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… Innovation is slow.
Take a blacksmithing company. They will focus solely on perfecting blacksmithing. They won’t consider entering other fields. That mindset is particularly entrenched in Europe. And if Trump keeps undermining universities and intellectuals, then the next wave of engine electrification might very well start in China.
China has advantages: money, centralized coordination, a massive domestic market, and a mature, low-cost aerospace supply chain. As with EVs, if government support continues, we have the foundation and opportunity to leap ahead and export both products and standards.
<h3>36Kr: Where does China currently stand in global engine competitiveness?</h3>
XK: Everyone has their strengths. We may not match others on raw technical specs. But in terms of delivery capacity and operational execution, we may be stronger.
It’s like this: Americans write great PowerPoint decks. Chinese firms are better at turning those decks into working products. That’s the difference.
<h3>36Kr: For Chinese engine makers to go global, what should they focus on?</h3>
XK: First, engines can’t go overseas alone. They have to be bundled with aircraft. You only get traction when the end product goes global.
Second, you need airworthiness certifications. The Federal Aviation Administration and EASA have strict management protocols. If you want to compete globally, you must understand and respect those rules. Certification isn’t just about time, but also about systematic discipline.
Right now, many Chinese drone makers are thriving in underdeveloped areas of Asia, Africa, and Latin America where infrastructure is weak. There’s huge growth potential abroad. If you want to build a large company, you must go global. But it has to be market-driven, not policy-forced.
<h3>36Kr: What’s the current level of hype in the engine space?</h3>
XK: Very high. Compared to when Falcon started, the competition is now ten times more intense.
<h3>36Kr: Building aircraft and engines involves high barriers. What kind of founders can succeed in this space?</h3>
XK: The bar is extremely high. Most founders today are former chief engineers from within the system. This space isn’t for just anyone. You need deep resource integration skills, strong project relationships, and significant funding. A small team with just some tech won’t make it. There are plenty of cautionary tales.
Plus, this work is grueling. It often comes at the cost of your health. Many top engineers spend a month or more in remote test sites. This isn’t a glamorous gig where you fly around smoking cigars and pitching investors. Founders who don’t get their hands dirty are doomed to fail.
<h3>36Kr: How many startups do you think this market can ultimately support?</h3>
XK: The primary player will always be AECC. Startups will fight for the remaining share. I think four or five companies can survive. It really depends on how large the market becomes.
To make it, your company must be market-oriented and airworthiness-driven. Again: cheap and safe. If you can do both, you’ll live.
<h3>36Kr: What else do private engine companies need to thrive?</h3>
XK: Policy and funding support help. But more than anything, we need patience from the market.
Real support means trust. Give companies the freedom to compete. Let the market decide who wins and loses. That’s the healthiest ecosystem.
<h3>36Kr: Falcon is now in its fifth year. Looking back, would you have done anything differently?</h3>
XK: I don’t think so. Everyone pays the price for their own perspective.
What we’re doing now may not be entirely right. Only when we’re consistently delivering thousands of engines per year can I say with certainty that we’ve found the right path. But from day one, our team has always been risk-aware.
<h3>36Kr: Any advice for aspiring founders?</h3>
XK: If you don’t have enough capital and capability, don’t enter this field. It’s brutal. Just having some market insight isn’t enough. This isn’t a casual bet. It is a life-altering gamble. If success were easy, we’d all be billionaires by now.
<h3>36Kr: What do you want Falcon to be known for? What kind of company are you building?</h3>
XK: Airworthy, low-cost, and domestically controlled.
Our vision is to advance China’s low-altitude aviation sector with domestically produced, airworthy, and cost-effective engines, and to put private Chinese engine firms on the global map.
<h3>36Kr: What’s next on your agenda?</h3>
XK: In the short term: expand the D-series market share, and ramp up G-series deliveries. Ensure stable operations at the Changsha facility and accelerate MRO center readiness. On the market side, we’ll break reliance on imports, grow our domestic footprint, and boost our global share and influence.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3348775476730754">article</a> was written by Liu Jingqiong and A Zhi for 36Kr.

