09/12/2025

BIZ & FINANCE TUESDAY | DEC 9, 2025

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China vows to expand demand with more proactive policies

SHANGHAI: Eli Lilly’s popular drug Mounjaro will be added to China’s state run health insurance scheme from Jan 1 for patients with type 2 diabetes, the National Healthcare Security Administration said in a website notice on Sunday, a move which analysts say could put pressure on competitors. Inclusion in the national reimbursement list makes drugs more widely available to the public in a country with a population of 1.4 billion, but an increase in sales volume is often mitigated by lower prices. Mounjaro, a once-weekly injectable therapy, was introduced in China in January this year following the launch of Ozempic, a similar diabetes therapy from rival Danish drugmaker Novo Nordisk, in 2021. Ozempic was first added to China’s reimbursement list in 2022. Sales of Ozempic in the greater China region rose to 5.76 billion Danish crowns (RM3.7 billion) in 2024, according to Novo’s annual report. Lilly did not immediately respond to a request for the price of Mounjaro as a diabetes treatment under China’s reimbursement list – a figure negotiated with the government. Macquarie Capital analysts wrote in a note yesterday that Mounjaro could take market share away from Novo and Innovent Biologics, another obesity and diabetes drugmaker. “Even if approved and reimbursed only for diabetes, Chinese patients are too smart. Tirzepatide will be used offlabel for obesity,” Tony Ren, head of Asia healthcare research at Macquarie Capital, told Reuters. Mounjaro is also sold for obesity and obstructive sleep apnea in China. “Although obesity treatments are typically priced at a premium compared to diabetes, the price cut for Mounjaro is likely to reshape the overall pricing structure for GLP-1 drugs, which could also affect Innovent’s Mazdutide pricing,”Cui Cui, head of Asia healthcare at Jefferies, told Reuters. Shares in Innovent Biologics, which is approved to sell the diabetes and obesity drug mazdutide in China , fell 8% yesterday. Patrik Jonsson, Eli Lilly’s international president, said in an October earnings call that Lilly had seen an “initial stocking”in the markets it had launched Mounjaro outside the US, with the big ones in the second quarter being China, Brazil, Mexico and India. “Since then, we have seen a lift in the performance also in those markets in Q3 and a continued very strong performance globally.” – Reuters Eli Lilly’s Mounjaro added to China’s insurance list for diabetes treatment

stimulus to lift domestic demand. Hampered by a global slowdown, a protracted property crisis and local governments straining under debt, officials are finding it hard to jump-start activity, putting renewed focus on the need for economic reforms. Beijing has signalled a shift toward supporting household consumption and rebalancing the economy over the next five years to tackle worsening structural imbalances, but such measures may take time to deliver results. Although the Xinhua report did not mention “household consumption” directly, it said the country should “adhere to the principle of domestic demand taking the lead and build a strong domestic market”. “We should put people’s livelihood first and strive to do more practical things for the people.” Investors and economists are now waiting for the annual Central Economic Work Conference in coming days. – Reuters

Outbound shipments to the US dropped 29% in November year-on-year, but exports to the European Union grew an annual 14.8% last month and the fast-growing Southeast Asian economies took in 8.2% more goods over the same period. China will better coordinate its domestic economic work and international trade battles next year, Xinhua said. “I think this means the economic policies for next year will be arranged more flexibly than before,” said Zhiwei Zhang, president and chief economist at Pinpoint Asset Management. “Despite the truce between U.S. and China on trade, China still expects high uncertainty next year. The domestic policies may need to be adjusted depending on the external economic environment.” Policymakers are also facing a dilemma over whether to press ahead with tough structural reforms amid external challenges or roll out more

o Exports top expectations on strong sales to non-US markets

BEIJING: China will keep expanding domestic demand and support the broader economy with more proactive policies in 2026, the Politburo, a top decision-making body of the ruling Communist Party, was cited as saying yesterday by state media Xinhua. The remarks about a “more proactive fiscal policy” and “appropriately loose monetary policy” point to a high budget deficit, debt issuance and additional rate cuts next year to reach a growth target likely to remain at around 5%, analysts said. “I expect next year’s growth target to be set at around 5% again, as China can achieve that relying on its robust exports. Even if exports face temporary challenges, the government can use fiscal policy to fill the gap,” said Dan Wang, China director at Eurasia Group.

The second-largest economy is on track to reach this year’s growth target of around 5%, but faces headwinds from a prolonged property slump, weak consumer demand, excess factory capacity in some sectors and declines in infrastructure-led investment. Even though China and the US reached a trade truce, Chinese manufacturers are still ramping up efforts to diversify their export markets, pursuing closer trade ties with Southeast Asia and other emerging markets, and leveraging Chinese firms’ global footprint to establish new production hubs for low-tariff access. Yesterday’s customs data showed China’s trade surplus for the 11 months of the year topped US$1 trillion for the first time. world’s

An aerial view shows vehicles awaiting to be exported at the Nanjing Port Longtan area operated by Jiangsu Port Group

yesterday. – AFPPIC

Indian auto dealers expect sales to hold firm MUMBAI: India’s retail vehicle sales by dealers are expected to remain steady in December, a dealers’ body said yesterday, driven by a rebound in demand following recent tax cuts that made some cars cheaper and ongoing year-end incentive schemes for consumers. Overall sales grew 2.14% in November, the Federation of expectations of a slowdown after the festive season. Automobile dealers cited confidence, pointing to stronger enquiry pipelines, the ongoing wedding season, improved inventory levels as well as year-end consumer schemes. 50% and on small cars to 18% from 28% in a bid to spur consumer spending and bolster growth amid steep US tariffs. In October, the first full month after the tax cuts took effect, dealers’ sales to customers grew 40.5% – a record high.

October, FADA said. Last week, car market leader Maruti Suzuki said there was a 37% on-year jump in retail sales of four of its most affordable small cars for November. This was more than double the 17% growth seen for some of its larger SUVs in the 40%-tax category. The demand for cars was outpacing supply, Maruti’s top sales executive, Partho Banerjee, saidl.

About 64% of FADA’s members said they expect growth in sales in December, while 74.3% said they see sales growth for the next three months. For the next three months, FADA expects January price hikes, wedding-season demand and new 2026 models to spur sales, supported by liquidity from crop sales after harvest and government initiatives. – Reuters

India, in late September, cut goods and services tax on sports utility vehicles with engine capacities of more than 1,500 cc to 40% from about

Passenger vehicle inventory, or average time a vehicle stayed in a showroom, has come down to 44-46 days in November, from 53–55 days in

Automobile Dealers Associations (FADA) said, with sales defying