Should China copy US stimulus plan to hand out cash to everybody?
A few days ago, I said on social networks that if our country hands out money to everybody, it means it doesn’t send out money at all. I oppose such a national stimulus plan during the epidemic. I encountered some objections online.
China antitrust: Beijing signals that antimonopoly action will play key role in developing a ‘high-standard’ market system
Although the antitrust plan does not go into details, it was published at a time when Beijing is stepping up scrutiny of monopoly practices in the country’s Big Tech businesses Until recently, China’s antitrust regulators have mainly targeted players in traditional industries such as utilities and pharmaceuticals
China’s economic recovery continued in January at slower pace as virus outbreak takes toll
China’s official manufacturing purchasing managers’ index (PMI) fell to 51.3 in January from 51.9 in December The official non-manufacturing PMI, which measures sentiment in the service and construction sectors, fell to 52.4 from 55.7
Two-thirds of China’s provinces beat national GDP growth figure in 2020
Tibet and Guizhou top the chart, as southern powerhouse Guangdong matches national figure of 2.3 per cent, pushing its GDP past US$1.7 trillion Beijing has yet to set a growth target for 2021 after ending a decades-long tradition in not doing so last year
China’s M&A deals may rise further after reaching 5-year high in 2020 – experts
Merger and acquisition activity in mainland China may pick up further this year, after reaching a five-year high in 2020 despite the pandemic, experts say. Ongoing reform of state-owned enterprises, resilient export and domestic consumer demand, the technology-driven industrial upgrade and growing private-equity activity will continue to drive domestic dealmaking in mainland China in 2021, David Brown, deals leader for Asia-Pacific at PricewaterhouseCoopers, told a press conference in Hong Kong Jan. 27. In 2020, the total value of M&A deals in China, including Hong Kong, rose 30% to US$734 billion, the highest since 2016, according to PwC. Deal count also increased 11% to 10,551 transactions, from 9,483 in 2019. Meanwhile, outbound deals from mainland China dropped 40% to 403 deals with a combined worth of US$42 billion, and outbound deals from Hong Kong dropped 23% to 122 deals , totaling US$6.4 billion.
New chart shows China could overtake the U.S. as the world’s largest economy earlier than expected
The latest GDP reports show that of the U.S. fell by 2.3% in 2020, while China’s grew by 2.3% amid the coronavirus pandemic. The divergence means China will likely overtake the U.S. as the world’s largest economy a few years earlier than anticipated, economists said. However, they pointed out the two countries have different econ
EU Commission Says ‘Still Much Work To Do’ With China After Investment Deal
Despite a recent investment agreement reached with Beijing, there is still “much work to do” to rebalance the EU-China trade and overall economic relations, the European Commission said on Friday (29 January).
Why Can’t China’s Workers Unite on Overtime?
The country’s white-collar workers are protesting their companies’ exhausting schedules. What about their blue-collar counterparts? We all have the right to work with dignity, even if we are still many steps away from the day blue-collar workers can be freed from base subsistence concerns and are able to demand less overtime. But that disparity doesn’t mean we should write off white-collar workers’ complaints as privileged whining. While white-collar workers may not be the most exploited group of Chinese laborers, the struggle for labor rights often thrives not where exploitation is the most severe, but where workers have the most bargaining power. I only hope white-collar professionals don’t merely use the “worker” identity to wallow in their suffering, but also take responsibility to push for better labor protections and build a cross-class solidarity capable of benefitting all workers.
China’s new coronavirus outbreaks expose vulnerable economic recovery as January factory activity slows
A slowdown in manufacturing activity last month shows China’s economic recovery from the coronavirus may be ‘peaking’, as the country battles new infections Outbreaks in northern provinces and curbs on travel over the Lunar New Year holiday have led some analysts to downgrade first quarter growth forecasts
Covid-19: As the West competes for vaccines, China exports jabs and expands soft power
World powers are competing over Covid-19 vaccines, with national interests taking precedence over the World Health Organisation’s call for multilateralism. But as Western countries turn inward, China is exporting inoculations and extending its soft power.