Falcon Aviation eyes liftoff with low-cost, airworthy aircraft engines

Transportation

Mobility

China

… APLA (Asia Pacific and Latin America). Inventory levels showed improvement as well, with Nike reducing its lineup of legacy footwear by over 20% for the year and more than 30% in Q4. In Greater China, inventory dropped 11% compared to the previous year.
Nike aims to clear remaining excess inventory through select channels over the next two quarters, with a goal of restoring full channel health by the first half of fiscal 2026.
<h3>Targeting new segments and emotional engagement</h3>
Nike is investing in emerging growth areas too. Industry observers widely agree that women, children, and outdoor activities remain rare pockets of untapped potential for sportswear brands. The Breaking4 represents Nike’s latest bid to claim leadership in the women’s category.
Historically, women’s distance running has lagged in commercial interest and investment. With this initiative, Nike has placed a world-class female athlete at the center of both its brand storytelling and product innovation, unlocking momentum in a category with vast potential.
In April, Nike also launched the global women’s night run series, the “After Dark Tour,” in Shanghai. Over 3,500 women took part, turning the night into a celebration of performance and empowerment.
Nike continued to build a female-focused narrative during Shanghai Fashion Week in April with the “Victory Lap,” a runway event where athletes, designers, and emerging idols reinterpreted sport through a female lens, fusing function with fashion.
The brand also brought Sabrina Ionescu to China for the first time, where her personal story reportedly resonated with younger female fans. This year, Nike’s women’s basketball business grew by more than 50%.
At the same time, Nike is also tapping into youth culture in China, where emotional resonance often guides purchasing decisions. This quarter, a collaboration with Lego introduced a co-branded collection and interactive retail elements. During the 618 shopping festival, Nike Kids led Tmall’s children’s sneaker and sports categories.
Even before the earnings release, analysts had highlighted Nike’s strong appeal among younger consumers as a potential sign of recovery.
In addition to its focus on women and children, Nike is capitalizing on the growing interest in outdoor apparel. The company recently became the title sponsor of the Chongli 168 Ultra Trail and launched a Nike ACG (All Conditions Gear) training camp to offer runners technical guidance and immersive experiences. The ACG line is gaining traction both globally and in China.
As Nike expands beyond its traditional core, its long-term approach—grounded in innovation, storytelling, and local investment—is paving new paths for growth.
And if the current trajectory holds, Nike may once again defy its doubters. Its legacy, and its spirit of pushing limits, remains central to its strategy. Just as Breaking4 reminds us: dare to dream, no matter how distant the goal.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3363107679471366">article</a> was written by 36Kr Brand.

Nike rallies behind “Sport Offense” strategy after surprise fiscal year showing

Retail

Consumer Economy

… to positive reviews. Within a month, rival brand Aukey released a nearly identical product.
Price competition has since intensified too. Romoss’s 20,000-milliampere-hour, 22.5-watt fast-charging model, which retailed for RMB 129–149 (USD 18.1–20.9) in 2021, dropped to just RMB 69 (USD 9.7) by the end of 2024.
In this race, manufacturers are moving faster than battery technology can safely support. The risk of unstable lithium cells lies just beneath the surface.
“The industry is just too competitive right now. Everyone wants higher power, faster charging, and sleeker designs. But when every parameter is pushed to the limit, failure becomes inevitable,” one insider told 36Kr.
This situation isn’t limited to power banks. According to BusinessPoint, an industrial research firm, China was home to 480,000 mobile accessory companies as of 2024, many offering only minor variations of existing products.
The path forward is well known but difficult: increase R&amp;D investment and target higher-value, technically complex markets. In 2024, Anker and Ugreen spent 8.5% and 4.9% of their revenue on R&amp;D, respectively, and both are increasing that share. These efforts have allowed them to carve out pricing power even in a crowded field. Anker, for instance, is expanding into 3D printing and robotic lawn mowers.
China remains the global hub for 3C electronics manufacturing. But with performance capabilities outstripping actual demand, the industry must find smarter ways to absorb its own output. Without that shift, the cycle of price wars and cascading failures is bound to repeat.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3367635580241920">article</a> was written by Leslie Zhang for 36Kr.
Note: In our initial report, the supplier linked to the battery issue behind Anker’s recent recall was identified as Amprius. A subsequent update, provided by a third party on behalf of Amprius, clarified that the supplier in question is Apex, a battery manufacturer registered in Wuxi. Apex was formerly a subsidiary of Amprius but was spun off in 2022. It is not affiliated with Amprius Technologies, a separate entity also spun off from Amprius in the same year. This article has been updated to reflect the correction.
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China’s power bank crisis: Romoss collapse exposes industry fault lines

