China Press Review – July 5, 2019

Press review

After the G20 trade truce, China and the US need clearer rules and more engagement to get relations back on track
China should address American concerns on investment and forge better non-governmental and state-level ties in the US, while each side should encourage more study, travel and work in the other country Better data would also give a more balanced picture of trade

China’s academics join calls for reform and opening up as US trade war pressure looks set to continue
Prescriptions for change are being publicly suggested by Chinese experts as trade conflicts with the West appear set to continue Pushing ahead with reform considered crucial as US tariff war pushes investors to relocate supply chains away from China

US-China trade truce increases pressure at home for both Trump, Xi to cut a deal, analysts say
US President Donald Trump is entering the 2020 election cycle, with pressure to stabilise the economic environment Chinese counterpart Xi Jinping can also not seen to be weak when signing off on a deal after the pair agreed a temporary truce last weekend at the G20 summit in Japan

China: Too soon to close a deal
At face value, President Trump and President Xi’s side meeting at G20 was positive, but we’re not that optimistic. The differences between the two sides indicate the trade and technology war is quite far from being resolved, instead the duo seem to be leveraging the meeting to show they have the upper hand in future negotiations

podcast : A year of the US-China trade war
The trade war between China and the United States marks its one-year anniversary on June 6, 2019. We take a look at the milestone moments over the 12 months since US President Donald Trump first placed tariffs on Xi Jinping’s China.

US-China M&A: Reason For Optimism
As political and trade relations between the world’s two largest economies have deteriorated over the past year or so, cross-border mergers and acquisitions (M&A) activity between the United States and China has declined as a result. Nonetheless, China remained a top 10 foreign acquirer of U.S. assets in 2018, as measured by transaction value, with $9 billion in total spread across 48 announced transactions, according to Dealogic.

China won’t buy US agricultural products if Americans ‘flip-flop’ in trade talks – state media
Commentary suggests commitment to buy agricultural products that was announced by Donald Trump is not unconditional Beijing also wants to see if Washington eases supply restrictions on Huawei before it commits to buying American soybeans, source says

Trump Is Losing His Trade Wars
The pain is real, but the coercion isn’t.

Samsung expects profits will halve in Q2 amid Huawei tensions
Samsung Electronics expects its second-quarter operating profit to fall 56% year-on-year to KRW 6.5 trillion (around $5.55 billion), according to earnings guidance released by the company on Friday. The South Korean electronics giant said its revenue would likely fall 4% quarter-on-quarter to KRW 56 trillion. It will release a finalized earnings report later this month. The lowered earnings guidance came as global chip prices fell due to a supply glut and US sanctions on China’s Huawei, a major Samsung client, analysts said.

Briefing: Samsung expects profits will halve in Q2 amid Huawei tensions

Shenzhen forms alliance to advance industrial internet technologies
Chinese tech giants including Huawei, China Unicom, Foxconn, and Tencent have joined the the Industrial Internet Union led by Shenzhen’s Information Technology Industrial Association. Shenzhen, often referred to as China’s high-tech hub, aims to drive the development of new technologies and innovative business models for the industrial internet era. Part of its focus will be boosting the adoption of consumer and industrial applications that leverage next-generation wireless networks, big data, AI, and the internet of things (IoT).

Briefing: Shenzhen forms alliance to advance industrial internet technologies

Vodafone launches 5G in UK with ‘non-core’ Huawei gear
UK mobile operator Vodafone switched on its 5G network in several cities across the country on Wednesday, using Huawei equipment in non-core parts of its network infrastructure for the rollout. Both Vodafone and its UK rival EE have launched their 5G networks which use Huawei gear on peripheral parts. Vodafone is launching the 5G service with Xiaomi Mi Mix 3 and Samsung S10 5G handsets and a 5G router, but the carrier has pulled 5G handsets made by Huawei from its launch line-up because of uncertainty about support by Google’s Android.

Briefing: Vodafone launches 5G in UK with ‘non-core’ Huawei gear

Ren Zhengfei thinks industrial IoT is next in conflict with US
Huawei founder Ren Zhenfei expects conflict between the Shenzhen-based telecom giant and the US will continue, and that it will involve industrial applications of the internet of things (IoT). Huawei is trying to quickly develop the hardware and software necessary for automating factory floors, in an effort to set the standard for the industry. “They’ll fight IoT next. Let them fight,” Zhengfei said.

Briefing: Ren Zhengfei thinks industrial IoT is next in conflict with US

Limiting Huawei via national security
Looking back at how the US has used national security as a means to protect its domestic industries can provide a better understanding of the current predicament facing Huawei in the US, according to the CEO of the company behind the RISE conference that will take place in Hong Kong next week.

