China Press Review – August 9, 2018

Press review

Dark cloud’ of trade war hovers over Chinese yuan’s globalization
The U.S.-China tariff war is adding to weakness in the yuan, as Beijing seeks to promote it as a global currency in line with the country’s growing economic clout. Internationalization of the renminbi could slow as the trade war drags on, analysts say. However, they say, the story surrounding the yuan’s future is complex and can’t be summed up only in relation to China’s trade tensions with the U.S.

China’s Economy And The Quest For Foreign Ports
The 21st century has seen the rise of China as an economic power. The state has developed itself at a rapid rate and is now venturing into the outside world. By developing cordial ties with several countries, China has made stable economic relations with them. They include countries in Europe, Middle East, South Asia and even Latin America. It is dependent on foreign trade for the economic rise. In order to promote its image as a soft power, it has been investing in foreign countries. By aiding the development of infrastructure, the state has made cordial ties with Latin American countries, specifically Brazil. It has financed the development of Gwadar port in Pakistan, in order to develop an economic corridor to link itself with the rest of the world.

China’s Economy and the Quest for Foreign Ports

How yuan devaluation inflates China’s liquidity bubble and kicks structural reform down the road
Andy Xie says the trade war is an opportunity for China to make long-overdue economic changes, such as tax cuts, rather than resorting to pumping in liquidity yet again

China’s regulator quietly removes capital-sapping CDRs as it vows reforms to soothe frayed nerves
China’s stock market has lost US$2 trillion in value since the benchmark index fell 24 per cent from a January high

US is losing FDI
It’s a cost of Trump’s economic nationalism, says report We’ve already reported that Chinese investments in the United States are on the decline. Now it’s become apparent that President Donald Trump’s trade warwith allies and adversaries alike is taking a toll in business investments in the United States globally.

US is losing FDI

Will Trump’s tariffs stop Chinese espionage?
The only really effective counterespionage strategy may be better defence at the company-level, he suggests. But Prof Button has some sympathy with Mr Trump’s massive tariffs approach in confronting China over their practices, in precipitating “a showdown” over the problem. Derek Scissors is much more sceptical: “The solution we’ve come up with is completely misguided.” He says blanket tariffs fail to distinguish between firms that have benefited from espionage and those that have not.

Trump Is Right: China Should Stop Stealing the U.S.’s Best Ideas
The theft or forced transfer of technology and intellectual property should be a no-no.

Trump rants behind closed doors with CEOs
The president rails against China over dinner with execs and senior White House staff. Trump told the executives that Chinese President Xi Jinping’s “One Belt One Road Initiative,” China’s economic plan that has the potential to disrupt trade worldwide, was “insulting” and that he didn’t want it, according to a person in the room. Trump said he had

China’s factory inflation slows, tariffs yet to stoke price pressures
China’s factory price inflation cooled in July amid a slowdown in economic growth with Beijing locked in a heated trade dispute with Washington, although economists expect punitive tariffs on U.S goods to add to wider price pressures in months ahead

How China Wins the Trade War
While American companies and consumers are paying the price for tariffs, China protects its factories and investors.

China’s lead trade negotiator Liu He joins technology panel as Beijing refocuses its ambitions
Vice-premier named deputy head of revamped policy committee in latest evidence of the growing importance of technology to the Chinese government

Trade war puts dent in Beijing’s plan to turn Hong Kong and surrounding cities into new Silicon Valley
Announcement delayed to avoid backlash similar to reaction from Washington to Made in China 2025 plan

China’s July factory inflation slows but consumer prices accelerate
China’s July CPI rose 2.1 percent from a year ago, higher than the 1.9 percent expected by analysts in a Reuters poll. July PPI rose 4.6 percent from a year ago, above expectations of 4.4 percent.

