China’s Manufacturing PMI Climbs to 50.2% in February, Highlighting Divergent Enterprise Performance
According to data released by the National Bureau of Statistics on March 1, China’s Manufacturing Purchasing Managers’ Index (PMI) for February rose to 50.2%, an increase of 1.1 percentage points from the previous month. While this figure indicates a modest expansion in overall manufacturing activity, performance varied notably by enterprise size.
Large enterprises led the recovery with their PMI climbing to 52.5%, up 2.6 percentage points. In contrast, medium-sized and small enterprises experienced declines, with their PMIs falling to 49.2% and 46.3%, respectively—down by 0.3 and 0.2 percentage points.
Among the manufacturing sub-indices, the Production Index surged to 52.5%, up 2.7 percentage points from the previous month, reflecting a swift rebound in production activities following the Spring Festival. The New Orders Index also improved, reaching 51.1% with a 1.9 percentage point increase month-over-month, which signals a recovery in market demand for manufactured products.
On the downside, the Raw Materials Inventory Index declined to 47.0%, a drop of 0.7 percentage points, indicating an accelerated reduction in key raw material stocks. Meanwhile, the Employment Index in the manufacturing sector improved modestly to 48.6%, up 0.5 percentage points, suggesting better labor market conditions. Additionally, the Supplier Delivery Time Index rose to 51.0%, up 0.7 percentage points, as raw material suppliers expedited their delivery times.
Beyond manufacturing, the Non-Manufacturing PMI increased to 50.4%，a 2.2 percentage point rise， indicating a slight recovery in the service sector. Meanwhile, the Composite PMI Output Index edged up to 51.1%, a modest gain of 0.1 percentage point, pointing to an overall rebound in business activity.
Data Source: https://www.stats.gov.cn/sj/zxfb/202503/t20250301_1958837.html
China’s Mobile Phone Exports Rebound in 2024, Driven by Dual Gains in Production and Global Demand
According to statistics from the General Administration of Customs, China’s mobile phone exports reached 814 million units in 2024—a 1.5% year-on-year increase. This marks the first rebound after eight consecutive years of decline since the peak of 1.343 billion units in 2015, and for the third consecutive year, exports have remained above 800 million units, although the growth rate has noticeably dropped from the 5.7% recorded in 2018.
An analysis report by the China Chamber of Commerce for Electronics and Information Industry notes that China accounts for approximately 70% of global mobile phone production capacity, making its exports highly sensitive to shifts in global demand. Data from International Data Corporation (IDC) shows that global smartphone shipments grew by 6.4% year-on-year in 2024 to reach 1.24 billion units—marking the first increase after two years of decline. Emerging markets with lower smartphone penetration have rebounded more robustly than mature markets, and the rising adoption of AI-enabled smartphones has further spurred a recovery in global demand.
A report by Canalys forecasts that AI smartphone penetration will reach 32% in 2025, with nearly 400 million units shipped, providing a new boost to China’s mobile phone exports.
In 2024, China achieved growth in both mobile phone production and exports. Data from the Ministry of Industry and Information Technology indicates that total mobile phone production reached 1.67 billion units—a 7.8% year-on-year increase—while smartphone production climbed to 1.25 billion units, up 8.2%.
Mercedes‑Benz China Reconfigures Operations Amid Industry Transformation
On February 27, Mercedes‑Benz China dispelled rumors of impending layoffs, confirming that the company is undertaking a comprehensive restructuring in response to a challenging market environment and the broader transformation of the automotive industry. As part of this strategic realignment, certain positions will be redefined or eliminated.
The company stressed that the restructuring is driven by business needs and will provide employees with opportunities to acquire new skills while addressing redundancies. Mercedes‑Benz also reassured stakeholders that it will fully adhere to all relevant laws and regulations, and that it will conduct transparent discussions to secure fair and legally compliant compensation packages for those affected.
