CX Daily: China Launches New Plan to Tackle Tuberculosis
TOP STORY
Tuberculosis?/
In Nanshan district in the southern metropolis of Shenzhen, one of the most prosperous urban areas in China, some 500 new tuberculosis cases are diagnosed each year.
The world’s number one infectious killer is prevalent across many regions of China, from some of the wealthiest to the most remote rural areas. As a result, the country has the third largest number of cases of TB each year, according to the World Health Organization (WHO).
The vast majority of China’s cases have always been walk-ins, as its traditional approach has focused on diagnosis and treatment over detection. However, incidence rates are dropping, and in response the government has launched a new plan encouraging a more active approach to tackling the epidemic. ?
BUSINESS & TECH
China-Mexico?/
U.S. President-elect Donald Trump has said he will slap 25% tariffs on imports from Mexico, a move that experts say could jeopardize Chinese companies’ investments in the country while increasing prices for American consumers and hurting the broader economy.
The golden age for Chinese companies investing in Mexico may be coming to an end, Liu Xuedong, a professor at the National Autonomous University of Mexico, told Caixin. ?
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BRIEFING
A rundown of the news making headlines in and around China:
Growth estimate: The World Bank nudged up its China GDP growth forecast for this year to 4.9%, up from its June projection of 4.8%. The revision comes as the economy grew by 4.8% year-on-year in the first three quarters, despite a slowdown since the second quarter. The World Bank said the slowdown stemmed from weak domestic demand and a persistently sluggish real estate market. Although China’s recent series of economic stimulus measures are expected to support growth, the World Bank suggested that a lack of confidence among residents and businesses, as well as headwinds from the real estate sector, will continue to weigh on the economy in 2025.
Looser visa rules: Japan said it will relax visa policies for Chinese tourists in the spring, a change that follows its addition to China’s visa-free travel program in November. The changes include making Chinese citizens eligible for a 10-year multiple-entry tourist visa to Japan. Currently, they can only qualify for a five-year multiple-entry visa. Japan was the No. 1 international destination for Chinese tourists during the National Day holiday in October. China has been relaxing its visa policies of late in an effort to boost tourism amid a lackluster economic recovery.
SAIC’s ‘only hope’: Electric-vehicle (EV) maker IM Motors raised 9.4 billion yuan ($1.3 billion) in a recent round of fundraising as its state-owned backer SAIC Motor Corp. Ltd. struggles with falling sales. IM Motors said it will use the new funding to develop core technologies as it plans to accelerate the launch of new models next year. In the first 11 months of this year, SAIC and its two major joint ventures with Volkswagen AG and General Motors Co. all suffered declining sales. SAIC appears to see its EV brands like the high-end IM Motors as a way to get sales growing again, with company president Jia Jianxu referring to them as “our only hope.”
WuXi AppTec divests: Chinese biotech company WuXi AppTec Co. Ltd. has finalized a deal to sell off a subsidiary in the U.S. and another in the U.K. as its foreign business faces challenges from legislation that aims to restrict foreign-controlled biotechnology companies’ access to U.S. funding. WuXi AppTec said that it signed an agreement on Tuesday to sell its stakes in its Advanced Therapies Inc. and Oxford Genetics Ltd. units. It did not disclose the sale price, saying only it aims to complete the deal in the first half of 2025. The buyer is Altaris LLC, a New York-based equity investment fund focused on health care.
Transportation reform: China wants to get the private sector more involved in parts of the transportation sector like railways. A recently released document from the State Council included changes that opened the areas of railway construction and operation to market forces. Currently, China State Railway Group Co. Ltd. is the sole major operator in the domestic railway industry. In 2023, the state-owned enterprise had a net profit margin of 0.27%. ?
GALLERY
Although it’s not an official holiday on the Chinese mainland, the festive spirit was on vivid display in Christmas markets, decorated trees and fireworks displays throughout the country. The holiday saw people head out to shop and spend at a time the country is struggling to revive sluggish domestic consumption. In the first 11 months of 2024, retail sales of consumer goods in Beijing and Shanghai recorded year-on-year declines for most months. Analysts attribute the trend to an outflow of high-net-worth individuals and young professionals, caused by the exit of foreign enterprises, high unemployment and the overall economic slowdown.