.Chinas total population has declined for 3 consecutive years.The sharp drop brings long-term challenges to sectors like healthcare,education,and the consumer market,signaling the need for policy adjustments to mitigate econom

80、ic and demographic impacts.2012201320142015201620172018201920202021202220232024-0.23%-0.18%-0.09%0.02%0.18%0.32%0.47%0.59%0.57%0.59%0.65%0.69%0.68%E:infochozan.co W:www.chozan.co W: CHINAS WORKING-AGE POPULATION28Source:World Economic ForumSHRINKING WORKING-AGE POPULATION POSES PRESSURE ON LABOR SUP

81、PLY0250500750100020112012201520302050700830911922925EstimateCHINAS WORKING-AGE POPULATION AND ESTIMATE(IN MILLION)Chinas working-age population(ages 16 to 59)is steadily shrinking,with projections showing a significant drop from 925 million in 2011 to 700 million by 2050.This poses serious challenge

82、s for labor supply,economic growth,and social welfare systems,underscoring the need for labor force participation incentives and structural economic shifts.E:infochozan.co W:www.chozan.co W: CHINAS AGING POPULATION29Source:AskCI,National Bureau of Statistics DEEPENING POPULATION AGING COMES WITH BOT

83、H CHALLENGES AND OPPORTUNITIESCHINAS PROPORTION AND POPULATION AGED 60 AND ABOVE IN 2018-2024China has a substantial elderly population,and since officially becoming an aging society in 2000,the rate of aging has steadily intensified.Official data shows that by 2024,the population aged 60 and over r

84、eached 310.31 million,comprising 22%of the total population.This rapid aging signals rising pressure on healthcare,pensions,and social services,while also creating potential market opportunities in elderly care,health tech,and age-friendly consumer products.08,00016,00024,00032,0000%5.5%11%16.5%22%2

85、018201920202021202220232024ProportionNumber of 60-year-olds and above(Unit:10,000)31,03129,69728,00426,73626,40225,38824,94922%21.1%19.8%18.9%18.7%18.1%17.9%22%21.1%19.8%18.9%18.7%18.1%17.9%E:infochozan.co W:www.chozan.co W: EXPERT BITES30Q:WHAT ARE CHINAS TOP 3 CHALLENGES IN THE NEXT 3 YEARS,AND TH

86、EIR BUSINESS IMPLICATIONS?Who will care for the aging population?The aging crisis in China isnt just about declining productivityits also an economic,political,and emotional challenge.Young people feel a strong desire but lack the financial means to care for their elders.Without intervention,hundred

87、s of millions of under-cared-for elderly could create a profound crisis that touches every aspect of society.How will you nurture innovation and entrepreneurship?The last few years have been particularly hard on risk-takers,dampening the entrepreneurial spirit China is known for.Reviving a culture o

88、f innovation will be essential to sustain long-term growth and competitiveness.How will you navigate conflictboth internal and external?As the global landscape shifts and Chinas economy slows,the potential for internal dissatisfaction and external tensions rises.Managing these challenges effectively

89、 will require both economic stability and a clear strategic vision.ZAK DYCHTWALD Author,HBR expert,and CEO of Young China Group and YCG BridgeWorks E:infochozan.co W:www.chozan.co W: RETAIL&MARKET CONSUMPTION31E:infochozan.co W:www.chozan.co W: CHINAS CONSUMPTION MARKET32Source:Bank of ChinaTHE SINK

90、ING MARKET IS A MAJOR CONSUMPTION FORCE IN CHINACHINAS CONSUMPTION MARKET STRUCTURE IN 2024The sinking market refers to tier-3 and lower-tier cities,county-level towns,and rural areas,which make up approximately 48%of total consumption.While this group occupies 70%of Chinas population,it brings mark

91、et potentials in catering,entertainment,education and other services.The Sinking Market48%Tier-2 cities18%New tier-1 cities22%Tier-1 cities12%Incl.Chengdu,Hangzhou,Chongqing,Wuhan,Nanjing,Suzhou,Changsha,etc.Incl.Beijing,Shanghai,Shenzhen,GuangzhouIncl.Tianjin,Taiyuan,Harbin,Zhengzhou,Xining,etc.Inc

92、l.Lanzhou,Haikou,Wuhu,Yinchuan,Kaifeng,Zhoushan,etc.E:infochozan.co W:www.chozan.co W: CHINAS HOUSEHOLD INCOME33Source:National Bureau of StatisticsHOUSEHOLDS INCOME ROSE BUT SAVINGS WERE INSUFFICIENT FOR CONSUMPTION GROWTHPER CAPITA DISPOSABLE INCOME(IN USD)OF URBAN AND RURAL RESIDENTS NATIONWIDE I

93、N 2024In 2024,Chinas per capita disposable income increased by 5.3%to RMB 41,314(USD 5,626).Judging from the data alone,per capita disposable income has indeed increased,but excess savings are still mainly concentrated in high-income groups,while middle-and low-income groups still have insufficient

94、consumption capacity.02,0004,0006,0008,000NationwideUrban ResidentsRural Residents3,1487,3795,6262,9547,0575,34020232024E:infochozan.co W:www.chozan.co W: CHINAS RETAIL SALESCHINAS CONSUMPTION ENGINE REMAINS UNDERPOWERED,NECESSITATING FURTHER ACTIONS34Source:China Securities JournalIn 2024,the total

95、 retail sales of consumer goods were 48,789.5 billion RMB(about 6,725.88 billion USD),up by 3.7%year on year,of which the retail sales of consumer goods other than automobiles up by 3.8%,reflecting cautious recovery in domestic consumption,buoyed by policy support for consumer spending and steady de

96、mand for everyday goods.YEAR-ON-YEAR GROWTH RATE OF TOTAL RETAIL SALES OF CONSUMER GOODS IN 20240.0%2.0%4.0%6.0%8.0%2023 Dec2024 Jan-Feb2024 Mar2024 Apr2024 May2024 Jun2024 Jul2024 Aug2024 Sep2024 Oct2024 Nov2024 Dec3.7%3.0%4.8%3.2%2.1%2.7%2.0%3.7%2.3%3.1%5.5%7.4%E:infochozan.co W:www.chozan.co W: C

97、HINAS ONLINE RETAIL35Source:S&P GlobalRETAIL SAW HIGHER ONLINE PENETRATION ACROSS DIVERSE CATEGORIESONLINE PENETRATION TREND OF DIFFERENT PRODUCT CATEGORIES IN 2020-2025EThe growing online penetration across diverse product categories signals a robust shift to digital commerce in China,with sectors

98、like health&beauty and home electronics seeing the most significant growth.This highlights the need for companies and brands to further optimize e-commerce strategies and enhance their digital presence.202020212022202320242025EBeverage&TabaccoFoodHome productsApparel&FootwearHealth&BeautyElectronics

99、&Home appliancesE:infochozan.co W:www.chozan.co W: CHINAS CONSUMER GOODS36Source:National Bureau of StatisticsNECESSITIES AND TELECOM GOODS ARE MOST PRIORITIZED IN RETAILCONSUMER GOODS YEAR-ON-YEAR GROWTH RATE BY CATEGORY IN 2024 JAN-SEPTheres a strong growth in essentials and tech-related items,lik

100、e telecommunication equipment(11.9%)and food(9.9%),while luxury goods and discretionary items saw declines.This demonstrates a consumer focus on necessities and connectivity over non-essentials in 2024.Grain,oil and foodBeverageTobacco and liquorClothes,shoes,hats and textilesCosmeticsGold,silver an

101、d jewelryDaily necessitiesSports&recreational articlesHousehold appliancesMedicinesCultural and office appliancesFurnitureTelecommunication equipmentPetroleum and petroleum productsMotor vehiclesBuilding and decoration materials-6-3036912-2.6%-2.1%2.3%11.9%1.1%-2.9%4.7%4.4%9.7%2.2%-3.1%-1.0%0.2%6.8%

102、4.5%9.9%E:infochozan.co W:www.chozan.co W: EXPERT BITES37Q:WHAT KEY CONSUMPTION TRENDS WILL DEFINE CHINESE CONSUMERS IN 2025,AND HOW CAN BRANDS ADAPT?JOSH GARDNERCEO at Kung Fu Data In 2025,Chinese consumers are likely to continue the trend of prioritizing personalization,premiumisation and sustaina

103、bility.The“best bang for your buck”philosophy will be stronger than ever.Digital integration will remain a cornerstone,with e-commerce and social commerce driving purchasing behaviors.Health and wellness will play a significant role,as consumers seek products that enhance both physical and mental we

104、ll-being.Additionally,experience-driven consumption will grow,with younger generations valuing services and exclusive offerings over material goods.Brands can adapt by accelerating digital transformation,offering tailored and culturally resonant experiences and committing to sustainability initiativ

105、es.Leveraging data to provide personalised recommendations,enhancing online and offline shopping experiences and aligning with government initiatives to engage middle-and lower-income segments will also be key strategies.E:infochozan.co W:www.chozan.co W: EXPERT BITES38Q:HOW DO YOU SEE CHINAS ECONOM

106、Y,CONSUMER SPENDING,AND DIGITAL LANDSCAPE EVOLVING IN 2025?PASCAL COPPENSPartner at nexxworks In 2025,the Chinese government aims to further stimulate domestic consumption,focusing more on improving peoples livelihoods than immediate spending growth.This long-term strategy is expected to show initia

107、l results in 2025,though major consumption recovery remains unlikely.However,the debut economy may generate excitement with the launch of new products,services,and technologies.E:infochozan.co W:www.chozan.co W: EXPERT BITES39Q:WHAT DO YOU BELIEVE WILL BE THE DEFINING CONSUMER TRENDS IN RETAIL BY 20

108、25,BOTH IN CHINA AND GLOBALLY?JESSICA GLEESONJoy Spending:Chinese consumers seek reasons to believe in economic recovery,yet headwinds make them cautious.For many,this is the longest economic winter of their adult lives.Brands looking to inspire spending must go beyond products,delivering experience

109、s and communities that bring joy after the transaction.In 2025,I will watch joy spending in health and wellness,pets,travel,immersive entertainment,and home fragrance.In uncertain times,purchases in these areas provide a sense of wellbeing.Im also curious about the evolution of road trips and glampi

110、ng in China.This is Chinas first road trip generation,with widespread adoption of electric vehicles making driving affordable,and aspirations to explore nature encouraging travel.This trend transforms roadside retail and food experiences,as local governments and retailers strive to make their highwa

