China Press Review – August 6, 2018

Press review

Donald Trump says tariffs on China ‘working far better’ than anticipated
US president says on Twitter that ‘only fools would disagree

The Dangerous Myth The U.S. Is Winning The Trade War With China
The Trump trade team is fighting the wrong battle with China and using the wrong weapons. In a very real sense the White House is living mistakenly as if it is caught up in a battle strategy dilemma best coined by former U.S. Secretary of Defense Donald Rumsfeld, who quipped during the Iraq war that “you go to war with the army you have, not the army you might want or wish to have at a later time.” It is just the opposite for Trump. He doesn’t avail himself of the use of the appropriate arms to deal with China—weapons that are effective and fully available.

China’s July exports growth still seen holding up despite U.S. tariffs: Reuters poll
China’s exports are expected to have maintained solid growth in July despite new tariffs on billions of dollars of shipments to the United States, though the outlook has darkened as both sides raised the stakes in a trade conflict that has rattled financial markets.

Trump makes bizarre claim that tariffs will help pay down the massive U.S. debt
President Trump tweeted Sunday morning that his tariffs are “working big time” and made a bizarre claim that the money raised from these new import taxes will go a long way to helping pay down America’s large debt. (Short answer: That’s not what will happen).

Commentary: Trump’s trade war hits the one thing that was working – energy exports to China
U.S. President Donald Trump claims that his tariffs on trade are “working big time”, but this ignores signs that the best hope the United States had for boosting exports to China is being crushed as Beijing clamps down on energy imports.

China snubs Trump on new trade front as biggest refiner halts US oil buys
China’s Sinopec will delay making any purchases of US oil for September while Beijing decides whether to slap new tariffs on American energy exports

Donald Trump says Beijing ‘is talking to’ Washington, but is trade war just getting started?
US president claims his tariffs strategy is working, but Chinese analysts expect more retaliatory measures before negotiations resume

Trade war brawl: Chinese flagship newspaper attacks US President Donald Trump’s ‘street fighter-style drama’
The overseas edition of People’s Daily accuses Trump of reducing international relations to a zero-sum game, adding that Beijing will not cede to threats

Beyond tariffs: China’s ‘precision strikes’ on US businesses
American firms in China report higher costs and much greater regulatory scrutiny, and fear a major drop-off in business from rising nationalism, observers say

China’s latest tariff threat a ‘necessary and justified’ move, Wang Yi says
Foreign minister responds to White House economic adviser Larry Kudlow, asking does the US ‘want China to take stronger countermeasures?’

Trade war storm clouds loom over China’s leadership’s summer getaway
US-China dispute likely to be high on the agenda for Xi Jinping and other senior figures at their annual retreat Analysts have said that given the setback in Beijing’s foreign policy and the spillover of the trade war, Beidaihe is a chance for Xi to hear different opinions and review his policies, but there is little sign of a major threat to his dominance of the party.

China won’t shoot itself in the foot by weaponising the Yuan
As in the 1997 Asian Crisis, holding the line on the currency gives Beijing an opportunity to build on its soft power and position the yuan as a genuine international and reserve currency

Yuan pares gains as traders decide central bank move to stifle short-selling is unlikely to halt slide
China’s yuan pared morning gains on Monday as traders decided the central bank’s decision to make it more expensive to short the currency was unlikely to halt its downward trajectory.

U.S. bond market takes looming Treasuries deluge in stride

U.S. government debt supply will likely continue to boom, but bond market investors seem to be taking it in stride.

WATCH: How the Trade War with China Will Affect the US
Expert: “A trade war would negatively affect the interest of US consumers, companies, and the US financial system.”

WATCH: How the Trade War with China Will Affect the US

Is the Trump Economy Sustainable?
According to Larry Kudlow, Director of the National Economic Council, “The ball is in Xi’s court.” Kudlow probably is hoping that negotiator extraordinaire Trump will find him some way to allow the Chinese to resume talks without seeming to have bowed to the tariff threats that they see as blackmail. But China’s announcement yesterday that it is planning new tariffs on $50 billion worth of imports from America—including aircraft and liquified natural gas, both products for which China is an important market—doesn’t sound like the statement of a country preparing to run up the white flag. Or one feeling pangs of guilt at the fact that its trade surplus with the U.S. in the first six months of this year ran to $185.7 billion, up $14.6 billion (8.5 percent) from the first half of 2017.

Asia’s ‘Big Six’ who will be in big trouble if China pulls the Yuan trigger
Malaysia, Singapore, Philippines, Thailand, Vietnam and Indonesia are the most exposed if caught in the crossfire of the US-China trade war

China’s bill for debt binge coming due
Yuan flashes warning signs amid slowing economy and widening trade war

Beijing is more worried about domestic issues than its trade war with Washington, research firm says
The U.S.-China trade war is not Beijing’s top priority, investment research firm TS Lombard said. Rather, China is likely focused on more domestic concerns, such as stabilizing its economy and maintaining the power structure, said Jonathan Fenby, the firm’s China research chairman. TS Lombard sees growth in China coming in at a rate of 6.3 percent in the second half of the year, for an average full-year growth of 6.5 percent.

