US and China on path to ‘inevitable’ economic decoupling: report
White House needs to urgently work out the costs of separation, with the process already under way, researchers say. Disengagement must be targeted and based on facts, and not gratuitous, they say. It said that in strengthening state control, stifling private enterprise and pursuing hi-tech self-reliance, China had decoupled itself from liberal market economic norms. Daniel Rosen, a leading author of the report and head of China research at Rhodium, said US-China engagement was always contingent on shared liberal economic goals, but as Beijing moved back towards greater state planning, “a less permissive stance is necessary”.”But our self-interest lies in purposeful decoupling, not a gratuitous pulling apart. This study is a step toward resizing our engagement rationally,” he said.
Cutting China off from the U.S. would cost America hundreds of billions of dollars, report says
Expanding U.S. tariffs of 25% to all trade with China could cost the U.S. $190 billion a year in GDP, according to a report released Wednesday by the U.S. Chamber of Commerce and Rhodium Group. If the U.S. is forced to sell half of its direct investments in China, that would cost American investors $25 billion a year in capital gains and up to $500 billion in GDP losses, the report said. U.S. businesses risk losing global competitiveness if sweeping policies force separation from China, the report said.
IP law looms large over U.S.-China relations
If the new U.S. Secretary of the Treasury, Janet Yellen, is to be believed, the Biden administration will not tolerate any signs of lapses in China’s IP protections. “We need to take on China’s abusive, unfair and illegal practices,” Yellen said to the Senate Finance Committee at her confirmation hearings. As reported by Bloomberg, she added, “[China has] been stealing intellectual property and engaging practices that give it an unfair technological advantage, including forced technology transfers. And these … are practices that we’re prepared to use the full array of tools to address.” Biden had expressed similar sentiments during a December interview with The New York Times. However, he also said that they would work with ally nations to “develop a coherent strategy” for addressing cases of IP infringement and other issues — a stance Yellen echoed before the Senate — instead of taking China on in a unilateral and bellicose manner. This more nuanced approach could yield greater cooperation from Beijing and help repair U.S.-China trade relations, but we will likely not know one way or the other for some time. As we saw with the trade war, conflicts between the U.S. and China can quickly escalate and have ripple effects throughout the world. It would thus be wise for all organizations doing business in China to keep themselves abreast of the country’s evolving IP regulations and work with a reliable IP services provider to help establish strong protection for their intangible assets.
Is China Emerging as the Global Leader in AI?
China is quickly closing the once formidable lead the U.S. maintained on AI research. Chinese researchers now publish more papers on AI and secure more patents than U.S. researchers do. The country seems poised to become a leader in AI-empowered businesses, such as speech and image recognition applications. But while China has caught up with impressive speed, the conditions that have allowed it to do so — the open science nature of AI and the nature of the Chinese market, for instance — will likely also prevent it from taking a meaningful lead and leaving the U.S. in the dust
Digital-enabling countries proved more resilient to the Covid-19 economic shock
China’s rise seems unstoppable. In the three years preceding the outbreak of Covid-19 , China moved from rank 17 to rank 4. China has seen rising scores across the board: the country’s regulation score improved by +7.4 points after increasing by +15 points in 2018. The connectivity score also increased by +1.3 points. Lastly, the knowledge score rose by +12 points due to an increase in China’s innovation capability over 2019. Yet, the skills score did not follow the same pattern, highlighting that China still has leeway to boost the skills (especially digital skills) of its population. This would allow Chinese companies to appropriately tap its innovation potential. Data also show that others in Asia made progress in the years preceding the Covid-19 crisis: Hong Kong, now at rank 7, previously 11. South Korea, at rank 12 up from rank 16. Six out of the fifteen top digital enablers were in the Asia-Pacific region at the end of 2019. France had also advanced by two spots to rank 15, and Spain had gained 4 spots to rank 20. Other remarkable progressions include Vietnam from 67 to 57 and Saudi Arabia from 53 to 41, confirming a clear willingness to transition towards a new model of growth.
