China Press Review – August 16, 2019

Press review

Is Trump escalating the US-China trade war with shock tariffs or is he simply posturing?
If Trump means to push the US-China trade war to new heights, the global economy could be in for a catastrophic shock. So let us hope the US president is merely bluffing

‘Trade war could last a decade’: why Chinese firms are preparing for long haul
Adjusting prices and looking to new markets are among the options for companies affected by trade tensions with the US Both countries’ economies have felt the impact, but there are reasons why it may suit Donald Trump to prolong the stand-off

What Chinese products will avoid extra American tariffs – for now?
The US has pushed back imposition of additional duties on various goods until December to avoid a hit over the Christmas shopping season

Germany and China Hit Hard by Trade War, New Data Indicates
The German economy shrank in the second quarter and may be headed toward recession. Growth of Chinese factories was the slowest in 17 years.

Cracks show in electronics supply chain as trade war continues: report
The effects of the US-China trade war on the global supply chain for consumer electronics are beginning to show, reported Bloomberg on Thursday. Many manufacturers are moving operations out of China amid the uncertainty.

Cracks show in electronics supply chain as trade war continues: report

China’s economy is in a fix, but authorities are right to resist more stimulus measures
Despite the country’s many economic challenges, cushions of support exist to prevent a crash Officials have the tools to act if a more aggressive rescue is needed

China’s economy still strong despite trade and tech war
There has remained continuing newsflow on the US-China trade war. What about the condition of the Chinese economy? The view here remains that Beijing is in control, while trying to avoid being panicked by trade war concerns and the like into a potentially destabilizing aggressive stimulus.

China’s Economic Outlook in Six Charts
China’s economic growth is moderating and is projected to be 6.2 percent in 2019. In its latest annual assessment of China’s economy, the IMF found the quality of growth had improved in three ways in 2018. First, the pace of debt accumulation had slowed. Second, the financial system is better regulated and supervised. Finally, the current account surplus is no longer excessive. But trade tensions cloud the outlook, and reforms need to deepen if this progress is to be continued

China’s Economic Outlook in Six Charts

The standard account of China’s economic rise focuses on its state capitalism, whereby the government, endowed with huge assets, can pursue a wide-ranging industrial policy and intervene to mitigate risks. This explanation is wrong

To Conquer World, China Needs to Get Smarter
A poorly educated workforce is a major impediment to its hopes of challenging the U.S. in technology.

Alibaba posts 42 per cent gain in quarterly revenue, defying slowdown in China
China’s largest e-commerce company saw its latest quarterly revenue reach US$16.7 billion amid the domestic economy’s slowdown Net income jumped 145 per cent to US$3.1 billion yuan

Alibaba buying Kaola for $2B – report
Alibaba (NYSE:BABA) will acquire NetEase’s (NASDAQ:NTES) cross-border e-commerce arm for $2B in cash, according to Bloomberg citing Caixin sources.

Alibaba rethinks Hong Kong listing amid political turmoil
Chinese companies wary despite overtures from city’s exchange

China’s social e-commerce sector to more than double to US$185 billion in sales by 2021
Gross merchandise value for social e-commerce will rise from a projected 1.3 trillion yuan this year to 2.86 trillion yuan by 2021

China’s service industry becomes dominant force for economic development
China’s ever-growing service industry has become the dominant driving force for national economic development, according to data released by the National Bureau of Statistics (NBS).

‘Made in China’ at risk as workers flock to service sector
The once mighty manufacturing industry struggles to compete in wages

China is the world leader in special economic zones but the results are erratic at best, with many being underused or failing to benefit the wider economy
In a country where liberalisation is contentious and vested interests are many, SEZs have provided Beijing with avenues for experimentation. As a result, China has more than half the world’s total special economic zones, with dozens in Shanghai alone

China plans to allow foreign investment in VPN services as part of Beijing trial in latest opening up move
Currently, China’s Great Firewall blocks access to 135 of the world’s top 1,000 websites, including Google, Facebook, Twitter, and YouTube The United States have previously demanded China to ‘completely open up its internet’

Global fintech investments nosedive as Chinese fundraising falls sharply, report says
US remains world’s biggest fintech market with US$12.7 billion in first-half fundraising, according to Accenture Fintech investments in China totalled US$820 million in the first half of 2019 vs US$17.7 billion a year earlier, Accenture says

Chevrolet’s new China-only EV is called the Menlo and it looks good
The performance seems fairly average based on leaked specs, but Menlo is a real win in the looks department.