Anti-China hysteria vs need for trade: Australia struggles with a rising Beijing
The escalating trade war between China and the United States has hogged the international limelight amid rising concerns over its impact on the global economy and its geopolitical implications.

Worries Grow in Singapore Over China’s Calls to Help ‘Motherland’
With ethnic Chinese constituting a majority of Singapore’s population, some fear the country could be an especially tantalizing target for China’s influence.

Chinese P2P chief Yao Kunjie makes the Forbes high achievers list while under investigation
CEO of peer-to-peer lending platform Beimi Wallet is accused of ‘illegally absorbing public funds’

Made in China 2025: Why does everyone hate it?
There’s a good reason why China’s plan to boost hi-tech industries at home is not receiving much love abroad

Made in China 2025: Why does everyone hate it?

E-commerce spreads its cross-border wings
Statistics from the General Administration of Customs show that cross-border e-commerce has become the main growth engine for the country’s foreign trade, with a combined volume-both exports and imports-of 4.7 trillion yuan ($688 billion) last year, a year-on-year increase of about 77 percent. Globally, cross-border shopping will comprise 20 percent of e-commerce by 2022, with sales of $627 billion. The Asia Pacific region, driven by China, will become the largest e-commerce cross-border region for both imports and exports, according to a report by research company Forrester.

How Alibaba is championing the application of blockchain technology in China and beyond – Mon
When it comes to blockchain technology—blockchain patents in particular—one company stands out from every other. Alibaba [BABA] is leading the pack in blockchain patent and they are proud of it. “We are the most patented company in the world of blockchain technology,” Jing Xiandong, CEO of Alibaba ’s financial arm Ant Financial said.

Starbucks And Alibaba’s Game Changing Alliance
Starbucks and Alibaba jointly announced a partnership to “transform the coffee experience in China”.

British putting Huawei under spotlight over use of US firm’s ageing software
Software installed on some of the Chinese firm’s hardware will expire in 2020, leaving devices open to security risks, source say citing British government report

Google Reportedly In Talks With Tencent And Inspur To Provide Cloud Service In China
American tech giant Google is reportedly in talks with Tencent Holdings Ltd. and Chinese cloud computing service provider Inspur Group and other Chinese companies to bring its Google cloud services to mainland China, according to media reports citing insiders

Google Reportedly In Talks With Tencent And Inspur To Provide Cloud Service In China

Google faces hurdles in China beyond censorship
Critics of China’s internet controls don’t find that very consoling. Google’s steady series of quieter, public moves to expand its presence in China suggest the company isn’t about to give up. Google opened an AI research lab in Beijing last year, has invested $500 million into leading online retailer, and last month launched an AI-enhanced drawing game on dominant mobile messaging platform WeChat. “The problem lies in the uncertainty in how much Google would appease the state for growth and profits,” Ruan says.

Google looks to offer cloud services in China
What happened: Google is said to be in talks with companies including Tencent to offer its cloud-based products in China. Negotiations reportedly began in January 2018. However, there is some uncertainty as to whether the plans will go ahead amid trade tensions between the US and China. While not explicitly mentioning China, Google Cloud chief Diane Greene said last week that she wants the business to be a “global cloud,” while the company is seeking employees in its Shanghai office.

Google looks to offer cloud services in China

China pursues US semiconductor technology on multiple fronts
Espionage, employee recruitment, and M&A are among the strategies employed

China pursues US semiconductor technology on multiple fronts

TSMC shuts down multiple plants after virus attack
What happened: TSMC has shut down multiple factories after its systems were hit by a computer virus on Friday evening. This is the first time a virus attack has affected TSMC’s production lines. Over the weekend, TSMC recovered most of its equipment that was infected by the virus, which, according to company statement, “wasn’t introduced by a hacker.”

TSMC shuts down multiple plants after virus attack

podcast audio : China Tech Talk 55: Huawei’s wolf culture: Kill or be killed, part 2
This week, John and Matt talk with Elliot Zaagman, writer, executive coach, and corporate trainer, and Samin Sha, co-founder of ChinaChannel, about the intense internal culture at Huawei.

China Tech Talk 55: Huawei’s wolf culture: Kill or be killed, part 2

Didi invests $1 billion in car service and solutions platform Xiaoju
Chinese ride-hailing behemoth Didi Chuxing announced today it invested $1 billion into its auto solutions platform Xiaoju. Along with the investment, Didi is upgrading the auto solutions platform to Xiaoju Automobile Solutions Co.

Didi invests $1 billion in car service and solutions platform Xiaoju

How Mike Pompeo wrapped a bid to safeguard the Asia-Pacific’s status quo in an infrastructure investment plan
Ankit Panda writes that the US’ basket of investment funds and Belt and Road expenditures are not comparable given differing geoeconomical tool kits

What has Shanghai achieved in expanding opening-up?
As China endeavors to further open up its market this year, which marks the 40th anniversary of the country’s reform and opening-up, Shanghai has been a frontrunner in implementing relevant policies, with preliminary achievements recorded in various areas.

