China Press Review – December 21, 2018

Non classé, Press review

As the US-China trade war rages, scepticism over Chinese-led deals rises in Europe
Environment ‘tougher’ as concerns grow among European governments over Chinese efforts to acquire technology leaders European Union considering new measures to block deals on national security grounds

Chinese banks’ shares sink after Beijing reportedly tells them to control profit to support economy
Regulator tells lenders to increase funding to small businesses and not to ‘let the profits shoot too high’, according to the Securities Times

President Xi Embraces Marx, Rejects Coase And The Facts
China is slowing down. Forget all the reported statistics and those that have recently been discontinued—like Guangdong’s monthly purchasing managers’ index—money and credit tell the tale. Indeed, there is a strong link between the broad money growth in China and nominal GDP growth. For example, during the 2003-2017 period, the money supply (M2) grew at an average annual rate of 14.92% and nominal GDP grew at a 14.67% annual rate. The chart below indicates that both money and credit growth rates in China have declined rapidly over the past two years and are well below their trend rates of growth. The money supply (M2) rate of growth is only about 8% yr./yr.; whereas, its trend rate is nearly double that.

How China Could Blow It
There already are some signs that the country is making mistakes that will hobble economic growth.

Commentary: US-China rivalry an old-fashioned security clash, not about trade or economics
The challenge might seem to be arising from China’s economic behaviour on the surface but that’s not the case, says Stephen Grenville.

Thucydides Trap author Graham Allison says China and US must work together and not end up on path that leads to war
Harvard scholar Graham Allison says China’s rising influence sets it at odds with the US’ notion of itself as a superpower and both need to take a step back

EU expands WTO case against China’s alleged forced technology transfers
European Union challenging laws that regulate the approval of investments for electric vehicles and biotechnology and the approval of joint ventures across sectors Beijing has previously said such transfers that concern the European Commission are voluntary and not forced

WTO warns global trade is suffering ‘a death from a thousand cuts’ as 2019 fears increase
World Trade Organisation’s chief economist Robert Koopman follows up comments by US Federal Reserve chairman Jerome Powell Impact of the trade war between China and the United States and possible slowdown in the world economy next year is concerning financial markets

China’s private firms shy away from bank borrowing, delaying investment
Government efforts to boost bank lending to struggling private sector are getting lost in mixed messages and growing economic uncertainty Companies are postponing investment as they wait for outlook to clear

The CCP’s Model of Social Control Goes Global
And an academic disclosing the mechanism gets caught in its crosshairs

China’s economy had a rough year. 2019 is looking worse
This week, Chinese President Xi Jinping and the country’s top policymakers are gathering in a guarded military hotel in Beijing to come up with answers to the economic challenges they face.
A 90-day trade truce with the US has bought China time, but a resolution to the conflicts between the two countries racked up over China’s boom years is anything but inevitable.

Sino Land rolls out homebuyer incentives package, including low mortgage lending rates, for Grand Central project
Hong Kong property developers are beginning to roll out incentives to help shield homebuyers from the latest borrowing costs Sino Land has an incentive package on offer at Grand Central in Kwun Tong, including a mortgage rate as low as 2.375 per cent

China’s financial commission deny tax cut rumour
Online claim said China’s leadership has decided not to cut taxes or fees during the ongoing Central Economic Work Conference One-sentence statement from the Financial Stability and Development Committee reflects Beijing’s eagerness to shore up fragile market sentiment

The 3 Surprising Predictions for China Cross-Border E-Commerce in 2019
2018 has been a great year for the cross-border e-commerce industry in China.
The Chinese government’s decision to lift purchase limits on cross-border e-commerce (CBEC) indicates a strong outlook. More opportunities will emerge for international brands and retailers looking to access the China market.

As Walmart takes on China’s booming delivery market, it’s going for a smaller store
As online delivery services grow in China, Walmart is testing a smaller store in Chengdu in partnership with Chinese logistics company Dada-JD Daojia.The more compact layout and integration with a customized warehouse management system significantly cuts packing time to potentially just a few minutes, according to Yang Bo, principal, major customers nationwide, at Dada-JD Daojia. Walmart hopes to expand the pilot to other locations in China, while also growing its e-commerce operations in other major Asian markets and the U.S.

