What to expect as China-US trade talks resume
The US and China are due to resume trade talks in the coming days that last took place in January before tensions escalated.
A chance for Chinese economic leadership
In late June 2020, 15 East Asian countries — representing nearly 30 per cent of the world’s economic output and population — committed to signing the Regional Comprehensive Economic Partnership (RCEP) in November. This will be the largest free trade agreement ever and complements the 2018 Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Trump says China buying more US goods ‘to keep me happy’
‘China’s purchased the most amount of corn in history,’ Trump tells reporters Trump’s comment come as an expected meeting of the two countries’ trade representatives never materialised
Trump vs China
PRESIDENT Donald Trump’s re-election campaign is in full swing; currently, he’s trailing 12 points behind Joe Biden in polls, primarily because of his poor handling of the Covid-19 pandemic. A flamboyant populist by nature, Trump is a unique politician, whose policies evolve around the revival of America as a global economic power. This reassertion of America’s power includes a very public spat with a formidable opponent — the People’s Republic of China.
Chinese tech giants face mounting pressure from the US government – will Baidu and Alibaba be next to get hit?
Although Trump’s response was ambiguous, not indicating whether he was referring to Alibaba and Baidu, it signaled that the US backlash may be snowballing beyond TikTok and Tencent Two executive orders issued by Trump on August 6 stated that ‘any transaction’ related to ByteDance or WeChat would be banned after a 45 day grace period
Donald Trump may target more Chinese companies, including Alibaba, in wake of TikTok dispute
Trump has been piling pressure on Chinese-owned companies, such as by vowing to ban short-video app TikTok from the United States Last week the US ordered ByteDance, a Chinese company, to divest the US operations of TikTok
Covid-19 pandemic could still be just a dry run for the ‘next big one’. Is the world ready?
The economic ravages wrought by the virus could amount to tens of trillions of dollars. Half a year into the pandemic, one of the eight clear lessons the world needs to learn is: prevention is ultimately less expensive than cure
China economy loses steam amid weak demand, coronavirus and floods, analysts say
Fresh data shows that China’s economy is still growing, but not as quickly as many economists thought The Chinese government has failed to stimulate domestic demand, with analysts calling for more stimulus in the second half of 2020
Xiaomi, ZTE and Chinese 5G stocks rally as Shenzhen becomes first mainland city to be covered by high-speed telecom network
Shenzhen’s entrance into the 5G era unleashes buying of stocks including Xiaomi, ZTE and China Tower Traders boost 5G stocks as they expect the roll-out of the high-speed telecom network to be accelerated across the country
Selling TikTok in the US is a pivotal moment for ByteDance – but a deal is easier said than done
TikTok is famous for its AI-powered recommendation system, which feeds curated content to users based on their interests The US market is a bellwether for others, with user habits there followed in other countries
ByteDance may have slightly longer to sell TikTok but Trump has also strengthened his hand, analysts say
President Donald Trump ordered ByteDance on Friday to divest the US operations of its video-sharing app TikTok within 90 days This comes on top of an executive order he issued last week that would prohibit certain transactions with TikTok unless ByteDance divests it within 45 days
8 things to know about the Chinese tech giant behind Tiktok
Everyone’s talking about Tiktok, the hot short video app that has been thrust into the global spotlight on the back of an emerging US-China cold war. But outside China, few people know about Bytedance, the elusive tech unicorn behind one of the world’s biggest social media smash hits.
The TikTok Red Herring
For the past couple of weeks, the Trump Administration has been saber-rattling about TikTok, a Chinese-based social media platform popular among America’s youth and full of silly short videos – relatives dancing together, kids lip-syncing, teens sharing beauty tips. According to Reuters, 60% of TikTok’s active users in the U.S. are between the ages of 16 and 24. The idea that TikTok is a national security threat and a danger to our democracy seemed preposterous. But over the weekend, these seemingly preposterous ideas became very real, with U.S. President Donald Trump stating that he was going to “ban” TikTok from the U.S. market. And on Monday, Slate’s What Next podcast took on the TikTok debate, interviewing Axios reporter Bethany Allen-Ebrahimian on the reasons behind the Trump Administration’s desire for a ban. While an informative interview on the Trump Administration’s justifications behind its threats to ban TikTok, China Law & Policy came to realize that it’s time to take a deeper dive on TikTok
Trump’s WeChat Ban Likely to Backfire
As usual, crackdown appears ill-thought-out and more likely to do harm than good The decision earlier this month by US President Donald Trump to ban TikTok and WeChat – two strongholds of Chinese social media in the United States and beyond – is confusing and likely more harmful to American citizens of Chinese descent and US companies than to China.