East Asia

Deep Tech

Batteries

Energy

… consumer demand," wrote Armand Meyer and Agatha Kratz from Rhodium Group.
After ratcheting up tariffs on all Chinese goods to as high as 145% in April, the US slashed the rate the following month to 30% for 90 days amid ongoing negotiations with China. That is still significantly higher than existing levies on most other countries, which are subject to 10% duties.
At an exhibition organized by the Indonesian Petroleum Association, Kevin Jiang, a manager from Tianjin Victory Oilfield Equipment Manufacturing told Nikkei that the company is actively seeking to reduce reliance on US demand that makes up half of its buyers.
"Trump's tariff policy has forced the company to look for potential new markets," Jiang said. "Indonesia with its potential natural resources is a promising market for the company."
Rene De Jong, owner of Resysta AV, an outdoor furniture maker, said he does not expect Trump to roll back existing tariffs on China. With factories in Guangdong as well as in Indonesia, he said he is aiming to triple production in Indonesia over time due to the tariff uncertainty.
"Everybody will step into the China-plus-one strategy. That's more valid than ever," he said, "If he [Trump] cancels tariffs tomorrow, do you think people trust him?"
GoldenHome, one of China's biggest kitchen cabinet makers, set up a manufacturing site in Samut Prakan in central Thailand in 2019 in large part to skirt punishing duties imposed on Chinese goods by the US government. The majority of the components, from door panels to hinges and drawer glides, are produced in Thailand rather than sourcing from China, according to Pan Xiaozhen, the company's CEO.
The company unveiled a flagship store in Malaysia last month in part to serve growing demand in the region, Pan said. It has paused further plans to expand in the US after opening its first assembly line in Cedar Hill, Texas in March, he added.
"We may shift more capacity to Malaysia if the country gets relatively lower tariffs from the US," he said.
But not everyone is so gung-ho about Southeast Asia, despite Trump's tariffs.
Gong from Yiwu Sihai Christmas Crafts said he's not looking to relocate production to Vietnam or other countries in large part because overall costs in China remain competitive. While labor is typically cheaper in Southeast Asia, other hurdles remain.
"It's hard to manage local workers. We heard they often refuse to work overtime. Plus, Chinese capital isn't necessarily welcome in many parts of the world," he said.
In Manila, Dee Xie, who sources smartphone accessories like headphones and sells to consumers in the Philippines and Indonesia, said his trading company's profit margin had dropped to less than 20%, nearly half what it was when he first entered the market in 2017.
Production in China remains far more efficient than elsewhere, despite the tariff uncertainty, he added. Most of the components are still supplied by Chinese firms even if the final assembly is done elsewhere.
"Nowhere else can beat the quality of goods made in China," Xie said. "As more Chinese competitors are coming over, we have to distinguish ourselves to survive."
This article first appeared on <a href="https://asia.nikkei.com/Spotlight/ASEAN-Money/Trump-tariffs-shine-spotlight-on-Chinese-targeting-Southeast-Asian-consumers">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

