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On July 5–6, Alibaba’s instant commerce arm, Taobao Shangou, tied its own record by completing 80 million on-demand deliveries in a single day, marking a 15% weekly surge in daily active users—now estimated at 230 million. Meituan responded in kind, logging a jaw-dropping 150 million daily orders during the same weekend. JD.com also joined the fray, offering 25 million daily food delivery orders by June. Together, these three platforms pushed daily order volume north of 230 million, fueled by an aggressive campaign of consumer incentives. Fueling the Fire: Subsidies and Super Saturdays Alibaba’s “Super Saturdays” initiative offered subsidies of up to 188 yuan (~US$26) every weekend over a 100-day period. Meituan went even further, offering free milk tea, while JD.com promised 100,000 crayfish servings nightly at just 16.18 yuan. These deep discounts overwhelmed merchants—some coffee shops and drink stands halted in-store services due to overwhelming orders. Market Share, Profit, and Strategy Meituan led the food delivery space in 2024 with a 65% share, while Ele.me held about 33%; other platforms combined for just 2%.Alibaba is investing heavily—bankrolling a ¥7 billion (US$1 billion) push into instant commerce—while JD.com committed $1.4 billion. This resemble past subsidy wars circa 2016, but unlike then, the current effort plays out amid weak consumer sentiment and thin margins, prompting regulatory scrutiny. Tech, Operations, and Merchant Overload Rapid scaling has tied data and tech tightly to delivery execution. Meituan reported 30% year-over-year growth in 30-minute deliveries, while platforms lean on AI for order routing and automated support. Merchant experiences speak volumes: in Sichuan’s Daizhou, one drink franchise saw orders explode from dozens to over 300 daily, while in Chengdu, outlets processed 700–800 orders per day. Beijing’s Two-Pronged Signal State media has offered mixed messages. A People’s Daily commentary warned that infinite subsidies risk distorting markets. Another praised their role in revitalizing small businesses, raising consumer appetite, and supporting workers. The implicit message? Regulators allow “orderly competition,” but expect platforms to curb waste and shift toward innovation and sustainability.

Photo by Michael Pham In the first half of 2025, China’s parcel delivery industry handled over 95 billion packages, a 19% increase from the same period last year. On average, more than 520 million parcels were delivered every day. That’s equivalent to nearly 12 packages for every person on Earth, highlighting just how massive this logistical engine has become. China crossed the 50-billion parcel milestone 18 days earlier than it did in 2024, showing just how fast the country’s delivery network is scaling alongside domestic consumption. A Major Driver for China’s Economy According to the State Post Bureau, the express delivery sector is playing a growing role in boosting consumer activity and supporting the broader real economy. In the first half of 2025, 95.64 billion express parcels were handled, the entire postal industry brought in ¥873 billion (US $122 billion) in revenue, and express delivery revenue grew by 10.1%, while overall industry growth was 8.3%. Officials see delivery services as essential infrastructure that now supports everything from online retail to rural development and agriculture. In cities like Shenzhen and Beijing, platforms like Meituan are running drone delivery pilots, offering snacks and essentials in as little as 10 minutes. Delivering to Every Corner—Including Remote Areas The delivery boom isn’t only happening in major cities. In Yarkant County, Xinjiang, for example, local residents can now pick up school supplies and groceries just steps from home. In Guangdong, known for its lychee harvest, farmers are using cold-chain delivery—via high-speed rail and air—to ship fruit to customers in cities like Beijing and Shanghai within 24 hours of being picked. Technology Is Changing the Game To manage this fast-growing volume, Chinese delivery companies have been upgrading infrastructure and investing heavily in automation and smart logistics. Developments include more airfreight and rail-air transport routes, automated sorting hubs and unmanned vertical warehouses, and AI-driven sorting and dispatch systems. In Rui’an, Zhejiang, SF Express has deployed a drone line to transport freshly picked bayberries to nearby cities. After the first morning harvest, drones carry 50 kilograms of berries to local markets, where they are either delivered within hours or packed for overnight cold-chain shipping. Local farmer He Duanzhi now relies on cold-chain logistics for 90% of his daily sales. In cities like Shenzhen and Beijing, platforms like Meituan are running drone delivery pilots, offering snacks and essentials in as little as 10 minutes. Autonomous Vehicles Still in Early Stages Ground-based automation is also expanding—but more cautiously. Companies like Alibaba’s Cainiao are testing driverless delivery vans, but they remain in trial stages, mostly operating in limited, controlled environments. While there are long-term plans to scale up these vehicles, current deployment numbers remain relatively low compared to future targets. Behind the scenes, AI technology is already playing a major role in speeding up sorting, route planning, and customer service. What’s Next for 2025? Officials at the State Post Bureau expect the growth to continue into the second half of 2025. With deeper integration of new technology, improved service capacity, and broader rural coverage, China’s logistics network is becoming one of the world’s most advanced and essential engines of domestic commerce.

