分类： business

On Monday, China’s flagship flag carrier Air China launched an inaugural celebration at Beijing Daxing International Airport to mark the introduction of two new nonstop routes connecting the capital airport to major European destinations. This move marks a key milestone in the airline’s ongoing expansion of its global route network and its efforts to advance coordinated, complementary operations across Beijing’s two major international airport hubs.

Per Air China’s official announcement, the new Beijing Daxing-Frankfurt service will commence operations on Tuesday, while the Daxing-Milan direct route is scheduled to take off for its first commercial flight on June 13.

Industry observers note these new connections are designed to deepen transportation links between Beijing and European markets, and to cater to rapidly growing cross-border demand across business activities, international tourism, and people-to-people cultural exchange. As of the launch, Air China already serves 23 destinations across the European continent, solidifying its position as one of the largest and most connected carriers operating between China and Europe. Beyond adding new travel options, the two new routes connect to globally significant economic centers: Frankfurt ranks among Europe’s top transportation and financial hubs, and hosts Germany’s busiest and largest aviation hub, while Milan stands as Italy’s core economic and financial center, alongside its global reputation as a leading capital of art and high fashion.

Air China officials emphasized that the new routes will strengthen Beijing Daxing International Airport’s connectivity to key international gateway cities, while also expanding the airline’s existing European route network to give leisure and business travelers traveling between China and Europe more flexible, direct travel options. Notably, both new routes will be integrated into Air China’s existing joint venture partnership with German carrier Lufthansa, a collaboration that will allow passengers to access more coordinated network scheduling and smoother, more efficient connecting services across the two airlines’ combined global networks.

The launch of these new European routes coincides with the start of China’s 2026 summer-autumn civil aviation scheduling season, which kicked off in late March and will run through October 24, spanning 210 days that cover the peak summer travel period and multiple national public holidays. Civil aviation authority data shows that during this new scheduling season, a total of 222 domestic and international airlines are planning to operate roughly 121,000 combined passenger and cargo flights per week, a figure that remains broadly stable compared to the same season last year. Of these weekly flights, 191 airlines have scheduled 21,047 weekly international commercial flights, representing a 1.8% year-on-year increase. These international flights connect China to 86 countries worldwide, with Cyprus added as a new country to the global route network this season.

Against this broader industry backdrop, Chinese and global airlines alike continue to adjust and refine their international operations while navigating ongoing cost pressures. Lin Zhijie, a leading independent aviation industry analyst, explained that persistently rising global jet fuel prices remain the single most influential factor driving recent adjustments to international flight schedules. Lin added that this cost pressure is not limited to Chinese carriers: airlines across every global market are contending with a more challenging operating environment as fuel costs continue to climb.

For the fifth year running, the United Arab Emirates has retained its position as the world’s leading nation for entrepreneurship, according to the newly released 2025/2026 Global Entrepreneurship Monitor (GEM) report. Outperforming dozens of advanced economies across the globe, the country has once again solidified its reputation as the world’s most favorable environment for launching and scaling new business ventures.

Across eight core performance metrics for high-income economies, the UAE claimed the number one spot. These metrics span physical infrastructure development, targeted and supportive government policy frameworks, tax and administrative procedural policies, national government-led entrepreneurship programs, research and development knowledge transfer, market dynamic-fueled ease of new entry, regulatory burden reduction for new market entrants, and formal entrepreneurial education.

On two additional key indicators – entrepreneurial financing and access to startup capital – the UAE took second place globally, showcasing the strength and adaptive capacity of its national financial system. This strong performance confirms that the UAE’s economic landscape is fully prepared to empower early-stage startups and expand their opportunities for sustainable growth and regional or global expansion.

Notably, the UAE is one of only four countries worldwide that have met or exceeded the “sufficiency” benchmark across every foundational framework condition measured by the GEM entrepreneurship index. This achievement underscores its status as a global leader in entrepreneurial ecosystems, underpinned by world-class infrastructure, efficient and proactive government policies, and robust digital readiness.