111、y stops appealing.CEO at Experiential Retail E:infochozan.co W:www.chozan.co W: EXPERT BITES40Q:WHERE DO YOU SEE CHINESE CONSUMPTION AND DEMAND HEADING OVER THE NEXT 3 TO 5 YEARS?In 2025,we believe the success of auto and home appliance trade-in subsidy policy raises the probability of the program b

112、eing broadened to further categories.Auto and household purchase subsidies explicitly raise consumption while implicitly raising employment as these two industries employee a large number of people.EV and hybrid giant BYD has more than 700,000 employees for example.While China continues to benefit f

113、rom export-driven manufacturing,the threat of US tariffs highlights the benefits of raising domestic consumption.Raising consumption involves more than raising house prices and consumer confidence but addressing structural issues such as the minimal social safety net.The Chinese governments pivot to

114、 addressing these issues should lead to a steady rebound in domestic consumption in 2025 and beyond.BRENDAN AHERNChief Investment Officer at KraneShares E:infochozan.co W:www.chozan.co W: HOW ARE FOREIGN BUSINESSES DOING IN CHINA TODAY?41E:infochozan.co W:www.chozan.co W: 42CHINA STAYS A PRIORITIZED

115、 MARKET IN BUSINESS INVESTMENTSource:AmCham ChinaESTIMATED CHINA ENTRIES IN 2025202420251%1%1%2%3%3%11%9%37%37%41%43%6%5%Planning to decrease investmentsNo investment expansion planned1-10%11-20%21-25%26-50%Above 50%ESTIMATED INCREASE IN INVESTMENT IN CHINA OPERATIONS FOR 2025According to the Chinas

116、 business climate survey done by AmCham China in Nov 2024,overall,responding companies investment expectations remain largely unchanged from 2024,with just over half anticipating increasing investment in China operations in 2025,showing that the strategic prioritization of the China market remains a

117、 key driver in business.E:infochozan.co W:www.chozan.co W: 43CHINA STAYS A PRIORITIZED MARKET IN BUSINESS INVESTMENT,COMPARED TO OTHER EMERGING MARKETSSource:KearneyCHINA AS A KEY DESTINATION FOR BUSINESSES According to the 2024 Kearney Foreign Direct Investment Confidence Index(FDICI)report,China s

118、till ranks first among the 25 emerging markets most attractive to investors over the next three years.This indicates that while global investment flows are shifting,China continues to be a key destination for foreign investment,reinforcing its importance in the global economic landscape.CHINA RANKS

119、THE MOST ATTRACTIVE EMERGING MARKETS FOR INVESTORS OVER THE NEXT THREE YEARS,FOLLOWED BY THE UAE,SAUDI ARABIA,INDIA,BRAZIL,AND MEXICOCHINA RANKS AMONG THE TOP THREE IN THE 2024 GLOBAL FOREIGN DIRECT INVESTMENT CONFIDENCE INDEX ALONGSIDE THE UNITED STATES AND CANADAE:infochozan.co W:www.chozan.co W:

120、44COMPANIES NEED TO TAKE A MORE CAUTIOUS APPROACH IN THE CHINESE MARKETSource:AmCham ChinaCHINAS BUSINESS ENVIRONMENT WITH PRESSURECOMPANIES TWO-YEAR BUSINESS OUTLOOK IN CHINAAccording to the Chinas business climate survey done by AmCham China in Nov 2024,companies two-year business outlook is less

121、optimistic.While China remains an important market for foreign businesses,concerns over increased competition and geopolitical tensions are affecting long-term confidence.202420252%6%16%20%37%37%31%28%14%9%202420252%3%9%16%24%30%38%35%27%17%PessimisticSlightly pessimisticNeutralSlightly optimisticOp

122、timisticCOMPETITIVE PRESSUREUS-CHINA RELATIONSE:infochozan.co W:www.chozan.co W: 45MOST SECTORS VIEW GROWTH POTENTIAL IN THE CHINESE MARKETTHE BIGGEST OPPORTUNITIES OF ENTERING CHINA IN 2025TOP THREE IMPORTANT OPPORTUNITIES FOR CHINA BUSINESS(BY SECTOR)FOR TECH AND R&D SECTORFOR CONSUMER SECTORFOR S

123、ERVICE SECTORGrowth in Chinas domestic consumption,and the rise of an increasingly sizable and affluent middle class(41%)Growth in Chinas domestic consumption,and the rise of an increasingly sizable and affluent middle class(59%)Globalization of Chinese companies and increased outbound investment(51

124、%)Ongoing economic and market reforms(34%)Adoption of digital technologies(33%)Ongoing economic and market reforms(41%)Ongoing economic and market reforms(47%)Increasing consumer demand for foreign brands and quality(33%)Growth in Chinas domestic consumption,and the rise of an increasingly sizable a

125、nd affluent middle class(25%)NO.1NO.2NO.3E:infochozan.co W:www.chozan.co W: 46RISING US-CHINA TENSIONS REMAINS THE TOP CHALLENGE FOR FIVE CONSECUTIVE YEARSTHE BIGGEST CHALLENGES OF ENTERING CHINA IN 2025Ongoing geopolitical tensions between the US and China have led to increasing trade restrictions,

126、supply chain disruptions,and regulatory hurdles for foreign businesses.RISING TENSIONS IN US-CHINA RELATIONS(63%)12345Source:AmCham ChinaCOMPETITION FROM STATE-OWNED CHINESE COMPANIES(39%)REGULATORY COMLIANCE RISKS(26%)INCONSISTENT REGULATORY INTERPRETATION(25%)RISING LABOR COSTS(24%)Domestic Chines

127、e companies,particularly state-backed enterprises,benefit from government support,preferential policies,and strong local market knowledge,making it difficult for foreign firms to compete.Chinas regulatory landscape is complex and evolving,with strict requirements on data security,labor laws,and anti

128、-monopoly regulations.Businesses must stay agile to navigate frequent policy updates.Regulatory enforcement varies,and policies like cybersecurity rules and anti-espionage laws have been applied inconsistently,leaving foreign firms vulnerable to unexpected legal risks and operational challenges.Whil

129、e China remains a key global manufacturing hub,wages have been rising steadily,especially in coastal regions.Businesses must adapt by investing in automation,shifting operations to lower-cost inland cities,etc.E:infochozan.co W:www.chozan.co W: 47MORE IMPORTANCE SHOULD BE ATTACHED TO LOCAL PARTNERSH

130、IPS,COMPLIANCE ANDCOST OPTIMIZATIONSTRATEGIES FOR ENTERING CHINA IN 2025Foreign firms could prioritize forming strategic partnerships with local businesses or government-linked entities to circumvent some trade restrictions,reduce supply chain disruptions,and enhance market credibility.LEVERAGE LOCA

131、L PARTNERSHIPS TO NAVIGATE GEOPOLITICAL TENSIONS12345ADAPT TO DOMESTIC COMPETITION THROUGH INNOVATION AND NICHE TARGETINGINVEST IN REGULATORY EXPERTISE AND LOCAL COMPLIANCE NETWORKSENGAGE IN PROACTIVE GOVERNMENT RELATIONS AND POLICY ADVOCACYOPTIMIZE OPERATIONS AND EXPLORE EMERGING MARKETS FOR COST E

132、FFICIENCYTo compete effectively,foreign firms should innovate and focus on niche markets or premium segments where they can offer differentiated products or services that cater to unmet needs.Building a team of Chinese legal professionals or consulting firms that specialize in navigating the evolvin

133、g regulatory landscape is crucial.Engaging in policy advocacy,especially through local chambers of commerce and trade organizations,can help ensure that their concerns about regulatory ambiguities or inconsistent enforcement are addressed.Foreign companies should invest more in automation technologi

134、es or other cutting-edge tech to reduce dependence on manual labor and enhance operational efficiency.E:infochozan.co W:www.chozan.co W: EXPERT BITES48Q:WHAT SHOULD FOREIGN FIRMS ENTERING CHINA IN 2025 PRIORITIZE FOR BUILDING SUCCESSFUL LOCAL TEAMS?MIRIAM WICKERTSHEIMCompanies planning to enter Chin

135、a in 2025 should think carefully.The market is competitive,heavily regulated,and unlikely to yield quick profits.Entry should be based on a robust In China for China or In China for Asia strategy,supported by a well-researched,localized business plan.Prioritize clear goals and roles,followed by hiri

136、ng people who meet both technical and cultural requirements.For a startup team,regular exchanges between the local team and HQ are crucial.During market entry,hiring a foreign national with extensive China experience,Chinese language skills,and a strong understanding of HQ culture can be advantageou

137、s for close communication.Other factors include the need for industry expertise,regulatory knowledge,target customer base,and brand positioning.Foreign hires typically fill senior management,operations,or CFO roles,while local talent is better suited for sales and HR positions.General Manager at Dir

138、ect HR E:infochozan.co W:www.chozan.co W: EXPERT BITES49Q:WHAT ADVICE WOULD YOU GIVE TO COMPANIES LOOKING TO BUILD STRONGER PARTNERSHIPS BETWEEN CHINA AND EUROPE?FABIEN PACORYExecutive VP CCIFC French Chamber of Commerce and Industry in China Time is“optichannel”.So,by prioritizing creative commerce

139、,you will increase loyalty and advocacy in a service-driven market.Its crucial to develop immersive and futuristic physical shopping experiences with playfulness and gamification,but you must conduct identity mapping to understand how your clients exist across different digital platforms.Feedback is

140、 important,ratings and reviews,authenticity and transparency.Remember to seek Local expertise,to collaborate with local experts to navigate complex regulations effectively.Familiarize yourself with the legal and regulatory frameworks in both regions to ensure compliance.Especially Implement secure d

141、ata-sharing management practices to facilitate collaboration.As commerce increasingly shifts to digital platforms with AI,the importance of maintaining a human touch growswhether through enhancing the experience itself or empowering consumers with greater control.E:infochozan.co W:www.chozan.co W: E

142、XPERT BITE50Q:IS THERE STILL A MARKET FOR WESTERN SMALL AND MID-SIZED BRANDS IN CHINA?HOW CAN THEY STAND OUT?I do believe there is still a huge opportunity for foreign brands in China in the right categories.Set your expectations and be prepared to play a long game.You probably wont be able to compe

143、te on price point,country of origin matters less,so figure out what exactly sets you apart and lean into it.Start small,identify and validate one or two hero products.Yes,Chinese consumers are incredibly digitally savvy but that doesnt mean you can forget about offline,in fact,figuring out how to do