Photo by David Kristianto Labubu, the quirky toy goblin from Pop Mart, has become a global collectible sensation in 2025. Fans are lining up overnight to get one, and resale prices can reach hundreds of dollars. This intense shortage has led some to wonder if Pop Mart is deliberately restricting supply to increase hype. However, insiders reveal that the real reason behind the shortage is more complicated. Why Can’t Pop Mart Simply Make More? Pop Mart relies on external factories, known as Original Equipment Manufacturers (OEMs), rather than making toys itself. While many Chinese factories can mass-produce toys quickly, Pop Mart’s extremely strict quality and intellectual property standards limit the number of eligible manufacturers. Some factories even withdraw after seeing Pop Mart’s rigorous requirements, further restricting supply. Demand Growing Faster than Production Pop Mart was unprepared for Labubu’s explosive popularity. Every time they ramp up production, demand surges even higher. In June, the company did a massive restock of Labubu 3.0 through Tmall, selling 700,000 units almost immediately. Yet this move caused resale prices and Pop Mart’s stock to briefly dip, showing the risks of scaling too quickly. Pop Mart’s Plan to Fix the Shortage To manage demand better, Pop Mart announced it will delay launching some new characters to prioritize boosting Labubu production. The goal is to let genuine fans buy the toys without overpaying or facing endless queues, easing tensions in the resale market. Still, Pop Mart must protect the brand’s feeling of exclusivity. The blind-box model, where consumers don’t know exactly what they'll get, encourages repeat buying and higher spending, and remains essential to the company’s success. A Risky Boom for Pop Mart Labubu’s popularity has significantly boosted Pop Mart’s revenue, which jumped 170% year-on-year in early 2025. The company is also expanding into new merchandise like giant Labubu statues and jewelry. But this success comes with risks, including potential regulatory scrutiny around blind-box sales, particularly regarding younger customers in China. More than Just Marketing Is Pop Mart intentionally creating shortages? Not exactly. The scarcity is mainly driven by cautious growth strategies and high standards for quality and brand protection. Labubu’s explosive growth has outpaced the company’s ability to supply it, leaving Pop Mart racing to catch up without losing the magic that made Labubu so popular in the first place.

Image by Sturti China is shifting its tech strategy. After the spotlight on “Made in China 2025,” it now wants to lead in a new wave of industries called “future industries.” These are sectors based on early-stage but powerful technologies—like AI, quantum computing, biotech, and clean energy. The government first highlighted these industries in 2020, and the list keeps growing. In 2024, China added even more futuristic areas, such as humanoid robots, 6G internet, brain-computer interfaces, and large-scale AI data centers. Meet the “Little Dragons” of China Tech Hangzhou, a city in eastern China, is becoming the country’s next Silicon Valley. It’s home to a group of standout start-ups known as the “Six Little Dragons”: DeepSeek  – AI development Game Science  – creator of Black Myth: Wukong Unitree & Deep Robotics  – humanoid robotics BrainCo  – brain-tech company Manycore  – focused on spatial intelligence China now has more than half of all publicly listed humanoid robotics companies in the world. It's also home to nearly half of global humanoid system developers. Biotech: A Fast-Growing Strength China is also gaining ground in biotech. By March 2025, it had approved five CAR T-cell therapies—powerful treatments for blood cancers—just behind the U.S., which has six. Companies in robotics and AI are offering salaries up to four times higher than the national average to bring in experienced talent. Big players like WuXi AppTec are becoming global leaders. A U.S. report even compared WuXi’s influence in biotech to Huawei’s past dominance in telecom, showing how seriously China is taken in this space. Attracting Top Talent with Big Pay Even as many job markets struggle, China’s future tech industries are booming. Companies in robotics and AI are offering salaries up to four times higher than the national average to bring in experienced talent. To speed things up, the Chinese government now posts real-world “tech challenges.” Teams that solve them within two years get priority funding and resources. Backed by Big Money China is also rolling out new ways to fund innovation. The government is reopening its tech stock markets to allow startups without profits to raise money—something that wasn’t allowed before. Meanwhile, Shanghai is testing new financial tools, like blockchain-based trade finance and innovation bonds, to help private equity firms invest in breakthrough tech. The Broader Context China’s investment in future industries isn’t just about tech—it’s about leadership. From brain-inspired AI to clean hydrogen and personalized medicine, these sectors could reshape not only China’s economy but also the global tech order. While the U.S.–China tech rivalry continues, China’s long-term strategy is clear: build early, scale fast, and lead the future.

