CX Daily: Core Of Guangzhou’s Textile Industry Is Being Shattered

The city is relocating parts of Zhongda market, a decades-old fabric trading and manufacturing hub, 100 kilometers away and not everyone is on board

Mar 13, 2023

Fabric on display at Guangzhou's Zhongda market on Dec. 25, 2015. Photo: VCG

Textile /

In Depth: Core of Guangzhou’s textile industry is being shattered

For more than three decades, Guangzhou’s Haizhu district has been home to the Zhongda market, a thriving hub for fabric trading and garment production that serves customers in China and around the world.

Spurred by the end of China’s battle against Covid-19, the government of Guangdong’s provincial capital has recently accelerated a years-long plan to relocate the market and its approximately 25,000 merchants and business owners that call it home to Qingyuan, a small city nearly 100 kilometers (62 miles) to the north.

Politics /

Xi Jinping reelected as China’s president

Xi Jinping was reelected unanimously as president of the People’s Republic of China and chairman of the country’s Central Military Commission, according to results announced Friday morning during a plenary meeting of the 14th National People’s Congress.

Lawmakers elected Han Zheng as vice president of China, the results showed, replacing Wang Qishan who had been in the position since 2018.

The election results mark the beginning of the third five-year term for Xi to lead the country and its military.

Wang Huning elected head of China’s top national political advisory body

FINANCE & ECONOMY

In 2022, nine Chinese companies raised a total of $3.2 billion by selling GDRs in Zurich.

GDRs /

Chinese share sales in Europe gain importance as financing tool, UBS exec says

Europe is becoming an increasingly important source of equity financing for publicly traded Chinese companies that tap into expanding China-Europe stock connect programs, an executive of global banking giant UBS said.

In 2022, nine Chinese businesses raised a total of $3.2 billion by selling global depositary receipts (GDRs) on the SIX Swiss Exchange in Zurich, data from the bourse showed. That was seven times as much as Chinese companies generated through share sales in the U.S.

Insurance /

Covid vaccinations cost China $21.5 billion over two years

China spent 150 billion yuan ($21.5 billion) in 2021 and 2022 to vaccinate the world’s largest population against Covid-19, according to the National Healthcare Security Administration (NHSA).

The expenses include the purchase of vaccine shots and inoculation costs, paid by the state-run medical insurance fund and fiscal subsidies, according to the administration.

BUSINESS & TECH

Getting its name from “Team up,” Temu wants to replicate PDD’s social commerce model outside China.

PDD /

PDD gears up global push with cross-border platform Temu

Chinese e-commerce heavyweight PDD Holdings Inc. is pushing further into the global market by taking its cross-border retail service Temu to more countries, seeking growth abroad while competition heats up at home.

PDD, formerly known as Pinduoduo, already launched the Temu platform in the United States and Canada. The service will next debut March 13 in Australia and New Zealand, multiple sources told Caixin. PDD confirmed the information.

Electric cars /

Faraday posts losses, awaits capital to start making car unveiled in 2017

Following more than four years of delays, electric-vehicle (EV) maker Faraday Future Intelligent Electric Inc. said it is on track to start production of its first car model at the end of the month if it receives promised funds, despite posting widening losses for 2022.

The company reiterated plans to begin production of its first EV model, the FF 91, on March 30 with initial deliveries promised for the end of April — provided that it can obtain investors’ funds in time and that suppliers meet its requirements. Faraday delayed production of the long-awaited model four times since its launch in 2017 due to insufficient capital.

Quick hits /

Tesla supplier CATL smashes profit estimate as EV sales soar
U.S. and India plan to boost chips collaboration, commerce secretary says