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China Expands Unilateral Visa-Free Policy to Latin America to Attract Foreign Visitors

To address its economic downturn and the decline in foreign investment, China has introduced unilateral visa-free policies to attract more foreign visitors. This initiative began with several European countries in December 2023.

Starting June 1, 2025, China has for the first time extended its visa-free policy to countries in Latin America and the Caribbean, granting visa exemptions to holders of ordinary passports from Brazil, Argentina, Chile, Peru, and Uruguay. From June 1, 2025, to May 31, 2026, citizens of these five countries may enter China without a visa for up to 30 days for purposes such as business, tourism, family visits, exchanges, or transit.

With this expansion, a total of 43 countries are now eligible for China’s unilateral visa-free entry policy.

In addition, China recently launched an “ASEAN Visa” program targeting the 10 ASEAN member states and ASEAN observer Timor-Leste. Under this initiative, eligible business travelers from these 11 countries, along with their spouses and children, may apply for a five-year multiple-entry visa, with a maximum stay of up to 180 days per visit.

Sources:
1. Xinhua, June 2, 2025
http://www.news.cn/mrdx/20250602/1768df32d30f4fa39dd2e4c8f33bd7fc/c.html
2. Guancha, June 6, 2025
https://www.guancha.cn/qiche/2025_06_06_778453.shtml

Briefings | | |   Economy/Resources Geo-Strategic Trend

Temu and Shein See Sharp Decline in U.S. Sales Amid Tariff Hikes and De Minimis Crackdown

Following Trump’s imposition of higher tariffs on Chinese goods and a crackdown on the “de minimis” loophole, Chinese e-commerce platforms Temu and Shein have seen a sharp decline in popularity in the U.S. market.

The “de minimis” exemption previously allowed tax-free treatment for e-commerce parcels valued under $800. Chinese platforms like Temu and Shein took advantage of it and became the biggest shippers. Now, those goods are subject to a 54 percent tariff and the per-item postal duty was increased to $100 in April and May and $200 starting in June.

Several measures in the U.S. have shown Temu and Shein’s sales declines:

  • Daily Active Users (DAUs): Temu dropped by 52 percent in May compared to March; Shein declined by 25 percent.
  • Monthly Active Users (MAUs): Temu dropped by 30 percent and Shein 12 percent.
  • Rankings in the Apple App Store: Temu fell to the 132nd place from its top-three standing a year prior; Shein slipped to 60th, down from the top ten.
  • Advertising spending in the U.S.: In May, Temu cut its ad budget by 95 percent year-over-year; Shein by 70 percent. In April, Temu reduced their ad budget by 40 percent and Shein 65 percent.

According to CNBC, Temu and Shein have begun adjusting their supply chain strategies, moving away from the “China direct shipping” model – where suppliers ship directly to consumers – to setting up local warehousing and distribution systems in the U.S. However, this shift introduces additional costs and management challenges.

Amidst the high U.S. tariffs, many Chinese platforms are now accelerating to shift to other markets, particularly in Europe. According to HSBC, 90 percent of Temu’s 405 million global monthly active users in Q2 2025 were from outside the U.S., especially from low-income regions such as Latin America.

Source: Epoch Times, June 5, 2025
https://www.epochtimes.com/gb/25/6/5/n14525505.htm

Briefings | | |   @CS Economy/Resources US-China Relations

Chinese Universities Abandon English Departments Amid Policy Changes and AI Disruption

English departments, once among the most popular programs at Chinese universities, are facing widespread closures across the country. Multiple factors including government policies, AI advancement, and market oversaturation have contributed to the decline of what was previously considered a prestigious field of study.

The trend began gaining attention in October 2023 when the University of Science and Technology of China, a top-tier “985 university,” announced plans to eliminate its English program along with five other undergraduate majors. As the first elite institution to take this step, the decision sparked significant debate about the future of English education in China.

The closures reflect broader policy shifts affecting English language education. China’s “double reduction” policy implemented in 2021 dramatically reduced after-school tutoring, leading to the closure of 95.6% of offline and 87.1% of online supplementary education institutions by September 2022. English training centers, being the most numerous, suffered the heaviest losses.

Further policy changes reduced English instruction hours in public schools. Under new curriculum standards introduced in 2022, English classes now account for only 6-8% of total class time, ranking third from bottom among all subjects, equal to moral and legal education.

