China Press Review – January 31, 2020

Press review

Pompeo urges EU to exclude ‘high-risk suppliers’ from 5G networks, after bloc spares Huawei from ban
The EU on Wednesday issued guidelines allowing members to decide what part China’s Huawei Technologies can play in their 5G telecoms networks
The US wants the world to ban Huawei from the West’s next-generation 5G networks on fears its gear could be used by China for spying

No Huawei ‘smoking gun’ in Europe, French cybersecurity chief says
Huawei, the world’s largest telecoms gear supplier, has repeatedly denied that its products posed any kind of security threat

Why Boeing’s influence over Washington might be as insidious as Beijing’s control over Huawei
While the Chinese government’s involvement in private firms is well known, American corporations’ influence over their government, and the disastrous consequences this may have, garners less attention

China’s financial system may be ‘less resilient’ than it appears, some banks may require recapitalisation: S&P
People’s Bank of China has a ‘better handle’ on country’s financial risk, S&P Global Ratings says    New regulations likely to be introduced to address vulnerability to governance, liquidity and contagion risks: S&P

Hong Kong, hurt by US-China trade war, protests, replaced by Tokyo as Asia-Pacific’s largest commercial real-estate market in 2019
Tokyo and Seoul took the first two spots, with Hong Kong in third place    Hong Kong property market entering downward phase, analyst says

I’m Being Sued in China for Infringing My Own Trademark? Or, Do You Feel Lucky, Punk?
 “The first person to file for a trademark gets it.” This means that if someone files for “your” China trademark before you do, that person or company that filed first gets it. Why would this be the case? Because it isn’t your trademark in China until you have filed for and been granted it. And this is because China is a “first to file” country.

China says its manufacturing PMI came in at 50.0 for January, as expected
China said on Friday its official manufacturing Purchasing Managers’ Index came in at 50.0 for January, said the National Bureau of Statistics.  Economists polled by Reuters had expected the official January manufacturing PMI to come in at 50.0. PMI readings above 50 indicate expansion, while those below that level signal contraction. China’s statistics bureau in its analysis of the data said that the impact of the coronavirus outbreak was not fully reflected in its January’s PMI reading as the survey was conducted before Jan. 20.

China’s US soybean imports soar in wake of phase one trade war deal
China brought in 3.09 million tonnes of soybeans from the US in December, 44 times the level a year ago, data from the General Administration of Customs showed   Beijing has pledged to buy billions of dollars more in agricultural goods from the US as part of their phase one trade war deal

Wilbur Ross says coronavirus could bring jobs back to the US from China
Donald Trump’s Commerce secretary noted potential US boost when asked about the outbreak’s effect on global economy     Ross calls virus ‘another risk factor’ businesses must consider, citing Sars and African swine fever

No, Team Trump, the Coronavirus Isn’t Good for America
The commerce secretary just flunked microbe economics.

At Least Two-Thirds of China Economy to Stay Shut Next Week
More than a dozen Chinese provinces announced an extension of the current Lunar New Year holiday by more than a week as the nation attempts to halt the spread of the novel coronavirus that has killed hundreds of people and sickened thousands.

Too soon to tell economic impact of virus on China: IMF chief
It is still too soon to gauge the economic impact of the virus outbreak on China’s economy, beyond the first three months of the year, International Monetary Fund chief Kristalina Georgieva said Thursday.

The coronavirus outbreak is going to slash China’s economic growth – and not just China
their modelling projects GDP slowing from 6% in Q4 to just 4.5% this quarter

The coronavirus could cost China’s economy $60 billion this quarter. Beijing will have to act fast to avert a bigger hit
China may have to cut taxes, boost spending and slash interest rates to prevent the coronavirus outbreak wreaking havoc on an already fragile economy. The economic impact of the virus is still impossible to determine, but one state media outlet and some economists have said that China’s growth rate could drop two percentage points this quarter because of the outbreak, which has brought large parts of the country to a standstill. A decline on that scale could mean $62 billion in lost growth.

China’s economy was supposed to get a boost this year. The coronavirus makes that unlikely
Even though the economy should be expected to bounce back once the virus is brought under control, the real issue for China may be that citizens think that the political authorities were slow to share information about it. This would add to other political issues surrounding the government, including the detention camps in Xinjiang Province, the protests in Hong Kong, the recent election in Taiwan and the trade war with the United States. We shall have to see, once the public health scare is over, how the economy bounces back and whether the government tries to give it some additional help. But the lesson from this episode is not so much the economic costs of temporary shocks, which we can measure and are in some ways self-correcting. Rather it is the longer-term consequences for the economy of a highly centralized and authoritarian government, whose flaws have been further exposed by this health crisis.

The Wuhan coronavirus is also an economic plague for China
When an epidemic coincides with the spending spree that traditionally accompanies the Chinese New Year festivities, a country’s economic health also comes under strain. Chinese government rhetoric is deeply embedded with promises of economic prosperity for its growing middle class, and looming fiscal insecurity, the likes we are seeing during the Wuhan coronavirus outbreak, is likely to have far-reaching social and political effects.

