China Press Review – December 13, 2018

Press review

Beijing no longer requires local governments to work on ‘Made in China 2025’, but China’s hi-tech ambitions remain
Made in China 2025 is not included in the latest guidelines issued to local authorities by the central Chinese government The change marks a clear sign that Beijing is toning down the strategy that triggered concerns from the US

Beijing plans ‘Made in China 2025’ revision as trade war expands
Diplomacy intensifies after Huawei executive is granted bail

How ‘Made in China 2025’ Frames Trump’s Trade Gripes
The Chinese government’s “Made in China 2025” plan was introduced as a blueprint for transforming the country into an advanced manufacturing economy. It’s come to represent what international competitors, notably the U.S. under President Donald Trump, dislike about how China plays in the global marketplace. Tariffs imposed by Trump took aim at many of the industries highlighted in the plan. It appears China may be willing to amend the plan, perhaps even postponing some of it by a decade, if that helps bring an end to the trade war.

Huawei arrest is a warning shot for foreign business executives, as US makes targeting individuals a ‘top priority’ amid trade war
Foreign business executives face greater risks as US decides to target individuals in corporate misconduct cases Donald Trump says he may intervene in the case, feeding into a popular belief in China that Meng’s arrest was a ‘political kidnapping’ for trade war leverage

Huawei CFO Sabrina Meng Wanzhou enjoys Vancouver home comforts and Domino’s pizza on bail
Sabrina Meng Wanzhou welcomed three visitors who arrived in a car with diplomatic plates She offered pizza to reporters outside her Vancouver home

China and Hong Kong stocks rise for third day as US-China trade war shows signs of easing
Gains come after China buys more than 1.5 million tonnes of US soybeans, its first big US soybean purchase in six months

China confirms second Canadian Michael Spavor under investigation for allegedly endangering national security
Businessman has been missing since he last made contact with Canadian officials Fellow Canadian in China, Michael Kovrig, detained for allegedly endangering national security

FBI counter-intelligence official warns US to unite against Chinese espionage threats
Cautions are issued amid news of a Marriott data breach linked to Chinese hackers and the extradition case of a Huawei executive US lawmakers are told that China ‘is the most severe counter-intelligence threat facing our country today

Chinese electric car start-ups like Xpeng make a run for potential Tesla buyers as competition hots up
China’s automobile market has seen a growing crowd of new domestic players in recent years taking on established foreign car makers

Will XI Jinping’s Dream of Becoming the Global AI Leader Turn into Reality? Artificial intelligence in China is rich in funding but short on talent
China’s President Xi Jinping has been urging the country’s companies to develop, control and use artificial intelligence (AI). The objective is to secure the nation’s future as it aims to become the global leader in AI by 2030. In terms of AI research, China ranks first in the quantity and citation of research papers, and holds the most AI patents, edging out the US and Japan, according to a June report titled China AI Development 2018 by Tsinghua University. The country has also attracted 60 percent of global funding in AI, which enabled it to overtake the US for the first time as the world’s biggest AI investment destination, the report suggests. It also notes, the shortage of high-level AI talent is somewhat hampering its growth.

US trade war spreading to China’s state-owned enterprises, warns senior government official
Deputy head of the State-owned Assets Supervision and Administration Commission, Meng Jianmin, makes comments in private speech at closed-door meeting Electricity consumption shrinking in the city of Suzhou and Zhejiang province, an indication of a downturn in economic activity

The US & China: A Colder Peace or Thucydides’ Trap?
As President Trump pushes Beijing on trade and cyber espionage, the United States and China are on a collision course. The U.S. urgently needs a new strategy to avoid the traditional fate of rising and status quo powers: catastrophic war.

A Weakened China Tries a Different Approach With the U.S.: Treading Lightly
Hobbled by a slowing economy, the Chinese government has opted for a measured response to the arrest of a Huawei executive.

US believes Chinese intelligence was behind massive Marriott hack, as Mike Pompeo decries Beijing’s ‘cyberattacks across the world’
The Marriott hackers are believed by the US to have been working for China’s Ministry of State Security Detailed data on some 500 million customers of the world’s largest hotel company was stolen

Global perceptions of an ascendant China
China’s peaceful development was based on the stability of current international economic, political and security orders and therefore its rise need not be a threat to the US and the international system

China’s Jan-Nov FDI falls 1.3 pct y/y
Foreign direct investment (FDI) into China fell 1.3 percent in the first 11 months of the year to 793.27 billion yuan ($115.54 billion) from a year earlier, the Ministry of Commerce said on Thursday. In November, FDI into China dropped 26.3 percent year-on-year to 92.11 billion yuan, the commerce ministry said.

China economic policymakers to gather on Tuesday to set course as US trade war tide rises
Annual Central Economic Work Conference to discuss policy for next year Sources say regime of spending increases and tax cuts will continue

China to keep 2019 growth within reasonable range: politburo
China will keep its economic growth within a reasonable range next year, striving to support jobs, trade and investment while pushing reforms and curbing risks, the top decision-making body of the Communist Party, the politburo, said on Thursday.

