China Press Review – July 2, 2019

Press review

Trade truce is a win-win – but it’s probably a temporary calm before the next storm
Latest ceasefire agreed by Donald Trump and Xi Jinping should be welcomed, since an all-out trade war would spell disaster for the global economy But US president’s tough policy on China is gaining support at home, and Beijing is unlikely to ever agree to overhaul its trade and industrial policy
www.scmp.com

US-China trade truce ‘better than expected’ but issues remain, says governor of Chinese central bank
Yi Gang, of the People’s Bank of China, was speaking at an event in Helsinki organised by the Bank of Finland He said he will remain cautious, but thinks the world’s two largest economies can solve their problems ‘one by one’
www.scmp.com

China and the US need new rules of engagement, not just a trade deal
Any agreement reached in renewed talks between the two is likely to be short-lived, as the cooperation that once underpinned deeper economic integration has been replaced by outright rivalry. The relationship must be redefined
www.scmp.com

US businesses relieved at outcome of Donald Trump-Xi G20 meeting, but note that major trade issues still loom
Tech companies, which are among those most directly affected by tariffs and Huawei restrictions, are quick to welcome the temporary truce ‘It’s not about a deal. It’s about finding a reasonable process moving forward,’ an analyst says
www.scmp.com

Here’s how American chip makers pressed Trump’s administration to ease US export controls for Huawei Technologies
In multiple high-level meetings and a letter to the Commerce Department, the companies argued for targeted action against Huawei instead of the blanket ban the Trump administration imposed in May The Semiconductor Industry Association (SIA) told the Trump administration that its sanctions against Huawei will make them appear to be undependable partners, which will put them at a severe disadvantage globally
www.scmp.com

Trade War: America Is Trying To Turn China Into Another Japan
America is trying to turn China into another Japan. When it comes to trade relations between the two sides, that is. Washington wants to be in control of US-China trade. The same way it wanted to be in control of the US-Japan trade back in the 1980s. That’s has been obvious from the very beginning of the trade negotiations, as was written previously here. But it became more obvious after the breaking down of the negotiations back in May.
www.forbes.com

Game, Set and Match, China?
So what, you wonder? That’s hardly a surrender, just a brief lull — a pause before hostilities re-commence? No. This is a moment of far more significance and one that many in the West do not fully appreciate.

Game, Set and Match, China?

Global trade will ‘find a way’ to weather US-China tensions, says CEO
The volume of goods traded worldwide grew 3.9% in 2018 — when the U.S.-China tariff fight started — down from 5.6% the previous year, according to the International Monetary Fund. But shipments of goods in and out of China have largely been “unabated,” says Christian Lanng, chief executive and co-founder of Tradeshift, a business commerce platform. Lanng says given that “it took around 30 years to establish the global supply chains” that are up and running currently, it’ll take “a lot longer” than one year to unwind those network.
www.cnbc.com

The end of “Chimerica”
The question, then, is how to protect European sovereignty in the face of US secondary sanctions, Chinese investments, and other external sources of coercion. The answer isn’t obvious. But if Europe succeeds, it could become a coequal power in a tripolar world, rather than merely a pawn in a game played by Trump and Xi.
www.neweurope.eu/article/the-end-of-chimerica/

China keeps global tech leadership firmly in sight
China has toned down any reference to its MIC25 plan of seeking global technological supremacy in a number of core industries. But a new Merics study points out the Asian giant hasn’t moved an inch away from its quest
www.dw.com

How US-trained telecoms entrepreneur Bill Huang turned to China for a wireless technology America couldn’t offer
‘There’s no need for a confrontation in technology because science has no borders,’ says the founder of CloudMinds Huang has watched from up close as the US gradually descended from its telecoms supremacy and China caught up
www.scmp.com

Germany’s largest retailer DM-Drogerie Markt adopts Alipay
Dm-Drogerie Markt, Germany’s largest retailer by revenue, is adding mobile-payments and lifestyle app Alipay to draw business from the increasing number of Chinese travelers heading overseas for both business and holiday.
www.alizila.com

Chinese e-bike startup zips into space created by new regulations
Star Drive, a Chinese electric bicycle startup founded in 2016, is poised to grab market share from leading brands under new safety technology standards imposed by Beijing this year. The company recently unveiled a new product — called the Jike. King — which took two years and several million dollars to develop. The bike is scheduled to go on sale at the end of June in a Chinese market where 250 million electric bicycles are already owned.
asia.nikkei.com

Want to Buy a Car? China’s Got a Deal for You
China’s car sales and output have fallen dramatically every month since July 2018. Inventories are piling up, especially for autos that don’t comply with emissions regulations, which will kick in next month for a large part of the country.
news.yahoo.com

