In Depth: Cost Concerns Loom Over China’s Growing Market for Liver-Protection Drugs

E-commerce partnership: Ahead of the “618” shopping festival, Alibaba Group Holdings Ltd. has joined hands with Xiaohongshu to allow users to buy products from Taobao and Tmall via posts on the social networking and e-commerce platform. The partnership is expected to boost the flow of customers to Alibaba’s two online retail marketplaces during the annual shopping bonanza — Xiaohongshu had approximately 300 million monthly active users in 2024. This is a rare partnership between internet firms, which typically wall off their businesses. However, it is not the first time these two companies have partnered. Xiaohongshu, known in English as RedNote, also opened its platform to merchants using links to Taobao following a strategic investment by Alibaba in 2020. But the following year it changed strategy, cutting off merchants’ external access. The latest tie-up goes live this month; the first phase will mainly be open to the fast-moving consumer goods, sports and outdoor, and health industries.

Xi–Putin talks: Chinese President Xi Jinping and Russian President Vladimir Putin met in Moscow Thursday, where they pledged to deepen political mutual trust and strategic coordination. The two leaders signed a joint statement to strengthen bilateral ties and oversaw the exchange of more than 20 bilateral cooperation agreements. These covered areas including global strategic stability, international law, biosecurity, investment protection, the digital economy and film cooperation. At a joint press conference, Xi emphasized the need for China and Russia to navigate international volatility together, calling for elevating the “height, dimension and resilience” of the relationship.

Trade war fallout: A recent survey by the European Union Chamber of Commerce in China found that nearly half its member companies had been affected by China's retaliatory tariffs on U.S. goods. Of those surveyed, almost 23% reported higher costs for U.S. imports, with another 17% anticipated future price increases. In response, more than half of the companies have switched suppliers, and 32% have raised prices on impacted products. The survey also noted that European companies in China are less affected by U.S. tariffs on Chinese goods, as their products primarily serve the Chinese market. Facing ongoing uncertainty, 14% of respondents are postponing investment or expansion plans in China, while another 14% are considering increasing their investment.

Green Tea IPO: Chinese restaurant chain Green Tea Restaurant Group is proceeding with its Hong Kong initial public offering (IPO) after receiving clearance from the exchange regulator. The company aims to raise HK$1.21 billion ($156 million), marking its sixth attempt to go public. The offering is priced at HK$7.19 per share and has attracted eight cornerstone investors, including food industry player Shanghai Ziyan Foods Co. Ltd. and Thai conglomerate Charoen Pokphand Group. These investors have subscribed to 55.6% of the offered shares. Trading is set to begin on May 16. Facing challenges from slowing growth, Green Tea plans to use the IPO proceeds to fund business expansion, with a goal of adding 563 new stores by 2027.

Zeekr delisting: Geely Automobile Holdings Ltd. is looking to buy out shareholders of its U.S.-listed electric vehicle (EV) unit Zeekr Intelligent Technology Holding Ltd. and take the firm private. The move is part of an effort by Geely Auto to consolidate its business to fend off stiff competition in the Chinese auto industry. In an exchange filing Wednesday, the carmaker proposed paying $25.66 per American depositary share — a 20% premium to the stock’s volume-weighted average price over the previous 30 trading days. Zeekr would subsequently delist from the New York Stock Exchange and become a wholly owned subsidiary of its parent. Privatizing Zeekr is expected to boost the competitiveness of the group’s passenger vehicle business by fully integrating the EV unit’s assets and resources, Geely Auto said.