China Press Review – December 12, 2018

Press review

China looks set to cut tariffs on US cars from 40 per cent to 15 per cent, White House tells manufacturers
Report follows phone call between Chinese Vice-Premier Liu He, US trade representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin

In candid interview, Pascal Lamy says arrested Huawei CFO is the victim of ‘odd’ and ‘wrong’ extraterritorial sanctions

Why a stronger yuan, not tariffs, may be Trump’s best hope to shrink US trade deficit
Neal Kimberley says the dollar’s strength has widened the trade deficit by making US exports more expensive and goods it imports cheaper, defeating a purpose of Trump’s tariffs

‘Fight’ with US will continue to spread for years even with trade war tariffs deal, China economist Lian Ping warns
Disputes in non-tariff and in non-trade areas such will continue regardless of talks between President Xi Jinping and American counterpart Donald Trump Competition in a wide range of sectors highlighted by arrest of Huawei Technology chief financial officer Sabrina Meng Wanzhou in Canada

Increase in tariffs and import duties to US$588 billion could threaten global economy, World Trade Organisation warns
United States has announced duty on US$250 billion of imports from China during trade war before temporary truce agreed between Xi Jinping and Donald Trump Head of Geneva-based WTO Roberto Azevedo urges members to ‘use all means at their disposal to de-escalate the situation’

Cheers erupt in Canadian courtroom as judge frees Huawei’s Sabrina Meng Wanzhou on US$7.5m bail
The ruling came after friends of Sabrina Meng Wanzhou offered Vancouver homes worth millions of dollars as bail collateral Husband Liu Xiaozong pumped his fist in victory as Meng wiped away tears in the packed courtroom

The Foreign Billionaires, Activists and Missionaries Detained in China
China has a long history of arresting or holding foreigners for mysterious reasons, often in a tit-for-tat play to put pressure on overseas rivals.

Huawei and Skycom, the firm accused of breaching US sanctions in Sabrina Meng Wanzhou case, shared web domain according to public records
Huawei’s CFO, Sabrina Meng Wanzhou, is accused of trying to hide links between the two companies

Donald Trump says he would intervene in arrest of Huawei CFO Sabrina Meng Wanzhou if it helped secure trade deal with China
Trump said he would intervene ‘if I think it’s good for the country’
A Canadian court has granted bail to Sabrina Meng Wanzhou while she awaits an extradition hearing

Beijing’s detention of Michael Kovrig has precedent as an act of reprisal, warns former Canadian ambassador to China David Mulroney
David Mulroney, Canada’s ambassador in Beijing from 2009 to 2012, sees parallels with a 2014 arrest of two other Canadians Kevin and Julia Garratt were imprisoned for more than two years after Ottawa detained Su Bin on a US request

‘Forced tech transfer’ has to stop or be regulated, says EU ambassador to China
European companies should not be compelled to transfer technology in order to gain access to the Chinese market, said Nicolas Chapuis, ambassador of the EU delegation to China. The bloc welcomes any foreign investments conducive to creating jobs and growth, said Chapuis.

Xi says China has firm confidence in its economy
“We have firm confidence in China’s economy to maintain medium and high-speed growth and move towards the mid-to-high level; we have firm confidence in China’s economy to develop with a good trend,” Chinese President Xi Jinping said on Wednesday.

China’s message to the US: don’t ‘create new opponents’ or ‘bully’ Chinese citizens
Beijing won’t ‘sit idly by and ignore any bullying that violates the legitimate rights and interests of Chinese’ but Foreign Minister Wang Yi does not directly refer to case of detained Huawei executive

How China’s massive gender imbalance drives surge in Southeast Asian women sold into marriage
Beijing’s decades-long one-child policy has left a shortfall of nearly 33 million women in China, with the same number of men facing life on the shelf Largely driven by poverty, tens of thousands of young Cambodian, Vietnamese, Laos and Myanmar women marry Chinese men each year

China’s lending rebounds following government easing measures
Total social financing (TSF), a wide-ranging gauge of the economy’s liquidity and borrowing levels, bounced back from an all-time low in October as efforts by Beijing to stimulate lending seem to have taken effect, Caixin reports.

Is this the Beginning of a New Cold War?
The U.S. seeks to use its power to preserve its own influence and access in Asia while sustaining a liberal international order based on laws, norms, and institutions that have been developed by the international community for decades. China, for its part, seeks to establish itself as the dominant power in Asia and to circumscribe the regional role of the United States in the region. Beijing also seeks to rewrite some aspects of the established international order—or at least carve out exemptions for itself—in ways it believes to be more conducive to its interests.

All eyes on China’s annual conference as President Xi Jinping prepares to unveil economic game plan for 2019 amid trade war tensions with the US
China’s top leadership is likely to hold the annual policymaking Central Economic Work Conference next week The meeting of the mainland’s top leadership will decide what Beijing will do to keep growth on track amid the trade war truce with the United States

From doves to hawks: why the US’ moderate China watchers are growing sceptical about Beijing
Constitutional amendment on presidential term limits as well as activity in the South China Sea have caused a shift in perceptions China’s ‘repression at home and aggression abroad’ have intensified the conflict with the US in recent years, observer says

Chinese state security is behind detention of Canadian former diplomat Michael Kovrig, employer says
International Crisis Group says Beijing Bureau of Chinese State Security was responsible and there is no word on detained adviser since Monday China had warned of ‘grave consequences’ after Canada’s arrest of Huawei executive Sabrina Meng Wanzhou over alleged breaches of sanctions against Iran

Analysts warn China financial situation remains weak despite rise in bank lending
People’s Bank of China struggling to pump money into real economy even as Xi Jinping’s government seeks to offset economic slowdown due to the trade war with the United States

Vietnam uses US-China trade war to rebalance its economic and security relationships
Hanoi is taking advantage of heightened rivalry between the two greater powers to make new friends in the region

Sustainable Energy China’s losing its taste for nuclear power. That’s bad news.
Once nuclear’s strongest booster, China is growing wary about its cost and safety.

