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- 3rd-gen reactor powers 6M homes ⚛️ Chinese jet takes on Boeing ✈️ China builds massive island airport ✈️
3rd-gen reactor powers 6M homes ⚛️ Chinese jet takes on Boeing ✈️ China builds massive island airport ✈️
China Insights Weekly for January 6, 2024. Unpacking China’s Economic and Technological Advances.
Tomas Kucera & Yereth Jansen
January 06, 2025
Welcome to the first China Insights Weekly newsletter of 2025!
As we ring in the new year, here are some top stories shaping China’s business and tech landscape:
Universal Robots builds its first overseas factory in Nantong
BYD tops December NEV sales at 1.5M units
Comac’s C919 flies its 1Mth passenger, plans for Europe
China’s 3rd-gen nuclear reactor powers 6M homes
Dive deeper into these stories and more by clicking the headlines below.
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🚀 Headlines
Universal Robots A/S, the global leader in collaborative robot arms, is opening its first overseas production facility in Nantong, China, to meet rising demand in the world’s largest robotics market. The new plant will produce the UR7e and UR12e robots, tailored for China’s automotive, electronics, and metal & machinery industries. In 2023, China accounted for 51% of global robot installations with 276,288 units and ranked third in robot density at 470 robots per 10,000 employees. This expansion aligns with China’s automation drive and growth potential in robotics.
Western pharma China deals continue as Sanofi and Ideaya target treatments for global commercialization (link)
France-based Sanofi bought China rights to Cytokinetics’ aficamten, a hypertrophic cardiomyopathy candidate, from Shanghai-based Corxel Pharmaceuticals. This is the second China purchase by Sanofi in the last few months. In September, the French pharma acquired China rights to the CD73 antibody uliledlimab from I-Mab spinout TJ Biopharma. In a separate deal to start 2025, San Francisco-based Ideaya Biosciences is paying Jiangsu Hengrui Pharmaceuticals USD 75 million upfront for rights to SHR-4849, a phase I DLL3-targeting opo-I-payload antibody-drug conjugate (ADC), outside of greater China. Shanghai-based Hengrui is eligible to receive up to USD 1.04 billion which includes USD 200 million in development and regulatory milestone payments and commercial success-based milestone payments.
China steps up international expansion of its jetliner; aims to break Boeing and Airbus grip on plane market (link)
China's state-owned conglomerate Commercial Aircraft Corp of China (Comac) opened new overseas outposts in Singapore and Hong Kong in October as it pushes for overseas certification and increased output of its flagship C919 jets. C919, a single-aisle aircraft, has been in domestic service since 2023 with major Chinese carriers like Air China, China Eastern Airlines, and China Southern Airlines. On December 19, 2024, China Eastern Airlines’ flight carried its millionth C919 passenger since its commercial debut on May 28, 2023. 16 C919s have been delivered so far. From January 2025, China Eastern will begin operating the C919 regularly between Hong Kong and Shanghai, marking its first international route. Comac aims to receive European certification by 2025 and expand the C919's presence in Southeast Asia by 2026. The world will need 42,430 new aircraft over the next two decades, roughly 80% of which will be single-aisle aircraft.
China's new energy vehicle (NEV) market continued to rise in December, with wholesale sales estimated at 1.5 million units. This represents a 35% increase year-on-year and a 5% increase from November. It marks the 5th consecutive month that NEV wholesale sales have exceeded 1 million units. In terms of retail, NEV penetration in China surpassed 50%. The growth was supported by trade-in subsidies, which have been effective since April and were doubled in July.
Major brands hit records. Shenzhen-based BYD, +66.25% for the full year. Hangzhou-based Geely sales were +43% in December from last year and +32% for the full year. Shanghai-based Nio delivered 72.9% more vehicles in December and 38.7% more for the full year. Bejing-based Li Auto delivered 16.2% more cars in December than a year earlier and Guangzhou-based XPeng deliveries increased 19% over November and 82% from the last year. For the full year 2024, Tesla delivered 657,000 vehicles, up 8.8% over last year, also setting a new record.
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China’s top stock of 2024 is expected to see more growth next year from the nation’s drive for greater self-sufficiency in AI. Shares of Cambricon Technologies, an AI chip designer based in Beijing, surged 383% last year, outperforming U.S. AI accelerator giant NVIDIA and Taiwan-based foundry leader TSMC. The company has seen its valuation reach USD 37 billion. Cambricon has seen a sharp increase in demand, sales surged by over 280% year-over-year in the third quarter of 2024. The stock rise is linked to China’s efforts to enhance self-reliance in technology due to United States trade restrictions. Graphics processing unit (GPU) localization could experience further growth in 2025. Huawei is expected to benefit the most from this shift, followed by Cambricon.
