Top Jewelry Store Chow Tai Fook Sees Retail Value Drop 20 Percent, Closes 180 Stores in China
On July 24, Chow Tai Fook Jewlery Group Limited released its unaudited key operating data for the three months ending June 30, 2024. The data show that Chow Tai Fook’s overall retail value for the period April to June of this year decreased by 20.0 percent year-on-year, with retail value in the mainland Chinese market down by 18.6 percent and the in the Hong Kong and Macau markets down by 28.8 percent.
In the first quarter of its 2025 fiscal year (April to June 2024), Chow Tai Fook opened 85 new jewelry stores and closed 176 stores in the mainland Chinese market, resulting in a net decrease of 91 stores. It had a net decrease of 89 stores in the mainland market in the previous quarter. This means that in the first half of this year, Chow Tai Fook has closed a total of 180 jewelry stores in mainland China.
Another Chinese jewelry giant, Luk Fook Holdings, announced on July 19 that the group’s overall retail value in the first quarter of its 2025 fiscal year dropped by 18 percent year-on-year, and that overall retail revenue has decreased by 23 percent year-on-year. Luk Fook Jewelry’s net store count decreased by 108 stores in mainland China.
Source: Epoch Times, July 24, 2024
https://www.epochtimes.com/gb/24/7/24/n14297931.htm
CCTV: Singapore Diplomat – The Era of Western Domination of the World Is Coming to An End
Recently, many Chinese news websites published a video clip said to be an excerpt of a speech delivered by Kishore Mahbubani at Harvard University. Mahbubani was a Singaporean diplomat and geopolitical consultant once serving as Singapore’s Permanent Representative to the United Nations. In the video, Mr. Mahbubani said:
“I can tell you this, as someone who travels to 30 or 40 countries a year, when I come to the United States and I go to my hotel room in Charles Hotel and turn on the television, I feel that I’ve been cut off from the rest of the world. And literally, the insularity of the American discourse is actually frightening. This is true of the New York Times, this is true of the Washington Post, (and) this is true of the Wall Street Journal. There is an incestuous self-referential discourse among these newspaper journalists and so on so forth. And they reference each other’s perspectives and end up misunderstanding the world.
Because you know the one key point I emphasize is that the era of Western domination of world history was a 200-year aberration. It’s coming to an end. And as a result of it you’ve got to learn to understand non-Western perspectives in the world. And it’s actually quite frightening that in many ways I find American intellectuals behind intellectuals including in Serbia where I just was or Greece or Istanbul. They are much more aware of what’s happening in the world than most American intellectuals are. I don’t know how to solve that problem.”
Source: CCTV, July 20, 2024
https://news.cctv.com/2024/07/20/ARTIIP93CxffUaK0xnqkwwi7240720.shtml
China Facilitates Reconciliation of Fatah, Hamas, and Other Palestinian Factions in Beijing
At the invitation of China, senior representatives from 14 Palestinian factions held reconciliation talks in Beijing from July 21 to 23. They signed the “Beijing Declaration on Ending Division and Strengthening Palestinian National Unity.” Chinese Foreign Minister Wang Yi attended the closing ceremony. Foreign Ministry spokesperson Mao Ning stated that “The most significant consensus from the talks was achieving major reconciliation and unity among all 14 factions. The most core outcome was the reaffirmation that the Palestine Liberation Organization (PLO) is the sole legitimate representative of the Palestinian people.”
Wang Yi met Hamas political leader Ismail Haniyeh and Fatah Deputy Chairman Mahmud Alul on July 21 and July 23, respectively.
Commentaries pointed out that Beijing has once again intervened to save Hamas, allowing it to survive and to continue to play a significant role in the future Palestinian government, posing a long-term threat to Israel.
The U.S. State Department reiterated that the United States has designated Hamas as a terrorist organization and that it believes Hamas should not be involved in Gaza’s post-war governance.
Israel’s Foreign Minister Yisrael Katz made a post on the X platform saying “Hamas and Fatah signed an agreement in China for joint control of Gaza after the war. Instead of rejecting terrorism, Mahmoud Abbas embraces the murderers and rapists of Hamas, revealing his true face. In reality, this won’t happen because Hamas’s rule will be crushed, and Abbas will be watching Gaza from afar. Israel’s security will remain solely in Israel’s hands.”
Sources:
1. Xinhua, July 24, 2024
http://www.news.cn/mrdx/2024-07/24/c_1310782573.htm
2. Aboluo, July 24, 2024
https://www.aboluowang.com/2024/0724/2083006.html
3. X Platform, Yisrael Katz’s account @Israel_katz,
https://x.com/Israel_katz/status/1815670709378560503
Nippon Steel Exits Joint Venture with Baosteel, Signaling Shift in China Strategy
Nippon Steel Corporation, Japan’s largest steelmaker, announced on July 23rd that it would withdraw from its joint venture with Chinese steel giant Baosteel. The decision came as Japanese automakers struggle with sales in China due to the rising popularity of Chinese electric vehicles. Nippon Steel likely foresees difficulty in increasing its own sales volumes. After exiting the joint venture with Baosteel, Nippon Steel’s steel production capacity in China will decrease by 70%, with Nippon resources focused on the US and India going forward.
In 2004, Nippon Steel, Baosteel, and ArcelorMittal established a joint venture to manufacture and sell automotive steel sheets. The 20-year agreement expires in late August of this year, prompting Nippon Steel’s decision to dissolve the partnership.
Nippon Steel’s current annual steel production capacity in China is about 3.6 million tons, with the joint venture with Baosteel accounting for 70% of that figure. Nippon stated that its initial goal of supporting Japanese automakers’ local production through steel supply has been achieved. Meanwhile, the competitive landscape has changed as Chinese steel companies have improved their technical capabilities.
