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But with flights remaining limited after China's border reopening in January, European luxury stores will need to wait longer for the return of masses of tourists they once depended on for growth. The average transaction value by Chinese travellers in Europe in March was 28% above 2019 levels, UBS said, citing data from VAT refund provider Planet. Cartier-owner Richemont (CFR.S), Hermes (HRMS.PA) and LVMH were best placed to benefit from wealthy Chinese shoppers, UBS added. As wealthy Chinese return to Europe and other foreign destinations, the appeal of China's Hainan Island, a duty free shopping hotspot, appears to be waning among top luxury spenders. China's "higher income, top luxury spenders (are) already travelling abroad again," she said, leading to an observable lower per-capita spend in Hainan.

Reuters GraphicsMany U.S. importers are still sanguine, but their supply chains could still be disrupted as Vietnam's apparel makers depend on China for about half of their input materials, according to the country's industry association. XINJIANG LINKSWhile the halted shipments represent a tiny portion of the $27 billion worth of garments and footwear Vietnam exported to the U.S. last year, compliance risks may lead to more painful adjustments for Vietnam. That, in turn, will hit U.S. consumers as Vietnam is their main source of cotton apparel, according to the U.S. Department of Commerce. However Nike has significantly reduced its output of apparel and footwear in Vietnam despite the country remaining its main manufacturing hub, according to its latest annual report updated to May 2022. Two officials from U.S. footwear and apparel industry trade associations said the new rules have had no major impact so far on Vietnam and blamed recent job cuts on lower global demand.

☆ China's foreign minister: Both sides of the Taiwan Strait belong to China
▼ + stars: | 2023-04-21 | by ( ) www.reuters.com time to read: +1 min

SHANGHAI, April 21 (Reuters) - China's Foreign Minister Qin Gang said on Friday that both sides of the Taiwan Strait belong to China, and that it is right and proper for China to uphold its sovereignty. Qin made the remarks at the Lanting Forum in Shanghai, where he discussed a wide range of topics from debt, the global economy, and Taiwan. "Recently there has been absurd rhetoric accusing China of upending the status quo, disrupting peace and stability across the Taiwan Strait," Qin said. "It is not the Chinese mainland, but the Taiwan independence separatist forces and a handful of countries attempting to disrupt the status quo," Qin said. Beijing views democratically governed Taiwan as its own territory, a claim the government in Taipei strongly rejects, and routinely denounces high-level meetings between Taiwanese and foreign leaders and officials.

☆ Tesla Counts the Cost of Its Price War
▼ + stars: | 2023-04-20 | by ( Stephen Wilmot | ) www.wsj.com time to read: 1 min

Tesla’s real competitive advantage is in the efficient engineering and manufacturing of EVs. Photo: CASEY HALL/REUTERSIt shouldn’t have been a surprise that big price cuts have a big impact on margins, but such is the magical thinking around Tesla that somehow it was. The electric-vehicle maker reported an 11.4% operating margin for the first quarter, down from 19.2% a year ago. Analysts were expecting 12.2%, according to FactSet. This was the performance metric Wall Street was most focused on after a series of aggressive price cuts by the company, and the stock fell about 4% in after-hours trading.

☆ At Shanghai show, auto rivals lure drivers with in-car karaoke, crystal balls
▼ + stars: | 2023-04-20 | by ( Casey Hall | Thomson Reuters | Casey Has Reported On China'S Consumer Culture Her Base In Shanghai For More Than A Decade | ) www.reuters.com time to read: +4 min

[1/2] A Zeekr X is displayed at the Auto Shanghai show, in Shanghai, China April 18, 2023. REUTERS/Aly SongSHANGHAI, April 20 (Reuters) - Automakers keen to make a splash at the Shanghai auto show showed off vehicles boasting features from crystal balls to in-car karaoke systems and 3D dashboards, as competition to attract drivers heats up in the world's largest auto market. Chinese automakers have been grabbing market share from foreign rivals in recent years in part by courting drivers with tailored lifestyle services and by releasing new models more quickly. "So many new vehicles, so many new Chinese vehicles looking very good," said Patrick Koller, chief executive of French auto parts supplier Faurecia (EPED.PA). This costs a fortune and it doesn't give you the time to really mature innovations and technology," Koller said.

[1/3] BMW's concept model i Vision Dee is unveiled during an event at the Auto Shanghai show, in Shanghai, China April 18, 2023. While the battery-electric vehicle market share of German automakers in China is rising, it is still miniscule. The EV sales of all four German brands added up to only a quarter of BYD's in 2022. "The Chinese market is no longer as stable for German carmakers as it was," Thomas Luk, partner at management consultancy Kearney, said on the sidelines of the Shanghai show. Many are also adopting direct sales, an approach German automakers like BMW and Mercedes-Benz have also said in recent months they are moving towards.

