- China Insights Weekly
- Posts
- China revolutionizes ironmaking ⚙️ Alibaba’s $4B Korean JV 🛍️ iSoftStone beats HP in PCs 💻
China revolutionizes ironmaking ⚙️ Alibaba’s $4B Korean JV 🛍️ iSoftStone beats HP in PCs 💻
China Insights Weekly for December 30, 2024. Unpacking China’s Economic and Technological Advances.
Tomas Kucera & Yereth Jansen
December 30, 2024
Welcome back to this week’s edition of the China Insights Weekly Newsletter!
This week, we explore game-changing developments in renewable energy, tech innovation, and industrial leaps, alongside a major shift of global talent back to China.
Key Highlights at a Glance:
Tesla’s Shanghai Megapack factory: Aims to produce 10,000 Megapacks annually, adding 40 GWh of grid-scale energy storage capacity.
Pop Mart soars 370%: China’s hottest collectible toy company leads MSCI China Index growth, with global sales skyrocketing 400%.
Ironmaking revolution: China’s new flash ironmaking tech boosts production by 3,600 times and slashes CO₂ emissions.
Tibet’s record-breaking dam: The world’s largest hydroelectric project will generate 300 billion kWh annually, powering 300 million people.
Dive deeper into these stories and more by clicking the headlines below.
What should we cover more often? 🗳️ Pick your top choice!Your vote guides our next edition! Choose from the list below. |
🚀 Headlines
Tesla is set to begin operations at its first overseas Megapack lithium-ion battery factory in Shanghai by the end of December, with full production expected in the first quarter of 2025. Located in the Lingang Special Area, the factory was constructed in just seven months, starting in May, adjacent to Tesla’s Shanghai Gigafactory. The facility aims for an annual production capacity of 10,000 Megapacks, large-scale batteries designed to help grid operators store and transfer surplus energy, providing a grid-scale storage capacity of 40 gigawatt-hours (GWh).
World’s largest Japanese automaker Toyota will build a new electric vehicle (EV) plant in China to regain market share from Chinese competitors like BYD. The factory, which is located in Shanghai, will produce Lexus-branded EVs. The plant will operate independently, seeking benefits similar to those of Tesla, such as tax breaks and land grants, to directly own and control operations without a joint venture. The plant aims to begin operations around 2027. Toyota has several joint ventures in China, but sales come mainly from its joint ventures with Guangzhou-based GAC Group and Changchun-headquartered FAW Group. The company aims to manufacture at least 2.5 million vehicles annually in China by 2030.
Pop Mart, a Beijing-based collectible toy company, has seen its shares surge 368% this year due to a global craze for its products, outperforming most on the MSCI China Index. The company's domestic sales grew at least 55% in Q3 compared to the same period last year, while overseas sales skyrocketed by over 400%. Pop Mart's toys, often sold in blind boxes, have become a global phenomenon, with fans queuing for hours in the US and Australia for new releases and stores opening in cities like Paris, Milan, and New York. The company's intellectual property, such as the character Molly, drives its popularity without relying on storylines, instead introducing new versions to maintain interest. The company has 39 million registered members in China with a 43.9% repeat purchase rate, and its products have a strong presence on social media, with over 667,000 posts on TikTok under the hashtag #popmart.
Alibaba's AliExpress and South Korea-based E-Mart's e-commerce platform Gmarket are forming a 50-50 joint venture. The companies plan to make additional investments in the joint venture which will own 100% of Gmarket. The new entity could be valued at around USD 4 Billion. The deal would help the companies compete against domestic rivals including Naver and Coupang. In November, Alibaba announced the formation of its Alibaba E-Commerce Business Group, which unified its e-commerce platforms — including Taobao, Tmall, AliExpress, Alibaba.com, Lazada, Trendyol, 1688, and Idle Fish — under a single umbrella.
📸 Can you spare 30 seconds of your time?
We would love to get your feedback. Why do you enjoy reading China Insights? Let us know in a 30 second survey!
Beijing has approved 11 new generative AI (GenAI) services, including large language models (LLMs) from Zhipu AI and Xiaomi’s affiliate Rigo Design, bringing the city’s total to 105 approved LLMs as of last Friday. GenAI refers to advanced models capable of generating content such as audio, code, images, text, simulations, and videos. LLMs, a subset of GenAI, are models created using neural networks and trained with algorithms like gradient descent, forming the backbone of applications such as ChatGPT. Beijing’s growing roster of approved LLMs reflects its role as a hub for major tech players such as Baidu and Moonshot AI (developer of the Kimi AI app), alongside its prestigious universities with strong AI research capabilities. During the national tally in November, over 309 GenAI products were approved, Beijing led the Chinese regions with 96, Shanghai had 84, and Guangdong province 36. This highlights China’s expanding GenAI market and its increasing advancements in AI technologies.
iSoftStone, a relatively unknown Chinese tech firm, is set to become one of China's largest PC vendors, surpassing Huawei, HP, and Apple. In Q3 2024, iSoftStone more than doubled its PC shipments, holding a 10% market share and shipping over 1.1 million units, a 123% growth rate. This rapid growth has placed the company on par with Huawei in market share and ahead of both HP and ASUS. iSoftStone has shown strong performance in the public sector, education market, and gaming PCs. The company's growth is attributed to China's PC market, which is expected to grow by 6% in 2025, with significant public sector spending being a key factor. The government's promotion of indigenous innovation has created a favorable environment for domestic vendors like iSoftStone to thrive.
