China Press Review – January 23, 2020

Press review

In Furthering China Trade Talks, Huawei Held ‘Hostage’
If Huawei loses in Europe, China may feel it is necessary to follow most of the letter of the phase one deal regarding U.S. purchases, namely commodities that China needs now. Other purchases, namely manufactured goods, may be taken up begrudgingly, though this is less clear.  But after the dust settles, Beijing will see Huawei restrictions in Europe as Washington dragging friends and family into their spat. China will not be pleased.  “I don’t see Xi Jinping taking all that sitting down,” says McCarthy.  On Wednesday, President Trump told FOX Business anchor Maria Bartiromo that he understood the dilemma other countries are having with Huawei.  “I’ve called 10 countries and gotten them not to buy it,” he told her. “But, you know, at the same time, getting along with China is a good thing.”

China coronavirus: Another city joins Wuhan in quarantine lockdown as Beijing tries to contain deadly outbreak
All public transport closed down in city of Wuhan, in central China, to try to limit spread of infection – and neighbouring city of Huanggang follows suit      Scramble to leave Wuhan before road and rail closures, while those staying stock up on food and medical supplies

How China’s Virus Outbreak Could Threaten the Global Economy
Markets have tumbled as investors worry that Chinese shoppers will stay home for the Lunar New Year holiday and beyond. Economists say the possible impact isn’t yet clear.

Macau confirms second patient infected with Chinese coronavirus
Casino hub’s second patient, a 66-year-old man who arrived from Wuhan at 4pm on Wednesday, was sent to Conde S. Januário Hospital upon being tested positive

Chinese told to comply with airport coronavirus checks after woman ‘evaded’ screening in France
Embassies urge citizens to follow instructions after traveller from Wuhan posts on social media that she took medicine to bring down her temperature    Passenger has been contacted and asked to call French emergency hotline

Stocks drop on concerns over impact of China virus
World shares fell Thursday as health authorities around the world rushed to monitor and contain a deadly virus outbreak in China and keep it from spreading globally. China and other nations have ramped up screenings for fever on aircraft and at airports. The central Chinese city of Wuhan, where the virus is concentrated, closed down its train station and airport Thursday to prevent people from entering or leaving the city.

China’s provinces revise 2018 GDP estimates amid questions about economic data quality
All 31 of China’s provinces have revised their GDP estimates for 2018, with at least 12 publishing smaller amounts than first reported    Revisions come amid scepticism about the reliability of Chinese economic figures, due to discrepancies between provincial and national economic data

How China Overtook the U.S. as the World’s Major Trading Partner
Today’s animation comes from the Lowy Institute, and it pulls data from the International Monetary Fund (IMF) database on bilateral trade flows, to determine whether the U.S. or China is a bigger trading partner for each country from 1980 to 2018. The results are stark: before 2000, the U.S. was at the helm of global trade, as over 80% of countries traded with the U.S. more than they did with China. By 2018, that number had dropped sharply to just 30%, as China swiftly took top position in 128 of 190 countries.

The 5 Largest Economies In The World And Their Growth In 2020
China, officially the People’s Republic of China, is the second-largest economy in the world and the fastest-growing trillion-dollar economy. With a GDP of $14.14 trillion in 2019, it makes up 16.38% of the global economy. When compared on the basis of purchasing power parity (PPP), China is the largest economy with a GDP (PPP) of $27.31 trillion. Based on 2019 figures, the size of China’s nominal GDP was lesser than that of U.S. by around $7.3 trillion, the gap is expected reduce to around $4.5 trillion by 2024. China is on the path to become a $20 trillion economy by 2024.

3 Key Takeaways from McKinsey & Company’s Chinese Consumers 2020 Report
The retail world continues to be concerned about Chinese consumer spending power as implications of the trade war lingers and China’s economy remains steady at 6% growth. But McKinsey & Company, the global management consulting firm, is here to tell you that there’s nothing to worry about. Although retail sales growth has slowed, China’s consumer confidence index had hit a 10-year-high of 126 points in February 2019, though by November 2019, it was reported at 124.6 by the National Bureau of Statistics of China.  Moreover, the total sales from China’s 2019 Singles’ Day hit a record-shattering 410 billion yuan ($58 billion), which was up by 31% compared to that of 2018, according to McKinsey.  Here, Jing Daily summarizes three major takeaways from the 20-page report, which was published last month based on the analysis of 5,400 respondents from 44 Chinese cities.