144、 offline in new,innovative ways might be your key to success.Localize beyond imagery,beyond naming demonstrate a sophisticated understanding of Chinese heritage and culture in your products and marketing.OLIVIA PLOTNICKFounder at Wai SocialE:infochozan.co W:www.chozan.co W: EXPERT BITES51E:infochoza

145、n.co W:www.chozan.co W: Q:WHAT CAN FOREIGN BUSINESSES LEARN FROM CHINESE BRANDS ABOUT CULTURAL RELEVANCE AND IMPACT?To build culturally relevant and impactful brands in China,foreign businesses should start by embracing the countrys diversity and complexity.Finding a unique brand identity that reson

146、ates with Chinese consumers requires navigating subcultures and balancing local cultural adaptation with authenticity.Its also essential to keep pace with Chinas rapid evolution,staying attuned to shifting consumption trends,values,and shopping behaviors.Thoughtfully addressing societal dynamicssuch

147、 as the tension between Chinas collective heritage and the growing rise of individualismcan foster deeper connections.Leveraging consumer insights research and crafting brand experiences that resonate with these dynamics are critical.Finally,brands should reimagine their offerings in line with cultu

148、ral shifts,such as the move from materialistic aspirations to a desire for spiritual enrichment and meaningful experiences,particularly in luxury categories.VLADIMIR DJUROVICCEO of Labbrand GroupEXPERT BITESGABOR HOLCHFounder of East-West Leadership and Author of“Dragon Suit”Q:WHICH INDUSTRIES VALUE

149、 EXPATRIATE LEADERSHIP IN CHINA 2024 TO 2025?Anything with chips and codes inside is one area where partnership is urgent and vital,as geopolitical factors drive wedges between Chinese solutions and their American,European and worldwide counterparts.Even technical leaders must act as merchants of sp

150、ecific solutions,and strategic leaders must keep their eyes open for opportunities to match ideas,funding,resources and talent.Another is the service sector,as China urgently needs growth in sectors such as tourism,hospitality,financial,legal,environmental and consulting services,where advanced econ

151、omies have superior expertise and experience.Foreign service firms did much better in China than industrial or manufacturing ones,and pushing that trend forward has lots of untapped potential.52E:infochozan.co W:www.chozan.co W: CONSUMER MINDSET&SENTIMENT53E:infochozan.co W:www.chozan.co W: CHINAS C

152、ONSUMER PRICE INDEX54Source:Global Market MonitorCPI REMAINS LOWER THAN FORECASTS DUE TO SLOW ECONOMYAccording to Chinas official data,Consumer Price Index(CPI)averaged 102.55 points from 2021 to 2024.In December,CPI increased by 0.1%year-on-year,the slowest growth rate since April 2024.This indicat

153、es underlying concerns about economic growth and consumer confidence.102102.75103.5104.25105JanFebMarAprMayJunJulAugSepOctNovDec102.9102.9103.5103.8103.6103.2102.7102.9103.0103.1104.2103.2CHINAS MONTHLY CPI PERFORMANCE IN 2024E:infochozan.co W:www.chozan.co W: CHINAS CONSUMER CONFIDENCE55Source:Trad

154、ing EconomicsCONSUMER CONFIDENCE MAINTAINS DOWNWARD TRAJECTORY FOR A WHILE NOWCHINAS CCI(CONSUMER CONFIDENCE INDEX)IN DEC 2023-NOV 2024(NEUTRAL=100)Consumer Confidence Index(CCI)in China decreased to 86.2 points in November from 86.9 points in October of 2024,and the index dropped considerably since

155、 2022 and performed under the neutral level.This would further challenge Chinas post-pandemic recovery and long-term growth prospects.8586.2587.588.7590Dec 2023 Jan 2024 Feb 2024 Mar 2024 Apr 2024 May 2024 Jun 2024Jul 2024Aug 2024 Sep 2024 Oct 2024 Nov 202486.286.985.785.886.086.286.488.289.489.188.

156、987.6E:infochozan.co W:www.chozan.co W: CHINAS CONSUMER SENTIMENT ON FINANCE56Source:NIQCONSUMER SENTIMENT ON FINANCIAL POSITION HAS CONTINUED DROPPING IN 2024In 2024,a higher percentage of consumers felt“worse off”than“better off”in their financial position.The gap between those feeling worse off a

157、nd better off remains large,indicating ongoing financial pessimism,which could affect consumer spending in the long run.YEAR-ON-YEAR GROWTH OF CONSUMER SENTIMENT TOWARDS THEIR FINANCIAL POSITIONMid-2022Jan 2023Mid-2023Jan 2024Mid-202430%28%29%26%25%32%34%34%39%37%Worse offBetter offE:infochozan.co W

158、:www.chozan.co W: CHINAS CONSUMER SATISFACTION57Source:National School of DevelopmentONLINE SHOPPING SATISFACTION REMAINS HIGH BOOSTING DIGITAL COMMERCE POTENTIALCONSUMER SATISFACTION(BY CATEGORY/SECTOR)IN 2024HousingEducationHealthcareFoodTabacco&AlcoholClothingHome AppliancesEntertainmentTravelTra

159、nsportationOnline ShoppingOffline ShoppingEnvironment037.575112.5150136.0137.0144.0135.0129.0133.0139.0138.0115.0128.0122.0125.0128.0The overall consumer satisfaction level is 131,reflecting moderate satisfaction across sectors,while online shopping significantly outperforming others,showing consume

160、rs strong confidence and concentrated focus on online shopping.E:infochozan.co W:www.chozan.co W: EXPERT BITES58Q:HOW SHALL BRANDS BETTER CONNECT EMOTIONALLY WITH CHINESE CONSUMERS IN 2025?SAMI WONG Psychologist and Founder of 3DripsPlayability and versatility are the key to establishing a stronger

161、connection with Chinese consumers.The economic downturn has already taken its toll on many of them,making it crucial to incorporate light-hearted and entertaining elements into the products and services.At the same time,the versatility that brands offer is also associated with the possibilities of l

162、ife.Brands are expected to inspire Chinese consumers not only with their products and services,but also with their tenacity.E:infochozan.co W:www.chozan.co W: EXPERT BITES59Q:HOW CAN FOREIGN BRANDS SUCCEED IN CHINA AND ADAPT TO TRENDS AND CONSUMER PREFERENCES IN 2025?Foreign brands aiming to thrive

163、in China in 2025 should adopt a long-term strategy,building their presence step-by-step with a focus on high-ROI initiatives at first.While a full omnichannel approach may not be feasible initially,prioritizing gradual,consistent,measurable progress is key.Brands must stay agile,aligning with evolvi

164、ng market dynamics and consumer behaviors,while maintaining a clear vision and steadily building their presence over time.AURELIEN RIGARTManaging Director&Co-Founder at IT Consultis(ITC)E:infochozan.co W:www.chozan.co W: EXPERT BITES60Q:HOW CAN BRANDS BUILD TRUST AND LOYALTY WITH CHINESE CONSUMERS I

165、N 2025?NISHTHA MEHTACorporate Innovation Coach,CollabCentral ConsultingE:infochozan.co W:www.chozan.co W: There are no quick fixes.If you take quick fix,chasing short term KPIs and operations alone,which is what many did in 2024 and further lost out;its like band-aid which can cover up the bruises f

166、or short term protection,but deeper recovery needs long term investment,muscle training with refuelling.This is like growing pains China is in an absolute beautiful transition and will come out stronger!In this change and transition phase,have a deeper review,trim away the old and equip yourself wit

167、h new shaper axe and longer term oiling for growth -food for thought snippets.Value exchange offering price,function,style wont cut ice.“What are you investing in us which is visible,truly impactful and supports our communities and groups,not just me for limited gratification?”eg more focus on healt

168、hier,90%-100%toxic free ingredients and safer materials from food to skin care to connected devices.New business model connect involve the Chinese consumers in the value chain made in China for China.For example,governments 24 plenary session has announced the trade-in policy going full swing in 25.

169、Brands need to co-create programs that facilitate trade-in,from home appliances to packaging to hardware and join the long-term recycling chain.CHINAS ECONOMIC OUTLOOK FOR 202561E:infochozan.co W:www.chozan.co W: CHINAS DIRECTION:3RD PLENARY SESSION IN 202462Source:KPMG,Griffith AsiaKEYWORDS INCLUDE

170、 DEVELOPMENT,SECURITY,EDUCATION AND INNOVATIONCOMPARISON OF KEY TERMS FREQUENCY IN THE THIRD PLENARY OF 18TH AND 20TH CPC CENTRAL COMMITTEE015304560ReformDevelopmentEconomyPeople/livelihoodSecurityOpennessDemocracyTech/scienceInnovationEducationNational defenseRiskReunificationFinance/fiscal/tax2344

171、57771216212242535512311131313624343759Third plenary of 18th CPC Central Committee(2013)Third plenary of 20th CPC Central Committee(2024)The Third Plenary Session of the 20th Central Committee of the Communist Party of China(CPC)was held in Beijing from July 15 to 18,2024.During this session,the Cent

172、ral Committee adopted a resolution aimed at further deepening comprehensive reforms to advance Chinese modernization.The meeting emphasized the importance of high-quality development,technological innovation,and economic security,reflecting the CPCs strategic priorities for the nations future.E:info

173、chozan.co W:www.chozan.co W: KEY HIGHLIGHTS OF THE 3RD PLENARY SESSION63CHINAS GOVERNMENT PUTS EMPHASIS ON NQPFSource:KPMG,The National Committee of the Chinese Peoples Political Consultative ConferenceKEY TAKEAWAYSIMPLICATIONSBalanced Support for Private and Public SectorsThe government continues t

174、o support SOEs(state-owned enterprises)while enhancing its support for the private sector,signaling a move towards more balanced growth,fostering innovation,and economic diversification.Boosting Domestic Consumption Amid Economic ChallengesAddressing key social issues like unemployment and income in

175、equality aims to stimulate long-term domestic demand,which could support sustainable economic growth if successfully implemented.Green Transformation as a National PriorityWhile carbon neutrality remains a major challenge,efforts in sustainability and green industries present new growth opportunitie

176、s.Building a National Innovation EcosystemEmphasis on technology and innovation to drive future industries highlights Chinas commitment to becoming a global leader in high-tech sectors,offering opportunities for both state and private investment in strategic industries.New Quality Productive Forces(

177、NQPFs)as a CornerstoneThis concept focuses on fostering advanced productivity characterized by high-tech innovation,efficiency,and quality,moving beyond traditional economic growth models.NQPF:A NEW GROWTH CONCEPT PROPOSED BY THE GOVERNMENTE:infochozan.co W:www.chozan.co W: KEY INDUSTRIES IN NQPF AN