How Europe’s Big 3 Are Shifting on China
As the U.K. leads and France follows, the world now awaits a verdict from Germany on Huawei, Hong Kong, and more.
Are China and India getting a tech divorce? With Dev Lewis
China Tech Investor is a weekly look at China’s tech companies through the lens of investment. Each week, hosts Elliott Zaagman and James Hull go through their watch list of publicly listed tech companies and also interview experts on issues affecting the macroeconomy and the stock prices of China’s tech companies.
China’s top bank regulator sees surge of bad loans straining financial system in 2020, 2021
Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, vows to improve corporate governance at banks Warning comes as many of China’s small lenders are facing a reckoning after years of undisciplined balance sheet expansion, fraud and corruption
Delayed US-China trade review could give Beijing some breathing space as Donald Trump seeks re-election
The two sides were due to review their phase one trade deal after six months, but one observer said the delay was ‘no bad thing’ China says it has tried to honour the deal to buy more US goods, but the coronavirus pandemic has been a problem
Chinese business leaders urge country to keep thinking global
Beijing has called for increased focus on ‘domestic circulation’ to boost self-reliance Xu Weiping, whose Advanced Business Park is behind a US$2.2bn London development, says political tensions should not derail international cooperation
How global value chains will evolve in the post-COVID-19 economy
According to traditional trade theory, the direction and magnitude of product flows are principally determined by the comparative advantages of trading countries. These comparative advantages depend on endowments of production factors: labour, capital (including human capital) and land (or natural resources). Forces integrating the different factor endowments of various countries — especially capital and technologies from advanced economies and cheap labour from developing countries — drive the development of global value chains (GVCs).
China’s rail shipments to Europe set records as demand surges for Chinese goods amid coronavirus
July saw 1,232 cargo trains travel from Chinese cities to European destinations – the most ever in a single month Once regarded as merely ornamental, freight service along belt and road trade routes has become increasingly important as exporters turn to railway transport
China’s liquidity boost drives markets
Gold and US Treasuries rebound after last week’s losses; China liquidity boost ahead of central bank rate decision; Japan, Australia underperform
Leading in a Volatile World: How Cultural Intelligence and Political Risk Abilities will Define Winners in the New Global Trade Environment
The world economic environment has been roiled by the impact of a lengthy trade war, the far-reaching impacts of the COVID-19 pandemic, and social protests which have ramped up consumer scrutiny of company practices. This new and volatile arena presents stiff challenges requiring different skills from business leaders. While some companies will fold under the strain of the lockdowns and global stagnation, others will survive but face a brave new world where many of the trade norms and logistics habits of previous years will have disappeared. Navigating this terrain successfully will, of course, require agility and innovation but also a profound understanding of global trends, diverse cultures, and the rapidly changing political and regulatory structures of international markets.
China’s bank regulator moves to rein in small lenders as Beijing fears financial risks
After a number of easing measures during the pandemic, economic stability remains a concern in China as cheap funds flow into stocks and property Some lenders have been told to stop issuing structured deposits, but curbing such products – popular at small banks – could trigger liquidity stress
China’s debt collection firms flourishing as coronavirus batters economy
Collection agencies hiring extra staff to meet huge demand Delinquency rate for consumer debt is rising and collecting has become far more difficult, expert says
Chinese banks warned to ‘stay on high alert’ for possible pain of US financial sanctions
Central bank authorities have been largely silent on the threat of a financial war with the United States, while state-owned banks are openly discussing how they would cope Boosting the yuan’s international use and developing its own payment systems are options for China, but those are long-term projects
US sanctions: economist Yu Yongding flags risk of Chinese bank assets being seized overseas
Financial sanctions could come in any form, so Beijing must be prepared for worst-case scenario, says Yu Yongding, a former adviser to China’s central bank A precedent was set in 2012 when Bank of Kunlun was cut off from the dollar payment system, suffocating its cross-border business
First Into the Virus Slump, China Is Proving the Fastest Out
Recovery isn’t seamless but enough to see GDP expand this year Investment, relative virus success behind stronger rebound
Coronavirus: Japan suffers its biggest economic slump on record
The Japanese economy has shrunk at its fastest rate on record as it battles the coronavirus pandemic. The world’s third largest economy saw gross domestic product fall 7.8% in April-June from the previous quarter, or 27.8% on an annualised basis.
