China's private enterprises embrace emerging industries to boost growth

China's private enterprises are embracing emerging technologies and industries, such as artificial intelligence (AI) and the low-altitude economy, to reduce costs, enhance benefits, and drive their growth.

The declining cost of AI applications has fueled a surge in demand for the technology within the private enterprise sector, with some companies leveraging it as a powerful tool to reduce labor costs.

"Of course, I'd like to fully embrace AI. We have already laid a solid foundation in utilizing AI technology for clearing goods both online and offline, managing inventory, and forecasting orders. Large language models have made significant breakthroughs in managing the entire supply chain, including nighttime sales and eliminating the need for night shift personnel," said Zhang Wenzhong, founder of Wumart Group, a leading Chinese retailer and supermarket chain.

In addition, private enterprises are actively exploring the low-altitude economy, as the research and development of low-altitude aircraft, the creation of low-altitude logistics application scenarios, and the construction of new infrastructure show great potential.

One of these companies is Zall Holding Co., Ltd., which primarily invests in advanced manufacturing, modern services, and other related industries.

"It is expected that domestically produced light aircraft will go into production in 2025. We have also invested in the research and development of airships, with the first test flight successfully conducted at the end of last year. I believe that 2025 will truly be the inaugural year for industrial applications in the low-altitude economy," said Yan Zhi, chairman of Zall Holdings Co., Ltd.

Meanwhile, private enterprises in traditional manufacturing are exploring overseas industrial chain markets, aiming to seize potential opportunities in emerging growth markets.

"Southeast Asia, South Asia, the Middle East, and Africa are all growth markets. Going overseas requires achieving synergy within the industrial chain and forming complementary, coordinated development with the industries of host countries. We should explore overseas markets through collaboration, leveraging each other's strengths for mutual benefit," said Ding Liguo, president of Shanghai Delong Steel Group Co., Ltd.

China's private enterprises embrace emerging industries to boost growth

U.S. firms and consumers shouldered nearly 90 percent of the economic burden from last year's sweeping tariff hikes, contradicting the Trump administration's argument that the levies are paid by foreign trading partners, according to a report issued by the Federal Reserve Bank of New York on Thursday.

The study reveals that as average U.S. import tariffs surged from 2.6 percent to 13 percent in 2025, foreign exporters largely declined to absorb the added costs by lowering their prices.

Instead, the economic impact fell predominantly on domestic entities: during the first eight months of the year, 94 percent of the tariff incidence was borne by U.S. importers and consumers. That share remained elevated at 92 percent in September and October, dipping only slightly to 86 percent in November.

The findings align with a separate analysis published this week by the U.S. Congressional Budget Office, which estimated that about 70 percent of tariff costs were ultimately transferred to American consumers through higher retail prices on imported goods.

US firms, consumers absorb nearly 90 pct of tariff costs in 2025: bank report