China’s CPI Records 0.2% Annual Increase in 2024 Amid Modest Price Fluctuations Across Categories
In December 2024, China’s national Consumer Price Index (CPI) increased by 0.1% year-on-year, according to data released. Urban area saw a rise of 0.1% and rural areas remained stable, respectively. Food prices decreased by 0.5%, while non-food prices increased by 0.2%. Prices of consumer goods was a decline of 0.2%, but service prices registered a 0.5% increase.

In 2024, the China’s CPI increased by 0.2% compared to the previous year.
On a month-on-month basis, the CPI was flat in December, with urban area remaining stable and rural area experiencing a 0.1% decline. Food prices decreased notably by 0.6%, while non-food prices grew slightly by 0.1%. Consumer goods prices fell by 0.1%, and service prices rose by 0.1%.
Breakdown of Major Categories:
- Food and Tobacco: remained stable.
- Other Goods and Services: rose significantly by 4.9%.
- Clothing:recorded a year-on-year growth of 1.2%.
- Healthcare: rose by 0.9%
- Education, Culture, and Entertainment: increased by 0.9%.
- Living Goods and Services: fell by 0.7%.
- Housing: increased slightly by 0.1%.
- Transportation and Communication: declined by 2.2%.

Data Source: https://www.stats.gov.cn/sj/zxfb/202501/t20250109_1958170.html
Shanghai Emerges as a Top Destination for South Korean Tourists Amid Post-Pandemic Travel Boom
Shanghai has become a favored weekend escape for South Koreans seeking relief from work pressures and political tensions back home. The city’s bustling streets and hidden alleys are buzzing with Korean visitors who flock to enjoy its cosmopolitan appeal.
According to data from Trip.com, Shanghai is now the most popular Chinese city for South Korean tourists, with bookings surging over 180% year-over-year and more than 40% compared to the previous month. Skyscanner’s December data reveals that over 200 weekly round-trip flights operate between Shanghai and Seoul alone, not counting routes from Busan, Jeju Island, and other South Korean cities. Budget-friendly fares, such as the CNY 300 (approximately $45 USD) flights from Jeju Island to Shanghai Pudong International Airport, make the journey accessible, taking only 90 minutes.
South Korean tourists, often recognized by their distinct fashion and language, can be seen capturing photos at Shanghai’s iconic landmarks, such as the Oriental Pearl Tower, the Lujiazui financial district, and the Huangpu River promenade. Popular Chinese hotpot chain Haidilao is trending among Korean social media users, alongside local delicacies like xiaolongbao (soup dumplings), which have become must-try dishes for many visitors.

China’s relaxed post-pandemic travel policies have made it easier for foreigners to visit, with citizens from nearly 40 countries, including South Korea, eligible for a 30-day visa-free stay. This initiative aims to boost economic revitalization and foster cultural exchange. The influx of young tourists has also become a cultural bridge, fostering mutual understanding and breaking down stereotypes.
In a bid to enhance the tourist experience, financial services in China have become more foreigner-friendly. UnionPay International now allows overseas e-wallet users to make payments in China using WeChat Pay QR codes. South Korean visitors can also make seamless payments using Naver Pay through the WeChat platform. Additionally, restrictions that previously prevented some hotels from accommodating foreigners have been resolved, making travel smoother for international guests.
Shanghai’s appeal as a modern metropolis, combined with its historic charm and upgraded convenience for international tourists, cements its status as a premier destination for South Korean travelers.
US Expands Defense Blacklist to Include Tencent, CATL, and Other Chinese Tech Firms Amid Rising Tensions
The US Department of Defense (DoD) has expanded its blacklist of entities allegedly linked to the Chinese military, adding Tencent Holdings, Contemporary Amperex Technology Co., Limited (CATL), and ChangXin Memory Technologies (CXMT). The updated list also includes Quectel (an IoT module manufacturer), Autel Robotics (a drone maker), MGI Tech (a gene sequencing equipment provider), and Origincell Technology (a cell banking specialist). The annual update to the Section 1260H list now names 134 entities, according to the Federal Register.
On January 7, China’s Foreign Ministry called for the US to “correct its wrongful practices” and lift what it described as illegal unilateral sanctions and long-arm jurisdiction against Chinese firms. The ministry condemned the inclusion of major companies like Tencent and CATL, accusing the US of unfairly targeting Chinese industry leaders.
Tencent responded by labeling the move a “misunderstanding,” asserting that it is not a military company and has no ties to China’s armed forces. The company pledged to engage with the DoD to clarify the situation. Tencent emphasized that the blacklist differs from sanctions or export restrictions and is unlikely to have direct business impacts. Nonetheless, Tencent’s US stock dropped nearly 10% following the announcement.