The Belt and Road Initiative: Dispute Resolution along The Belt and Road
This growth presents challenges and risks for investors, contractors and other service providers as performance of contracts will be carried in jurisdictions where litigating disputes, recognition and enforcement of court and arbitral awards may be complex

Germany’s China City: how Duisburg became Xi Jinping’s gateway to Europe
Some 80 per cent of trains from China make the world’s largest inland port their first European stop

China’s Belt and Road Initiative Finds Shaky Ground in Eastern Europe
As part of its Belt and Road Initiative, China will work to build economic and security ties with Ukraine, Belarus and Moldova in the coming years. A variety of factors, including insufficient infrastructure and competition in the region between Russia and the West, will complicate China’s expansion in these states. Forging deeper relationships with China will give Ukraine, Belarus and Moldova more leeway for negotiating the standoff between Russia and the West, though Beijing will be careful not to encroach on Moscow’s interests in the region.

IPOs says about the current wave
China’s tech IPO craze is reaching a fever pitch. On July 12, the executives of a whopping eight Chinese companies that went public on the same day were forced to share their time of glory at the Hong Kong Stock Exchange due to a bell shortage. Compared with their foreign counterparts, this is even a bigger compromise for Chinese execs given their love for stage props. The US is seeing something similar: three Chinese tech firms including Pinduoduo went public in the US on July 26.

What China’s history of overseas tech IPOs says about the current wave

Walmart, invest US$500 million in Chinese logistics service
Investment in logistics provider Dada-JD Daojia intensifies ‘smart retail’ movement in China, where tech giants such as Alibaba and Tencent cut deals to combine shoppers’ online and offline experience

Chinese Truck Hailing App Seeks To Raise $1 Billion, Taking Valuation To $10 Billion
Manbang Group, a Chinese truck-hailing platform is looking to raise US$1 billion in a new funding round, according to the Wall Street Journal.

Chinese Grocery Delivery Firm Dada-JD Daojia Raises $500M From Walmart And
Dada-JD Daojia, a Chinese online grocery delivery firm, has raised US$500 million from U.S. retailer Walmart and Chinese delivery giant in its latest round of financing, according to the company’s announcement. Both Walmart and have deep strategic and business synergies with Dada-JD Daojia. This new round of investment not only fully recognizes the effectiveness of its unbound retail practices, but also paves the way for the three parties to further explore unbound retail

Alibaba’s Food Delivery App Establishes Cooperation With Hellobike
After completing the docking with Alibaba’s Tmall store, Ali Health, RT-Mart, Freshhema and other commercial entities, announced that it had completed the entrance docking with Hellobike.

Soybean shipload worth more than US$20 million circles off China, victim of trade war with US
The Peak Pegasus rushed to China’s shore in the hope of clearing customs before Beijing imposed retaliatory tariffs but arrived too late

China Mobile’s first-half profit rises 4.7 per cent as subscriber number increases
China Mobile, the world’s biggest mobile phone operator by subscribers, reported on Thursday a 4.7 per cent rise in first-half net profit, helped by mobile data growth due to a rise in subscriber numbers.

More details revealed on Google’s search engine for China
The backlash against Google’s project has already begun not only among Google’s staff but also among US government representatives as six senators are asking Google CEO Sundar Pichai to explain its link to Tencent. Google has so far refused to comment on any of the news. Meanwhile, reports on Google reentering China has been mysteriously appearing and disappearing from Chinese media.

More details revealed on Google’s search engine for China

China has an online lending crisis and people are furious about it
The Chinese government is facing anger from mom-and-pop investors after hundreds of online lending platforms imploded, wiping out their savings.

China Work Permits No Longer Needed for Taiwan, Hong Kong, and Macau Residents
On August 3, 2018, the State Council announced that residents of Taiwan, Hong Kong, and Macau (‘THKM’) will no longer require work permits to work in mainland China.

Did China put on a show of its Starry Sky-2 hypersonic vehicle just to impress the US?
As Beijing wrestles with a trade war and rising tensions over Taiwan and the South China Sea, public announcement was probably intended as a rallying call, observers say

Where China’s top leaders go in summer and in secret: a brief history of Beidaihe
Its role and scope have evolved through decades and leaders, but the gathering at the coastal town, which dates back to Mao, has remained closely guarded

Chinese children are too fat, sleep little and have poor eyesight
The first study of schoolchildren by the Chinese Ministry of Education draws an awful picture of fourth- and eighth- graders. Good at math and science, they have little analytical and creative skills.

Alain Gillard
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