China Press Review – August 7, 2018

Press review

DoThe three dangers of China’s mixed-ownership reform
In reality there is an inequality of power between state and private capital

Should China play hardball in the trade war with Trump and start targeting US Treasuries?
David Brown says the US should be wary of what China chooses to do with its US$1.2 trillion dollars in Treasury securities. Based on the impact of Russia dumping its much smaller holdings earlier this year, a similar move by Beijing could play havoc with the American economy

A New Cold War? Why the U.S. and China Would Both Lose
“[The] Trump administration’s strategy is about far more than trying to level the playing field in trade, with potentially much worse consequences for both countries, and for the global economy.”

A New Cold War? Why the U.S. and China Would Both Lose

When It Comes to a Trade War, China Takes the Long View

Victory may go to the side that best understands the other — and Americans would do well not to underestimate Chinese resolve.

Trade War Target Practice: China Will Punish These American Businesses Next
The screws are tightening on China, and so Beijing is set to return the pressure on American exporters.

China’s moment of truth
Trade war has exposed Xi to unprecedented criticism. Will he plow on or back off? Today, Xi’s challenge is to prove his critics — and historical experience — wrong. He can try to convince them that China’s setbacks are temporary and his strategy will work and deliver huge long-term benefits. Alternatively, he can beat a quick but quiet strategic retreat and return to the cautious and moderate policies pursued by his predecessors. Either way, this is a moment of truth, both for Xi and China.

US-China ‘beer war’ likely to go flat as drinkers’ preference for local brews takes the fizz out of proposed tariffs
US government wants to tax the small amount of Chinese beer imported each year even though Americans are more likely to grab a domestic brew or one from Mexico

China’s service trade hits new high in H1
China’s service trade mounted to a new high in the first half (H1) of this year as the government has made more efforts to further bolster and open up the service sector. The Ministry of Commerce (MOC) said Tuesday the country’s service trade rose 8.5 percent year on year to stand at 2.53 trillion yuan (nearly 370 billion U.S. dollars) in H1

China Is Asking Banks to Avoid Yuan Market ‘Herd Behavior’
The People’s Bank of China made another move to stabilize the yuan on Monday, urging some lenders to prevent any “herd behavior” and momentum-chasing moves in the currency market, according to people familiar with the matter.

Alipay and three other firms fined by PBOC a combined 100 million yuan for violating payment service regulations
China’s central bank has fined Alipay 4.12 million yuan (US$601,459) for violating payment service regulations, the latest sign that Beijing is stepping up regulatory oversight of the multi-trillion-dollar mobile payment market.

Tencent Leads $50M Pre-A Round In Chinese AI Chip Maker Suiyuan Technology
Tencent Holdings Ltd has led a RMB340 million (US$50 million) pre-A round in Suiyuan Technology, a Chinese artificial intelligence start-up developing cloud-based deep learning chips for AI training platforms.

Tencent Leads $50M Pre-A Round In Chinese AI Chip Maker Suiyuan Technology

Tencent-backed Weimob files for Hong Kong IPO as marketing solutions provider joins rush to go public
WeChat-based marketing services provider joins a wave of Chinese technology companies seeking public offerings in Hong Kong in the next 12 months

China’s leading game enterprise acquires Israeli company for its AI
What happened: Giant Network, a leading game development, operation, and publication company, announced its acquisition of Playtika, a smart entertainment game provider based in Israel, for $4.5 billion. China’s regulatory department is reviewing the acquisition. Giant Network hopes the deal would allow it to cut into the field of artificial intelligence. Meanwhile, at the moment, Playtika has no portfolio games operating in China.

China’s leading game enterprise acquires Israeli company for its AI

Lack of support for young researchers is holding back China’s innovation
According to Dr. Lau, in terms of basic research expenditure as a share of total R&D expenditure, US stands on top with the figure of over 10%, whereas China’s is below 5%.