Alibaba CAO talk ‘Power of the Platform’ at Davos 2020
One of the most important social-welfare campaigns in China right now is the push to eradicate poverty – and e-commerce giant Alibaba Group is doing its part. But not by merely donating money to the cause. Instead, the e-commerce giant is using its powerful platform economy to enable China’s poor to lift themselves out of poverty.

E-commerce makes China more accessible export market for Mexican companies: business insider
E-commerce has made China a more accessible export market for Mexican companies to have “many opportunities” to do business, an industry insider said here on Wednesday.   Andres Diaz Bedolla, a member of the Chinese e-commerce giant Alibaba’s working team here, said the company believes that online sales have boosted growth prospects for businesses around the globe.

What The 5G Revolution Means For Luxury Fashion
The identities of many luxury fashion brands are formed from the conceptual leadership of their founders. These histories and stories provide the foundations for modern brands’ strategic directions.  However, the old rules are less relevant now, as Ian Rogers, chief digital officer at LVMH, explains. “The luxury business is still a business of the previous century. This century is a complete and wholesale change. It will be defined by the way human beings have been connected via the internet; also, by data and the collective intelligence derived from that data using AI [artificial intelligence] and machine learning.”

How technology saved China’s economy: Outsiders focus on how China is using tech to create a surveillance state, but it has also created a new engine of growth
To offset its shrinking work force, China needed to increase productivity. A recent IMF paper shows that after slumping for a decade productivity growth began to recover as the tech boom took off around 2015, and predicts that while the economy is bound to slow further, it will slow much less sharply if digitalisation continues at a rapid pace.   No economy can rise forever. Debts and demographics still weigh on China’s prospects, and easy access to online loans may compound the risk of financial crisis. But for now, it appears that the tech revolution came just in time to put off the reckoning and rescue China from a deeper downturn.

U.S.-China Trade War of 2019 Spills into 2020 for Ports, Shippers and Manufacturers
The Jan. 15 signing of a U.S.-China Phase One agreement did spawn a sigh of relief among those troubled by the trade tensions between the two nations. But six days later, a warning came from a couple experts closely watching the unfolding events on behalf of ports, shipping lines and manufacturers. The crux of that warning? Stay tuned.

China’s Investment In Belt And Road Initiative Cools – Analysis
Chinese investment at that level may still be attractive to cash-strapped developing countries, but it will be a fraction of the headline figures for BRI that have raised expectations and lured some into contracts that they cannot afford.    The falling investment figures may also challenge the view that China stands ready to commit vast financial resources to expand its influence in BRI countries, despite economic problems at home.  Instead, it appears to be tightening its BRI belt to control capital outflows while pursuing smaller construction contract opportunities abroad.   “The conventional wisdom is behind the trend on weaker Chinese spending. BRI has been overhyped from the beginning and now includes dozens of countries that should expect little in the way of Chinese activity,” Scissors said.

Beijing moves towards waste sorting
Beijing’s 21 million residents generate 26,00 tonnes of domestic waste per day. It is the second city in the country after Shanghai to start waste sorting. Offenders can expect stiff fines.

China to ramp up U.S. buys under trade deal, but skeptics question targets
China has pledged to buy almost $80 billion of additional manufactured goods from the United States over the next two years as part of a trade war truce, according to a source, though some U.S. trade experts call it an unrealistic target.

U.S. Secretary of State cautions nations against taking ‘easy money’ from China
U.S. Secretary of State Mike Pompeo, on a visit to Jamaica on Wednesday, cautioned nations against taking “easy money” from China, warning it could be counterproductive, in a second attack in as many days against China’s economic role in the region.

Present.Perfect. review – China’s livestreamers looking for love
This eerie documentary dives deep into the hundreds of millions of online attention-seekers desperate to make contact via tales of the bizarre and mundane

China’s rehabilitation of Confucius
Of all the changes taking place in China these days, one of the least reported is the rehabilitation of Confucius, that old sage born 500 years before Chris

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