China Press Review – December 3, 2018

Press review

US and China agree 90-day trade tariff ceasefire after China agrees to buy ‘very substantial’ amount of American goods
Donald Trump agreed to hold off on raising the tariff rate on US$200 billion of Chinese imports for 90 days to allow for additional negotiations to address US concerns on Chinese trade practises, the White House saidina agrees to buy “very substantial” amount of US goods to reduce bilateral trade imbalance

Trump’s slump: what the US and Chinese leaders’ body language tells us about their G20 talks
While Chinese President Xi Jinping seemed secure and confident, his US counterpart appeared defensive at their dinner in Buenos Aires Barrage of questions from press appeared to irritate Donald Trump – although it seemed to amuse his Chinese counterpart, who does not normally face this sort of problem

China’s central bank backpedals on policy to cut debts
China’s central bank has started backtracking on efforts to pare down swollen company and local-government debt, admitting that its strategy has caused a credit crunch. Yi Gang, governor of the People’s Bank of China, recently apologized for the bank’s policy failure, which he said has led to difficulty in private-sector financing

China, Michael Pillsbury, and China’s Strategy to Replace America
You know how when you buy a new car you all of a sudden see a ton of those cars on the road? I feel like I’m experiencing something similar with Michael Pillsbury. Starting about a week ago, a number of my firm’s lawyers (from both our international trade and international law groups) started mentioning “the importance” of Michael Pillsbury in determining how President Trump will negotiate with China and what terms he will accept from China in return for a trade deal.

China, Michael Pillsbury, and China’s Strategy to Replace America

Hong Kong business leaders welcome 90-day trade truce between China and US – but some are still considering relocating factories
Head of small businesses trade body waiting to see how things develop in 3-month tariff grace period President Xi Jinping and his US counterpart Donald Trump agree to truce following meeting at G20 summit in Buenos Aires

Is Donald Trump’s short-term game plan enough to spoil China’s long-term economic, geopolitical strategy?
China’s 2008 stimulus was modest compared to the US$3.5 trillion by the US, or Europe’s US$2.9 trillion, or even Britain’s US$550 billion

Trump-Xi trade ceasefire isn’t enough to resolve the US and China’s deep divisions on trade
While the 90-day deadline gives both sides breathing space, Ankit Panda argues that more is needed to finally end the trade war

Forced tech transfers and intellectual property theft will likely dominate trade talks after Trump-Xi deal
American concerns over forced technology transfers in China, intellectual property violations and cyber-crime issues will be a central focus as trade talks continue between both countries but a resolution may not be immediately forthcoming, experts told CNBC on Monday. The downplaying of those issues could reflect the reality of what to expect from the ongoing negotiations — that there are no quick fixes to the complexities of forced technology transfers and intellectual property violations, according to Adam Posen, president of the Peterson Institute of International Economics.

The US-China Trade War Pause: What to do NOW
During this pause, which is to last for 90 days, the United States and China will seek agreement on key issues, such as China’s non-tariff barriers, China’s technology transfer policies, China’s lack of intellectual property protection, China’s cyber theft, and more. Here’s the problem. There is almost no way China will move far enough of any of these issues to appease the United States and if President Trump is to be believed, this will mean the end of the 90 day truce and all bets will again be off in terms of the United States imposing steep tariffs on a wide-range of goods imported from China.

The US-China Trade War Pause: What to do NOW

Six key things Xi Jinping and Donald Trump discussed at G20 summit dinner
A 90-day truce in the US-China trade war was the headline outcome from the Argentina summit What else can we conclude from the statements from the two countries?

Xi Jinping and Donald Trump: a beginner’s guide to translating Chinese diplomatic speak
Language used in statements issued after the two leaders meet in Buenos Aires will offer clues as to the temperature in the room – so what does it all mean?

Trade war or not, experts say China’s yuan is poised to become a global heavyweight
The Chinese yuan is set to grow in importance over the long term, experts say. China’s ongoing financial opening is likely to have a “more enduring influence” on yuan investment flows than the ongoing tariff conflict with the U.S., HSBC says. China still maintains capital controls but it has trickled out financial reforms, with foreign investors obtaining more access to its stock and bond markets.

Yuan the Conqueror: Chinese currency poised to become global heavyweight, economists say
The global importance of the Chinese yuan seems destined to rise, according to strategists and economists who say flows in the currency will grow over the long term if Beijing continues to gradually open its financial system.

Still poor or a superpower? Defining China central to trade dispute
Impoverished developing country or emerging economic powerhouse? The perception of China’s fortunes matter more than ever as a trans-Pacific trade war accelerates.