China’s Industrial Standards for the Internet of Things: What the Draft Guidelines Say
The Ministry of Industry and Information Technology (“MIIT”) released the Guidelines for Building Basic Security Standard System for the Internet of Things (“Draft”) on January 15, 2021 to gather public opinions until February 14, 2021.The Internet of Things (“IoT”) can be defined as a network of physical objects embedded with sensors, software, and other technologies for the purpose of connecting and exchanging data with other devices and systems over the Internet. The Draft aims at building and developing an IoT basic standard system, that will be implemented in two phases. By 2022, the said system will be established, and at least 10 industry standards will be drafted along with the stipulated security requirements clarified. Following that, by 2025, more than 30 industry standards are expected to be drafted targeting the improvement of the security level of IoT cross-industry application.
US-China tech war: US chip innovation is hurt by Beijing’s ‘mercantilist’ strategies, Washington think tank says
US think thank ITIF estimates that China’s protectionist policies have led to 5,100 fewer US semiconductor patents annually Beijing has ramped up support for its domestic semiconductor industry amid US sanctions and increased tension between the two countries
China unveils plan to transform manufacturing sector with internet of things
China plans a hi-tech transformation of manufacturing to offset rising production costs and consolidate its position in global supply chains Beijing will help modernise the sector with advancements in 5G, cloud computing and IoT, the government said on Thursday
10 BEST E-COMMERCE PLATFORMS FOR YOUR RETAIL STORE
E-commerce sales are growing at a rate of 13 percent year over year. In 2019 alone, the worldwide e-commerce sales were 18 percent higher. Competition in e-commerce is cutthroat. In order to stay relevant, you need to constantly upgrade your e-commerce platform.
China steps up digital currency rollout, deepens cooperation with SWIFT
Based on specific designs, DCEP can realize transfer and point-to-point exchange with only digital wallets rather than bank accounts. While satisfying the current payment needs of online banks, WeChat Pay under Tencent and Alipay under Alibaba, the DCEP can also break the defects of these payment modes’ reliance on internet. As the PBC continues expanding trials sites, the implementation and promotion of the DCEP across the country will step up. SWIFT, the global system for financial messaging and cross-border payments, on January 16 set up a joint venture – Finance Gateway Information Services Co – with the Chinese central bank’s digital currency research institute and clearing center. After officially establishing a wholly-owned entity in Beijing in June 2019, the new strategic move of SWIFT marks its deepening cooperation with China.
China to Roll Out Provincial Renewable Energy Targets
The targets could help fulfill the country’s commitment to installing 1.2 billion kilowatts of wind and solar power capacity by 2030.
Beside Chips, China Heavily Relies On Foreign Imports In This Critical Sector Too
Even if China replaced the United States as the world’s largest manufacturing country, but it relies on other countries on many of the most advanced tech products such as semiconductors. Another area where China relies heavily on foreign imports is lab equipment. In the past ten years, China’s reliance on foreign high-end lab equipment did not ease even as China advanced in other tech areas. Statistics show that China imports nearly 100 billion U.S. dollars of lab equipment each year, second only to its imports of petroleum and semiconductors. Among them, 90% of high-end lab equipment are monopolized by foreign companies.
Credit Suisse looks to expand China onshore presence: CFO
Credit Suisse is looking to boost its wealth management business by building up its China onshore presence and expanding elsewhere in the Asia-Pacific region, Chief Financial Officer David Mathers told Reuters in an interview.
China’s Baidu beats revenue estimates on strong cloud, AI demand
China’s Baidu Inc reported quarterly revenue above Wall Street expectations on Wednesday, helped by a recovery in advertising and an uptick in demand for its cloud services and artificial intelligence platforms.
JD Logistics IPO expands the e-commerce empire of China’s largest retail company with third related public listing in nine months
After the JD Health IPO and a secondary listing for JD.com, China’s second-largest e-commerce firm now plans a public offering of its logistics unit With its fleet of delivery workers, drones and autonomous vehicles, JD.com has often been compared to Amazon
China-EU trade booms despite headwinds, a boon for many firms
Bernard Dewit, chairman of the Belgian-Chinese Chamber of Commerce, commented that these encouraging developments demonstrated the importance of keeping the momentum going. “We should continue to have a strong trade relationship with China,” said Dewit. “China is a booming economy in the world, and it’s in the interest of the EU and the EU companies to have close trade relations with China.”
