China Press Review – August 19, 2019

Press review

U.S. and China seeking to revive trade talks: Trump adviser
Washington and Beijing are working actively to revive negotiations aimed at ending the trade war that has rattled world markets, Donald Trump’s chief economic adviser said Sunday. If teleconferences between both sides’ deputies pan out in the next 10 days “and we can have a substantive renewal of negotiations,” Larry Kudlow said on “Fox News Sunday,” “then we are planning to have China come to the USA and meet with our principals to continue the negotiations.”

What Trump really gains by calling China a currency manipulator
China fails to meet two of the three criteria set by the US Treasury to identify currency manipulators So exactly who is manipulating who?

China allows weaker yuan but still fights downward pressures
Market forces would sink currency even lower if Beijing did not intervene

China’s proposed digital currency will help banks bridge gap on mobile payment, curb dominance of Alipay, WeChat
With Alipay and WeChat Pay accounting for over 90 per cent of the mobile payment market and drawing away deposits, analysts say PBOC’s proposed digital currency will help banks stem the leak Banks’ participation in the central bank’s digital currency will help them better compete with third party payment network operators

US should not expect China to keep yuan stable alone, says former senior official with China’s foreign exchange watchdog Guan Tao says US president Donald Trump is disrupting market sentiment, then blaming China

Keeping the yuan stable is ‘a bilateral thing, ’ says Guan Tao
How World Leaders Ruined the Global Economy
They took the best growth picture in a decade and put us in danger of recession.

China’s central bank now has ‘bigger say’ over lending rates, but analysts question level of impact
The People’s Bank of China now requires banks to benchmark their loan rates against the medium-term lending facility instead of the official benchmark The change is part of a long-term modernisation process within the world’s second largest economy to have a market-oriented central banking mechanism

Economic Watch: China takes new measures to cut financing costs for real economy
Chinese companies are likely to see less financing burden thanks to a string of new government policies, analysts said. In its latest move to cut financing costs for the real economy, the People’s Bank of China (PBOC), the country’s central bank, unveiled a plan on Saturday to improve and reform the country’s loan prime rate (LPR) mechanism.

Fearless spirit will safeguard China’s future
If the US ruins trade relations with China, it would also suffer. Now, a trend has emerged. Some Americans have lost their jobs. As long as the Chinese economy develops in an innovative and coordinated way, China’s future will remain bright. By then, the US would have no alternative but to focus on developing trade relations with other countries. That being said, against the backdrop of the trade war, I am confident in China’s future.

Economic Commentary: Challenging China’s State-Reported Economic Data
U.S. consumer confidence is high, but confidence in China’s economic measurements is not. “Politicians use statistics in the same way that a drunk uses lamp posts—for support rather than illumination.

Warning signs for global economy: the countries spooking investors
From the US-China trade war through to the problems affecting Germany, Brazil, the UK and more

A bad year for Xi clouds Communist China’s 70th birthday celebrations
It was meant to be an unabashed celebration of the triumph of Communism in China, and of President Xi Jinping’s authority as the country’s undisputed leader for years to come. But as the People’s Republic of China approaches its 70th anniversary on October 1st, Xi finds himself battling threats on multiple fronts.

Trump is wrong. Trade wars are not easy to win, even non-players end up as losers
The economic fallout of Trump’s trade and currency wars can’t be rolled back with the throw of a switch A global rescue can be financed only by central banks undertaking even bigger purchases of government debt than they have done already

The White House quietly appointed a new China director who could rattle Beijing and make a US-China trade deal even less likely
The White House has quietly appointed Elnigar Iltebir, a Uighur-American scholar, to direct the National Security Council’s China policy. While her policies on China are as yet unknown, Iltebir’s appointment is likely to cause further friction between Washington and Beijing, which could scupper a potential trade deal.

