Economy/Resources - 10. page

China’s declining birth rate is creating a devastating impact on the country’s early childhood education sector, with experts predicting that 26,000 more kindergartens may close this year following the closure of 21,100 facilities in 2023.

Recent closures highlight the severity of the crisis. The Chutian Century City Kindergarten in Changsha County, Hunan Province, which had operated for 12 years, suddenly shut down on July 1st. Similarly, Baihua Kindergarten in Yingde City, Guangdong Province, closed on June 11th, while 20 private kindergartens in Lu’an City, Anhui Province, applied to terminate operations on May 8th.

The human cost of this educational crisis is exemplified by kindergarten director Jing Yazhen, who spent over 20 years in early childhood education. She once led a group company with 489 employees and annual revenue of 50 million yuan (approximately $6.9 million). However, her business fell into crisis several years ago, accumulating over 20 million yuan (approximately $2.8 million) in debt. Twelve of her kindergartens have closed, leaving only four remaining facilities that she desperately hopes to preserve.

According to China’s Ministry of Education statistics, the country had 253,300 kindergartens in 2024, representing a decrease of 21,100 from 2023. Experts forecast that by 2030, China may have only 163,700 kindergartens remaining, indicating an average of 15,000 closures annually.

The enrollment crisis is equally severe. Chen Lin, who has worked in early childhood education for 31 years, reflects on the dramatic change: “It’s too difficult; maybe we won’t survive next year.” She previously operated three kindergartens but now runs only one. Chen recalls that in 2020-2021, parents actively sought enrollment without any recruitment efforts needed. However, since 2023, recruitment has become extremely challenging, with only about 20 new students enrolled to replace 60 graduates.

Industry professionals suggest that kindergartens must pivot to new development directions, including transformation into childcare centers, elderly care facilities, or community service centers to survive China’s demographic transition.

Source: Central News Agency (Taiwan), July 14, 2025
https://www.cna.com.tw/news/acn/202507140085.aspx

According to China’s General Administration of Customs, China’s June export numbers grew by 5.8 percent year-on-year (as measured in U.S. dollars), and imports grew by 1.1 percent year-on-year. The trade surplus for the month of June reached US$ 114.77 billion.

From January to June China’s exports (again, measured in U.S. dollars) increased by 5.9 percent year-on-year, while imports declined by 3.9 percent.

During the first half of the year, China’s top three export markets were ASEAN, the EU, and the U.S. Exports to ASEAN grew by 13.0 percent year-on-year, exports to the U.S. declined by 10.9 percent, and exports to the EU rose by 6.6 percent.

In June alone, exports to the U.S. dropped 16.1 percent year-on-year.

Due to U.S. tariffs, China-U.S. trade volume shifted from growth in Q1 to a decline in Q2, with a year-on-year drop of 20.8 percent in Q2.

Source: Epoch Times, July 14, 2025
https://www.epochtimes.com/b5/25/7/14/n14551148.htm

CCP mouthpiece Huanqiu Times published a translation of South Korea’s Hankyoreh article on July 3, reporting that a South Korean employee at a manufacturing firm in China said “If South Korea can’t succeed in China, it can’t succeed globally.” The employee added that “catching up with China’s industrial strength” is becoming increasingly difficult.

He noted that Chinese consumers prefer local products not just out of patriotism but for better value. Seeing China’s self-driving cars outperform Tesla and humanoid robots actively engaging with people raises doubts about South Korea’s ability to keep up. If there were a Robot Soccer World Cup, he said, “China would win.”

Despite U.S. attempts to block advanced tech, China continues to make rapid breakthroughs. Huawei’s phones rival Apple and Samsung, DeepSeek competes with ChatGPT, and Chinese battery makers are overtaking South Korean firms with better, cheaper products.

By fostering local enterprises and creating a thriving domestic market, China has nurtured leading companies and propelled them into the global arena – making it increasingly difficult for other countries to compete. Though challenges remain, China has moved from follower to leader – thanks to its distinctive industrial policies.

Source: Huanqiu Times, July 4, 2025
https://m.huanqiu.com/article/4NMaM5cBsR2

Shipping rates from China to the United States have experienced dramatic volatility following the temporary suspension of the China-US trade war, with container shipping prices now plummeting significantly below pre-truce levels.

According to data released by the Shanghai Shipping Exchange on July 4th, shipping rates from China to the US West Coast have crashed approximately 63 percent over the past month. The price for a 40-foot container (FEU) dropped from $5,606 during the peak shipping period on June 6th to $2,089. Similarly, shipping rates to the US East Coast fell 41 percent from $6,939 to $4,124 during the same period.

The price fluctuations stem from the Geneva Agreement between China and the US, which established a 90-day truce in their trade war beginning May 14th. This temporary ceasefire triggered a surge in Chinese exports to America, creating a shipping rush that overwhelmed available vessel capacity and drove prices sharply higher.

However, industry sources report that shipping rates began declining in the second week of June and have now fallen below pre-truce levels by early July. The primary factors behind this reversal include normalized shipping capacity and a significant drop in export volumes following the initial rush period, leaving carriers with insufficient cargo to transport.

A maritime industry professional noted that global shipping rates currently appear chaotic, a situation attributed to several factors: the massive volume of Chinese goods shipped to the US during May created high inventory levels in America, while the uncertainty surrounding the July 9th expiration of the 90-day suspension of “reciprocal tariffs” has prompted both exporters and importers to adopt a wait-and-see approach.

The situation highlights the volatility in international trade relationships and their immediate impact on global shipping markets.

Source: Central News Agency (Taiwan), July 6, 2025
https://www.cna.com.tw/news/acn/202507060248.aspx