EU-China trade has significant growth potential, says EUCCC head
“If ratification can be achieved, we hope that there will be the political will to go beyond the implementation of the agreement as it stands, and to continue reforming the Chinese economy to benefit not only EU businesses but also competitive and innovative Chinese private enterprises,” Wuttke said. “The current situation could act as the EU’s ‘Sputnik moment’. Obviously, the focus should not be Moon-bound endeavors, but artificial intelligence, biotechnology and information and communication technology. After all the EU is still an engineering superpower,”
Podcast : Why China’s state capitalism is not breaking down – Arthur Kroeber
Leading economist Arthur Kroeber sees state capitalism in China not collapsing and certainly not going downhill as Japan’s economy did in the past. He addresses a panel at CSIS Online on how the world can face the second-largest economy
US communications watchdog seeks to accelerate removal of Huawei, ZTE equipment by rural carriers
FCC aims to increase the number of rural network carriers eligible for ‘rip-and-replace’ funds Proposed changes would allow carriers with up to 10 million customers to access funds
Huawei turns to AI pig farming as the Chinese tech giant explores new growth areas outside smartphones
Huawei said it is launching an artificial intelligence pig farming project amid ongoing US sanctions that have hammered its smartphone business Other tech giants, including JD.com, NetEase, and Alibaba, have all sought to bring new tech to pig farming in China, home to half the world’s live hogs
TikTok’s reprieve in US offers hope for other Chinese tech companies
The new Biden administration suspended legal actions against the popular video-sharing app while reviewing US policy toward China tech companies The review also raises the prospect that other actions by former president Trump against Chinese firms might be reversed
China’s rare earth export curbs push Australian miner to fast track Africa project as nations step up diversification plans
Concerns over China’s intentions were heightened when sources said Beijing could restrict exports to US, a move that could hurt the weapons-making industry China dominates global rare earth production, but a new Export Control Law took effect in December, limiting the export of sensitive materials and technology “The Chinese dominance in supplying over 95 per cent of the world’s heavy rare earths production comes from their depleting reserves of ionic adsorption clays. Recent policy to prioritise and stockpile critical and heavy rare earths for Chinese domestic supply means less exports.”
China to Roll Out Provincial Renewable Energy Targets
The targets could help fulfill the country’s commitment to installing 1.2 billion kilowatts of wind and solar power capacity by 2030.
Chinese TikTok becomes established search engine with 550 million users
The monthly active users of Douyin’s (Chinese TikTok) video search function have exceeded 550 million. This is the first time that the short video platform has announced the number of people that rely on it as a search engine. An annual report released by Douyin earlier this year revealed that 400 million searches are made on the platform on average per day. These figures represent the increased prominence of Douyin and short video content in China’s online sphere.
What Luxury’s Next Big Market Wants
Tier-3-and-under cities represented a whopping 44 percent of China’s total luxury sales in 2019, but how should you market to this growing consumer base
Adidas Is Selling Reebok. Will Chinese Buyers Swoop In?
CNN previously reported that aside from the VF Corporation (the parent company of Vans and The North Face) and Authentic Brands Group (ABG), China’s Anta Sports could be a strong potential suitor for Reebok. Considering Reebok’s solid reputation in China, it’s not unreasonable to imagine Anta scooping it up, especially with its history of acquiring Fila’s Greater China business in 2009, Sprandi in 2015, and the outdoor brand Arc’teryx in 2019. While China has managed to seemingly overcome the vast economic devastation brought on by COVID-19, much of the rest of the world — including most foreign brands — continue to suffer from the ongoing pandemic. Perhaps this gives the edge to Anta, if it is indeed interested in adding another sports apparel brand with global prestige to its ever-increasing roster. It’s a buyer’s market.
To lay coronavirus conspiracy theories to rest, both the US and China need to be transparent
Both China and the US have accused each other of contributing to the origins of Covid-19, but Chinese concerns have not been taken seriously The allegations of biowarfare surrounding this pandemic should prompt a review of the Biological Weapons Convention and states’ compliance with it
China, India able to absorb share of record coronavirus-induced global debt levels with ‘growth credibility’
Global debt surged to US$281 trillion last year, leading the overall debt to gross domestic product (GDP) ratio to rise by 35 percentage points to 355 per cent Institute of International Finance (IIF) says half of the debt increase globally last year was accrued by governments in an effort to offset the impact of the coronavirus
China says stockpiling of Covid-19 vaccines by rich countries needs to stop
Chinese Foreign Minister Wang Yi warns of growing inequality in vaccine distribution as Covax Facility misses target Pandemic cooperation should not be a zero-sum game, Wang tells UN Security Council
WTO: Ngozi Okonjo-Iweala faces tall order to reform global trade body, Chinese experts say
“Reducing subsidies can only happen when China is willing to do so, but that’s more between China and the US, not within the overall WTO,” he said. Tackling trade distortions from subsidies, which are widespread in China, was essential for the WTO’s future, said Christine McDaniel, a senior research fellow at the Mercatus Centre at George Mason University.
