China Press Review – December 7, 2018

Press review

How China’s ‘reform and opening up’ transformed poor families into middle-class shoppers
Ordinary citizens soon began to experience noticeable improvements to their quality of life as a result of the economic reforms initiated by Deng Xiaoping in 1978. Before the reforms China was almost entirely a working class society.By the early 1980s a new middle class emerged in Chinese cities

Who can break the US–China trade impasse?
The temporary US–China trade truce reached at the recent G20 meeting follows the same approach that President Trump took in renegotiating NAFTA and pressuring South Korea, Japan and the EU to forge new bilateral trade arrangements. But this strategy of short-term threats of additional punitive tariffs is not a sustainable solution. The US–China impasse comes from much deeper differences in perceptions.

Trump is losing the trade war with China based on his favorite report card, and it’s probably going to keep getting worse
The US trade deficit hit $55.5 billion in October, the highest since October 2008. The increase in the deficit is the result of continued growth in imports,while exports actually fell. The trade deficit with China also hit a record level. One of President Donald Trump’s goals for the trade war was to reduce the trade deficit, but the president’s own policies are likely in part prompting the widening gap.

China November export growth seen slowing as global demand cools
China’s export growth is expected to have cooled in November, although still in the double digits, as a slowing in global demand offset a months-long rush to ship goods to the United States ahead of a then-expected increase in tariffs.

China Nov FX reserves unexpectedly rise to $3.062 trln
China’s foreign exchange reserves unexpectedly rose in November as the Chinese currency posted a rare monthly gain amid hopes for a thaw in Sino-U.S. trade tensions. China’s reserves rose by $9 billion in November to$3.062 trillion, central bank data showed on Friday.

Huawei to be major topic in US-China trade talks, White House adviser John Bolton says
US national security adviser highlights practice of Chinese firms using stolen American intellectual property to engage in forced technology transfers  Bolton was aware of plan to arrest Huawei CFO going into US-China trade negotiations on December 1

US forecasts rise in Brazilian cotton exports to China as trade war tariffs bite
Report by Washington agency says trade stand-off and improved product from South American exporter will result in increased sales to Chinese buyers

China should tolerate bigger budget deficit in 2019 to boost economy: state media
The Chinese government should slow its deleveraging drive and tolerate a bigger budget deficit next year to support the economy as downward pressure sharply increases, a state-controlled newspaper said on Friday.

What China’s Current Account Deficit Means For Investors
Quietly, without much notice among investors, China’s current account surplus,as large as 10% of gross domestic product (GDP)a decade ago, has shifted to a deficit this year. As discussed in a new report by Bank of America, U.S. Trust, this represents one of the most significant global macro shifts of the year and has important implications for investors:less flexibility for economic/currency management in China, and less global capital available for U.S. debtors.

Government think tank’s defence of China’s economic model points to reluctance to change tack in face of US pressure
A State Council-affiliated think tank has urged the government to stick with its state-run economic model ahead of key trade war talks with the US, which is demanding changes     Researchers say evidence suggests there is no need for China to adopt Western-style democracy to become a high-income country

China needs bailout and capital plans for crisis event: PBOC Advisor
China needs contingency plans for a financial crisis, an advisor to the Chinese central bank said

EU foreign investment screening plan shows double standards, harms own interests: experts
Europe is moving ahead with a foreign investment screening plan that would enable the European Commission to investigate foreign investments in strategic technologies and infrastructure such as ports or energy networks, according to a Reuters report on Thursday. The plan could potentially affect Chinese investment in the EU.

U.S.-China FrictionThreatens to Undercut the Fight Against Climate Change
Distrust between the two biggest greenhouse gas emitters threatens to slow global action on climate change precisely at a time when the risks of climate catastrophe are rising.

Swipe,Tap, or Scan:Making In-store Spending Hassle-Free for Chinese Tourists
There are three main culprits for this, and each requires its own remedy.

China claims it will crack down on IP-thieves
After nearly 6 months of a trade war waged by the US, China said it will finally punish companies and individuals who conduct intellectual property theft against foreign companies.
As Bloomberg reports,the Chinese government has laid out a total of 38 different punishments regarding IP violations, which could be a “positive step” toward mending the contentious trade relations between the US and China.

Huawei: Chinese media accuses US of ‘hooliganism’ over Meng Wanzhou arrest
State-run papers label Washington a ‘despicable rogue’ as Japan moves to ban telecoms company from government contracts

Belgian Cybersecurity Centre to look at Huawei procurement risks
The Belgian Cybersecurity Centre plans to look into potential risks for the country from using equipment from Huawei and other Chinese suppliers, reports De Tijd. Huawei is already a supplier for the mobile networks of Proximus and Orange Belgium, and Telenet uses equipment from ZTE.

Europe should be afraid of Huawei, EU tech official says
The European Union should be worried about Huawei and other Chinese technology companies because of the risk they pose to the bloc’s industry and security,the EU’s technology commissioner said on Friday.

Huawei agrees to UK security steps to avoid 5G ban: report
Britain’s National Cyber Security Centre says it has ‘concerns around a range of technical issues’ and has set out improvements Huawei must make

Japan to ban Huawei, ZTE from government contracts amid cyber attack fears
Newspaper report says Tokyo is expected to revise its internal rules on procurement as early as Monday    It comes after the US earlier this year banned government purchases of Huawei gear

Briefing: China’s mobile operators granted nationwide 5G licenses
What happened: The Ministry of Industry and Information (MIIT) has issued licenses for nationwide 5G network testing to China’s big three mobile operators. China Telecom and China Unicom have acquired the 3.5GHz band, while China Mobile will use the 2.6GHz and 4.8GHz bands. The MIIT says it believes the allocation of frequency resources among the three state-owned enterprises to be fair.