178、D THEIR OUTLOOK645G IS SET TO GROW INTO MATURITYSource:21Economics,GSMA1.002 BILLION 5G MOBILE PHONE SUBSCRIPTIONS BY THE END OF 2024203060%8%11%6%15%OthersArchitecture&Real estateFinanceTelecommunicationsManufacturingINDUSTRIES BENEFITING FROM 5G DEVELOPMENT BY 2030(ESTIMATED)Chinas rapidly expandi

179、ng 5G network,with 1.002 billion 5G mobile phone subscriptions,is driving broad economic benefits.By 2030,5G is expected to contribute USD 260 billion to the economy.The rapid and maturing sector suggests immense growth potential,revolutionizing industries like smart factories and IoT-enabled produc

180、ts.E:infochozan.co W:www.chozan.co W: 65HUMANOID ROBOTS DEMAND INCREASES IN MULTIPLE FIELDSSource:CAICT,CYZONE047.595142.5190-12%-4%4%12%2018201920202021202220232024032.56597.51300%10%20%30%40%2018201920202021202220232024Annual growth rate(%)Market size(100 million USD)INDUSTRIAL ROBOTS MARKET SIZE

181、AND GROWTH(2018-2024)SERVICE ROBOTS MARKET SIZE AND GROWTH(2018-2024)With Chinas aging workforce,particularly those aged 65 and above,the increasing labor costs and labor shortages have pushed the demand for industrial and service robots.It is expected that the market size will continue to expand in

182、 the next few years.The application demand of humanoid robots in the fields of home services,educational care,medical assistance,intelligent manufacturing,etc.is increasing,and the market potential is huge.KEY INDUSTRIES IN NQPF AND THEIR OUTLOOKE:infochozan.co W:www.chozan.co W: 66GENERATIVE AI THR

183、IVES AND OFFERS TAILORED EXPERIENCE FOR USERSSource:CNNIC230 MILLION USERS OF GENERATIVE AI PRODUCTS BY JUNE 2024600 BILLION RMB(ABOUT 82.84 BILLION USD)TOTAL VALUE OF THE CORE INDUSTRIES CENTERED ON GENERATIVE AIBy June 2024,Chinas generative AI user base reached 230 million,reflecting widespread a

184、doption and industry integration.With over 4,500 companies and core industry value nearing RMB 600 billion,Chinas robust AI ecosystem spanning chips,algorithms,and applications signals strong growth potential and offers users a diverse range of options and tailored experiences.Platforms like DeepSee

185、k and Kimi keep pushing this trend and adoption forwards.KEY INDUSTRIES IN NQPF AND THEIR OUTLOOKE:infochozan.co W:www.chozan.co W: 67NEV WILL FOCUS ON SPACE,DRIVING,AND USABILITY EXPERIENCESSource:China EV100 Low Carbon Institute0102030402018201920202021202220232024E40%31.6%27.6%14.8%5.8%4.9%4.4%CH

186、INAS NEW ENERGY VEHICLE MARKET PENETRATION RATE IN 2018-2024According official data,Chinas new energy vehicle(NEV)market is projected to reach a 40%penetration rate by 2024,with growth rates far surpassing those of traditional vehicles.The sector is poised for continued innovation,focusing on key us

187、er experiences such as space,driving,smart features,and overall usability,which will further drive adoption and market expansion.KEY INDUSTRIES IN NQPF AND THEIR OUTLOOKE:infochozan.co W:www.chozan.co W: 68CLOUD COMPUTING KEEPS EXPANDINGSource:CAICTCHINAS CLOUD COMPUTING MARKET SIZE IN 2020-2025E(UN

188、IT:BILLION USD)0408012016020202021202220232024E2025E152.40114.6385.3662.7244.5128.83Chinas cloud computing market is estimated to see a 34.3%year-on-year increase in 2024,driven by AI advancements.This rapid growth highlights the sectors potential,with the market expected to surpass RMB 2.1 trillion

189、 by 2027,signaling a new wave of innovation and business opportunities in cloud services and applications.KEY INDUSTRIES IN NQPF AND THEIR OUTLOOKE:infochozan.co W:www.chozan.co W: 69LOW-ALTITUDE ECONOMY GROWS STEADILY AND NEEDS BETTER INFRASTRUCTURESource:36kr,CCIDCHINAS LOW-ALTITUDE ECONOMY MARKET

190、 SIZE AND GROWTH RATE IN 2021-2026E040801201600%10%20%30%40%20212022202320242025E2026EGrowth rateMarket size(billion USD)144.95117.0091.2768.9051.4839.6523.9%28.2%32.5%33.8%29.8%9.3%23.9%28.2%32.5%33.8%29.8%9.3%Low-altitude economy,made up of manned or unmanned aviation services below 1,000 meters(3

191、,280 feet),will soar from USD 68.90 billion in 2023 to USD 144.95 billion in 2026,according to the Civil Aviation Administration of China.While the low-altitude market grows steadily,infrastructure including low-altitude flight support,operation and maintenance needs to be further complemented and i

192、mproved.KEY INDUSTRIES IN NQPF AND THEIR OUTLOOKE:infochozan.co W:www.chozan.co W: 2023 Jan-Dec 2024 Jan-FebJan-MarJan-AprJan-MayJan-JunJan-JulJan-AugJan-SepJan-OctJan-NovJan-Dec-10.6%-10.4%-10.3%-10.1%-10.2%-10.2%-10.1%-10.1%-9.8%-9.5%-9%-9.5%MEANWHILE,SOME INDUSTRIES CONTINUE TO SLOWDOWN70REAL EST

193、ATE STRUGGLES IN 2024 AND LIKELY BEYONDGROWTH RATE OF INVESTMENT IN REAL ESTATE DEVELOPMENTIn 2024,Chinas real estate market remained weak,with both sales and investment declining.While government policies have temporarily stimulated demand,the real estate sector may continue to face challenges in t

194、he year ahead,requiring further strategic policy adjustments and long-term efforts to restore consumer and investor confidence.Source:National Bureau of StatisticsE:infochozan.co W:www.chozan.co W: 71CATERING FACES A BROADER DECLINE ACROSS FOOD TYPES,BRINGING CHALLENGES IN THE HEALTH ECONOMYSource:S

195、ohuPER CAPITA CONSUMPTION IN THE CATERING SECTOR(BY FOOD TYPES,UNIT:RMB)0255075100OverallChinese cuisineHot potGrillFast foodDrinksWestern cuisineAsian cuisine95.093.520.322.877.280.586.842.195.494.221.623.179.284.287.642.697.293.024.525.184.986.787.843.2202220232024 H1The per capita consumption in

196、the catering sector has shown a downward trend across all food types.In the first half of 2024,it declined to RMB 42.1,a decrease of 1.2%from 2023.As food is a fundamental necessity and a key indicator of consumer confidence,this decline suggests potential challenges in economic health and purchasin

197、g power.INDUSTRIES FACING SLOWDOWNE:infochozan.co W:www.chozan.co W: 72SMALL HOME APPLIANCES BEARS SIGNIFICANT PRESSURESource:NIQRMB 695.7 BILLION DOWN 0.4%(ABOUT USD 94.74 BILLION)TOTAL SALES OF HOME APPLIANCES IN JAN-SEP 2024Brown GoodsWhite GoodsKitchen and Bath AppliancesSmall Appliances-12.4%-2

198、.4%3.9%2.1%YEAR-ON-YEAR GROWTH RATE OF HOME APPLIANCES TYPES(JAN-SEP 2024 VS.JAN-SEP 2023)(Electronics equipment for entertainment,e.g.TV and audio equipment)(Large household equipment,e.g.fridges and washing machines)Chinas home appliance sector has experienced a slight overall decline,with small a

199、ppliances seeing the largest drop of 12.4%.This indicates that consumers are more cautious towards spending on non-essential items like small appliances.The market is likely entering a more subdued periodINDUSTRIES FACING SLOWDOWNE:infochozan.co W:www.chozan.co W: EXPERT BITES73E:infochozan.co W:www

200、.chozan.co W: JOERG WUTTKEPartner at the DGA Group and past President of the European Union Chamber of Commerce in ChinaQ:WHAT KEY FACTORS SHOULD COMPANIES CONSIDER FOR SUSTAINABLE INVESTMENTS IN CHINA AMID THE CURRENT ECONOMIC AND GEOPOLITICAL LANDSCAPE IN 2025?Foreign companies should be realistic

201、 and anticipate a slower growth development in China,partly due to an economy struggling with debt and the problems in the largest part of the economy:the real estate sector and construction.Overcapacities hurt profit margins even though volume sales might increase in 2025.The drive for foreign comp

202、anies to operate in China for China will be more important than ever.The fat days are gone,but the biggest China risk for business still is not be present in China.There is no second China.EXPERT BITES74Q:WHAT KEY TRENDS IN CHINA ARE YOU WATCHING FOR 2025,AND WHY ARE THEY SIGNIFICANT?As we step into

203、 2025,were witnessing a time when AI plays a larger role in daily lives than ever beforeespecially in Chinas online environment,where companies like Bytedance are frontrunners in making AI accessible to regular internet users through smart and fun editing apps.In the online world,this means we all h

204、ave to be more critical of the images we see,the videos we watch,and the stories we amplify,as chatbots and AI-generated content are more ubiquitous than ever before.In the offline world,I believe this is leading to a bigger need for authentic brands,real stories,and genuine connections.Its going to

205、 be an interesting time where,after a decade and a half of social media and AI revolution in China,we will see more reflection and reality checks.MANYA KOETSESinologist&China Social Trend Watcher,Whats on WeiboE:infochozan.co W:www.chozan.co W: EXPERT BITES75E:infochozan.co W:www.chozan.co W: ALVIN

206、FOOCo-Founder at NASDEX and MetafyedQ:LOOKING AHEAD TO 2025,WHAT KEY OPPORTUNITIES DO YOU FORESEE IN CHINA ACROSS ANY FIELD OR SECTOR?Chinas economy is set to unveil significant opportunities in 2025 and beyond,despite navigating economic challenges and regulatory changes.Key sectors poised for grow

207、th include advanced manufacturing and automation,where a shift towards high-tech production is driven by companies like Xiaomi and Huawei,focusing on robotics and industrial AI.In the realm of green energy and carbon neutrality,Chinas ambition to achieve carbon neutrality by 2060 bolsters the market