China-Australia relations: global iron ore market to ‘remain robust for some time’, says Fortescue CEO
Fortescue Metals Group reported their net profit after tax for the first-half of the year was US$4.08 billion, up from US$2.45 billion a year earlier China’s focus on infrastructure last year drove a more than 50 per cent rise in the price of iron ore, which reached a record in December on China’s Dalian Commodity Exchange
Blinken to meet ‘Quad’ partners Japan, India and Australia on Thursday
Foreign ministers to discuss free and open Indo-Pacific in first meeting in Biden eraU.S. Secretary of State Antony Blinken will meet virtually on Thursday with his counterparts from Japan, Australia and India in the “Quad” framework, a grouping seen as part of efforts to balance China’s growing military and economic power.
US Secretary of State to hold talks with ‘Quad’ members, a first step to coordinate China policy
Antony Blinken will speak with foreign ministers of Japan, Australia and India on Thursday Spokesman calls talk ‘critical to our shared goals of a free and open Indo-Pacific and rising to the defining challenges of our time’
The West Turned a Blind Eye to China’s Threat to Democracy
Hubris drove failed engagement policies. Now, the democratic world must fight back. When China becomes more aggressive on the international stage, the sole correct response is not appeasing the country but standing firm. This barbaric conduct, including genocide in Xinjiang and the suppression of Hong Kong, must result in economic punishment. This can create a vicious cycle for the CCP; the weaker the economy is, the more aggressive the nationalism will become and the greater the party’s isolation will grow, sparking more economic problems. When the cycle spirals, the CCP will need to find a different source of legitimacy, an additional incentive for the people to support the intangible social contract.
US-China relations: new cold war a struggle over information, not democracy
This new economic and technological cold war’s most potent weapon is not ideology but information, which gives China an advantage and the US-led West a handicap The West is handicapped but not doomed in this struggle, but it cannot count on glasnost taking place in today’s China to win this time round Glasnost in today’s China? Forget it. Xi leads a rising country with a strong economy and military which believes it should rightfully be the global top dog. There’s no Berlin Wall to be dismantled, only an unassailable Great Firewall that fans nationalism by censoring the internet. This new economic and technological cold war’s most potent weapon is not ideology but information – controlled versus free-flowing information. This deals China an advantage and the US-led West a handicap. Democracy won the old Cold War, but democracy is its own worst enemy in the new one, especially in the age of the internet. Beijing prevents US leaders from speaking directly to the Chinese people about the virtues of democracy.
Most people in Britain see China’s rise as a top threat to security in next decade, survey finds
China is also the second least trusted nation after Russia among Britons, according to annual poll by British think tank Just 22 per cent of respondents said they supported London pursuing economic ties with Beijing, while only 8 per cent backed tilt to Indo-Pacific
Conflicts to Watch in 2021
A severe crisis between China and the United States over Taiwan rises to a top-tier conflict for the first time, reflecting heightened concern over the growing risk of military confrontation between major powers. However, an armed confrontation in the South China Sea involving U.S and Chinese forces is judged to have a lower likelihood this year than in 2020.
What does China say to claims it played a role in Myanmar’s military coup?
Protesters outside the Chinese embassy in Yangon accuse Beijing of aiding the coup plotters China denies it had knowledge of the overthrow of the elected government headed by Aung San Suu Kyi
Hong Kong national security law: media tycoon Jimmy Lai denied bail, will remain in custody while facing raft of charges
The 73-year-old founder of the Next Digital media group and the tabloid-style Apple Daily newspaper has spent the last 68 days behind bars Lai is facing eight separate charges, including under the Beijing-imposed national security law, in six cases
Political repression and authoritarian legalism in Hong Kong
The recent round-up and arrest of 53 pro-democracy activists in China’s nominally-autonomous, semi-democratic Hong Kong Special Administrative Region was the latest escalation in a long war on political opposition. With the crackdown perpetrated under the draconian national security law imposed by Beijing last year, the question now is whether Hong Kong’s English-derived, common law legal system can retain its distinct character and identity in the face of China’s authoritarian agenda.
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