US firms bet big on China 💰 China makes fuel in space 🚀 Chinese sellers flood Walmart 🛒

2025-03-03 | subscribe | homepage

Welcome back to this week’s edition of the China Insights Weekly Newsletter!

Key highlights shaping the week:

• 💰 US firms to reinvest $14.6B in China, a 33% surge, despite falling optimism on US-China ties

• 🛒 China-based sellers now 28% of Walmart’s marketplace, doubling in a year

• ☀️ China’s solar boom slows but remains strong with 215-255GW forecast for 2025

• 🚀 Tiangong astronauts produce rocket fuel and oxygen using artificial photosynthesis, a game-changer for moon missions

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.

🚀 Headlines

US firms in China eye long-term success with 33% surge in China reinvestment plans (link)

According to a survey by the American Chamber of Commerce (AmCham) in southern China, US firms in China plan to reinvest $14.59 billion over the next three to five years, marking a 33.18% increase from previous figures. This surge reflects renewed confidence in China's market potential despite weakened confidence regarding US-China relations. The survey, conducted from October to December, revealed that 57% of American firms reinvested in China in 2024, with 43% reporting revenue growth. However, optimism about US-China relations declined sharply, with only 25% of respondents optimistic, down 19 percentage points from the previous year. Trade tariffs continued to impact market share, with 54% of American firms experiencing declines. Despite these challenges, 77% of firms planning to reinvest in 2025 expected budgets under $10 million. Beijing responded by unveiling a 20-point action plan to boost foreign participation and revive confidence.

The number of China-based sellers on American Walmart’s third-party marketplace has skyrocketed to 28% (link)

In 2021, Walmart began allowing foreign sellers, including those from China, onto its third-party marketplace. From 2023 to 2024, the number of China-based Walmart marketplace sellers increased from fewer than 25,000 to 50,000, making up 28% of all active sellers in 2024, up from 20% in 2023. This move aims to replicate Amazon's growth strategy. Since August 2024, Walmart marketplace sellers could start shipping from China to the U.S. Walmart fulfillment services network. Rising platform fees on Amazon have prompted Chinese sellers to seek other options including selling on Walmart.