China Press Review – January 7, 2019

Press review

EU-China relations face a bumpy road in the year ahead
An increasing mismatch is opening up between the European Union and China, particularly in the field of technology Just as Europe becomes more restrictive Beijing seeks to lower barriers for hi-tech acquisitions

Inside the US delegation for China trade war talks: Washington’s big guns will be absent
US side will not have Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and top trade adviser Peter Navarro The relatively low-ranking delegation may indicate that this meeting is about laying groundwork for future high-level talks

Trump: Weakness in China economy gives Beijing incentive for trade deal
U.S. President Donald Trump said on Sunday that trade talks with China were going very well and that weakness in the Chinese economy gave Beijing a reason to work toward a deal

podcast : Trump will win the trade war with China, says Gary Shilling
Gary Shilling breaks down why he thinks President Trump has an edge on China in the trade war

‘It could go either way’: China and the United States ready for trade war talks in Beijing
Officials from both sides expected to take stock of commitments, with at least one sign of an offer on the table, insiders say

Xi Jinping’s Taiwan comments likely to scuttle talks, analysts say
A recent speech by the Chinese president used a ‘one-China’ principle that redefined the cross-strait understanding A different emphasis and different interpretation by Beijing and Taipei

Donald Trump set to hold talks with China’s Vice-President Wang Qishan in Davos
High level meeting expected to take place on sidelines of annual World Economic Forum in Switzerland Trade delegation led by US deputy trade representative Jeffrey Gerrish will meet Chinese officials in Beijing on Monday

Fresh round of US-China trade war talks starts in Beijing
Issues such as intellectual property, non-tariff measures and agricultural and industrial purchases reported to be on agenda Leaked pictures show delegates inside commerce ministry at start of two-day talks

China, U.S. want to work together on trade – foreign ministry
China and the United States want to work together on trade, the Chinese foreign ministry said on Monday, as the world’s two largest economies resumed talks in a bid to end their trade disput

Economic worries hang over U.S.-China talks
Officials and business leaders are hoping that meetings in Beijing spur a continued thaw in relations between the economic superpowers.

How China’s worsening economic woes are shattering the dreams of its top graduate students
More than 200 new graduates were ‘fired before hired’ as a medical equipment firm abruptly shrank its recruitment plan Companies are under growing economic stress amid the US-China trade wa

The makeover that defined modern China
Forty years ago, Deng Xiaoping launched pragmatic economic reforms that launched the new China we know today.

U.S. Tech Transfers to China Targeted in New Security Bill
The U.S. hasn’t done enough to counter the use of technology transfers and supply chain infiltration from countries like China, leading to a grave national security risk, according to two U.S. senators.

Chinese companies cool on annual CES Vegas tech show amid trade war and economic uncertainty
The dip in Chinese exhibitors comes amid a 90-day truce in the months-long US-China trade war, which has seen billions of dollars of tariffs slapped on goods Although some Chinese companies are adopting a more cautious approach to CES in 2019, there will nevertheless be a sizeable presence

Apple sell-off no cause for concern says Trump
Weaker iPhone demand in China and fewer phone upgrades elsewhere blamed for stock price fall in the US

To woo China, Apple must learn that it’s not in California any more
Developing markets offer growth: but the firm’s phones must become cheaper and its services must compete with local rivals

Apple and China’s problems show that today’s titans may not rule the world tomorrow
Two of today’s trends seem unstoppable. China’s astounding growth will continue, so the story runs, underwriting its arrival as the second economic superpower. To get a share in that China action, underpinning the entire growth of Asia, is one of the prime economic arguments for Brexit. Abandon sclerotic Europe, embrace the prosperity of Asia – even if it is a world of semi-democracy at best, authoritarian government at worst. It can be guaranteed to grow. Second, the west coast big tech companies, from Facebook to Apple, are the new wonders of the universe. They are the bewilderingly successful face of the informational, data-driven economy whose value continues to soar

Can China walk out of economic difficulties by relying on its old playbook of debt?
China’s National People’s Congress Standing Committee authorities a new wave of infrastructure bond issuance worth US$202 billion ‘ahead of schedule’ A surge in local government debt may complicate Beijing’s long-term goal of reining in financial risks

Taiwan president calls for international support to defend democracy
Taiwan President Tsai Ing-wen called on Saturday for international support to defend the self-ruled island’s democracy and way of life in the face of renewed threats from China.

