☕️ Good morning friends, 

At asiabits, we're always on the hunt for the most exciting business ideas to share with you.

Today’s edition is a little different, though. You probably shouldn't try to learn from the scam story in our Top Bit—and we’re not so sure about this one either (or are we?):

In Tokyo, there’s a bookstore that sells only one single book title per week.

Genius or madness? We haven’t quite made up our minds yet...

The Asian rally is faltering: Sentiment is weighed down by losses from the US, where Trump is putting defense contractors under pressure and oil prices are retreating following announcements regarding Venezuelan crude deliveries.

After a strong start to the year, the region appears to be taking its first breather.

TOP BIT

🎰 A crypto billionaire shakes the world

After months of investigation, Cambodia has arrested billionaire Chen Zhi, head of the notorious Prince Group, and extradited him to China.
He is accused of running a global empire of crypto fraud, human trafficking, and forced labor camps.

Details

🏢 $30 million per day: According to US indictments, Chen Zhi allegedly boasted that his fraud networks brought in $30 million daily. The Prince Group operated at least 10 forced labor compounds in Cambodia.

⛓️ Modern slavery: People were lured into these compounds under false promises, imprisoned, and forced through violence to scam hundreds of people online every day.

💔 The "pig butchering" scheme: The forced laborers spend weeks building romantic relationships with their victims ("fattening the pig"), then persuade them to invest in fake apps until all their savings are gone ("butchering").

• In 2024 alone, over $4 billion was stolen worldwide this way.

🏛️ Global hunt: Since Chen Zhi's Prince Group operated companies in nearly 30 countries, assets in Singapore, Hong Kong, and London were simultaneously frozen.

💰 Record haul: In October, the US seized 127,271 Bitcoin worth $15 billion at the time—the largest crypto seizure in history.

Good to know

The insidious part of this system: Many of the scammers who contact you online are victims themselves. They are tortured in the camps if they don't meet their "fraud quotas."

China is now responding with extreme severity, as hundreds of thousands of Chinese citizens are among both the victims and the forced laborers.

📊 All details & data: BBC, Asia Financial, AFP, SCMP

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NUMBER OF THE DAY

That is how many locations IKEA is closing in China as of February 2.

🇸🇪 A "Screw" Loose in the Housing Market: IKEA is reacting to the ongoing property crisis and weak consumer sentiment in China. The closures affect locations in Shanghai, Guangzhou, and Harbin.

📉 Flat-pack Pricing: With an investment of 23 million USD, IKEA is slashing prices on 150 bestsellers. As the market for furnishing new homes collapses, the focus is shifting radically toward the renovation and replacement business.

Watch: IKEA is choosing precision over scale. More than ten small-format city stores are set to open in metropolises like Beijing and Shenzhen. China remains a strategic priority, but the footprint is becoming more compact, digital, and integrated into the daily lives of urban dwellers.

MARKET BIT

💊 China's pharma deals break records

🤝 Licensing fever at new high: In 2025, Chinese pharma companies closed 157 out-licensing deals. Total volume: $135.7 billion. In 2024, there were 94 deals worth $51.9 billion.

🚀 From niche to must-have: Out-licensing means Chinese companies license drug compounds to Western pharma giants after starting clinical trials—in exchange for upfront payments, milestones, and revenue shares.

🧬 The biggest hits: GeneQuantum landed a $13 billion deal for cancer drugs. 3SBio licensed an oncology drug to Pfizer for $6 billion. Hengrui followed with $12.5 billion from GSK for a COPD medication.

⚡ Regulators on fast-forward: China approved 76 innovative drugs in 2025. That's 58% more than the year before. Many are biologics and new cancer therapies.

🌍 Patent anxiety as buying motive: Western pharma giants like AstraZeneca and Merck are desperately searching for new pipeline candidates. By 2030, around $171 billion in annual revenue is at stake from expiring patents.

Background

Chinese companies now account for around 20% of all global drug development projects. For comparison: The US accounts for about 40%, and the five largest EU countries combined for 11%.

Reforms in approval, trials, and regulation have allowed China's biotech sector to mature rapidly. Despite new political risks like the US Biosecure Act, the direction is clear: Anyone looking for new drugs can't ignore China anymore.

👉🏻 Full Story: SCMP, GaBi

ONLY FOR YOU

We’ve compiled our best insider tips for your China trip across 33 pages. 🧡

So you can get the most out of a visit to the Middle Kingdom.

And just for you, enjoy 30% off with code “Asiabits88”.

HEAD OF THE DAY

🇮🇳 Falguni Nayar

💄India’s beauty billionaire

Falguni Nayar is the founder, CEO, and driving force behind Nykaa, India’s leading beauty and lifestyle retailer. After nearly 20 years as a top investment banker, she quit her job and launched Nykaa in 2012 to bring curated beauty products online and into retail stores across India.

• Her big break came when Nykaa went public in 2021, making her India’s richest self‑made female billionaire.

Today, Nykaa serves tens of millions of customers, operates hundreds of stores, and sells thousands of international and local beauty, personal care, and fashion brands.

OUR PARTNER

HIGHLIGHTS 

🚘 China slams brakes on car imports: Vehicle imports into China are set to drop by 30% this year, falling below 600,000 cars for the first time in 16 years. Cheaper domestic EVs are pushing out foreign brands, hitting German and U.S. imports hard. While most imported cars still run on petrol, China’s own EVs now make up over half of total sales. This shift clearly shows China’s rise from major importer to global export powerhouse, with shipments nearing a record of 7 million vehicles.

🌱 Singapore launches world’s tallest vertical farm: Greenphyto’s 23 m-high, S$80 million facility aims to produce thousands of tonnes of vegetables annually and reduce the city-state’s reliance on imported food. Fully automated and powered by AI and robotics, the farm uses innovative hydroponic towers and energy-efficient LED lighting to cut costs. The farm opens despite rising costs in the sector and the government scaling back local production targets.

🌐 China signals pressure on Japan: China warned it may restrict rare-earth exports to Japan, raising alarms in Tokyo and recalling a 2010 trade standoff. Beijing hinted that medium and heavy rare earths, key for EV motors, electronics, and defense, could be affected. Analysts say even a short supply cut could cost Japan billions and hit industries from autos to electronics. Tokyo’s options to respond remain limited, given China’s global dominance in production.

COUNTRY READS

🇮🇳 India’s economy is set to grow 7.4% in fiscal 2026, despite trade tensions and global uncertainty. More on this.

🇹🇭 Tomorrowland hosts its first Asia festival in Thailand this December, expecting over 50,000 attendees per day. More on this.

🇰🇷 Hyundai plans to deploy human-like robots in its factories from 2028 using Boston Dynamics’ Atlas. More on this.

BITS TO DO

✅ Make the national dish of Uzbekistan easy at home.
✅ Survive a 22h flight like a pro.
✅ Listen to why 2025 was a turning point for China’s Tourism Industry.
✅ Watch South Korea’s most popular cooking competition reality show.
✅ Get ready for your next China trip with our asiabits China Guide.*

^{*Buy now and receive 30% with the code: Asiabits88. Thank you :)}

FORTUNE COOKIE

Try this in case you aren’t awake yet… 🌬️

MORE ASIABITS

• All the latest AI trends from Asia — every Wednesday, exclusively with us.

• Champagne & Chopsticks — your Sunday guide to Asia’s best insider spots.

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