China Press Review – April 25, 2019

Press review

Trade war with US could lead to economic ‘cold war’ for China, Beijing researchers say
‘China’s Economic Security Outlook’ sees tit-for-tat tariff war with the US and the broad hostility as a major risk endangering China’s ‘economic security’ Beijing and Washington have conducted nine rounds of trade negotiations ahead of an eventual meeting between Chinese President Xi Jinping and Donald Trump

podcast : US-China trade talks: Is the end near?
The US and China are preparing for another round of trade talks. Will they lead to a breakthrough? Kate Moody speaks to Guntram Wolff, the director of European think tank Bruegel, about what’s to come and what’s at stake.

China aims to address ‘debt trap’ criticism at second Belt and Road Forum
Beijing seeks to resolve growing concerns about its global infrastructure push in a communique that 37 world leaders will consider on Saturday Greater emphasis said to be placed on projects’ financial and environmental sustainability

Belt and Road: China showcases initiative to world leaders
Flower beds reading ‘Chinese Dream’ welcome delegates to the Belt and Road forum in Beijing
World leaders are gathering in Beijing from Thursday for a summit on China’s Belt and Road initiative amid growing criticism of the project.

Is This the End of Belt and Road, or Just the Beginning?
On April 25-27, China’s government will host the leaders of dozens of countries to celebrate the Belt and Road Initiative (BRI), the signature foreign policy program of Xi Jinping. Since its founding in October 2013, the BRI now covers more than 150 countries and encompasses billions of dollars of deals. In late March, Italy became the first G-7 nation to endorse Belt and Road. But meanwhile, there are signs that Beijing, and the rest of the world, are less than ecstatic about the BRI. In a February 2019 essay entitled“Will China Let Belt and Road Die Quietly?,” the scholar Minxin Pei writes that “In all likelihood, we will see a significant decline in the hype Chinese official media outlets devote to BRI. It is also a safe bet that Beijing’s funding for BRI will decline measurably this year—and in the coming years.” Is 2019 the beginning of the end of BRI? Or are reports of its death premature? —

From new faces to new funds, what has changed in the Belt and Road Forum?
It has been two years since Beijing hosted a forum for the participants and supporters of its global trade plan, and there have been some developments in the state of play Three-day event is diplomatic highlight of the year for China, with leaders of about 40 foreign governments set to attend

FP’s Guide to China’s Belt and Road
The best pieces to read as leaders meet in Beijing.
FP’s Guide to China’s Belt and Road

A Slimmer Belt and Road Is Even Scarier
Switching the focus from roads and bridges to digital infrastructure will only further entrench China’s influence in host countries.

Rising rate risks erode global interest in emerging markets’ infrastructure: survey
Joint report points to dip in enthusiasm for investing in the sector but China still among the developing countries with the most potential

Belt and Road Forum: Is the China-Pakistan Economic Corridor failing?
Pakistan’s Prime Minister Imran Khan is participating in the second Belt and Road Forum in Beijing amid reports that the multi-billion dollar China-Pakistan Economic Corridor project is not really moving forward.

Building a better Belt and Road
Special focus is needed on trade facilitation, financial cooperation, and digital connectivity. This includes streamlining non-tariff measures, paperless trade, services trade and investment promotion, soft infrastructure, and intertwining projects with the Fourth Industrial Revolution. With the arrival of the Indo-Pacific strategic focus among powers, the Chinese authorities may well be in the process of redesigning their BRI vision. BRI has the potential to transform trade in the world, provided it adds transparency and governance, and becomes a global initiative with full respect to countries’ sovereignty and territorial integrity. China needs to demonstrate that the BRI is a mutually collaborative project, rather than one typically owned by China. Only this way can China erode the trust deficit

Building a better Belt and Road

Belt and Road forum: China’s ‘project of the century’ hits tough times
Raft of countries including Turkey have refused to attend latest summit amid growing concern about debt diplomacy

Belt and Road test for Europe
The complicated, hot-and-cold relationship between Europe and China takes another turn this week, as several European Union (EU) leaders break ranks to attend the Belt and Road summit in Beijing. The list of European leaders attending the showcase for China’s global influence – held Thursday through Saturday – is dominated by eurosceptics and populists eager to vex Brussels, as well as countries hard-up for investments.

How Chinese firms view ‘Belt and Road’
Dozens of countries have signed up to China’s global investment initiative. Chinese companies say they see big opportunities ahead.

China’s outbound investment shows signs of life in first quarter, but analysts are wary
Outbound investment by Chinese companies and institutional investors totalled 168.8 billion yuan (US$25.12 billion) in the first quarter

How has Digital Changed Business Environment in China?
China ranks third among the largest digital and technology investments and is also the largest e-commerce market in the world with nearly 40% of total e-commerce transactions worldwide. China is home to one-third of the world’s unicorns.

How has Digital Changed Business Environment in China?

Huawei fights back against claim in research paper that it is government funded and controlled
Huawei says there is no state-owned funds in the company Comments also come after The Times reported that the CIA had told spy chiefs that Huawei has taken money from the PLA and other state entities

Huawei hits out at claims of state control through ’employee’ stake
Staff lack direct stake, admits executive, but have rights of shareholders

The Focused Generation comes of age: a definitive guide to China’s Gen Z market
We take a look at key studies out of China’s user experience and big data research centers, to see how this next online user group is set to disrupt the status quo.

The Focused Generation comes of age: a definitive guide to China’s Gen Z market

WeChat — The Tie that Binds Luxury Brands’ Events in China
WeChat Mini Programs are becoming the gold standard for event marketing. Yves Saint Laurent, the well-known French luxury fashion brand, launched a hotel-themed pop-up store at the Shanghai Modern Art Museum at the end of last year.