Taiwan President Tsai Ing-wen open to cross-strait talks, but has some demands for Beijing first
Leader explains her rejection of Xi Jinping’s proposal to start talks on unification based on ‘one country, two systems’

Chinese President Xi Jinping gives army its first order of 2019: be ready for battle
Armed forces must be ready for a ‘comprehensive military struggle from a new starting point’, leader says Central Military Commission issues new guidelines to boost morale based on greater empathy and merit-based promotions

China Has a Dangerous Dollar Debt Addiction
With $1.2 trillion needing to be rolled over this year, the threat of a funding crunch is rising.

Japan outpaces China in race for outbound mergers as trade war, capital controls weigh on deal flow
China was fourth worldwide with US$105.4 billion in deals, according to data provider Dealogic Chinese companies among most active deal makers in Asia outside Japan, according to Mergermarket

Why China’s slowdown is playing second fiddle to America’s volatile economy and markets
Nicholas Spiro says while China is understandably seen as the source of global financial market turmoil, the US economy may have investors more concerned

After Chinese stocks end another year as worst performers globally, mainland investors eye Hong Kong market
For Hong Kong investors, stocks listed in the city remain top investment choice, according to Hong Kong Investment Funds Association survey Hong Kong respondents allocated only 19 per cent of their assets for offshore investment, including 8 per cent for mainland China markets, in 2018

Foreign investment opportunities in China’s emerging industries over the next 40 years
For 40 years China has opened up to the outside world, but its tendency to protect its home-grown industries has, however, stifled foreign investment

Air pollution spike in China’s Henan province blamed on bad weather
Levels of dangerous PM2.5 particles in nine cities up 12 per cent year on year in December Emissions in cities home to several big steel, aluminium and coal-producing districts soared by 107 per cent in November

China’s Anti-pollution Measures Have Backfired
A new study has claimed that China’s efforts to bring down PM 2.5 concentration has, in turn, led to a spike in Ozone pollution

China’s Huawei unveils chip for global big data market
Huawei Technologies Ltd. unveiled a processor chip Monday for data centers and cloud computing in a bid by the biggest global maker of telecom equipment to expand into new markets despite Western warnings the company might be a security risk.

Chinese health product firm Quanjian scandal widens as public anger grows
Company linked to child’s cancer death comes under intense scrutiny Chaotic regulations and a lack of supervision blamed for dubious industry practices

China’s research papers lead the world in cutting-edge tech
China dominates a global ranking of the most-cited research papers published in the 30 hottest technology fields, a development likely to alarm American leadership already leery of its rising Asian rival. Though the U.S. accounted for 3.9 million research papers overall compared with 2.9 million from China, the Asian country produced the largest share in 23 of the 30 fields that drew the most interest, while America took the crown for the remaining seven.

Southeast Asia wary of China’s Belt and Road project, skeptical of U.S. commitment: survey
Southeast Asian countries should be cautious in negotiating with China on its flagship Belt and Road Initiative (BRI) to avoid being trapped in unsustainable debt, 70 percent of respondents said in a policy survey released on Monday

China, US will ‘come up with something’ to defuse trade war, Hong Kong scholar predicts
Vice-ministerial level delegation from the United States in Beijing for two days of face-to-face talks on Monday and Tuesday Lawrence J. Lau ‘confident’ truce agreed between President Xi Jinping and US President Donald Trump will lead to further de-escalation of tensions