Abdullah bin Touq Al Marri, UAE Minister of Economy and Tourism, emphasized the country’s pride in this milestone, noting that the consecutive top ranking reflects the nation’s longstanding commitment to strengthening its entrepreneurial ecosystem and locking in its status as the world’s most entrepreneur-friendly economy and top global destination for business establishment.

He attributed the sustained success directly to the UAE leadership’s forward-thinking vision, which centers entrepreneurship and small and medium-sized enterprises (SMEs) as core pillars of building a competitive, innovation-driven knowledge economy. Al Marri also highlighted the UAE economy’s proven high resilience and its proven ability to adapt rapidly to shifting regional and global economic conditions.

The minister added that the GEM results reflect the strength and cohesive integration of pro-competitive policies and regulatory reforms rolled out by the UAE to nurture a supportive entrepreneurial landscape. Key initiatives driving this success include the national “UAE: Global Entrepreneurship Capital” campaign, which has successfully positioned the country as the premier destination for global talent, innovators, and founders.

These outcomes also align directly with the goals of the UAE’s “We the UAE 2031” national vision, which aims to establish the country as a global hub for the new economy by supporting high-growth potential sectors including advanced technology, artificial intelligence, renewable energy, space exploration, and financial technology.

In the 2025 National Entrepreneurship Context Index (NECI), which measures a country’s overall entrepreneurial climate based on independent expert assessments, the UAE scored a robust 7.0 out of 10. This high score reflects the deep robustness of the country’s entrepreneurial ecosystem and the high level of confidence among local business owners and international investors operating in the UAE.

The GEM report also highlighted that the UAE is among just six countries where entrepreneurs uniformly identify artificial intelligence as a critical driver of growth over the next three years, demonstrating the nation’s advanced preparedness for the transition to a digital, knowledge-based economy.

In the “international access” metric, the UAE ranked among the top five countries worldwide for startups’ ability to enter and scale in external global markets. The report attributed this success to the UAE’s world-class physical infrastructure and integrated logistics network, which it described as exceptional in connecting local entrepreneurs with global consumer markets.

Data from the report confirms the UAE has built a dynamic, fast-growing entrepreneurial ecosystem: more than one in five UAE adults (over 20 percent of the adult population) are currently engaged in launching new business ventures. This high participation rate reflects the strength of the incentives and enabling frameworks the country has put in place to support early-stage founders.

The UAE’s Total Early-stage Entrepreneurial Activity (TEA) rate hit a strong 19.2 percent, signaling a healthy, consistent pipeline of new ventures. The GEM report notes that this steady flow of new entrepreneurial projects stems from a supportive ecosystem where launching a business is widely viewed as an attractive career choice, facilitated by streamlined registration processes and backed by robust government and financial support.

The UAE continues to draw global entrepreneurial talent, with 19.6 percent of citizen adults and 22.4 percent of resident adults engaged in early-stage entrepreneurial activity. This gap highlights the country’s success in attracting skilled, ambitious founders from across the globe and encouraging entrepreneurial participation across all segments of society.

The report also singled out the UAE’s success in advancing female entrepreneurship, noting that the country’s integrated ecosystem guarantees women founders equal access to critical resources and growth opportunities.

More than half of UAE-based entrepreneurs identify family cultural traditions as a key motivator for launching and growing their businesses, reflecting the deep embeddedness of entrepreneurial culture across UAE society.

In school-based entrepreneurial education, the UAE also made notable gains, ranking among the top five countries globally. The country’s education system prioritizes building core entrepreneurial competencies in students, including creative thinking, complex problem-solving, risk assessment, and opportunity identification, laying the groundwork for a new generation of future founders.