Image by YuriArcurs Fudan University has just added two of Europe’s most respected medical scientists to its ranks: Roland Eils and Irina Lehmann. Known globally for their pioneering work at the intersection of AI and medicine, the married duo brings decades of experience from leading institutions like the Berlin Institute of Health, Charité University, and the University of Heidelberg. Eils, a computational biologist, was listed among the world’s most cited researchers in 2022 and has shaped Germany’s digital health strategy for years. Lehmann, a top epigenetics and molecular epidemiology expert, has led EU-funded machine learning projects tackling asthma and chronic respiratory diseases. Together, they’ve published over 1,000 scientific papers cited more than 100,000 times Their move to China is more than a career switch—it’s a sign of shifting global scientific gravity. Why Fudan? Why Now? Fudan University is ramping up efforts to become a global powerhouse in AI-driven medicine. In 2022, it established the Intelligent Medicine Institute to merge deep tech with life sciences. The goal is to turn China into a leader in medical innovation, moving beyond hardware and manufacturing toward brainpower and biotech. The institute’s first global summit in 2023 attracted researchers from around the world and signaled China’s ambition to shape the future of digital health. Eils and Lehmann's appointment adds significant credibility and firepower to that mission. While Western governments debate over research decoupling and security, China is quietly offering world-class labs, funding, and academic freedom in frontier sectors like AI medicine. They will also launch a German-Chinese joint laboratory at Fudan, potentially becoming a new bridge between Europe and China in the medical AI space. The Strategic Significance Eils and Lehmann’s expertise goes beyond academic research. They’ve led high-impact projects like the COVID-19 virus mechanism mapping, built AI models using genomics and retinal scans, and developed early detection systems for metabolic diseases. Their presence in China could accelerate domestic breakthroughs while positioning China as an exporter of AI-based medical technologies. This aligns with China’s broader strategy to localize innovation, attract global talent, and reduce reliance on Western health technologies. Talent Magnetism: A Quiet Brain Gain China has shifted gears from being a brain drain country to a brain magnet. While Western governments debate over research decoupling and security, China is quietly offering world-class labs, funding, and academic freedom in frontier sectors like AI medicine. Recent hires like former Apple engineer Kong Long at Fudan show that this isn’t a one-off—it’s a trend. According to the Chinese Ministry of Education, more than 80,000 foreign experts worked in China’s universities and research institutions in 2023, an increase from previous years. China’s AI Medicine Push China has identified healthcare AI as a strategic priority in its Five-Year Plans. Backed by enormous health data sets, an aging population, and top-down policy support, it is uniquely positioned to scale medical AI. From using large language models in diagnostics to deploying real-world health applications, China is not just catching up—it’s carving out a new path. The arrival of global leaders like Eils and Lehmann sends a clear signal: China is not just a manufacturing superpower—it wants to lead the future of medicine.