☆ As EV costs tumble in China, an export wave builds
▼ + stars: | 2023-04-19 | by ( ) www.reuters.com time to read: +4 min

[1/5] People use their phones in front of the BYD Seagull that is displayed at the Auto Shanghai show, in Shanghai, China April 19, 2023. Patrick Koller, chief executive of French auto supplier Faurecia (EPED.PA), said the entry-level EV market in Europe was an open lane for Chinese automakers. Koller said he had met with the CEO or chairman of more than two dozen Chinese automakers in Shanghai. Renault’s (RENA.PA) Dacia ships the Spring EV, an entry-level hatchback like the BYD Seagull, to Europe and ranked as the second-largest EV exporter from China last year after Tesla. BYD has not announced export plans for the Seagull, which is priced below what is now the best selling EV in China, the BYD Dolphin, which is priced from 116,800 yuan ($17,000) in China.

[1/2] People use their phones in front of the BYD Seagull that is displayed at the Auto Shanghai show, in Shanghai, China April 19, 2023. REUTERS/Aly SongSHANGHAI, April 19 (Reuters) - At the Shanghai auto show this week, the largest crowds can be found around an unassuming, bright yellow hatchback parked at the booth of China's largest electric carmaker BYD (002594.SZ). "This redefines the whole market in terms of a price value proposition," he said. Russo predicts the value proposition of the Seagull will be compelling to overseas customers. "Affordability is attractive to everyone anywhere, whether it's an emerging market, the United States or Europe, this kind of car with this kind of value proposition will sell," he said.

[1/2] Visitors look at a Tesla Model 3 electric vehicle (EV ) at the third China International Consumer Products Expo, in Haikou, Hainan province, China April 12, 2023. Tesla said on Friday it cut prices in numerous European markets including Germany and France because of a scaling up and improvement in its production capacity. In Germany, Tesla has lowered the price of its Model 3 and Model Y vehicles by between 4.5% and 9.8%, data on its website showed on Friday, marking its second price reduction this year after a price reduction of 1-17% in January. In Singapore, it cut prices of its Model 3 and Model Y vehicles between 4.3% and 5%, its local website showed. Tesla also cut prices in Israel, with the price of the base rear-wheel drive Model 3 slashed by 25% after an initial round of global price cuts in January.

☆ Tesla to skip Shanghai Autoshow, organiser's plan shows
▼ + stars: | 2023-04-14 | by ( ) www.reuters.com time to read: +2 min

SHANGHAI, April 14 (Reuters) - Tesla will not occupy a booth at China's largest annual autoshow to be held next week in Shanghai, according to plans published by the event's organisers. The financial hub is set to host Auto Shanghai between April 18-27. It is Asia's largest auto show where brands from BYD (002594.SZ) to Volkswagen (VOWG_p.DE) are expected to show off their latest models and technologies. Tesla, which has a large electric vehicle factory in Shanghai, has attended the show in past years. Tesla and Auto Shanghai did not immediately respond to a request for comment when asked about the U.S. automaker's participation at the Shanghai auto show on Friday.

☆ Brands look to China's tropical duty free island paradise for consumer comeback
▼ + stars: | 2023-04-14 | by ( Casey Hall | Thomson Reuters | Casey Has Reported On China'S Consumer Culture Her Base In Shanghai For More Than A Decade | ) www.reuters.com time to read: +3 min

HAIKOU, China, April 14 (Reuters) - Representatives of over 3,000 brands including Burberry and Estee Lauder descended on China's Hainan this week to show off their latest wares, hoping to cash in on a post-COVID consumer rebound that has kicked off on the island known for its duty free shopping. It especially boomed during COVID, attracting Chinese shoppers unable to travel abroad due to closed borders. And China further plans to elevate its status: by 2025, it plans to make the whole island duty free, essentially expanding the 10% to 40% cheaper prices on goods from beauty, to alcohol and luxury products from 12 existing duty free malls to the entire province. That has made high-end global consumer firms keen to attend the expo as a way of demonstrating their commitment to China, industry executives said. ($1 = 6.8677 Chinese yuan renminbi)Reporting by Casey Hall; Editing by Kim CoghillOur Standards: The Thomson Reuters Trust Principles.

