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HK01: Canon’s Zhongshan Factory to Close After 23 Years of Operation

Popular Hong Kong online media outlet HK01 recently reported that Canon (Zhongshan) Office Equipment Co. has issued an online announcement declaring the cessation of its operations. According to the notice, due to “significant changes in the operating environment,” the company has decided to halt all production and business activities and officially shut down.

Canon (Zhongshan), established in 2001, is a wholly foreign-owned enterprise set up by Japan’s Canon Corporation in Zhongshan, Guangdong Province. The company specialized in manufacturing color and monochrome laser printers, with most of its products exported to overseas markets. It was once one of the world’s major production hubs for monochrome laser printers, at one point supplying half of the global market. As of April 2022, its cumulative production volume had reached 110 million units.

In the announcement, the company explained that the global laser printer market has been contracting in recent years, placing increasing pressure on its operations. Despite adopting multiple countermeasures, it was unable to reverse the situation. After careful consideration by headquarters, the final decision was made to close the company. Canon Zhongshan stated that it will formulate a compensation plan exceeding legal requirements to help mitigate the impact on employees.

Source: HK01, November 26, 2025
https://tinyurl.com/58st8n35

Briefings | | |   Economy/Resources

China’s Banking Sector Sees Rapid Growth in Distressed-Asset Sales

By the end of the third quarter of 2025, Chinese commercial banks reported a total of 3.5 trillion yuan (US$490 billion) in non-performing loans (NPLs), an increase of 88.3 billion yuan from the previous quarter. The NPL ratio rose to 1.52 percent, up 0.03 percentage points. Profitability has also continued to weaken: in the first three quarters, the sector’s average return on equity fell to 8.18 percent from 8.77 percent in 2024, while return on assets declined from 0.68 percent to 0.63 percent.

Distressed-loan transfer announcements—banks selling off bad-loan portfolios—have surged to 1,166 so far this year, far exceeding the four-year annual average of about 680. On November 14 alone, eight banks disclosed transfers totaling more than 8.5 billion yuan, mostly involving long-overdue loans, many delinquent for over five years. Some asset packages are extremely large, reaching into the tens or even hundreds of billions. In one case, a bank transferred a portfolio with a principal balance of about 500 billion yuan, which ballooned to nearly 700 billion yuan after including interest and penalties.

The liquidation wave now extends beyond loan portfolios. Banks across China—including major state-owned lenders—are directly selling foreclosed real estate, alcohol inventories, and even small tradable goods, rather than relying on court-organized auctions. Many of these assets are being listed at steep discounts, in some cases just 25–30 percent of market value. For example, a property in Guangzhou that previously sold for over 2.2 million yuan was recently listed for under 800,000 yuan. Yet even with heavy markdowns, many properties still struggle to attract buyers, underscoring the depth of the current demand slump.

Source: Epoch Times, November 15, 2025
https://www.epochtimes.com/b5/25/11/14/n14636104.htm

Briefings | | |   @CS Economy/Resources

Pakistani Central Bank Official: “Pakistan Has a Comprehensive Regulatory Framework to Support RMB Use”

At an event marking the 10th anniversary of the renminbi (RMB) clearing bank in Pakistan, Muhammad Malik, Executive Director of the State Bank of Pakistan, said Pakistan has established a comprehensive regulatory framework that fully supports the use and investment of the Chinese currency. He noted that the central bank has been promoting RMB awareness, enhancing transaction-clearing capabilities, and ensuring that local banks and businesses understand the advantages of conducting transactions in RMB.

Zhou Yongkun, Director-General of the Macro-Prudential Management Bureau of the People’s Bank of China, said RMB settlements between China and Pakistan reached 19.4 billion yuan in 2024, accounting for 23 percent of the two countries’ cross-border trade payments.

Source: People’s Daily, November 26, 2025
https://world.people.com.cn/n1/2025/1126/c1002-40611715.html

Briefings | | |   Economy/Resources Geo-Strategic Trend

Analysis: Chinese Migrant Workers May Revolt if They Experience Poverty En Masse

The Epoch Times reports that China is experiencing an unusually early wave of migrant workers returning to their hometowns – months before the Lunar New Year – reflecting widespread job losses and a deepening economic downturn. In response, the Ministry of Agriculture and Rural Affairs has urgently instructed local governments to prevent a “large-scale return to poverty” and to ensure that those previously lifted out of poverty do not become stranded in rural areas without income. Analysts say this early mobilization underscores the authorities’ awareness of the severity of the unemployment crisis facing China’s nearly 300 million migrant workers.

Experts argue that the problem is rooted in long-standing structural issues: migrant workers were never granted full urban residency rights or social benefits, while rural economies remain chronically depleted. With limited job opportunities in both cities and the countryside, official initiatives are widely viewed as superficial and incapable of addressing the underlying causes.

Some analysts warn that a mass return to poverty among migrant workers could pose a significant political risk. Today’s migrant laborers are more skilled, more informed, and more conscious of systemic injustice; in moments of extreme desperation, they may organize resistance—potentially threatening the stability of the communist regime.

Source: Epoch Times, November 20, 2025
https://www.epochtimes.com/gb/25/11/18/n14638607.htm

Briefings | | |   @CS Economy/Resources Social Stability

Chinese Banks and State-Owned Platforms Accelerate Direct Property Sales Amid Market Downturn

China’s real estate supply has expanded beyond traditional developers and second-hand homeowners to include banks, corporations, listed companies, and government platforms, reflecting the mounting pressure of a slowing market.

