China Press Review – February 1, 2019

Press review

US-China trade talks become theatre as Liu finds himself the focus of Trump’s charm offensive
US trade representatives prepare for Beijing mission after three goals are identified Trump hails Chinese vice-premier Liu as one of the world’s most respected men

China says Washington trade talks were ‘frank’ and made ‘important progress’
Beijing upbeat after Vice-Premier Liu He’s visit for two days of talks, as Donald Trump also welcomes ‘tremendous progress’ US Trade Representative Robert Lighthizer set to travel to China after Lunar New Year to resume discussions

Where’s The Progress On Trump’s China Trade Talks?
Another trade meeting, another dead end? Multinationals in China are starting to see some signs of progress. Though it’s not much to write home about. A promised meeting between Presidents Trump and Xi Jinping will be key for forecasting the outcome of a three month trade truce, now coming into the home stretch.

Donald Trump hails trade talks’ progress, says meeting Xi Jinping ‘possible’ on trip to meet Kim Jong-un
Liu He, China’s lead negotiator, delivers letter from Xi, which says China hopes both sides will meet halfway; Trump calls the letter ‘beautiful’ Trump says it is possible he and Xi could meet more than once before March 1 deadline, when US is expected to increase tariffs on Chinese imports

China factory outlook darkens due weak domestic demand, but how will Beijing respond?
The Caixin manufacturing purchasing managers’ index (PMI) dropped to a three-year low, with sector contraction deepening Trade deal between the administrations of President Xi Jinping and American counterpart Donald Trump seen as important to halt slowdown

Bad start continues for China economy as private data shows manufacturing activity weakest since 2016
The Caixin Purchasing Managers’ Index (PMI) fell to 48.3 in January from 49.7 in December, the lowest since February 2016
On Thursday, the official PMI rose to 49.5 from 49.4 in December, but both indexes signal contraction in factory activity

Are Companies Crying China? Global CIO on China’s Impact on Earnings Season
Is the U.S. and China trade war really impacting markets? Conning’s global CIO breaks down what investors need to know about the trade war.

Potter: A better way forward for China and Canada
Canada’s relations with China have reached new lows that few would have predicted a few short months ago.
Potter: A better way forward for China and Canada

Huawei to partner with Canada telco for rural broadband trial
Huawei and Canadian telecom provider ABC Communications are expected to announce a cooperation agreement on Friday. The two companies plan to hold a broadband trial to speed up internet in a rural community of western British Columbia. It is intended to be a test before expanding to other small towns across Canada. Eric Li, president of Huawei’s Canada division, said the company was “proud to provide a solution to this unique Canadian challenge” in the announcement.

Briefing: Huawei to partner with Canada telco for rural broadband trial

Huawei to push AI, Schubert in upcoming Mobile World Congress publicity amid US indictments
Huawei to release its first foldable 5G smartphone and showcase 5G achievements at four-day event in Spain

Not all Huawei’s materials come from China, company says
Huawei Technologies Co. has a proven reputation on cyberscurity and does not buy all of its materials from China, the company said on Thursday after the U.S. envoy to the European Union sought to warn consumers away from its products.

China’s nuclear hiatus may be coming to an end
Beijing has approved four new reactors after a two-year pause, according to Chinese media.

Chinese broker shares surge after Beijing moves to widen foreign access to capital markets
China says it will ease foreign institutional investor access to its capital markets and encourage brokerage firms to increase investments in stocks Trade talks between the US and China went well, says US President Trump, giving a boost to market sentiment

China’s new market supervisor makes a welcome start
After the cautious Liu, Yi Huiman can make his mark at the CSRC with growth-oriented reforms Liu Shiyu, who has just been replaced as China’s chief securities regulator, showed his mettle in stabilizing the country’s stock markets when prices crashed in mid-2015. After that, he unfortunately failed to take the bourses forward, especially with regard to much-needed regulatory liberalization. Liu’s heavy-handed, micro-interference in trading and market operations did little to limit last year’s 25.3% fall in the benchmark CSI 300 index, the worst among major markets globally.

‘Not impressive’: China’s ambitious stock market reform meets with lukewarm reaction
Groundbreaking reforms around new ‘technology and innovation board’ aim to make China’s stock market globally competitive Companies, bankers and investors raise concerns over restrictions and Beijing’s track record

Tencent and GAC Group set up $150 million automotive joint venture
Chinese tech giant Tencent is establishing a mobility joint venture with GAC Group, a carmaker owned by the municipal government of Guangzhou—a province in southern China—and the Guangzhou Public Transport Group, among others. The new firm will receive a total capital of RMB 1 billion ($149 million). GAC will own a 35% stake in the venture, while Tencent and the Guangzhou Public Transport Group will hold 25% and 10%, respectively.