Lack of support for young researchers is holding back China’s innovation

China to start producing first 3D chip in 2019 and take on Samsung
Beijing-backed Yangtze Memory to join market during a glut

State-owned Chinese firm makes a play for Steinway pianos
China Poly Group said to be in early stage of making an offer to musical instrument manufacturer controlled by hedge fund billionaire John Paulson

Tighter US rules on foreign investment to have knock-on effect for Chinese seeking American homes
The latest step by US lawmakers to impose additional restrictions on foreign investments in sensitive sectors could add up to a further headwind for Chinese investors who’ve cooled toward the American property market in the past year, analysts said.

It’s Time to Get Tough on Fake Chinese Medicine
Counterfeit TCM products are a danger to public health, but regulators have been slow to tackle the problem.

Chinese Health Authority Investigates New Expired Vaccine Claims
City government in Shaanxi dismissed parents’ allegations that their children received faulty shots.

Alibaba set to merge food delivery units as it looks to ramp up China competition with Meituan-Dianping
Merging both units will help Alibaba better position itself in its battle for market share with Meituan-Dianping in China

China’s Ping An Bank Sets Up Subsidiary To Manage Debt-To-Equity Swaps
China’s Ping An Bank Co., Ltd. announced that it will set up a subsidiary targeting to raise RMB10 billion (US$1.46 billion) before 2020 to focus on debt-to-equity swap deals, according to a security filing.

China’s Ping An Bank Sets Up Subsidiary To Manage Debt-To-Equity Swaps

People’s Daily posts commentary welcoming Google back to China but stipulates it must observe local laws
The commentary states that Google’s decision to exit the Chinese market was a “huge blunder”, which resulted in the company missing “golden chances”

Baidu’s Robin Li isn’t worried about Google’s rumored return
Following news of Google’s rumored re-entry into the Chinese market, Baidu CEO Robin Li has said he welcomes the competition and that Baidu would “win again.

Baidu’s Robin Li isn’t worried about Google’s rumored return

A Generation Grows Up in China Without Google, Facebook or Twitter
Many foreign internet giants are blocked, leaving some young Chinese to wonder what those services even are — and reinforcing Beijing’s ideological control.

70% of Uniqlo overseas revenues generated from China and set to open 1,000 stores by 2021
The Fast Retailing Group generated rises in both revenue and profit in the first nine months of fiscal 2018 from 1 September 2017 to 31 May 2018.

Scandal-hit Chinese vaccine maker Changsheng started falsifying records in 2014: Xinhua
Changsheng Bio-technology Co Ltd, a vaccine maker at the center of a safety scandal in China, began falsifying production records for its rabies vaccine in April 2014, state news agency Xinhua reported on Tuesday.

WeChat begins crackdown on fake public account page views and followers
WeChat will begin cracking down on falsified pageviews and followers on public accounts beginning tomorrow (August 8), local media is reporting.

WeChat begins crackdown on fake public account page views and followers

Chinese P2P Lending Platform Dianrong Raises $40M From DFIIG
Shanghai-based peer-to-peer lending platform Dianrong, which raised over half a billion U.S. dollars previously during more exuberant times, has just received a US$40 million investment from Dalian Finance Industry Investment Group (DFIIG), according to a company announcement.

Chinese P2P Lending Platform Dianrong Raises $40M From DFIIG

Police thwart protest rallies by victims of China’s underground financial system
An unknown number of Chinese investors who have lost their life savings in the country’s peer-to-peer (P2P) lending industry mounted a failed attempt at a demonstration before the banking regulator on Monday, amid heavy intervention by the police in Beijing’s financial district.

China’s hypersonic aircraft, Starry Sky-2, could be used to carry nuclear missiles at six times the speed of sound
First test flight of experimental design, which rides its own shock waves, deemed a ‘huge success’

Shanghai Airport Authority boss under investigation for violating Party discipline and laws
Wu Jianrong, formerly an official of the Shanghai municipal government, is being investigated by an anti-corruption agency for undisclosed offenses

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