Pandemic to hit Japan’s economy more than expected, U.S.-China tension adds to concerns: Reuters poll
Japan’s economy will contract more than previously expected and suffer mild deflation during the current fiscal year, analysts predict, underscoring the fragile nature of the recovery from the devastating coronavirus pandemic.
China’s economy to keep recovering in H2: PBOC chief
China’s economy will continue to recover in the second half of this year, and it is expected to achieve economic growth for 2020 under the pandemic’s impacts, said Yi Gang, governor of the People’s Bank of China (PBOC), Xinhua reported on Sunday.
China’s yuan continues to grow as an international currency, central bank says
‘We expect more market participants will accept yuan as settlement and payment currency,’ People’s Bank of China says in annual report Value of cross-border yuan payments and receipts rose 24.1 per cent in 2019 to 19.67 trillion yuan, it says
China’s July forex reserves rise to $3.154 trillion
China’s foreign exchange reserves rose more than expected in July as the dollar weakened and the yuan firmed as the world’s second-largest economy showed further signs of recovery.
Three reasons demand for Asian logistics real estate is soaring – and why investors should be cautious
The growing interest in the industrial real estate sector is part of an existing trend that has been boosted by the coronavirus The danger is that investors could become too enamoured of the sector’s e-commerce-driven tailwinds, leading to indiscriminate buying which pushes up prices further
What it means for Asia as supply chains make security the top priority
As states and companies build redundancies and diversify to lower risks, China’s dominance as a global supplier will weaken in the longer term, while manufacturers in Thailand, Vietnam, Taiwan and Malaysia stand to benefit the most
Hong Kong brands, long considered to be of higher quality, seek ways of coping with ‘Made in China’ labelling rule
Hong Kong brands are recognised as makers of high-quality goods, Hong Kong Brand Development Council chairman says Companies such as Lee Kum Kee and Chow Tai Fook Jewellery to rely on production queues outside city
The Chinese Economic Threat
As Sino–American relations continue to deteriorate, liberal democracies need to unite against China’s ever-expanding economic influence.
How Xi Jinping’s economic pivot is China’s version of Trump’s decoupling
The proven benefits of opening up mean Beijing will not turn completely away from international engagement, but will focus on developing belt and road economies with its new ‘dual circulation’ strategy However, China is one of a few economies with the critical mass to rely on its domestic economy for sustainable growth
China and trade: Breaking up is hard to do
There’s an old adage in Asian business circles: when China sneezes, Asia catches a cold. So imagine what happens during a pandemic. When China locked down, supply chains around the region were hit and companies couldn’t get access to raw materials and products. A recent survey by supply chain management firm QIMA showed that 95% of US companies questioned said they would diversify suppliers both in and out of China. But even with the pandemic and the continuing trade war between the US and China, a complete break is tough. Some 87% of the companies surveyed still said the mainland is one of their top three sourcing destinations. It is not just US firms having that realisation, and neither is it just because of how deep the supply chains are in China. “China responded to the virus in a different manner to how other countries responded,” said Steven Lynch, chief executive of the British Chamber of Commerce in China.”The one thing they did was reassure and gave businesses confidence to reopen.” China is both a big supplier to other economies as well as a major customer
He said: “Companies who have supply chains and manufacturing operations here, [China] very quickly gave tax incentives and support to businesses to reassure them of their investments.” Meanwhile, China’s appetite for high-tech goods is growing when other countries are cutting back. China has gone from being the world’s supplier to also becoming one of the world’s most important customers. It’s the only economy that’s likely to grow this year. Global trade has been defined by China in the last few decades – and that’s not going to change any time soon.
