2020 will surely go down as the toughest year for Chinese enterprises since China embarked upon economic reform and opening some four decades ago. Coming on top of various domestic and external economic challenges,the COVID-19 pandemic impacted commerce across the board. From retail to supply chain, business operations were severely disrupted by lock down and quarantine restrictions. Consumers had to shop online for even basic needs.

But we also saw how quickly enterprises in the mainland adapted to the new reality. The result was an acceleration of digital adoption, such as livestreaming to shoppers in lock down, and the application of new technologies to further optimize supply chains and business models.

In tandem, the Chinese government rolled out a raft of supportive policies and initiatives, including incentives encouraging a vibrant “night-time economy” to spur urban consumption, as well as measures to help export manufacturers sell in the domestic market.

With input from more than 160 top-tier mainland experts, Ten Highlights once again identifies top trends of the past twelve months and anticipates what will shape China’s commercial landscape in the year ahead.

In 2021, two significant factors will be the continued rise of China’s middle class and the introduction of the 14th Five-Year Plan (2021-25), which focuses on boosting and further opening China’s domestic commercial sector. The implementation of the government’s “dual circulation”policy, which places greater emphasis on China’s domestic market (or “internal circulation”), will be a further shot in the arm for the commercial sector, opening up new opportunities for local and foreign businesses alike. Meanwhile, the Regional Comprehensive Economic Partnership (RCEP) trade deal concluded in November last year between most of Asia’s largest economies, with China as a founding member, will help to expedite the upgrading of Chinese industries and consumption.

Ten Highlights is a valuable resource for global brands and retailers, and firms and individuals seeking to better understand the latest commercial trends, issues, and opportunities in China. We wish to thank all panel members on the Expert Committee for sharing their important insights, and our Fung Business Intelligence colleagues for their many contributions.