Volkswagen says 50% of China sales will be NEVs by 2035
By 2035 half of Volkswagen’s sales in China will be new energy vehicles (NEVs), CEO Herbert Diess told a conference in Boao, China, on Tuesday, according to a company statement.
news.yahoo.com

How the Baoshang Bank takeover triggered a confidence crisis in small financial institutions and created a cash crunch in China
Since May, when the tiny Baotou-based bank prompted regulatory intervention, bigger financial institutions have had reason to question whether smaller counterparts are worth the risk
www.scmp.com

China says to make timely use of RRR cuts to support small firms
China will make timely use of reserve requirement ratio (RRR) cuts and other financing tools to support small and private firms, Premier Li Keqiang said on Tuesday. China will significantly lower real financing costs for small firms, with a 1 percentage point cut this year targeted, Li said at the World Economic Forum in the northeastern Chinese port city of Dalian.
www.reuters.com

China’s economy accelerates over past 70 years
China’s economy has accelerated over the past seven decades, with gross domestic product rising at an average annual rate of 8.1 percent, according to a report from the National Bureau of Statistics. China’s GDP hit 90.03 trillion yuan (about 13.14 trillion U.S. dollars) in 2018, accounting for 16 percent of the world’s total. This posed a sharp contrast to the country’s economy in 1952 when its GDP was only 67.9 billion yuan.
www.xinhuanet.com

Wealthy financial markets must start to pay their way to help the poor, and a global ‘Robin Hood’ tax is the way to do so
Multiplier effects from increased investment and faster growth could be enormous for the industrial nations, especially China, where so much of the economy is export-dependent. China’s financial markets could be a pivotal part of a universal FTT plan, which could be a further step towards the country’s closer integration into the global financial system. In an age of enlightenment, financial markets need to think about making the world a better place and sharing their wealth as far and wide as humanely possible
www.scmp.com

The Trash Rules Separating Generations As Well As Waste
As Shanghai implements new trash-sorting regulations citywide, young residents are raising a stink.
www.sixthtone.com

Beer giant AB InBev seeks US$9.8 billion from Hong Kong listing of Budweiser Asia in world’s largest IPO of the year
Budweiser Brewing Company APAC, which owns more than 50 beer brands, is selling 1.6 billion primary shares at between HK$40 and HK$47 The deal will be a welcome boost to Hong Kong, which is lagging behind the New York Stock Exchange and Nasdaq in terms of IPOs this year
www.scmp.com

Tmall upgrades shopping experience with new flagship stores
Tmall has given brands a sneak peek into its next generation of flagship stores.
www.alizila.com

US Launches New Round of Exclusion Process for Chinese Imports
Both US and China have imposed additional tariffs on each other’s imports in the course of their ongoing trade war. However, both countries have put in place a tariff exclusion process to exclude certain products from additional tariffs.
www.china-briefing.com

Open Government Developments in China: Implications for US Businesses
The People’s Republic of China continues to modernize the Chinese regulatory state through its open government project, even as the Chinese Communist Party (CCP) asserts comprehensive leadership and tightens political and social controls under General Secretary Xi Jinping.

Open Government Developments in China: Implications for US Businesses

Consumer stocks in Hong Kong are hot, but investors might be wise to let some cool off to avoid getting burned, experts say
9 consumer stocks have shot up by more than 50 per cent this year But a bad report can send them plummeting, like what happened to Vitasoy
www.scmp.com

Hong Kong’s dollar strengthens toward higher end of trading band against US dollar as interbank rate rises
The Hong Kong dollar strengthened by as much as 0.18 per cent to HK$7.7995 per US dollar One-month Hong Kong dollar Hibor was at 2.49 per cent on Tuesday and the three-month rate was 2.44 per cent
www.scmp.com

The next Google in biotech: will it be Chinese?
Can the world benefit from the pace of Chinese biotech without veering into ethical and regulatory grey zones? In this panel discussion at the World Economic Forum’s Annual Meeting of the New Champions in Dalian, China, which got underway 1 July, ethicists and biotech CEOs attempted to plot the way forward.
www.weforum.org

Multinational firms fall in love with the flexibility offered by co-working spaces
Flexible workspaces allow multinational companies to move their staff freely without having to invest in additional branch offices. Co-working workspaces across Hong Kong will rise from the current 2.8 per cent of the grade A office market to 3.5 per cent next year
www.scmp.com

Europe’s 5G roll-out is being delayed by trade war, Huawei pressure and security reviews, says Tele2 CEO
Tele2, Sweden’s second-largest telecoms company, has been delaying deals with equipment suppliers
www.scmp.com

Tech war with the US is spurring Chinese firms to develop their own chips, says venture capitalist
“Huge amounts of capital and talent are going to be thrown at building self-reliance and establishing a kind of parallel ecosystem here without dependence on U.S. chips, operating systems,” said Ben Harburg, managing partner of MSA Capital, a Beijing-based venture capital firm. A homegrown Chinese semiconductor industry will likely hurt American chip makers as China will aggressively push their chips not just domestically but to other markets, said Harburg.
www.cnbc.com

Chinese builders face a tough choice: sacrifice profit now to generate cash or wait for better times
Increasingly, developers face hard trade-off: to sell homes cheaply now or to wait for an easing of price controls and credit lines The huge discounts involved have been drawing hoards of potential buyers, who have in turn shunned more expensive lived-in homes
www.scmp.com

China pledges to strengthen climate plan by 2020
China has made its clearest signal yet of an intention to ramp up climate action, pledging to increase its climate targets by 2020.

