China Inc by BBW

Involution in China consumer market sparks new ‘Races to the bottom’

"This seems like involution taken to a new level, as it's one of the first cases we've seen of a company taking a major step that's almost certain to undermine itself."  – Doug Young
Toymaker Bloks is racing to the bottom of the Chinese toy barrel with its blind box Transformer toys costing just 10 yuan each. Can it make a profit on such low-priced toys?
And KFC has rolled out a new line of pizzas in China also priced quite low, as little as 23 yuan. Does it risk cannibalizing business from sister brand Pizza Hut?
 
 

Beijing and Washington squeeze fading market for Chinese IPOs in U.S.

China's securities regulator is clamping down on offshore corporate registrations and VIE structures by Chinese companies listing in the U.S. and Hong Kong. What does this mean for the companies and their investors? And U.S. politicians are clamping down on "pump-and-dump" Chinese IPOs on Wall Street by going after their boutique investment banks. Will this solve the problem?

China cultivates ‘joy economy’ with new focus on contentment

After years of downplaying the importance of its citizens' emotional well-being, China is showing new interest in the so-called "emotional economy," including a "joy economy" segment where people find small pleasures in things like a cup of bubble tea or a Labubu collectible toy. What's driving Beijing's greater emphasis on this part of the economy now, and is this a new long-term focus?

Brewing consolidation and drilling for growth: China’s coffee and dental sectors face new realities

The controlling stakeholder of Luckin Coffee has purchased the smaller, more upscale Blue Bottle Coffee brand for $400 million. Is a big expansion in the cards for Blue Bottle in China? And dental materials maker Huge Dental has filed to list in Hong Kong. Will it be able to attract investors with its flat-lining revenue growth, especially as stock buyers flock to sexier high-tech companies?

China’s franchising boom cooks up new giants, leaves mid-tier Western chains behind

China's Mixue has overtaken McDonald's as the world's largest F&B chain with 45,000 shops. Is the franchising model behind its growth sustainable? And the owner of the franchisee for the Papa John's and Dairy Queen chains in China is putting the company on the block. Is there a place in China for this type of mid-tier Western chain?

Survival and protectionism: Dingdong surrenders to Meituan as India blocks a Chinese buyout

Dingdong is abandoning its online grocery cart with a deal to sell its China business to Meituan for $717 million. What's driving its decision? And India has killed a Chinese private equity firm's plan to acquire a European laminations company with an Indian operation. Is geopolitics at play?

Alibaba bets on AI chips, as LVMH exits China duty free

Key Takeaways:
Alibaba plans to spin off its T-Head unit for a separate listing amid high market valuations for AI chip makers
LVMH is handing over its Greater China duty-free operations to a state-owned enterprise as the sector struggles with declining financials
Today we examine two major strategic shifts involving global giants navigating the complex Chinese market. On one hand, we have a push by Alibaba (BABA.US) into the overheated semiconductor sector. Will it be valued as high as China's other AI chip makers? And on the other, a strategic retreat by LVMH (MC.PA) from the Chinese retail travel space. Is this a retreat for LVMH, or is it a strategic reshuffling?

Chinese firms resume global dealmaking, as a top lender stalls

TCL is taking over Sony's home entertainment brand, while Anta has become Puma's largest shareholder. Is this the start of a new wave of Chinese acquisitions of foreign brands? And China Merchants Bank has reported near-zero profit growth for 2025. What does this leading commercial bank's lack of growth say about the Chinese economy?

Empty towers and full plates: China’s office glut and its dumpling king

China's office market is hugely overbuilt, and yet developers keep buildling. What's ahead for this market? And China's dumpling king, Yuen Kee, is gearing up to list in Hong Kong. Will investor bite, especially in the current slowing consumer market?

China prunes export incentives, as BYD takes global NEV crown

China has reduced or killed tax rebates for solar product and EV battery makers. What's driving the decision? And BYD takes the global NEV crown from Tesla. What's behind BYD's success?