international

Alibaba has reported a 6% rise in annual revenue, offering a positive indication for China’s technology sector despite ongoing economic uncertainties, including subdued spending and concerns over trade relations. The Hangzhou-based tech giant, one of China’s largest companies with operations in retail, digital payments, artificial intelligence, and entertainment, recorded revenue of ¥996.3 billion (US$138.2 billion) for the fiscal year ending March 31. This marks a 6% increase from the previous year. Net income attributable to ordinary shareholders rose by 62% to ¥129.5 billion, according to a statement released on the Hong Kong Stock Exchange. In the final quarter alone, the company reported revenue of ¥236.5 billion, slightly below a Bloomberg forecast, while net income attributable to ordinary shareholders surged by 279% to ¥12.4 billion compared to ¥3.3 billion in the same period the previous year. CEO Eddie Wu stated that the company’s results reflect the effectiveness of Alibaba’s “user first, AI-driven” strategy, with core business growth continuing to accelerate. This growth arrives amid a renewed investor interest in China’s technology sector, sparked earlier this year by the release of the advanced AI chatbot DeepSeek. Alibaba’s share price has been highly volatile, influenced by fluctuating investor enthusiasm regarding Chinese AI advancements. A surge of optimism in January was followed by a significant decline last month after US President Donald Trump imposed a series of global tariffs. As competition intensifies, Alibaba, alongside tech giants Tencent and Baidu, is channeling substantial investments into developing and integrating advanced AI applications. This renewed focus comes at a time when China’s economy faces challenges from sluggish consumer spending and strained trade relations with the United States. Despite recent improvements, including announcements by Beijing and Washington to reduce tariffs, economic forecasts remain cautious. Economists suggest that China may find it difficult to meet the government’s growth target of approximately 5% for the year. Earlier this week, Alibaba’s industry counterparts Tencent and JD.com also reported moderate revenue growth in the first quarter, indicating a potential recovery in consumer spending. However, official figures released last Saturday revealed continued deflationary pressure, with consumer prices remaining low. In recent years, Alibaba has faced increased regulatory scrutiny as part of China’s crackdown on large domestic tech companies. Jack Ma, Alibaba’s co-founder, who was notably critical of China’s financial regulations, kept a low profile during this period. However, his public appearance alongside President Xi Jinping in February signaled a potential shift in the government’s stance, leading to a rise in Alibaba’s share price. Although Ma is no longer actively involved in the company’s management, he is believed to retain a significant ownership stake. -AFP

Starbucks Corp is exploring strategic options for its China business, including a potential stake sale, as the global coffee giant navigates increased competition in its second-largest market. According to sources familiar with the matter, Starbucks has reached out to private equity firms, technology companies, and other potential investors to gauge interest and discuss potential growth strategies. The company, working with a financial adviser, has reportedly sent letters to several prospective investors, soliciting their insights on the future of its China operations. While discussions are still in the preliminary stages, a potential transaction could value the assets at several billion dollars. However, Starbucks may ultimately choose not to pursue a deal. This strategic consideration follows a challenging period for Starbucks in China, where local competitors such as Luckin Coffee Inc and Cotti Coffee have rapidly expanded. Luckin, in particular, has emerged as a formidable rival, reporting net revenue of US$1.2 billion in the quarter through March, significantly surpassing Starbucks’ US$740 million net revenue from its 7,750 stores in the country during the same period. Starbucks CEO Brian Niccol previously acknowledged the competitive pressures in China, stating during an April earnings call that the company had implemented changes to product offerings and pricing as part of a broader strategy to drive progress. Niccol reiterated Starbucks’ commitment to China, describing it as a long-term growth market. “We remain committed to China for the long term,” Niccol said. “We see great potential for our business there in the years ahead and remain open to how we achieve that growth.” In a separate statement in October, Niccol hinted at potential partnerships to support the company’s long-term objectives, without providing specifics. Starbucks’ decision to explore options follows similar moves by other global restaurant chains in China. In recent years, both McDonald’s Corp and Yum! Brands Inc, parent of KFC, divested stakes in their China operations to private equity firms to better adapt to local preferences. Starbucks shares have seen a decline of 25% since reaching a peak on 28 February, highlighting investor concerns over the company’s performance in China and the broader challenges facing the brand amid heightened competition. -Bloomberg

