subsidies

JD.com has entered the travel and hospitality market, launching the “JD Hotels PLUS Member Program” with commission-free services for hotels. The company aims to leverage its supply chain expertise and food delivery services, offering competitive pricing and eliminating bundled services. While initial airfare prices match competitors, hotel bookings show subsidy benefits. JD.com is also actively recruiting industry professionals to bolster this sector.

In June 2025, reports emerged of fraud within the tech sector, exploiting a new government subsidy program for digital devices. “Scalpers” are reportedly using students to purchase subsidized items and resell them, netting profits of up to 300 yuan per device. This illegal activity involves dedicated chat groups and circumvents in-person verification. Legal experts warn that this scheme, even with small amounts, could constitute fraud, leading to penalties.

Major discounts on premium audio products are currently available, including high-end home audio systems, noise-canceling headphones, and gaming headsets. Leading retailers offer substantial savings, further reduced by government subsidies. Featured products include the B&O Beosound A5, Sony WH-1000XM6, SteelSeries Nova Pro, and various models like Huawei FreeBuds Pro 4, offering diverse audio solutions at competitive prices for a limited time.

Vipshop is concluding its 618 mid-year sale with a final push, launching major discounts tonight at 8 p.m. Expect significant reductions on various products, including 15% off or more. Flash sales from June 15th to 20th and limited-time subsidies offering up to ¥250 off select items (e.g., Tory Burch, COACH, Dyson) aim to boost sales. The “New Trend Bazaar” and “Final Sprint” will provide more deals before the event ends on June 21st.

Commerce Secretary Howard Lutnick testified before Congress, indicating potential renegotiations of the Biden administration’s semiconductor subsidies under the CHIPS Act due to concerns of overgenerosity. The administration is reevaluating grants, aiming for better returns on investment, and hinting at cancellation of some deals. TSMC’s increased investment commitment is cited as a positive example. The industry anticipates the impact of revisions impacting future semiconductor independence.

Ctrip CEO James Liang advocates for policies to boost China’s birth rate, viewing children as crucial for the nation’s future. His plan focuses on financial incentives: monthly cash stipends per child, tax relief for families with multiple children, and mortgage interest rebates. He proposes a lump-sum payment per child and emphasizes the need for a holistic approach encompassing childcare and education.

Meituan reported strong Q1 revenue of 86.6B yuan ($11.9B), up 18% YoY, reinforcing its 65% dominance in China’s food delivery sector. CEO Wang Xing vowed to defend market leadership as JD.com injects $1.4B into its new “100 Million Subsidy” program, covering 126 cities with 300,000 partnered restaurants. While JD offers up to 25-yuan daily coupons to challenge competitors, Meituan counters with AI-driven logistics and enhanced membership benefits. Analysts suggest the rivalry may pressure margins but spur service quality improvements, accelerating industry consolidation in the $150B market.