China Press Review – December 6, 2018

Press review

China commerce ministry says goal in trade talks with U.S. is to remove all tariffs
China’s commerce ministry said on Thursday that the ultimate goal in Sino-U.S. trade talks is to remove all tariffs, adding that the recent meeting between U.S. President Donald Trump and Chinese President Xi Jinping had been successful.
www.reuters.com

China hails Trump-Xi summit, says ‘very confident’ in trade deal
China on Thursday expressed confidence in striking a trade deal with the United States within their 90-day ceasefire period, praising the recent meeting between U.S. President Donald Trump and Chinese President Xi Jinping as highly successful.
www.channelnewsasia.com

How much will Xi Jinping’s G20 steak dinner with Trump cost China? Possibly US$300 billion a year
Hao Zhou says Beijing is willing to pay the price to ease trade tensions with Washington and buy more time for economic development, but unresolved issues between the two sides mean the trade dispute may not dissipate in 90 days
www.scmp.com

China to ‘immediately’ apply measures agreed in trade truce with US
Commerce ministry gives few details as two sides take part in 90 days of negotiations
www.theguardian.com

US-China trade war ‘truce’ should be used to find long-term solution to disputes, experts say
Coming up with a framework for future dealings more important than spending trillions of dollars buying US goods, ex-commerce official says Most fruitful idea for China is to draw up promises that can be verified over a longer period, American academic says
www.scmp.com

China to resume US oil imports during tariff truce
China’s state oil trader Unipec will begin importing shipments of US crude oil by March of next year, now that the threat of higher tariffs has been lowered by the two countries’ trade war ceasefire, sources told Reuters.

China to resume US oil imports during tariff truce

Xi has tied his own hands in the trade war
Reversing Communist Party policy risks more damage than Trump tariffs
asia.nikkei.com

What do US-China tensions mean for Asia?
The growing regional fear is that, rather than decoupling the trade and economic issues from security concerns, alliances would be based on economic and security interests combined. For countries like Japan, in particular, balancing its economic interests with China, on the one hand, and its broader ties with the US may be an increasingly difficult act to accomplish without faltering.
www.weforum.org

China sets deadline for dealing with “zombie” firms
Beijing has handed local governments and state asset management departments a three-month deadline to submit a list of debt-laden, loss-making “zombie” companies that need to be dealt with, Caixin reports.

China sets deadline for dealing with “zombie” firms

How China raised the stakes for electric vehicles
It’s not every day – or even every decade – that climate-friendly government policy in one country has ripple effects for companies spanning the globe. That’s what happened after China announced its New Energy Vehicle (NEV) mandate, part of its plan to sell 4.6 million electric vehicles by 2020 and ban cars with traditional internal combustion engines over the long term.
www.weforum.org

Why Trump’s trade war is pushing China to become smarter and stronger, faster
Richard Harris says Donald Trump’s trade war on China found an echo around the Western world, where even Hong Kong investment is suspect now. But, on balance, he is doing China a favour by pushing it to become more self-sufficient
www.scmp.com

US trade war weakens China’s position as global leader in automation and robot manufacture
Production cuts at robot makers in Guangdong raise questions about the outlook for the government’s investment in hi-tech industries Sales slump parallels problems in the cellphone manufacturing industry
www.scmp.com

Hit by trade war, Tesla opens bid process to build China Gigafactory
At least one contractor has started preparing materials for the plant’s foundations, according to a document on its website US$2 billion factory will be electric vehicle maker’s first in China – and the first wholly foreign-owned car plant in the country
www.scmp.com

As Smog Returns, China’s Cities Issue Pollution Alerts
A government research center says the latest bout of air pollution has lingered because of ‘unfavorable’ weather conditions.
www.sixthtone.com

China’s OnePlus to launch first 5G smartphone in Europe with British carrier EE in 2019
The upcoming OnePlus 5G smartphone, powered by Qualcomm Technologies’ latest Snapdragon chip set, will be initially available in London and other major UK cities
www.scmp.com

Huawei signs deal to upgrade Portugal’s largest phone network Altice to 5G standard by 2019
Altice, already a Huawei customer, will use the Chinese company’s hardware and software solutions in its 5G upgrade
www.scmp.com

Can China’s Debt-Ridden Youth Continue to Prop Up Luxury’s Future?
Luxury brands’ “Great Chinese Dream” is largely dependent upon China’s millennial and Gen-Z shoppers, who Bain & Company estimated would account for 46 percent of luxury purchases in the market by 2025. But what if this promising outlook is partially fueled by debt?

Can China’s Debt-Ridden Youth Continue to Prop Up Luxury’s Future?

Hema criticized by central bank officials for rejecting cash payment
A unit of China’s central bank admonished new retail supermarket Hema for not accepting cash payments, highlighting the country’s increasing reliance on digital payment channels.