Fresh Covid-19 outbreak, floods spell double trouble for China’s economy
Economic costs of floods, which have so far affected 27 of China’s provincial-level jurisdictions, is likely to hit $20.6 billion
China’s new economic strategy to rely on domestic market is not a closed-door policy, Beijing advisers say
President Xi Jinping announced a move to reduce reliance on exports and state-led investment, and instead focus on China’s huge domestic market It is widely perceived as Beijing’s inward-looking response to a hostile outside world, but actually involves attracting investment and signing trade deals
China’s economic recovery underwhelms as consumer comeback stays elusive
China’s retail sales slipped in July, dashing expectations for a modest rise, as consumers in the world’s second-largest economy failed to shake off wariness about the coronavirus, while the factory sector’s recovery struggled to pick up pace.
Coronavirus vaccine: Chinese scientists plan joint trials with Russia despite doubts over ‘world-beating’ breakthrough
China’s leading specialist Zhong Nanshan says researchers from the two countries can ‘learn a lot from each other’ Last week’s announcement that Russia had approved a vaccine without large-scale trials has prompted widespread scepticism
Senior creditors said to have offered to take control of Swissport from China’s HNA Group
Senior secured creditors, including Apollo and SVP Global, make offer to restructure €2 billion worth of Swissport’s debt, source says Payment-in-kind note holders have agreed to offer, source says
China’s chicken production surges, reducing appetite for imports as food safety fears grow amid coronavirus
China is expected to produce a record 14.85 million tonnes of chicken meat in 2020, a substantial increase over last year’s 18 per cent rise to 13.75 million tonnes Expansion is boosting demand for key feed grains like corn and soybeans, while pushing down prices and meaning smaller purchases of imported frozen chicken
Asia’s Beef Market 2020 – Positive Outlook for China, Negative Expectations for India
The beef import price in Asia stood at $5,039 per tonne in 2019, rising by 6.9%. In value terms, beef imports contracted to $19.9B (IndexBox estimates) in 2019. India dominates beef trade, accounting for 1.1M tonnes, which was near 85% of total Asian exports in 2019.
Chip maker SMIC’s founder says ‘optimistic’ China can catch up with US in semiconductors
Richard Chang Rugin, also the former chief executive at SMIC, said persistent research and development as well as investment in new raw materials would enable China to compete Semiconductor Manufacturing International Corp, the mainland’s biggest contract chip maker, raised US$6.5 billion from its Shanghai share sale in July
The Ongoing Battle With Huawei
In June, the U.S. Federal Communications Commission (“FCC”) officially designated China’s Huawei as a national security threat. As shown by my recent interview on The Point, a popular current affairs programs on the China Global Television Network (“CGTN”), China and the United States look at the FCC action very differently.
Alibaba, Xiaomi, WuXi Biologics win green light to join the Hang Seng Index on September 7
Alibaba capped at 5 per cent of weighting; lower than Tencent capped at 10 per cent Sino Land, Want Want China Holdings and China Shenhua Energy removed from index
China’s central bank declares Baoshang Bank bankrupt as it picks apart Xiao Jianhua’s financial empire
Insolvent Baoshang Bank was unable to find new investors for recapitalisation before the government stepped in to set up a new lender to take over its assets, the central bank says Baoshang Bank will proceed to the bankruptcy procedure and the stakes held by Xiao’s Tomorrow Group will be liquidated, PBOC says
Competition heats up as Hong Kong developers take on mainland Chinese rivals to buy land next to bayarea’s high-speed railway stations
In the next three to five years, 18 stations will be offered for tender, with potential to be developed under the so-called transport-oriented-development (TOD) model Competition is becoming fierce as Hong Kong property giants join their mainland Chinese rivals in bidding for projects with TOD concepts in the bay area
Are Chinese Consumers Over Celebrity Livestreaming?
