How China won Trump’s ‘good and easy to win’ trade war
US President Donald Trump famously tweeted that “trade wars are good, and easy to win” in 2018, as he began to impose tariffs on about US$360 billion of imports from China. Turns out he was wrong on both counts. Even before the coronavirus infected millions of Americans and sparked the steepest economic downturn since the Great Depression, China was withstanding Trump’s tariff salvos, according to the very metrics he used to justify them. Once China got the virus under control, demand for medical equipment and work-from-home gear expanded its trade surplus with the US, despite the levies.
What to Expect as China’s Economy Enters 2021
2020 was a turbulent year for global economies due to the COVID-19 pandemic, with the IMF projecting global growth contraction by 4.4 percent – the worst recession since the Second World War. However, China – despite being the pandemic’s epicenter – was the first and only major economy to recover and enter 2021 with a relatively optimistic outlook. Beijing’s stable and time-sensitive policy responses, epidemic control strategy, and reprioritization of macroeconomic objectives ensured that it was the sole G20 economy that experienced positive growth in 2020. In fact, it is estimated that China’s Q4 growth returned to pre-pandemic levels.
Entrepreneurs from China, Japan, S.Korea optimistic on Chinese economy in 2021: survey
Most entrepreneurs and high-level executives from China, Japan and South Korea are optimistic about China’s economic growth this year, according to a survey by the Global Times Research Center, Maeil Business Newspaper and Nikkei.
PwC Outlook: The global economy is projected to rebound by early 2022, with the fastest rate recorded in the 21st century
According to Global Economic Watch 2021, the Chinese economy is already bigger than its pre-pandemic size, but other advanced economies, particularly heavily service based economies like the UK, France and Spain or those focused on exporting capital goods, such as Germany and Japan, are unlikely to recover to their pre-crisis levels by the end of 2021.
Joe Biden should keep Donald Trump’s China tariffs, outgoing US trade chief Robert Lighthizer argues
The measures have shifted the balance of power in Washington’s favour, the trade representative argues Lighthizer says earlier policies focused too much on dialogue with Beijing that was a ‘waste of time’ and ‘did nothing’
Amid transatlantic tension, the EU has reason to reshape its relationship with China
Just as China should make use of its investment deal with the EU to boost internal reforms, the EU could also see the agreement as an opportunity to deepen its relationship with China, at a time when European unity and economic stability are under stress If Beijing takes a further step to reform its economic structure through greater openness and external competition, it will not only give China new stimulus but also boost the economy of the EU – China’s largest trading partner over the past 16 years. What is Brussels’ next step? Europe is at a key moment in history. With uncertainty in EU-US relations, the European Union could define the meaning of “strategic autonomy” by first outlining its relationship with China.
China’s export growth seen slowing in December, imports steady: Reuters poll
China’s exports likely grew solidly in December but at a slower pace than in the previous month, as demand from its coronavirus-hit trading partners cooled, while imports held steady, a Reuters poll showed on Monday. Exports likely rose 15% from a year earlier, according to a median forecast in a Reuters poll of 25 economists, cooling from a 21.1% jump in November.
China consumer prices rise but worries persist over core inflation
China’s consumer price index moved back into positive territory in December, raising hopes that the country’s economic recovery will further bolster demand at a time when core inflation remains weak, reported the Financial Times. Core inflation, which excludes food and energy prices, fell to 0.4% year-on-year in December — lower than at any point since the coronavirus outbreak began and its weakest level since early 2010.
