China Press Review – February 12, 2018

Press review

China lists ‘sensitive sectors’ as it tightens curbs on overseas investments
Real estate, hotels, cinema, entertainment, sports clubs, and private equity funds among foreign sectors that will face increased scrutiny

Xi Jinping’s war on shadow banking spills over, rocking China’s wider financial world
Companies that had committed to buying overseas assets are now finding it hard to complete the deals amid China’s financial clean-up of its shadow banking activities and banks’ reluctance to extend loans

China pledges ’employment first’ policies to create millions of jobs
China will boost its job creation effort and promote entrepreneurship this year, Meng Wei of the National Development and Reform Commission (NDRC) said. “We will implement an employment-first strategy and more proactive employment policies … and vigorously promote employment and entrepreneurship,” Meng said, adding that protecting jobs was fundamental to China’s stable growth policy.

Chinese investors compete to lure talent back from overseas
Chinese investors are vying to entice China-born tech executives and scientists back to the mainland to set up startups in their home market, the Financial Times reports.

Chinese investors compete to lure talent back from overseas

From steel mills to shipbuilders, how ‘Xiconomics’ is playing out in China
Beijing’s campaign to cut capacity and rebalance the economy is a boon for some, but the task is still far from finished

China prohibits expansion of glass, cement capacity in 2018
All new projects must follow replacement capacity rules to ensure the total production capacity decreases, industry ministry says

Will China Avoid the “Middle-Income Trap”?
With the exception of last year, the acceleration of China’s economy had been slowing, leading economists to suggest the future depends on overall productivity.

How Does Centrally Planned China Raise Capital?
China’s economic growth was partially due to twenty years of export-oriented policies from Beijing. But without Hong Kong’s well-established financial markets, necessary funds couldn’t have been raised.

Why more foreign institutions are buying Chinese stocks
In January institutions’ aggregate net-buy via stock connect was 35 billion yuan, compared to last year’s monthly average of 15 billion yuan

China Jan new loans surge to record 2.9 trln yuan, blow past forecasts
China’s banks extended a record 2.9 trillion yuan ($458.3 billion) in new yuan loans in January, blowing past expectations and nearly five times the previous month as policymakers aim to sustain solid economic growth while reining in debt risks.

Central bank researcher calls for ‘matrix structure’ to give super financial regulator teeth
Proposal would put professional commissions in charge of cross-sector information sharing, decision-making, coordination and implementation

What is driving the exuberant confidence in China?
Tracy Chen, Portfolio Manager and Head of Structured Credit, at Brandywine Global, an affiliate manager of Legg Mason notes that Chinese consumers are suddenly feeling quite positive about the economy and their prospects according to recent confidence data

What is driving the exuberant confidence in China?

Where is the “development” in China’s global development finance?
Yet no matter the form or institutional vehicle, what all of the recent and worthwhile efforts to shine a light on China’s notoriously opaque flows of official finance demonstrate is that neither rigorous analysis nor good policy is possible in the absence of clear concepts. Any efforts to better understand China’s growing role in global development finance, and its impact on development outcomes more generally, must confront head on the difficult but crucial question of what is and what should be the meaning and content of development itself.

Where is the “development” in China’s global development finance?

HNA Is a Microcosm of China’s Economic Ills: Michael Schuman
The latest news leaked out of China’s troubled HNA Group Co. is not good. Management has asked its employees to hand their paychecks over, with promises of big returns down the road. It is a pretty safe assumption that any company willing to try such a scheme is tottering on the edge of the financial abyss

Chinese watchdogs investigate share-backed loans to tamp down risk
Securities regulators in several provinces of China are investigating the use of shares as collateral for financing activities to curb potential risks, the state-owned Securities Times newspaper reported on Saturday.

The West should take note: China’s tech revolution is only just starting
We are witnessing the ascendance of a superpower through prodigious mercantile and technological influence

Alibaba, heat up offline-online competition in China
Country’s two biggest e-commerce players are ramping up investments in physical assets and partnerships, as they look to meld offline and online technologies to transform retail experience.

Alibaba brings cloud computing, to Olympic Games as ‘ultimate showcase’ for tech capabilities
Alibaba is sponsoring global sporting events to showcase its cloud computing services, which include applications for the management of large-scale events.

