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- Black Myth Wukong Breaks Records 🎮 Shanghai’s Humanoid Robots 🤖 China 3rd in FDI Rankings 🌍
Black Myth Wukong Breaks Records 🎮 Shanghai’s Humanoid Robots 🤖 China 3rd in FDI Rankings 🌍
China Insights Weekly for August 26, 2024. Unpacking China’s Economic and Technological Advances.
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Welcome back to this week’s edition of the China Insights Weekly Newsletter!
Some of the key takeaways this week:
China Rises to 3rd: China leaps from 7th to 3rd in the 2024 FDI Confidence Index, surpassing major global markets.
2.2 Million Players in 24 hours: Black Myth: Wukong breaks records worldwide in its first 24 hours on Steam.
130% Tourism Surge: Tourism to China soars by 130% in the first seven months of 2024, driving significant economic impact.
Lunar Water Breakthrough: China pioneers a method to water from lunar soil.
Dive deeper into these stories and more by clicking the headlines below. We value your feedback—let us know your thoughts or suggestions on LinkedIn, X or Facebook.
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🚀 Headlines
China jumped from 7th to 3rd in the 2024 FDI Confidence Index world rankings by US-based management consulting firm Kearney. This could be explained in part by the loosening of capital controls for foreign investors in Shanghai and Beijing in September 2023. China ranks just behind the USA and Canada, beating out all the European and Asian FDI destinations. Overall, this year’s survey revealed investors’ preference for developed markets, which accounted for 17 of the 25 markets on the Index. However, emerging markets continue to build their presence on the list, with the United Arab Emirates and Saudi Arabia in particular experiencing meteoric rises from 18th to 8th and 24th to 14th, respectively. China ranks number one in the emerging market rankings.
In its first 24 hours, Hangzhou-based Game Science’s Black Myth Wukong made history. The action RPG inspired by Chinese mythology peaked at over 2.2 million players shortly after it launched on August 20, 2024. This is the highest peak for any single-player title on Steam. It’s the second-highest peak on the platform, only behind PUBG’s 3.3 million players. The game is currently the top seller on Steam and 97% of its 180,000-plus reviews are positive. Viewers have watched over 7 million hours of Twitch content since its launch. At this rate, Black Myth Wukong might become the biggest hit of 2024. In just 3 days, 10 million copies of the game have been sold, generating an estimated CNY3.33 billion (USD467.11 million). The game's success proves that Chinese game studios can break into Western console markets.
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For many Western airlines, the closure of Russia’s airspace has been the most significant factor in making the routes to China unviable. Flying over Russia saves three hours on a flight from Beijing to London. The number of flights by international carriers from Europe and North America to China during the busy summer season is down more than 60% from a 2018 peak of over 13,000. Chinese airlines have reduced flights on such routes by only 30% from their peak in 2019 and now operate more than twice as many services on these routes during the summer as their Western rivals. Chinese airlines have increased scheduled flights to Europe during the summer season by 16% compared with 2019, reaching 14,835.
Uniqlo plans to open 20 additional stores in China between September and October this year – including its first store in Sanya. Uniqlo operates over 900 directly managed stores across mainland China. It plans to open 50 stores annually nationwide – resulting in a net gain of 30 stores. This occurs after announcements in March, when Fast Retailing, the Japanese brand’s parent company, stated it would shutter up to 50 “unprofitable” stores in China. Uniqlo plans to capitalize on the nation's post-Covid retail recovery and rising domestic travel.
British Petroleum (BP Plc) has acquired a stake in a Chinese sustainable jet fuel company for 350 million yuan (USD49 million), giving the oil major a foothold in one of the world’s biggest aviation markets. The company purchased a 15% stake in a subsidiary of Zhejiang Jiaao Enprotech. The Chinese company is scheduled to complete the construction of a sustainable jet fuel plant in the first quarter of 2025, which will have the capacity to produce 500,000 tons a year. Biofuel will be made from used cooking oil and animal waste fat. Biofuels could help the aviation sector reduce emissions by 65% by 2050.