Photo by Victor Sergeevich China's 618 festival—the world's largest e-commerce sales event—ran for 39 days, being the longest ever, and generated a staggering 855.6 billion RMB (approx. $118 billion) in gross merchandise value, up 15.2% from last year. But here’s the catch: daily average spending actually dipped from 24.8 billion RMB to 23.1 billion RMB. That means more people bought, but at a calmer pace. Fewer all-nighters. Less “midnight madness.” This wasn’t because people stopped shopping—it’s because how they shop has fundamentally changed. The Festival Got Longer, Simpler—and Smarter To drive engagement, platforms stretched the event from a few days to over a month. Government-backed subsidies also encouraged spending, especially on electronics and appliances. But what really helped? Simplified rules. In the past, users had to solve discount puzzles like “spend 300, get 50 back,” stacking coupons and rushing to meet thresholds. Now, platforms like JD and Taobao favor straight discounts per item—no calculators needed. Less Noise, More Value For years, these mega-sales thrived on hype. There were celebrity concerts, livestream countdowns, and deals meant to create FOMO (fear of missing out). Now, it’s quieter—but consumers aren’t complaining. That’s because the new focus is value over volume. Shoppers aren’t hunting for the cheapest item anymore. They’re looking for quality, usefulness, and transparency. You could call it “rational consumption.” Livestreaming Changed the Game Back in 2016, platforms like Mogujie and Taobao Live pioneered livestream shopping. Instead of waiting for a big festival, influencers now sell directly to their audiences daily—creating bursts of spending all year round. It’s no longer about one or two massive days. People discover products through their favorite streamers every day. Think of it as a steady drip, not a tidal wave. Small-Town Boom: The Rise of Lower-Tier Markets While urban shoppers are becoming more selective, China’s rural population is entering the e‑commerce scene with strong momentum. Last year, rural incomes grew 6.6%, outpacing urban growth at 4.6%. Anecdotal reports suggest younger rural consumers in lower-tier areas are showing increasing confidence in their economic prospects. Platforms are shifting focus to counties and villages—not just big cities. Brands are now customizing campaigns to reach this emerging frontier. Platforms Are Changing Too E-commerce is moving away from “price wars” and toward better shopping experiences. Apps like Xiaohongshu are turning product discovery into a lifestyle—where users browse content like they would on Instagram, but can buy in just a tap. Instead of flashy deals, they’re building trust and community. The Festival Isn't Dead—It's Just Grown Up China’s e-commerce festivals like 618 and Double 11 (the world's second largest e-commerce event after 618) were once wild, noisy celebrations of consumption. Now, they reflect a more mature, everyday kind of shopping: less about hype, more about habit. The massive sales numbers prove the appetite is still there—but consumers are smarter, calmer, and more intentional. It’s not the end of e-commerce festivals. It’s their evolution.

Photo by THE CHINA NOW Short answer? No. A Starbucks spokesperson confirmed the company is committed to China and looking for strategic partners with shared values. According to CNBC, the company is in talks with around 30 potential investors — including global names like KKR, Carlyle, Hillhouse Capital, and Centurium, a firm that already owns a stake in rival Luckin Coffee. The company may retain a 30% stake in its China business, with the remaining shares spread among multiple partners. Why It Matters Now China is Starbucks’ second-largest market with 7,594 stores. But after years of growth, things have slowed. In the most recent quarter, sales in China were flat — a significant shift after four straight quarters of declines. Starbucks' shift isn’t just about money — it's about survival and adaptability. This move comes as Starbucks faces pressure to revamp its growth strategy. CEO Laxman Narasimhan has been focused on turning things around globally, and China is a key part of that plan. Local Rivals Are Getting Stronger Starbucks is facing fierce competition from cheaper Chinese brands like Luckin Coffee and Cotti Coffee, both which have pressured Starbucks’ share to drop from 34% in 2019 to 14% in 2024. These brands offer faster service and lower prices — often backed by strong local tech and delivery ecosystems. As a result, Starbucks has begun doing something it rarely does: lower prices. In recent months, it cut prices on some items to stay relevant in a more value-driven consumer market. A Deal Is in the Works — But Not Yet Final According to reports, bidders could be shortlisted in the next two months, but the deal is unlikely to close before the end of 2025. The partnership could take the shape of a joint venture, similar to how McDonald’s restructured its China operations in 2017. What This Signals Starbucks' shift isn’t just about money — it's about survival and adaptability. By partnering with local investors and keeping a meaningful stake, the company aims to stay alive and competitive while gaining better insight into local market dynamics, supply chains, and consumer preferences. This marks a new era of international business in China, where global companies stay relevant by teaming up rather than going it alone. They seem to have no other option.