Norway has signed on to join the 40-plus other countries and regions that accept Alipay, China’s most-popular mobile-payments app, as tourist destinations across the globe look to capture the rising spending power of Chinese travelers.

How much time does it take for a room of 1,000 people to exchange business cards? Three seconds, according to DingTalk.On Monday, Alibaba’s enterprise chat and collaboration app, which has more than 7 million business and organization clients globally, released a new function that lets users exchange digital business cards through a QR code on their smartphone or adding nearby contacts with a four-letter passcode. DingTalk users enter the passcode and then swipe up to share their e-business card with other users within 1 kilometer who have followed the same opt-in process.

China’s ‘Double 12’ Shopping Day: A Small History of Big Bets
Sixth Tone highlights the high-profile wagers made by some of the country’s biggest entrepreneurs on and around the December e-commerce festival.

Baidu among 80 plus companies found faking corporate information
The Chinese government has censured search giant Baidu and more than 80 other companies for providing it with false or misleading information about their business activities

The Digital Revolution in Medtech: Opportunities in Asia
Digital technology is revolutionizing the healthcare sector. The global digital health market was valued at approximately $122.66 billion in 2017. Investment in digital health startups reached $11.78 billion globally in 2017 alone, with 852 deals in total. Healthcare companies around the world are now taking advantage of these exciting changes to create value for patients, clinicians, and shareholders alike….Much has been written globally in recent years about the use of digital technology to support management of patients and interactions with them; in China, it’s BAT (Baidu, Alibaba, Tencent), consumer ecosystems, and an app culture (e.g., apps for recording sleep quality and heart condition, hospital registrations, and medical fee payments). Fewer column inches have been devoted to how the digital revolution will be delivered in the highly regulated world of medical devices and equipment, and the impact of that. This special report seeks to redress that deficit and expand on how medtech companies—both in China and beyond—are seizing the initiative, and how medtech leaders can think about identifying opportunities in their own businesses.

Chinese PhDs and MBAs give up city life for farming, driven by desire to improve agriculture and livelihoods
Millions of educated Chinese have left cities to become farmers, inspired to change agriculture or disenchanted with the pressures of urban life They practise organic farming and water conservation, hoping to set an example for fellow farmers, and revive traditional techniques

Beijing’s small businesses face uncertain short-term future due to tighter tax rules despite China’s government vowing to reduce overall burdens
Around 540,000 small businesses could be affected despite central government saying they will look to help to bolster the slowing economy amid the trade war State Administration of Taxation has already tightened collection methods for the film and television industry after the tax evasion scandal of actress Fan Bingbing

Alibaba’s home province Zhejiang to invest billions in tech innovation
China’s wealthy coastal province, Zhejiang, will invest around $17.3 billion as part of a plan to drive innovation in the technology and medical research industries, local leaders said Monday. The provincial government will also guide financial institutions to invest an additional RMB 290 billion (around $42 billion). The province’s five-year plan includes 50 measures to boost the technology sector, including initiatives to increase patent numbers and research and development spending in the provincial-level GDP.

Google has ‘no plans’ to launch censored Chinese search engine, CEO Sundar Pichai says
The tech titan has been working on what search could look like in China and is continuing to study the idea, CEO tells US lawmakers

Hong Kong, China stocks rise after Huawei’s Meng Wanzhou is freed on bail and possible tariff cut
China may lower tariffs on US-made cars and Huawei’s CFO Sabrina Meng Wanzhou is released on bail in Canada
The performance of mainland’s stocks remain subdued among Asia’s markets as PBOC’s monetary supply report shows growth potential is weak

Due Diligence in China: Protecting Your Business from Fraud, Reputational Risks
Fraud can take many forms and may be perpetrated both internally by actors within an organization, or externally by third parties that interact with it. In our final and third article in this series, we dig deeper on the most effective due diligence strategies to protect your China business. We also elaborate on establishing transparent standards for monitoring compliance to programs.

Ten Key Questions to Ask Your Potential China Distributor
International distribution contracts are the new blackand this is a good thing. I estimate that the international lawyers at our firm will have done about double the number of international distribution contracts in 2018 than in 2017.

‘Promiscuous women get gangrene’ – what Chinese summer camps taught teens about gender values
Classes teaching children about women’s values promote reactionary ideas and scaremongering, video exposé finds Authorities intervene to halt the latest such classes and central legal body calls for further action to promote equality

Favourable currents for ASEAN–China relations in the South China Sea
Despite increased friction between the United States and China, on balance, positive developments in the South China Sea outweighed negative ones this year.

How China’s massive gender imbalance drives surge in Southeast Asian women sold into marriage
Beijing’s decades-long one-child policy has left a shortfall of nearly 33 million women in China, with the same number of men facing life on the shelf Largely driven by poverty, tens of thousands of young Cambodian, Vietnamese, Laos and Myanmar women marry Chinese men each year

Alain Gillard
Information Officer
Service Asie Pacifique
Place Sainctelette 2
1080 Bruxelles
Tél 02 421 85 09 – Fax 02 421 87 75
Copyright © 2018 awex, All rights reserved.