March 20 (Reuters) - PDD Holdings Inc (PDD.O), which owns discount e-commerce platforms Pinduoduo and Temu, on Monday missed expectations for fourth-quarter revenue as China's post-re-opening consumer recovery remains patchy. PDD reported revenue of 39.82 billion yuan ($5.79 billion) for the quarter ended Dec. 31, up 46% year-on-year, but this fell short of estimates for 41.01 billion yuan, based on Refinitiv data. The group had reported 65% revenue growth in its third- quarter earnings last November. The company's revenue growth compares with single-digit gains reported by Chinese competitors Alibaba (9988.HK) and JD.com (9618.HK) for the same period. Temu's 2023 expansion will include roll outs in Canada, Australia, New Zealand and the UK.($1 = 6.8799 Chinese yuan renminbi)Reporting by Chavi Mehta in Bengaluru; Editing by Shinjini Ganguli and Jane MerrimanOur Standards: The Thomson Reuters Trust Principles.

ZURICH/BERLIN/LONDON, March 20 (Reuters) - Urs Kessler, who runs Jungfrau Railways, a train that takes tourists up the highest mountain in Switzerland, was excited for the return of Chinese tourists after COVID-19 restrictions were lifted late last year. Chinese outbound flight bookings to Europe during March and August are only 32% that of pre-pandemic levels, according to travel data firm ForwardKeys. OPTIMISM FOR THE FUTUREMany tourist operators and retailers hope the second half will bring a relaxation in visa policies, more flights and the long-expected influx of Chinese tourists. Harrods launched branded stickers, including its iconic teddy bear, on China's popular WeChat messaging platform this year to attract Chinese tourists. Kessler believes his Lang Lang campaign was still worth it.

Starbucks (SBUX.O) warned of a "cautious" recovery in its China sales. "Consumers have become more meticulous in their spending," its chief executive, Xu Lei, said in an earnings call on Thursday. "Now the Chinese tourists are either super rich or very poor," said the owner, who spoke on condition of anonymity. "This suggests that once the initial reopening rebound has happened, we shouldn't expect a further surge in consumer spending," he wrote in a note to clients. ($1 = 6.8780 Chinese yuan renminbi)Editing by Marius Zaharia and Bradley PerrettOur Standards: The Thomson Reuters Trust Principles.

In U.S. federal court, SHEIN has accused Temu of contracting social-media influencers to make "false and deceptive statements" against SHEIN in their promotions of Temu.com. If Temu loses, Temu could be forced to curtail what so far has been a key marketing strategy. SHEIN seeks to block Temu from using SHEIN's name for marketing, and it wants damages from sales that SHEIN can show came through deceptive or infringing marketing. Social media influencers on TikTok often mention SHEIN in posts about Temu, comparing the companies and their merchandise. In the U.S., Temu is paying social media influencers $100 to $1,000 an hour for content plugging the Temu marketplace on TikTok, Instagram and YouTube.

☆ Need a nanny? Chinese school trains women to take care of newborns
▼ + stars: | 2023-03-08 | by ( Casey Hall | ) www.reuters.com time to read: +3 min

Confinement care is not new in China, where the practice of one month confinement post-birth, which traditionally included strict rules around bathing, hair washing and teeth brushing for mothers, has long been the norm. What is different today is the professionalism and expectations of those doing the caring, says Jiang Lei, a teacher at the centre. "We need professionals to do professional things for professional people," Jiang added, explaining that the centre teaches "scientific feeding knowledge, sleep cultivation and other knowledge such as early childhood education". The experience of caring for her own child made the idea of a career in childcare attractive, she said. ($1 = 6.9045 Chinese yuan renminbi)Reporting by Casey Hall; Editing by Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

[1/5] Elderly visitors enjoy the sunshine, at a nursing home of Lendlease's Ardor Gardens in Shanghai, China February 27, 2023. Lim says "stigma" around retirement homes in China is quickly disappearing. About 4% of people aged 65 and over in Britain live in retirement homes, according to information service Lottie. Ding Hui, China managing director at Australian real estate firm Lendlease (LLC.AX), expects demand for retirement homes to rise sharply in the next five to 10 years. Government-run nursing homes with basic facilities in Shanghai and Beijing are much cheaper, at about 2,000 yuan ($290) a month.

☆ Tesla sold 74,402 China-made EVs in February, up 32% y/y
▼ + stars: | 2023-03-03 | by ( ) www.reuters.com time to read: +1 min

[1/2] The logo of Tesla is seen at a Tesla Supercharger station October 21, 2020. REUTERS/Arnd WiegmannCompanies Tesla Inc FollowSHANGHAI, March 3 (Reuters) - Tesla (TSLA.O) sold 74,402 China-made electric vehicles (EV) in February, up 31.65% from a year earlier, China Passenger Car Association (CPCA) data showed on Friday. That was up 12.6% from January, when the U.S. electric car maker delivered 66,051 China-made Model 3 and Model Y electric cars. Rival BYD with its Dynasty and Ocean series of EVs and hybrids sold 191,664 vehicles last month, CPCA data showed. It has started delivering cars to Thailand and set up its first Supercharger station in there in February.