Spain’s El Corte Inglés Shows Retailers How to “Tango” With Chinese Shoppers
In recent years, El Corte Inglés has made inroads in attracting not just tour operator-led groups stocking up on Louis Vuitton and Gucci, but also younger solo travelers hoping to nab a wider range of brands both large and small while on trips to Spain. (As well as Spain-based Chinese students or expats.) According to 2018 estimates, El Corte Inglés receives 150,000 visitors from China each year, a figure that will continue to grow along with the number of direct flights between Spain and mainland China.

Spain’s El Corte Inglés Shows Retailers How to “Tango” With Chinese Shoppers

Baidu falls further behind among China’s biggest tech firms as Meituan, NetEase overtake in market value
Baidu’s market cap has stagnated even as peers like Alibaba and Tencent saw their valuations surge Netease’s valuation passed Baidu on Wednesday at US$33.5 billion

China Resources Beer explores possibility of minority stake in the Asian unit of world’s largest brewer
AB InBev scrapped plans for a US$9.8 billion listing in Hong Kong of its Asian unit in July China Resources Beer share price surges 7.84 per cent to all-time high on net profit report

China’s small banks still struggling to obtain funds to lend three months after first bank failure in 20 years
Baoshang Bank was taken over by the government in May, with HengFeng Bank and the Bank of Jinzhou also since requiring help Slowing Chinese economy is putting pressure on the loan portfolios of small banks, many of whose customers have been hit hard by the US-China trade war

Senior Official Prosecuted for Accepting $64 Million in Bribes
Xing Yun, the former vice chairman of Inner Mongolia’s congressional standing committee, becomes the ‘fattest tiger’ nabbed to date under Xi Jinping’s anti-corruption campaign. A senior official from the northern Inner Mongolia Autonomous Region stood trial Thursday, pleading guilty to accepting bribes totaling 449 million yuan ($64 million), the Southern Metropolis Daily newspaper reported. In doing so, he has become the most corrupt high-ranking official to be netted under Chinese President Xi Jinping’s anti-corruption campaign.

Blindsided: why does Beijing keep getting Hong Kong wrong?
In a series of in-depth articles on the unrest rocking Hong Kong, the Post goes behind the headlines to look at the underlying issues, current state of affairs and where it is all heading Here, we look at how Beijing fails to grasp the sentiment of the city

Hong Kong protest: What is mainland China hearing?
Since protests against a proposed extradition bill began, Hong Kong has drawn global attention. But on the Chinese mainland, it took a while for the story to be picked up, and people have been fed a selective and sometimes misleading narrative.

‘Risks still too big’ for China to send in troops to quell Hong Kong unrest
Chinese government advisers say Beijing has not reached direct intervention point but that could change if the violence continues Military action would trigger international backlash, observers say, as US expresses concern over reported paramilitary movements and ‘erosion of Hong Kong’s autonomy’

China’s ambassador to UK warns Beijing ‘will not sit on its hands’ over Hong Kong protests – video
Liu Xiaoming, China’s ambassador to the UK, has issued a stark warning to protesters in Hong Kong, saying Beijing is prepared to ‘quell any unrest swiftly’ if demonstrations continue. ‘Their moves are severe and violent offences, and already show signs of terrorism,’ Liu said.

Donald Trump suggests meeting with China’s Xi Jinping to reach ‘humane’ response to Hong Kong protests
Claiming China wants a deal to end the trade war badly, the US President said: ‘Let them work humanely with Hong Kong first! … Personal meeting?’ US lawmakers and other world leaders including German Chancellor Angela Merkel also called for restraint amid signs Beijing is losing patience with demonstrators

Germany’s Angela Merkel, France’s foreign minister call for dialogue to defuse Hong Kong tensions after China rejects EU statement on protests
Germany and France ratchet up calls to settle Hong Kong unrest following reports that China has mobilised armed trucks on the other side of border

Crisis may result in real political reform
With the pan-democrats likely to re-emerge as a powerful bloc after next year’s Legislative Council election, they will have a historic opportunity for change, if they are willing to give some ground

How Carrie Lam could end the Hong Kong turmoil in a single speech – with an amnesty for protesters and police, an independent inquiry and more social welfare
Whenever the chief executive appears in public, her speeches show no sign of having learned anything from events thus far This is especially frustrating as the government could quickly end the protests, even without conceding to all demands

Beijing starts military exercise in disputed South China Sea as tensions with Vietnam rise
Three-day training drill near Paracels starts on Tuesday as Hanoi faces pressure at home over Vanguard Bank stand-off

Alain Gillard
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