China Press Review – December 11, 2018

Press review

IMF warns storm clouds are gathering for next financial crisis
Speaking to an audience at Bloomberg in London, Christine Lagarde’s deputy called on China to take urgent steps to open up its economy to global competition. Against a backdrop of Donald Trump engaging in a bitter trade dispute with Beijing, he said that China needed to lower trade barriers, while also impose tougher rules to protect intellectual property – a key complaint of the US president. Lipton suggested that Chinese trade policies that were once considered “acceptable” when it joined the World Trade Organisation in 2001 as a $1tn economy may now not be appropriate as it had become a $16tn international superpower.

China tries to walk a tightrope as nationalist backlash over Huawei case threatens to derail US trade talks
Government continues to urge US and Canada to release Sabrina Meng Wanzhou, but Beijing does not want to imperil the current talks to resolve the trade war with Washington

Canada did not inform us of Huawei executive Sabrina Meng Wanzhou’s arrest until asked, China says
Beijing claims Ottawa violated bilateral agreement by failing to offer timely notice Canada says Chinese consular officials were notified of her detention on the day of her arrest

US, Canadian Businessmen: Careful in China for Now
A Hong Kong-based risk assessment firm is warning Canadian and American businessmen to avoid travel to China and to do any necessary business in Hong Kong rather than the mainland –especially executives holding Chinese and multinational passports — in the wake of the Dec. 1 arrest of Meng Wanzhou, the chief financial officer and deputy chairperson of Chinese telecom equipment giant Huawei.

Taiwan says there is no plan for a total ban on Huawei products
But government sector will continue to be blocked from using equipment from the mainland telecoms giant, according to cabinet spokeswoman

Does China Force Foreign Firms to Surrender Their Sensitive Technology?
The problem certainly does exist, most experts agree. But the data suggest that its magnitude has diminished over time. Instead of launching a broadside implying that all foreign direct investment (FDI) into China involves forced technology transfer, the United States Trade Representative (USTR), Robert Lighthizer—who is now in charge of the US-China trade dialogue—should acknowledge the problem is receding and focus criticism on the few key sectors where joint ventures are still required. Better yet, the USTR should file cases in Geneva that would demonstrate conclusively that China is in violation of its WTO commitment not to require technology transfer as a condition for accessing its market.

Chinese intellectual property theft: Where trade policy meets security policy
While confusion still reigns over the details of just what was agreed to in the G20 meeting between President Donald Trump and Chinese President Xi Jinping, clearly the issue of intellectual property (IP) was on the agenda, and, in whatever degree of detail, accusations of Chinese theft of foreign IP and its discriminatory rules against foreign patent holders.

Apple vs Qualcomm: How can one US company block another in China?
Both companies are based in California, but generate a significant portion of their revenues from China. The two patents cover the ability to adjust and reformat photographs, and navigate through applications with a touchscreen. Apple has appealed the Chinese court order, which bans the sale of seven older iPhone models, ranging from 6s to X.

Chinese internet split over Qualcomm’s Apple ban
The Chinese internet is divided after a court in the eastern Chinese city of Fuzhou banned the sale of some iPhone models following accusations that the company infringed on disputed Qualcomm patents.

Trade war: China’s Liu He and US’ Steven Mnuchin and Robert Lighthizer in phone talks despite Huawei row
Head negotiators speak on Tuesday morning to continue progress after meeting of presidents Xi Jinping and Donald Trump in Argentina Exchange of views on next step of timetable, says Beijing, after arrest of Huawei executive Sabrina Meng Wanzhou threatened to complicate the dispute

China, cars and Congress: Three risks to the 2019 trade outlook
While US President Donald Trump and Chinese President Xi Jinping agreed to kick off 2019 with an uneasy truce and a pause in their tit-for-tat tariff war it may not take long for their conflict to resume

The Pros and Cons of a PBOC Rate Cut as China’s Economy Slows
A decision on cutting interest rates in China weighs the need to bolster the slowing economy with the objectives of curtailing the debt buildup and preventing a slump in the currency.

Should the PBOC cut interest rates in China to aid slowing economy?
A debate is raging among analysts over whether The People’s Bank of China should intervene Disappointing economic data and the ongoing trade war with the US creating uncertainty

China Nov new loans rise to 1.25 trln yuan, beating forecasts
Chinese banks extended 1.25 trillion yuan ($182 billion) in net new yuan loans in November, more than analysts had expected and up from the previous month. Analysts polled by Reuters had predicted new yuan loans of 1.1 trillion yuan last month, up from 697 billion yuan in October and roughly in line with the tally in November last year.

Commentary: The US-China rivalry is all about us
Ongoing US-China tensions pose a problematic competition which could disrupt global economic and financial system that would make all us poorer, says one observer.