SEOUL: Hyundai Motor Co. has commenced construction of its first manufacturing facility in the Middle East, marking a major milestone in the company’s global expansion strategy. The new plant, named Hyundai Motor Manufacturing Middle East (HMMME), is located at the King Salman Automotive Cluster within King Abdullah Economic City (KAEC), Saudi Arabia. HMMME is a joint venture between Hyundai Motor and Saudi Arabia’s Public Investment Fund (PIF), with a 30-70 stake distribution. Set to begin production in the fourth quarter of 2026, the facility is designed to produce 50,000 units annually, including both electric vehicles (EVs) and internal combustion engine models. The establishment of HMMME aligns with Saudi Arabia’s broader strategy to foster a domestic automotive industry. As part of the Vision 2030 initiative, the plant is expected to support the kingdom’s ambition to diversify its economy beyond oil dependence by promoting local manufacturing and technological innovation. The groundbreaking ceremony, held on Wednesday at KAEC, was attended by over 200 dignitaries, including Bandar Alkhorayef, Saudi Arabia’s Industry Minister, and Chang Jae-hoon, Vice Chairman of Hyundai Motor Group. Chang highlighted the significance of the project, stating, “Today’s groundbreaking marks the beginning of a new chapter for both Saudi Arabia and Hyundai Motor, as we lay the foundation for a new era of future mobility and technological innovation.” Yazeed Alhumied, Deputy Governor of PIF, praised the collaboration as a demonstration of the fund’s commitment to building local expertise, attracting advanced technology, and creating skilled jobs within the kingdom’s automotive and mobility sector. The plant is expected to generate thousands of jobs and facilitate knowledge transfer, fostering local talent development in automotive manufacturing. The localization of Hyundai’s production is also anticipated to boost Saudi Arabia’s automotive and mobility ecosystem, positioning the country as a key player in the regional automotive industry. Additionally, Hyundai plans to establish a hydrogen mobility ecosystem in Saudi Arabia in partnership with the Korea Automotive Technology Institute, Air Products Qudra, and the Saudi Public Transport Company. This initiative includes creating a hydrogen mobility environment, piloting hydrogen electric buses, and collaborating on government-backed research projects. By establishing this manufacturing base, Hyundai Motor is positioning itself as a crucial contributor to Saudi Arabia’s Vision 2030. The company aims to leverage local talent and advanced technologies to support the kingdom’s goal of becoming a global hub for automotive innovation. -Yonhap

SINGAPORE: PayPal has launched PayPal Complete Payments for businesses in Singapore, offering a robust, full-stack payments solution designed to cater to small and medium-sized enterprises (SMBs) as well as large corporations. The platform aims to facilitate seamless global transactions, allowing merchants to accept payments from customers in over 200 markets through a single, customisable integration. Nadia Syed, Senior Vice President of International Cross Border Trade and General Manager Asia Pacific at PayPal, described the solution as a game changer for local businesses. “PayPal Complete Payments will give businesses here access to an extensive suite of new tools which will help them sell more effectively to global customers. It will also help businesses optimise their cash flow by enabling rapid settlement for transactions in minutes instead of days, while allowing them to hold multi-currency balances, reducing foreign exchange exposure,” she said. As cross-border commerce remains pivotal for Singaporean businesses, particularly amid global trade complexities, the launch of this service underscores PayPal’s commitment to supporting growth through streamlined payments and enhanced fraud protection. The platform not only offers traditional payment methods like Visa, Mastercard, American Express, and PayPal Wallet, but also includes region-specific options such as Alipay, iDEAL, and BLIK. This level of flexibility is crucial given that 70% of consumers consider the availability of their preferred payment method as essential when choosing where to shop. PayPal Complete Payments is also engineered to boost checkout conversion rates. Data indicates that globally, card processing through PayPal increases authorisation rates by 4.7 percentage points. The inclusion of both PayPal Wallet and Apple Pay can further enhance conversion rates by 17%. One key feature is the ability to present prices in local currencies, ensuring that customers can view costs in familiar terms regardless of their location. Additionally, businesses can leverage the platform to store payment methods securely within the PayPal vault, enabling repeat transactions while reducing the risk of payment declines. This capability not only fosters customer loyalty but also supports smoother, more efficient operations. The platform also addresses a critical pain point for businesses in Singapore: fraud. As the region experiences a rise in e-commerce payment fraud, PayPal has built Fraud Protection and Seller Protection into the system for eligible transactions. This feature, combined with integrations with Adobe Commerce, Big Commerce, and WooCommerce, enhances security while minimising disruptions. A prominent user, G2G (Gamer2Gamer), a global digital goods and services provider, has already benefited from the platform. Ken Chee, G2G’s Group CEO and Co-Founder, noted that the transparent fees, instant settlements, and multi-currency support offered by PayPal Complete Payments have strengthened the company’s ability to serve the US$250 billion global gaming market. Chee added, “This integration fuels G2G’s expansion, fostering trust and stronger connections with our global gaming community.” With PayPal Complete Payments now live, Singaporean businesses can expect greater flexibility, faster settlements, and enhanced fraud protection, helping them navigate the increasingly complex global trading environment. -PR Newswire