Finally, the report emphasized that UAE entrepreneurship is supported by an advanced, flexible financing landscape that offers founders a wide range of pathways to secure capital for launching and scaling their businesses. This strength is visible in the diversity of funding sources available, from government-backed grant and seed initiatives to independent investment funds and global venture capital firms. This comprehensive support boosts founder confidence and enables innovators to turn early-stage ideas into scalable, globally competitive businesses, advancing the country’s vision of building a knowledge- and innovation-led national economy.

As one of the world’s most authoritative independent research projects tracking global entrepreneurial activity, GEM has conducted more than two million interviews with stakeholders since its launch. The 2025/2026 edition of the report covers 53 global economies, representing approximately 43 percent of the world’s population and 57 percent of total global GDP, with analysis drawn from extensive input from hundreds of entrepreneurship experts.

Against a backdrop of rising global trade fragmentation and economic volatility, India and New Zealand formalized a transformative free trade agreement (FTA) in New Delhi on Monday, a deal designed to boost bilateral economic integration and open new reciprocal market access for both nations. The signing ceremony brought together India’s Minister of Commerce and Industry Piyush Goyal and New Zealand’s Minister of Trade and Investment Todd McClay, who was visiting the Indian capital for the event.

After nine months of closed-door negotiations that concluded with a preliminary agreement in December, the deal delivers sweeping tariff changes: 95% of New Zealand’s goods exported to India will see tariffs cut or removed entirely, while every Indian product shipped to New Zealand will enter duty-free. In a supplementary commitment, New Zealand has pledged to channel $20 billion in investment into India over the coming 15 years.

For both governments, the agreement comes as a strategic response to shifting global trade pressures. New Delhi has been actively pursuing alternative export markets to offset the economic strain of steep tariffs imposed by the United States on Indian goods, as well as growing disruptions to key shipping and energy routes linked to regional tensions. For New Zealand, the deal advances a long-running policy goal of reducing overreliance on China, its single largest trading partner, by diversifying its trade relationships across the Indo-Pacific.
McClay framed the agreement as an unprecedented opportunity for long-term growth, noting that it comes at a moment of heightened global trade friction and policy uncertainty. Official trade data puts bilateral commerce between the two nations at $2.15 billion for the 12-month period ending June 2025, with India currently ranking as New Zealand’s 12th-largest export market. “This is a once-in-a-generation opportunity to deepen our economic ties at a time when the global order is shifting,” McClay said of the deal.
Goyal echoed the significance of the moment, calling the FTA a “defining milestone” for both countries. “At a time when the world economy is being recast, India and New Zealand have chosen each other,” he stated, adding that the agreement establishes clear frameworks for cross-sector investment and regulatory cooperation that will benefit businesses on both sides.

Key sectors set to gain expanded market access for Indian exporters include textiles and apparel, engineering goods, leather and footwear, and marine products. New Zealand exporters will see new openings for shipments of horticultural goods, timber, coal, wool and meat. To protect its large domestic farming community, India carved out exclusions for dairy products and a selection of other agricultural goods in the final text of the agreement.
India’s export sector has faced mounting pressure since August last year, when the United States imposed steep new tariffs on a range of Indian goods, hitting labor-intensive sectors including textiles, auto components and metals particularly hard. New Delhi continues to hold separate bilateral trade negotiations with Washington even as it expands trade ties with other partners across the globe.

In New Zealand, the FTA enjoys broad bipartisan support, a standard for the country’s major trade agreements. The deal now moves to parliamentary ratification, and it is widely expected to pass after the center-left opposition New Zealand Labour Party pledged its backing. The only notable opposition comes from New Zealand First, a small populist party that is part of the current governing coalition.
Reporting for this story was contributed by Graham-McLay from Wellington, New Zealand.