China’s industrial policies distort the market
Scott Kennedy of CSIS says China’s industrial subsidies and separate standards damage to global market because of the sheer size of the Chinese economy.

Taiwanese chip maker TSMC to build the world’s first 3nm chip factory
Taiwan-based chipmaker TSMC has received the green light to build what is said to be the world’s first 3-nanometer manufacturing plant. TSMC, currently the world’s largest contract semiconductor manufacturing firm, has been cleared to begin the construction of the new chip factory at the Southern Taiwan Science Park in Tainan, according to Taiwan News report.

Exclusive: Foxconn plans $9bn China chip project amid trade war
Zhuhai’s subsidy to fund Apple supplier semiconductor ambition

China’s robotics spending to reach $80 billion in four years
China’s spending on robotics and related services is expected to reach $80 billion by 2022, 38% of the global market, according to market intelligence firm International Data Corporation. The sector is predicted to reach an annual compound growth rate of 27%. The firm says that discrete manufacturing industries, including auto, electronics, and metal processing will reach a market size of almost $17 billion next year.

Tencent joins Naspers in US$1 billion funding for Indian food delivery service Swiggy
Swiggy is one of a clutch of fast-growing Indian start-ups capitalising on rapid smartphone adoption across the country Chinese tech companies meanwhile are spreading their net across Asia

China looks to private capital, open source technology for global tech game advantage
China is racing against time to establish its own technological intellectual property, particularly in the semiconductor industry. The moves come amid growing pressure on Chinese tech companies overseas, underscored by the recent arrest of Huawei CFO Meng Wanzhou and punitive measures by the US on Huawei rival ZTE.


Xian tops list of cities with biggest home price increases globally
20 per cent price jump in year up to September after influx of 800,000 new residents, according to Knight Frank study Hong Kong ranks seventh with an increase of 15.8 per cent in the same period

China’s Evergrande cools down from a wild ride
Property developer struggles to find new funding and growth engine

China denies detained Canadian ex-diplomat Michael Kovrig access to a lawyer
Detention of Canadian has been linked to detention of Huawei executive Sabrina Meng Wenzhou, who was given bail by a Canadian court International Crisis Group says ‘the unfortunate reality’ is that its employee has been unable to receive legal advice since being detained 11 days ago

Why China’s exit ban is worrying for travellers
As per the travel warning of the governments of Canada: “You may not be aware that authorities have placed an exit ban on you until you try to leave the country. It is difficult to obtain information on bans from Chinese authorities. If you are unable to leave the country because of an exit ban, consult a lawyer and contact the closest office of the Government of Canada.”

Destination Canada pulls tourism ad in China
As diplomatic tensions between Ottawa and Beijing continue, Destination Canada said it is “pausing” its marketing efforts in China.

US, allies to condemn China for economic espionage
The Trump administration and more than a dozen international allies are expected to call out Beijing on Thursday (Dec 20) for what they say are China’s persistent efforts to steal other countries’ trade secrets and advanced technologies and to compromise sensitive government and corporate computers, according to Western officials.

US’ cyber hacking claims fabricated, says Beijing as Chinese duo face charges
Justice Department in US says the two accused acted for Chinese ministry to hack into companies and government agencies in at least a dozen countries Chinese foreign ministry responds by accusing Washington

Latest US move against China shows new look: working with allies
The United Kingdom, Australia, Canada and New Zealand joined Washington on Thursday in condemning Chinese cyber-espionage. The fact that the campaign was executed as a united front is significant, said one expert. China’s Foreign Ministry has rejected the accusations, calling them “slanderous.”

China’s public toilets now have facial recognition, thanks to Xi Jinping
Stand in the yellow identification area and bring your face close to the facial recognition machine. Three seconds later, exactly 90 cm of toilet paper will be dispensed. Then, you may go in and do your business – but not for too long, otherwise an alarm will sound off. The sensors inside the toilet evaluate the ammonium level and release a deodorizer if necessary.

Do You Want to Read More About China?
Here are some suggestions from The Times Book Review archives to get you started.

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