Chinese Consumers Prefer Chinese Brands: The Arrival Of China’s Local Consumer Brands
In 2020, the Chinese consumer brand investment and financing market reached the highest level. There were 245 investment and financing events throughout the year, far exceeding 183 in 2018 and 143 in 2019, according to Chinese data tracker Yingshangwang. As China’s economy is undergoing a “L shape” adjustment, the government regards “stimulating consumption and expanding domestic demand” as an important means to promote economic development. As Chinese consumers become more affluent, they are demanding those brands that truly understand and meet their unique needs.
China’s growth is likely to moderate in the next few months, Goldman Sachs says
China is expected to show “spectacular” gross domestic product numbers in the first quarter this year but two risks remain. “The first is simply the policymakers are quite comfortable with the recovery so far and are starting to pull back on policy stimulus to some degree,” says Andrew Tilton, chief Asia economist at Goldman Sachs. The second challenge to China’s recovery is a resurgence of local outbreaks, said Tilton.
On financial risk, People’s Bank of China is more credible than the US Fed
In draining cash from the banking system ahead of Lunar New Year, the PBOC is sending a message of caution. In contrast, the Fed is underplaying the connection between cheap credit and a stock market frenzy in the US
Why the PBOC is keeping an eye on asset price inflation in China
A warning of the risk of asset bubbles and Beijing’s recent net liquidity withdrawal are signals to the market that, while the authorities won’t make a sudden U-turn on pledged policy support, they also won’t tolerate unchecked credit growth The debt-to-GDP ratio for the corporate sector climbed by 13.1 percentage points in the first half of 2020, compared with 5.8 percentage points for government and 3.9 percentage points for households. As a result, in only two quarters, China’s debt has risen from 257 per cent of GDP at the end of 2019 to 280 per cent in June 2020. Therefore, the PBOC’s net liquidity withdrawal from the open market in the last week, which was not expected, seems to be the first warning signal to the market. While it is too early to make a call on whether further policy tightening is around the corner, the market is aware the PBOC has already taken some countercyclical measures, and that further measures will depend on market and economic dynamics. By and large, what happened over the past weeks seems to suggest that Beijing is mulling some adjustments to its economic and financial policies. The bottom line is clear: Beijing intends to maintain reasonable economic growth while keeping credit growth in check. As asset price inflation is likely to attract more money chasing the boom, crowding out credit demand in the real sector, the Chinese authorities have again paid special attention to asset price dynamics.
Why China will have a tough time decoupling from the US dollar
When weighed against the risks, US Treasuries still offer the best returns for China’s massive reserve stockpile. Diversifying into the euro and yen, for example, would mean giving up yield
Chinese President Xi Jinping says intellectual property protection is key part of country’s development plans
Pledge to strengthen protections at home and abroad comes as Beijing seeks to encourage innovation as core part of growth strategy Xi tells Politburo meeting that stronger laws will help protect national security as well as improving business environment
The Environmental Challenges of China’s Recovery After COVID-19
To the extent that the coronavirus lockdown reduced traffic and economic activities, it is no surprise that China saw the rebound of emissions from power plants, industry and transport as the lockdown was lifted and economic activity and industrial production resumed. But the return to air pollution in China threatens to reverse past gains of pollution control in the world’s largest emitter. Research suggested that air pollution from China contributes to up to 65 percent of the ozone increase in the Western United States. A Pew survey in March 2020 reveals that China’s impact on the global environment tops Americans’ list of concerns toward China. China’s failure to tackle such internal challenges may also prompt the state to act more aggressively on the foreign policy front to deflect domestic criticism in an attempt to shore up its political legitimacy. The end result could be a faltering China that is perhaps more dangerous than a rising one.