Why China needs to accelerate industrial internet efforts amid economic slowdown, trade tensions
Emerging business models require companies to embrace a range of hi-tech advances, including AI, 5G, cloud computing and IoT

Uncertainty hangs over Foxconn’s newest China factory as trade war and economic slowdown take a toll
Guangzhou facility was supposed to begin operations next month, but now everyone involved is ‘a bit embarrassed’ over its uncertain future A firm linked to Foxconn founder Terry Gou has reportedly been trying to sell the plant, which was supposed to boost China’s role in the global value chain

President Trump suggests no extended reprieve for Huawei
US President Donald Trump on Sunday said he did not want the United States to do business with Chinese telecommunications giant Huawei. The statement came after the Commerce Department was reportedly expected to extend a reprieve for the company, according to Reuters. Trump’s remarks indicate that Huawei’s fate remains uncertain as the previous reprieve nears its expiry date.

President Trump suggests no extended reprieve for Huawei

Challenges in Belt and Road construction
Cooperation urged at forum to ensure high-quality development

Huawei is said to win another 90 days reprieve to buy from American suppliers
US Commerce Department to extend temporary general license to Huawei for 90 days, sources said US President Donald Trump and Chinese President Xi Jinping are expected to discuss Huawei in a call this weekend, one of the sources said

School’s out? Not in China, where children are under pressure to take summer courses to get ahead
Survey finds 90 per cent of primary and secondary pupils in Shenzhen are taking at least one course over the break Observers say it reflects parents’ anxiety over education system, while research shows extra classes risk worsening the gap between rich and poor

A miserable Year of the Pig for China’s hogs is godsend for American farmers
Outlook for China’s hog farming sector is bleak, as the overall herd size is forecast to fall 20 per cent this year and a further 10 per cent next year US pork exports to China doubled in the second quarter to 60,898 tonnes from a year earlier

The world’s biggest pork eaters are developing a palate for beef and other substitutes
China’s pork consumption peaked in 2014 at 42.5 million tonnes Chinese customers’ spending on healthy meals rose 158 per cent last year, according to data from online delivery provider Meituan Dianping

China changes the way bank loan rates are set, with HSBC left out of rate-setting club
Chinese central bank selects 18 lenders, including two foreign ones, to submit monthly rates that will be used to determine benchmark PBOC says it will lower financing costs for corporate and individual borrowers

China Bank Accounts and Financial Records: I See Some Bad Fraud Rising
Even more than usual we are being asked by foreign companies (mostly American and European) to review Chinese bank records to determine the likelihood that someone or some entity had committed fraud. Companies do not usually ask us to do this sort of review unless they have good reason to believe a fraud has been committed and nearly every time we do such a review, we find good evidence of fraud. Based on the reviews we have done, we want to provide you with some pointers that may be helpful when reviewing your own Chinese bank records, wire or other transfer receipts, or when you are expecting money to hit your Chinese or U.S. bank account with a payment from China that “definitely should have been here by now.”

China Bank Accounts and Financial Records: I See Some Bad Fraud Rising

Tesla breaks ground on first overseas factory in China
Tesla broke ground on Monday January 7 for its Shanghai ‘Gigafactory’, where it plans to begin making its Model 3 electric vehicles (EVs) by the end of 2019. The so-called Gigafactory is Tesla’s first overseas factory and China’s first wholly foreign-owned car plant. China has the world’s largest auto market, but its high tariffs on imported cars amid an escalating trade war with the US have caused problems for American companies hoping to sell there. Producing cars locally is likely to help Tesla minimise the impact of the trade war and fend off competition from a swathe of domestic EV brands.

China’s pharma sector maturing at rapid pace
Industry being driven by an aging society, higher healthcare demands, regulation reforms and increased investment

Chinese scientists are at the forefront of the quantum revolution
China’s drive has sparked calls for more R&D funding in the United States Quantum technology seeks to harness the distinct properties of atoms, photons and electrons to build more powerful tools for processing information

Pet spending in China could hit US$28.8 bn
The number of domestic dogs and cats is set to reach about 99.2 million this year, up 7.7 million from 2018

The New Perfume Market for Chinese Millennial Men — A User’s Guide
Millennial men’s obsession with beauty in China is no longer a secret. Influenced by the extremely popular K-pop aesthetic and its increasingly androgynous fashions, this generation cares about their appearance in a way older Chinese would’ve surely defined as “sissy” or “unmanly.” These days, blemish balm cream and facial masks have become commonplace in the Chinese man’s beauty routine, yet perfume has remained a relatively silent category. Just two years ago, in 2017, Chinese consumers accounted for a mere 1% of the global perfume market, according to Forward, a local research institute. But now, things are starting to change.