As e-commercelivestreaming has taken off in China, celebrities have started flocking to the format as a way to stay in the spotlight while generating income. Many actors have been less busy this year as a result of the coronavirus, with productions delayed and endorsement opportunities drying up as brands slashed their marketing budgets.
With Huawei facing hurdles in Europe, Chinese smartphone brand Oppo eyes expansion
Oppo’s Europe sales grew 41 per cent year-on-year in the second quarter of this year The region is key to Oppo’s plans to enter the high-end smartphone segment, says Maggie Xue, president of its western Europe business
Shenzhen embraces Hong Kong in financial markets integration plan, a prelude to easier capital controls
Shenzhen blueprint welcomes Hong Kong-based players with five major areas of push, including cross-border banking and insurance business Decision cements stronger mainland-Hong Kong bond after China tightens grip on the Asian financial hub with security law
Give Hong Kong’s talented Gen Z skin in the game or prepare for an exodus
Hong Kong’s millennials face diminished economic opportunities, widening income inequality and perceived interference with their way of life. More must be done to increase their political and economic participation, tapping their digital fluency
Alibaba Health new share sale raises US$1.3 billion in biggest ever Hong Kong health care placement
Alibaba Group’s flagship health care platform upsizes placement by a quarter to 498.8 million shares amid strong demand Company plans to expand its online drug sales as demand for its services surged during the coronavirus pandemic in China
Japan moves to secure rare earths to reduce dependence on China
Tokyo to help Japanese firms obtain stakes in overseas mines and increase stockpile of the minerals, vital to the technology and defence industries China’s previous moves to restrict exports of rare earths and the disruption to supply chains caused by the coronavirus have prompted Japan to act
China set to step up testing on country’s fastest-ever maglev train with top speed of 600km/h
The country is planning a network of superfast trains that could slash journey times on major routes Prototypes of the new trains are set for a series of tests with commercial production slated to start next year
China five-year plan: state media invites public submissions as Xi Jinping calls for ‘wisdom of the people’
Chinese citizens are being encouraged to share their views via state media on the country’s 14th five-year plan, which covers the period 2021-25 Social welfare, employment, education and the environment have emerged as the main areas of concern for regular Chinese
INTERNET CENSORSHIP IN CHINA IMPACTS GLOBAL TRADE
Foreign companies and industry have argued that China’s censorship measures are not even-handed. How far will the government go to exercise influence over international norms for cyber governance? More than 40 governments now engage in broad-scale restrictions of online
EU is moving closer to Washington’s position on Beijing threats, Trump administration official says
John Demers, who heads the Justice Department’s counter-espionage effort, says ‘Hong Kong and the Uygurs have been the biggest issues’ for Europe The US is working with European partners to develop digital standards to address ‘the long-term threat to data privacy, security and human rights
Donald Trump’s anti-China policy is doomed to fail, as his coronavirus strategy did
Rather than a cohesive strategy, America is taking aim at China’s economy based on a mix of short-term thinking, parochial calculations, and fear of Chinese competition Most of its attacks are missing the mark, and some are likely to boomerang on US interests instead
US-China relations: American nuclear-capable stealth bombers deployed to Indian Ocean airbase
Three B-2A Spirit bombers sent to Diego Garcia in British Indian Ocean Territory for the first time since 2016 Aircraft’s presence designed to intimidate Beijing as it ramps up its live-fire military exercises
China’s growing military power may make drone and cruise missile proliferation ‘inevitable’ in Asia-Pacific
Hi-tech weapons becoming increasing important as a deterrent, says report by Institute of Strategic Studies South China Sea claimants and other developing countries seeking ways to counter aggression from major powers
Taiwan’s air force renews order to pilots ‘not to fire the first shot’ amid tensions with Beijing
They were told to avoid ‘misfiring’ when sent to repel fighter jets from the mainland and ‘intruding’ aircraft, according to local media Observers say it is a message to both Beijing and Washington that Taipei ‘won’t make any provocative moves’
US set to make China’s Confucius Institutes register as ‘foreign missions’
Government-funded programme that teaches Chinese language and culture overseas facing growing scrutiny by Trump administration Designation would subject Confucius Institutes, many based on university campuses, to rules similar to those for embassies and consulate
China refrains from reacting to US naive provocation of tagging Confucius Institute
No need for China to react every time US makes hysterical moves: experts
US-China decoupling: does clash of ideologies raise too many non-negotiables?