EU hopes for ‘tech alliance’ with Biden after Trump Huawei 5G ban
But cutting dependence on cheap Chinese network equipment to keep testing allies
Tencent, Alibaba among top 10 most valuable firms globally, with Chinese companies making up 10 per cent of Hurun’s inaugural list
The Chinese companies on inaugural Hurun Global 500 list added US$2.2 trillion in value last year, growing by 73 per cent Covid-19 fuelled an already powerful technology boom, says Rupert Hoogewerf
CBDC digital yuan Crypto blockheads blockchain BSN cryptocurrency Bitcoin
A Shanghai hospital started trialing a digital yuan smart card, and China’s third lottery to distribute the digital currency took place in Shenzhen. The prices of cryptocurrency mining rigs skyrocketed in the last two months during the Bitcoin bull run, while state media discouraged investors from buying into the craze
Kweichow Moutai surpasses Shenzhen economy as meteoric rise sparks bubble concerns in China’s stock market
China’s biggest company has a market value that exceeded the 2019 gross domestic product of Shenzhen, China’s third richest city The meteoric rise of Kweichow Moutai may be an early sign of froth since mainland A share market surpassed US$10 trillion last quarter
Analysis: The trillion dollar weapon in the U.S.-China tech stock war
U.S.-Sino tensions ratcheted up in recent days as outgoing President Donald Trump’s administration pushed through a ban on Americans investing in 35 firms it considers to be linked to China’s military. Sources in Washington last week said Trump was considering adding Alibaba (NYSE:BABA) and Tencent, worth a combined $1.3 trillion, the second and third biggest EM stocks in the world and held by almost every major U.S. investment fund, to the list of banned firms.
China’s railway investment loses steam as government turns from debt-fuelled building boom
China’s state railway company has vowed to improve the efficiency of its existing railway network this year, rather than continue expanding track mileage Railway investment is expected to fall in 2021 as the government focuses on employment, education, social welfare and public health following the pandemic
Chinese electric vehicle maker Xpeng secures $2 billion credit line to expand manufacturing
Chinese electric vehicle maker Xpeng Inc said on Tuesday it has secured a credit line of 12.8 billion yuan ($2 billion) from five Chinese banks to expand manufacturing and sales. New York-listed Xpeng, which has a market value of $35 billion, said the credit facility will diversify its funding channels.
The Luxury Brand Playbook for 2021: Copying What Works in China
For brands, the marketing approach for 2021 seems to be: do globally what worked in China last year. This means, in essence, a full embrace of content-commerce strategies that entertain consumers while paving a smooth path to (mostly online) purchase, leveraging data along the way to ensure that the right messaging is hitting the right eyeballs and being tweaked along the way. Considering the pandemic is far from over and offline “revenge spending” has not yet picked up in Western markets as it did in China last spring and summer, e-commerce livestreaming is primed to become a crucial trend for brands in beauty, fitness, and premium fashion over the course of winter and spring 2021.
China on Guard After Surge in Coronavirus Infections
Dozens of new cases, many asymptomatic, are being reported daily in the country’s northern provinces.
China is stepping up measures to contain a possible widespread coronavirus outbreak, with Beijing shutting highways from a neighboring province amid rising infections. Since Monday, health authorities in the northern Hebei province have reported 99 new infections, taking the total to 695 — including symptomatic and asymptomatic patients — since the start of the new year. The majority of the new cases have been recorded in the provincial capital, Shijiazhuang, which went into “wartime mode” on Friday to contain the virus’ spread.
US-China relations: Capitol chaos a chance for Beijing to show leadership and give peace a chance
China should make it known a fresh start with the Biden administration is its top foreign policy priority, tone down its rhetoric and take the lead on UN Security Council reform in the spirit of global citizenship
China-Australia relations: Beijing slams Canberra for ‘politicising’ canned US$230 million deal on national security grounds
State-owned China State Construction Engineering Corporation has withdrawn its offer to buy Probuild The sale was expected to be blocked by Australian Treasurer Josh Frydenberg and the Foreign Investment Review Board (FIRB) due to national security concerns
Richard McGregor on where to for Australia’s tumultuous relationship with China in 2021
In 2014 Chinese president Xi Jinping came to Australia to address the parliament. Just over six years later, Australian politicians don’t seem to be able to get a Chinese politician to answer their phone calls. Author Richard McGregor explains why the once-cosy relationship between the two countries can never go back to the way it was
UK introduces new rules to halt Xinjiang goods
new rules to ban imports of goods suspected of using forced labour. Image: Shutterstock.