Trump tariffs shine spotlight on Chinese targeting Southeast Asian consumers

i2Cool’s new radiative powder could change how buildings handle heat

Sustainability

<blockquote>China Recap is a weekly roundup tracking Chinese companies expanding abroad, covering market entries, funding rounds, product launches, and global partnerships.</blockquote>
China’s corporate globalization strategy is evolving fast. Industry giants are rewriting the global playbook, while a new generation of companies charts fresh paths overseas.
China Recap tracks both—focusing on strategic expansion, brand building, and localized operations—to help readers make sense of shifting trends and understand how Chinese firms are reshaping their global approach.
Here’s what made headlines last week:
<h3>China’s mobility players widen global footprints</h3>
<ul>
<li><a href="/company/byd">BYD</a> is closing in on Honda and Mitsubishi in Southeast Asia, selling over 11,000 vehicles in April across Indonesia, Malaysia, Thailand, and the Philippines. Backed by price competitiveness, local infrastructure growth, and new factories, the Chinese <a href="/industry/ev">electric vehicle</a> maker has also surpassed Mazda and Nissan in regional sales. —<a href="https://asia.nikkei.com/Business/Automobiles/BYD-catching-up-to-Honda-Mitsubishi-in-Southeast-Asia">Nikkei Asia</a></li>
<li>JD Logistics has unveiled an autonomous electric van it says is designed to support Level 4 self-driving and offers 24 cubic meters of cargo space. Introduced at a transport expo on July 2, the new vehicle, along with expanded robot and drone fleets, marks <a href="/company/jd">JD’s</a> latest push to scale smart logistics across China.</li>
<li>BYD has produced its first passenger car at a new EV factory in Camacari, Brazil, 15 months after breaking ground. With an annual capacity planned at 150,000 units. BYD said the project will support 20,000 jobs and reinforce its supply chain in Latin America. —<a href="https://finance.sina.com.cn/nextauto/2025-07-02/doc-infczvks2741132.shtml?cre=tianyi&amp;mod=pchp&amp;loc=24&amp;r=0&amp;rfunc=5&amp;tj=cxvertical_pc_hp&amp;tr=12">Sina</a></li>
<li><a href="/company/nio">Nio</a> delivered 24,925 vehicles in June, up 17.5% year-on-year (YoY), contributing to 72,056 units in the second quarter of 2025, a 71.2% increase from Q1. First-half deliveries for the year rose 30.6% YoY to 114,150. Cumulative sales reached 785,714, including 725,248 from Nio, 52,623 from Onvo, and 7,843 from Firefly.</li>
<li><a href="/company/li-auto">Li Auto</a> delivered 36,279 vehicles in June, with Q2 deliveries reaching 111,074 and total cumulative deliveries topping 1.3 million. Celebrating its tenth anniversary, the company retained its lead in China’s high-end EV market and will expand its lineup with two new battery-powered electric SUVs launching by September.</li>
<li><a href="/company/xpeng">Xpeng Motors</a> delivered 34,611 vehicles in June, a 224% YoY increase and its eighth consecutive month above 30,000 units. Q2 deliveries reached a record 103,181, bringing H1 totals to 197,189, surpassing all of 2024. The company also launched its X9 model in Indonesia, with local production set to begin in July.</li>
</ul>
<h3>Alibaba Cloud expands Southeast Asia presence</h3>
Marking ten years in Southeast Asia, <a href="/company/alibaba">Alibaba Cloud</a> is launching new data centers in Malaysia and the Philippines and a global <a href="/industry/ai">artificial intelligence</a> center in Singapore. The expansion aims to meet rising regional demand for advanced cloud infrastructure and AI capabilities.
<h3>China Medical System plans SGX listing</h3>
China Medical System (CMS) has filed for a secondary listing on the Singapore Exchange via introduction, with no new share issuance planned. Pending exchange approval, the move aims to attract Southeast Asian capital and support the group’s regional expansion. CMS has secured regulatory clearance from the China Securities Regulatory Commission and runs its Southeast Asia and Middle East operations from Singapore.
<h3>Indonesia breaks ground on CATL project</h3>
Indonesia has broken ground on a USD 5.9 billion EV battery project backed by <a href="/company/catl">Contemporary Amperex Technology (CATL)</a>, Huayou Cobalt, and state-owned Antam. Spanning Halmahera and West Java, the project focuses on nickel processing and battery cell production. Non-governmental organizations including Greenpeace and Climate Rights International have warned of environmental risks near the Weda Bay industrial site. —<a href="https://www.scmp.com/news/asia/southeast-asia/article/3316287/indonesias-us59-bn-battery-project-sparks-environmental-concerns">SCMP</a>
<h3>Honor sees sales jump in Philippines launch</h3>
<a href="/company/honor">Honor’s</a> 400 series smartphones have surpassed one million global activations, marking the brand’s fastest milestone in three years. In the Philippines, launch-day sales rose 1,052% YoY compared to the Honor 200. The new models, released in May, feature Snapdragon chips and 7,200-milliampere-hour batteries. —<a href="https://www.ithome.com/0/864/528.htm">IT Zhijia</a>
That wraps up this edition of China Recap. If your company is expanding internationally, we’d love to hear about your latest milestones. <a href="mailto:changweiqian@global.36kr.com">Get in touch</a> to share your story.