Live with us peacefully, China’s envoy Cui Tiankai has challenged Washington – but some argue coexistence is expected to be on Beijing’s terms American opposition to China on ideological grounds makes its position equally entrenched
Mike Pompeo says Chinese threat may be worse than ‘Cold War 2.0’
US Secretary of State urges Czechs to stand up to Beijing like they did to Soviets Pompeo raises prospect of Chinese world domination on first stop of five-day Central Europe trip
Is it time for China to leash its Wolf Warrior diplomats?
Many of the country’s envoys have taken a more strident approach but some insiders are calling for a more tempered strategy towards the rest of the world The internal debate is part of a broader discussion on how to manage relations with the US
Hong Kong: It’s China, Stupid
There’s little to be done about the CCP’s actions in Hong Kong, beyond extending a welcome to fleeing Hongkongers. The free world’s focus should now be on avoiding an extension of China’s repressive apparatus outside its borders. Standing with Taiwan is an obvious start, as is rejecting ongoing attempts to present a fait accompli in the South China Sea. Much harder lines should be taken against CCP infiltration of universities and other institutions overseas. Its ability to intimidate the Chinese diaspora must be curbed. And a much steeper “China price” must be exacted from businesses that benefit from CCP policies that violate fundamental human rights
Chinese Foreign Minister Wang Yi visits Tibet to ‘send message to India’ over border dispute
The two countries have shown little signs of resolving the stand-off that prompted a deadly clash in the Galwan Valley in June Diplomatic observers said Wang’s visit highlighted how Beijing sees the region as vital to its national security
How Guan Yu Became China’s God of War, Wealth, and Everything Else
Born 1,860 years ago, the bearded warrior’s unlikely combination of traditional values had something for both emperors and commoners alike.
The U.S. vs China: Asia’s New Cold War?
Sean Ledwith reviews Jude Woodward’s bestselling book The only weakness in Woodward’s otherwise excellent overview of the global chessboard is a tendency to take at face value statements of benign intent by the current Chinese leadership. Ultimately, China today has become thoroughly integrated into the operations of global economy and as such, is bound by the logic of the system in the same way as every other capitalist state, now or in the past. Xi may be genuine in his desire to avoid confrontation with the U.S. but the laws of motion of world capitalism, as Lenin and Bukharin argued many decades ago, ultimately operate outside the remit of politicians and twice already in the last century we have seen where that logic can lead. She also tends to dismiss legitimate struggles against the Chinese state such as those in Hong Kong and Xinjiang as little more than manifestations of CIA sponsored subversion .
China-Japan relations: end of summer fishing ban risks further tensions over disputed islands
The Chinese authorities have reportedly warned crews to stay away from the Diaoyu Islands, also known as the Senkakus, to avoid further tension with Tokyo Japan has complained about ships operating in the area, but some observers believe Beijing will be reluctant to risk a further backlash
China on alert for Yangtze River flooding as storms close in
Water resources minister urges dams in upper reaches to ease as much pressure as possible on downstream areas still recovering from last month’s inundation Residents in Shaanxi province told to move to higher ground amid threat of flash floods
How to cook rice: in Asia, it’s no laughing matter
Comedian Nigel Ng’s ‘Uncle Roger’ send-up of BBC presenter Hersha Patel’s cooking had Asia in stitches, but our love affair with rice is a serious business Rice features on coats of arms, is appreciated like wine, and the average Asian eats 60kg a year. The secret to cooking it? It’s about how you rock the wok
Chinese bicycle makers geared up to handle demand as they ride pedalling boom
Coronavirus has made cycling more attractive and governments are offering incentives Most of the bikes made in ‘the kingdom of bicycles’ were already sold abroad
Chinese restaurant ‘sorry’ for suggesting customers weigh themselves before ordering
‘Our intention was to advocate not wasting food and for people to order in a healthy way,’ fried beef outlet says Scheme was introduced after President Xi Jinping described China’s food waste problem ‘shocking and distressing’
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