The Caixin China General Services Business Activity Index shows that expansion in China’s services industries slowed in July. The dip was quite substantial, and business confidence outlook for the next year has fallen to its weakest level in nearly three years. Overall figures fell from 53.9 in June to 52.8. This is the lowest reading since March, but at least it remains above the 50-marker, which separates expansion from contraction.
Royal Caribbean International Strong Performance
Royal Caribbean Cruises says that its subsidiary, Royal Caribbean International, performed very well in China during Q2 2018. Chief Financial Officer Jason Liberty states the market is booked “nicely ahead” in volume and rate for the rest of 2018 and into next year. A great deal of this progress has been due to improved relationships with travel agents. Though it is still early, the company has a positive outlook on its successes in 2019 and beyond.
Heineken-China Resources Deal
喜力 – 华润啤酒达成交易
Dutch brewing giant Heineken NV has announced that it will give China’s biggest brewer, China Resources Beer, exclusive rights to use its Heineken brand in mainland China. This deal is worth US$3.1 billion. China Resources Beer makes Snow Beer, which currently has about 20% of China’s domestic urban market and is the nation’s most popular brand. “With Heineken’s long heritage and world-class iconic brand portfolio, along with our leading presence and deep understanding of China, we believe we can win together in this new era of the Chinese beer market,” comments China Resources Enterprise Chair Chen Lang.
荷兰酿酒巨头喜力（Heineken NV）宣布将向中国最大的酿酒商华润啤酒（China Resources Beer）提供在中国大陆使用其喜力啤酒品牌的独家权利。这笔交易价值31亿美元。华润啤酒生产的雪花啤酒目前占中国国内城市市场的20％左右，是全国最受欢迎的品牌。“凭借喜力悠久的传统和世界级的标志性品牌组合，以及我们在中国的领先地位和深刻理解，我们相信我们可以在这个中国啤酒市场的新时代共同赢得，” 华润创业董事长陈朗评论道。
Google Compliant with China Censorship
Google is reportedly working on creating a censorship-compliant search engine for China. The company has been working on this project since mid-2017 but has not yet publicly commented on it. The search engine will automatically filter out sites that are blocked by China’s Great Firewall. Google has not offered search services in China since it exited the country in 2010, but the company is eager to tap into the huge market base.
Africa BRI Cooperation
Chinese President Xi Jinping recently returned from a trip to Africa that was based on creating partnerships. The two sides discussed the Belt and Road Initiative (BRI) and signed billions of dollars’ worth of deals that highlighted mutual benefits and promoted an agenda of development. Africa admires the rise in power and influence that China has experienced over the past few decades, and hopes to replicate a similar development model to createa prosperous future for its own citizens. Participating in the BRI can be a first step to do so, as by putting power stations, ports, roads and railways in place, the initiative can provide the networks necessary for large-scale production and the flow of goods.