China Press Review – December 4, 2018

Press review

‘They cannot slow walk this’: US expects immediate action from China after trade truce, says Trump adviser Larry Kudlow
No stalling, White House economic adviser Larry Kudlow warns Beijing, after trade-war ceasefire is struck between Donald Trump and Xi Jinping The deal is said to include lower tariffs on cars and measures against intellectual property theft – but it’s not yet in writing

Xi Jinping ‘bolstered Chinese commitments’ to US by taking lead role in trade talks, says White House aide Larry Kudlow
Donald Trump adviser says he was impressed by Chinese president’s grasp of detail as he ‘made the pitch himself’ during talks in Argentina Larry Kudlow says it was unusual to see a head of state taking such a direct role in this type of negotiation but ‘he wasn’t winging it’

Winners and losers: how the trade war ceasefire might affect the fortunes of China’s partners and rivals
The 90-day grace period for world’s leading economies to renegotiate their relationship is an opportunity for other trading nations to reassess theirs

As Trump touts trade war truce, China holds its tongue
As White House officials fanned out to talk up what U.S. President Donald Trump called “an incredible deal” with China to hit pause in their trade war, Beijing has said little on a pact that cheered markets but left many questions unanswered.

With a trade war truce, China must make good on its promise to the US to review its economic policies
Tom Plate says Beijing needs the help of its think tanks to amend the policies and practices that are unfair to its trading partners, including the US, and this means allowing its scholars the freedom to explore ideas and solutions

China central bank’s dilemma: the extra cash it’s giving banks is not reaching the real economy
China’s central bank was forced in November to take money out of the banking system because banks are not using the cash to boost lending The PBOC is still trying to loosen its monetary policy to boost economic growth

US-China trade truce offers breathing space – but there will be ‘ups and downs’, Hong Kong Financial Secretary Paul Chan warns
Tariff ceasefire has helped ease uncertainties in Hong Kong’s financial market temporarily, finance chief says

Chinese exporters breathe sigh of relief on tariff truce but do not expect a quick end to US trade war
Export manufacturers are under no illusions about relations with the US Some firms say 25 per cent tariffs would kill off their businesses

The China-US G20 Agreement: Uncertainty, not Resolution
As someone who has been involved with these sorts of China IP issues for decades, I view the odds at near zero that China will make significant and meaningful changes in their system on the issues that will be discussed. This means that if the White House is serious about its absolute deadline the chances of the tariff rate being increased come January are nearly 100%. However, tariffs are very unpopular in the U.S. business community, so it is not at all clear what Trump will actually do 90 days from now.

The China-US G20 Agreement: Uncertainty, not Resolution

The Xi-Trump trade truce may not end in a peace treaty, and markets should prepare accordingly
Neal Kimberley says investors can adjust short-term plans, but the pending US tariff hike has only been delayed for 90 days And, even if the trade war is resolved for good, investors may have to prepare for more Fed interest rate rises than expected

Beijing not interested in any ‘Cold War’
Of late, there has been talk of and concern over a possible “Cold War” between the United States and China. The argument goes that Beijing and Washington are competing to establish their respective versions of “political correctness” and global order.

Hong Kong’s investor confidence plummets to lowest level in almost a decade amid trade war, market volatility
JP Morgan’s Hong Kong Investment Confidence Index falls into negative territory for the first time since 2009, the year following the global financial crisis 42 per cent of Hong Kong investors surveyed expect the Hang Seng Index to drop significantly, to between 24,000 and 26,000 by the end of April 2019

Futures drop on U.S-China trade deal doubt, bond market nerves
U.S. stock index futures dipped on Tuesday as investors turned skeptical of the chances of a breakthrough in the U.S.-China trade talks, while a flattening U.S. yield curve raised fears of a slowing domestic economy.

China’s petroyuan is going global, and gunning for the US dollar
John A. Mathews and Mark Selden say China’s yuan-denominated oil futures are being taken seriously by traders, suggesting they can help promote renminbi internationalistion to challenge the hegemony of the US dollar in world trade

China’s economy will not go the way of Japan’s or the Soviet Union’s, despite the pessimism and US pressure
Zhang Jun says China’s economic structure, its development stage and pending reforms mean growth will remain consistent, so frequent comparisons to the collapse of the USSR and stagnation of Japan are inadequate

Portugal welcomes China’s money as its influence worries EU partners
Xi Jinping’s visit to Lisbon follows EU countries’ agreement on regulation of foreign investment, particularly from China EU-IMF bailout of Portugal in 2011 prompted privatisations that brought flood of Chinese investment

Warm words from Xi Jinping for Panama on first state visit by a Chinese leader
Xi lands with high expectations of ‘huge potential’ for China-Panama cooperation First Latin American country to partner in ‘Belt and Road Initiative’

What the West Got Wrong About China
Many in the United States believed that capitalism would never work without political freedom. Then China began to rise.

OECD and China: strengthening multilateralism, partnering on international standards
Turning from the international context to China’s economy, GDP growth is projected to ease slowly to below 6.5% in 2019, given declining industrial production and moderating infrastructure investment and credit growth. With the depreciation of the renminbi helping to counteract the impact of higher tariffs, headwinds from trade tensions remain manageable, but could intensify

Focus remains on US, China race for AI supremacy at Fortune tech event as investors eye future winners
China and the US remain locked in a battle to develop AI applications despite the two countries agreeing a temporary trade war truce at the weekend Chinese internet giants Baidu, Alibaba Group Holding, Tencent Holdings and voice intelligence specialist iFlyTek, were appointed as AI national champions in 2017 to spur further development. Meanwhile, companies like Yitu Technology and SenseTime – added to the list of national champions this year – are already developing technologies to help screen for cancer and power driverless cars. Sensing a threat to its global technological dominance, the US has seized on Beijing’s Made in China plan as an example of what it sees as unfair state intervention in China’s economy. However, Gary Rieschel, a managing partner at Qiming Venture Partners, offered a different perspective, saying China’s AI ecosystem was largely the result of private enterprise and not the state.