China is unleashing billions of dollars of lending to technology start-ups and other small companies using their intellectual property as collateral. Total new intellectual property-pledged financing loans soared 57% in the first six months of 2024 compared with the same period last year to RMB419.9 bn (USD58.8 bn), after increasing 75% to RMB854 bn for the full year in 2023. The increased issuance of loans against IP — such as patents, trademarks, or even geographical indications that recognize the special status of regional products — is part of a strategy to boost innovative small companies. With China’s stock markets rangebound and venture capital activity relatively depressed, smaller banks were stepping in — helped by the government’s recognition of intellectual property as legitimate capital. China authorized 921,000 invention-related patents in 2023, up 15% from a year earlier, and about 4.4 million trademarks.
The first humanoid robots factory in Shanghai, built by local startup Agibot, will start deliveries in October and ship 200 bipedal and 100 wheeled robots by the end of this year. The company has introduced 5 new models under the Expedition A2 series. Central to the innovation in the Expedition A2 model are advancements in four key areas: power, perception, communication, and control. The robot’s dexterous hand now boasts 19 degrees of freedom (DOF), up from the previous 11, enabling it to perform more intricate and precise tasks. Robot’s hand can execute everyday tasks such as unpacking deliveries and pouring water. China has set up a Humanoid Robot Innovation Hub in Shanghai and is building a training ground for 1,000 humanoid robots.
Tourism to China surged 130% during the first seven months of 2024 but still lags behind 2019 levels (link)
During the first seven months of 2024, the number of foreign visitors to the country reached 17.25 million, which is a record 129.9% increase year over year. Meanwhile, 341 million cross-border travels were recorded, up 62.34% from the same period last year. Thanks to foreign visitors China’s consumption topped 100 billion yuan, or about USD14 billion U.S. The per capita daily average consumption volume was nearly 3,500 yuan. The jump is in large part due to Visa-free policies. Despite the increase, China’s inbound arrivals are still far away from its 2019 numbers, when for the full year it had over 49 million overseas visitors. International tourism revenue reached USD131.3 billion that year.
🏞️ China Snapshot
The building on the left is The Henderson, a brand-new architectural marvel designed by Zaha Hadid Architects. Set against the backdrop of the renowned Bank of China Tower and the HSBC building, The Henderson is already being hailed as a new landmark. Inspired by the buds of the Hong Kong orchid, its undulating facade, made up of over 4,000 panels of double-laminated glass, adds a dynamic and organic presence to the city’s skyline. This building, which sits on the world’s most expensive plot of land, represents a bold vision for the future of urban design in Hong Kong, blending nature with cutting-edge architecture.
Hong Kong Skyline
🎁 Bonus Stories
Amplified by TikTok, Xiaohongshu, and a new wave of viral tastemakers, the nail art market is experiencing a creative renaissance in 2024. The market size of global nail care products was valued at USD 23.41 billion in 2023, while the nail salon market is expected to reach USD 23.4 billion by 2032. The global artificial nails market will reach USD 2.54 billion by 2033. The detailed nail art boom has led to domestic parlors being booked months in advance. In response, skilled technicians are raising their prices, with complex techniques such as gradient shading, embossing, and the use of precious materials costing up to 10,000 RMB (USD 1,400). Shanghai’s Gluglu bakery is one of the many brands harnessing nail art as a marketing tool to promote its sweet treats on Xiaohongshu.
Scientists in China have introduced a revolutionary method to extract water from lunar soil. This method produces 50 liters (13 gallons) of water from a tonne of lunar material. Developed after observing lunar rock samples brought to Earth by the Chang’e-5 probe in 2020, the process relies on extracting hydrogen and oxygen from the soil at extremely high temperatures. When the material is heated above 1,200 K using concave mirrors, one ton can yield over 50 kg of water, equivalent to about a hundred 500-ml bottles of drinking water. This would be enough drinking water for 50 people for one day.
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