China's mini-drama market is experiencing significant growth, with revenues expected to reach USD 6.9 billion in 2024, a 35% increase from the previous year. The number of viewers is estimated to have reached 576 million. This surge is driven by the popularity of short video platforms like Douyin, Kuaishou, and WeChat Video Channels, which have changed viewer habits. Mini-dramas offer a low-risk, high-reward model, with production costs ranging from USD 54,800 to USD 109,600 per series, compared to traditional TV dramas that cost tens of millions of yuan. Revenue comes primarily from viewer payments and advertising, with the 2023 market valued at CNY 38.4 billion. The growth has also led to a boom in filming locations, with idle industrial parks and venues being repurposed for production, boosting local businesses.
China has successfully connected its first third-generation Hualong One nuclear reactor to the grid at the Zhangzhou nuclear power plant in Fujian province. The Hualong One is an advanced, domestically developed technology that is safer and more efficient than second-generation reactors. Currently, China has 33 Hualong One reactors in operation or under construction, making it the world's largest third-generation nuclear power technology. A single Hualong One reactor can power six million homes. The Zhangzhou site, with six planned reactors, is one of the most ambitious nuclear projects globally, with a budget of USD 14 billion. This development aligns with China's goal to achieve carbon neutrality by 2060, showcasing its commitment to reducing reliance on coal-powered energy.
China is constructing the world's largest airport on an artificial island, the Dalian Jinzhou Bay International Airport, off its northeast coast. The airport will cover a 20-square-kilometer island, featuring four runways and a 900,000-square-meter passenger terminal. It is designed to handle 80 million passengers annually across 540,000 flights, with the first phase expected to open in 2035. Dalian, a city of 7.5 million people, is a key transport hub due to its proximity to Japan and South Korea. The existing Dalian Zhoushuizi Airport has reached maximum capacity, prompting the need for a new airport. This development aligns with China's broader aviation growth strategy, as the country is poised to surpass the United States as the world's largest air travel market by 2035.
📸 China Snapshot
Qingdao’s Marina Bay Area, where the Olympic Sailing Center and the iconic Olympic rings are located, transforms into a futuristic spectacle at night. This vibrant downtown district, set against the Qingdao skyline, is famous for its nightly light show, often described on social media as resembling a cyberpunk cityscape. The dazzling display of colors lights up the skyscrapers, including the International Conference Center, creating a surreal and modern backdrop for visitors. Known for hosting the 2008 Olympic sailing events, this area is a prime spot for nighttime strolls, street food, and incredible views of one of China’s most visually stunning urban skylines.
🎁 Bonus Stories
China experienced a significant post-Covid surge in travel in 2024. The railway network recorded 4.08 billion passenger trips, a 10.8% increase year-on-year, while air travel reached an estimated 730 million trips, up 18% from the previous year. Domestic tourism thrived, with 4.24 billion trips made in the first three quarters, representing a 15.3% increase. Total domestic tourism expenditure reached 4.35 trillion yuan, up 17.9% year-on-year. The growth was driven by improved infrastructure and a growing interest in leisure travel, including lesser-known destinations. International travel flourished as well, with inbound and outbound tourism boosted by visa-free policies and revised bank card rules for foreign tourists. In 2025, China will invest 590 billion yuan in infrastructure. It will put 2,600 kilometers of new railway lines into operation.
China, Kyrgyzstan, and Uzbekistan Railway project had been under discussion for two decades but was finalized in June when the leaders of the three countries signed an intergovernmental agreement. Covering a distance of almost 523 kilometers (325 miles), the strategically important railway will run west from the Chinese city of Kashgar in the northwestern Xinjiang region through the Kyrgyz border city of Jalal-Abad to Andijan in Uzbekistan. The section in China will be around 155 kilometres while the Kyrgyz section will be the longest at 305 km and the Uzbek section will be 63 km. The project could cost up to USD 8 billion and is expected to be finished in 6 years. The construction of railways in mountainous areas in Kyrgyzstan calls for the construction of 27 tunnels and 46 bridges.
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👥 About us
China Insights is brought to you by Tomas Kucera, China General Manager at Gemini Personnel in Shanghai, and Yereth Jansen, China CEO at Darling Advertising + Design in Shanghai.
Tomas and Yereth together have almost 30 years of experience working and living in China across different industries, and have a shared mission of bringing you objective insights about the world’s second largest economy.
We hope to see you again next week!
The China Insights team wish you happy holidays! 🎄
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