Photo by Raimond Spekking Chinese AI models are no longer just domestic tools — they are now being adopted by major global companies. Banks like Standard Chartered and HSBC, as well as Saudi Aramco, are testing or using DeepSeek, a Chinese large language model (LLM), in real-world operations. Even Microsoft and Amazon Web Services have added DeepSeek to their cloud platforms, allowing developers worldwide to use it alongside American models like OpenAI’s ChatGPT. Price Makes All the Difference One of the most compelling reasons companies are switching to Chinese models is cost. DeepSeek is reportedly up to 17 times cheaper than some of its Western competitors, a massive advantage for companies in emerging markets or cost-conscious industries. This affordability doesn’t come at the expense of quality. In some benchmarks, DeepSeek has delivered competitive results compared to more expensive models — making it especially appealing for businesses managing large-scale deployments. Chinese AI isn’t just being adopted in Asia or the Middle East — it’s gaining traction in Africa, Latin America, and Southeast Asia, regions where cost and infrastructure play a big role in tech decisions. Open Source and Customization Win Points Chinese models like Alibaba’s Qwen are also leading in open-source flexibility. Unlike many Western models that are closed or commercial-only, Qwen allows developers to freely access and modify the code. The result? Over 90,000 enterprises and 2.2 million users have already built tailored versions of Qwen to meet their specific needs — from internal chatbots to AI-driven logistics tools. Expanding in Unexpected Places Chinese AI isn’t just being adopted in Asia or the Middle East — it’s gaining traction in Africa, Latin America, and Southeast Asia, regions where cost and infrastructure play a big role in tech decisions. For example, local startups in Brazil and Indonesia are using Chinese open-source models to build chatbots, virtual tutors, and AI assistants. In Africa, universities are using Qwen-based tools for curriculum development and research automation. A Quiet Shift in Global AI Leadership Cloud platforms are taking note. Microsoft’s Azure, AWS, and other major providers are now offering Chinese AI models alongside U.S. options — an acknowledgment that global demand is shifting. Meanwhile, China's AI sector is heavily backed by national investment. Models like Qwen and DeepSeek are backed by Alibaba, Zhipu AI, and others, all supported by China’s state-backed drive to lead in AI infrastructure, chips, and applications. The Global AI Landscape Is Rebalancing For years, Western companies led the AI conversation. But that dominance is no longer guaranteed. With lower costs, open-source accessibility, and growing real-world use, Chinese AI models are not only competing — they are quietly becoming the preferred choice in many sectors. The next phase of the AI race might not be about who builds the most powerful model, but who gets adopted first and at scale. Right now, China is making serious progress on both fronts.

Photo by Gage Skidmore U.S. President Donald Trump has just passed a major economic law known as the One Big Beautiful Bill. It's packed with dramatic changes: permanent tax cuts, higher defense spending, cuts to healthcare, and a US$5 trillion increase in America’s debt ceiling. While the bill isn’t directly targeting China, many experts believe its effects will be felt far beyond U.S. borders — especially in Beijing. Clean Energy Takes a Hit One of the bill’s biggest shakeups is to clean energy. By slashing subsidies and delaying green investment, Trump’s move could derail dozens of U.S.-based solar, wind, and EV projects — many of which are connected to Chinese supply chains. Some Chinese analysts say this could hurt demand for Chinese-made parts in the short term. But others argue it might actually help China in the long run, by allowing Beijing to pull further ahead in global green tech while the U.S. slows down. $3 Trillion and Counting The U.S. is now on track to add over US$3 trillion to its deficit within the next 10 years, according to official projections. That’s raising red flags about America’s economic stability — and shifting global investment strategies. Higher deficits often mean higher interest rates. That can strengthen the U.S. dollar, making Chinese exports more expensive globally. But it may also cause U.S. companies to bring more cash back home, disrupting the global flow of capital. Some analysts believe the U.S. may eventually try to stabilize relations with China — not out of friendship, but to focus on building strength at home. New Powers for Trump on Trade The bill gives President Trump broader authority to act on trade. He can now impose tariffs or offer subsidies with less oversight — something that could increase economic pressure on China, especially in tech and critical raw materials. Chinese researchers say this might lead to a more aggressive U.S. push to cut reliance on Chinese energy and tech, while simultaneously isolating China from U.S.