Several major banks, including Agricultural Bank, Construction Bank, and Bank of Communications, are selling repossessed properties directly online through the “bank direct supply” model, sometimes at 30 percent of market value, bypassing the lengthy traditional auction process. Banks often negotiate directly with defaulted borrowers and enlist intermediaries to manage the sales.

State-owned platforms have also significantly increased property listings this year, spanning residential units, shops, offices, and parking spaces, often priced well below market value. Notable examples include Tianheng Real Estate in Beijing (111 units), Jilin Bank (over 2,000 units), and China General Nuclear Engineering Co. in Dalian (68 units).

This trend underscores how banks and state-owned entities are actively pushing distressed or idle properties into the market to boost liquidity and mitigate losses amid the ongoing housing downturn.

Sources:
1. Epoch Times, November 17, 2025
https://www.epochtimes.com/gb/25/11/17/n14637251.htm
2. Epoch Times, November 19, 2025
https://www.epochtimes.com/gb/25/11/19/n14638962.htm

Briefings | | |   Economy/Resources

Study: China’s Cross-Border Lending Is Shifting Toward Developed Countries – the U.S. Is Borrowing the Most

A new study by AidData, the research lab at the College of William & Mary, finds that China is undergoing a major strategic shift in its overseas lending. Over the past two decades, China’s outbound credit has moved away from low-income and developing countries and toward middle- and high-income economies. The share of Chinese cross-border lending going to low-income countries fell from 88 percent in 2000 to just 12 percent in 2023, while lending to wealthier countries surged to about 76 percent.

Strikingly, the United States is now the largest recipient of Chinese credit, receiving more than $200 billion across over 2,500 projects spread throughout all U.S. states.

The study notes that many of these loans are tied to strategic, not purely commercial, objectives – particularly in high-tech industries, critical minerals, and infrastructure. China’s state-backed financial institutions frequently fund overseas acquisitions by Chinese companies in sectors such as semiconductors, robotics, and biotechnology. This marks a shift from traditional development finance toward lending that directly supports China’s industrial and strategic ambitions.

Analysts say the report raises broader questions about the nature of China’s cross-border financing and its implications for global competition, technology governance, and national-security risk. They caution that China’s “credit pivot” toward richer countries may reshape the landscape of international development finance and heighten concerns among borrowing states.

Source: Deutsche Welle, November 19, 2025
https://www.dw.com/zh/研究中国跨境信贷转向发达国家-美国借的最多/a-74793625

Briefings | | |   @CS Economy/Resources Geo-Strategic Trend

People’s Daily: China Issues €4 Billion Euro-Denominated Sovereign Bonds in Luxembourg

People’s Daily reports that China’s Ministry of Finance has issued a €4 billion euro-denominated sovereign bond in Luxembourg. The issuance was split equally between a 4-year tranche (€2 billion at 2.401 percent yield) and a 7-year tranche (€2 billion at 2.702 percent yield). Demand was exceptionally strong, with total subscriptions reaching €100.1 billion, 25 times the issue size.

This marks China’s first euro-denominated sovereign bond issuance in Luxembourg. The bonds will be listed on both the Luxembourg Stock Exchange and Hong Kong Exchanges and Clearing, enhancing their liquidity and international accessibility. The Finance Ministry stated that the issuance reflects China’s commitment to integrating into global markets, deepening international financial cooperation, and providing diverse investment opportunities for foreign investors.

Source: People’s Daily, November 21, 2025
https://world.people.com.cn/n1/2025/1121/c1002-40608385.html

Briefings | | |   Economy/Resources

Chinese Doctors Face Widespread Pay Cuts Amid Economic Pressures

Salary reductions for Chinese doctors have become increasingly widespread, with some experiencing cuts of 30 percent or even half of their previous earnings. In certain small county towns, doctors have taken on food delivery jobs to make ends meet. According to the “Medical Talent 2024 Salary and Employment Survey Report” released by Huayiwang in June, nearly 58 percent of the roughly 30,000 medical workers surveyed saw their income decline in 2024—mainly due to shrinking performance bonuses. This marks a sharp rise from 37 percent in 2023, signaling a worsening trend.

These pay cuts are not new. A neurologist at a top-tier Beijing hospital reported that the institution has been implementing “disguised salary reductions” for seven to eight years, including freezing raises even after promotions. Since the pandemic, the hospital has also introduced quarterly reductions of 3 to 5 percent, which have accumulated to over 20 percent in the past two years. Hospital leadership has cautioned staff to brace for even tougher times.

Li Ming, a senior administrator at a major hospital in Shanghai, confirmed that salary reductions are now a nationwide trend. In some grassroots hospitals, doctors earn only 2,000 to 3,000 yuan ($280–$420) a month. Hospitals in underdeveloped regions have struggled to cover even basic wages, pushing some physicians to work as ride-share drivers or delivery workers. Even in Shanghai, hospitals have seen pay cuts of 10 to 15 percent, while many doctors elsewhere report total income drops of 30 to 50 percent this year.

Medical professionals point to three main causes: the broader economic slowdown, stricter medical insurance cost controls, and the financial burden of hospital construction and expansion. Performance-based pay, which usually accounts for 70 to 80 percent of doctors’ total income, has been delayed by several months—and in some hospitals, up to half a year. Public data shows that government subsidies make up only about 10 percent of operating budgets at more than 60 percent of China’s public hospitals, forcing institutions to reduce labor expenses. Recently, China’s National Health Commission has stressed gradually increasing the proportion of fixed salaries and establishing more flexible wage adjustment mechanisms.

Source: Central News Agency (Taiwan), November 12, 2025
https://www.cna.com.tw/news/acn/202511120116.aspx

Briefings | | |   Economy/Resources