Newsletter By 2024-04-21
While Western governments roundly condemned Iran's drone and missile attack on Israel, China refrained from criticizing Tehran, merely saying it was "deeply concerned." "China's diplomacy is reminiscent of Maoist principles to some extent, which emphasize that the enemy of our enemy is our friend," said
Kung Chan, founder of ANBOUND, in an interview with Nikkei Asia. "Therefore, it is not surprising that China's diplomatic rhetoric leans toward Iran."
>>The internet society has now dictated that "online traffic is king", and with that, it determines the "toxicity” of such an economy in China. Demand from the bottom and lower-end segments of the society is usually significant, but this wave-like, large-scale demand tends to be of low-end nature, thereby determining, driving, and possibly leading to the commodification of social products and services. In order to gain an upper hand in scale and user traffic, internet companies and platforms are competing with each other, even resorting to mass-producing vulgar and low-quality content to attract users. The ultimate result is the elimination of high-quality products and refined culture that do not contribute to traffic as much as possible, said
ANBOUND’s founder Kung Chan.
>>The recent global layoffs at Tesla have signaled the beginning of a new phase in the adjustment of the new energy vehicle market, and this is especially true for electric vehicles. Some manufacturers may secure stronger positions after this round of competition, while others may face the possibility of being phased out. Unlike the plateauing growth in the domestic market in China, the international market as a whole remains an increment with continuously growing demand. The transition from high-speed to low-speed growth has already begun. This change is not a short-term market fluctuation, but a gradually emerging trend. It may appear and intensify first in the Chinese market, then gradually manifest in other countries' markets as well, according to
He Jun, Director of Macro-Economy Research Center and Senior Researcher at ANBOUND.
>>The CPI and PPI indicate that the Chinese economy is still in a challenging phase of gradual recovery. Factors such as deglobalization and geopolitical turbulence continue to affect the global economy, while the structural adjustments of global industrial and supply chains are deepening. The expansion and tapping of the domestic market in China are also limited. From various aspects such as enterprise operation, labor employment, household income, and market expectations, the economy is still relatively fragile. Both policymakers and the market forces need to tread carefully and cautiously monitor the economy’s recovery, as pointed out by ANBOUND’s researchers.
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