Policymakers fret over risk to global growth from China virus outbreak
 A rapidly spreading virus outbreak in China is emerging as a potentially major new risk to the global economy and leaving policymakers, still grappling with the impact of the Sino-U.S. trade war, fretting over the widening fallout. “China’s economy is very important in the global economy now, and when China’s economy slows down we do feel that – not as much though as countries that are near China, or that trade more actively with China, like some of the Western European countries,” Powell said.

The Cornovavirus Shows China Quite a Bit
Not an easy time for China. God bless them in this time. Let’s also see what this time shows us about China. The Cornovavirus shows China in ways we can take note of. Due to the Wuhan Coronavirus, the Jiangsu government issued an order stopping social and entertaining gatherings from meeting – and some businesses.   Chinese materialism is deep and strong as always. You may also want to see Face in China Impacts Hiring. Both are long term issues that influence hiring in China. China will lick this virus as they are focused. In the meantime, we can see them in crisis. It also shows they like to eat strange things, but not too relevant here.

China’s corona-action is more about trust than health – Ian Johnson
Beijing-based Journalist Ian Johnson describes the governmental corona-action in Beijing and explains why it has more to do with lack of trust in the government than health, in the New York Times. “Considering the underlying distrust, it’s hard for the government to say what many epidemiologists are saying: This outbreak is serious but not catastrophic.”

Paper on human transmission of coronavirus sets off social media storm in China
Research based on first 425 cases in Wuhan finds disease was being spread among close contacts since mid-December     But that was only confirmed by health authorities on January 20, and internet users accuse them of withholding information

Coronavirus: Global health emergency declared by World Health Organisation, reversing earlier decision on outbreak
Decision comes amid growing criticism of the UN health agency’s move last week not to declare the outbreak a ‘public health emergency of international concern’ Disease is spreading steadily overseas as cases rise inside China  “Some countries have taken questionable measures concerning travellers,” said Didier Houssin, chair of the WHO’s emergency committee. Those measures, he said, “should not constitute an example to follow”

Singapore closes borders to all Chinese travellers to stem spread of coronavirus
The island nation is the first Southeast Asian country to bar all visitors from the mainland  The visa suspension will come into effect immediately, while the travel restriction will start at 11.59pm on Saturday Singapore will close its borders to all new visitors from mainland China, including foreigners who have been there within the past 14 days, becoming the first Southeast Asian country to do so in a bid to stem the spread of the deadly coronavirus.

Coronavirus: global travel restrictions imposed on Chinese travellers as airlines cut flights to mainland
At least 17 economies have restrictions on or barred entry to travellers from China, while more than 20 airlines are suspending or reducing flights    Some 22 countries and territories besides the mainland have reported cases of the virus since it was detected in the Chinese city of Wuhan last month

How the coronavirus crisis is exposing the ills of the China model
An all-powerful government means a swift and effective quarantine but the same hierarchical system caused critical delays in containing the coronavirus    Likewise, the China model, so effective when the economy was nascent, has outlived its usefulness in a country now trying to beat the middle-income trap

Xi’s one-man rule hamstrings coronavirus response
Bureaucrats hesitate to move without top leader’s orders

Help or hindrance? How Chinese politics affected coronavirus response
Authoritarian bureaucracy has allowed dramatic response but also let virus fester  When the crisis ends there may be a leadership shakeup in Wuhan, in Hubei province and perhaps among health officials beyond that.

China’s top court says it was a mistake to quell early “rumors” about the Wuhan virus
The court’s criticism of the Wuhan police’s handling of rumors may just be the latest example of deflecting anger. Meanwhile, it made it clear that the court still considers many kinds of rumors actionable. Deliberately sharing inflated numbers of deaths in order to sow panic, or “recklessly” casting aspersions on the national government’s handling of epidemics, should be punished as criminal offenses, the judge wrote.

China Targets the Coronavirus, and Farmers Pay a Price
The government’s efforts to stop the outbreak could push the country’s already struggling small businesses over the edge.

KOL Confidential: Why Big Monster Holds The Key to Chinese Gen-Z Sneaker Fans
KOL Confidential reports on the world of China’s luxury and streetwear key opinion leaders. In our new column, we explore how these popular influencers position themselves, how they work with brands, and what the future of influencing means to Chinese young consumers.

US Secretary of State Mike Pompeo calls Chinese Communist Party the ‘central threat of our times’
Pompeo in London for talks with British PM Boris Johnson about Huawei’s inclusion in UK’s 5G network providers    Pompeo restates US stand that Huawei systems could transfer national security information to Chinese intelligence agencies

US persecution of ethnic-Chinese scientists will only benefit Beijing
Political paranoia and anti-Chinese racism are pushing some of America’s best scientific minds into the arms of China

Alain Gillard
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