Cultural attitudes are also shifting. As China’s international status rises and Chinese culture gains global influence, English is no longer viewed as an essential skill. Teachers report that students increasingly question the importance of learning English.

The job market presents additional challenges. Nearly 994 Chinese universities offer English programs, representing nearly 80% of all institutions, creating severe oversupply. With economic pressures mounting, employers prefer candidates with technical skills over language specialists.

AI technology poses perhaps the greatest threat to English majors’ career prospects. Advanced translation software and artificial intelligence tools now perform many tasks traditionally handled by English graduates, including interpretation and translation work. One teacher noted that some English majors produce work inferior to AI translations, questioning their market value.

A university instructor summed up the transformation: “English was a glorious profession over ten years ago, but the situation is completely different now.”

Source: Central News Agency (Taiwan), June 4, 2025
https://www.cna.com.tw/news/acn/202506040202.aspx

Briefings | | |   Economy/Resources

China Maintains Shipbuilding Dominance Despite US Pressure

China’s shipbuilding industry continues to demonstrate remarkable resilience and competitiveness despite mounting pressure from the Trump administration’s efforts to counter Chinese maritime dominance and revitalize America’s domestic shipbuilding sector.

According to the latest data from the China Association of the National Shipbuilding Industry, China maintained its global leadership position from January to April this year. The country achieved completion volumes of 15.32 million deadweight tons, new orders of 30.69 million deadweight tons, and outstanding orders of 229.78 million deadweight tons, representing global market shares of 49.9%, 67.6%, and 64.3% respectively.

The robust demand has led to unprecedented order backlogs. Companies like Dalian COSCO KAWASAKI Ship Engineering report their shipyards are fully booked until the first half of 2029. Similarly, Hengli Shipbuilding (Dalian) holds approximately 170 ship orders, primarily from European clients, with schedules extending to 2029 and two new shipyards set to commence operations by the end of June.

Industry analysts attribute this sustained growth to several factors, including the aging global fleet and accelerated vessel replacement driven by environmental regulations from the European Union and the International Maritime Organization (IMO). Guangfa Securities analyst Wang Jiahao suggests that while the US Section 301 investigation may create short-term market volatility, it will not significantly impact China’s long-term shipbuilding competitiveness.

The US has responded with targeted measures, including plans to impose higher port fees on Chinese-owned and operated vessels while offering reduced rates for ships built in China but operated by non-Chinese companies. President Trump has also signed executive orders directing national security advisor Mike Waltz to develop strategies for revitalizing America’s domestic shipbuilding industry and maritime employment.

China’s shipbuilding transformation has been remarkably rapid. According to the Center for Strategic and International Studies, China’s share of global commercial shipbuilding grew from less than 5% in 2000 to over 50% by 2024, while the US share remains below 0.1%. The China Shipbuilding Group now produces more commercial vessel tonnage annually than the entire US shipbuilding industry has built since World War II.

Source: Central News Agency (Taiwan), June 3, 2025
https://www.cna.com.tw/news/acn/202506030052.aspx

Briefings | | |   Economy/Resources

Lianhe Zaobao: Caixin Manufacturing PMI Fell into Contraction Range in May

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that, in May, the Caixin China Manufacturing Purchasing Managers’ Index (PMI) fell into contraction territory (below 50) for the first time in eight months, showing the impact of the U.S. tariffs on China’s manufacturing industry.

Caixin’s May manufacturing PMI reached 48.5, a 32-month low. Caixin’s data showed that, in the face of the high tariffs imposed by U.S. President Trump since April 2, China’s sub-index of new export orders in May fell further into the contraction range, the largest decline since July 2023. This also caused the sub-index of new orders in May to fall to a new low since October 2022. On the manufacturing job market side, faced with continued weak demand, the employment sub-index in May continued to decline below 50 and recorded the largest drop this year. The employment of investment goods manufacturing companies decreased significantly.

In the meantime, the National Bureau of Statistics of China released its official May Manufacturing PMI at 49.5. Caixin PMI is a well-respected economic indicator monitored globally by financial institutions. Compared with the government official PMI, the Caixin PMI results represent more on the side of small and medium-sized export-oriented companies.