-led markets. More Tension — or a New Balance? There are concerns the law could deepen military competition, especially as it boosts defense and drone spending. That said, some analysts believe the U.S. may eventually try to stabilize relations with China — not out of friendship, but to focus on building strength at home. Trump’s hardline economic approach may reduce U.S. soft power globally, but it could also reshape its internal structure, attracting capital and talent. That could make America a stronger rival — but with new vulnerabilities. China's Strategic Opening Despite the risks, China might still find ways to benefit. If the U.S. damages its own clean-energy sector, Beijing could expand its global lead in electric vehicles, solar energy, and autonomous driving. As Thomas Friedman wrote in The New York Times , “The Chinese can’t believe their luck.” America’s decision to weaken its own future industries may offer China space to grow stronger in areas critical to the global economy. The Bigger Picture This new law is not just about tax and spending. It reflects a deeper shift in U.S. strategy — inward-looking, unpredictable, and increasingly focused on competition with China. Whether this becomes a moment of advantage for Beijing or a turning point in U.S.–China tensions will depend on how both sides adapt.

Image by THE CHINA NOW In 2025, China and the U.S. agreed to pause their latest trade war for 90 days. But behind the scenes, China is already building long-term defenses. The country’s next Five-Year Plan (2026–2030) is focused on economic security—and part of that means moving industry away from the coast. That’s where Guizhou comes in. Why Guizhou Matters Now Guizhou, a mountainous province far from the sea, was once known for poverty and limited infrastructure. Now, it’s being positioned as a “strategic hinterland”—a safe zone for critical industries in case tensions with the West escalate again. In 2024, Guizhou’s economy grew by 5.3%, reaching ¥2.27 trillion (about US$317 billion). It’s not huge by Chinese standards, but it’s climbing—and fast. Old Strategy, New Purpose This isn't China’s first inland push. In the 1960s and ’70s, the government relocated key factories to western provinces to avoid Soviet threats. That strategy—called the “Third Line”—is being revived with modern goals. Now, think tanks are calling for a new inland zone covering 10 provinces. The idea is to protect China’s economy by building more in the center of the country, far from foreign risks. What’s Being Built Guizhou is already taking action. In 2024, it signed nearly 300 new industrial projects relocated from the east. About 190 have already started construction. The total investment? Over ¥260 billion. Two of these projects are national-level “industrial backups,” likely focused on aviation parts and tech. The province also hosts suppliers for China’s homegrown aircraft, the C919—an industry now under pressure from U.S. tech bans. This isn't China’s first inland push. In the 1960s and ’70s, the government relocated key factories to western provinces to avoid Soviet threats. The Digital Bonus Guizhou isn’t just building bridges and factories. It’s also becoming a leader in digital infrastructure. The province powers about one-quarter of China’s total data computing capacity and is central to the country’s “Eastern Data, Western Compute” program. Tech giants like Huawei, Apple, and Tencent have all opened operations in Guizhou. Digital services now make up nearly half of its GDP . What Could Go Wrong Some experts warn that shifting industry inland won’t be easy. Coastal areas still have better logistics, bigger markets, and more talent. Moving factories isn’t just about location—it also needs incentives, planning, and long-term funding. There’s also debt to consider. Guizhou’s massive infrastructure investments, while impressive, have sparked concerns about financial risk, especially from foreign observers. Looking Ahead Still, Guizhou represents a bigger idea: that China is preparing not just to survive a trade war, but to rebuild its economic model. By spreading growth away from coastal cities and investing in the country’s interior, Beijing hopes to create a more secure, self-reliant system. If it works, Guizhou might not just be a backup—it could become the future.

