China Press Review – December 18, 2018

Press review

Xi Jinping: China to stick to Communist rule and its own path to cope with ‘unimaginable’ perils
Chinese president avoids specifics for the road ahead Audiences at home and abroad need convincing that reforms started 40 years ago will continue

Xi Jinping says China ‘will not seek to dominate’
Chinese President Xi Jinping has vowed that his country will not develop at the expense of other nations, in a speech marking 40 years since China introduced major economic reforms.

Xi Jinping: 40 years of economic reforms without any political reform
The Chinese president has extolled Deng Xiaoping’s modernizations, which has propelled China to becoming the second largest economic power in the world. Silence on the “fifth modernization”, democracy, and on the economic reforms needed today. The leadership of the Chinese Communist Party reaffirmed, a guarantee of development.

China’s Crisis of Overconfidence
A culture of inflated praise rapidly becomes corrosive, as China knows only too well from its own history.

On Anniversary of China’s Reforms, Xi Doubles Down on Party Power
President Xi Jinping of China, center, speaking on Tuesday at the Great Hall of the People in Beijing. Some investors had hoped for signals that Mr. Xi would take further steps to liberalize the economy or ease tensions with Washington.

Xi Jinping’s Story of Reform
Today marks the 40th anniversary of the opening of the 3rd Plenary Session of the 11th Central Committee of the Chinese Communist Party, the political meeting that marked the start of China’s long journey of “reform and opening.”

Lee Kuan Yew among foreigners honoured for helping China to open up
China recognises statesmen, engineers, entrepreneurs and diplomats whose skills played a vital part in reforming economy and elevating country to powerhouse status

5 things to know about China’s Central Economic Work Conference as policymakers plan US trade war fightback
Annual meeting of top officials begins at Jingxi Hotel in Beijing on Tuesday and will discuss the economic policy for next year Measures to address impact of ongoing tensions set to be high on the agenda for the likes of President Xi Jinping, Premier Li Keqiang and Vice-Premier Liu He

China Should Remember Its Friends
By taking all the credit for the country’s stunning economic rise, the Communist Party is threatening its continued prosperity.

China’s New Growing Pains Not All Due To Trump’s Trade War
China’s manufacturing is not in a crisis. It is, instead, at a crossroads

China’s billionaire factory Shenzhen faces new risks in Donald Trump era
Many of city’s tycoons have been hit by ‘wealth rout’ in Chinese internet stocks that was driven by the trade war

China, Hong Kong stocks slide after president’s milestone speech leaves out stimulus for kick-starting a slowing economy
Xi did not give clear signals about direction of future economic reform at a time when the Chinese government’s commitment to market liberalisation is seen to have waned

Chinese tech companies should focus on conquering the world from Shenzhen, as hostility increases abroad
Janet Pau says that given the hostile investment environment overseas, it’s time for Chinese tech players to forge a new growth path in the Greater Bay Area in the global race for technological supremacy

Will US firms’ Macau casino licences get politicised by US-China trade war? Don’t bet on it
Investment banks forecast a cooling in Macau casino stocks on the back of an economic slowdown in China, reduced cash flows and policy risks Shares in all six casinos have plunged since July

China’s $856 Billion Startup Juggernaut Is Getting Stuck
Government-backed venture capital funds don’t know what to do with all their cash.

European biotech an attractive option for Chinese investment, says VC exec
Chinese investors are looking abroad for technology that will provide short-term returns and long-term health benefits to its large patient population, according to Panacea Ventures partner.

‘There’s a human cost to these political situations’: Chinese arrests all too familiar for past Canadian detainees
Kevin and Julia Garratt were running a coffee shop in northeast China in 2014 when they were seized by state security, becoming pawns in Beijing’s ploy to stop Canada from extraditing businessman Su Bin to the US Neither side has directly linked the arrest of Huawei CFO Sabrina Meng in Vancouver with the detention of two Canadians in China, but the Garratts believe it is a tit-for-tat reprisal

Opinion: China-US trade growth over the past 40 years augurs cooperation to continue
The China-US two-way trade has witnessed the most gigantic growth in human history over the past 40 years since diplomatic relations was established in 1979, but also the largest trade friction in the history of world trade in 2018.

China’s holdings of US Treasuries tumble to the lowest level since May 2017
China’s holdings of notes, bills and bonds dropped for a fifth straight month to US$1.14 trillion in October, from US$1.15 trillion in September China remains the biggest foreign creditor of the US, followed by Japan

China green-lights tougher auto investment rules amid capacity crackdown
China’s state planner has approved tougher new regulations on investment in the auto industry, a draft of which had spooked carmakers earlier this year, as it tightens the screws on firms adding manufacturing capacity. The regulation puts the tightest restrictions on new capacity in traditional combustion engine cars, but also adds hurdles for companies investing in electric vehicles. It could, however, open the door to new plant approvals for NEV makers, which have, in effect, been suspended since the middle of last year when the last approval was granted.

Russia is an important market for Cainiao’s parent company, Chinese e-commerce giant Alibaba Group. B2C shopping site AliExpress, which Alibaba launched in 2010, is Russia’s most-popular e-commerce platform. In September, Alibaba announced that AliExpress and Russia’s top internet company, Group, would join forces to create a one-stop destination for consumers to communicate, socialize, shop and play games, all within the same online ecosystem.

