Five things that happened in China this week

Manyika Kangai

China ramps up green transition

China has launched guidelines to accelerate its green transition across all areas of economic and social development. The guidelines were issued by the National Development and Reform Commission (NDRC). They provide a roadmap for China to achieve progress in its green transition by 2030. The country aims to have established a green, low-carbon and circular economy by 2035. Key goals include increasing non-fossil energy to 25 percent of total consumption by 2030 as well as expanding the energy conservation industry to 15 trillion yuan (about US$2,1 trillion). Expanding government procurement of green products and promoting trade-in programs for new energy vehicles and green home appliances, especially in rural areas are some of the strategies adopted by China.

China-Africa trade

Trade between China and Africa rose 5,5 percent year-on-year to 1,19 trillion yuan (about US$166,6 billion) between January and July. This is according to official data released by the General Administration of Customs. During that period China’s exports to Africa were 697, 93 billion yuan (about US$97,65 billion) while imports reached 490, 89 billion yuan (about US$68, 83 billion). Trade in intermediate goods between China and Africa grew 6.4 percent year-on-year, accounting for 68 percent of the total value of bilateral trade. Intermediate goods are goods used in the production of other products. China has been Africa’s largest trading partner for 15 consecutive years. The 2024 Summit of the Forum on China-Africa Cooperation (FOCAC) will be held in Beijing from September 4 to 6 under the theme, “Joining Hands to Advance Modernization and Build a High-Level China-Africa Community with a Shared Future”.

China’s Yuan loans

China’s yuan-denominated loans rose by 13,53 trillion yuan (about US$1, 89 trillion) in the first seven months of the year, according to data released by China’s central bank. The M2, a broad measure of money supply that covers cash in circulation and all deposits, increased 6.3 percent year-on-year to 303, 31 trillion yuan (about US$42,37 trillion) at the end of July. Social financing was 18, 87 trillion yuan (about US$2,64 trillion), a decrease of 3.22 trillion yuan (about US$450 billion) compared to the same period last year. Loans extended to the real economy increased by 12, 38 trillion yuan (about US$1, 73 trillion). Outstanding yuan loans totalled 251, 11 trillion yuan (about US$35 trillion) at the end of July, an increase of 8,7 percent year-on-year.

China’s courier Sector

China’s courier sector saw its delivery volume this year exceed 100 billion parcels on Tuesday, reaching the mark 71 days earlier than in 2023, according to the State Post Bureau (SPB). This equates to an average of 71, 43 packages per person in China, or 5,144 packages delivered every second. The highest single-day delivery volume exceeded 580 million parcels and the average monthly volume surpassed 13 billion parcels. The sector’s monthly revenue topped 100 billion yuan (about US$14 billion). China’s logistics network has 234 000 delivery points nationwide and over 95 percent of villages are covered by express delivery services. In some cities, drones can deliver packages in about 10 minutes, while autonomous delivery vehicles also significantly reduce delivery time. China has led the world in express delivery volume for 10 consecutive years.

China’s autonomous driving industry

China’s autonomous driving industry is rapidly advancing toward large-scale commercial use, driven by technological breakthroughs, supportive regulations and robust investor interest. Pony.ai, a leading player in the field has launched nearly 100 robotaxis in a designated 160 square-kilometre zone in Beijing E-Town, making paid services available to the public. With around 250 robotaxis now operating across Beijing, Shanghai, Guangzhou, and Shenzhen, Pony.ai is partnering with Japanese automaker Toyota to deploy next-generation vehicles on a large scale.

Manyika Kangai is a China-Africa Advisor who has over 18 years of experience facilitating and advising African businesses and governments on China-Africa trade and investment deals.