China Press Review – December 3, 2019

Press review

Donald Trump: ‘no deadline’ for trade war deal with China, may come after US election
US President Donald Trump says it is up to him to decide whether to make a deal with China  He adds that he ‘likes the idea’ of waiting until after the US presidential election

US-China trade war is ‘unresolvable,’ strategist says
Analysts have been weighing in on the potential economic impact of the U.S. and China’s “phase one” deal being signed for months. Many have speculated that while markets may respond positively to the prospect of a deal, its effect on the wider economy is likely to be limited. Speaking to CNBC’s “Street Signs” last week, Keyu Jin, associate professor of economics at London School of Economics, described the phase one agreement as a “face deal” that would be a political gift to Trump because it would encourage stocks to rally.Meanwhile, Yale University professor and former Morgan Stanley Asia Chairman Stephen Roach told CNBC in November that the deal was “pretty hollow” but “politically expedient, especially for the U.S. president

Bloomberg’s Soft-on-China Trade Policy Unique in Democratic Presidential Field
In announcing his candidacy for the Democratic presidential nomination last week, former New York mayor and media tycoon Mike Bloomberg added a new wrinkle to the ongoing debate about President Donald Trump’s trade war with China, and perhaps further, to the entire relationship between Washington and Beijing

How to Protect Your Company Information When You Travel to China
A lawyer’s job is to discern their clients’ risks and help them avoid them. We are both trained and paid to be paranoid.

The New Cold War? It’s With China, and It Has Already Begun
Public opinion made a similar shift. A Pew Research Center survey showed that the percentage of Americans holding an unfavorable view of China jumped to 60 percent in 2019 from 47 percent the year before. Only 26 percent of Americans held a favorable view of the country.Something else changed in 2019. What had started out as a trade war — a tit for tat over tariffs while the two sides argued about the American trade deficit and Chinese intellectual property theft — rapidly metamorphosed into a cluster of other conflicts.In short order, the United States and China found themselves engaged in a technology war over the global dominance of the Chinese company Huawei in 5G network telecommunications and an ideological confrontation in response to the abuses of Uighur Muslim minorities in China’s Xinjiang region, as well as a classic superpower competition for primacy in science and technology. The threat also loomed of a currency war over the exchange rate for the Chinese yuan, which the People’s Bank of China has allowed to weaken against the dollar.

China Isn’t the Soviet Union. Confusing the Two Is Dangerous.
An unusual confluence of events World War II led to America’s bitter rivalry with the U.S.S.R. That pattern is not repeating.

Why the China–Japan economic relationship overrides political tensions
For more than a century, close economic ties between China and Japan have developed in the absence of cooperative political and security relations, suggesting that the first is not a necessary precondition for the second. But the relationship also demonstrates the limits of the thesis that close economic ties can mitigate key sources of bilateral insecurity or political tension.

Billionaires Investing in China’s Electric Cars Face Shakeout
Some of China’s wealthiest tycoons steered billions of dollars into electric-car companies in order to fuel the country’s dreams of becoming a leader in the field. Now a reckoning may be looming as car sales slow and the government reduces subsidies for the nascent industry. That leaves the flagship companies of Jack Ma, Pony Ma, Hui Ka Yan and Robin Li facing an increasingly steep path to profitability on their bets that electric vehicles can be smartphones-on-wheels connecting passengers to other businesses. Their capital, along with dozens of startups raising $18 billion, helped inflate an electric bubble that now looks to be in danger of popping.

China’s new NEV plan allows automakers greater autonomy in tech development
China will minimize government intervention to allow carmakers more freedom to decide the direction of new energy vehicle technology development, according to a plan published Tuesday by the Ministry of Industry and Information Technology (MIIT).  Why it matters: The new plan is regarded as a major policy shift from an earlier initiative which aggressively promoted all-electric vehicle development as part of Beijing’s push for a global leadership in key technologies.

Bosch will develop fuel cell batteries in China
Bosch broke ground on a fuel cell battery development center last week in the east China city of Wuxi with the aim of supplying the emerging local fuel cell vehicle market.