☆ U.S. businesses in China are more pessimistic about prospects -survey
▼ + stars: | 2023-03-01 | by ( Casey Hall | ) www.reuters.com time to read: +1 min

SHANGHAI, March 1 (Reuters) - U.S. businesses operating in China are increasingly pessimistic about their prospects in the world's second-largest economy, according to a survey released Wednesday by the American Chamber of Commerce in China. For the first time in the 25-year history of AmCham China's business sentiment survey, a majority of responding companies said China is no longer seen as a "top three investment priority". Most said they were revising China investment plans to invest the same or less overall in the country, though the vast majority also reported no plans to relocate their operations out of China completely. Rising U.S.-China tensions remain the top business challenge, cited by 66% of respondents, while 65% of members said they were "unsure or uncertain" that China will further open to foreign investment. Almost half of the American businesses surveyed said they feel less welcome in China than they did a year ago.

Some Chinese youth who spoke to Reuters reflected the sense of frustration. But China's Gen Z has its own characteristics that present a dilemma for Xi, some analysts said. A survey of 4,000 Chinese by consultancy Oliver Wyman found Gen Z to be the most negative about China's economic outlook of all the age groups. FIXING THE YOUTHIn a New Year speech, Xi acknowledged the need to improve the prospects of China's youth, without mentioning the protests against his zero-COVID approach. Making housing more affordable could mean allowing a sector responsible for a quarter of China's economic activity in recent years to collapse.

☆ China's 'great migration' kicks-off under shadow of COVID
▼ + stars: | 2023-01-07 | by ( Casey Hall | ) www.reuters.com time to read: +6 min

BORDER REOPENINGSunday marks the reopening of China's border with Hong Kong and the end of China's requirement for inbound international travellers to quarantine. More than a dozen countries are now demanding COVID tests from Chinese travellers, as the World Health Organisation said China's official virus data underreported the true extent of its outbreak. In Shanghai, for example, the city government on Friday announced an end to free PCR tests for residents from Jan. 8. China has relied on nine domestically-developed COVID vaccines approved for use, including inactivated vaccines, but none have been adapted to target the highly-transmissible Omicron variant and its offshoots currently in circulation. China reported three new COVID deaths in the mainland for Friday, bringing its official virus death toll to 5,267, one of the lowest in the world.

☆ China reports three COVID deaths for January 6
▼ + stars: | 2023-01-07 | by ( ) www.reuters.com time to read: 1 min

SHANGHAI, Jan 7 (Reuters) - China reported three new COVID-19 deaths in the mainland for Jan. 6, compared with five deaths a day earlier, the Chinese Center for Disease Control and Prevention said on Saturday. The official death toll now stands at 5,267. Reporting by Casey Hall; Editing by Jacqueline WongOur Standards: The Thomson Reuters Trust Principles.

☆ China fx reserves rise $11 bln to $3.128 trillion in December
▼ + stars: | 2023-01-07 | by ( ) www.reuters.com time to read: 1 min

BEIJING, Jan 7 (Reuters) - China's foreign exchange reserves rose in December, official data showed on Saturday, as the dollar fell against other major currencies. The country's foreign exchange reserves - the world's largest - rose $11 billion to $3.128 trillion last month, compared with $3.154 trillion predicted by a Reuters poll of analysts and $3.117 trillion in November. The yuan rose 2.8% against the dollar in December, while the dollar last month fell 2.3% against a basket of other major currencies . China held 64.64 million fine troy ounces of gold at the end of December, down from end-November. The value of China's gold reserves rose to $117.24 billion at the end of December from $111.65 billion at end-November.

☆ Tesla owners in China protest against surprise price cuts they missed
▼ + stars: | 2023-01-07 | by ( ) www.reuters.com time to read: +5 min

[1/3] People protest at a Tesla showroom in Chengdu, Sichuan, China, released January 6, 2023 in this picture obtained by Reuters from social media. After Friday's surprise discounts, Tesla's EV prices in China are now between 13% and 24% below their September levels. 'RETURN THE MONEY'Other videos appearing to be of Tesla owners protesting were also posted to Chinese social media platforms on Saturday. Tesla does not plan to compensate buyers who took delivery before the most recent price cut, a spokesman for Tesla China told Reuters on Saturday. Analysts have been positive about the potential for Tesla's price cuts to drive sales growth at a time when it is a year from announcing its next new vehicle, the Cybertruck.

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