China’s Manufacturing PMI Returns to Expansion in June
Beijing, June 30 — According to data released by the National Bureau of Statistics (NBS), China’s Manufacturing Purchasing Managers’ Index (PMI) rose to 50.3% in June, up 0.3 percentage points from the previous month, returning to expansion territory. While overall manufacturing activity continued to recover, performance varied across different enterprise sizes.
Large enterprises recorded a PMI of 50.7%, down 0.4 percentage points from the previous month but remaining above the expansion threshold. Medium-sized enterprises improved significantly to 50.5%, up 1.9 percentage points, while small enterprises declined to 48.2%, down 0.3 percentage points, remaining in contraction.
Among the key manufacturing sub-indices, the Production Index increased to 51.4%, up 0.2 percentage points, indicating faster expansion in manufacturing output. The New Orders Index climbed to 51.2%, a 1.3 percentage point increase from the previous month, suggesting improving market demand.
Meanwhile, the Raw Materials Inventory Index edged down to 48.4%, indicating that inventories of major raw materials continued to decline. The Employment Index slipped slightly to 48.5%, reflecting softer hiring conditions in the manufacturing sector. The Supplier Delivery Time Index rose to 49.9%, up 0.7 percentage points, but remained below the threshold, indicating that supplier delivery times were still slightly slower than normal.
Beyond manufacturing, the Non-Manufacturing Business Activity Index rose to 50.2%, up 0.1 percentage points from the previous month, while the Composite PMI Output Index increased to 50.6%, also up 0.1 percentage points, indicating that overall business activity in China continued to expand at a modest pace in June.
Data Source: https://www.stats.gov.cn/sj/zxfb/202606/t20260630_1964032.html
UBTech Launches Emotional Companion Robot as China’s Humanoid Robot Market Diversifies
Shenzhen, June 30 — “Cyber companions” are moving closer to reality. On June 30, UBTech unveiled the U1, an AI-powered emotional companion robot priced between CNY 119,800 and CNY 990,000. The company said pre-orders have already exceeded 11,000 units, targeting users living alone, elderly care, and ACG (anime, comics, and games) enthusiasts.
Unlike traditional humanoid robots designed for industrial tasks, the U1 focuses on emotional interaction. Equipped with a silicone exterior, facial expressions, and AI capable of long-term memory, the robot is designed to engage in conversations and provide companionship. While its expressions are not yet fully human-like, they represent a significant step beyond conventional service robots.
The launch reflects a growing split within China’s humanoid robotics industry. While many companies continue to focus on factory automation and labor replacement, a new group of startups is targeting the consumer market by emphasizing emotional companionship and personalized interaction.
Industry observers believe emotional companion robots could become a commercially attractive segment, particularly as demand grows among single-person households and aging populations. Compared with purely virtual AI assistants, physically embodied robots may foster stronger user engagement and recurring revenue opportunities through personalized services.
As humanoid robotics evolves, companies are increasingly exploring two distinct directions: industrial robots that improve productivity and consumer-oriented robots designed to provide emotional value. The rapid market response to UBTech’s latest product suggests that emotional AI may become one of the next major growth areas for the robotics industry, while also raising new ethical and regulatory questions surrounding human-machine relationships.
China’s Used Luxury Car Market Sees Sharp Price Correction
Qingdao, July 01 — China’s used luxury car market is experiencing a sharp downturn, with prices for many premium gasoline-powered vehicles falling to levels once associated with mass-market family cars.
At the Luhai Auto Trading Market in Qingdao on July 1, Bentley Flying Spurs more than eight years old were listed for as little as CNY 268,000, while entry-level Porsche Macans were priced from CNY 150,000. Several used Mercedes-Benz and Land Rover SUVs have also seen significant price declines.
According to Liu Qingsong, head of Qingdao Baochi Luxury Cars, used luxury gasoline vehicles previously depreciated by less than 30% annually. This year, however, some models lost around 30% of their value in May alone, reflecting an unprecedented market correction.
The decline is being driven by several factors. Falling prices for new luxury vehicles have put downward pressure on the used market, while rising fuel costs and the rapid adoption of new energy vehicles (NEVs) have weakened demand for traditional gasoline-powered luxury cars. As consumer preferences shift, many buyers are opting for electric alternatives instead.
The downturn is also reshaping the used car industry itself. Dealers report mounting inventory losses and shrinking profit margins as rapid price fluctuations reduce the information advantage that traditionally supported the business. Increasingly, success depends on inventory turnover rather than price arbitrage.
Industry observers view the price collapse as part of a broader structural shift in China’s automotive market, where the rapid rise of NEVs is accelerating the depreciation of conventional luxury gasoline vehicles.
Molly Tea Loses Trademark Dispute with Louis Vuitton
Suzhou, July 02 — On July 2, a Chinese court ruled in favor of Louis Vuitton in a trademark infringement case against fast-growing tea chain Molly Tea, triggering widespread discussion on Chinese social media.
The Suzhou Intermediate People’s Court found that Molly Tea and one of its franchise stores had infringed seven of Louis Vuitton’s registered four-petal flower trademarks, ordering the company to bear legal responsibility.
Founded in 2021, Molly Tea has rapidly expanded to 2,347 stores across China and more than 50 overseas locations, making it one of the country’s fastest-growing premium tea brands.
The dispute centers on Molly Tea’s floral logo. Since 2024, the company has filed multiple trademark applications featuring flower-shaped graphics alongside its Chinese and English brand names. Most of the applications were rejected, with only the trademark containing the Chinese characters “茉莉奶白” successfully registered.
Legal experts note that while traditional floral patterns themselves are generally considered public-domain cultural elements, China’s trademark system follows a “first-to-file” principle. Businesses are therefore expected to avoid using commercial logos that closely resemble previously registered trademarks, regardless of industry differences.
The case highlights the growing importance of intellectual property protection as Chinese consumer brands accelerate both domestic expansion and international growth.
Wanda Accelerates Asset Sales Amid Ongoing Financial Restructuring
Beijing, July 03 — A recent corporate restructuring has transferred ownership of Shanghai Songjiang Wanda Plaza and Quanzhou Puxi Wanda Plaza to new investors. Suzhou Anyi Equity Investment Fund invested CNY 2.198 billion to acquire a 99.9995% controlling stake in the holding entity, effectively taking control of the two malls.
The transaction is part of Wanda Group’s ongoing asset disposal program. Since 2023, the company has sold more than 80 Wanda Plazas across China to a mix of state-owned enterprises, private investment firms, and construction companies. Some transactions are widely believed to involve debt settlements through asset-for-equity arrangements.
Wanda’s asset sales reflect years of financial pressure. The company began divesting assets as early as 2017, selling tourism and hotel businesses to improve liquidity. More recently, the failed IPO of Wanda Commercial Management triggered a CNY 30 billion share repurchase obligation, further straining its cash position.
As Wanda continues to raise capital through asset sales and equity dilution, its ownership stake in its commercial property business has steadily declined. The company’s strategy has also shifted from developing and owning shopping malls to a more asset-light operating model.
While the divestments have helped ease short-term financial pressure, they also mark a significant transformation for one of China’s largest commercial real estate developers, as Wanda gradually reduces ownership of the shopping mall portfolio that once formed the core of its business.