Luxury Brands Cut Price of Exclusivity as Chinese Spending Drops

E-commerce refund U-turn: China’s major e-commerce platforms have announced they’ll be revising their policies that allow customers to get refunds without returning their purchases, after widespread abuse. On Tuesday, Taobao, JD.com, Pinduoduo, Douyin and Kuaishou all announced they wanted public feedback on changes to their after-sales policies. The platforms all said they support merchants and buyers resolving issues through negotiations and that they wouldn’t unnecessarily intervene. Merchants using the platforms have previously complained that the platforms would essentially force them to give such refunds if a customer asked for one. The platforms’ “refund-only” policies were introduced amid fierce competition in the industry — after budget-goods specialist Pinduoduo rolled out the policy, other platforms followed suit.

SAIC’s tariff dilemma: State-owned auto giant SAIC Motor Corp. Ltd. and General Motors Co. are discussing how they’ll handle the impact of tariffs on their China joint venture, the firm’s general manager said. Lu Xiao said that SAIC-GM has been affected in two ways — the import of parts from the U.S. and the export of vehicles to the U.S. Analysts believe that exports are likely to be the thorniest problem. While joint ventures with foreign giants have long dominated China’s car market, these firms have failed to keep up with the shift towards electric vehicles and have seen their domestic sales slide in recent years.

Morgan Stanley appointment: Morgan Stanley has appointed James Hu as its China vice chairman. The investment banking veteran has more than 15 years of experience in senior roles in the Asian divisions of Citigroup and Merrill Lynch. Hu’s appointment comes as China’s investment banking sector is heating up, as several other markets are cooling. Investment banking fees on the Chinese mainland grew 8% year-on-year in the first quarter, compared to declines in Europe, the Americas and Japan.

Unafraid to fight: After signals the U.S. may be looking to deescalate its trade war with China, the country’s foreign ministry said that Beijing is ready to fight and ready to talk. “If the U.S. truly wants to resolve issues through dialogue and negotiation, it should stop threats and blackmail and engage in dialogue with China on the basis of equality, respect, and mutual benefit,” a ministry spokesperson said. On Tuesday, President Trump said that the tariffs he recently placed on China are “too high” and they will come down substantially.