Earlier reports indicated that Mercedes‑Benz China had initiated discussions with employees regarding a potential reduction of its workforce by approximately 15%. The proposed cuts are expected to impact primarily the sales and automotive finance divisions, particularly within Mercedes‑Benz China Automobile Sales Co. and Mercedes‑Benz Automotive Finance Co., while the company’s R&D operations remain unaffected for the time being.
This decision highlights the growing challenges foreign automakers face in China, as established global brands continue to lose market share to domestic manufacturers. Legacy luxury automakers such as Mercedes‑Benz, Porsche, BMW, and Audi are now contending with increased competition from Chinese EV startups like NIO, Huawei’s Maextro, BYD’s Yangwang, and even established Chinese brands like Hongqi.
Mercedes‑Benz is not alone in its strategic reassessment. Volkswagen, for instance, has rolled out a “For China, in China” strategy, which includes acquiring stakes in local EV startups and developing vehicles tailored to the domestic market based on platforms from Chinese EV makers. Similarly, Porsche China reduced its workforce last year after experiencing its third consecutive year of declining sales—with 56,887 cars sold, nearly 30% fewer than the previous year—while BMW China curtailed headcount by opting not to renew certain employee contracts, affecting between 2% and 5% of its workforce, with similar measures expected this year.
Xiaomi Unveils SU7 Ultra Pricing, Surpasses Annual Sales Target in Just Two Hours
On February 27, Xiaomi Corp. officially revealed the pricing for its high-performance electric vehicle, the SU7 Ultra, with a starting price of CNY 529,900 (approximately $73,000). The announcement follows the company’s impactful entry into the competitive automotive market last year. Lei Jun, Xiaomi’s Chairman and CEO, explained that the SU7 Ultra—whose pre-sales began on October 29—was initially priced at CNY 814,900, but the price was substantially reduced to broaden its accessibility.
The SU7 Ultra features the same three-motor electric drive system as its prototype, which impressed audiences in October by clocking a lap time of 6:46.874 minutes at the Nürburgring Nordschleife. The production version is equipped with two “Super Motor V8s”—each delivering 425 kW—and one “Super Motor V6” unit generating 288 kW, a total combined output of 1,138 kW and up to 1,770 Nm of torque.
In the early hours of February 28, Lei Jun celebrated on Weibo, noting that pre-sale orders had exceeded 10,000 units within just two hours of launch, thereby achieving the company’s annual sales target almost immediately.
Lei also disclosed that one-quarter of Xiaomi’s CNY 30 billion R&D investment will be allocated to artificial intelligence and related technologies. Over the next five years, the company plans to invest a total of CNY 105 billion in research and development, underscoring its steadfast commitment to innovation and technological advancement.
China and Pakistan Forge Landmark Astronaut Training Partnership
On February 28, the China Manned Space Engineering Office (CMSEO) announced in Islamabad that it had signed an “Agreement on the Selection and Training of Pakistani Astronauts and Their Participation in China’s Space Station Missions” with the Pakistan Space and Upper Atmosphere Research Commission (SUPARCO). Under the agreement, both parties will collaborate over the next year to complete a comprehensive selection process, after which the chosen Pakistani candidates will travel to China to receive systematic training.
This agreement marks the first time China will select and train international astronauts. Once the Pakistani trainees are fully prepared, one candidate will be selected to become the first foreign crew member to join a mission to the China’s Tiangong Space Station, spending a short-term stay aboard the colossal spacecraft orbiting approximately 400 kilometers above Earth.
Tiangong, a three-module space station assembled between 2021 and 2022, represents the culmination of a Chinese strategy approved in 1992 to advance human spaceflight capabilities. To date, the station has hosted seven Chinese astronauts during its construction and operational phases—from the Shenzhou-12 mission launched in June 2021 to the current Shenzhou-19 mission.
The signing of this cooperation agreement not only paves the way for enhanced bilateral collaboration but also sets a precedent for other countries seeking to participate in international manned space initiatives.
0 Comments