China’s 2060 carbon neutral pledge ‘incompatible’ with expansion of oil and gas pipelines, study says
China has 34,273km of oil and gas transmission pipelines under construction or in construction planning, more than any other nation on the basis of length But the expansion is at odds with China’s undertaking to reach net zero carbon emissions and could lead to stranded assets amid a clean energy shift
China’s NEV market: top five cities with the highest sales of new-energy trucks and vans in 2020
Buyers snapped up 58,045 units of new-energy trucks and vans in mainland China last year to arrest a two-year slide in sales Shenzhen topped the list of cities with 12,858 vehicles sold, making up 22.2 per cent of China’s NEV truck and van sales
Survey finds 96% of German firms have no plans to leave China, many see rising sales
Germany-based companies have been benefiting from China’s strong economic recovery, which partially compensates for their declines in the EU and US markets, and they have high expectations for the China-Europe bilateral investment treaty (BIT) for which negotiations were completed by the end of 2020, a survey released by the German Chamber of Commerce in China showed on Tuesday.
Alibaba promises cooperation with antitrust probe, Ant Group rectification plan as quarterly revenue rises 37 per cent
The quarterly gain was partly attributed to Alibaba’s latest Singles’ Day shopping campaign, which generated record-high sales of US$74.1 billion Alibaba’s positive December quarter results come more than a month after the government launched its antitrust investigation
Alibaba revenue jumps amid antimonopoly probe worries
Chinese tech conglomerate sets up task force to carry out internal reviews Alibaba Group Holding said on Tuesday that its revenue in the last quarter of 2020 jumped 37%, beating analysts’ estimates amid worries about the impact of an antimonopoly probe into the e-commerce conglomerate.
ALIBABA REPORTS DECEMBER 2020 QUARTER EARNINGS
Alibaba Group today announced financial results for the quarter ended Dec. 31, 2020. Highlights of the group’s earnings are in the infographics and summary below. To read Alibaba Group’s press release covering the results in greater detail, click here.
How Cartier Won China’s Social Media
China’s third generation of social media is driven by a mixture of Social OS and AI content, which produces feeds based on content rather than networks. Luxury brands like Cartier have already embraced this change in China by creating fun campaigns on short-video platforms. The inclusivity seen in Cartier’s user-generated content campaign on Douyin is crucial when targeting China’s younger buyers.
Europe pivots to Indo-Pacific with ‘multipolar’ ambitions
ASEAN and other players welcome hedge against US-China rivalry Some also doubt Europe‘s economic influence following the rise of China. But others still see potential in less glamorous capacity building and technology transfers — areas where France’s Ambassador Penot suggests an explicit EU-wide strategy is really needed. “The EU is already a major partner and can bring a lot in terms of security, concepts, free trade, infrastructure and development aid,” he said. “It is a very important part of our national strategy to pursue this objective of having full EU involvement.” But the Europeans say they are not going anywhere. “If the U.S. is back, that’s great, but the world is not the same as it was four years ago,” said Pejsova. “Let’s not forget that in the past four years, most U.S. allies have also done their bit. Europe doesn’t want to give up the whole idea of strategic autonomy just because the U.S. is back.
China urges Biden to correct ‘strategic misjudgment’ of Trump
Beijing top diplomat warns Washington not to ‘trespass’ on Hong Kong and Xinjiang China’s top diplomat has called on the new U.S. administration of President Joe Biden to change policies set by his predecessor that plunged bilateral relations into their most difficult period since the normalization of diplomatic ties. Yang is the second high-ranking official to have addressed U.S. entities in recent weeks seeking to mend ties with the new administration. Vice President Wang Qishan spoke to a U.S. business forum on Friday, advocating a nonconfrontational approach as the key to keeping a stable bilateral relationship.
