Group 1 - The event "2025 Yangtze River Delta (Jiaxing) Cooperation and Exchange with the Middle East" aims to enhance economic and trade exchanges between Zhejiang and Middle Eastern countries, injecting new momentum into their cooperation [1] - In 2024, the trade volume between Zhejiang and Middle Eastern countries reached 83.1 billion USD, accounting for 18.45% of China's total trade with the region, maintaining the top position nationally [1] - From January to June 2025, the trade volume reached 43.4 billion USD, showing a year-on-year growth of 4.3%, with the national share increasing to 18.99% [1] Group 2 - Zhejiang enterprises have cumulatively invested over 100 billion CNY in the Middle East, with notable projects including a 10GW battery and component project by Jinko Solar in Saudi Arabia, and a 1,800MW solar power project by Chint Group in the UAE [2] - The Zhejiang Provincial Council for the Promotion of International Trade has established 104 local branches and has built friendly cooperative relationships with 190 business associations in 85 countries and regions [2] - Jordan's ambassador to China expressed the potential for cooperation in energy and information technology, highlighting that China is now Jordan's second-largest trading partner [2] Group 3 - The establishment of the "Jiaxing Enterprises Going Global New Silk Road (Middle East) Service Alliance" and the launch of the Haining Chaolai Cross-Border Trade Center aim to support enterprises in their international trade efforts [3] - Five foreign trade projects were signed on-site, totaling 105 million USD, covering various sectors including photovoltaic manufacturing, textiles, and organic agriculture [3]

Economic Outlook - The report from the Bank of China Research Institute highlights that despite improvements in China's ability to handle internal and external risks, the economy still faces significant uncertainties and instabilities in the second half of the year [1] Consumer Growth - The main support for consumer growth in the second half is expected to come from effective policy measures and the release of service consumption potential [2] - From 2013 to 2024, per capita service consumption expenditure in China is projected to increase from 50,000 yuan to 130,000 yuan, driven by rising living standards and demographic changes [3] - However, the automotive sector, which has a significant share in consumption, is facing pressure due to a wave of price cuts from major brands, potentially dampening consumer sentiment [4] Real Estate Investment - The government is expected to introduce more supportive policies for the real estate market to stabilize expectations and activate demand [5] - Despite these efforts, the report indicates that the willingness and ability of real estate companies to expand investment remain limited, with a projected year-on-year decline in real estate development investment of approximately 10.8% [7] Export Trends - The demand from emerging economies is anticipated to support China's exports, with the share of exports to Belt and Road Initiative countries increasing from 26.9% in 2015 to 50.1% in 2025 [8] - However, challenges such as slowing global economic growth and high tariffs from the U.S. may lead to a potential decline in export growth [8] Price Levels - The core Consumer Price Index (CPI) is expected to remain low, with a projected year-on-year decline of 0.2% in the third quarter and an annual increase of only 0.1% [9] - The Producer Price Index (PPI) is also forecasted to decline by 2.5% in the third quarter and 2.4% for the year, reflecting weak demand in traditional sectors [9][10] Overall Economic Growth - The report anticipates that overall economic growth in the second half will be lower than in the first half, with GDP growth projected at 5% and 4.6% for the third and fourth quarters, respectively, leading to an annual growth rate of around 5% [10]

Core Insights - Zhejiang province is enhancing its economic cooperation with the Middle East, particularly in infrastructure, energy transition, and digital innovation, leveraging strategic complementarities [1][2] - In 2024, the trade volume between Zhejiang and Middle Eastern countries is projected to reach $83.1 billion, with Saudi Arabia, UAE, and Turkey accounting for over 60% of this trade [1] - The Middle East is becoming a significant market for Zhejiang enterprises, driven by its unique advantages such as energy transition, infrastructure development, a youthful population, and emerging market openness [2] Trade and Economic Cooperation - Zhejiang's trade with the UAE has seen substantial growth, with the province being the largest contributor to China's trade with the UAE [2] - The UAE is promoting a favorable business environment with incentives like no minimum investment, no personal income tax, and low tariffs to attract foreign investment [2] - Trade relations between Zhejiang and Turkey are also expanding, with potential collaboration in fintech, digital platforms, and clean technology [2] Investment Opportunities - Saudi Arabia is driving investments in infrastructure, renewable energy, water resources, mining, and manufacturing, creating unprecedented opportunities for Chinese enterprises [4] - The Saudi Vision 2030 plan aims to enhance governance, economic prosperity, and social vitality, encouraging digitalization and economic diversification [4] - Over 150 Chinese enterprises are currently engaged in trade cooperation in Saudi Arabia, with a focus on engineering, logistics, and e-commerce [6] Service Alliance - The "Zhejiang Going Global" service alliance has been established to support Zhejiang enterprises in international markets by providing a platform for information sharing and resource integration [6] - The alliance includes 30 member organizations from various sectors, aiming to offer comprehensive and diversified support for businesses venturing abroad [6]