Starting just after the 1978 Japan-China Peace and Friendship Treaty, Nippon Steel has been a contributor to the modernization of China’s steel industry, providing Japanese technology and expertise in China. At the Chinese government’s invitation, Nippon Steel supported the construction of Shanghai’s Baoshan Iron and Steel Plant.
Source: Kyodo News, July 23, 2024
https://china.kyodonews.net/news/2024/07/bde5daef8687.html
China’s Birth Rate Dilemma: Quanzhou’s Controversial Three-Child Policy Push
China’s population has experienced negative growth for two consecutive years, making “rescuing the birth rate” a top priority. A population policy document from Quanzhou, Fujian Province, called for its Chinese Communist Party (CCP) members and officials to have three children, raising public concerns about “undercover coercion to have children.” The Quanzhou Health Commission later explained that the document was still in the internal review stage and was mistakenly published due to staff oversight.
Since the implementation of China’s three-child policy in 2021, local measures to support the policy have garnered attention. The leaked document from Quanzhou outlined work arrangements for implementing the policy, including a call for CCP members, government agencies, state-owned enterprises, and public institutions to take the lead in having three children.
The approach echoes a directive given in 1980, when the Communist Party urged members to have only one child, marking the beginning of China’s one-child policy era. The Quanzhou Health Commission clarified that the document was still in draft form and not yet officially released.
Quanzhou, an economically prominent city in Fujian Province, has seen significant growth, with its public budget revenue exceeding 100 billion yuan in 2023.
As China faces population decline, boosting birth rates has become a government priority. The National Healthcare Security Administration reported that four provinces and cities have included assisted reproductive technology in medical insurance coverage since 2023.
Source: Central News Agency (Taiwan), July 21, 2024
https://www.cna.com.tw/news/acn/202407210065.aspx
China’s ‘Designated Residential Surveillance’ System: Calls for Reform Amid Controversy
Southern Weekend, a magazine based in China, reported that the “designated residential surveillance” system in China has recently come under scrutiny due to multiple deaths and allegations of torture to extract confessions. Academics and experts are calling for reform of this practice.
Originally intended as a less restrictive alternative to detention, the “designated residential surveillance” system has evolved into a more severe form of custody. It gained popularity among investigators after 2012 when stricter regulations were imposed on detention centers, making it difficult to use coercive interrogation methods there. The “designated residential surveillance” system, being less transparent and more convenient, became a preferred tool, often misused.
Bian Jianlin, honorary president of the China Criminal Procedure Law Society, argues that this system has been controversial since its inception and should be abolished. He suggests reverting to the original non-custodial nature of residential surveillance.
Several legal experts informed Southern Weekend that the revision of China’s Criminal Procedure Law is still in the consultation stage, and the future of the “designated residential surveillance” system remains undecided.
Source: Radio Free Asia, July 22, 2024
https://www.rfa.org/mandarin/Xinwen/jw2-china-house-arreset-07222024121739.html
China’s Foreign Direct Investment Drops 29% Amid Economic Slowdown and Policy Concerns
China’s Ministry of Commerce reported that foreign direct investment (FDI) in China in the first half of 2023 decreased by 29.1% year-on-year, totaling 498.91 billion yuan (US$68.6 billion). However, the number of newly established foreign-invested enterprises increased by 14.2%.
Manufacturing sector FDI accounted for 28.4% of total FDI, up 2.4 percentage points from the previous year. High-tech manufacturing FDI made up 12.8% of the total. Investments from Germany and Singapore increased by 18.1% and 10.5%, respectively.
Despite strict COVID-19 control measures, China’s FDI had been strong in recent years, setting records from 2019 to 2021. However, the country’s economic recovery post-pandemic has been slower than expected, with growth rates of 3% in 2022 and 5.2% in 2023.
Analysts suggest that China’s slowing economic growth leaves less room for large-scale foreign investments. Many U.S. tech companies and investors have withdrawn, citing factors such as increased labor costs, slower growth rates, supply chain risks highlighted by the pandemic, and political risks.
The unpredictability of Chinese government policies is also deterring foreign investment. Recent crackdowns on industries like education, entertainment, and gaming have caused losses for companies in these sectors, making long-term investments less attractive to foreign entities seeking policy stability.
Source: Central News Agency (Taiwan), July 14, 2024
https://www.cna.com.tw/news/acn/202407140082.aspx
Saudi Stock ETFs Make Debut on Chinese Exchanges
On July 16, two new Exchange-Traded Funds (ETFs) linked to the stock price index of the Saudi Stock Exchange (Tadawul) were listed on the Shanghai and Shenzhen stock exchanges in China. This marks the first time Saudi stock ETFs have been listed in mainland China. The move is expected to strengthen financial cooperation between the two countries, aligning with China’s Belt and Road Initiative. For Saudi Arabia, this presents an opportunity to attract Chinese investment.
The two ETFs listed are the “Huatai-PineBridge CSOP Saudi Arabia ETF” and the “China Southern Asset Management CSOP Saudi Arabia ETF.” The total amount raised so far was approximately 1.2 billion yuan (US$ 166 million).
China implements capital controls that generally restrict cross-border securities investments. These two ETFs utilize the Qualified Domestic Institutional Investor (QDII) framework, which allows Chinese domestic investors to invest overseas within certain limits.
Source: Nikkei Chinese, July 16, 2024
https://zh.cn.nikkei.com/china/cfinancial/56153-2024-07-16-15-39-48.html