Briefing: Tencent and GAC Group set up $150 million automotive joint venture

China’s economic slowdown leads to a diaper depression
The dip in sales stands in contrast to a boom in global demand in recent years, including in China China accounts for 30 per cent of International Paper’s fluff-pulp sales, which is used in diapers

Shanghai mayor Ying Yong rules out easing control on home prices even as economy slows down
Controlling prices of land and homes is not a makeshift policy, mayor Ying Yong says after the annual session of Shanghai People’s Congress

Chinese court to auction Jia Yueting’s LeVR shares to pay off debts
Jia Yueting, founder of Chinese tech conglomerate LeEco, will likely be forced to pay off his debts by selling shares of LeVR, another affiliate of LeEco, the latest amid a series of financial woes following local judges freezing his stakes in

Chinese court to auction Jia Yueting’s LeVR shares to pay off debts

US charges 20 people over Chinese birth tourism schemes
It is reportedly the first time the US has criminally prosecuted birth tourism operators The businesses were raided by federal agents in 2015

Hacking, gone off the rails: Holiday travelers react to data breach
Train passengers may be riding into the Chinese New Year with concerns about data loss after thieves listed millions of train passengers’ information for sale on the black market.

Hacking, gone off the rails: Holiday travelers react to data breach

China punishes 3,000 in organised crime crackdown – state media
More than 1,000 mafia-style groups busted in ‘rectification’ ordered in 10 regions after inspection campaign last year Protection by local governments and police to allow criminal activity to flourish was also targeted

Will the China-Japan Reset Continue in 2019?
Both sides are sending positive signals, but the thaw seems increasingly like the calm before the storm.

Japan and China promise to work to deepen trust amid territorial row
Ministers on both sides pledge to continue work to deepen trust Dispute over Senkaku Islands, known as Diaoyu in China, continues to weigh down their relationship

Taiwan Fears China Could Cut Undersea Cables
Weeks after Chinese President Xi Jinping issued a disturbing reminder that war remains an option for China to achieve unification with Taiwan, one of the island’s government think tanks is now warning that the cables connecting Taiwan’s internet system to the world are vulnerable to attacks by the People’s Liberation Army.

Taiwan Fears China Could Cut Undersea Cables

US expected to announce withdrawal from cold war arms treaty as soon as Friday
It would follow years of unresolved disputes over Russian compliance with the Intermediate-Range Nuclear Forces treaty US officials also have expressed worry that China, which is not party to the 1987 treaty, is gaining a significant military advantage in Asia by deploying large numbers of missiles

HNA will sell its last Kai Tak parcel to Wheelock
HNA bought the plot in March 2017 for HK$7.44 billion, or HK$13,500 per square foot, and then incurred costs such as interest and foundation work

Former Uber CEO Travis Kalanick said to plot China comeback with ‘shared kitchen’ business
The Uber co-founder is partnering with Zhang Yanqi, former COO at bicycle-sharing firm Ofo, sources say The two have worked on the project for a couple of months, the people say

China’s travel bug has taken on a social media tinge, and that means experience-focused holidays … and less shopping
Chinese tourists are seeking out holiday experiences that can be shared on social media Digitally-enabled social travel explains surge in visits to famous sightseeing spots and bookings for unique recreational experiences

Law textbook pulled from shelves in China amid campaign against ‘Western influence’
Author Zhang Qianfan rejects suggestion his writing excessively promotes Western ideas as ‘utter nonsense’ Authorities have not confirmed they ordered the title to be withdrawn but it comes after government launched sweeping review of teaching materials

Luxury brands pig out on Year of the Pig images, hoping it will bring home the bacon
Vacheron Constantin offering platinum timepiece adorned with a festive swine for US$123,000 Baccarat offers a boar-shaped objet d’art for US$390

Importing the Catwalk: How High-End Fashion Shows Came to China
New York Fashion Week kicks off next week, just as Chinese New Year — the Year of the Pig (traditionally one of good luck and happiness) — begins. And the two cultures will come together in a way they never had until not long ago.

Importing the Catwalk: How High-End Fashion Shows Came to China

Chinese Counterfeiters’ Hot Product in 2019? Peppa Pig Couture
In China, fashion houses pay celebrities and influencers huge sums to wear their clothing and sport their logos. So when stars like Angelababy (brand ambassador for Dior) and Yang Mi (brand ambassador for Michael Kors) give one brand free advertising by wearing its T-shirts and watches on the street, it’s news.

Chinese Counterfeiters’ Hot Product in 2019? Peppa Pig Couture

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