208、 for electric vehicles,solar,and wind energy,with leaders like CATL and BYD leading the charge.The acceleration of AI,big data,and cloud computing further enhances sectors like finance and healthcare,with major players such as Baidu and Alibaba Cloud at the forefront of innovation.Additionally,the b

209、iotech and healthcare sectors are booming due to an aging population,while the digital yuan is set to transform finance,with companies like Ant Group and Tencent paving the way.These sectors will shape Chinas economic future,while traditional industries may face challenges.EXPERT BITES76Q:DO YOU EXP

210、ECT 2025 TO BE A POSITIVE YEAR FOR CHINA,AND WHY OR WHY NOT?MARTINA FUCHSBusiness Journalist,Co-Founder of Frequency School,Board Member of Montreux Jazz Festival China 2025 will be the Year of the Snake in Chinese zodiac,associated with wisdom,growth and transformation.Chinas economy hopes to regai

211、n momentum,fueled by a series of stimulus policies rolled out over the last couple of months.However,the worlds second-largest economy stands at a critical juncture and will have to balance domestic reforms with the uncertainty surrounding international trade and diplomacy triggered by the re-electi

212、on of U.S.President Donald Trump.E:infochozan.co W:www.chozan.co W: EXPERT BITES77Q:WHAT ECONOMIC TRENDS IN CHINA SHOULD INVESTORS WATCH FOR 2025?BRENDAN AHERNChief Investment Officer at KraneShares In 2024,Chinas economy was driven by export-driven manufacturing as domestic consumption remained tep

213、id.The decline in housing prices has had a significant negative effect on consumer confidence due to high household investment in real estate while weighing on the real economy,as lower construction prices mean fewer construction workers,plumbers,electricians,real estate agents,etc.The Chinese gover

214、nment made a significant policy pivot in September 2024 that will continue in 2025.The economic policy base case announced in 2024 focused on housing,cleaning up the balance of local government,and consumer trade in subsidies for auto and home appliances is apt to be expanded.We believe there is amp

215、le“dry powder”for policymakers to broaden policy support as needed.E:infochozan.co W:www.chozan.co W: EXPERT BITE78Q:WHAT REGULATORY CHANGES SHOULD BUSINESSES IN CHINA PREPARE FOR IN 2025,AND HOW CAN THEY STAY COMPLIANT AND COMPETITIVE?Here are some important areas to prepare for,along with strategi

216、es for maintaining compliance and competitiveness in 2025.Enhanced Data Protection:With stricter data protection regulations,businesses must implement robust data governance frameworks and invest in data security technologies.Regular audits will ensure ongoing compliance.Antitrust and Competition:An

217、titrust scrutiny will likely intensify,especially in technology and e-commerce.Businesses should review and adjust practices to avoid anti-competitive behaviors and conduct internal training on competition laws.Labor and Employment:Reforms in labor laws may strengthen worker protections.Companies sh

218、ould stay informed about changes and adjust HR policies accordingly,including training on employee rights.Green and Sustainable Practices:Enforceable regulations on environmental sustainability and carbon neutrality are expected.Investing in sustainable technologies and developing environmental mana

219、gement systems will be crucial.Financial Regulations:Financial regulations,particularly in fintech and cryptocurrency,will likely evolve.Staying informed and implementing compliance programs will help businesses navigate stricter oversight.E-commerce and Consumer Protection:Continued growth in e-com

220、merce will drive changes in consumer rights and product safety.Establishing compliant marketing practices and enhancing customer service will build trust and loyalty.Cross-border Trade:Shifting trade policies and tariffs require agile supply chain management.Conducting risk assessments and staying u

221、pdated on trade agreements will help mitigate potential impacts.shortened and rephrased for brevityKRISTINA KOEHLER-COLUCCIAHead of Business Advisory at Woodburn Accountants&Advisors E:infochozan.co W:www.chozan.co W: 79 WANT TO TALK TO MY TEAM?IF YOU LIKE THIS REPORT YOULL LOVE OUR NEWSLETTERSCAN T

222、HE QR CODE AND JOIN MY FREE MONTHLY NEWSLETTER FOR LATEST CHINA DIGITAL INSIGHTSSCAN THE QR CODE TO ARRANGE A FREE CONSULTATION ABOUT YOUR CHINA PROJECTE:infochozan.co W:www.chozan.co W: 80E:infochozan.co W:www.chozan.co W: RECOMMENDED READINGPART 2DIGITAL AND TECHNOLOGY80DIGITAL AND TECHNOLOGYCHINA

223、S DIGITAL RISE,KEY INNOVATIONS,AND TECH LEADERS TO WATCH IN 2025E:infochozan.co W:www.chozan.co W: DEVELOPMENT OF TECH INNOVATIONS IN CHINA81The nations innovation-driven development strategy,implemented in 2012,has propelled it to become a global innovator.43%OF CHINAS GDPTHE DIGITAL ECONOMY The sc

224、ale of Chinas digital economy is estimated to grow to 57 trillion RMB(about 7.86 trillion USD)in 2024.The share of the digital economy in the countrys GDP rose to43%,surging up from 15%of GDP in 2008.GLOBAL INNOVATION INDEX RANKING201220241 trillion3.6 trillionCHINA R&D EXPENDITURE (RMB)TRIPLED+RANK

225、20121Switzerland2Sweden3Singapore4Finland5The UK34CHINARANK20241Switzerland2Sweden3USA4The UK5Singapore11CHINARANK+23CHINA HAS BECOME A GLOBAL TECH POWERHOUSESource:WIPOE:infochozan.co W:www.chozan.co W: AI-POWERED DIGITALIZATION84AI is an omni-use technology that will drive changes across hundreds

226、of industries and tasks simultaneously,both cognitive and physical.While most technologies were job creators and job destroyers at the same time,the explicit goal of AI is to take over human tasks and thereby decimating jobs.Industrial revolution took over century to spread beyond Europe and the US,

227、while AI is already been adopted all across the world.THE FOUNDATIONSUNDERLYING TECHNOLOGIESFIRST APPLICATIONSARTIFICIAL INTELLIGENCE(AI)1.CHIPS&SEMICONDUCTORS 2.QUANTUM COMPUTERS 3.ROBOTICS 4.5G/6G 5.NEW MATERIALS 6.XR1.DATA 2.NLP 3.COMPUTER VISION 4.BLOCKCHAIN 5.SECURITY1.INTERNET 2.FINANCE 3.RETA

228、IL 4.EDUCATION 5.BIOTECH&HEALTH 6.AUTONOMOUS WITH ADVANCED AI CAPABILITIES,SECTOR-SPECIFIC APPLICATIONS ARE MADE POSSIBLEInsights by Ashley DudarenokE:infochozan.co W:www.chozan.co W: AI INNOVATION EXAMPLE85TENCENTS AI INNOVATION COMBINED WITH AGRICULTURE Goose language translation:Tens of millions

229、of pieces of goose language data.Geese survival rates are up+30%.Beta testing the first batch of 5,000 geese in Guizhou.There are plans to introduce it to over 200,000 geese in the future.HIGHLIGHTSAI+AGRICULTURETencent Goose Face Recognition An AI-powered system that helps farmers monitor and manag

230、e geese by recognizing individual birds based on facial features.This technology enables precise tracking of growth,health,and movement,improving farm efficiency and disease prevention while reducing manual labor.E:infochozan.co W:www.chozan.co W: AI INNOVATION EXAMPLE86IFLYTEKS AI INNOVATION IN EDU

231、CATION IMPROVES TEACHING EFFICIENCY The AI-led innovative education services of iFLYTEK are now utilized in 3,600 schools across 28 provincial-level administrative regions.iFLYTEK AI Class provide:Electronic intelligent blackboard,voice assistant for teachers,pushes teaching content to students pads

232、,and assigns different homework based on students conditions after class.HIGHLIGHTSAI+EDUCATIONiFLYTEK AI Class leverages AI to provide personalized learning experiences.It enhances teaching efficiency with AI-driven tutoring,automated assessments,and adaptive learning paths,helping students improve

233、 performance while supporting educators with data-driven insights.E:infochozan.co W:www.chozan.co W: UNDERLYING TECHNOLOGIES87AI ADVANCES THROUGH STRONG KEY TECHNOLOGIESTHE FOUNDATIONSUNDERLYING TECHNOLOGIESFIRST APPLICATIONSARTIFICIAL INTELLIGENCE(AI)1.CHIPS&SEMICONDUCTORS 2.QUANTUM COMPUTERS 3.ROB

234、OTICS 4.5G/6G 5.NEW MATERIALS 6.XR1.DATA 2.NLP 3.COMPUTER VISION 4.BLOCKCHAIN 5.SECURITY1.INTERNET 2.FINANCE 3.RETAIL 4.EDUCATION 5.BIOTECH&HEALTH 6.AUTONOMOUS E:infochozan.co W:www.chozan.co W: UNDERLYING TECHNOLOGY SHOWCASE88CASE STUDY:SEMICONDUCTORS,QUANTUM COMPUTING AND ROBOTICSTOP 3:TAIWAN,KORE

235、A,USASEMICONDUCTORSQUANTUM COMPUTINGTOP 3:USA,MAINLAND CHINA,EUTSMCTaiwan Semiconductor Manufacturing Company(TSMC)produces 90%of the worlds most advanced processor chips.QUANTUM CHIP FROM CASThe Center for Excellence in Quantum Information and Physics under the Chinese Academy of Sciences(CAS)has d

236、elivered a 504-qubit superconducting quantum computing chip in April 2024.Xiaohong is primarily aimed at developing measurement and control systems for quantum computers.ROBOTICSTOP 3:USA,MAINLAND CHINA,JAPANX-ROBOTAt the 2024 Zhongguancun Forum Annual Conference in Beijing,numerous service robots w

237、ere showcased,including naked-eye 3D aerial imaging robots,embodied intelligent humanoid robots,bionic humanoid robots,and medical robots,most of which have already been applied in real-world scenarios.E:infochozan.co W:www.chozan.co W: UNDERLYING TECHNOLOGY SHOWCASE89CASE STUDY:5G/6G,NEW MATERIALS

238、AND XR5G/6GTOP 3:MAINLAND CHINA,USA,JAPANChina Mobile has launched the worlds first 6G satellite into orbit.China will launch its first commercial 6G network by 2030.4G(100 Mbps)is 3.5 hours,6G-7 seconds(speed thats 2000 times faster,up to 200 Gbps).WORLDS FIRST 6G SATELLITENEW MATERIALSXRTOP 3:MAIN