At a 2026 Shanghai Forum sub-forum focused on digital economic connectivity across the Global South, industry experts and policy researchers have highlighted that China’s cross-border e-commerce sector has stepped into a new era of high-quality growth, creating wide-ranging, mutually beneficial collaborative opportunities for emerging economies across the Global South. Today, China’s cross-border e-commerce ecosystem is defined by three key transformative trends: diversified consumer and marketing traffic channels, end-to-end integrated trade operations, and access to an expanding network of diverse global markets. As Chinese domestic sellers actively pursue new market frontiers and expand their product portfolios, Global South partner nations are positioned to gain substantial long-term advantages from these shifting dynamics.\n\nLi Mingtao, chief e-commerce expert at the China International Electronic Commerce Center, explained that Global South countries can capitalize on China’s decades of refined e-commerce operational expertise to accelerate the launch of their unique, high-quality local goods into global consumer markets. Beyond exporting their own products, Li noted that Global South enterprises can also collaborate with Chinese firms on secondary product development, leveraging China’s open cross-border e-commerce import channels to tap into the massive, evolving demand of China’s domestic consumer base.\n\nTo maximize these shared benefits, experts have proposed advancing the development of a large interconnected e-commerce market under the framework of the Belt and Road Initiative. This collaborative framework would prioritize upgrading digital infrastructure in partner nations, while fostering greater operational synergy between Global South economies and China’s robust production and supply chains. Qi Xin, director of the Belt and Road Initiative Economic and Trade Cooperation Research Institute at the Ministry of Commerce’s Chinese Academy of International Trade and Economic Cooperation, added that China has a key role to play in shaping inclusive global digital governance. She emphasized that China should work to advance the creation of a mutually beneficial, open, and transparent international rules-based system for the digital economy, while deepening strategic partnerships with core Global South regions to lift cross-border e-commerce cooperation to new levels.\n\nA growing number of Chinese cross-border e-commerce enterprises have already laid the groundwork for this collaboration by building out localized service networks across Global South countries. One standout example is Kilimall, a Chinese-founded e-commerce platform launched in Kenya that has built localized operational hubs across multiple African nations. To date, the platform has created more than 10,000 local jobs across logistics, customer service, and retail sales, delivering tangible improvements to local employment and quality of life.\n\nShanghai, China’s frontier of reform and opening-up, has emerged as a key national hub for bridging China and Global South economies through digital trade empowerment. Zhou Lan, deputy director of the Shanghai Municipal Commission of Commerce, outlined the city’s ongoing efforts to facilitate these connections, pointing to Shanghai’s Hongqiao International Coffee Harbor as a successful model. The hub hosts roughly 100 online and offline enterprises, curates coffee products from 60 countries across the globe, and maintains a complete end-to-end industrial ecosystem that spans every stage from raw coffee bean production to retail consumer sales. Twenty-five Belt and Road partner countries including Ethiopia, Kenya, Vietnam, and Peru supply coffee beans to the harbor, and a growing volume of products from these regions enter China through Shanghai’s Silk Road e-commerce channels before being distributed across the country.\n\nGlobal South partners have already reported tangible economic gains from existing cross-border e-commerce collaborations with Chinese enterprises. Eldor Tulyakov, executive director of the Development Strategy Center of Uzbekistan, noted that his country’s ongoing digital transformation has delivered clear commercial progress in recent years, with partnerships with Chinese platforms including Alibaba laying the foundation for Uzbekistan’s modern online retail ecosystem and opening access to hundreds of millions of global consumers. Last year, an Alibaba capacity-building initiative gave 100 local Uzbek small and medium-sized enterprises direct access to the global e-commerce market, integrating these local businesses into global value chains for the first time. Tulyakov added that Uzbekistan has recently produced its first domestic technology unicorn, valued at more than $2 billion, which now serves more than half of the country’s population and stands as a successful benchmark for inclusive digital transformation.\n\nWhile the opportunities are significant, stakeholders have noted that realizing inclusive, mutually beneficial cross-border e-commerce growth requires deeper, more balanced collaborative partnerships between China and Global South nations. Siwage Dharma Negara, a senior fellow with the Indonesia Studies Programme at Singapore’s ISEAS-Yusof Ishak Institute, explained that Indonesia is working to strike a careful balance between short-term market regulation and long-term development targets. Over the long term, the country aims to strengthen its overall economic resilience while protecting consumer interests enabled by expanded digital trade, he said.

