China Press Review – February 5, 2019

Press review

European Union likely to profit the most from US-China trade war, UN group says
European companies likely to capture US$70 billion in trade because of the dispute between President Xi Jinping and American counterpart Donald Trump Japan, Mexico and Canada also likely to benefit from tensions, according to the United Nations Conference on Trade and Development (UNCTAD)

India among countries to benefit from US-China trade war: UN
India is among a handful of countries that stand to benefit from the ongoing trade tensions between the world’s top two economies – the US and China, the UN has said in its latest report. The US and China are locked in a trade war since President Donald Trump imposed heavy tariffs on imported steel and aluminium items in March last year, a move that sparked fears of a global trade war

China Revitalizes Domestic Consumption through New Policy Package
Domestic consumption remains a key priority for China. As Chinese consumers become wealthier, a growing emphasis is placed on the quality rather than quantity of the products and services purchased. In response, the government has introduced a more targeted policy plan to improve consumption and boost consumer spending power in emerging sectors.

China banks on lending to ease slowdown
Build stuff or buy stuff? China has long been a believer in the former to deal with a slowdown in its economy. Now it’s trying to shift the emphasis to the latter.

US-China trade war: UN warns of ‘massive’ impact of tariff hike
A UN trade official has warned a US plan to raise tariffs on Chinese goods next month would have “massive” implications for the global economy.

Poor economic conditions make for a gloomy Chinese New Year
Chinese New Year 2019 begins on Tuesday, but economic conditions may put a damper on the jubilation. As the trade discussions between the United States and China enter a critical phase, it is becoming clear that China’s economy has taken a hit as a result of the ongoing trade tensions.

The EU’s “Softball” Approach to Artificial Intelligence Will Lose to China’s “Hardball” ǀ View
The European Commission’s Joint Research Center released a report that explores the European perspective on artificial intelligence (AI), along with the global AI landscape’s state of play. The report recognizes the value of AI across industry, but while acknowledging the fierce competition on AI taking place between the EU, China, and the United States, it ultimately dismisses the need for Europe to win this global race, arguing instead that for the EU, the more important goal is focusing on developing values and ethics in AI. This is a naive perspective, especially given that China is not only fiercely competing on developing AI, but also aspiring to dominate in AI so as to compete in industries where Europe is leading today. Ironically, even if the EU’s first priority is to shape the values and ethics of AI, it will be severely limited in its ability to do so if it is not leading the development and adoption of this technology.

China offers Lunar New Year olive branch to Canada saying it wants to get relations back on track
Festive messages strike conciliatory tone after two months of tensions following arrest of Huawei executive Sabrina Meng Wanzhou Calgary consul-general complains some countries are unwilling to give China a change even though it does not seek to impose itself

FBI ‘ran sting against Huawei in new technology theft case’
Bloomberg Businessweek said the operation involved Akhan Semiconductor, a US start-up with new glass for smartphone screens Investigators were said to have asked an Akhan executive to record a conversation with Huawei officials at last month’s electronics trade show in Las Vega

Huawei CFO Meng Wanzhou ‘may try to fight extradition from Canada to the US by claiming White House motive’
Meng Wanzhou – also known as Sabrina Meng and Cathy Meng – may be extradited to the US to face charges of breaching Iran sanctions with a Huawei sub-company But citing a ‘cloud of politicisation’ amid the US-China trade war, her lawyer plans to fight attempts to move her

Denmark expels two Huawei workers over work permits, as Norway warns of espionage risk
Copenhagen police said the expulsions were not related to spying and came about as a result of a ‘routine check’ at Huawei’s offices But neighbouring Norway’s intelligence service said it was attentive to ‘the close connections’ between Huawei and the Chinese government

China and Norway face off over ‘ridiculous’ claims Beijing is using Huawei to spy on Scandinavian host
Chinese embassy in Oslo says Norway is working on a ‘hypothesis’ Huawei denies ties to China beyond having its headquarters there

China is winning the electric vehicle race
Demand for electric vehicles in China is soaring. Nearly 1.3 million new energy vehicles (plug-in electric vehicles and plug-in hybrids) were sold there last year – a 62% rise on 2017.
To put that number into context, it’s estimated that as of September 2018, there were only around 4 million electric vehicles in use across the whole world.New energy vehicles accounted for just over 4% of all 28.1 million automobiles sold in China last year. That’s a higher rate than the US (under 2%), and Europe (just over 3%). But it’s not high enough to satisfy the Chinese government. Last April it announced ambitious targets of 10% for conventional passenger cars in 2019, rising to 12% in 2020.

Jing Daily Hosts: Why Now is the Perfect Time for New Brands To Invest in China
How can luxury brands build strategies to be more resilient to macro trends such as the China-U.S. trade war and the slowdown of the Chinese economy that is taking place now?

Jing Daily Hosts: Why Now is the Perfect Time for New Brands To Invest in China

How Luxury Brands Seize Traveling Consumers This Lunar New Year
The massive spending power of outbound Chinese tourists that is due to unleash this Chinese Lunar New Year season spells a billion-dollar opportunity for luxury brands.

