CX Daily: China’s Restaurant Chains May Be Biting Off More Than They Can Chew Overseas
TOP STORIES
Restaurants?/
With competition at home squeezing profits, a growing number of Chinese restaurateurs are looking overseas for fresh opportunities. But there are many challenges on the road to success abroad, not least the logistical and cultural hurdles.
“Everyone around me is going abroad,” a restaurant owner told Caixin. This surge has spawned a rash of culinary delegations and research groups exploring foreign opportunities. ?
BRICS?/
The BRICS, a geopolitical bloc composed of nine countries including China and Russia, held its 16th summit from Oct. 22 to Oct. 24 in Kazan, Russia. It was the first summit for the four new member states ― Iran, Egypt, Ethiopia and the United Arab Emirates ― since their accession to the group this year.
Multiple Asian, African and Arab countries have expressed interest in joining the bloc, including Malaysia, Thailand, Pakistan, Bangladesh, Azerbaijan, Senegal, Zimbabwe, Syria, Yemen, Bahrain and Kuwait. ?
Babies?/
China on Monday announced new policy measures to boost fertility, support child-rearing and promote a child-friendly society as it grapples with a declining birth rate and an aging population.
In 2023, only 9.02 million babies were born nationwide, the lowest number since 1949, marking two consecutive years of negative population growth. Meanwhile, more than 20% of the population is now over 60 years old, making China a moderately aging society. ?
FINANCE & ECONOMY
Corruption?/
Several former financial sector officials and executives who fell under corruption probes in recent years were fingered by Zhang Changgong, a fallen banker who named associates in an effort to reduce his potential punishment for corruption, sources with knowledge of the matter told Caixin.
An investigation into Zhang, who held executive roles at major joint-stock banks China Zheshang Bank Co. Ltd. and Industrial Bank Co. Ltd., found that he embezzled more than 600 million yuan ($84 million) of public funds and accepted around 300 million yuan in bribes, according to a source familiar with the investigation. ?
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Quick hit?/
BUSINESS & TECH
Drugs?/
China’s national health insurance regulator has kicked off the latest round of medicine pricing negotiations this week, as drugmakers bid to get their pricey innovative medications included in the country’s basic health insurance program.
From Sunday to Wednesday, big-name pharmaceutical firms Merck, Bayer, Sanofi and AstraZeneca, as well as local outfits such as Hengrui Pharma, Innovent Biologics and Haisco, are meeting in Beijing with the National Healthcare Security Administration (NHSA). ?
BRIEFING
A run-down of key developments in China over the past 24 hours:
Ranking the rich: China continued to shed billionaires this year. That’s according to this year’s Hurun China Rich List, the annual accounting of the country’s rarified wealthy. In U.S. dollar terms, the number of billionaires in the country shrank by nearly 16% to 753 individuals in 2024. China has lost just over one-third of its billionaires since the number peaked in 2021 at 1,185. And China’s fewer billionaires had fewer billions. The total combined wealth of the people on the list fell 10% from 2023 to $3 trillion. ByteDance Ltd. co-founder Zhang Yiming topped this year’s list. He supplanted Nongfu Spring Co. Ltd. founder Zhong Shanshan, who had held the title of China’s richest man for three years running.
EV market: China’s electric vehicle (EV) industry is getting a boost from the government. State media reported Tuesday that central government agencies have been ordered to ensure that new-energy vehicles (NEVs) make up at least 30% of the vehicles they buy or upgrade each year for official use, with some exceptions. The guideline, dated Sept. 27, also set a 180,000 yuan ($25,202) budget cap for each NEV sedan purchase.?
EV tariffs: The Ministry of Commerce has warned the European Union?against negotiating separate agreements with Chinese automakers amid ongoing talks for a deal that aims to reverse the additional duties ?the bloc has slapped on China-built EVs. A ministry spokesperson said Monday that the China Chamber of Commerce for Import and Export of Machinery and Electronic Products has been authorized as the representative of the industry in any negotiations over a price commitment agreement. Under such an agreement, manufacturers would agree to raise prices of vehicles they export to the EU and cap their volume in exchange for the bloc dropping the extra tariffs it imposed this year on EVs made in China.
Hong Kong SPACs: Hong Kong is about to see its first merger between a special purpose acquisition company (SPAC) and its target in what so far has been a sluggish market. The involved SPAC, HK Acquisition Corp., plans to complete its merger with the Southeast Asian e-commerce solutions platform Synagistics Pte. Ltd. on Wednesday. The new company will be listed on Hong Kong’s stock exchange under the name Synagistics Ltd. The completion of the merger, known as the de-SPAC, will take place nearly three years after the exchange began to allow SPAC listings.
Digital assets: Hong Kong’s stock exchange will launch a series of indexes designed to provide investors with benchmarks for virtual assets like Bitcoin and Ether on Nov. 15. Hong Kong Exchanges and Clearing Ltd. on Monday announced the launch of the HKEX Virtual Asset Index Series. The announcement fits with Hong Kong’s ambition to become a global hub for trading virtual assets. With the drive, the city aims to firm up its profile as an Asian financial hub. ?
Long Read?/