Give commercial electric vehicles more support in Hong Kong, environmental advisers urge government
Members of Advisory Council on the Environment say government could push harder on replacing traditional commercial vehicles Commercial vehicles, including goods trucks, buses and taxis, account for about 95 per cent of all vehicular emissions

China to Punish IP Infringers After US Trade Truce
China announced Tuesday stiffer punishments for serious infringers of intellectual property — including barring them from buying real estate or going on expensive holidays — as Washington clamours for action on the issue following a trade war truce.

40% of world’s patent filings from China
A UN agency has reported that China accounted for more than 40 percent of world patent filings last year. The country has been at the head of the world rankings for 7 straight years.

Tencent Music: Chinese firm to raise $1.2bn in New York listing
It would be one of the largest listings by a Chinese company on the New York Stock Exchange this year.

Wanted: Communist Party members for high-paying jobs at internet giants
Baidu and Didi advertise for people to take charge of ‘party-building’ activities

Five Fraud Prevention Strategies to Protect Your Business in China
Foreign companies entering a high-risk market like China must pay attention to their compliance programs at the local level. Passive supervision from the top simply won’t suffice. As a starting point, the below internal control measures should be carefully considered and strengthened where appropriate.

China Trademarks: The Color of Money
According to trademark practice in China, registration of a black and white device in China would protect the logo regardless of the actual color scheme used on the device, and for that reason we typically recommend our clients file an application for the black-and-white version of their trademark

China Trademarks: The Color of Money

Shanghai’s Students Need More Homework, Not Less
Well-intentioned reforms targeting the extreme workloads of the city’s primary and middle schoolers are doing more harm than good.

Business of Fashion’s CEO Amed on China’s Style Tribes of the Future
The State of Fashion 2019 report shows that China is set to surpass the U.S. as the world’s biggest fashion market next year. What are the main factors that have led to this?

Business of Fashion’s CEO Amed on China’s Style Tribes of the Future

Trump-China Trade War Freeze Leaves Luxury’s Future in Limbo
While President Donald Trump may see his temporary trade war truce with Chinese President Xi Jinping as a big win, there’s little in the deal that would benefit the luxury goods industry — one which relies on the Chinese market for a significant portion of sales.

Trump-China Trade War Freeze Leaves Luxury’s Future in Limbo

China has become a hotspot for the ‘vertical forest’ building concept, says design firm that pioneered the idea
Project in Nanjing will be the third prototype of the urban forest concept, and the first in Asia, says architectural firm Stefano Boeri Architetti

Chinese spent US$258 billion in outbound travel
60.47 million people traveled to China in 2017, which was decreased by 0.4% year-on-year in H1 2018. Residents in Hong Kong, Macau, and Taiwan accounted for around 80% of the total. The mainland China generated US$32.6 billion from international inbound visitors in 2017, less than Hong Kong’s US$33.3 billion.

Taobao is now testing new feature that includes product reviews from Xiaohongshu
Alibaba’s Taobao is testing out a new feature on its mobile app which allows sellers the option of show Xiaohongshu (aka RED or Little Red Book) product reviews on online stores, according to Iebrun (in Chinese). Xiaohongshu is a popular social e-commerce platform where shoppers write reviews, share shopping experiences, and explore content on a variety of topics such as fashion, food, and travel

Taobao is now testing new feature that includes product reviews from Xiaohongshu

Construction giant CCCC aims to expand its global presence
China Communications Construction Co, the country’s largest provider of transportation infrastructure projects by contract value, will adopt varied models in global markets from infrastructure projects to industrial parks and property development in order to maintain robust growth, said a senior executive.

Trump complains about cost of ‘uncontrollable’ arms race, wants talks with Xi and Putin
Trump complains about how much the US spends on weapons in an ‘uncontrollable’ arms race with Russia and China It was unclear what prompted Trump’s tweet

Avoiding War Between America and China
U.S.-Chinese relations, the current wisdom goes, are in need of a fundamental rethink. In October, U.S. Vice President Mike Pence trumpeted the United States’ determination to compete relentlessly in order “to reset America’s economic and strategic relationship with China.” But even before Pence’s speech, there were calls to reexamine U.S. assumptions about China. The hopes of liberalization on which previous policy was based, the former Obama administration officials Kurt Campbell and Ely Ratner recently argued, have proved ill-founded. It’s time, they say, to search for a “better approach.” Even if U.S. President Donald Trump and Chinese President Xi Jinping reach a deal on the trade dispute, pundits warn, the broader relationship is unlikely to improve much. China’s assertiveness, its conduct in the South China Sea, and its internal repression render a genuine détente with the United States difficult, perhaps impossible. As with the Peloponnesian War or World War I, a rising power means trouble—and it is time that the United States recognized it. One can get behind Trump’s policy or search for an alternative. But either way, a new paradigm for the relationship is purportedly necessary.

South China Sea on the back-burner while United States and China talk trade
Differences on the issue too great to warrant bringing up in leaders meeting on the weekend, observers say

Chinese parents spend up to US$43,500 a year on after-school classes for their children
Cramming is becoming more common among younger students, education group says More than 60 per cent of primary school pupils in China are tutored outside the classroom in subjects such as English, literature and maths

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