China's upcoming high-speed train, the CR450, is set to become the world's fastest commercial train with a trial speed of 450km/h and a commercial operating speed of 400km/h when it starts commercial operations next year. Enthusiasts recently captured the train on its journey from Tianjin to Beijing. This development follows a leaked test video in November, showcasing the train's sleek, bullet-shaped design. The CR450 builds upon the CR400, which debuted in 2017. China's high-speed rail system, the world's largest, covers over 45,000km. The China State Railway Group announced in September that the CR450 had entered full assembly, with prototype units expected by year-end.
Chinese researchers have developed a groundbreaking ironmaking technology that significantly accelerates the production process, completing it in just 3 to 6 seconds compared to the 5 to 6 hours required by traditional blast furnaces, representing a 3,600-fold increase in speed. This flash ironmaking method injects finely ground iron ore powder into a hot furnace, causing an "explosive chemical reaction" that produces a continuous flow of high-purity iron. This technology could enhance energy efficiency in the country's steel industry by over one-third and nearly eliminate carbon dioxide emissions by removing the need for coal. This innovation could be a game-changer for China's steel industry, whose capacity already exceeds the combined output of the rest of the world.
📸 China Snapshot
Jade Dragon Snow Mountain isn’t just an awesome name, it’s one of the most iconic and breathtaking mountain ranges in China. Located in Yunnan Province, just outside the ancient town of Lijiang, this 5,596-meter peak is the southernmost glacier in the Northern Hemisphere. Known for its dramatic cliffs, perpetual snow, and cultural significance, it is a sacred site for the Naxi ethnic minority, who view it as the home of their war god Sanduo. The mountain is part of the Three Parallel Rivers UNESCO World Heritage Site and a hub for ecotourism, offering cable cars to awe-inspiring vistas and performances of “Impressions of Lijiang,” celebrating local culture.
🎁 Bonus Stories
China approves the construction of the world’s largest dam, will generate 300 billion kWh of power yearly (link)
China has approved the construction of the world's largest hydroelectric power plant over the Yarlung Tsangpo River in Tibet, a project that will generate three times the energy of the current largest hydropower project, the Three Gorges Dam. The new plant will produce 300 billion kWh of power annually, enough to meet the energy needs of 300 million people. The Chinese government has allocated one trillion yuan (US$137 billion) for this ambitious infrastructure project, which will require drilling tunnels 4-20 km long to divert half the river's flow. The project site, with a vertical drop of 2,000 meters over 50 km, has the potential to generate 70 million kilowatts of power. Hydro is the second largest source of power generation in China, making up nearly 14% of the nation’s energy mix last year.
The reverse brain drain continues as Chinese and international scientists, leading distinguished experts continue to move back to China in 2024 (link)
From a Nobel-winning laser scientist to an award-winning mathematician, we share a list of experts who moved to China in 2024. French Nobel-winning laser scientist Gérard Mourou joined Peking University. Award-winning Japanese mathematician Kenji Fukaya left the US for Tsinghua University. Award-winning mathematician Ma Xiaonan left a decades-long career in Europe to join Nankai University in Tianjin. After more than 20 years in Britain, British chair professor and prominent physicist Zhang Yonghao joined China's new national hypersonic laboratory in Beijing. Global climate expert at the Royal Swedish Academy of Sciences Chen Deliang returned to Tsinghua University after 3 daces in Europe. Wang Xujia, a distinguished Chinese-Australian mathematician and fellow of the Australian Academy of Sciences, has returned to his hometown of Hangzhou to join China's Westlake University after nearly 3 decades abroad.
📆 Upcoming China Expos
With the Lunar New Year approaching, the expo season slows down, but will pick up again soon in the new year.
ISPO Beijing 2025: Jan 10–12, Beijing (www.ispo.com)
Alpitec China 2025: Jan 10–12, Beijing (www.fierabolzano.it)
🏆 Refer friends, unlock rewards!
☕ Support our work
If you enjoy our newsletter, please consider buying us a coffee to keep us energized in bringing you the latest insights! 🤓☕
👥 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! 🎄
For more EV news, also check out our partner China EV Pulse.
Reply