Chinese state firm put clerks into high-power roles after government officials banned from boardrooms
Questions about hiring and qualifications of youthful board at SOE in Shandong suggest managers were caught out by sweeping business reforms

Is Alibaba Endangered by China’s Slowing Economy?
The e-commerce giant lowered its full-year estimates due to current macroeconomic conditions

Alibaba’s ‘Double 12’ shopping event sales driven by food platforms
After breaking its own sales record during November’s Singles’ Day shopping extravaganza, Alibaba saw increased sales through its food platforms during the “Double 12” e-commerce event. Alibaba’s goal for the Double 12 shopping gala, which takes place on Dec. 12 every year, has changed several times since its inception in 2012. Initially, it was used to push unsold goods from the company’s Singles’ Day event, also known as Double 11. The focus then changed to promoting the use of Alipay in offline stores.

China’s countryside revival gets a government push with farm subsidies and other reforms
Mechanisation and technological advances to be made available for small household farms in new commitment from Beijing

Concubines to Cosmetics: Palace Museum Debuts Beauty Products
Two companies endorsed by the Beijing tourist mecca announced their new beauty lines within a day of each other.

After losing half its value, Nvidia faces reckoning
Crypto, customers and China. That’s how you lose half your company’s value in two months.

Dismantling of troubled Chinese insurer Anbang continues as it sells bank stake for US$2.4 billion
Anbang continues spinning off business units and financial licences as it divest from debt-fuelled investment

Smog on the rise in northern China as winter looms, Greenpeace says
Upcoming heating season will test whether local governments can meet lower pollution cuts – and what punishment they will face if they miss targets

Chinese police shut down ‘water army’ of internet trolls paid US$4.3 million to blitz websites and social media
Authorities in Jingzhou say family-run operation was paid by public relations companies to send online army to shut down negative comment about clients

Commentary: Workers see real wages stagnant but China bucks the trend
But this was not inevitable. China, after all, has achieved rapid wage growth, and the share of national income accruing to labour is rising, despite the country’s pursuit of trade and rapid labour-displacing technologies. China’s success may vindicate a model advanced by the late Nobel laureate economist W Arthur Lewis, which explains how employment in new, more productive sectors can absorb surplus labour and push up wages over all. But, more to the point, China has augmented this effect through systematic state policies designed to improve labour conditions.

China shows its muscle
The country was at the centre of activity in the Asia-Pacific region, boosting production and imports—though some showed wariness about Beijing’s growing power

China and Russia may set up energy alliance, Moscow’s top envoy says
Ambassador in Beijing Andrei Denisov also hails military cooperation between the two countries

No IMF money to Pakistan to repay Chinese debt: US
The Trump administration is making all efforts to ensure that any IMF loan to Pakistan is not used to repay its Chinese debt, a US official told lawmakers Wednesday.

Norway and Sichuan Build Belt and Road Arctic Bridge
Norway has opened the longest suspension bridge above the Arctic Circle. The 1.5 km long bridge was built in cooperation with China’s Sichuan Road and Bridge Group (SRBG). Situated near the northern port city of Narvik, the bridge crosses the Rombaken fjord and provides a significant shortcut on the European route E6 highway – the main north-south road through Norway and the west coast of Sweden.

Operation Z machine: China’s next big weapon in the nuclear ‘arms race’ could create clean fuel – or deadly bombs
The Chinese military is building a test facility to simulate thermonuclear explosions on a much greater scale than comparable US centres Information from the experiments could give scientists a much clearer picture of how weapons perform under extreme conditions

Can South China Sea conflict between Washington and Beijing be avoided?
Urgent calls for new security talks before the two major powers stumble into a shooting war
Experts say a showdown could easily spin out of control

For Whom the Sirens Call: Life in a City Marked by Tragedy
The Nanjing Massacre dominates discussions of the city’s past, to what degree should it define the present?

What to Do if You are Arrested in China
If you are involved in a business dispute in China, you should immediately consider the risk it will be transformed into a criminal matter. If the other side in your business dispute threatens criminal sanctions against you, you should take this seriously. You need to make sure you are completely prepared to deal with the issues. Moreover, you need to be completely sure that what you consider to be an entirely innocent commercial dispute is not in fact a potential crime under the wide application of economic crime applied in China. And if it is, you need to prepare for that

7 million people in China left cities to move to rural areas and take up farming last year, and it reveals a growing trend
A rising number of educated urbanites in China are choosing to wave goodbye to city life and head back to the land. “Reverse urbanization” is picking up as infrastructure improves in remote areas.
Last year the Ministry of Agriculture announced that seven million people had returned to the countryside from cities. Of these, 60% had done so to work in agriculture.

podcast : The cockroach industry is booming in China
In China, you can get rich by breeding insects. The Gooddoctor company processes cockroaches. So far, it’s generated sales of almost 700 million euros in China alone.

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