239、LAND CHINA,USA,GERMANYTOP 3:USA,JAPAN,MAINLAND CHINANEW MATERIALS IN 2024An advanced in-car display system that projects real-time navigation,driving assistance,and key vehicle data onto the windshield.It enhances safety and convenience for better road awareness.FEIFAN R7-AR-HUD AUGMENTED REALITY HE

240、AD-UP DISPLAYThe matrix curtain wall can be used as a door head and brand image wall.The array arrangement changes dynamically,and the size,shape and can be customized.E:infochozan.co W:www.chozan.co W: LEARNING FROM SUCCESSES90IMPORTANCE AND IMPLICATIONSChinas advanced digital infrastructure(e.g.,5

241、G and super-app ecosystems)supports over 1 billion internet users,making it an ideal testing ground for innovative solutions and consumer engagement strategies.ACCESS TO A LARGE AND DIGITALLY ADVANCED MARKET12PIONEERING TECHNOLOGIES AND ECOSYSTEMSChinese tech giants like Alibaba,Tencent,and Huawei h

242、ave built integrated ecosystems blending e-commerce,fintech,and AI,providing lessons on achieving scale and synergy that global brands can replicate.STRATEGIC ADVANTAGE IN EMERGING TECHNOLOGIES3China leads in quantum computing,robotics,and XR,offering global firms the chance to partner with or bench

243、mark against some of the most innovative solutions in these fields.EFFICIENT SCALING STRATEGIES4Chinese companies demonstrate rapid iteration and agile scaling practices,providing practical insights into market entry,product adaptation,and customer acquisition in competitive environments.INSIGHTS IN

244、TO CONSUMER BEHAVIOR IN DIGITAL ENVIRONMENTS5Chinas success in integrating online and offline(OMO)experiences highlights how digital touchpoints shape consumer decisions,offering brands ideas on creating seamless omni-channel strategies.Insights by Ashley DudarenokE:infochozan.co W:www.chozan.co W:

245、LEARNING FROM FAILURES91IMPORTANCE AND IMPLICATIONSIndustries such as EVs and solar power have shown how over-reliance on government subsidies and external funding can lead to unsustainable business practices,highlighting the need for brands to focus on building robust business models.OVER-RELIANCE

246、ON GOVERNMENT SUPPORT12CHALLENGES IN DATA LOCALIZATIONMissteps in adhering to Chinas stringent data security and localization laws have hindered some foreign ventures.Learning from these helps businesses navigate regulatory challenges effectively.INSUFFICIENT ECOSYSTEM INTEGRATION3Many companies ent

247、ering China without integrating into local platforms(like WeChat or Alibaba)faced limited visibility and failed to compete with local players.UNDERESTIMATING COMPETITION AND SPEED4Chinas rapid market dynamics and fierce competition have caused slow-moving global brands to lose out.Learning to adapt

248、to Chinas“speed of innovation”is crucial for success.MISJUDGING CONSUMER PREFERENCES5Global brands that failed in China often underestimated the importance of localization,such as Starbucks initial resistance to tea-based drinks,which delayed market penetration.Insights by Ashley DudarenokE:infochoz

249、an.co W:www.chozan.co W: EXPERT BITES92E:infochozan.co W:www.chozan.co W: ASHLEY DUDARENOKQ:WHICH CITIES ARE CHINAS LEADING INNOVATION HUBS THAT YOU ADVICE EVERYONE TO VISIT?Chinas innovation scene is thriving.Here are a few cities behind Beijing and Shanghai you might want to put on your map.Hangzh

250、ou is leading in e-commerce and fintech,with Alibaba using AI for hyper-personalized shopping experiences.Shenzhen is the hardware capital,churning out everything from smart devices to drones.Guangzhou is making waves in biotech,focusing on pioneering medical devices and pharmaceuticals to enhance h

251、ealthcare access.Chengdu is a creative hub for gaming and animation,home to companies crafting immersive experiences that captivate audiences.Wuhan,too,stands out in AI research and development,with universities and tech firms driving breakthroughs in machine learning.Xian is emerging in aerospace a

252、nd defense tech,with significant investments in R&D to advance Chinas capabilities.Suzhou is a green tech and advanced manufacturing hub,focusing on renewables and smart industries.Chongqing is a testing ground for smart logistics and autonomous vehicles,reshaping urban mobility.These cities showcas

253、e Chinas diverse and dynamic innovation ecosystem,making them must-visit destinations for tech enthusiasts.Founder of ChoZan,Keynote Speaker,x10 Book Author,Linkedin Top Voice EXPERT BITES93Q:WHICH CHINESE COMPANIES AND SECTORS ARE BEST POSITIONED FOR INTERNATIONAL SUCCESS THIS YEAR,AND WHY?Im very

254、bullish on Chinas companies in the consumer technology space and FMCG that grow abroad.Now,they arent going to America and Western Europe because they worry about rising Sinophobia and the threat of sanctions and tariffs,so they are expanding into the Global South.Companies like Meituan are expandin

255、g their delivery services in Saudi Arabia.Xiaomi is selling mobile phones in India and BYD is offering cars all over South East Asia and Australia.These companies are offering great quality products at reasonable prices.For countries that worry more about inflation and getting the best technology an

256、d products to their citizens at a decent rate more succumbing to exaggerated fears of national security,they are welcoming Chinese companies expansion.SHAUN REINAuthor of“The Split:Finding the Opportunities in Chinas Economy in the New World Order”E:infochozan.co W:www.chozan.co W: 94Photo Dyana Win

257、g So via UnsplashCHINAS DIGITAL ECONOMY RISEAN OVERVIEW OF HOW IT ACHIEVED TODAYS SUCCESSE:infochozan.co W:www.chozan.co W: CHINAS DIGITAL ECONOMY95INTRODUCTIONSource:CNNIC2024 marks the 30th anniversary of Chinas full internet access and a year of deepening the integration of the digital and real e

258、conomies.Chinas digital economy continues to make strides,with significant progress in internet user numbers and applications in a wide range of industries.This milestone underscores Chinas rapid adoption of the internet,which has enabled transformative changes across industries,paving the way for i

259、ncreased efficiency,innovation,and economic development.The digital economy refers to the economic activities that are based on or supported by digital technologies and the internet.This includes industries such as e-commerce,digital finance,online entertainment,telecommunications,and digital servic

260、es like logistics and marketing.Essentially,the digital economy is the backbone of modern economic transformation,where businesses and consumers increasingly rely on digital tools and platforms for transactions,communication,and service delivery.E:infochozan.co W:www.chozan.co W: CHINAS DIGITAL ECON

261、OMY SIZE96CHINAS SURGING DIGITAL SECTOR DRIVES NATIONWIDE TRANSFORMATIONSource:CAICT,AskCICHINAS DIGITAL ECONOMY SCALE(UNIT:TRILLION USD)Chinas digital economy is experiencing accelerated growth,with the market size projected to reach 63.8 trillion RMB(about 8.75 trillion USD)in 2024.This rapid expa

262、nsion reflects the increasing integration of digital technologies across industries,positioning the sector as a key driver of economic transformation and innovation.0.002.254.506.759.002018201920202021202220232024E8.757.776.886.245.374.914.29E:infochozan.co W:www.chozan.co W: CHINAS ONLINE USERS SCA

263、LE9778.6%INTERNET PENETRATION RATE IN CHINA BY DEC 2024 As of December 2024,Chinas internet user base reached 1.108 billion,with an internet penetration rate of 78.6%,according to a report released by the China Internet Network Information Center.The number of online payment users hit 1.029 billion,

264、while online shoppers totaled 974 million.China continues to lead the world in online retail sales and mobile payment adoption,showcasing its dominance in the digital economy.CHINAS MASSIVE INTERNET ADOPTION POWERS DIGITAL COMMERCE974 MILLION ONLINE SHOPPERS BY DEC 20241.108 BILLION INTERNET USERS B

265、Y DEC 2024Source:CNNIC,E:infochozan.co W:www.chozan.co W: CHINAS MONTHLY ACTIVE ONLINE USERS98CHINAS INTERNET USER BASE GROWS STEADILY,DEEPENING DIGITAL ADOPTIONIn December 2024,the total number of monthly active users across the internet reached 1.257 billion.The steady growth in monthly active use

266、r numbers reflects the deep integration of digital lifestyles and highlights the vast potential for further expansion in the digital landscape.Source:QuestMobileMONTHLY ACTIVE USERS(UNIT:MILLION)1,2201,2301,2401,2501,2602024-012024-022024-032024-042024-052024-062024-072024-082024-092024-102024-11202

267、4-121,2571,2531,2471,2441,2431,2381,2351,2351,2301,2321,2311,227E:infochozan.co W:www.chozan.co W: CHINAS ONLINE USER STRUCTURE99As of December 2024,the urban internet user population in China reached 795 million,accounting for 71.8%of the total internet users,while the rural internet user populatio

268、n stood at 313 million,making up 28.2%.The structure remains stable compared to previous years.CHINA REMAINS STABLE RURAL-URBAN INTERNET USER DISTRIBUTIONSource:CNNIC0255075100Dec 2022Dec 2023Dec 202428.2%29.8%28.9%71.8%70.2%71.1%UrbanRuralCHINAS INTERNET USER URBAN AND RURAL STRUCTUREE:infochozan.c

269、o W:www.chozan.co W: CHINAS ONLINE USER PROFILE100As of December 2024,the gender ratio of internet users in China was 51.1%male to 48.9%female,closely mirroring the overall population distribution.In terms of age structure,the proportion of internet users aged 50 and above increased from 32.5%in Dec

270、ember 2023 to 34.1%,reflecting deeper internet penetration among middle-aged and elderly groups.CHINA SHOWS BALANCED GENDER DISTRIBUTION AND AGING PENETRATION GROWTHSource:CNNICCHINAS INTERNET USERS AGE DISTRIBUTIONFemale48.9%Male51.1%05101520Aged 6-10Aged 10-19Aged 20-29Aged 30-39Aged 40-49Aged 50-

271、59Aged 60 and above14.1%20%17.1%19%13.1%13%3.7%E:infochozan.co W:www.chozan.co W: CHINAS ONLINE USER BEHAVIOR1011.070 MILLION VIDEO WATCHING USERS,+3.47 MILLION YEAR-ON-YEARDIGITALIZATION HAS PENETRATED INTO BOTH ONLINE MEDIA AND WORKSource:CNNIC833 MILLION LIVE STREAMING USERS,+17.37 MILLION YEAR-O