Japan presses its advantage after year of Chinese investment missteps
Earlier this year, as Japan’s Prime Minister Shinzo Abe was considering teaming up with arch rival China to help deliver infrastructure projects under the country’s US$1 trillion Belt Road Initiative (BRI), his ambassador to Indonesia was overseeing the finishing touches of an early study to construct a railway between Jakarta and the country’s second city, Surabaya

China hopes for ‘orderly’ Brexit, calls for more open EU economy
China hopes Britain’s exit from the European Union can happen in an orderly way and that the bloc will reduce hurdles to Chinese investment and keep its markets open, China’s foreign ministry said on Tuesday.

Huawei on track for record smartphone shipments in 2018, defying outlook worries amid CFO arrest
Global shipments of Huawei’s two smartphone brands, Huawei and Honor, expected to reach 200 million by December 25

Huawei lands more than 25 contracts for 5G, forecasts revenue to exceed US$100 billion
Shenzhen-based Huawei’s pipeline of commercial 5G contracts has resulted in its shipment of more than 10,000 base stations for the next-generation mobile technology

Huawei’s Meng Wanzhou and the rich Chinese daughters following in their father’s corporate footsteps
Previously low-profile chief financial officer is the daughter of Ren Zhengfei, founder of the Chinese telecommunications giant Country Garden cochairwoman Yang Huiyan and New Hope Liuhe chairwoman Liu Chang are among those climbing the corporate ladder in mainland companies

Chinese tech start-ups are tapping into Southeast Asia amid tough relations with US in trade war, NYSE executive says
‘Southeast Asia is one of those areas where it has been explored before, but now there is that new focus,’ says Betty Liu, executive vice-chairwoman at NYSE A shift would challenge US markets to draw more companies from China, which has become a growth engine

First-tier cities’ housing prices fall once again
Four of China’s biggest cities reported a drop in the average price of pre-owned homes for the third consecutive month in November, indicating mounting pressure on the Chinese property market,as revealed in government data on Saturday.

Corporate tax cuts are China’s best option for boosting growth
Infrastructure spending could give quicker lift but would aggravate debt problem

Spider-Man quoted as China warns United States ‘with great power comes great responsibility’ in trade war
Beijing’s ambassador to the World Trade Organisation (WTO), Zhang Xiangchen, reminds US of the need to be accountable in trade affairs American counterpart Dennis Shea says global trade environment ‘heavily skewed’ in favour of China

China Inc. to Suffer More Defaults in 2019 as Profits Stall
Energy sector leads China’s record local bond default in 2018 Private firms will face increasing liquidity pressure: S&P

China’s Gates Are Open Again
Eager for foreign investment, Chinese leaders are personally committing to increased market access in a way they haven’t in years.

China’s plans to invest $20 billion in Egypt collapse
Plans for a Chinese company to invest $20 million into a new capital east of Cairo have collapsed, Egyptian officials say.

China’s Last Grand Stimulus Project
This new silk road is the last thing that China’s top-down, quasi-communist, crony-capitalist government will try to overbuild before the house of cards collapses, led by defaults on loans to partnering emerging countries…

Apple releases iOS update to resolve Qualcomm patent dispute
Apple has released an update to its mobile operating system iOS in an effort to settle a patent dispute brought to a Chinese court by US chipmaker Qualcomm. The company released iOS 12.1.2 on Monday, which aims to address Qualcomm’s concerns. It also forms part of a broader update to resolve eSIM issues

China’s New Environmental Story
Over 20-plus years, China has gone from ignoring pollution to taking center stage at climate talks. Here’s how that happened

Wall Street’s #1 Problem Isn’t The Trade War With China
Wall Street’s most important problem isn’t America’s trade war with China. It’s political uncertainty combined with the end of easy money. The end of the year is usually a good time for Wall Street. Investors are in a party state of mind, which creates a “buy-buy” mentality and sends major market averages northward.

Hundreds Queue for Refunds at Ofo’s Beijing Headquarters
Reports of users not getting their deposits returned in a timely manner have led to a bank run-like scene at the bike-sharing company’s office in the capital.

ofo users descend upon its Beijing office to demand refunds
More than 100 users of cash-strapped bike-rental platform ofo gathered outside the company’s Beijing office yesterday to demand deposit refunds. The users had paid up to RMB 199 (around $30) to register on the platform. The company allowed batches of people into the building every 10 minutes to make their cases. However, even after showing up users couldn’t immediately get their money. They were asked to write down their personal information and promised refunds within three days.

It’s Time to Hold Juvenile Offenders Responsible for Their Acts
The minimum age of criminal responsibility is 14 in China, but in the aftermath of a number of high-profile cases, some legal experts are pushing for a change.

Santa Claus won’t be coming to this town, as Chinese officials ban Christmas
Ban on festive decorations, retail sales intended to ‘maintain stability’, officials in Langfang say in social media post Locals also asked to report people ‘spreading religion’ in public

Death penalty may await Chinese aircraft carrier builder boss for alleged spying role
Details are unclear but signs point to deep trouble for Sun Bo over espionage claims Beijing may want to use case as a warning to others, source says

Alain Gillard
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