China’s EximBank’s Belt and Road loans up 37 pct in H1 – Xinhua
The Export-Import Bank of China (EximBank) said its outstanding loans to Belt and Road Initiative projects rose 37 percent in the first half of this year from the same period in 2017, the official Xinhua news agency said on Saturday.

The many problems with China Belt and Road Initiative
China’s Belt and Road Initiative is designed in such a way that Beijing would end up with effective control over critical infrastructure assets in faraway lands

Single solution can help calm waters of the South China Sea
The draft code of conduct Chinese Foreign Minister Wang Yi agreed to with his 10 Asean counterparts is a welcome step towards peace and stability

Chinese Cosmetic Brand ‘Sulansoo’ Found Guilty of Copying Korea’s ‘Sulwhasoo’
A court in Shanghai has ordered Chinese cosmetic company Shanghai Weierya to pay 500,000 yuan ($74,000) to the South Korean cosmetic giant AmorePacific for financial losses and an additional 47,000 yuan as settlement money after Shanghai Weierya allegedly counterfeited the Sulwhasoo luxury skincare brand.

Chinese Cosmetic Brand ‘Sulansoo’ Found Guilty of Copying Korea’s ‘Sulwhasoo’

Hong Kong home prices to face deflation trend by end of year, analysts say
A general downtrend in the city’s housing market is expected by end of year, with one finance academic warning of potential flash crash by as much as 10 per cent in the first quarter of 2019

Developers downcast over survival as China gets serious on stabilising home prices
The mood at the Boao Real Estate Forum in Hainan was particularly downbeat as builders expect to feel the squeeze over the coming quarters

Developers race to exploit a loophole in Hong Kong’s vacancy tax before a patch is made
Hong Kong’s developers are racing to exploit a loophole in the vacancy tax announced on June 29 for increasing housing supply, before the city’s Legislative Council mends the gap when it gets around to passing the bill for enacting the levy.

Chinese property developers squeezed by weaker yuan, rising cost of overseas debt
The sharp depreciation of the Chinese currency threatens to derail an important source of funding for mainland property developers, potentially forcing some home builders to sell down inventory at distressed prices in the coming months, according to analysts.

Chasing cars: e-Vehicles in China

The development of e-vehicles draws a lot of attention. New car models, self-driving vehicles and everything that comes with the vehicles of the future. Many countries aim to push the transition to e-Vehicles, either as a part of their smart city ambitions, their transformation towards a circular economy or simply to decrease pollution levels.

China to launch emergency inspections on farms after swine flu outbreak
China’s Liaoning province will increase inspections at pig farms and markets and strengthen the monitoring of hog transportation, after the nation’s first African swine fever case was reported there, local media Liaoning Daily reported on Monday.

Now that China’s securities watchdog has grown its regulatory teeth, how hard can it bite?
Until July’s vaccine scandal, China had no provision for expelling polluters or even makers of toxic foodstuff from the stock market. The annual delisting ratio was 0.2 per cent since 2001, well below 10 per cent in the US

China’s summer of discontent
Though its economic impact has yet to be felt, the clash over trade that US President Donald Trump has initiated is likely to be the toughest challenge Xi Jinping has faced so far, for reasons that extend far beyond the economy

Peak Xi?
Last week I noted a flurry of stories in the Western press suggesting Xi Jinping might have “overplayed his hand” in asserting China’s claims to prominence on the global stage and sparring with Donald Trump on trade. This week the flurry flared into a storm.

The Movement Shattering China’s Culture of Silence
Critics say online accusations lead to trial by social media. Survivors and policy experts say the movement exposes flaws in the law.

Strait ahead: how Beijing is planning world’s longest rail tunnel to link Taiwan to mainland
Scientists agree on blueprint for what would be the world’s longest rail tunnel but politics means it is likely to remain a pipe dream for now

Netizens Divided Over Airbnb’s Great Wall Promotion
Many Chinese worry event that claims to promote cultural heritage conservation may do more harm than good.

It’s Complicated: Chinese Millennials and Marriage
For young people, tying the knot means untangling freedom, pressure, and love.

Chinese activist Ai Weiwei says his art studio was demolished without notice
It is Ai’s second studio to be torn down by Chinese authorities after one was demolished in Shanghai in 2011 without warning.

Ethereum Blockchain Used to Bypass Censorship In China
By Monday, over 470 million viewed posts with hashtag “Changsheng vaccine case” on social media platform Weibo, making it impossible to sweep the issue under the rug and forcing president Xi Jinping to react and alleviate some of the public’s anger. During this past week, state sponsored media outlets urged people to not overreact and wait for conclusive evidence of wrongdoing before passing judgement.

New Christopher Robin film ‘banned’ in China as country continues to block images of Winnie the Pooh
Disney’s latest film Christopher Robin is banned in China as the country continues to ban images of Winnie the Pooh.

Alain Gillard
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