Shenzhen, China’s southern tech hub, has experienced a significant rise in overseas visitors this year, driven largely by the country’s expansion of visa-free entry and the ongoing integration of the Greater Bay Area, which connects Guangdong province, Hong Kong, and Macau. According to state broadcaster CCTV, Shenzhen’s international airport recorded over 152,000 visa-free entries by foreign nationals in 2025, marking a 160.3% year-on-year increase. Total foreign passenger entries rose by 54.6% to 531,000. The city has become increasingly popular not only among visitors from China’s two special administrative regions but also among tourists from Malaysia, South Korea, Japan, Vietnam, and Singapore. To accommodate this growing demand, Shenzhen will launch a direct flight to Dubai in July, with several new international routes to urban centres like Vientiane, Osaka, Singapore, Tokyo, Bangkok, and Hanoi added earlier this year. Renowned as a technology powerhouse and manufacturing hub, Shenzhen’s appeal lies in its proximity to Hong Kong, modern infrastructure, and affordability. Marc Guyon, founder of Hong Kong-based Club France International, praised the city as “fun, modern, and less expensive,” making it a popular destination for both leisure and business. Highlighting Shenzhen’s vibrant appeal, YouTube star IShowSpeed, who has 39.5 million followers, hosted a five-hour live stream from the city in early April, which amassed 8.7 million views. China has eased entry requirements since late 2023, introducing visa waivers for a broader range of countries to revive tourism following three years of pandemic-related travel restrictions. Notably, the 240-hour visa-free transit policy, launched at the end of last year, has significantly bolstered tourism, though figures have yet to reach pre-pandemic levels. In 2024, the number of travellers entering China through visa-free entry rose by 112% to 20.1 million. Overall, 610 million inbound and outbound trips were recorded last year, of which approximately 65 million involved foreign visitors — an 83% increase from the previous year. Despite the uptick, numbers still fall short of pre-pandemic figures; in 2019, foreigners made up nearly 98 million of 670 million cross-border trips. Nonetheless, Shenzhen’s robust tourism growth underscores the city’s pivotal role in China’s post-pandemic recovery. -South China Morning Post

Burberry has announced plans to reduce its global workforce by 1,700 as part of a strategic cost-cutting initiative aimed at revitalising the business. The luxury British brand is in the early stages of a turnaround plan under the leadership of CEO Joshua Schulman, who took over last year. The decision comes despite Burberry reporting an adjusted operating profit of £26 million (US$34.55 million) for the financial year ending March 29, 2025, significantly surpassing analysts’ expectations of £11 million. Schulman’s strategy marks a shift towards focusing on the brand’s iconic trench coats and scarves, following a period of challenges marked by product missteps, steep price increases, and a broader downturn in the luxury sector. Under his leadership, Burberry aims to reposition itself more effectively within the competitive luxury market. In the fourth quarter, comparable sales fell by 6%, slightly better than the forecasted 7% decline. While this is a sign of progress, the company is taking a cautious approach as it rolls out its autumn and winter collections. Schulman stated that the brand would increase the frequency and reach of its campaigns to capitalise on improved brand sentiment. The geographical breakdown of sales reflects the ongoing challenges facing the brand. Sales in both the Americas and the Europe, Middle East, India, and Africa (EMEIA) region fell by 4% year-on-year, while sales in the Asia-Pacific region dropped by 9%. Schulman’s strategy to boost sales by targeting American consumers could face hurdles, given the uncertain outlook for US consumer spending. While Burberry did not specifically address the impact of US tariffs, it acknowledged that geopolitical developments are contributing to an increasingly uncertain economic landscape. The company did not provide detailed forecasts for the 2026 financial year, opting to focus on stabilising the brand through its ongoing strategic adjustments. -Reuters