Coronavirus: Top Chinese expert Zhong Nanshan and US counterpart Anthony Fauci to discuss pandemic in public for first time
The two infectious disease specialists will appear at an online event hosted by Edinburgh University in March Zhong said the two ‘share some similar views’ and controlling the US outbreak will be ‘great news for the world’
WHO investigators meet Wuhan hospital leaders on day two of Covid-19 mission – but afternoon will be spent ‘visiting museums’
Investigators meet medics at two hospitals at the centre of the initial outbreak, then visit museums and hold discussions, according to state media The mission to find the origin of the coronavirus took months to get going, heightening concerns over transparency
WHO investigators visit Wuhan seafood market as search for origins of coronavirus continues
The Huanan market was linked to the earliest known cluster of Covid-19 cases, but its precise role in the outbreak has yet to be determined The team of scientists will spend a month in China as part of a long-delayed effort to trace the source of infections
Opinion: China uses coronavirus vaccine to expand influence
COVID-19 vaccines are scarce in Europe, and China is using that to its advantage. There’s no misunderstanding the effect of sending 1 million doses to Serbia, writes DW’s Miodrag Soric.
Coronavirus: why the world’s longest hotel quarantine in Hong Kong is a band-aid slapped on a ballooning health crisis
First world problems, perhaps, but authorities should consider the financial and mental downsides of 21-day hotel quarantine for returning residents With loopholes in social-distancing policies and a lack of data, is extra-long quarantine really helping to suppress the pandemic in the community?
China’s big 3 airlines warn of up to $6bn in losses for 2020
Despite heavy hit, state-owned trio poised to top global air passenger ranking While benefiting from a faster recovery in domestic travel than other international carriers, China’s three big state-owned airlines warned Friday that they expect combined net losses of up to $6 billion for 2020.
The Old Roots of China’s New-Look Finance
There’s no shortage of explanations for the rapid rise of online credit and lending in China, but don’t ignore the role played by cultural tradition. Like credit, renqing refers to a social obligation that entails the exchange of economic resources. But it is also deeply rooted in kinship and social networks, the most important components in Chinese people’s social relations. Governed by the principle of renqing, Chinese were willing to give away the products of their labor, the raw materials of production, or even direct monetary assistance to people in their social networks, expecting to receive a return when they themselves were in need. Credit and loan activities were likewise interwoven into the social nexus of ancient Chinese society. People increased their credibility by performing renqing within their social networks and demonstrating their moral character, which required continuous participation in the cycle of giving and receiving. Ways of building renqing could be tangible, as in giving gifts on social occasions, or intangible, such as helping organize community events or showing loyalty to one’s family and clan.
Why the GameStop stock frenzy is likely to end in financial crisis
The drama unfolding around GameStop is a tale of the internet levelling the playing field between at-home retail investors and Wall Street. The US stock market may become as retail dominated, and as volatile, as the Chinese market The US market may be on its way to becoming retail dominated, which will make it more like China’s market. A retail-dominated market is highly volatile. Rising volatility makes a levered market prone to crisis. What happened in 2015 to the Chinese market is a case in point. The margin debt in the US market is at an all-time high. It will keep surging as long as the market keeps rising. As China has shown, this trend has no soft landing; a crash is inevitable
Rising SOE defaults alarm investors but could benefit the Chinese economy
China’s money-losing but politically powerful state-owned enterprises (SOEs) have long been identified as a drag on the Chinese economy. The latest signal of their troubles is the dramatic rise last year in the number of SOE defaults in China’s onshore bond market. The number of defaulted enterprises included several large SOEs, among them Yongcheng Coal and Electricity and Tsinghua Unigroup. News of these defaults has shocked many investors who long believed distressed state firms would be bailed out by the Chinese government. Bond defaults in China are not new, but they tended to affect mostly private businesses in the past. More than 80 percent of the defaults from 2017 to 2019 struck private firms. But that situation has changed. In 2020, the share of state firms in bond defaults almost matched that of private enterprises, with state firms defaulting on 80 bonds worth RMB98 billion (US$15.17 billion). One factor in the surge in defaults could be that many local governments have been struggling with their own fiscal deficits and thus are unable to bail out local state firms. But Beijing has also been signaling a gradual phaseout of government guarantees on state firm liabilities.
Plaza Accord II: Currency a catalyst for US-China deal?