Even as lingering cold snaps still grip Northeast China’s Jilin province in mid-April, a cutting-edge smart agricultural facility in Changchun is bucking traditional seasonal constraints to produce bountiful, high-quality cherry tomatoes year-round.

Located within the Changchun National Agricultural High-Tech Industry Demonstration Zone, the 77,000-square-meter intelligent greenhouse operated by Hengtong Ecological Agriculture Technology Development Co is a showcase of modern, data-driven agriculture. Unlike open-field farms that rely on natural weather conditions, every element of cherry tomato growth here is fine-tuned by a connected digital system: sensors woven through rows of climbing tomato vines continuously collect real-time data on plant development, feeding insights to a centralized big data platform that automatically adjusts water, fertilizer, light, temperature, air flow and heat. Every management task, from drip irrigation to environmental regulation, can be completed remotely with a single click.

First launched for construction in 2024, the facility’s 36,000-square-meter planting center is already fully operational, turning out consistent yields that outperform traditional cultivation by a wide margin. “We hit an annual output of more than 300 metric tons, with a steady daily harvest of one ton,” explained Xu Lihui, chairman of Hengtong. “On the same plot of land, our total yield is three times higher than open-field growing. Where traditional cherry tomato harvests only last around four months a year, we harvest 12 months out of the year—even during Jilin’s frigid deep winters, our vines stay heavy with ripe, plump fruit.”

The intensive, technology-driven design of the plant factory maximizes land productivity while cutting down on agricultural inputs. Growing cherry tomatoes in a sterile, soilless environment, paired with AI-powered precision control of growth conditions, has drastically reduced the need for synthetic fertilizers and pesticides. Automated transport robots and guided vehicles navigate the greenhouse by scanning ground QR codes, handling logistics tasks assigned by the central system to cut down on labor needs and reduce human error.

This focus on optimized, controlled growing translates directly to premium product quality. Ripened from flowering to maturity under consistently perfect conditions, the greenhouse-grown cherry tomatoes boast thin, crisp skin, rich juiciness and a naturally sweet flavor that has resonated with upscale buyers across China’s major cities. Today, the company’s output is in high demand at high-end supermarkets, membership-based fresh food chains and corporate bulk buyers in Beijing, Shanghai, Guangzhou and Shenzhen.

To meet growing market demand, Hengtong is already expanding its operations. By the end of 2026, the company will complete construction of a second 42,000-square-meter plant factory dedicated to cultivating high-quality seedlings for vegetables, flowers and medicinal herbs, as well as scaling up production of new specialty varieties of cherry tomatoes, cucumbers and strawberries for both domestic and international markets. A 24,000-square-meter agricultural science center will also open to the public as an educational and outreach hub.

Once the expansion is fully completed, the project is expected to deliver far-reaching benefits beyond its own production output. It will create roughly 300 local jobs for residents in surrounding communities, while driving coordinated growth in supporting local industries including logistics, agritourism and catering, unlocking simultaneous improvements to the region’s economic output, ecological sustainability and social well-being.

Across China’s major urban centers, a growing cohort of overworked white-collar professionals is redefining the traditional midday break, fueling the rapid expansion of a new consumer segment dubbed the “lunch-break economy.” Stretched thin between packed work schedules and family responsibilities, these workers are turning their one-hour midday window into a precious, paid-for period of personal control and self-care that did not exist on this scale just a few years ago.

For Lin Yihan, a 43-year-old in-house legal counsel based in Dalian, Liaoning province, this new routine has become non-negotiable. Twice a week, she walks 10 minutes from her office to a local massage studio, pays 100 yuan ($14.7) for a 60-minute full-body relaxation session, and escapes the constant demands of her open-plan office. “Usually, my day is occupied by heavy work and taking care of my family,” Lin explained. “It’s the only time when no one is asking me for anything. No emails, no WeChat messages, no urgent requests. Just 60 minutes of being taken care of.”