272、N-YEAR570 MILLION ONLINE OFFICE USERS,+33.42 MILLION YEAR-ON-YEARAs of the latest data,video watching users reached 1.07 billion.Live streaming users grew to 833 million,adding 17.37 million over the past year,highlighting its popularity.Online office users saw the most substantial growth,reaching 5

273、70 million,an impressive year-on-year rise of 33.42 million,reflecting the increasing adoption of digital work solutions.E:infochozan.co W:www.chozan.co W: CHINAS 5G MOBILE USERS1025G USER GROWTH AND NETWORK EXPANSION PROVIDES A BOOST TO THE DIGITAL ECONOMYThe number of 5G mobile users continues to

274、grow steadily,and the construction of 5G networks is advancing rapidly,laying a solid foundation for the development of the digital economy.2024-022024-032024-042024-052024-062024-072024-082024-092024-102024-112024-121,0141,0029959829709509309058898708505G MOBILE USER SIZE(UNIT:MILLION)Source:QuestM

275、obileE:infochozan.co W:www.chozan.co W: CHINAS ONLINE PAYMENT USERS103ONLINE PAYMENT USER SIZE AND UTILIZATION RATE IN DEC 2020-2024CHINAS ONLINE PAYMENT UTILIZATION IS ALMOST NATIONWIDESource:CNNIC80,00087,50095,000102,500110,00085%87%89%91%93%Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024RateUser size(U

276、nit:10,000)102,89195,38691,14490,36385,43492.8%87.3%85.4%87.6%86.4%92.8%87.3%85.4%87.6%86.4%In 2024,Chinas online payment user base reached 1.029 billion,growing by 75.05 million compared to December 2023.This group now accounts for 92.8%of the total internet population,underscoring the widespread a

277、doption of digital payment solutions in daily life.E:infochozan.co W:www.chozan.co W: CHINAS ONLINE SHOPPERS104TOP 5 MOBILE SHOPPING APP TYPES WITH MOST CONTRIBUTION TO THE OVERALL SHOPPING MARKET IN SEP 2024COMPREHENSIVE E-COMMERCE LEADS,WHILE SECONDHAND MARKET BOOSTS NEW GROWTHSource:QuestMobileCo

278、mprehensive e-commerce platforms dominate Chinas mobile shopping sector,driving 98%of the industrys growth with over a billion active users in September 2024.However,secondhand e-commerce is emerging as a new growth engine,with idle goods transactions contributing 35.9%.0%25%50%75%100%Comprehensive

279、E-commerceSecondhand Transactions3C E-commerceFresh Food E-commerceBeauty&Cosmetics Apps0.7%17.5%18.4%35.9%98.0%MAU1.069 billion195.18 million218.06 million118.64 million3.57 millionE:infochozan.co W:www.chozan.co W: CHINAS ONLINE ENTERTAINMENT105AIGC APP MAU IN 2024(UNIT:MILLION)AIGC CONTENT IS PRE

280、VAILING AMONG CHINESE ONLINE USERSSource:QuestMobile2024 marks the inaugural year of AI application development,with the AIGC(AI-generated content)app industry experiencing rapid growth.Monthly active users(MAU)in this sector are nearing 80 million,according to QuestMobile.020406080Jan 2024 Feb 2024

281、 Mar 2024 Apr 2024 May 2024 Jun 2024 Jul 2024 Aug 2024 Sep 202479.1368.4766.3261.7849.1343.6839.1433.2733.04YoY Growth759.7%698.6%761.9%574.7%618.7%654.3%600.8%540.8%393.9%E:infochozan.co W:www.chozan.co W: CHINAS ONLINE ENTERTAINMENT106TOP 5 AIGC APPS MAU IN SEP 2024(UNIT:10,000)TOP 5 AIGC APPS WIT

282、H MOST MAUByteDance DoubaoBaidu WenxiaoyanKimiTianGongChatGLM(智谱清)01,2502,5003,7505,000361.1405.41,024.81,191.54,197.6The leading applications in the AIGC industry are predominantly tool-oriented,deeply integrated into various aspects of users daily lives and work.Their strong practicality is a key

283、factor driving user adoption.In September 2024,Doubao app,a standout in the category,achieved MAU of nearly 42 million.Source:QuestMobileE:infochozan.co W:www.chozan.co W: CHINAS GOVERNMENT SUPPORT107GOVERNMENT SUPPORT POLICIES FOR THE DIGITAL DEVELOPMENTSource:QuestMobileSTATE COUNCIL(2022):14TH FI

284、VE-YEAR PLAN FOR DIGITAL ECONOMY DEVELOPMENT By 2025,the added value of core digital economy industries will account for 10%of GDP.Promote the efficient layout of AI infrastructure and enhance the empowerment capabilities of intelligent+industry development.Strengthen the competitiveness of key indu

285、strial supply chains,including 5G,integrated circuits,new energy vehicles,and AI,to improve supply chain ecosystems in critical sectors.STATE COUNCIL(2024):GOVERNMENT WORK REPORT ON DIGITAL ECONOMY Formulate policies supporting the high-quality development of the digital economy,actively promoting d

286、igital industrialization.Launch the AI+Action Plan to establish a globally competitive cluster of digital industries.Accelerate the construction of digital infrastructure with advanced capabilities to create a unified national computing network system.E:infochozan.co W:www.chozan.co W: CHINAS CITY-S

287、PECIFIC DIGITAL SUPPORT108THE GOVERNMENT INJECTS MORE FUND TO THE R&D DEVELOPMENT OF AISource:QuestMobileNANJINGACTION PLAN TO PROMOTE AI INNOVATION AND DEVELOPMENTRELEASE DATEMay 2024OVERALL GOALBy 2026,scale the core AI industry to 60 billion,annually create 30+benchmark AI application scenarios.S

288、HENZHENACTION PLAN FOR HIGH-QUALITY AI DEVELOPMENT AND ADVANCED APPLICATIONSRELEASE DATEMay 2024OVERALL GOALBuild a city-level computing platform to create a robust intelligent computing ecosystem in the Greater Bay Area.MEASURESEstablish a 10 billion AI industrial fund and provide targeted support

289、to high-potential startups.HANGZHOUPOLICIES FOR PROMOTING AI INDUSTRIAL INNOVATION DEVELOPMENTRELEASE DATEMay 2024KEY MEASURESOffer grants for new R&D projects,ranging from 2 million for provincial enterprises to 15 million for exceptional projects.E:infochozan.co W:www.chozan.co W: CHINAS CITY-SPEC

290、IFIC DIGITAL SUPPORT109INFRASTRUCTURE SUPPORT IS ALSO KEY TO THE SOUND DEVELOPMENT OF AI INDUSTRYSource:QuestMobileBEIJINGACCELERATING THE DEVELOPMENT OF GENERAL AI INDUSTRY POLICIESRELEASE DATEApril 2024KEY MEASURES Up to 1 billion funding for large-scale key technology projects.Center-level AI cap

291、acity scaled to over 1,000 PFLOPS,with a maximum funding support of 50 million.SHANGHAIACTION PLAN FOR ADVANCING COMPUTING CAPACITY AND INTELLIGENT COMPUTING HUBRELEASE DATEMarch 2024OVERALL GOALBy 2025,establish a regionally influential intelligent computing innovation and application demonstration

292、 zone.EXPECTATIONBy 2025,Shanghais computing capacity to exceed 30 PFLOPS,representing over 50%of the citys total computing capacity.WUHANACTION PLAN FOR ADVANCING COMPUTING INFRASTRUCTURE AND INDUSTRIAL APPLICATIONSRELEASE DATEFebruary 2024OVERALL GOALBy 2025,achieve 5 EFLOPS in computing capacity.

293、MAJOR TASKEnhance foundational AI technology deployment and reduce new data center energy consumption to below 1.25 kWh per workload.E:infochozan.co W:www.chozan.co W: CHINAS DIGITAL APPS110TOP 10 APPS WITH THE LARGEST USER BASE IN 2024 IN CHINANO.INDUSTRYTOP APPAVERAGE MAU(MILLION)1Instant Messagin

294、g,Super AppWeChat1,062.642E-commerceTaobao929.993Payment Services,Super AppAlipay 904.164NavigationGaode Maps845.015Short VideoDouyin805.21Source:QuestMobileE:infochozan.co W:www.chozan.co W: CHINAS DIGITAL APPS111TOP 10 APPS WITH THE LARGEST USER BASE IN 2024 IN CHINANO.INDUSTRYTOP APPAVERAGE MAU(M

295、ILLION)6Search EngineBaidu678.277Input MethodSogou596.158Browser QQ Browser428.299Online VideoiQIYI384.910Weather Services Huawei Weather226.52Source:QuestMobileE:infochozan.co W:www.chozan.co W: 123SUMMARY OF CHINAS DIGITAL ECONOMY112THREE MAJOR HIGHLIGHTSSource:CAICT,AskCIMASSIVE INTERNET USER BAS

296、E DRIVING E-COMMERCECONTINUED EXPANSION OF CHINAS DIGITAL ECONOMYWith 1.1 billion internet users and over 900 million online shoppers,China leads globally in digital retail and mobile payments.This growing user base,alongside high mobile penetration,highlights Chinas continued dominance in online co

297、mmerce.Technologies like AI,cloud computing,and big data are becoming central to business operations.Especially with Chinas advanced AIGC,businesses can automate content creation and optimize decision-making processes,driving efficiency and innovation across industries.INCREASED ROLE OF TECHNOLOGY I

298、N BUSINESS TRANSFORMATIONAs digital technologies advance,industries are becoming more digitally connected,driving innovation and efficiency across various sectors.The deepening integration of digital tools into the economy opens up significant opportunities for businesses to scale and innovate.E:inf

299、ochozan.co W:www.chozan.co W: 113Source:XiaomiEXPERT BITEMARK GREEVENProfessor of Management Innovation and Dean of IMD Asia Q:WILL CHINESE TECH COMPANIES SHIFT HOW THEY COLLABORATE WITH INTERNATIONAL FIRMS BY 2025?It is a continuing rebalancing of international relations.However international firms

300、 have no choice but to collaborate with Chinese tech companies inside China for the Chinese market;in particular with an eye on the fast evolving GenAI landscape that appears to follow a parallel track and tech stack in China.Globally,we need to be careful to distinguish a wide variety of markets:ma

301、rkets in south east asia,middle east and latin America are welcoming Chinese technology,and related partnerships.E:infochozan.co W:www.chozan.co W: 114Source:XiaomiEXPERT BITEE:infochozan.co W:www.chozan.co W: Q:WHAT INVESTMENT TRENDS HAVE EMERGED IN GUANGZHOU AND HUANGPU DISTRICT,AND HOW MIGHT THEY

