World’s fastest laser cutter ⚡ China backs Saudi green tech 🌱 Hyundai’s $1.1B EV boost 🚗

2024-12-16 | subscribe | homepage

This week, your China Insights team spotlights the latest in EV investments, pharma breakthroughs, and automation trends shaking up China’s economy.

Key Highlights at a Glance:

• Sanofi €1B insulin factory in Beijing

• Hyundai and BAIC’s $1.1B EV venture

• Spain’s $4.2B battery plant with CATL

• China doubles robot density in 4 years

Dive deeper into these stories and more by clicking the headlines below. Don’t miss our China Expo Calendar at the bottom for upcoming events!

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🚀 Headlines

France’s Sanofi charts biggest China investment to date with plans for €1B insulin 'manufacturing base' in Beijing (link)

French pharmaceutical company Sanofi has announced its largest investment in China to date, planning to invest €1 billion (USD 1.04 billion) to establish a new insulin production base in the Beijing Economic and Technological Development Zone. This will be Sanofi's fourth manufacturing site in China, following facilities in Beijing, Shenzhen, and Hangzhou. The move comes in response to the significant need for insulin in China, where 140 million adults were living with diabetes by the end of 2021. Sanofi's investment underscores its commitment to local end-to-end insulin production and enhancing its overall production capabilities in the country.

South Korean Hyundai and Beijing-based BAIC to launch joint venture and invest USD 1.1 billion in China (link)

Korea-based Hyundai Motor and China’s BAIC are injecting USD 1.1 billion into their China joint venture, Beijing Hyundai Motor Co., to accelerate the transition to electric vehicles and boost exports amidst declining sales. Each company will contribute approximately USD 548 million to the venture. The investment aims to maintain short-term capital stability and support long-term strategies through new technology and product investments. BAIC plans to introduce more products catering to Chinese consumers and expand exports. Beijing Hyundai sold only 137,300 vehicles as of October, a 41% drop from the same period in 2023, and reported a deficit of 2.6 billion yuan (USD 358 million) for the first 9 months of 2024. BAIC unit is separately also an EV manufacturing partner to Xiaomi that produced 100 thousand cars in just 230 days.

China’s CATL and Stellantis join forces to build USD 4.2 billion battery plant in Spain, as Asian firms take over the European market (link)

Chinese battery giant Contemporary Amperex Technology (CATL) and European automaker Stellantis are joining forces to invest €4 billion (USD4.2 billion) in a battery plant in northern Spain. The joint venture aims to begin production in Zaragoza by the end of 2026, with an annual capacity of 50 gigawatt hours of lithium iron phosphate batteries. CATL's Luxembourg subsidiary will hold a 50% stake in the venture, while Stellantis's French and Spanish units will own 40% and 10%, respectively. This collaboration follows CATL's operational plants in Thuringia, Germany, and Debrecen, Hungary.

10 of 13 projects by Asian manufacturers, including China's Contemporary Amperex Technology Co. (CATL) are progressing on track. In contrast, Europe's efforts to develop a domestic battery industry are faltering, with 11 out of 16 planned European-led battery factories delayed or canceled.

China moves up global robot rankings, doubles robot density in 4 years (link)

China has advanced to third place globally in robot density, overtaking Germany and Japan, according to the World Robotics 2024 report by the International Federation of Robotics (IFR). With a robot density of 470 robots per 10,000 employees, China has doubled this figure within four years. The Republic of Korea leads with 1,012 robots per 10,000 employees, followed by Singapore with 770. Germany and Japan rank fourth and fifth with 429 and 419 robots per 10,000 employees, respectively. The United States stands at 295 robots per 10,000 employees, ranking eleventh. The global average robot density reached a record 162 units per 10,000 employees in 2023, more than double that of seven years prior. This reflects China's significant investment in automation technology despite a vast manufacturing workforce of around 37 million people.

China leads global integrated circuit market again this year with 20% growth (link)

China is set to lead the global integrated circuit (IC) market again this year, with 20% growth pushing its market to $186.5 billion, or 30% of the global total, according to WICA. The US follows with an 18% growth rate. The global semiconductor market is rebounding by 17% to $620.2 billion in 2024, after an 8.5% decline in 2023. Demand is surging for storage and logical chips, projected to grow 61% and 21%, respectively, driven by the computation and communication sectors (up 18.4% and 17.9%) and a 16.7% increase in automotive IC applications. Key trends include AI, autonomous driving, and third-generation semiconductor innovations.