Hema criticized by central bank officials for rejecting cash payment

China orders more than 600 merchants to stop rejecting cash
Alibaba’s Hema supermarket and others reprimanded for only accepting mobile payments
www.abacusnews.com

Ikea’s parent company, Ingka, to build $1.2biliion China Mall
Ingka’s mega-investment comes at a time when concern is growing that Chinese consumers are pulling back in the face of a slowing economy and the ongoing US-China trade war
www.livemint.com

China Lending Crackdown Deals Blow to World’s Biggest Car Market
China’s escalating crackdown on peer-to-peer lending could hardly have come at a worse time for the country’s slumping car market.
www.bloomberg.com

Daimler and BMW Can Show If China’s Barriers Are Really Falling
Daimler AG’s plan to take control of its China joint venture opens another crack in China’s blockade of foreign ownership and puts the nation’s giant auto industry in the spotlight for whether promised reforms will bring real change.
www.bloomberg.com

Chinese outbound tourism to see 160 million person-trips in 2018
Specifically, 20 million person-trips went to Hong Kong, Macau, and Taiwan. And, the rest 23 million person-trips went to the rest of the world. COTRI estimates China’s outbound tourism will see over 160 million person-trips in 2018.
www.chinainternetwatch.com

Why India will supersede China – Part 1
For much of recorded history, India and China were the most influential civilizations in the world, partly due to the size of their populations and geography. Cultural and political reasons explain why China has outpaced India economically in the past 40 years. But China’s place in the sun will be shortlived. A report from the OECD predicts China’s share of global output will peak in 2030. India now outpaces China in economic growth. Indications are that the land of Rama and Shiva will become the shining star in the post-industrial era, and not for strictly economic reasons.
www.atimes.com

Why India will supersede China – Part 2
Science has yet to define and fully understand consciousness, but the debate has been given a new impetus by artificial intelligence, where the issue centers on the question: Can AI develop its own consciousness?
www.atimes.com

Portugal’s support for China’s belt and road plan sets alarm bells ringing in Brussels
Despite protestations of other EU member states, economic cooperation with China is vital to less wealthy nations, observers say
www.scmp.com

China hails ‘mutual respect’ as loops Portugal into Belt and Road
Beijing sees Portugal as an important partner in its project because its location makes it the closest point in Europe for ships sailing through the Panama Canal from Asia. A separate memorandum was also signed between Portugal’s export promotions agency AICEP and COFCO, a state-owned Chinese food processing holding company which also has interests in transportation and trade. Under the agreement, COFCO will establish a global shared service centre in the northern Portuguese port of Matosinhos
www.euractiv.com

Relocating Your China Business – New Issue of China Briefing Magazine
Many manufacturers producing labor-intensive goods for export to Western markets are looking to relocate to low-cost Southeast Asian economies like Vietnam and Indonesia. Meanwhile, manufacturers of similar types of products, but for whom the Chinese market is the final destination, might prefer relocation to a lower-cost jurisdiction within China, such as in the country’s emerging inland regions. On the other hand, businesses that see potential in China’s new economy might upgrade their investments by moving to one of the country’s dynamic coastal cities for more advanced functions that may previously have been executed primarily within their home markets.
www.china-briefing.com

Shinzo Abe’s advice to Xi Jinping on talking tariffs with Donald Trump at their G20 trade war dinner
The Japanese leader had one key suggestion for the Chinese president in Buenos Aires
www.scmp.com

China’s Tsinghua University to back Japan’s high-tech startups
Xi Jinping’s alma mater to pour $584m into AI, robotics and fintech
asia.nikkei.com

Social Insurance in China: Prepare Your Business for Big Changes on January 1, 2019
On January 1, 2019, employers will need to have their business ready for a big change to China’s social insurance system: social insurance contributions will be levied by China’s tax bureau.
www.china-briefing.com

Abroad or at Home, China Puts Party First
At the heart of Beijing’s global influence plans is a clear Leninist vision.
Abroad or at Home, China Puts Party First

Huawei Q&A: what you need to know about the Chinese phone maker
World’s largest telecommunications equipment firm has been blacklisted by several countries and its CFO arrested
www.theguardian.com

Arrested Huawei CFO Sabrina Meng Wanzhou told staff ‘one may accept the risk of temporary non-compliance’ in some cases
Huawei CFO Sabrina Meng Wanzhou was held on December 1 in Vancouver and is facing a US extradition request
www.scmp.com

Arrest Shakes Huawei as Global Skepticism of Its Business Grows
Britain, New Zealand, Australia and other countries have grown increasingly worried about potential security risks related to the Chinese telecom giant.

Police bust US$145 million medical tourism scam in China
More than 130 people arrested over con targeting rich Chinese They were offered free trips to US and Thailand for health checks and sold expensive ‘cancer prevention’ drugs
www.scmp.com

Dolce & Gabbana’s brand image takes a hammering from Chinese consumers: YouGov survey
D&G’s overall brand health score was negative among Chinese consumers in about a week after its fashion show was cancelled, according to YouGov It was the biggest drop in public perception of a luxury fashion brand in China since YouGov began compiling the BrandIndex in Asia about five years ago
www.scmp.com

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Alain Gillard
Information Officer
Awex
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