Joe Biden and Xi Jinping have overlapping interests on yuan appreciation, import tariffs and technology export controls
China’s top diplomat Yang Jiechi expected to call for end to Trump-style policies in address to American audience
Politburo member also likely to appeal for greater dialogue between Beijing and Washington at event hosted by the National Committee on US-China Relations, observers say Speech will be a gesture that China wants to cooperate with the US, Chinese academic says
Biden administration says Trump’s China trade deal ‘under review’
The Biden administration will put the trade deal struck with China by Donald Trump “under review” as the broader US relationship with Beijing is assessed, the White House said on Friday, reported the Financial Times.The “phase 1” trade deal signed in early 2020 paused a rapidly escalating trade war between Washington and Beijing that had rattled global markets and led to tariffs of billions of dollars on traded goods. Under the terms of the deal, which is widely considered to be limited in scope, China promised to significantly boost its purchasing of US products such as soybeans and energy products, said the FT. When asked whether Biden considered the phase 1 trade deal to still be in effect Jen Psaki, White House press secretary, said on Friday that “everything the past administration has put in place is under review”.
Toward a new American China strategy
The single most important challenge facing the United States and the democratic world in the twenty-first century is the rise of an increasingly authoritarian and aggressive China under Xi Jinping. China has long had an integrated, operational strategy for dealing with the United States. The United States has so far had no such strategy with regard to China. This is a dereliction of national responsibility. US strategy and policy toward China must be laser-focused on the fault lines among Xi and his inner circle–aimed at changing their objectives and behavior and thus their strategic course. Communist Party elites are much more divided about Xi’s leadership and vast ambitions than is widely appreciated. The foremost goal of US strategy should be to cause China’s ruling elites to conclude that it is in China’s best interests to continue operating within the US-led liberal international order rather than building a rival order, and that it is in the Chinese Communist Party’s best interests to not attempt to expand China’s borders or export its political model beyond China’s shores.
Biden’s Nightmare May Be China
Think dealing with Mitch McConnell will be tough? Managing a reckless Xi Jinping will be even harder.
Why Biden’s Buy American plan is a bad Trumpian idea in new protectionist clothes
The Buy American initiative may be less ill-judged than the tariff war, but in barring foreign firms from US government procurement contracts, it will cost American consumers – and taxpayers – dearly and may prompt foreign relation
China-US relations: as Biden team gathers allies, it finds Asian partners more willing than Europe
The US president as well his secretaries of state and defence have sent early and consistent diplomatic signals about China and the Indo-Pacific In a survey of Europeans, a third believed that after the 2016 US election of Trump, the American electorate could not be trusted Kupchan said that US partners in Asia were, for the most part, relieved that the US had returned to “a more familiar brand of statecraft” and to see the so-called pivot to Asia move ahead. “The president made clear during the campaign and after he won the election, that he did intend to try to forge a united front of democratic allies on China policy,” Kupchan said. “I think the major players in Northeast Asia that have traditionally been aligned with the United States are going to continue to do so … in some ways, China’s behaviour is pushing the democracies of the region to tighten their relationship with the United States, and I think the Biden administration will be more than happy to reciprocate.”
Climate change: with Biden in office and Chinese emissions trading scheme on way, a new air of optimism
The first steps towards China’s national emissions trading scheme have brought a fresh push towards action on climate change Biden’s election and carbon credit markets are other reasons for the buoyant mood, though activists are sceptical of ‘greenwashing’
China’s energy watchdog under fire over pollution failures
Central government inspectors say the National Energy Administration did not enforce environmental standards, particularly on coal power NEA has deadline to report back on how it plans to remedy the situation
China Slams Own Energy Agency Over Failed Environmental Policies
Inspectors found that coal capacity in key pollution-control areas continued to rise despite expensive long-distance power lines aimed at reforming local energy use.
China oil futures hit record levels
Beijing eyes Rmb-denominated markets that seek to challenge dollar’s dominance
Read more on “Financial Times Markets”
China approves coal mine projects with 3.6 mln T annual capacity
China, which produced 3.75 million tonnes of the fossil fuel in 2019, has been shutting small and outdated mines to launch bigger ones in its coal-rich regions, such as Shanxi, Inner Mongolia, Shaanxi and Xinjiang
China’s Hualong One nuclear reactor goes into service
China now ‘a country that has truly mastered independent third-generation nuclear power technology’, CNNC party chief says Almost 90 per cent of the equipment used in Hualong One, including all elements of its core, was made in China, company says
Why Focusing on Gen Z Is A Matter Of Survival For Luxury Brands
Many luxury brands are reluctant to shift their focus to Gen Z. But underestimating the importance of young consumers can put their future in peril.