China Recap | Mobility players widen global footprints

… 9.9 (USD 1.4). For a company that depends heavily on one product, that’s an ominous trend.
Still, low prices may erode consumer trust. Skepticism over ingredient quality could help IF Coconut Water maintain its appeal as a premium brand.
With its IPO complete, IFBH’s next test will be long-term growth: strengthening supply chains, broadening its product lineup, and closing strategic gaps. Only then can the company prove it has staying power in a crowded market.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3360520770160392">article</a> was written by Li Xiaoxia for 36Kr.

IFBH hits IPO milestone on the strength of a single product: Coconut water

Thailand

Hong Kong

Southeast Asia

China is rushing to tamp down fears of an abrupt end to its RMB 300 billion (USD 42 billion) subsidy program now that several cities have suspended or downsized their plans earlier than anticipated.
"Are some regions canceling 'national subsidies'? Not true," read a headline published by state news agency Xinhua on June 18 evening. The article assured readers that the program will continue, citing "interviews with relevant departments and officials across various regions."
Still, cities across the country have either partially suspended or adjusted their subsidy programs in June, raising questions about the sustainability of a program that has been credited with buoying weak consumption and countering deflationary pressure.
China rolled out subsidies last year to encourage consumers to trade in old cars and appliances for new ones. The program was then expanded to include outright purchases of a wide range of electronics including smartphones and laptops, and the government approved special bond issuances worth RMB 300 billion this year to fund it. The subsidies are implemented by municipalities.
On June 19, the southeastern city of Guangzhou stopped subsidies for home appliances and electronics, according to a notice on its portal. The nearby city of Foshan suspended subsidies for some items in early June and said they would resume on August 1. Chongqing, in western China, stopped providing subsidies for appliances and home equipment around the same time.
The northeastern city of Shenyang now only allows buyers to obtain subsidies from 9 a.m. to 12 p.m. Subsidies for cars, home appliances, smartphones and home equipment will be suspended on July 1, city officials said.
"The funding is running out a bit earlier than expected, as this batch is meant to last until the end of July," said Duncan Wrigley, chief China economist at Pantheon Macroeconomics.
Worries over the program's future escalated in recent days after merchants looking for a boost in sales during the 618 shopping festival began running exaggerated marketing campaigns. The numerals refer to June 18, the day e-commerce company JD.com was founded. But this year's campaign has run for over a month and was still ongoing as of June 19.
"Shanghai's subsidies will be over soon," read a social media post by a mattress seller in the city, urging shoppers to "grab the last wave of 618 benefits." Shanghai has not announced plans to suspend its subsidy program.
Overall, the subsidy policy is widely credited with boosting the consumption of items under its scope. Retail sales in May <a title="" href="https://asia.nikkei.com/Economy/China-consumption-beats-expectations-buoyed-by-trade-in-subsidies" target="_blank" rel="noopener">beat expectations</a>, growing 6.4% on the year, driven by a 53% surge in home appliances and a 33% jump in communication devices.
But recent reports of alleged misuse of the program have brought greater scrutiny over how it is carried out.