China’s growth is driven by communist capitalism
While there are growing tensions between capitalist success and liberal-democratic principles, there are no such tensions with Chinese-style communism. Instead, the tensions appear between Chinese companies and countries trying to protect their citizens’ rights and privacy.

China’s Banking Association To Boost Consortium Loans
The aggregate consortium loans provided by Chinese banks have reached 6.97 trillion yuan (about 1 trillion U.S. dollars) in the first half of 2018, up 8.87 percent from the end of last year,

US concerned about Chinese investment in Indo-Pacific region
US civil and military officials are skeptical about Chinese policy and investment in the Indo-Pacific and stepped up Washington’s efforts to expand its engagement on a rule-based system for the mutual benefit of the countries in the region.

Trump’s description of the China trade deal doesn’t match the official White House version
President Donald Trump’s claims about the U.S.-China agreement to pause tariff escalations weren’t corroborated by the White House’s official statement on the matter. Trump’s bold remarks likely reflect the fact that he’s under pressure from American businesses to resolve the trade spat. For the U.S. leader, “it doesn’t matter to him what the details are as long as he looks strong to his supporters,” said Mintaro Oba, a former U.S. State Department official.

China Partly Censors U.S. Embassy Statement on Trade Truce
For example, the Chinese statement did not include mention of the 90-day deadline or a requirement that the nation begins buying more U.S. farm, energy and other products.

Stocks and oil jump after the US and China reach trade truce
A ceasefire is better than an escalating trade war as far as investors are concerned.
Stocks jumped higher around the world on Monday after the United States and China said they would hold fire on further tariffs for the time being and try to settle their differences through talks.

Stocks and oil jump after the US and China reach trade truce

Trump says China agreed to reduce tariffs on US car imports
Beijing will “reduce and remove” the 40% tariffs it places on US cars imported into China, US President Donald Trump has said.

China Is Rising Faster
Wang says that it has been primarily China’s development that has driven changes in the U.S.-China relationship going back to the Qing Dynasty. However, the U.S. still has significant influence and can play an important role in guiding China’s future trajectory. Wang argues differences in political systems and economic development models, as well as the tensions over technological innovation, are the core sources of competition in the bilateral relationship.

G-20 Summit: A Letter to the President
Efforts to End the Trade War Continue Leaders from the Freedom Partners, Americans for Prosperity and The LIBRE Initiative join forces to send President Donald Trump an urgent request for trade and tariff resolutions, following this year’s Argentina G-20 Summit.

G-20 Summit: A Letter to the President

WTO paralysed as leaders try to defuse US-China trade war
Global trade body suffers after being caught in crossfire of dispute between world’s two biggest economies

China deserves its economic success
We should not underestimate China’s capacity to handle both longstanding and new challenges, including the trade war that Trump has initiated. In fact, given their past record, it seems likely that China’s leaders will only become more determined to continue calibrating the country’s growth model, opening up the economy, and implementing further structural reforms, all in the service of their ultimate goal: A China that takes its place among the world’s advanced economies.

Cracking the Chinese market requires patience and localization, Western executives say
Companies need to approach Asia with a long-term strategy, says Hakon Bruaset Kjol, senior vice president, partner and external relations Asia, at mobile network operator Telenor. Kjol and other executives share their advice on doing business in China and Asia at CNBC’s East Tech West conference in the Nansha district of Guangzhou, China. Three of the largest U.S. sports and entertainment groups are taking a relatively slow, localized approach to China, regional heads say.

Jack Ma says ‘all in’ strategies are not panacea for corporate prosperity
Jack Ma, founder of Alibaba, said that few companies grow bigger and better because many of them only believe in gambling on popular tech and business ideas. The business guru said trending industry or investment topics can no longer sustain the tech and business ecosystem in China. He added that billion-dollar valuations built on a few employees and tall tales for the sake of investment are not good phenomena.

Briefing: Jack Ma says ‘all in’ strategies are not panacea for corporate prosperity

China now ‘open’ to Qualcomm-NXP deal, White House says
Beijing changes tune on $44bn acquisition as trade war eases Chinese President Xi Jinping said he is “open to approving” Qualcomm’s purchase of Netherlands-based NXP Semiconductors should it be presented to him again, a deal essentially killed by Beijing, according to a White House statement following Xi’s meeting with U.S. President Donald Trump on Saturday.

How cheap labor drives China’s AI ambitions
The ability to tag image data may be China’s true AI strength, the only one that the United States may not be able to match. In China, this new industry offers a glimpse of a future that the government has long promised: an economy built on technology rather than manufacturing.