Alibaba To Invest $865 Million In Chinese Home Improvement Chain Easyhome
Alibaba Group Holding Ltd. will invest around RMB5.45 billion (US$865 million) for a 15% strategic stake in Beijing Easyhome Furnishing Chain Store Group Co., Ltd. as part of its “New Retail” business model, the company announced Sunday.

Alibaba To Invest $865 Million In Chinese Home Improvement Chain Easyhome

Alibaba to take US$486 million stake in China retail data firm
The e-commerce giant will take 38 per cent of Shiji Retail Information Technology in further push towards ‘new retail

Alibaba Brings Smart Tech to Sichuan Pork
‘1984’ meets animal farm. Chinese e-commerce giant Alibaba has teamed up with livestock farming company Tequ Group and its affiliate Dekon Group to raise pigs using AI, according to a statement Alibaba Cloud posted last week on social media. charges ahead into physical stores is leveraging the logistics network it built up through e-commerce to enlarge its real-world presence, aiming to open 500 automated supermarkets across China this year.

Foxconn Plans China IPO To Raise $4B For Intelligent Manufacturing, 5G
Foxconn Industrial Internet Co., a subsidiary of Foxconn Technology Group, is planning an initial public offering on the Shanghai Stock Exchange to fund eight investment projects in China totaling RMB27.3 billion (US$4.3 billion), according to its IPO prospectus.

Foxconn Plans China IPO To Raise $4B For Intelligent Manufacturing, 5G

CITIC Capital, Caixin Global To Acquire Euromoney Unit For $180.5M
An investor corsortium led by funds managed by CITIC Capital Holdings Ltd. and Chinese media firm Caixin Global has reached an agreement to acquire a unit of London-listed Euromoney Institutional Investor PLC for US$180.5 million, the firms announced today.

CITIC Capital, Caixin Global To Acquire Euromoney Unit For $180.5M

The Senior Care Sector in China: Is it Time to Think Differently?
Foreign investors that would like to understand the senior care sector in China may find a comparison to the hospitality sector helpful.

The Senior Care Sector in China: Is it Time to Think Differently?

What Does China’s ‘Ecological Civilization’ Mean for Humanity’s Future?
Early Chinese philosophers believed the overriding purpose of life was to seek harmony in society and the universe, while Europeans pursued a path based on a different set of values—which have since become global in scope—driven by “conquering nature” and viewing nature as a machine to be engineered.Furthermore, Xi’s rhetoric does seem to be grounded in at least some reality. Two months before Xi’s speech, China announced they were more than doubling their previous solar power target for 2020, after installing more than twice as much solar capacity as any other country in 2016. This new target—five times larger than current capacity in the U.S.—would entail covering an area of land equivalent to Greater London with solar panels. They are similarly exceeding their wind power targets, already boasting more capacity than all of Europe.

China approves no-development zones in 15 regions
China has approved plans by 15 provinces and regions to draw up “red lines” that will put large swathes of its territory off-limits to economic development, the environment ministry said on Monday.

Nothing wasted: the waste-to-energy revolution in China
Sewage—refuse liquids or waste matter usually carried off by sewers—is at the front lines of a global movement for clean energy. Innovative U.S. cities are digging into their dirtiest depths to create new sources of power that optimize economic benefits, generate clean energy, and control pollution. This wastewater-to-power movement is just beginning to catch on in China. But with some of the largest and most densely populated cities in the world, the country could be poised to lead a sludge-to-energy revolution

Nothing wasted: the waste-to-energy revolution in China

Journey to the waste: has the West learned its lesson from China’s plastic ban?
Without reforming its throwaway habits, the West risks overwhelming the Southeast Asian recyclers who have stepped in to fill the gap left by China’s ban on imported plastic waste

After cashiers, supermarket managers may be next to lose jobs as AI predicts what to stock
Chinese search engine operator and AI powerhouse Baidu said it has developed a model that can predict store sales for the next day

Deliveroo has no appetite for China’s ‘competitive’ food delivery market
Online food delivery giant Deliveroo is reluctant to enter China because it sees it as a highly competitive market, according to its founder and CEO.

Exclusive: Chinese banks eye bid for Germany’s DVB Bank – sources
Bank of China (BOC) and Industrial and Commercial Bank of China (ICBC) are among suitors looking at a potential purchase of German transport finance lender DVB Bank, three sources familiar with the matter say.

Beijing Unveils First Testing Site For Autonomous And Connected Vehicles
The enclosed 200-acres site located in the Haidian District of Beijing was co-established by Beijing Innovation Center For Mobility Intelligent and Haidian Driving School.