302、 EVOLVE BY 2025?PETER HELISInternational Executive at Invest Guangzhou,Expert in China Government AffairsIn recent years,Guangzhou and the Huangpu District have seen a surge in investment trends centered around what we call IAB-NEM,encompassing,ICT,AI,Bio-medicine,New Energy,and New Materials.These

303、sectors have developed robust clusters,with both local champions and international companies playing significant roles.Looking towards 2025,these trends are likely to evolve with:Increased Integration of Digital Technologies:The digital economys growth,as evidenced by recent economic censuses,sugges

304、ts even more integration and innovation in ICT and AI,with Huangpu potentially becoming a hub for smart technologies.Expansion in Bio-medicine:With ongoing investments and developments,the district could see an increase in global biotech collaborations,particularly in personalized medicine and advan

305、ced cancer treatments.Sustainable and New Energy Innovations:The push towards new energy,especially hydrogen technology,might see further international investments and local innovations,aiming at reducing carbon footprints and enhancing energy security.115Source:XiaomiEXPERT BITEQ:HOW IS CHINA ADVAN

306、CING IN GLOBAL TECH,AND WHAT CAN OTHERS LEARN?President Xi Jinpings strategic focus on innovation and technology will further boost its global competitiveness,especially in the area of artificial intelligence(AI),5G,the Internet of Things(IoT),big data and the green economy.China is set to formulate

307、 more than 50 national and industrial standards for AI by 2026 and develop a standard system to guide the high-quality development of the sector,which will further promote the countrys technological progress,enterprise development and industrial upgrading.MARTINA FUCHSBusiness Journalist,Co-Founder

308、of Frequency School,Board Member of Montreux Jazz Festival China E:infochozan.co W:www.chozan.co W: 116CHINAS TECHNOLOGY INSIGHTSUNDERSTANDING CHINESE TECH AND ITS KEY PLAYERSE:infochozan.co W:www.chozan.co W: CHINAS ADVANCED TECHNOLOGIES OVERVIEWADVANCED TECH AND LEADING PLAYERS IN RESPECTIVE FIELD

309、S117AI AND ROBOTICSDeepSeek Focuses on developing cutting-edge AI models and applications for industries like healthcare,finance,and education Unitree Robotics Known for its agile and affordable robotic dogs,which are used in research,entertainment,and industrial applications UBTECH Robotics Famous

310、for its Walker robot and educational robots like Alpha MiniEV AND BATTERY TECHCATL The worlds largest EV battery manufacturer,supplying companies like Tesla,BMW,and NIO BYD Provides Electric vehicles,batteries,and renewable energy solutions NIO Known for its high-performance EVs,as well as its innov

311、ative battery-swapping stations XPeng Known for its XPILOT autonomous driving system and modelsE-COMMERCE AND FINTECHAlibaba Group Operates platforms like Taobao,Tmall,and Alibaba Cloud,with advancements in e-commerce,cloud computing,and fintech Tencent Known for WeChat,one of the worlds most popula

312、r messaging apps,and its gaming division JD.com A leader in online retail and supply chain innovation E:infochozan.co W:www.chozan.co W: CHINAS ADVANCED TECHNOLOGIES OVERVIEWADVANCED TECH AND LEADING PLAYERS IN RESPECTIVE FIELDS118RENEWABLE ENERGY AND GREEN TECHJinkoSolar One of the worlds largest s

313、olar panel manufacturers,excelling at solar panels and renewable energy solutions Envision Group Known for its Envision AESC batteries and wind energy solutions GCL-Poly Energy Holdings A key player in the global solar supply chain,producing polysilicon for solar panels and renewable energyBIOTECH A

314、ND HEALTHCAREBGI Genomics A global leader in DNA sequencing and genomic research WuXi AppTec Provides end-to-end services for drug discovery and development Sinovac Biotech Known for its COVID-19 vaccine,CoronaVac SEMICONDUCTORS AND HARDWARESMIC Chinas largest semiconductor foundry,working to reduce

315、 reliance on foreign chip technology Huawei A global leader in 5G technology and consumer electronics Cambricon Develops specialized AI chips for data centers,edge computing,and autonomous vehicles E:infochozan.co W:www.chozan.co W: 119Source:XiaomiEXPERT BITEQ:WHAT INDUSTRIES IN CHINA ARE LIKELY TO

316、 EXPERIENCE THE FASTEST GROWTH IN THE NEXT FEW YEARS,AND WHY?Amid Chinas industrial upgrading and the promotion of technological innovation,I believe the low-altitude economy is poised for explosive growth in the coming years.First,it has been elevated to a national strategyover 30 provinces have in

317、corporated it into their government plans,with hundreds of pilot projects already launched,demonstrating strong policy execution.Meanwhile,emerging demands in drone delivery,emergency rescue,and urban transportation are driving the sector,which reached 505.95 billion RMB in 2023 with 33.8%growth and

318、 is projected to hit 3.5 trillion RMB within a decade.Lastly,Chinas advancements in drones,AI,and telecommunications will also provide solid foundational support for the industrys growth.EDWARD TSEFounder and CEO at Gao Feng AdvisoryE:infochozan.co W:www.chozan.co W: 120Source:XiaomiEXPERT BITEE:inf

319、ochozan.co W:www.chozan.co W: BILL RUSSOFounder and CEO at Automobililty LtdQ:WHAT ROLE DOES CHINAS CARBON NEUTRALITY GOAL FOR 2060 PLAY IN DRIVING INNOVATION IN MOBILITY?Chinas ambitious carbon neutrality goal for 2060 acts as a major catalyst for innovation in green mobility solutions and clean en

320、ergy technologies.This target accelerates the development of electric and hydrogen fuel cell vehicles,alongside advancements in battery technology.It also supports the expansion of charging infrastructure,crucial for building a sustainable ecosystem for EVs.Furthermore,EVs play a vital role as distr

321、ibuted energy storage units within the overall energy system,promoting advancements in smart grid technology,including vehicle-to-grid(V2G),distributed energy resources(DERs)and virtual power plants(VPPs).121Source:XiaomiEXPERT BITESHIMI AZARBusiness Development Director,China at ElectreonQ:WITH CHI

322、NA HOLDING 76%OF THE GLOBAL EV MARKET,WILL THIS RESHAPE GLOBAL EV STANDARDS?Chinas leadership in EV production is reshaping the global automotive industry,setting unparalleled benchmarks for affordability,efficiency,and technological innovation.As Chinese manufacturers like BYD and CATL push the bou

323、ndaries of battery technology and supply chain integration,they are defining the future of electric vehicles worldwide.This leadership compels automakers in Europe and the U.S.to learn from Chinas success,adopting its vertically integrated models and mass production efficiency.Ultimately,Chinas adva

324、ncements are accelerating the global transition to electric mobility,solidifying its role as the cornerstone of the EV revolution.E:infochozan.co W:www.chozan.co W: 122Source:XiaomiEXPERT BITEQ:WHAT INDUSTRIES DO YOU THINK WILL THRIVE OR FAIL IN 2025?Thriving industries will likely include green ene

325、rgy(e.g.,EVs,solar power),healthcare(especially biotechnology and telemedicine),and AI-driven sectors(e.g.,autonomous vehicles,smart logistics).These align with Chinas Dual Carbon goals and the push for technological self-reliance.Struggling industries may include traditional manufacturing reliant o

326、n exports,particularly low-margin sectors,and fossil-fuel-based industries due to tighter environmental regulations and shifts in consumer preferences.PROF.ALBERTO ANTINUCCIApplied AI and Chinese Business and Cultural Strategy E:infochozan.co W:www.chozan.co W: 123ARTIFICIAL INTELLIGENCE 1E:infochoz

327、an.co W:www.chozan.co W: CHINAS AI MARKET OVERVIEWCHINAS AI INDUSTRY RAPIDLY GROWS,STRENGTHENING ITS GLOBAL MARKET INFLUENCE124Chinas AI industry is experiencing rapid expansion,in 2024,the market size reached 747 billion RMB,representing a year-on-year growth of 41.0%.Projections for 2025 estimate

328、the market will grow to 1.0457 trillion RMB,accounting for 20.9%of the global AI market share,underscoring Chinas growing influence in the global AI landscape.040801201602019202020212022202320242025E143.8102.872.951.035.825.618.9CHINAS AI MARKET SIZE AND FORECAST IN 2019-2025E(UNIT:BILLION USD)0.0%5

329、.5%11.0%16.5%22.0%20182019202020212022202320242025E20.9%18.7%17.2%15.5%13.8%12.2%11.0%9.2%PROPORTION OF CHINAS AI MARKET SIZE IN THE GLOBAL AI MARKETSource:iiMediaE:infochozan.co W:www.chozan.co W: CHINAS AI PENETRATION IN DIFFERENT INDUSTRIESAI ADOPTION IN CHINA SPREADS WIDELY,WITH INTERNET SECTOR

330、LEADING GROWTH125In terms of the AI penetration in China,the internet industry consistently shows the highest penetration,rising from 82%in 2022 to 89%in 2024,demonstrating its dominance in adopting AI technologies.Telecommunications and government affairs sectors have seen significant growth.The ch

331、art suggests a broadening application of AI across different sectors.Source:iiMedia023456890InternetTelecomGovernment affairsFinanceManufacturingTransportationServiceEducation30%41%45%47%64%65%68%89%274038456252518325%38%35%40%55%50%45%82%202220232024PENETRATION OF CHINAS AI INDUSTRY FROM 2022-2024E

332、:infochozan.co W:www.chozan.co W: CHINAS AI ASSISTANTS OVERVIEW126POPULAR AND TRENDING AI ASSISTANTS INTRODUCTIONDEEPSEEKERNIE BOT(WENXINYIYAN)TONGYI QIANWENYUANBAODOUBAOKIMILAUNCH TIMEJan 2025Mar 2023Apr 2023May 2023Aug 2023Oct 2024BACKGROUNDHigh-Flyer(幻量化,a hedge fund company)BaiduAlibabaTencentBy

333、teDanceMoonshot AI(a start-up company)CAPABILITIES IN ONE SENTENCEHandles reasoning-heavy tasks,e.g.coding,math,and structured problem-solvingAdvanced natural language understanding and generationSupports tasks like text summarization and translationOffers conversational assistance and content generationText generation,data analysis,and multimedia content creationSummarization,querying,research,an