Photo by THE CHINA NOW Starbucks is looking for partners in China to help it stay competitive, not planning a full exit. As cheaper rivals grow fast, the coffee giant is rethinking how it operates in its second-largest market. Starbucks Isn’t Leaving China Despite recent rumors, Starbucks has confirmed it is not planning to sell all of its China operations. The confusion began after a report from Chinese media suggested a full sale was underway. What Starbucks is doing, however, is talking to investors about selling a stake in the business — possibly a minority or even a controlling share. The company hasn’t made a final decision yet. It may keep parts of the business, like its supply chain and its large roasting plant near Shanghai. The Reason: China’s Coffee War Starbucks is facing intense pressure from local coffee brands like Luckin and Cotti, which are growing fast and offering coffee at much lower prices. Starbucks has nearly 7,800 stores in China and plans to open 9,000 by 2025. It’s the company’s second-largest market in the world, after the U.S. Today, customers in China can often get a cup of coffee delivered for less than ¥5 (about $0.70), thanks to discounts and coupons from e-commerce platforms. That makes it harder to justify Starbucks’ prices of around ¥30 per cup (about $4.18). As a result, Starbucks’ market share in China has dropped from 34% in 2019 to just 14% in 2024. Looking for the Right Partner To adapt, Starbucks is looking for a partner who can help the brand stay strong in a fast-changing market. More than 20 potential investors have shown interest. The company is working with Goldman Sachs to ask them questions about their business plans, culture, and management style before deciding who to move forward with. According to insiders, the goal is to find someone who can bring local expertise, not just money. China Still Matters a Lot Starbucks has nearly 7,800 stores in China and plans to open 9,000 by 2025. It’s the company’s second-largest market in the world, after the U.S. That’s why the company is being careful. Rather than pulling out, Starbucks is looking for a partner who can help it grow, compete with local brands, and stay relevant to Chinese consumers. What Happens Next? Starbucks is expected to shortlist potential partners soon and move into deeper talks. This isn’t an exit — it’s a reset. The company knows it needs to move faster, be more affordable, and localize better in China. A strategic partner may be key to that future.

Photo by FMT In May 2025, Chinese plug-in hybrid electric vehicle (PHEV) exports to Europe rose by an astonishing 600% compared to the same month last year. What’s behind it? A gap in the EU’s tariff policy. Last year, the European Union slapped tariffs of up to 45% on fully electric vehicles (EVs) from China. But plug-in hybrids — cars that combine a rechargeable battery with a gas engine — still only face a 10% import duty. Chinese automakers jumped at the chance, shifting focus to hybrids and pushing aggressively into the European market. The Numbers Are Staggering In total, China exported 324,000 passenger plug-in hybrids in the first five months of 2025 — a nearly 140% increase over last year. May alone saw exports worth US $1.42 billion, making PHEVs one of China’s top 20 export categories. The shift isn’t just limited to Europe. Shipments of these cars to Southeast Asia rose 3,800%, to the Middle East by 1,600%, and to the UK and Turkey by over 770%. Meanwhile, China’s exports of fully electric cars fell 8% in May, showing how hybrids are now the country’s main growth driver in global auto sales. According to UBS, Chinese brands now hold 11% of the EV market in Europe, compared to 6% of the overall car market. European Brands Can’t Compete on Price One reason for China’s success? Price. In the UK, a BMW X5 plug-in hybrid starts at over £66,000. By contrast, a Chinese-made MG HS PHEV sells for around £21,500 — about a third of the cost. And it’s not just about cheap pricing. Analysts say Chinese carmakers can still turn a profit at these lower price points, giving them a major edge. Chinese Cars Gain Market Share According to UBS, Chinese brands now hold 11% of the EV market in Europe, compared to 6% of the overall car market. Sales are rising fastest in the UK, Germany, France, Italy, and Spain — the five biggest markets in the EU. More and more European drivers are choosing Chinese hybrids, often because they offer similar tech and performance at a far lower cost. What Happens Next? China’s success in Europe is catching attention — and creating tension. Industry groups in the EU are already calling for tariffs on Chinese hybrids, not just full EVs. There’s also concern that this success could hurt local carmakers, who are struggling to match China’s speed and efficiency. Some Chinese brands are now considering building factories inside Europe, a move that would let them bypass tariffs entirely. How Europe responds could reshape the future of the global auto market.