China’s Manufacturing PMI Reached 50.1% in October, Indicating Growth

According to data released by the National Bureau of Statistics on October 31, China’s Manufacturing Purchasing Managers’ Index (PMI) in October stood at 50.1%, up by 0.3 percentage points from the previous month, signaling expansion in the manufacturing sector.

The PMI for large and medium-sized enterprises rose to 51.5% and 49.4%, respectively, reflecting increases of 0.9 and 0.2 percentage points. Conversely, the PMI for small enterprises fell to 47.5%, a decline of 1.0 percentage point compared to the prior month.

Among the sub-indices of the manufacturing PMI, the production index (52%) remained above the critical threshold, increasing by 0.8 percentage points, respectively; while new orders index (50.0%) was at the critical threshold, rising by 0.1 percentage points . However, the supplier delivery time index (49.6%), employment index (48.4%), and raw material inventory index (48.2%) were below the threshold, albeit with increases of 0.1, 0.2, and 0.5 percentage points, respectively.

The Non-Manufacturing PMI in October rose to 50.2%, up by 0.2 percentage points from the previous month, indicating a modest recovery in the non-manufacturing sector.

Meanwhile, the Composite PMI Output Index increased to 50.8%, a rise of 0.4 percentage points from the previous month, suggesting an acceleration in overall business production and operational activities in the country.

Data Source: https://www.stats.gov.cn/sj/zxfb/202410/t20241031_1957214.html

Guangdong and Jiangsu Maintain Economic Leadership as Western Provinces Drive Growth

In the first three quarters of 2024, Guangdong and Jiangsu retained their positions as China’s leading provincial economies, each approaching the CNY 10 trillion GDP milestone. Shandong and Zhejiang also reported GDP figures surpassing CNY 5 trillion. Meanwhile, nine provinces—including Henan, Sichuan, Hubei, Fujian, Hunan, Anhui, Shanghai, Beijing, and Hebei—recorded GDPs ranging between CNY 3 trillion and 5 trillion.

Regarding GDP growth, central and western provinces demonstrated strong economic performance. Tibet led with a growth rate of 6.2%, followed closely by Chongqing and Gansu at 6%, and Inner Mongolia at 5.8%. Additionally, provinces such as Jiangsu, Hubei, Shandong, Fujian, and Xinjiang achieved growth rates of 5.5% or higher.

Industrial output continues to be a key growth driver, particularly in central and western regions. Notably, Tibet and Gansu saw industrial added value growth rates of 18.8% and 12%, respectively.

Shanghai’s GDP for the first three quarters reached CNY 3.3462 trillion, positioning it 12th among all provinces, with a growth rate of 5.1%. The city’s secondary industry contributed CNY 803.28 billion, reflecting a 1.2% year-on-year increase. Additionally, Shanghai’s service sector grew by 5.8% year-on-year, making up over 70% of the city’s GDP.

Chinese Ambassador Highlights Aviation Cooperation at COMAC Asia-Pacific Office Launch in Singapore

On October 28, Chinese Ambassador to Singapore, Cao Zhongming, attended and delivered a keynote speech at the inauguration ceremony of the Asia-Pacific office of the Commercial Aircraft Corporation of China (COMAC). Ambassador Cao expressed optimism for enhanced cooperation between China and Singapore in aviation equipment manufacturing, contributing to the growth and advancement of bilateral economic and trade ties.

Brunei-based startup airline GallopAir has placed an order for 30 aircraft from COMAC, including five C919s. In addition, reports indicate that Brazilian cargo and charter airline Total Linhas Aereas aims to become the first non-Asian company to purchase aircraft from COMAC. Total Linhas Aereas and COMAC have been in negotiations for several months, with Paulo Almada, the company’s controlling partner, stating that he plans to visit COMAC in October to discuss a potential order for up to four C919 aircraft.

COMAC has so far delivered 11 C919 aircraft, accumulating 13,000 operational hours and transporting 700,000 passengers. Meanwhile, the C929 wide-body aircraft is progressing through its preliminary design phase and supplier selection process.

Lenovo and ZTE Have Been Involved in Patent Battle in the UK, Raising Industry Concerns

Lenovo Group and ZTE Corporation, two of China’s leading technology companies, are embroiled in a legal battle in the United Kingdom over alleged patent infringement. On October 21, 2024, Lenovo filed a lawsuit against ZTE in the High Court of England and Wales (Case No. HP-2024-000038), according to media reports. In response to Lenovo’s lawsuit, ZTE issued a statement on October 30, noting that the matter had been under negotiation for two years and expressing surprise at Lenovo’s unexpected legal action.

Lenovo holds over 1,800 5G standard-essential patents, while ZTE’s portfolio includes 46,000 patents. Given their strong patent holdings, one might expect both companies to pursue negotiations toward a mutually beneficial resolution. However, the situation is more complex than it seems.

At the heart of the dispute is a disagreement over royalty rates, an issue that can involve billions of dollars. ZTE, positioning itself as a veteran in the communications sector, believes it should secure a higher price for its patents. Lenovo, on the other hand, views the rate as excessive and argues that ZTE has been inflexible during years of negotiations.

This type of patent litigation is not uncommon in the global tech landscape. For instance, Huawei and Apple have also engaged in patent disputes, as robust patent portfolios can be lucrative for technology firms. The secondary market’s reaction on October 29 and 30 suggests that such disputes often prove detrimental to all involved. In light of the two Chinese technology giants’ overseas litigation, many investors questioned whether the two giants’ shared origins had led to undue anxiety on both sides.

Xiaomi Launched Its Flagship Smart Home Products, Including Mijia Dual-Zone Wash Machine

At the Xiaomi 15 Series product launch event on October 30, 2024, Xiaomi introduced its latest flagship health-focused washing machine—the Mijia Dual-Zone Wash and Dual-Wash-Dry. CEO Lei Jun highlighted that future trends in smart product development will prioritize not only users’ basic functional needs but also convenience and intelligent user experience.

The event also showcased a range of innovative smart home appliances, such as a refrigerator featuring dual-system cooling and an air conditioner that can automatically adjust its airflow direction. The new Mijia washing machine is priced at an introductory CNY 4,999 and is now available for pre-sale through all major channels. This washing machine features two independently operating washing drums, with a larger drum designed for washing outerwear and a smaller drum specifically for underwears and small clothes. This setup addresses the longstanding need among Chinese consumers to separate the washing of outerwear, underwear, and baby clothes.