S&P Global Services PMI of China Hits 12-Month High in July<\/h3>\n
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China\u2019s services sector gathered pace in July, with the S&P Global Services PMI climbing to 52.6 from June\u2019s 50.6\u2014its fastest expansion in over a year and marking the 31st consecutive month in growth territory.<\/p>\n
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Surveyed firms widely reported that new business drove the mid-year acceleration, with order growth the strongest in more than a year. External demand also turned positive for the first time in three months, as increased tourism activity and more stable trade conditions pushed new export orders to their fastest growth rate since February.<\/p>\n
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The latest data also showed sales prices rising in July\u2014an indicator of renewed confidence, as companies, for the first time in six months, were able to pass higher costs on to customers.<\/p>\n
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Overall, the services sector\u2019s robust performance contrasted with the slowdown in manufacturing, underscoring the economy\u2019s reliance on consumer-facing and service-oriented industries in the second half.<\/p>\n
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\u201cGrowth in the services economy accelerated as we entered the second half of the year,\u201d said Jingyi Pan, Associate Director of Economics at S&P Global Market Intelligence. \u201cBetter demand conditions have supported the latest round of activity gains.\u201d<\/p>\n
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Li Auto\u2019s Crash Test Gambit Backfires, Pulling an Unwilling Rival Into the Spotlight<\/h3>\n
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When Li Auto debuted its flagship i8 on July 29, it sought to make a statement \u2014 literally. A slickly produced video showed a 2.6-ton i8 slamming head-on into an 8-ton Dongfeng Liuzhou Chenglong truck. The truck\u2019s cab separated from its cargo bed and crumpled over the i8\u2019s windshield, while the EV\u2019s passenger cell emerged unscathed. The visual was as arresting as it was controversial.<\/p>\n
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Dongfeng Liuzhou wasted no time firing back. On July 31, it accused Li Auto of staging \u201ccustomized collision conditions\u201d \u2014 a deliberately engineered, non-standard crash scenario \u2014 that bore little resemblance to conventional safety tests. The result, it warned, not only tarnished its brand image but also risked misleading the public and creating safety misconceptions.<\/p>\n
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The China Automotive Engineering Research Institute (CAERI), which carried out the test, confirmed on August 3 that it was indeed a non-standard, vehicle-to-vehicle experiment intended solely to validate the i8\u2019s safety design. Crucially, it was never meant to evaluate the Chenglong truck or any other brand. That nuance, however, had been omitted from the rollout \u2014 leaving social media to fill in the blanks with suspicion and speculation.<\/p>\n
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The fallout was swift. Netizens questioned Li Auto\u2019s motives for singling out a Chenglong truck, while Dongfeng Liuzhou found itself an unwilling co-star in a PR drama, facing questions from drivers and long-time customers. In the end, the reputational bruising was mutual.<\/p>\n
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By August 6, the three parties \u2014 Li Auto, CAERI, and Dongfeng Liuzhou \u2014 closed ranks with a rare joint statement, calling on China\u2019s auto industry to practice strict self-discipline, uphold transparency in R&D and testing, and steer clear of marketing that strays into disparagement.<\/p>\n
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Freshhippo\u2019s Costco Fantasy Meets a Cold Reality<\/h2>\n
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On August 31, Shanghai\u2019s last Freshhippo X Membership Store will close for good\u2014discreetly ending what was once pitched as the company\u2019s \u201csecond growth curve\u201d and audacious attempt to challenge Costco and Sam\u2018s Club.<\/p>\n
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Launched in 2020 with the curious ambition to blend Sam\u2019s Club-style exclusivity with bargain-bin pricing, Freshhippo somehow succeeded in pleasing neither side. Affluent shoppers found little worth paying extra for, while bargain hunters found little worth leaving the couch for. The rollout began with fanfare\u2014Shanghai\u2019s first X store, a swift leap into Beijing in mid-2021, and a breakneck opening spree of four more locations in just over a month between December 2021 and January 2022. By October 2023, the brand had 10 stores across four cities.<\/p>\n
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But the math was merciless. High rents, high overheads, and low repeat visits turned the concept into a slow bleed. The most symbolic casualty? The Jianguo Road store in Beijing\u2014prime real estate, stratospheric rent, lackluster sales\u2014dead in a six-month flat.<\/p>\n