Handshake: Limiting Huawei via national security

Donald Trump wants a weaker US dollar. But that’s just bad economics
Trump has accused Europe and China of devaluing their currencies to gain trade advantages and claims the Fed is keeping interest rates too high. But, whether he likes it or not, a strong greenback is also a sign of a resilient US economy

Breakneck growth in China’s credit-card debt since 2012 raises worries about a potential bust, says ratings agency S&P
Credit-card debt has grown more than sixfold since 2012, according to S&P Increase mirrors similar booms in Hong Kong, Korea and Taiwan that ended badly

Stocks Blog: Hang Seng, Shanghai post weekly gains off of trade war truce
UBS wealth management unit sees 10 per cent upside in MSCI China Index in second half of year Future Land Development — whose billionaire chairman was dismissed after being detained by police — continues its slide

Trade war may scuttle China’s interest to share ‘state secret’ company audit reports with US
China now willing to share audit work on mainland firms with Hong Kong regulator, which will help improve financial transparency Beijing sees much of the information in the audit reports as state secrets

Didi, state-owned firms set up EV joint venture in southern China
hailing giant Didi and two state-owned firms have set up an electric vehicle services joint venture (JV) in the southern island province of Hainan. The new company, which also includes a subsidiary of China Southern Power Grid (CSPG) and an investment branch of the Hainan government as partners, will lease and sell electric vehicles (EV), and manage charging infrastructure.

Briefing: Didi, state-owned firms set up EV joint venture in southern China

Ofo’s final fight Ofo flew too close to the sun
The model of spreading bikes around cities and allowing users to unlock the bikes with their phones for an upfront deposit and 25 cents per ride at first was incredibly attractive. Financial analyses of the firm “raised the fighting spirits of investors” who worried that if they weren’t able to wriggle their way into Ofo’s cap table, “everyone would know that they weren’t top-tier funds.” On the WeChat public account GQ Report, Wei Shijie examines the history of the two-wheeled Icarus, concluding that what really doomed the company was its attempt to play Tencent and Alibaba off against each other

CHINA VOICES | Ofo’s final fight

3 Top Luxury Apps for the Chinese HNWIs
The convenience of cutting-edge technology can no longer be ignored. In modern society, very few now live without high-tech gadgets and tools, while the rest have given in to unprecedented digitalization. In an age of accelerated digital noise, high-end consumers crave smoother processes, comfort, and silence. That’s where luxury apps come in. They provide information on quality services, premium products, the latest high-tech gadgets, and the best experiences while offering simplified processes and the comfort and quiet that HNWIs demand. According to Statista, China is the world’s biggest social network market with 673.5 million users, although the China Internet Network Information Center (CNNIC) estimates that the country reaches over 800 million internet users. Social media and the internet are vital parts of the Chinese consumer’s life, so it shouldn’t come as a surprise that apps have become a basic extension of their existence.

3 Top Luxury Apps for the Chinese HNWIs

Little Red Book Tightens Influencer Policy to Spur Growth
Red went online in 2013 as a platform where Chinese travelers could share overseas shopping tips and discover niche brands. In just six years, it’s developed into a social e-commerce giant. Little Red Book, the Chinese social e-commerce giant also known as RED, recently sent a memo to content creators announcing new qualification criteria for influencers, and the message was clear: rise to Red’s new quality standards or forfeit your privilege. The newly implemented changes, perhaps the most dramatic policy shift in Red’s 6-year history, is expected to impact over 3/4 of the site’s influencers, but as with all changes, there are new opportunities for influencers and brands that know where to look.

Little Red Book Tightens Influencer Policy to Spur Growth

Alibaba, Huawei , and Tencent among the top 15 DBMS market share ranks 2018
A Gartner research shows Database Management Systems (DBMS) cloud services are already $10.4 billion of the $46.1 billion DBMS market in 2018. And, the overall DBMS Market grew at 18.4% from 2017 to 2018 – its best growth in over a decade. Cloud DBMS accounted for 68% of that growth.

Amazon calls time on paper book sales in China
E-commerce giant Amazon has halted official sales of paper books in China while the platform’s third party sellers will also go offline soon. The China unit will only handle cross-border e-commerce and cloud via Amazon Web Service from July 18, according to a statement. E-book sales will not be affected by the adjustment.

Briefing: Amazon calls time on paper book sales in China

Thousands protest in central China over waste incineration plant
Riot police deployed after week of unrest over proposed plant next to residential areas – echoing recent years’ protests against incinerators elsewhere in the country District government urges people to ignore rumours and says plant’s location has yet to be finalised

Image recognition, mini apps, QR codes: how China uses tech to sort its waste
China’s war on garbage is as digitally savvy as the country itself. Think QR codes attached to trash bags that allow a municipal government to trace exactly where its trash comes from.