One practice under fire is the sale of <a title="" href="https://asia.nikkei.com/Business/Automobiles/Electric-vehicles/China-EV-war-turns-uglier-as-pricing-and-inventory-tactics-draw-scrutiny" target="_blank" rel="noopener">"zero-mileage used cars,"</a> when dealerships sell essentially new vehicles at a discount to clear inventory. This has contributed to an intense price war in the industry, prompting the Ministry of Commerce to summon automakers for a closed-door meeting, according to local media. It has also reportedly become a way for some businesses to game the subsidy system: used car businesses buy new cars from dealers while sending old inventory for scrap to obtain subsidies, then sell the new cars as used ones.
Other criticisms include merchants hiking prices before promoting the subsidized price to create an illusion of a discount. Zhejiang has reportedly investigated 76 cases of price violations linked to the subsidy program.
Wrigley said he expects automotive trade-in subsidies to be "tightened up" and additional rules to be put in place to prevent dealers and retailers from abusing the system.
The National Development and Reform Commission (NDRC) said it has disbursed two batches of funding so far, in January and April, totaling RMB 162 billion (USD 22.7 billion). The next batch is expected to be imminent. A delay in additional funding could dent consumers' appetite.
"The outlook for retail sales in the second half of the year remains uncertain," Serena Zhou, senior China economist at Mizuho Securities, wrote in a June report.
This article first appeared on <a href="https://asia.nikkei.com/Economy/China-races-to-calm-worries-over-end-to-42bn-consumer-subsidies">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

China races to calm worries over end to USD 42 billion consumer subsidies

… similar path, though with a different tone. The company calls its latest redesign the most significant in a decade, driven by the need to compete not just with other search engines, but with any platform that delivers information.
“We have to let go of our old definition of search,” said Zhao Shiqi, Baidu vice president and general manager of search. “The product has to evolve.”
On the technical side, Zhao noted that few AI companies focus on search. “Plenty of AI companies today don’t do search. The few that do both, such as Google and Baidu, are rare.”
Baidu continues to explore how search and large language models can complement each other. This is a deliberate move, and one of the company’s distinct advantages.
Its other edge lies in ecosystem design. In an era where users expect seamless, intelligent digital services, Baidu already has the infrastructure in place.
Just as Google is working to reclaim ground from OpenAI, Baidu’s transformation reflects a broader effort to stay relevant in the next wave of computing.
While startups may grab headlines, the responsibility of advancing the frontier still often falls to the incumbents. Foundational models are progressing fast, yet most users haven’t experienced their full capabilities. As industry observers have noted, it wasn’t necessarily GPT-3’s release that sparked mass interest, but the accessible interface and experience of ChatGPT that propelled it into the mainstream.
Since then, no product has quite matched that moment. So the race continues.
Today’s users want more than speed. They are looking for smart assistants: tools that anticipate intent, reduce friction, and handle the heavy lifting. There’s no clear finish line.
But one thing is increasingly certain: whoever redefines how we interact with the digital world will be the one to build the next superapp.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3361853553903618">article</a> was written by Xiao Xi for 36Kr.

Baidu reimagines search as the race to build the first AI superapp continues

Artificial Intelligence