China pledges to strengthen climate plan by 2020

China’s Shandong province plans further coal usage cuts over next five years
China’s eastern province of Shandong aims to cut its coal consumption by 50 million tonnes in five years, the provincial government said in a statement on Tuesday, to reduce greenhouse gas emissions and upgrade its energy structure.
www.reuters.com

Greening the Belt and Road is essential to our climate’s future
To facilitate the implementation of the principles and build capacity for green investment, a GIP Secretariat has been established, with one office in Beijing and one office in London. The Secretariat will organize knowledge-sharing of best practices, develop tools for managing environmental and climate risks, produce case studies on green investments and launch a green project database for the Belt and Road region. The database should help bridge the information gap between financiers and project owners, create business opportunities among signatories and other stakeholders, and improve the transparency of BRI investments.
www.weforum.org

How Africa Can Benefit From China’s Belt and Road Initiative
The extension of the Belt and Road Initiative (BRI) of the People’s Republic of China to Africa could be viewed as an afterthought. The BRI, which launched in Kazakhstan and Indonesia in 2013, seemed to be “Asia first” in outlook. Speaking about the initiative in 2014, Chinese President Xi Jinping, said: “First, we should focus on Asian countries and realize connectivity in Asia first. The Belt and Road both trace their origins to Asia … It is natural that we focus our attention on connectivity between Asian countries and strive to expand our common interest.
worldview.stratfor.com

Did Duterte’s detente with Beijing sink with a Philippine fishing boat in the South China Sea?
The Philippine president might have to take a tougher stand against China if a similar incident happens again, analyst says
www.scmp.com

Fear of ‘Chinafication’ spurs Hong Kong’s youth to protest
Turmoil in Hong Kong grew with protesters storming the legislative building on Monday, as fears that the mainland could swallow the city economically, politically and culturally boil over.
asia.nikkei.com

Donald Trump says he spoke ‘briefly’ about Hong Kong protests with Xi Jinping during G20
Donald Trump says ‘most people want democracy’, after revealing that he spoke about protests in Hong Kong with Xi Jinping ‘Hong Kong’s success is predicated on its rule of law and respect for fundamental freedoms,’ a State Department spokesperson said, urging an end to violence
www.scmp.com

Hong Kong protest: China says violent demonstrations ‘totally intolerable’
Beijing’s liaison office says storming of parliament is ‘an extreme challenge’ to the rule of law
www.theguardian.com

British PM hopeful Jeremy Hunt urges Xi Jinping to keep Hong Kong’s freedoms
Foreign secretary shows sympathy for protesters’ cause after storming of legislature building Sino-British Joint Declaration remains effective, guaranteeing a degree of autonomy for Hong Kong, Hunt says
www.scmp.com

To win the ‘battle for Hong Kong’, Beijing must stop treating it as just another Chinese city
Hongkongers will not stand for the routine style of mainland governance. There is enough flexibility in the ‘one country, two systems’ model for peaceful relations, as long as the central government can loosen its grip
www.scmp.com

Hong Kong protests: China says protesters ‘trample rule of law’
China has accused protesters who vandalised Hong Kong’s parliament on Monday of “serious illegal actions” that “trample on the rule of law”
www.bbc.com

For China, a growing conundrum: What to do with Hong Kong?
Chinese state media and officials took a hard line against the protests, which have ballooned into calls for more autonomy and democratic guarantees for Hong Kong. The Global Times, a Chinese Communist Party newspaper, said protesters acted “out of blind arrogance and rage” and “showed a complete disregard for law and order.”
www.newstimes.com

China tips supersonic civil aircraft by 2035
Project is among 20 key technical problems Beijing is striving to resolve China hopes to launch a prototype of a supersonic civil aircraft by 2035, a senior engineer at the Chinese Aeronautical Establishment under the state-owned Aviation Industry of China, said in a Global Times report.
www.asiatimes.com

Cultural Chinese Strengths That We Can Use
Every country has certain cultural strengths. China is a successful culture that has been the strongest culture in the world at various times in world history. What do they have that we can make use of in working here in China? Let’s talk about three.

Cultural Chinese Strengths That We Can Use

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