WeChat — The Tie that Binds Luxury Brands’ Events in China

China’s e-commerce start-ups lose favour with private equity funds as Beijing-backed chip makers steal their thunder, study finds

The number of private equity funds targeting China’s e-commerce and internet businesses has fallen dramatically, according to a Bain & Co survey

As Qualcomm’s server chip bid stumbles, China joint venture shuts down
A joint venture established by a US chip giant and the government of one of China’s poorest provinces and that was expected to provide a boost to the country’s server chip sector will shut down by the end of April, according to The Information.

As Qualcomm’s server chip bid stumbles, China joint venture shuts down

Shanghai can be made a global financial hub – if China fixes some fixable problems
With one year to go before the deadline, Shanghai still doesn’t have what it takes to be a global trading centre. China’s plans for Shanghai are going the way of its other promises: it talks about being open but keeps markets controlled

The Chinese state-owned tech company supplying signal-boosting laser amplifiers to the world’s largest financial centres
Report reveals that Wuhan-based Accelink’s gear has been used in West for a decade Its clientele includes Huawei and it enjoys Nokia’s ‘complete trust’

Why it makes good business sense to focus on environmental, social and corporate governance practices
Firms need to show the value they deliver – not only for shareholders but for society as a whole Companies that follow good ESG practices also tend to have better financial performance

Hong Kong and the Greater Bay Area can play a key role in the development of China’s bond market
As the financial sector enters a ‘new investing age’, Hong Kong, Macau and Guangdong, as part of the Greater Bay Area, can pool their strengths to bring investors to China’s financial markets, especially its bond market

Amazon’s cloud business to launch in Hong Kong as competition with Chinese rivals heats up
The latency for Hong Kong businesses using Amazon Web Services’ infrastructure in the city could be reduced from 100 milliseconds to 10 milliseconds

Alibaba’s cloud unit widens its lead in Asia over Amazon, Microsoft
Alibaba’s cloud services arm retained its leadership position as the top provider in Asia in 2018, according to Gartner, which helped narrow the gap with its two rivals in the global market. The Chinese e-commerce giant accounted for 19.6% in Asia markets for Infrastructure as a Service (IaaS) and Infrastructure Utility Services (IUS). Globally, Amazon still leads with more than 30% to Alibaba’s nearly 5% market share. However, Amazon’s regional market share weakened to 11%, while Alibaba’s share increased by nearly a third from 2017.

Briefing: Alibaba’s cloud unit widens its lead in Asia over Amazon, Microsoft expands one-day intra-city deliveries has rolled out intra-city logistics services targeting individual consumers in a partnership with Dada-JD Daojia, the company’s grocery delivery joint venture in which it holds a 47% stake. Mainly targeted at the delivery of food, medicine, consumer electronics, apparel, and groceries, the express logistics service will operate in Beijing, Shanghai, Guangzhou, Shenzhen, and Tianjin. A package sent at 6 p.m. from Beijing will reach Shanghai at 10 p.m. the next day, the firm told local media.

Briefing: expands one-day intra-city deliveries

China Investment Trends: Investment tracking platform for an international audience
China is known for following the innovations of other countries. Three or four years ago, it was common to hear startups pitch themselves as the Google, Facebook, Twitter, or [insert name of well-known Western tech company] of China. Times have changed. We hardly ever hear that phrase anymore.

China Investment Trends: Investment tracking platform for an international audience

China Reinforces IP Laws to Protect Trademarks, Trade Secrets
China is coming down heavily on intellectual property theft in the country with amendments to key laws that will strengthen protections for trademark rights and trade secrets.

China Raises Top Fine for Trademark Infringement, Tightens Rules on ‘Squatting’
China’s legislature has increased the maximum fine for trademark infringements to 5 million yuan ($743,000) and cracked down on the phenomenon of “trademark squatting.”

Indian court lifts ban on TikTok video-sharing app in victory for China’s Bytedance
App was earlier prohibited because of concern it exposed children to pornography and other disturbing content Bytedance said ban led to financial losses of up to US$500,000 a day and had put more than 250 jobs at risk

Volkswagen to build electric vehicle plant with JAC in China: local government
German automaker Volkswagen AG’s joint venture with China’s Anhui Jianghuai Automobile Co (JAC) plans to invest 5.06 billion yuan ($750.83 million) in a new electric car factory in the eastern Chinese city of Hefei, according to local authorities.

Is China losing the battle against an incurable pig virus?
Global pandemics that impact on food supplies are scary things.

China on track to officially ban ‘deepfakes’
The Standing Committee of the National People’s Congress has drafted a change to its Civil Code Personality Rights specifying that technological forgeries of a person’s likeness could violate their portrait rights. According to Synced, the revised Civil Code states that deepfakes cannot be used to replace a person’s face without their informed consent, and that the general proliferation of identity-falsifying technology is dangerous to both national security and civil society.

Briefing: China on track to officially ban ‘deepfakes’

Xi poses a riddle and reignites speculation about his successors
Talk of a ‘President Chen Min’er’ and ‘Premier Hu Chunhua’ swirl in capital

China withdraws PLA Navy anniversary invitation to French warship after it enters Taiwan Strait
Source says Beijing feels US egged France into making contentious trip and China had expected its guests to understand sensitivities over the waterway

New missile gap leaves US scrambling to counter China
Many of the missiles in Beijing’s arsenal now rival or outperform those of the United States, puncturing the protective umbrella that for decades America has afforded its regional allies South Korea, Japan and Taiwan.

Beijing’s P2P owners and senior executives hit with travel ban as China cracks down on online lending
Chaoyang district posts notice on social media account banning staff from peer-to-peer lending platforms from leaving China’s capital city without approval Post later deleted, but highlights China’s willingness to clean up the sector after the rapid development of often risky online lending

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