Turn down a seat at the Greater Bay’s US$1.5 trillion feast? That timidity is very unlike Hong Kong’s entrepreneurial spirit
We would not be asking for favours, but pointing to the changes that would add to the strength and dynamism of the hole region, just as they did for Hong Kong There is a fringe minority – let’s call them “Hexiters” – who seek to keep the Greater Bay Area at arm’s length

Russia-India-China agree to strengthen multilateralism including WTO
Russia-India-China or commonly known as RIC reviving its leadership level meet after 12 years called for strengthening multilateralism and reforming multilateral institutions including UN and WTO and underscored open global economy amid current geo-economic tensions.

China’s BRI to write new chapter in China-Portugal ties
“It is difficult to separate the Portuguese enthusiasm about the BRI from the overall state of bilateral relations,” said Carlos Rodrigues, head of the Department of Social, Political and Territorial Sciences at University of Aveiro, noting that the political, economic and cultural relations between Portugal and China are “at the highest point.”

German president heads to China as Beijing courts European economic ties
Frank-Walter Steinmeier’s trip comes as trade between two countries on track for all-time high

China manufacturing sector improves marginally in November on stronger domestic demand, new data shows
The Chinese manufacturing sector activity improved marginally in November as strong domestic demand offset a drop in export orders, according to the Caixin purchasing managers index released Monday But manufacturing sector growth remained weak in November

Why China should not fear the bogeyman of inflation
David Brown says there’s no reason for Beijing to hold back from doing what’s necessary to boost its economy when the inflation outlook is tame and monetary growth modest, amid a soft global economy

Why is China investing so heavily in Greentech?
China is currently the largest investor in clean energy development albeit still the world’s largest emitter of carbon dioxide. It recently pledged as part of the Paris Agreement to source 20% of its energy by 2030 in low-carbon. China is following through with their promises, accounting nowfor 60% of global solar cell production as of 2017, leading the way in wind energy investment through such companies as China Energy Investment Corporation and being the largest electric vehicle market in the world.

Why is China investing so heavily in Greentech?

Steel yourself, there’s bad news for anyone with asthma or who likes to see the Fragrant Hills from their office block this winter

China’s stock market needs to ditch its patchwork rules for a clean start at its watershed moment
After 28 years spearheading China’s four-decade experiment with capitalism, the capital market has reached a watershed moment

Don’t read too much into the Hang Seng Index’s remarkable November comeback
Nicholas Spiro says Hong Kong’s benchmark index has made a dramatic recovery, ahead of a cooling-off period in the trade war. But uncertainties loom in both the US and Chinese economies, to which the index is tightly linked

Hong Kong has played an outsize role in contributing to the growth of China’s financial market
One in every two companies on the Hong Kong exchange is mainland-linked, representing 67.3 per cent of capitalisation and 79 per cent of turnover

How China’s reluctance to expand a fragile ‘rules-based order’ weakens its trust with Europe
Mathieu Duchatel writes that China’s unwillingness to broaden a commitment with other countries to follow agreed rules contradicts its pro-multilateral governance narrative

Under the Knife in China
Lack of proper training leaves Chinese surgeons dangerously under-skilled.
Under the Knife in China

Evergrande, facing credit squeeze, looks to domestic market for fundraising
As China’s property market cools, concerns have been circulating over the financial stability of property developers The parent company of Evergrande has received approval to raise 1.21 billion yuan (US$174.21 million) through the issuance of asset-backed securities, the Shanghai Stock Exchange said on Friday

Great Wall Motor looks towards Europe with new electric vehicle brand – the Ora
The mainland’s largest maker of sport-utility vehicles sees Europe as a promising export market for Ora, its recently-launched brand geared towards electric vehicles

Leading Chinese biotech firm Wuxi AppTec says US hurdles will not dim acquisition appetite
Wuxi AppTec’s executives say they will fully comply with stringent US requirements as they pursue deals in life sciences and biotech

Dolce & Gabbana’s China faux pas shows global brands must tread gently on local sensitivities
The destruction of D&G’s brand value in China is a lesson for foreign firms on marketing missteps, the power of social media, and crisis response in China

No wonder China’s officials are depressed. They had to say goodbye to easy lives and then to lavish lifestyles. Now they’ve said hello to endless paperwork and a sea of meetings. And if that wasn’t enough, there’s Xi’s relentless anti-graft campaign

Pakistan attacks expose China’s Achilles’ heel on international stage
A series of attacks against Chinese people and institutions overseas have exposed a weak link in the country’s efforts to expand its presence overseas

Chinese navy sent to confront USS Chancellorsville in latest South China Sea stand-off
Latest confrontation in disputed waters comes weeks after two warships nearly collided

China cracks down on wedding extravaganza and extreme pranks
China is trying to put the brakes on a trend towards increasingly lavish weddings and pre-wedding pranks which can often become violent or sexualised.

Alain Gillard
Information Officer
Service Asie Pacifique
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