China Press Review – July 5, 2018

Press review

Collateral damage: in a US-China trade war, Europe could be the big loser
As a net exporter, the EU is likely to suffer during any slowdown in global trade, particularly if China targets products like BMW and Mercedes cars produced in the US

Chinese Premier Li Keqiang proposes greater cooperation with EU as both seek to counter US trade threats
Premier stresses mutual interest in telephone conversation with European Commission President Jean-Claude Juncker ahead of this month’s summit

Donald Trump’s trade war is worrying Japanese car-parts giant Denso as it plans China expansion
Denso chief Yasushi Matsui says the threat of US tariffs of as much as 25 per cent and reciprocal levies from trade partners are a ‘grave concern’

podcast video : US-China trade war: Why you should care
The world’s two largest economies are at each other’s throats, but what does a trade war between the US and China mean for the rest of the world, and for your pocket?

No one wants a trade war: China
No one wants a trade war, China’s foreign ministry said on Thursday, adding that the country was not provoking one, ahead of the start date of July 6 set by the United States to levy tariffs on $34 billion of Chinese imports

Here’s Where China Stands as Tariff Hour Nears
If U.S. goes ahead it will hurt itself, says Commerce Ministry China vows ‘immediate’ retaliation if U.S. tariffs applied

The Latest: China bravado belies worries over US trade row

China tries to ease retaliation fears with pledges to help foreign businesses weather trade war
China will hit back with tariffs but harassing US firms not on the cards, commerce ministry signals

How the looming US trade war and China’s rising labour costs are a boon to Vietnam’s economy
Although US-China trade tension could impair growth in Southeast Asia, the region is siphoning output away from China, where rising wages have driven up costs

podcast video : China Economy ‘So Addicted to Credit,’ Autonomous Research’s Chu Says
Charlene Chu, a partner at Autonomous Research in Hong Kong, talks about the trade spat between the U.S. and China, and the implications for the world’s second-largest economy, its stock market and policies. She speaks with David Ingles and Haidi Lun on “Bloomberg Markets: Asia.”

Caixin China PMI Surveys Signal Steady Economic Growth But Rising Prices
The steady expansion of China’s economy was sustained at the end of the second quarter, according to the latest Caixin PMI surveys. However, the upturn was marred by sharper inflationary pressures, that partly reflected supply bottlenecks linked to ongoing output restrictions on heavy-polluting industries.

China says to deepen financial reforms, sees no sharp yuan fall
China will deepen financial sector reforms and fend off major risks in the economy, the banking and insurance regulator said on Thursday.

How a sliding yuan and volatile stock market have put China’s central bank in the hot seat
Nicholas Spiro says the US Federal Reserve seems determined to go ahead with monetary tightening but a sharp decline in China’s yuan might provoke a pause, as it did in 2015

Huawei founder bets Sino-US trade war won’t happen – but could he be wrong?
Ren Zhengfei, who established Huawei in 1987 and serves as its chief executive, expects the US and China to eventually reach a compromise on their trade dispute

HNA chairman Wang Jian’s death may accelerate firm’s sale of overseas assets, say analysts
Wang’s shares in the Chinese conglomerate likely to be reallocated, but main concern is the loss of a leader who set the firm’s business strategy

Troubled HNA pledges luxury house on Hong Kong’s Victoria Peak for loan as it tries to repay debts
The once-acquisitive Chinese conglomerate is struggling to find a buyer for the property at the ultra-private Twelve Peaks development, according to a source

Shanghai aims to raise US$15 billion in funds to gain an upper hand in AI development
The city government is looking at how to draw investors to raise capital and talent to manage the funds in the quest to become a tech hub

China targets vehicle pollution with pledge to deliver 30 per cent more goods by rail by 2020
Rail’s share rose only 0.1 per cent last year as vehicles continued to dominate freight and represent the primary source of pollution in many cities

Chinese P2P Lending Platform Furongbao Receives $121M Strategic Investment
Chinese peer-to-peer lending platform Furongbao announced that it has received a RMB800 million (US$120.6 million) series B round, strategic investment from a controlling shareholder of Wanjiale Gas Appliances, a Chinese household appliances manufacturer.

Alibaba, Tencent Pour Cash Into Chinese Media Empire
Support from major internet companies signals further growth for China Media Capital

New Alibaba concept store teases future of fashion retail
Alibaba Group debuted its first “FashionAI” concept store on Wednesday, demonstrating a stress-free way to shop with the help of artificial intelligence.

Chinese engineering firm told to suspend US$20 billion East Coast Railway Link in Malaysia
Owner puts project on ice, raising uncertainty about future of key part of China-funded infrastructure development plan

Loan from Chinese bank for Malaysian pipeline projects may have been used to pay 1MDB dues
The projects to build two pipelines were signed in 2016 by the administration of former Malaysian premier Najib Razak, who courted Chinese investment but was ousted in an election in May

Shanghai cracks down on home purchases by companies in latest bid to curb prices
The new rules close a loophole whereby residents could avoid other property purchase restrictions by setting up a company to buy a home

Chinese internet users are changing the landscape for paid content with top-grossing video to chat apps
China’s biggest tech players are gaining confidence that the public will pay for content as they ramp up efforts to license overseas content in recent years

The wealthy Chinese whose French dream turned into a nightmare
The allure of France’s vineyards and chateaux is strong for China’s super-rich, but in some cases things have gone badly wrong for these investors

In China, Women Face a Balancing Act
Many Chinese women are being forced to choose between having a family and professional success.

Vineyard seizures highlight French worries about Chinese investments
French authorities have seized 10 wine chateaux owned by Chinese conglomerate Haichang Group as part of an investigation into alleged illegal financial activities. A new law regarding agricultural property is in the works and is scheduled to be discussed in parliament early next year. Legislators must try to reconcile demands from farmers’ unions to subject agricultural purchases to state control — as is the case with strategic sectors like defense — with laws on property rights and free enterprise. Not everyone in southern France has a hostile view to foreign investors. In the Bordeaux region, inhabitants have come to see the benefits of their Chinese neighbors, who are restoring some historic wine mansions and keeping on local staff to maintain a high-quality standard. What is more, wine exports from Bordeaux are showcasing the region to Chinese tourists who could give the local economy another boost.

China’s Xi Jinping warns again graft fight not yet over
Chinese President Xi Jinping has warned again that the country’s fight against deeply ingrained corruption is not yet over, and that the ruling Communist Party faces enormous challenges going forward, state media reported.

A Goal for Luxury Brands: Chinese World Cup Fans
“[Chinese millennials] are becoming big fans of football,” said Guadalupe in an interview with the football industry site Soccerex. “They watch the World Cup, the Premier League, the Champions League, and we try to talk to the younger generation.” But why not also promote the smartwatch to more mature soccer fans? “The older generation is more classical—they only wear classic watches,” Guadalupe explained. “I cannot transform this consumer, so I prefer to talk to the young ones, aged 20 to 25.”

A Goal for Luxury Brands: Chinese World Cup Fans

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