CATL, a dominant player controlling 38% of the global EV battery market, similarly denied any military affiliations. The company, which supplies Tesla and collaborates with Tesla and Ford on US battery projects, stated its inclusion on the blacklist was erroneous.
Quectel also denied military ties and confirmed plans to request a formal review by the DoD. Other companies, such as Autel Robotics, MGI Tech, and Origincell Technology, have yet to issue statements.
Under the updated policy, the DoD will ban federal procurement of goods from these entities by June 2026, with an exclusion of products containing components from these companies in supply chains by 2027. While inclusion on the Section 1260H list does not result in automatic sanctions from the US Department of Treasury or Commerce, it could significantly damage the reputations of affected firms and discourage US businesses from engaging with them.
The US has intensified its export controls in recent years to curb China’s access to advanced semiconductor and AI technologies with potential military applications. In retaliation, China has implemented export restrictions on critical raw materials, including rare metal minerals vital for semiconductor manufacturing and defense-related equipment production. The escalating tit-for-tat measures underscore growing economic and technological competition between the two nations.
China’s First Carbon Fiber Metro Train “CETROVO 1.0” Enters Service in Qingdao
On January 10, the CETROVO 1.0, a cutting-edge metro train made from carbon fiber composites, officially began passenger service in Qingdao, Shandong province. The train’s innovative design, developed by CRRC Qingdao Sifang Co., Ltd, marks a significant milestone in the evolution of urban transportation.

The carbon fiber body and bogie frame of the CETROVO 1.0 reduce the car body weight by 25% and the bogie frame weight by 50%, resulting in an overall 11% lighter train compared to conventional metro systems. In addition to the substantial weight reduction, the carbon fiber material enhances the train’s structural strength, improves impact resistance, and extends its lifespan.
Inside the cabin, carbon fiber elements are featured prominently, from sleek black carbon fiber seats and armrests to the driver’s console, offering passengers a futuristic and high-tech experience. The carbon fiber composites also provide enhanced vibration damping and noise insulation, ensuring smoother rides and a more comfortable journey.
Liu Jinzhu, the chief designer of the CETROVO 1.0, highlighted the environmental benefits of the lightweight design. Each train’s energy consumption is reduced by 7%, cutting annual carbon dioxide emissions by approximately 130 tonnes, equivalent to planting 101 mu (about 6.7 hectares) of trees.
The train also boasts a SmartCare intelligent maintenance system, a digital twin-based platform that performs real-time health monitoring, smart fault detection, and maintenance optimization. This system enhances operational reliability while lowering maintenance costs.
GOME Telecom Faces Plunge as GOME Retail’s Stock Collapses to HK$0.02, Market Cap Shrinks 99%
Shares of ST GOME Communications (600898), a key subsidiary of China’s home appliance retail giant GOME, have continued to hit their lower limit. As of the market close on January 6, 2025, GOME Retail’s stock price fell to HK$0.02, marking a staggering 99% decline from its 2021 peak, with its total market capitalization dwindling to just HK$958 million.
ST GOME Communications, officially known as GOME Communications Equipment Co., Ltd, specializes in the research, production, and sale of mobile smart devices. The company’s core offerings include:
- In-house branded smartphones
- ODM (Original Design Manufacturing) mobile communication devices and mainboards
- OEM (Original Equipment Manufacturing) services
- Smart home electronics trading
Despite its diversified product portfolio, GOME Retail has faced a dramatic revenue decline. In 2022, 2023, and the first half of 2024, revenue plummeted by 62.7%, 96.29%, and 59.22% year-over-year, respectively. By mid-2024, GOME’s store network had contracted to 565 outlets, a reduction of over 86% from its 2021 peak.
In a bid to pivot its business, GOME announced on December 28 that it would enter the automobile dealership sector. The company plans to establish a “new force in car sales” by partnering with navigation platforms, e-commerce verticals, and MCN (multi-channel network) organizations. However, GOME’s strategic approach remains tied to its traditional retail model, characterized by:
- Low-margin, high-volume sales supported by an extensive retail network
- Aggressive market expansion through a competitive “wolfpack” sales strategy
- Heavy reliance on capital markets for scaling operations
- Tight control over distribution channels
The market remains skeptical about GOME’s ability to reinvent itself amid declining retail demand and fierce competition. Investors and analysts are now left questioning: Where does GOME’s future lie?
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