As China and US spar over tech, scientists would rather not talk about their talent awards
Chinese researchers facing visa issues and tighter scrutiny in America – especially those who are part of schemes like Beijing’s Thousand Talents Plan Programmes to lure brightest minds to China are now highly sensitive and the US has linked them to forced technology transfers and loss of know-how

China targets heavy polluting diesel trucks with new guidelines on reducing emissions
Environment ministry promises to improve quality of diesel, crack down on low-grade fuel, and reduce overall nitrogen oxide and particulate matter emissions

China house price gains no longer a certainty
SHANGHAI: A rising trend in property values in China is no longer a certainty as “unprecedented” state housing price controls come into effect, state media quoted a central bank adviser as saying on Saturday.

Elon Musk breaks ground on first Tesla factory outside US
Tesla boss Elon Musk has broken ground at a new factory in Shanghai, the electric carmaker’s first manufacturing plant outside the US.

Europeans may see their choice of options as unappealing, but in 2019, the European Union’s cautious fence-sitting may need to come to an end. As the deliberate ambiguity of the “China dream” unfolds, Europeans may be forced to ask themselves if their post-modern “European dream” of shared sovereignty and multilateralism can continue as great power competitive co-existence vies to reshape the contours of the world order. In a supreme act of balance, the concluding performance of the Chinese New Year Gala at the Bozar theatre attempted to combine the traditional Chinese acrobatic talents of a male performer with those of a European-style ballerina who posed in toe shoes on the Chinese acrobat’s head. This dance metaphor of E.U.-China relations had the effect of looking painful as well as dangerous.

How to Negotiate with Chinese Companies: How to Handle “Bluster”
There are two ways to respond, one way better than the other:
Fight fire with fire and punch back with a slew of your own threats.
This method is not terribly effective in the West and it is even less so the case in China. These “bluster” letters are designed to make you run away, but secondarily, they are designed to throw you off your game. Don’t let it. Never let the other side see you sweat.
Play it cool and respond very briefly and without any acrimony by making clear your position and what it will take for you not to follow through on your threat.

China’s population ‘to peak’ in 2029 at 1.44 billion
China’s population will peak in 2029 at 1.44 billion before beginning a period of “unstoppable” decline, a government report says.

Chinese police pull the plug on Dyson hairdryer pirates
Two manufacturing bases raided and 36 people arrested in joint action across southern and eastern China Company made US$1.5 million in sophisticated operation

Will China’s leadership succession after Xi Jinping skip a generation?
The rise of those making up the ‘sixth generation’ of leaders who were expected to follow Xi appears to have lost momentum A younger generation is being tested in provincial positions, gaining the same kind of experience Xi acquired on his route to the top

US warship sails near disputed Paracels in South China Sea as trade talks under way in Beijing
USS McCampbell sailed within 12 nautical miles of the island chain ‘to challenge excessive maritime claims’ But Pacific Fleet say ‘freedom of navigation’ operation was not about any one country or to make political statement

Is China still haunted by century of humiliation?
By Western accounts, China is a country that is easily provoked. Foreign companies doing business in China have to tread cautiously to avoid many cultural mine fields. Crossing political red lines will incur more serious consequences. Last year alone, from Brooklyn Beckham to Marriott International, not to mention D&G, learned their lessons.

China ‘disappeared’ several high-profile people in 2018 and some of them are still missing
From prominent celebrities to the Interpol chief, the world has seen millions of people in China seemingly vanish into thin air over the past few years — and yet the international community has remained largely silent.

Censoring China’s internet, for stability and profit
Thousands of low-wage workers in Chinese “censorship factories” trawl the online world for forbidden content, where even a photo of an empty chair could cause big trouble. For Chinese companies, staying on the safe side of government censors is a matter of life and death. Adding to the burden, authorities demand that companies censor themselves, spurring them to hire thousands of people to police content.

Alain Gillard
Information Officer
Service Asie Pacifique
Place Sainctelette 2
1080 Bruxelles
Tél 02 421 85 09 – Fax 02 421 87 75
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