Lin is far from an outlier. A wide range of service and product providers are reporting soaring demand for lunch-break-focused offerings, as young and mid-career professionals prioritize mental and physical recharge over casual post-meal chats with colleagues or quick office naps. What once was reserved for a quick bite and a casual stroll is now being repackaged as a discrete, consumable self-care experience, with options ranging from 30-minute power nap sessions, express facials and head spas to high-intensity interval training (HIIT) workouts, group meditation and even oxygen therapy.

Platform data highlights the rapid growth of this fragmented new market. On domestic local services platform Meituan, one massage studio similar to the one Lin visits sold more than 19,000 60-minute lunch-break relaxation packages over the past 12 months. Across 19 additional lunch-break-focused service offerings at the same establishment, total sales hit 45,000 orders, with prices ranging between 100 yuan and 250 yuan. While lunch-time orders make up less than 25% of the studio’s total business, the volume is already substantial enough to reshape its operating schedule.

Even physical goods tailored to office lunch breaks have seen explosive sales. On e-commerce giant JD.com, sales of office napping pillows, foldable camp beds for workplaces and portable sleeping chairs have all exceeded 1 million units each in recent months.

To meet this surging demand, service providers across multiple sectors are adjusting their business models to fit the tight 60-minute midday window. In Shanghai’s bustling Jing’an Temple central business district, lunch-time head spa slots have become such a hot commodity that customers must book by 10 a.m. to secure a spot, with the most popular venues requiring reservations a full day in advance. “I walked in at lunchtime wanting a quick head wash to relax, and they told me there were no slots left,” one regular customer told local Chinese media, describing the high demand.

Fitness facilities are also tapping into the trend. At a 24-hour gym in downtown Dalian that counts more than 400 annual members paying 4,000 yuan per person for membership, nearly one-fifth of all visits during weekdays fall during the lunch break. “Many white-collar workers who work nearby have signed up for our yoga class during the busiest time at noon,” said Zhang, the gym’s manager.

One regular lunch-time gym goer, Luo, shared that his routine now revolves around maximizing the midday hour: he eats a 15-minute bento at his desk, then spends 45 minutes on a HIIT workout before returning to work. “I used to drink two espressos to get through the afternoon,” he said. “Now I just move my body for 45 minutes. It’s more effective than any amount of caffeine.”

Public health events have also helped raise broader awareness of the importance of rest and stress management, with niche activities popping up to meet growing interest. Earlier this year in Huzhou, Zhejiang province, a public sleep competition invited 1,000 participants to set aside their smartphones, wear masks and earplugs, and focus on intentional rest, with the goal of raising public awareness of sleep health among overworked urban professionals.

Unlike mature, well-documented sectors such as e-commerce or ride-hailing, the lunch-break economy remains a fragmented phenomenon spanning wellness, beauty, fitness, hospitality, food service and furniture retail. But as urban work pressure continues to rise and professionals increasingly prioritize personal well-being alongside career advancement, industry observers expect the segment to continue its rapid expansion in coming years.

Escalating geopolitical tensions across the Middle East have sparked widespread concerns over potential ripple effects on global commodity and energy markets, with risks of cascading cost increases hitting agricultural sectors worldwide. But for China, the world’s largest grain producer, domestic fertilizer markets have remained largely resilient, backed by robust domestic output, strategic government reserves, and targeted regulatory measures that have offset external volatility, agricultural officials and industry analysts confirm.

Li Guoxiang, a senior researcher at the Chinese Academy of Social Sciences’ Rural Development Institute, explained that the conflict’s economic impact is primarily projected to travel through three key channels: disrupted fertilizer manufacturing, interrupted energy transit routes, and shaken global commodity trading systems. The Gulf region accounts for roughly 20% of global fertilizer output and nearly 46% of the world’s total urea supply, placing global markets at risk of major shortages if shipping through the critical Strait of Hormuz is interrupted. Combined with the sharp upward pressure on global oil prices triggered by regional unrest, energy-reliant fertilizer production facilities around the world could be forced to scale back operations or cease production entirely, Li noted.