The New Perfume Market for Chinese Millennial Men — A User’s Guide

28 Common Problems Chinese Suppliers Cause Importers
I was thinking of the most common problems Chinese suppliers cause for importers, especially those developing their own products.

28 Common Problems Chinese Suppliers Cause Importers

Community the silver lining for growing number of elderly Chinese living and dying alone
Academic says nation is in ‘awkward period’ as 255 million people aged over 60 deal with economic change and legacy of one-child policy

India Inc widens road to China after Trump-Xi trade war
There has been an uptick in business travel to China as entrepreneurs and businesses keen to take advantage of opportunities.

Russia is in danger of being overrun by China’s Belt and Road
A new Eurasian order is in the making, with Beijing in the driver’s

China may try to ‘play active role’ in defusing tensions between Japan and South Korea
Foreign ministers from the three countries will meet in Beijing next week amid strained ties between Seoul and Tokyo They are expected to map out a planned leaders’ summit later this year

China’s Smart Dragon-1 rocket makes maiden flight as country eyes commercial satellite boom
Country hopes to develop fleet of commercial satellites and developing suitable carriers will be key to achieving that goal

Chinese embassy warns Canada to ‘immediately stop meddling’ in Hong Kong and China affairs
Statement from embassy in Ottawa follows joint statement from Canada and the European Union in defence of the ‘fundamental right of assembly’ in Hong Kong

Chinese mission strongly opposes EU’s meddling in Hong Kong affairs
In response to a statement from EU’s top diplomat, a spokesperson of the Chinese Mission to the European Union (EU) said on Sunday that China is gravely concerned and strongly opposed to the EU’s meddling in Hong Kong affairs.

Don’t offer Hong Kong protesters asylum, Beijing warns Taipei
Mainland China says it will not tolerate attempts by the island to shelter criminal elements Taiwanese leader denies intervention and says it’s natural for her administration to support Hong Kong people seeking freedom and democracy

Beijing unveils detailed reform plan to make Shenzhen model city for China and the world
Plan would allow wide-ranging reforms to make Shenzhen a global ‘benchmark’ by middle of the century It adds to evidence that Beijing is sidelining Hong Kong in development of the Greater Bay Area

China includes digital currency in plans for the Shenzhen Special Economic Zone
A new guideline for the future development of the Shenzhen Special Economic zone includes the research and promotion of virtual money and the country’s digital fiat currency, according to a report (in Chinese) from state broadcaster China Central Television (CCTV) on Sunday. The Central Committee of the Communist Party of China and the State Council, China’s cabinet, released the guideline.

China includes digital currency in plans for the Shenzhen Special Economic Zone

Crisis-hit Hong Kong: China’s gateway to the world
China’s economy has grown to dwarf Hong Kong’s since 1997, but the mainland remains deeply dependent on the crisis-stricken city as its primary economic gateway to the world. The global financial hub has been shaken by 10 weeks of protests which could have an impact worse than the 2008 global economic crisis, Hong Kong leader Carrie Lam has warned.

Hong Kong companies feel heat of trade war
More than 150 Hong Kong-listed firms issue profit warnings

Why Hong Kong home and office costs are likely to weather political crisis and trade war
A prolonged recession could cause strain, but a supply squeeze means house prices and office rents are unlikely to be dented for now

Hong Kong is in India, Kashmir is in China. Right?
Hong Kong and Indian Kashmir. One is administered by the world’s biggest democracy and one is the democracy-craving outlier of an authoritarian state. Which is which? These days, it’s hard to tell …

China will think long and hard before sending in the PLA – it needs the Hong Kong ‘experiment’ to work, and it wants Taiwan back
There is still time for the violent protests to be reined in. Hong Kong remains an indispensable connector between mainland companies and the world, and the city stands as proof of China’s commitment to the market-driven global economy