How Luxury Brands Seize Traveling Consumers This Lunar New Year

China success for Western firms will be down to the ‘desirability of the brand’
One has to wonder how long demand for desirable expensive foreign goods and experiences can hold up for, especially when paired with a weakening local currency. For the time being however, China demand for luxury seems to be mighty resistant.

Chinese New Year, also known as Spring Festival, is just as much about heading home for the holiday as is it going abroad for vacation. So it’s a natural time to look at the booming China outbound tourism market. Here’s a look at some fun fact from Fliggy, Alibaba’s online travel platform:

How China’s technology boom is changing New Year celebrations
Traditions like cooking big New Year meals might be replaced by tapping an app, but technology is bringing China’s generations together But some question whether technology has changed the New Year atmosphere and whether it has resulted in people becoming lazy and introspective

How DJI went from university dorm project to world’s biggest drone company
The Shenzhen-based company generated sales of US$2.7 billion in 2017, an 80 per cent jump from the year before Wang grew up in Hangzhou, the home base of China’s biggest e-commerce player Alibaba

Four Waste to Energy Projects & One Leachate Deal for Everbright in China
China Everbright International has secured deals worth $313 million to develop waste to energy projects in Hainan Dongfang, Zhejiang Shengzhou and Shandong Pingdu, as well as a leachate treatment project in Ji’nan.

Alibaba Data Shows Changing New-Year Consumption Habits
Chinese people are ringing in the Year of the Pig with ready-made food, smart speakers, and hair transplants.

Charges Against Chinese Hackers Are Now Common. Why Don’t They Deter Cyberattacks?
China’s President Xi Jinping may have dialed down cyberattacks because of a deal with the U.S., or as part of his own moves inside China, or both. Later, though, they crept back up again.

China Joint Ventures: The Long Version, Part 2
This is part 2 of our series on China Joint Ventures. We are writing this series now because our China lawyers are seeing a record number of potential joint ventures, due largely to China’s declining economy, the belief that truly foreign companies will not be well-treated in China and a desire to try to “share the risk” of all this uncertainty. In part one of this series, China Joint Ventures: The Long Version, we talked about fake and exploitive joint ventures.

China Joint Ventures: The Long Version, Part 2

Why this is the “Asian century”
In this excerpt from his upcoming book, “The Future Is Asian: Commerce, Conflict, and Culture in the 21st Century,” Parag Khanna describes the beginning of an Asian-led world order.

Sands China’s debt shuffle, not a Ponzi scheme, but structurally similar
2018 turned out to be a critical year for Sands China’s books. Over the course of a few months, Sands was able to completely refinance by shuffling around about $7.3 billion. They extending maturities and rolled over debt at reasonable fixed rates while protecting exposed portions with interest rate swaps. We’ll get into the numbers and repayment schedules, but in order not to lose the forest for the trees, here’s the basic point. While the moves Sands China has made were the correct and legitimate under the current circumstances, they expose the current fragile nature of the debt-fueled global economy. Rolling over debt is fine as long as you can keep doing it. But once you can’t anymore, then there’s a big problem

Sands China’s debt shuffle, not a Ponzi scheme, but structurally similar

China runs into Belt and Road barriers in South Asia
Countries try to slow Beijing’s advance without provoking hostility The economic corridor initiative, they say, sways opinion in its favor in three ways: energy generation, foreign investment and job creation. Chinese-backed power projects have, quite simply, brought light to parts of Pakistan once plagued by blackouts. For the countries now linked to the Belt and Road, the challenge is to bask in the light while mitigating the initiative’s dark side.

Chinese New Year is steeped in traditions, including shopping. It’s no surprise, then, that luxury brands would design items specifically for the holiday.

Education Frontline: China versus US school consolidation
A billboard on a Chinese campus appeals to college students to help tutor rural “left behind” children. With parents gone to work in the city, grandparents often do not have the education level to help their grandchild study the modern curriculum

Education Frontline: China versus US school consolidation

China and Taiwan are waging war online with these propaganda videos
The Chinese and Taiwanese militaries have released dueling propaganda videos over the past two days. The People’s Liberation Army video – “My War Eagles Are Flying Around The Treasured Island” – called for reunification while showing clips of Chinese fighter jets conducting encirclement drills around Taiwan. Taiwan’s military responded with a video of its own – titled “Freedom Isn’t Free” – showing its armed forces preparing to repel an invasion.

Meals for Chinese New Year, known as Spring Festival in China, are as elaborate as any Thanksgiving Dinner in the U.S. From steamed fish and spring rolls (get it?) to rice cakes and dumplings, a lot of work goes into preparing these feasts.

Chinese netizens confused, disappointed over censorship of Year of the Pig symbol
China’s annual New Year’s gala is meant to usher in the Year of the Pig, but the state broadcaster largely censored all words and images related to pigs during the biggest TV show of the year last night.

Xi Jinping or Donald Trump? 10 quotes but was it China’s president or his US counterpart?
Can you spot the difference between a tweet from the former host of ‘The Apprentice’ and a quote from the leader of the Communist Party?

Alain Gillard
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