Would scaled back US military role in Asia-Pacific open door to China? Not everyone is convinced
A report by the Rand Corporation think tank sets out what a ‘realist’ US foreign policy would look like ‘Advocates of restraint’ are confident that neighbouring countries can still limit China’s power, the authors conclude
China-Australia relations: Canberra denies ‘playing the victim’ in trade dispute with Beijing
Australian Trade Minister Dan Tehan was responding to an editorial in the Global Times that accused him of appearing ‘to be pulling another publicity stunt’Preliminary data last week showed that Australia’s total goods exported to China reached A$145.2 billion (US$110.9 billion) in 2020, just 2.16 per cent less than in 2019
Antony Blinken criticises China and Russia in interview, weighs new sanctions against North Korea
The US Secretary of State took issue with Beijing’s actions in Hong Kong, and said the US should accept people fleeing the crackdown in the cityBlinken also told NBC News he was ‘deeply disturbed by the violent crackdown’ on Russian protesters supporting opposition leader Navalny
Most US opinion leaders back military defence of Taiwan if China invades, survey finds
But intervention is opposed by the majority of the American public, though support has increased in recent years, according to think tank report Most foreign policy leaders and professionals also believed the US was likely to make a major bid to counter China’s rise in the next two years
Yang Jiechi Holds a Video Conversation with the National Committee on United States-China Relations
Yang Jiechi said, China and the U.S. are the two largest economies and permanent members of the UN Security Council. Effective cooperation between the two sides has a direct bearing on the well-being of all people as well as peace, development and prosperity of the world. For the past few years, China-U.S. relations have encountered its most difficult period since the establishment of diplomatic relations. Some in the U.S., sticking to Cold War thinking, perceived China as a threat. Their rhetoric and actions have interfered in China’s internal affairs, undermined China’s interests, and disrupted exchanges and mutually beneficial cooperation between the two sides. Such moves, going against the trend of the times, have seriously damaged China-U.S. relations as well as the fundamental interests of the two peoples.
Myanmar coup: China calls for calm ahead of emergency UN Security Council meeting
Beijing says matter should be resolved by factions within the country Council expected to look at a range of action in response to military crackdown
Juncker slams EU-China deal as ‘cheap’ on labor standards
Former European Commission president says China must sign and ratify workers’ rights conventions.
Coronavirus pandemic has made the US more dependent on China, and cut chances of decoupling
The Biden administration looks set to continue many aspects of Trump’s China policy, but Washington’s ability to contain its economic rival has been greatly reduced The coronavirus pandemic has brought about many changes and made decoupling less realistic, but the US-China conflict will not de-escalate any time soon
Coronavirus inquiry a chance for China and the WHO to polish their reputations
How much information the Covid-19 investigation can gather depends on what and how much material is provided by China Beijing says the visit is an ‘exchange between scientists’
Coronavirus: WHO-led team visits animal health centre in China in search for virus origins
Stop at facility part of inquiry trying to piece together how the virus might have moved from bats to humans After visiting disease control centre, seafood market and hospitals, team member says investigators’ trip is ‘excellent’
Chinese syringe producers under pressure as vaccination programmes drive order surge
– Chinese syringe makers are warning that they may only be able to fulfil some orders as late as June, as global coronavirus vaccination programmes put unprecedented levels of pressure on their factory lines and snarl the country’s own vaccine efforts.
Criminal Probe of Man Who Spread COVID to 82 Sparks Legal Debate
Experts say it will be difficult to prove that the traveling salesman knowingly flouted Tonghua’s disease control measures.
As contactless menu ordering becomes the norm amid COVID, China pushes back
Digital ordering and paying at restaurants was already gaining much ground in China before the COVID-19 pandemic hit. The tap-to-order method on a smartphone is part of the greater development in China where cash and physical documentation is increasingly being phased out. Many restaurants across large cities go as far as making digital menus mandatory, cutting staff costs.
2034: A Novel of the Next World War, an Exclusive Excerpt
What if things escalated? What if communications were knocked out? What if cyberwar was just the start? A note about this special six-part series.
Coronavirus uncertainty in China hinders Year of the Ox vendors at Lunar New Year
The Chinese government is strongly discouraging journeys during the new year period, with holiday travel expected to fall 40 per cent The economic impact of curtailed celebrations and family reunions may be offset by farms and factories remaining open
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