Chinese state broadcaster uses Holocaust poem to liken Hong Kong protesters to Nazis
CCTV tweets adapted version of ‘First They Came …’ claiming demonstrators ‘trampled freedom of the press’ and ‘seized and tortured the drivers’ Original, by German pastor Martin Niemoller, is about the moral cowardice of intellectuals who didn’t act to stop the persecution of minority groups

Carrie Lam can defuse the Hong Kong protests by taking on the property tycoons
Political reform is slow, but there’s a swift solution to the economic inequality that has helped foment discontent The Chief Executive can break the stranglehold of property moguls by increasing land supply and providing more affordable housing

Hong Kong Resets Democracy Push With Peaceful Mass March in Rain
Tens of thousands of Hong Kong protesters defied heavy rain to march for an 11th straight weekend, as more moderate leaders sought to reset the pro-democracy movement after violent scenes at the airport last week threatened to sap support among the broader public. While neither organizers nor police provided crowd estimates, it appeared to be the largest demonstration since at least July 1, when as many as 500,000 people hit the streets. A sea of umbrellas filled Victoria Park in Causeway Bay before the group streamed out and marched toward Central, shutting down major boulevards.

Hong Kong’s dueling demos: pro-democracy vs pro-China
Pro-democracy protesters marched on one side of Hong Kong’s famous harbor on Saturday to demand the government heed their demands. Across the water, a pro-government rally called for an end to the often violent protests. The dueling demonstrations highlighted the political divide in the semiautonomous Chinese territory, which for 10 weeks has been rocked by protests that show no signs of relenting.

Hong Kong protests see sharp rise in number of residents wanting to move to Taiwan
Island’s immigration authorities try to speed up processing of applications after seeing 45 per cent increase in June and July Concerns for Hong Kong’s future prompt residents to look to self-ruled democracy as a place to work or study

How Hong Kong’s police are tackling protests
Hong Kong’s police say they were stretched and struggling. Months into a city-wide rebellion calling for democratic reform, activists had changed tack, hitting many targets at once. They couldn’t keep up. But they have now reorganised operations and say they are on top of the situation, making it unlikely mainland troops will be seen on the city’s streets. This information came from a nearly three-hour briefing this week, given by senior police officers to international journalists, including the BBC., They gave an unusually frank assessment on their capabilities and the likelihood of an intervention from Beijing. They say it won’t happen and this is why.

Radicals happy to see city go up in flames
The more extreme elements have hijacked the protest movement and aim to have Beijing deploy troops on the streets of Hong Kong

China’s Great Firewall no barrier to ugly online battles over Hong Kong protests
As social media-savvy activists run a grass-roots public relations campaign, they have come up against nationalistic mainlanders egged on by state media There is a clear dichotomy between how the movement has been portrayed on the internet within and beyond the mainland

Twitter is blocked in China, but its state news agency is buying promoted tweets to portray Hong Kong protestors as violent
The irony of China Xinhua News’ tweets is that they let the Chinese Communist Party disseminate its version of events to a worldwide audience even though Twitter is officially banned in China (along with other U.S. social media platforms like Facebook, Instagram, Google, YouTube, Tumblr and Snapchat).

Twitter is blocked in China, but its state news agency is buying promoted tweets to portray Hong Kong protestors as violent

Military bases to ballistic missiles, what’s the target of Trump’s Asia strategy?
New US defence secretary Mark Esper has announced plans to deploy missiles and build more US bases in Asia But he faces an uphill battle convincing countries wary of entering China’s crosshairs

Trump administration to go ahead with US$8 billion sale of F-16 fighter jets to Taiwan, angering China
Republican Senator Marco Rubio calls the proposed deal ‘an important step in support of Taiwan’s self-defence efforts’
Chinese foreign ministry spokeswoman warns ‘the US will have to bear all the consequences’ for its bold move

US defence strategy in Indo-Pacific region faces ‘unprecedented crisis’
Australia should diversify its network of defence allies as the military might of America weakens, report warns

Eight+ Things to Read About China and Other Things, Part 14

Eight+ Things to Read About China and Other Things, Part 14

Alain Gillard
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