In Depth: EV Upstart Nio Going Nowhere Fast

Huawei sales growth: Huawei Technologies Co. Ltd.’s revenue grew about 22% last year, hitting 862 billion yuan ($118.7 billion), as its high-end smartphone business bounced back and smart car sales boomed. The tech giant’s profits fell over a quarter; however, this was largely due to a one-off gain in 2023 related to the sale of its Honor smartphone unit. According to Caixin calculations, if expenses outside the main business are excluded, Huawei’s pre-tax profit increased by nearly 80%. The company also touted growth in its chip business and its HarmonyOS operating system’s ecosystem.

Personal bankruptcy: Xiamen is to become the second city in China, after Shenzhen, to introduce a personal bankruptcy system. The city’s legislative body recently released a draft regulation for public comment which outlines a comprehensive framework for personal bankruptcy protection. The legislation aims to provide a fair, judicially supervised mechanism for debtors who cannot repay their debts, while protecting creditors’ rights. It builds on Shenzhen’s 2020 pilot and incorporates international best practices, including procedures for estate bankruptcy, joint spousal filings and combined personal and corporate bankruptcies. Experts say the law is designed to protect “honest but unfortunate” debtors while guarding against abuse.

NEV liquidation: The Shanghai subsidiary of China Evergrande’s electric vehicle unit has formally entered bankruptcy liquidation after a court appointed an administrator on March 26. China Evergrande New Energy Vehicle Group Ltd.’s Shanghai subsidiary was declared insolvent following a creditor’s petition in September 2024. The first creditors’ meeting is scheduled for July 10. This came after its Guangzhou affiliate entered court-ordered restructuring in mid-2024. Evergrande NEV’s production has been paralyzed for months, with only its Tianjin plant holding full manufacturing licenses, and operations there have been halted since early 2024.

DingTalk founder returns: The founder of China’s most popular enterprise collaboration platform will return to guide its efforts to incorporate artificial intelligence (AI), Caixin learned. Chen Hang will take on the CEO role at DingTalk and the current head will move into another job at Alibaba Group Holding Ltd., the parent company. The platform has said it has around 700 million users in China and 2.2 million companies use its AI products.

Exercises around Taiwan: The Chinese military’s army, navy, air and rocket forces launched joint drills around Taiwan on Tuesday. A spokesperson for the People’s Liberation Army’s Eastern Theater Command said the exercises would focus on seizing comprehensive control, sea and land strikes, and blockading key areas and channels. The operation serves as a warning to separatists on the island and as a punishment for the “reckless provocations” of Lai Ching-te’s administration, a spokesperson for the Taiwan Affairs Office of the State Council said. Last month, Lai labelled Beijing a “hostile foreign force” in a speech.