Source: Lianhe Zaobao, June 3, 2025
https://www.zaobao.com.sg/finance/china/story20250603-6554941

Briefings | | |   Economy/Resources

People’s Daily: Amid U.S. Tariffs, Beijing Pushes for Exporters to Pivot Toward Domestic Chinese Market

People’s Daily reported that, amid the high U.S. tariffs, the Chinese Communist Party (CCP) Politburo (CPC) emphasized the need to accelerate the integration of domestic market and foreign trade at its April 25 meeting. Recently, the General Office of the CCP Central Committee and the General Office of the State Council issued the “Special Action Plan to Boost Consumption,” which proposed the following: “Support foreign trade products in expanding into the domestic market, launch the ‘China Tour of Premium Foreign Trade Products’ campaign, and guide OEM foreign trade enterprises to develop their own brands.”

The Ministry of Commerce launched the “China Tour” campaign in April. By early May it had already generated over 16.7 billion Yuan (US$ 2.3 billion) in intended purchases, attracting more than 2,400 foreign trade enterprises and over 6,500 buyers.

The article listed a few developments:

  • In support of foreign trade companies expanding into the domestic market, 15 major e-commerce platforms quickly responded with a comprehensive package of measures, including direct procurement and supply-demand matchmaking.
  • JD.com announced a special procurement fund and launched a support program to help exporters pivot to the domestic market.
  • Tencent introduced a “zero deposit trial operation” policy across more than 2,600 business categories, allowing merchants to list products without paying a deposit, helping foreign trade firms reduce operating costs.
  • Recently, due to inventory build-up and canceled orders, many foreign trade companies have faced increased financial pressure. In response, Fuzhou City, Fujiang Province is working with financial institutions to defer loan repayments or offer no-principal-renewal loans.

According to statistics, among the hundreds of thousands of Chinese enterprises with export performance in 2024, nearly 85 percent are also engaged in domestic sales, with domestic sales accounting for nearly 75 percent of their total revenue.

Source: People’s Daily, May 16, 2025
https://paper.people.com.cn/rmrb/pc/content/202505/16/content_30073573.html

Briefings | | |   Economy/Resources US-China Relations

BRICS Development Bank Accepts Algeria as a New Member

On May 22, the New Development Bank (NDB), formerly referred to as the BRICS Development Bank, announced that Algeria has officially become a new member.

NDB is a multilateral development bank jointly established in 2015 by the five original BRICS members (Brazil, Russia, India, China, and South Africa), with headquarter in Shanghai. Its goal is to mobilize resources for infrastructure and sustainable development projects in BRICS countries as well as other emerging markets and developing countries.

NDB began its expansion in 2021. To date, Bangladesh, Egypt, the United Arab Emirates (UAE), and Algeria have officially become new member countries.

The BRICS system has also expanded with six new members in 2024–2025, including Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the UAE.

Source: Xinhua, May 22, 2025
http://www.news.cn/world/20250522/dd27412847af4061822c72cb325f98eb/c.html

Briefings | | |   Economy/Resources Geo-Strategic Trend

DW Chinese: Less Than 30 Percent of EU Companies in China Optimistic About Development Prospects

Deutsche Welle Chinese Edition recently reported that, according to the “2025 Business Confidence Survey Report” just released by the European Union Chamber of Commerce in China, the sentiment of European companies in China has fallen to a new low. EU companies in China are generally affected by various uncertainties and lack of optimism about their development prospects. The chairman of the Chamber expressed his belief that the past assumption of easily making substantial profits is gone forever.

Only 29 percent of the surveyed companies said they were optimistic about the growth prospects in China in the next two years, down three percentage points year-over-year. And 73 percent of the surveyed companies said that doing business in China has become more difficult in the past year. This proportion has increased by 5 percent from last year, reaching a record high. Around 38 percent surveyed plan to expand their business in China, a record low compared to 42 percent last year. And about 52 percent said they plan to cut costs in the coming year, another record high.

The annual survey report states that “China’s business environment has deteriorated on many key indicators.” The imposition of tariffs by the United States and recent developments in the European Union are reasons for business anxiety. The survey results show that downward pressure on corporate profits has further intensified over the past year. The Chamber also highlighted growing concerns among businesses about the unpredictability and lack of transparency in Beijing’s policies. Increased political interference in China further increased operational difficulties.

The survey was conducted before the U.S. increased tariffs in April. Business confidence is likely even worse now than when the survey was conducted.

Source: DW Chinese, May 28, 2025
https://tinyurl.com/ymjcds85

Briefings | | |   Economy/Resources Geo-Strategic Trend