China’s ties with Saudi Arabia buoyed by green tech (link)

China and Saudi Arabia are strengthening their economic ties, driven by Saudi Arabia's increasing demand for green technology. Bilateral trade is reaching record highs, with Chinese exports to Saudi Arabia amounting to USD 40.2 billion in the first 10 months of 2024, up from USD 34.9 billion in the same period last year. China has become the largest source of greenfield foreign direct investment in Saudi Arabia, totaling USD 21.6 billion from 2021 to October 2024, with about a third invested in clean technologies like batteries, solar, and wind. This investment surpasses that of the US, which stands at USD 12.5 billion. The deepening relationship is part of Saudi Arabia's Vision 2030 modernization drive to diversify its economy and transition to cleaner energy.

African Banks establishing presence in China as Beijing pushes for de-dollarization (link)

African banks are expanding into China to strengthen trade ties and support Beijing’s de-dollarization efforts. Nigeria’s Access Bank UK opened a Hong Kong branch to boost Asia-Africa economic relations under the Belt and Road Initiative (BRI), spanning over 140 countries. South Africa’s Absa Group launched a Beijing subsidiary to facilitate trade with Africa. At FOCAC, China pledged 360 billion yuan ($49.5 billion) in financial commitments, promoting yuan-based transactions. Banks like Morocco-based Bank of Africa, National Bank of Egypt, and Standard Bank are enhancing African business access to Chinese markets, while China encourages “Panda Bonds” to internationalize the yuan.

China sells the world’s fastest 60kW laser cutter to anonymous US buyer (link)

Chinese company Penta Laser, a joint venture between Chutian Laser Group and an Italian partner, has sold the world's fastest 60kW laser cutter to an unnamed US multinational corporation, a leader in the global steel structure industry since 1903. The 60kW cutter, which is four times faster than a 20kW model, can cut through 20mm-thick carbon steel at 11-12 meters per minute. It boasts a cutting area of 3×13 meters, a precision of 0.03mm, and automated loading and unloading capabilities. This sale marks a significant advancement for China's high-tech manufacturing sector in international markets and highlights the country's growing prowess in fiber laser technology, challenging the traditional dominance of US companies in the industry.

🎁 Bonus Stories

Black Myth: Wukong wins Best Action Game at USA’s The Game Awards 2024 (link)

China's first AAA game, Black Myth: Wukong, secured the Best Action Game award at The Game Awards (TGA) 2024, an event often called the Oscars of the gaming industry. Inspired by Journey to the West, the game was nominated in four categories, including Game of the Year, marking the first time a Chinese game received such a nomination. Despite high expectations, the Game of the Year award went to Sony’s Astro Bot. Developed by independent studio Game Science over seven years, Black Myth: Wukong achieved a peak of over 2.2 million concurrent players on Steam during its launch on August 20.

New whiskey frontier: Global spirits giants are betting big on China (link)

Global spirits giants are increasingly investing in China's whisky industry, with Diageo recently opening its YunTuo Single Malt Whisky Distillery in Yunnan, a project costing RMB 800 million (US$120 million). This marks Diageo's first distillery in China and reflects confidence in the market's potential. Other international companies, including Pernod Ricard, have also established distilleries in China, with a collective belief in the market's high growth. China's whisky market is expected to grow at five times the global rate, with Scotch whisky exports to China reaching £235 million in 2023, projected to nearly triple by 2027. Despite challenges such as a recent decline in whisky imports and the infancy of domestic brands, the market's size and long-term potential continue to attract significant foreign investment.

📆 Upcoming China Expos (Dec 2024–Jan 2025)

Plan ahead. These events offer firsthand insights into China’s fast-evolving sectors.

• China (Shanghai) International Casting Exhibition 2024: Dec 18–20, Shanghai (www.foundry-exhibition.com)

• International Advanced Rail Transit Exhibition 2024: Dec 18–20, Shanghai (en.artsexpo.cn)

• China International Bus Expo 2024: Dec 18–20, Shanghai (www.sg-busexpo.com)

• Guangzhou International Hotel Equipment and Supplies Exhibition 2024: Dec 19–21, Guangzhou (www.gzhoshow.com)

• World Cafe Expo Shanghai 2024: Dec 20–22, Shanghai (en.cafeex.com.cn)

• ISPO Beijing 2025: Jan 10–12, Beijing (www.ispo.com)

• Alpitec China 2025: Jan 10–12, Beijing (www.fierabolzano.it)

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