Beijing Unveils First Testing Site For Autonomous And Connected Vehicles

Chinese Consumers Divided Over Balenciaga’s “Made in China” Revelation
For luxury brands, many of whom pride themselves on their European heritage, or as uniquely American success stories, having items made in China is often controversial. Moving part of their production to China can significantly lower costs — including transportation costs, now China is the leading market for many luxury brands — but companies often prefer to keep such moves quiet due to the enduring perception that items made in the People’s Republic are of lower qualit

Chinese Consumers Divided Over Balenciaga’s “Made in China” Revelation

How Luxury Brands Sell and Celebrate Chinese New Year Online
With China’s growing importance to luxury brands, more and more are making devoted efforts for Chinese New Year. To capitalize on the season, a time when gift giving is popular, a great number of luxury brands have not only released products commemorating this year’s zodiac animal, but also launched tailored digital campaigns.

How Luxury Brands Sell and Celebrate Chinese New Year Online

How International Luxury Brands Translate Their Names for China
They say that there is power in names and nowhere is that truer than China, where Chinese characters often carry a deep significance. For any brand planning to enter the Chinese market, choosing the right Chinese name is usually a top priority. While a clumsy translation might not necessarily make or break your business, it could certainly invite ridicule in China’s quick-to-judge online spaces and create the wrong sort of publicity for your brand.

How International Luxury Brands Translate Their Names for China

China Still Has Too Many Trademarks
I wrote last year about the massive number of trademark applications filed in China in 2016 – 3.6 million, far more than any other country in the world, and increasing at a tremendous rate.

China Still Has Too Many Trademarks

US defence strategy is not news to China
‘China is a disruptive, transitional force in the Indo-Pacific’. So declared United States Pacific Command Admiral Harry Harris at a recent Quadrilateral Security Dialogue (Quad) conference in New Delhi. On the same day, United States Secretary of Defense James Mattis unveiled the United States’ new defence strategy in Washington. Thus far Beijing has reacted with a shrug of the shoulder.

US defence strategy is not news to China

China and the US should build relationships, not a rivalry
The op-ed was headlined: “Understanding America’s China-Phobia.” Wang wrote: “Why is China’s business activity in the U.S. often linked to ‘national security risks,’ with typical China-phobic rhetoric? Why does the panic towards Chinese economic influence still prevail in the U.S., even as the two countries’ economies become increasingly interconnected?”

Forget the goodwill, where’s my money? Angry Chinese investors hijack US embassy’s seasonal greeting
Ambassador’s Lunar New Year message attracts ‘more than 10,000’ comments about the Chinese stock market, mission says

A ‘Golden Era’ in China-UK relations. Really, auntie May?
Trade with China looks like the top prize to a Britain heading for the Brexit. But issues from Tibet to Trump and Hong Kong have taken some of the shine off the relationship

The danger in the deep near China’s multibillion-dollar port in Pakistan
Chinese and Pakistani scientists have teamed up to try to assess the threat to an infrastructure project where geopolitics meets tectonics

Revisiting Chinese neocolonialism
Indeed, the general features of China’s relations with many countries today bear close resemblance to the European colonial powers’ relations with African and Middle Eastern countries in the 19th and 20th century. Among other things, we witness countries exchanging their primary products for Chinese manufactured ones; China dominating the local economy; countries becoming heavily indebted to Beijing; China exerting greater weight on local political, cultural and security dynamics; and Chinese abroad living in their own “expat enclaves.”

Revisiting Chinese neocolonialism

Beijing to ‘guarantee’ funding for health care, education and pensions in China’s poorest regions
The central government pledges to set a floor for basic public services but a question mark hangs over costs and access for migrant workers

A new year but a decades-old blot on China’s conscience: unpaid migrant workers
The world’s largest migration puts on show one of China’s greatest shames – a long-standing failure to guarantee the incomes of the many millions of labourers who built the country

Get ready for the huge Chinese tourism boom
China’s international tourists spend around US$161bn a year on travel, and as this number grows, so an increasing number of economies worldwide will remain eager to capture their share

How bullet trains are transforming China’s Lunar New Year travel rush
Increasing numbers taking high-speed trains to travel across the country to return home for the holiday period

Alain Gillard
Information Officer
Service Asie Pacifique
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Tél 02 421 85 09 – Fax 02 421 87 75
Twitter: @alaingillard
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