Britain will introduce new rules for companies to try to prevent goods from China’s Xinjiang region entering the supply chain, foreign minister Dominic Raab said on Tuesday, toughening London’s response to allegations of forced labour.
The EU’s China deal doesn’t enhance its global stature
Brussel’s faith in China fulfilling its end of the pact reveals a myopia that will weaken the EU geopolitically Instead, the EU decided to give China a morale booster, which could deepen a belief held by the Communist Party of China that democracies have no stomach for a long-term fight, and this moment of economic weakness is too good an opportunity to miss. There is still time for the EU to reflect upon its short-sightedness, as the deal requires the European Parliament’s approval. Yet, whatever happens in the future, China has once again displayed a remarkable sense of timing, and the EU has demonstrated that it is nowhere close to emerging as a serious geopolitical player on the world stage. For India, there is much to consider here. New Delhi is trying to build a strategic partnership with the EU. But with Brussels’ inability to think strategically, this engagement is unlikely to reach its full potential. India would like very much for the EU to pull its weight as a global geopolitical player, but with the EU looking uninterested, New Delhi will have to find partners elsewhere.
China’s top maker of memory chips plans to double output in 2021
Yangtze Memory also aims to match Samsung on advanced 3D NAND flash chips Though Yangtze Memory is an affiliate of Tsinghua Unigroup, which is facing a serious debt problem, it continues to enjoy strong state support. It received funds from the first and second phases of the China Integrated Circuit Industry Investment Fund, the so-called Big Fund, the country’s most important chip funding program. Multiple sources say Yangtze Memory will not be affected by Tsinghua Unigroup’s financial woes, even though other affiliates have faced significant delays.
China’s next generation rocket engine to power ambitious space programme
State-owned contractor says significant advances in several key technologies have been achieved for the new engine Greater fuel efficiency will increase power for future planetary missions
Biden could struggle with Taiwan issue rocking U.S.-China relations, says political risk expert
The Biden administration “is certainly going to struggle with the conduct of relations with Taiwan,” said Ross Feingold, an expert on political risk. President-elect Joe Biden will take over from an a predecessor who broke with decades of U.S. foreign policy on Taiwan. Among other things, the Trump administration conducted high-level visits to Taiwan — angering Beijing which considers the island a runaway province that must be reunited with the mainland.
Kelly Craft: US envoy’s ‘last-minute’ Taiwan visit angers China
A top US diplomat’s upcoming trip to Taiwan as Washington ends decades-old curbs on contacts with Taipei has again escalated Sino-American tensions.
Beijing mouthpiece says US Capitol attack proves democracy is ‘a failure’
Xinhua commentary claims last week’s chaos ‘tore down the beautiful disguise of American democracy’ Latest mockery from China also describes condemnation from Western politicians as ‘chest thumping, stamping of feet, heartbreak and headaches’
Xi Jinping says ‘time and momentum on China’s side’ as he sets out Communist Party vision
President calls for conviction and confidence amid unprecedented global challenges during top-level meeting on Monday Analyst says remarks show Xi sees ‘the conditions are right for the previously slumbering lion to roar and he will see to it that it does’ “Xi is asking all officials to seize the strategic opportunities in these changing times and push Chinese society and the economy to a new stage of development,” Peng said. “In the future, China will seek to consolidate partnerships with Russia and Southeast Asian countries, try to mend its strained ties with the US, and it will stick to its own principles in dealing with the Hong Kong and Taiwan issues.”
How the West fell in and out of love with China
17th and 18th century Europe admired all things Chinese, from textiles and furniture, to garden design and even philosophy China having fallen out of vogue, suspicion turned into outright hostility, setting a precedent for modern geopolitics
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