China’s ByteDance to raise about US$1.45 billion for its venture fund
The world’s most valuable start-up is in talks with investors including major Chinese government-led funds and state-owned investment banks opens high-techindoor farm in Beijing
Chinese e-commerce group in strategic tie-up with Mitsubishi Chemical

Big pharma’s off-patent drugs lose out in China’s new price-cutting scheme
In a Battle of Waterloo-style defeat, off-patent drugs from big pharma firms lost major markets in China as the government adopted a novel procurement scheme to slash generic drug costs. But after steep price cuts, local firms aren’t considered winners, either.    Among the 31 drugs China’s newly formed health insurance watchdog listed for procurement in a pilot program, multinational pharmas participated in bidding to supply almost all of them, but landed only two contracts, according to multiple local reports of preliminary tender results.

One word correctly describes America’s relationship with China
Meaning, I assume, that the Chinese are now our arch enemies. This is unfortunate. However, instead of ‘enemy,’ there is a more accurate word that describes America’s relationship with China: ‘rival.’ I’ll expand on that a little later.

America can falter, but the Western liberal order it helped to build must not
Kori Schake says Trump’s unilateralism and disdain for values-based policymaking should push America’s allies to step up in defence of the global order, now under attack from the authoritarian alternatives promoted by China and Russia

China and its nervous neighbors
 Yet, despite the doubts and fears of China’s neighbors, its lasting influence is still Asia’s overriding reality. All these countries need good relations with Beijing – to grow their economies, create jobs, and maintain their political stability. They will manage the risks and opportunities their relationships with China as best they can. What role the United States intends to play in Asia remains the crucial unanswered question.

One Belt, One Road, One Big Mistake
China’s signature foreign-policy project is a failure that the U.S. shouldn’t copy.

For China: One Belt, One Road, No Plan?
China’s Belt and Road Initiative is one of the biggest geo-economic developments of the 21st century. On that point, there is agreement. On the question of Beijing’s strategic motives, speculation abounds.  China’s economic rise has come within American-dominated institutions and markets. Chinese President Xi Jinping wants to break out of this system.   Since the 15th century, the West has ruled the waves and thus dominated the globe. The Belt and Road Initiative is China’s attempt to access to the oceans by building roads and harbors across Central and South Asia.

A Preview of Your Chinese Future
China’s vision of world order is a more radical departure—and more realistic alternative—than the West understands.      The year is 2049, one hundred years after the founding of the People’s Republic of China. The Belt and Road Initiative is complete. That does not mean it will stop or disappear. It is concluded in the same way a bridge or a road is built.Its development is finished, and it is ready to start working or operating at full power.

If Hong Kong and Taiwan want to resist the mainland, they should focus on economics, not politics
The Tsai Ing-wen government’s setbacks in Taiwan highlight the consequences of neglecting the economy in favour of independence politicking

Will China’s waste ban force a global clean up?
China’s announcement in July 2017 of a ban on waste imports sent shockwaves through the global recycling industry. Until 2017, China and Hong Kong had imported an estimated 70 per cent of the world’s plastic and electronic waste, and 37 per cent of the world’s paper waste. Now they were pledging to raise import standards to a level where virtually all waste imports would be banned.

The geopolitical impact of China’s approach to fighting climate change
However, China has apparently moved in the opposite direction, stepping into this leadership gap and championing a concept over the past several years that it calls “ecological civilization”. This concept not only has the potential to impact the global climate agenda, but may shape energy markets and strengthen Beijing’s broader geostrategic positioning.

China’s Carbon Footprint Swells to Record Size
New report contradicts ministry’s assertion that annual carbon emissions had plateaued.

China will build massive green cover by 2020: A list of green initiatives taken by the country
China has announced the largest green cover with as many as 20,000 national forest villages by 2020 in the country.

Can China learn from Russia and save its pigs from African swine fever?
Disease-control measures are the key reason Russian pork production is on track to double by next year from 2007 levels   In China, control of the disease is being hindered by the millions of small pig farms and trading practices that involve shipping pigs over great distances

How to Form a China WFOE:A Roadmap
Generally, if all goes smoothly, the overall process will typically take 3-5 months. We do not breakdown each of the steps as to time because the time involved for each step can vary wildly, depending on (for instance) how long it takes to prepare financial information, negotiate a lease, obtain documents from the landlord, authenticate relevant documents, and validate the corporate structure. Lately though the Chinese authorities have been quite efficient in processing applications, at least in the major cities and usually once we have provided them with all of the requested information in the exact format they need, they usually provide a response within 2-3 weeks. It is getting to that point that takes so much time.

China Law Online: It’s All Wrong
The internet on China laws is unbelievably bad. I think I need to write another article on why you should never take what you read on the internet as legal advice.

Chinese town residentsclash with riot police in protests over incinerator
Locals in the township in Liaoning said they had been kept in the dark until complaints started circulating on social media.    Witnesses say riot police manhandled protesters and forced them to sign a promise not to stage further demonstrations against the plan.

Back to the future of self-reliance for China’s military technology
Xi Jinping invokes the Chinese scientific successes of the past to modernise the armed forces, but can the country really go it alone?

Alain Gillard
Information Officer
Service Asie Pacifique
Place Sainctelette 2
1080 Bruxelles
Tél 02 421 85 09 – Fax 02 421 87 75
Copyright © 2018 awex, All rights reserved.