China’s December PMI Reflects Expansion in Manufacturing and Recovery in Non-Manufacturing Sectors

According to data released by the National Bureau of Statistics on December 31, China’s Manufacturing Purchasing Managers’ Index (PMI) in December stood at 50.1%, dropping by 0.2 percentage points from the previous month, signaling expansion in the manufacturing sector.

The PMI for large declined to 50.5%, a drop of 0.4 percentage points, while medium-sized enterprises rose 50.7%, respectively, reflecting increases of 0.7 percentage points. Meanwhile, the PMI for small enterprises fell to 48.5%, a decline of 0.6 percentage point compared to the prior month.

Among the sub-indices of the manufacturing PMI, the production index (52.1%) remained above the critical threshold, decreasing by 0.3 percentage points, respectively; while new orders index (51.0%) was at the critical threshold, rising by 0.2 percentage points; the supplier delivery time index (50.9%) and raw material inventory index (48.3%) rose by 0.7 percentage points and 0.1 percentage points. Conversely, employment index (48.1%) dropped by 0.1 percentage points.

The Non-Manufacturing PMI in December rose to 52.2%, up by 2.2 percentage points from the previous month, indicating a significant recovery in the non-manufacturing sector.

Meanwhile, the Composite PMI Output Index increased to 52.2%, a rise of 1.4 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/202412/t20241231_1958118.html

Japan Eases Visa Rules for Chinese Tourists to Strengthen Bilateral Relations

On December 25, Japan and China continued efforts to improve ties, with Japanese Foreign Minister Takeshi Iwaya unveiling plans to ease visa requirements for Chinese tourists. The move coincides with an agreement for an early visit to Japan by China’s top diplomat, Wang Yi.

During their meeting, both sides reaffirmed their commitment to reducing tensions and enhancing cooperation, echoing agreements made between their leaders. Wang Yi emphasized the importance of fostering collaboration, stating that China and Japan are “partners for cooperation” and expressing hope for bilateral relations to progress “on the right track.”

In a significant step to boost people-to-people exchanges, Japan announced a new 10-year multiple-entry visa for individual Chinese tourists, doubling the current five-year validity. The policy targets high-income Chinese travelers and aligns with China’s recent resumption of its visa-free policy for short-term Japanese visitors, which had been suspended during the pandemic：

• Retiree-Friendly Rules: Chinese nationals aged 65 or older will no longer need to submit employment certificates for solo tourism trips, simplifying travel for retirees.
• Expanded Eligibility: The criteria for short-term multiple-entry visas will be broadened, making them accessible to a larger pool of applicants.
• Extended Stays for Group Tourists: The maximum stay for group travelers will increase from 15 to 30 days.

These measures, introduced during the first high-level cultural and people-to-people dialogue in five years, aim to strengthen ties through tourism, cultural exchange, and economic cooperation. The relaxed visa rules underscore efforts to rebuild trust and enhance mutual understanding through closer people-to-people connections.

Searches for flights between China and Japan during the Spring Festival holiday have surged, with a more than threefold increase compared to the previous day. Additionally, demand for related travel products has seen a significant spike, reflecting heightened interest in holiday travel between the two countries.

China’s “Goods Economy” Surges by Over 40% in 2024, Tapping into Gen Z’s Personalized Consumption Trends

On December 27, CCTV Finance Channel reported that China’s “Goods Economy” market—centered around anime and fandom merchandise—reached a valuation of CNY 168.9 billion in 2024, marking an impressive 40% increase compared to 2023. Projections indicate that this market could expand to CNY 308.9 billion by 2029.

Derived from the English word “goods,” the term “谷子” (“Guzi”) refers to merchandise associated with anime, comics, games, and other fandom subcultures. Specialty stores selling these products are dubbed “Guzi stores,” while purchasing such items is colloquially referred to as “eating Guzi.” This burgeoning sector reflects a new consumption trend, driving a multi-billion-yuan market in China.

Data reveals that the majority of “Goods Economy” consumers are women, predominantly from first-tier cities. Beyond mere transactions, this market represents young consumers’ desire for personalized self-expression and social interaction. According to the “White Paper on China’s ACG Content Industry”, 95% of Gen Z individuals identify as fans of anime and related subcultures, highlighting the immense growth potential of this niche market.

Research from Zheshang Securities shows that over 60 major shopping districts across more than 20 tier-one and tier-two cities in China are building landmarks dedicated to anime and fandom consumption. One standout example is the Bailian ZX Creative Space in Shanghai, a revamp of the former Hualian Department Store on Nanjing Road. Since its reopening in January 2023, the venue has attracted over 15 million visitors and generated sales exceeding CNY 500 million within 18 months.

The rise of the “Goods Economy” signals a transformative shift in consumer behavior, with fandom culture evolving into a core driver of China’s retail innovation and experiential shopping trends.

Didi Chuxing Tackles “Odor Cars” Amid Rising Consumer Expectations

On December 23, Didi Chuxing, China’s leading ride-hailing platform, announced a nationwide initiative to address complaints about unpleasant odors in its vehicles. In an official statement, Didi apologized for the inconvenience caused to passengers and introduced a series of measures aimed at improving vehicle cleanliness and air quality.

Key steps include:

• Passenger Blacklist Feature: Passengers can now avoid specific vehicles flagged for poor air quality for up to a year.
• Driver Guidelines: Drivers are advised to uphold stricter cleanliness standards, open windows between rides to enhance ventilation, and adhere to a rewards and penalty system.
• Penalties for Non-Compliance: Drivers receiving negative feedback on air quality risk temporary suspension and must complete mandatory cleaning and hygiene training before resuming service.

Didi’s initiative reflects a growing trend in the ride-hailing industry, where platforms face mounting pressure to improve service quality beyond convenience and affordability. According to the 2022 Ride-Hailing Vehicle Air Quality Report, air quality and cleanliness are critical to customer satisfaction. The report noted that over 70% of passengers had experienced physical discomfort, including dizziness, shortness of breath, and motion sickness, due to poor air quality in vehicles.

These findings highlight a significant issue in the sector, as subpar air quality directly impacts the passenger experience and raises broader concerns about service standards.

The ride-hailing industry is increasingly competitive, with service quality now a crucial differentiator. Platforms like Didi are responding to heightened consumer expectations by addressing hygiene and comfort, recognizing that these factors are as vital as cost and convenience.

As platforms vie compete for market share, initiatives like Didi’s signal a shift toward more passenger-centric services. With air quality and cleanliness emerging as priorities, ride-hailing companies must innovate and adapt to maintain a competitive edge while meeting evolving consumer demands.

Ideal Auto CEO Outlines AI-Centric Vision, Announces Transformation into an Artificial Intelligence Enterprise

In the 2024 Ideal AI Talk, Li Xiang, CEO of Ideal Auto, announced the company’s transformation into an AI-driven enterprise, allocating half of its CNY 10 billion annual R&D budget to AI development. Highlighting the goal of “automotiveizing” AI, Li outlined a vision to connect the physical and digital worlds, integrating AI into households globally.

Li described AI’s evolution in three stages: Enhanced Capability (L3 autonomous driving, where users retain control), My Assistant (L4 autonomous driving, where AI autonomously executes tasks), and Silicon-Based Family (AI as a household member, organizing life without instruction). He emphasized that AI’s commercial value surpasses traditional vehicle manufacturing, with NEV standardization making intelligent ecosystems critical.

Ideal Auto is investing heavily in building this ecosystem, positioning itself to lead the convergence of AI and automotive industries, reshaping mobility and household integration.