What Are The Vulnerable Luxury Sectors In China?
Surprisingly, some luxury brands are scoring double-digit sales in China post-COVID-19. But rising local brands in specific sectors could upend their trajectories.
Alibaba (BABA) 3rd Quarter Earnings: What to Expect
Alibaba, which delivered Q2 revenue growth of 30% and adjusted profits up 28%, is expected to remain the market share leader. The company’s annual active consumers on China retail marketplaces reached 757 million in Q2, up 15 million on the year. The numbers should accelerate in the Q3. The question will be with the company’s Cloud growth which is should rise due to an increased number of paying customers and stronger-than-expected spending. Investors will focus on the company’s mobile monthly active users which has surged in recent quarters due to greater adoption of mobile devices. And if the company can provide any upbeat commentary about the Ant IPO and growth prospects for 2021 the stock should regain its $300 level.
China electric cars: Tesla’s missed target draws investors to home-grown EV makers NIO, Xpeng and LiAuto in search of value
NIO and Li Auto will post profit this year, while losses will widen at Xpeng, according to Morgan Stanley China’s EV start-ups are likely to see sales rise this year, but analysts warn intensifying competition, price cuts could quickly alter the landscape
When Your Manager Is Inhuman
In Chinese workplaces, decisions are increasingly made by artificial intelligence-powered software. Recently, a user of social media site Weibo said a technology startup in eastern city Hangzhou required employees to sit on high-tech, sensor-equipped cushions. Employees discovered the cushions monitored their heart rate, breathing, posture, fatigue, and other data, to see whether they were slacking off. This triggered much criticism. A sales executive at a technology company in Hangzhou that developed a similar program tells Caijing ELaw that buyers of such products are all small- and medium-sized enterprises, and that the companies explicitly ask to have the data instantly uploaded to allow management to monitor employees’ work.
And The Winner Is? WeChat, Of Course!
Having battled all other messaging app competitors, WeChat has not only managed to survive, but also thrive, becoming China’s only messaging app.
HNA Group’s leader Gu Gang rallies staff after conglomerate enters bankruptcy restructuring, saying light is at the end of tunnel
In a letter that was light on specifics on HNA Group’s restructuring, Gu Gang urged for “patience” and “hard work” Gu called on staff to help the Haikou-based company pull through its darkest hour, according to a letter posted on HNA Group’s corporate WeChat account
Thousands flee Hong Kong for UK, fearing China crackdown
Cindy had a comfortable lifestyle in Hong Kong: she owned several properties with her husband, they had a good business going. But last year she made up her mind to leave it all behind and move her family to Britain, and not even a global pandemic was going to sway her decision.
Revenge of the China appeasers
If China is forced to pay the maximum deglobalisation price for that then any invasion will mark the peak and decline of Chinese power as it is isolated from commodity and financial markets, leaving it prey to its own terrible demographics and economic reckoning. In a sense, therefore, the Taiwan war has already begun: fought against our own cohort of CCP appeasers and sell-outs. In the end, if the worst happens, the US goes stark raving mad, pointlessly squanders its huge array of Pacific assets to allow China to park aircraft carriers off California, China manages to grow through all of its fatal internal contradictions, and hold together a liberal world with which it has nothing in common, and all of the dark musings of these CCP apologists come true, then so what? China will still need Australia a lot more than we need it and we can use that leverage then
China-Australia relations: Beijing may feel pressure to lift coal bans amid dearth of steel materials
China’s bans on Australian coal and copper are ‘causing self-inflicted wounds’ amid shortages of raw materials needed in industrial sectors Coronavirus outbreaks in Mongolia and blockades in Peru have heaped pressure on supply chains, but China shows no sign of relenting yet
Coronavirus: Tech firms heed call as Chinese authorities urge people to stay home, go online for Lunar New Year
The Chinese government is encouraging more domestic consumption, while allowing people to maintain a normal life without travelling Online streaming video service providers are expected to increase their offerings of free films and other content to meet demand during the holiday
Chinese millennials aren’t getting married, and the government is worried
The decline is partly due to decades of policies designed to limit China’s population growth, which mean there are fewer young people in China available to be married, according to Chinese officials and sociologists. But it’s also a result of changing attitudes to marriage, especially among young women, some of whom are growing disillusioned with the institution for its role in entrenching gender inequality, experts say.
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