Commentary: China walks the talk on climate change
Beijing has established an international green development coalition under the China-proposed Belt and Road Initiative and has launched cooperation projects to set up pilot low-carbon industrial parks in Cambodia, Laos, Kenya and other developing countries.  Looking ahead, China will continue to do what it can on climate change as a responsible major country. And as nations of the world gather in Madrid to discuss one of the most pressing dangers facing humanity, the world needs not only a clarion call for more action, but also real input from everyone.

Can Chinese aid go green?
An initiative in China is rethinking the way that China invests in Asia, helping to expand China’s investment in the renewable sector, writes Feng Hao

China must address EU concerns on market access, sustainable growth – and Hong Kong – in talks on an investment agreement
A comprehensive pact, now years in the making, is crucial for spurring growth and job creation    Beijing should make genuine efforts to level the playing field for doing business in China, improve environmental and labour standards, and honour its commitments on ‘one country, two systems’ in Hong Kong

Farfetch Wants to Be the KOL of Fashion Digits
Chinese consumers are the youngest luxury shoppers and makeup the highest average unit value on-site for Farfetch.

China hopes to cut work permit red tape for foreigners as part of plan to boost Yangtze River Delta
Pilot projects to streamline the process will be introduced across the region, which includes major economic powerhouses such as Shanghai, Nanjing and Hangzhou    At present many foreign workers complain they have to navigate a maze of paperwork and renew their work permits annually

How to Stay Compliant under China’s New Foreign Investment Law
For foreign investors who maintain operations in China, or plan to enter the market, figuring out the impact of the new Foreign Investment Law (FIL) on their plans is a business-critical task.   Among the incentive, management, and protection measures introduced, Article 31 and Article 42 of the new FIL clarify issues related to the organizational form, governing structure, and operating rules for foreign investments.

Huawei Breaks Silence After Sending Former Employee to Jail
Netizens are up in arms over revelations that the Chinese telecom giant accused a former employee seeking severance of extortion. He was detained 251 days before being released for lack of evidence.

TikTok sent US user data to China, lawsuit claims
Video-sharing app TikTok has been hit with a class action lawsuit in the US that claims it transferred “vast quantities” of user data to China.

A return to diplomacy could save China from itself
China’s international behaviour reflects its friendlessness: it relies on bullying and bluster, subornation and subversion rather than negotiation and persuasion. That is self-defeating.  A return to diplomacy would serve its interests and the interests of the global community. And that’s where Australia and a coalition of like-minded countries can have a positive effect. Diplomacy, in the words of the diplomatic theorist Ernest Satow, is ‘the application of intelligence and tact to the conduct of official relations between the governments of independent states’. For an embattled China, conversation at all levels is preferable to confrontation.    An adroit, engaged diplomacy is the challenge for both China and Australia.

China is ‘coming closer’ but we don’t want a new adversary, NATO chief says
NATO’s secretary general insisted that the military alliance did not want to “create new adversaries.”  Jens Stoltenberg said that “as long as NATO allies stand together, we are strong and we are safe.”  The South China Sea is an area that is subject to various territorial disputes between China and other nations who claim sovereignty to some or all of the islands in the region.

China’s central bank injects liquidity into market in November
China’s central bank continued to pump cash into the money market in November to meet liquidity demand from financial institutions.  A total of 600 billion yuan (about 85.4 billion U.S. dollars) was injected into the market via the medium-term lending facility (MLF) last month to maintain liquidity in the banking system at a reasonably sufficient level, according to the People’s Bank of China (PBOC).

Missed bond payment by China’s state-owned Peking University Founder Group shocks investors
Peking University Founder Group, controlled by China’s top university, misses payment on a 2 billion yuan (US$283 million) onshore bond, citing liquidity crunch

China is becoming the biggest movie market in the world — and changing what you watch
The growing cinematic superpower is forcing blockbusters to change before accessing its audiences

Fact, not fiction: China, US, want to harvest solar energy directly in space
Since the idea first appeared in science fiction, countries have been envisioning a way for humanity to harvest solar energy directly in space.  China plans to accomplish a 200-tonne megawatt-level space-based solar power station by 2035 With an investment of 200 million yuan (28.4 million U.S. dollars), China is building a testing base in Bishan, southwest China’s Chongqing Municipality   The American Naval Research Lab has already demonstrated a potential precursor to the technology
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