Must-Read China Economic News (Feb. 15-21)
From President Xi's meeting with entrepreneurs to new foreign investment policies, as well as fresh records set by "Ne Zha 2" -- take a look at the latest noteworthy things in China's economy.
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⭐Under the Spotlight
Xi's symposium with private entrepreneurs
For the first time in nearly seven years, Chinese President Xi Jinping convened a high-level symposium on private enterprises on Monday. The meeting brought together influential business leaders from cutting-edge technologies and key industries, underscoring the country's steadfast support for the private sector.
The event came just weeks ahead of this year's "two sessions," or the annual sessions of China's national legislature and national political advisory body in March, where the country's annual economic growth target, along with other key policy measures for growth and reform, will be announced.
In his speech, Xi reiterated the country’s unwavering support for private enterprises, acknowledged challenges, and unveiled new government measures. Held at this moment, the symposium further helped counter skepticism about the vitality of China's private sector or the country's commitment to supporting private enterprises and reassure private entrepreneurs of an even more promising future.
Attendees of the meeting include Ren Zhengfei (Huawei), Jack Ma (Alibaba), Pony Ma (Tencent), Zeng Yuqun (CATL), Wang Chuanfu (BYD), Liang Wenfeng (DeepSeek), Wang Xingxing (Unitree Robotics), Lei Jun (Xiaomi), Yu Renrong (Will Semiconductor), Leng Youbin (Feihe), and Liu Yonghao (New Hope Group).
"Ne Zha 2" becomes highest-grossing animated movie of all time
"Ne Zha 2" has dethroned Disney's 2024 picture "Inside Out 2" to become the highest-grossing animated movie of all time globally. As of Friday morning, the film's worldwide earnings, including presales, amounted to 17.8 billion U.S. dollars. It comes just about three weeks after its release on Jan. 29 during the Chinese New Year holiday. The movie has moved to the 8th place on the list of the all-time global box office.
Analysts said the success has not only boosted the confidence of creators but also showcased the resilience and immense growth potential of the Chinese market.
Largely driven by "Ne Zha 2," China's box office revenue during the 2025 Spring Festival holiday hit a record high, injecting much-needed optimism into the country's film industry, which saw earnings fall by 23% in 2024 compared to 2023, and by 34% from the pre-pandemic peak in 2019.
⭐Opening Doors Wider for Foreign Investment
Action plan to attract foreign investment
China on Wednesday issued an action plan to attract foreign investment in 2025. New policy measures include:
-- Supporting pilot regions in effectively implementing opening-up policies in value-added telecommunication, biotechnology and wholly foreign-owned hospitals
-- Expanding pilot programs to open up fields such as telecommunication and medical services in a timely manner
-- Opening the services industry further and promoting the orderly opening-up of the biomedical sector
-- Encouraging foreign equity investment in the country's listed companies
-- Lifting restrictions on domestic loans for foreign-invested enterprises and allowing these firms to use domestic financing for equity investments
-- Encouraging investment in animal husbandry-related fields such as breeding, feeding equipment production and production of feed and veterinary medicine
-- Supporting foreign enterprises to participate in China's new industrialization, with a focus on high-tech fields, and in services sectors such as elderly care, culture and tourism, sports, health care, vocational education, and finance
-- Ensuring products produced by enterprises of different ownership within China participate equally in government procurement activities
In 2024, 59,080 new foreign-invested enterprises were established in China, up 9.9% year on year. China attracted overseas investment of about 140 billion U.S. dollars each year from 2021 to 2023.
Vice premier encourages Japanese companies to invest in China
Chinese Vice Premier He Lifeng said on Monday that the country promotes high-level opening-up and encourages Japanese companies to invest and develop in China in a meeting in Beijing with a Japanese business delegation visiting China. He urged the Japanese business community to play a positive role in the win-win cooperation between the two countries.
Chairman of the Japan Business Federation Masakazu Tokura, Chairman of Japan-China Economic Association Kosei Shindo, and Chairman of the Japan Chamber of Commerce and Industry Ken Kobayashi attended the meeting.
⭐Policy Moves Much Talked About
Commerce minister highlights cooperation potential in Chinese, European auto industries
Chinese Commerce Minister Wang Wentao has said that auto industries in China and Europe have solid foundations and great potential for cooperation.
Wang said China welcomes European car manufacturers to increase investments and deepen their presence in the Chinese market during a video call with Ola Kallenius, president of the European Automobile Manufacturers' Association and chairman of the board of management of Mercedes-Benz Group AG.
A proper settlement of the European Union's anti-subsidy case against Chinese electric vehicles aligns with the interests of both China and Europe, as well as the broader expectations of the industry, he said.
The ministry has urged the EU to take concrete action to work with China and meet halfway on the anti-subsidy case against Chinese electric vehicles.
Noting that this year marks the 50th anniversary of China-EU diplomatic relations, the ministry said that China is willing to work with the EU to expand cooperation on green industries, including the electric vehicle industry, and to address trade frictions through dialogue and consultation.
⭐Key Macroeconomic Indicators
China's NEV sales surge in Jan.
China's new energy vehicle sector continued to boom in January, with production surging 29% year on year to 1.02 million units in January and sales up by 29.4% year on year to 944,000 units, according to the China Association of Automobile Manufacturers. Meanwhile, China's auto exports rose 6.1% year on year last month, totaling 470,000 units in January.
Property market continues to warm up
In the country's four first-tier Chinese cities, namely Beijing, Shanghai, Guangzhou and Shenzhen, prices of new and second-hand homes both went up by 0.1% from the previous month, data from the National Bureau of Statistics showed Wednesday.
New home prices in second-tier cities recorded their first monthly increase since June 2023, rising by 0.1%. Prices of second-hand homes dipped by 0.3%.Among 70 large and medium-sized cities, 24 reported month-on-month increases in new home prices, while seven saw gains in second-hand home prices.
LPRs remain unchanged
China's one-year loan prime rate (LPR), a market-based benchmark lending rate, was 3.1% on Thursday, unchanged from the previous month.
The over-five-year LPR, on which many lenders base their mortgage rates, also remained unchanged from the previous reading of 3.6%, according to the National Interbank Funding Center.