A reduced global fertilizer supply would almost certainly push global prices upward, raising input costs for farmers and potentially leading to reduced fertilizer application that could cut global crop yields and drive up global food prices. In the immediate aftermath of the latest tensions escalation, China saw minor short-term market reactions: domestic grain prices posted a brief, modest rebound, while fertilizer and diesel prices ticked up slightly.

However, experts and industry leaders emphasize that China’s well-established domestic fertilizer infrastructure has effectively absorbed these external shocks. The country maintains a high rate of fertilizer self-sufficiency, supported by proactive government supply management and a national strategic reserve system. “Overall, both grain and fertilizer markets have gradually returned to steady levels, which lays a solid foundation for another promising grain harvest this year,” Li said.

Recent industry data confirms that China’s overall fertilizer supply remains abundant, especially for two of the most widely used varieties: urea and compound fertilizers. Nearly 80% of China’s domestic urea production capacity relies on coal-based manufacturing, creating a largely self-reliant supply network that is less vulnerable to global energy market disruptions than production systems dependent on imported natural gas.

Fu Chunhua, deputy director of the China Agricultural Means of Production Association, noted that since the start of the 2026 spring planting season, domestic urea producers have operated at nearly 90% capacity, a higher utilization rate than recorded in the same period in 2025. At a large-scale production facility in Linyi, Shandong Province – one of China’s key agricultural and fertilizer manufacturing hubs – the plant churns out 3,000 to 4,000 metric tons of high-nitrogen fertilizer daily, with daily sales matching that output, according to the facility’s general manager.

Across Shandong, spring fertilization for the new planting season is nearly complete, with consistent supply and largely stable pricing. Nitrogen fertilizer prices have held steady throughout the planting rush, while compound fertilizer prices have seen a moderate 10% to 15% increase compared to pre-Chinese New Year levels. National aggregate data reflects this modest growth: in early April, the average ex-factory price of domestic urea rose just 0.12% month-on-month and 1.69% year-on-year, while compound fertilizer prices increased 1.78% month-on-month and 14.17% year-on-year.

China’s national fertilizer reserve system has also played a central role in stabilizing markets. The policy builds up stockpiles of key fertilizers during off-peak demand seasons, then releases stored supplies during peak planting periods to curb excessive price volatility. In Shandong alone, local supply and marketing cooperatives hold 170,000 tons of reserved fertilizer, which was distributed to markets ahead of the spring planting rush to ease upward price pressure.

Distribution efficiency has also improved significantly in recent years, with many regional networks integrating digital tools to streamline access for farmers. In multiple major agricultural regions across China, digital platforms now allow farmers to input field-specific data to receive customized fertilizer recommendations, with orders fulfilled directly through local supply outlets, cutting delivery times and reducing logistical costs. Many large-scale commercial farming operations have also adopted proactive risk management strategies, securing their fertilizer supplies months in advance – often immediately after the autumn harvest – to insulate their operations from seasonal and geopolitical price swings.

Despite the current stability of domestic fertilizer markets, analysts note that rising global energy prices remain a lingering concern. China’s highly mechanized agricultural sector relies heavily on diesel for farm machinery and transportation, so sustained higher fuel costs could push up both production and logistics expenses, potentially creating upward pressure on grain prices later in 2026.

Li emphasized that the duration and intensity of the Middle East conflict remain unpredictable, underscoring the need for strengthened market monitoring and early warning systems. Chinese authorities should enhance market oversight, guide public expectations to prevent unnecessary panic, and guard against the spread of misinformation about global food shortages, he said. If agricultural input costs rise sharply in the coming months, policymakers could introduce temporary targeted subsidies for farmers, covering fertilizer and fuel expenses to preserve planting incentives and protect national food production capacity.