China Development in Oct 2020: Integrated Circuit, Medical Device, Rich Individuals, Tourism

  1. Integrated Circuit Industry

An integrated circuit industrial base was officially inaugurated in Shanghai in Oct 2020, with 14 projects worth 22.5 billion yuan (about $3.36 billion) signed agreements to be located in the base.

The projects cover the whole production chain of the integrated circuit industry, including chip manufacturing and design, as well as equipment and key materials manufacturing.

The base, dubbed “oriental chips harbor,” is located in the Lingang Area, a new section of the Shanghai Pilot Free Trade Zone. So far, the area has received more than 40 major integrated circuit enterprises, with a total investment of over 150 billion yuan, according to the area’s administration.

According to a development plan released by the administration, the “oriental chip harbor” will boast an industrial size of 100 billion yuan by 2025.

2. Medical Device

China had a total of 26,456 medical device manufacturers at the end of August, up 40 percent year-on-year, official data showed.

To cope with the raging COVID-19 epidemic in the first months of the year, Chinese authorities accelerated the approval of medical devices, according to the National Medical Products Administration.

A total of 49 types of COVID-19 testing kits, two types of blood purification equipment, and eight types of ventilators have been approved for sale or use since the beginning of the year, contributing to the fight against the epidemic.

3. Rich Individuals

China’s richest individuals have recorded the biggest wealth increase in 22 years, thanks to a resilient, changing economy and a booming stock market bolstered by new growth momentum, as shown by the latest Hurun China Rich List published on Tuesday.

The group, with minimum wealth of 2 billion yuan ($290 million), added $1.5 trillion based on calculations from Aug 28. That’s equivalent to half the United Kingdom’s annual GDP, taking them to a total of $4 trillion. That’s more than the GDP of Germany, the world’s fourth-largest economy.

The Hurun China Rich List recorded more wealth created this year than in the previous five years combined, suggesting that “the structure of the economy has evolved, moving away from traditional sectors like manufacturing and real estate, toward the new economy”, said Rupert Hoogewerf, Hurun Report chairman and chief researcher.

Healthcare overtook real estate to become the second-highest source of wealth, with 10.9 percent of the list. Manufacturing led with 23.8 percent, while real estate slipped to third at 10.6 percent, down from 14.8 percent, the biggest drop since records began in 1999.

E-commerce also excelled as a wealth builder. Jack Ma, co-founder of Alibaba Group, had $58.5 billion, giving him the crown of richest person in China for the fourth time overall and the third time in a row. He was followed by Tencent‘s chairman, Pony Ma, who benefited from an expanding share of online gaming and digital business during the pandemic.

4. Tourism

A nationwide travel boom during the National Day and Mid-Autumn Festival holiday sent a clear signal that China is emerging from the impact of the COVID-19 pandemic.

Affluent Chinese tourists chose to travel within the country, rather than abroad, during the eight-day National Day holiday, with customized travel packages and personalized services being the most preferred options, experts said.

Figures from the Ministry of Culture and Tourism on Thursday showed that over 637 million visits were made to attractions on the Chinese mainland during the eight-day extended break, compared with 782 million visits during the seven-day holiday in 2019.

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