China Technology_ CBO - China Brief Overnight - 2_6_2025

Summary of Key Points from the Conference Call Industry Overview - Industry: Technology and Express Delivery in China - Date: February 6, 2025 Core Insights 1. Government Initiatives: Premier Li Qiang emphasized the need for enhanced coordination between markets and policies, aiming to promote scientific and technological innovation and increase counter-cyclical adjustments [5][4][1] 2. Express Delivery Performance: During the Spring Festival holiday, China's express delivery sector processed 1.9 billion packages, with a 31% increase in package collection and a 26.7% increase in shipments year-over-year [5][4][1] 3. DeepSeek's Growth: DeepSeek's daily active users (DAUs) exceeded 20 million within 21 days of its official launch, positioning it competitively against ChatGPT and ByteDance's Doubao [5][8][1] Company-Specific Developments 1. Temu and Shein Retailers: These retailers are required to pay an additional 30% of the retail value of goods as a deposit, which will be adjusted based on actual tax charges from U.S. tariffs, raising concerns about potential logistical delays [4][6][1] 2. BYD's Strategic Moves: BYD plans to hold an intelligence strategy conference on February 10 to discuss updates on smart driving capabilities and aims to hire 20,000 employees in Zhengzhou in Q1 [5][8][1] 3. Xiaomi's Sales Target: Xiaomi has set a target to sell 10,000 units of its luxury EV SU7 Ultra in 2025 [5][8][1] 4. XPeng's Autonomous Driving Ambitions: XPeng's CEO expressed confidence that the company could achieve Level 3 autonomous driving across all scenarios by the second half of 2025, with plans to expand its EV offerings [5][8][1] 5. JD.com's Acquisition Interest: JD.com has reportedly renewed interest in acquiring Germany's electronics retailer Ceconomy AG, although details remain unconfirmed [5][8][1] Additional Noteworthy Information - Macau Travel Statistics: Macau saw a 0.6% year-over-year increase in total inbound and outbound travelers during the Spring Festival, totaling 4.91 million [5][4][1] - Market Context: The report highlights the ongoing challenges and opportunities within the Chinese technology sector, particularly in light of government policies and market dynamics [5][4][1]