China Communism Vs. American Capitalism: A ‘Fake Deal’ In The Making
The trade war is not just about manufacturing jobs. It’s the final battle between communism and capitalism. This short “ceasefire” is unlikely to last

China moves ahead with 5G mobile development plans despite Huawei’s legal woes
China Mobile, China Unicom and China Telecom have been granted 5G radio frequency spectrum allocations to pursue trials in the next-generation mobile system ahead of its wide roll-out from 2020

GoPro to move US-bound camera production out of China to avoid trade war tariffs
Move comes despite 90-day truce agreed between US President Donald Trump and Chinese counterpart Xi Jinping The sport camera company has seen its share price fall 35 per cent this year

Chinese AI companies raised $31.7 billion in the first half of 2018
What happened: Chinese artificial intelligence companies raised a combined $31.7 billion in the first six months of this year, representing almost three-quarters of the worldwide total of $43.5 billion, Zhang Xueli, deputy director of China Academy of Information and Communications Technology, said at a conference in the eastern city of Suzhou. The Chinese mainland had 1,122 AI companies as of September, accounting for the second-largest share of the world’s 5,159, she said.

Chinese consumer electronics giant TCL restructures, pivots to panels
Following the likes of Tencent, Alibaba, and Xiaomi, Chinese multinational electronics company TCL plans to restructure its business through the sale of nine subsidiaries, pivoting away from consumer electronics and focusing on enterprises.

Gifts’ from Chinese apps, e-commerce companies on govt radar
India is considering imposing restrictions on online purchases of goods from Chinese ecommerce platforms and applications in a move triggered by concerns over adverse impact on local manufacturing and violation of domestic laws.

China, Germany pledge to jointly protect free trade, world order
China welcomes more German enterprises to expand investment in China and also hopes Germany will provide a fair business environment for Chinese investors and businessmen, Li added.

China brands are the next draw for local shopping malls, says Chinese developer
The company says it aims to operate 100 shopping malls by 2020 It vows to support local brand tenants with marketing, product development and financing

Trump Is Unwilling to Tackle Climate Change. China Must Step Up.
China can do more. The planet depends on it.

Hong Kong’s competitiveness under threat as limited office land set to run out in 10 years
JLL study estimates that government only has enough land on hand to accommodate 10 years of demand Upcoming business districts in Hong Kong East, Wong Chuk Hang, Kwun Tong and Kowloon Bay offer affordable alternatives to Central

China grants BNP Paribas license to issue “panda bonds”
Chinese regulators have granted BNP Paribas a license to underwrite bond sales by foreign companies in China—so-called “panda bonds”—as Beijing steps up moves to open up the financial sector, the Financial Times reports.

China’s car sales drop for sixth straight month with November’s 18 per cent decline a further sign of slowing economy
Annual figures for 2018 look set to show a first decline in at least two decades BMW AG and Daimler AG have already warned about lower profits, while Jaguar Land Rover have been forced to temporarily close a factory

China property to cool in 2019, weigh on economy, curbs may be eased
China’s massive property market is expected to cool further in 2019, with smaller price rises and falling home sales adding to pressure on the world’s second-largest economy, a Reuters poll showed. Smaller cities, which have seen sharper price gains this year, may face greater risks of a slump as economic activity slows and financing conditions remain tough for smaller developers.

Hongkongers quitting Chinese companies blame rigid office culture and low salary, survey shows
Hongkongers find most decisions made in the head office in China ‘The atmosphere became so stiff once the boss stepped into the room, which made me feel uncomfortable,’ said one Hongkonger who quit a China employer

Hong Kong’s chief executive says she will keep the public purse away from bailing out the property industry
Negative equity, in which a property’s value falls below the amount of the loan used to buy it, is already afflicting scores of home buyers who entered the market at the top The last of Hong Kong’s negative equity households took more than a decade to climb out of their debt trap

Trans-Eurasian One Belt One Road: A business-oriented approach to rail development
Joan Amorós, President of FERRMED, shares the business-oriented approach to railway development on the Trans-Eurasian One Belt One Road.

How Asia Fell Out of Love With China’s Belt and Road Initiative
Countries are discovering that the promise of Xi Jinping’s signature infrastructure program is too good to be true.

Insurance Authority launches platform to help insurers tap belt and road projects
Platform will ‘promote exchange of intelligence, forge alliances and facilitate networking,’ Insurance Authority says Mainland Chinese, Hong Kong and foreign enterprises involved or related the insurance industry are encouraged to join

Will China buy Turkey on the cheap?
The giant asymmetry between the two countries has clearly emboldened those who, after the dramatic depreciation of the Turkish lira in August, have argued that “China will buy Turkey on the cheap,” and Turkey will end up as “an economic satrapy of China” and even face “Sinification.”

China aims to have 450 airports by 2035: aviation regulator
China aims to have 450 airports by 2035, almost doubling its current number of airports as part of the country’s ambition to build itself into an aviation power, its aviation regulator said.

Rivals and neighbours: China and India count down to joint military drill
A year and a half has passed since their Himalayan stand-off and the armed forces of the two countries are trying to rebuild trust – but barriers remain

China’s 2019 Holiday Schedule
China’s General Office of the State Council released the country’s official holiday schedule for 2019 through its “Circular about Public Holiday Arrangement” on December 6, 2018.

Alain Gillard
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