Summary:
- Hot topics: A round trip to the Moon, EVs and tariffs, and economy
- Insights: EVs and Chinese EVs, dominance and shifting focuses
- Closer to home … CTW24, Digital platform revamp, CWOD and client visit
Hot topics
🚀 Moon landing and back home on the Earth
China’s Chang-e 6 completed a successful round trip to the back of the Moon recently, exemplifying its rapid rise as a scientific superpower. This growth is attributed to increased government funding, research facilities and personnel investment, and a focus on practical applications. The Economics podcasthas a thorough discussion about this topic.
Such dominance is not absolute, science correspondent Ainslie Johnstone points out. While excelling in physical sciences and agriculture, it stays behind Europe and the US in medical research. The West is both concerned and hopeful about China’s scientific progress.
Balancing security concerns with the advantages of collaboration remains a challenge. Like it or not, China is making serious efforts to expand research areas and attract talent, and it being a scientific superpower ultimately benefits everyone through increased scientific knowledge and collaboration.
🚗 China’s EV dominance and challenges
China EV has dominated global conversations about EVs for a while for several reasons, extra tariffs slapped by the US and EU are one of them. There is more to the story, though, such as how the Chinese EV industry speeds ahead in the global EV sector, the shifting landscape of the domestic and global markets, and the present and looming challenges.
As trade wars go, things are never that simple. Tariffs may curb China’s EV sales in Europe but cause other problems at the same time, a former European Automotive correspondent for Reuters, Neil Winton, wrote on Forbes. FT’s Lex page warned that European car makers will not be the only ones bearing the pain of Chinese retaliations. This warning has become a reality in no time. More on this topic in the Insights section of this newsletter.
📈 China’s Market: A Balancing Act for Businesses
A recent survey by the Conference Board, reported by the South China Morning Post, found chief executives of multinationals remain ‘cautiously optimistic’ about the Chinese economy, amid declining consumption, tough local competition, regulatory disruption, harder-to-win profits and geopolitical uncertainty.
Both foreign and Chinese companies face similar challenges, especially geopolitical uncertainties, necessitating a recalibration of strategies and clearer business engagement, the British Chamber of Commerce in China (BritCham China)commented on the finding. Strong alignment with headquarters on China strategy, planning, and risk management is crucial. BritCham repeated a message calling for empowering CEOs and businesses to make independent decisions in a more complex Chinese market.
This echoes one of the key takeaways from the first UK China Summer Conference on June 26, by experts from BritCham, IoD International Trade Group, Beijing to Britain, and Sino Auto Insights. From delivery apps and empty malls to declines in consumer spending and population numbers, it gives an excellent broad lens of the biggest challenges facing China right now. But the bottom line is China’s market presents both challenges and opportunities, as always. By staying informed, adapting strategies, and working together, businesses can navigate these uncertainties and achieve sustained growth.
Further reading:
- What is behind China’s rise as a scientific heavyweight?
- CEOs ‘cautiously optimistic’ about China’s economy amid ‘new competitive reality’
- Opinion | China’s tech development ambitions need more market-based venture-capital funding
Insights: EV and Chinese EV 🚗🇨🇳
We are halfway into 2024, and Chinese EVs still attract worldwide attention. How’s the sector doing over the past several months? The annual report by International Energy Agency (IEA), Global EV Outlook 2024, sheds some light on the subject.
Chinese automakers now produce over half of the world’s electric vehicles, fueled by a decade of heavy investment ($230.8 billion), according to CSIS data. Experts predict Chinese brands will soon dominate the global market, as they gain scale and expertise.
Domestically, the EV market boomed in 2023 (8.1 million registrations, +35% YoY) despite subsidy removal. Exports soared (4 million cars, +65% YoY) with 1.2 million EVs sold to Europe and Asia-Pacific. While national subsidies ended in 2023, provincial support continues.
Looming challenges: trade tensions (EU/US tariffs) and profitability pressures (BYD profit per car at $739, Tesla at $2,919).
Also, closer to home …
💻 We have just revamped the backend of our digital platform…
🤝 We had a busy time on the Cambridge Wide Open Dayreceiving visitors and visiting others.
🧑🤝🧑 We also visited the new home of our client Cambridge Mechatronics Ltd, touring the building, being impressed by the labs, and chatting with our hosts like old friends.
A quick reminder – sign up for Cambridge Tech Week2024.
Immersing yourself in a week of learning, networking and inspiration, 9-13 September. As an official partner of Cambridge Tech Week, Crayfish has more offers for entrepreneurs, investors and innovators to put on their calendars. The early bird discount offer ends on June 28th.