Image recognition, mini apps, QR codes: how China uses tech to sort its waste

JD launches services for enterprises seeking help with trash
JD Business, an arm of the retail giant which provides enterprise procurement services, is rolling out customized solutions for companies of all sizes in adapting to the trash-sorting program, newly mandatory in Shanghai as of July 1. The enterprise procurement channel offers trash-sorting supplies including garbage bins and bags, as well as custom services such as labels or tags to assist with trash sorting.

Briefing: JD launches services for enterprises seeking help with trash

Alipay’s Payment Face Scanners Add Beautifying Filters in China
E-wallets and mobile payment solutions have proliferated in China for quite some time now, reaching to a point where consumers can simply have their faces scanned to verify payments. However, even with such high tech services, users are still not quite happy with the facial recognition systems now in place. According to a recent poll from one of China’s news portals Sina Technology, 60 percent of respondents feel that they look uglier in the face scan cameras than their own cameras when taking selfies. In response to this, Alibaba‘s e-wallet department Alipay has launched all-new face scanners with beautifying technology

BYD and ADL deliver 37 electric buses in London
Chinese electric vehicle (EV) company BYD, which partnered with British manufacturer Alexander Dennis Limited (ADL) in the UK, delivered five double decker electric buses to London bus operator Metroline earlier this week of the total 37 purchased. The buses will serve Route 43 which runs nine miles from Friern Barnet to London Bridge. The fully electric, emission-free BYD ADL Enviro400EV bus model is assembled at ADL’s facility in Britain while the powered chassis is built at BYD’s plant in Hungary.

Briefing: BYD and ADL deliver 37 electric buses in London

China’s tech sector faces ‘hangover after the party’, with trade war and economic slowdown hitting employment
Tech sector demand for new hires down 25 per cent in first quarter from a year earlier, while jobs seekers up 37 per cent, meaning demand outpaces supply Baidu, Tencent and are all ‘optimising’ their workforces, as analysts point to a sector in decline after years of expanding at an unrealistic pace

Russia, China, Set Up US$1 Billion Technology Innovation Fund
Maxim Oreshkin, Russia’s Economic Development Minister, and Wang Zhigang, China’s Science and Technology Minister have signed an MoU to create a US$1 billion Research and Technology Innovation Fund.

China’s top steel mills create group to probe surging iron ore prices: document
China’s leading steel companies have formed a group to investigate whether “non-market factors” are causing a record surge in iron ore prices and have called on the government to maintain market stability

Preparing Foreign Investors For Procurement In China Belt & Road Projects
China’s New 2020 Foreign Investment Law Gives Equal Rights To Foreign Investors In Procurement. But What Are The Procedural Steps To Enable Participation?

China and the East Mediterranean Sea disputes
The sustainability of China’s Belt and Road Initiative in the Mediterranean will depend on whether China can help defuse tensions in the Mediterranean while respecting each country’s domestic concerns

IMF Won’t Stop China From Turning Pakistan Into The Next Sri Lanka
A $6 billion loan approved from the International Monetary Fund this week will ease Pakistan’s debt problems, for now. But it won’t stop China from turning the country into the next Sri Lanka

Vast Chinese Loans Pose Risks to Developing World
China is the largest creditor in the world, funding infrastructure projects in the developing world in exchange for access to raw materials. A new study shows that the risk of a new debt crisis is significant.

The Strengthening Anti-China Bonds Between Hong Kong and Taiwan
Hong Kong and Taiwan long had a relationship built around trade and tourism. But as China clamps down in Hong Kong, ties between the pair are strengthening.

Hong Kong-listed Future Land chairman’s downfall once again highlights ‘key man risk’ for investors in China
Latest scandal shows how investors end up paying a heavy price for the mistakes committed by company executives About 13 per cent of listed Chinese businesses, or close to 400 companies, have a shareholder who owns a stake of 50 per cent or more, according to data compiled by Bloomberg

Rights under threat: how China is bringing Hong Kong to heel
Beijing has chipped away at the city’s autonomy for 22 years – and protests reflect growing anger

China, Britain wage war of words over Hong Kong
Britain insists that a 1984 agreement between London and Beijing ensuring Hong Kong would maintain its separate political, economic and social institutions until 2047 remains a binding document. Chinese officials in recent years have suggested they no longer consider themselves bound by the pact, although they have been reluctant to completely undermine those institutions that have made Hong Kong a magnet for global business with thousands of foreign companies and residents.

China Real Estate Developer’s Fortune Plunges $2 Billion After Detention
One of China’s richest real developers has lost $2 billion of his fortune in the past two days following word of his detention in Shanghai.

12 years behind bars for corrupt former boss of Chinese warship builder CSIC
Sun Bo, who headed up the company overseeing the construction of the country’s aircraft carriers, gets lighter sentence for volunteering information about other crimes

Hong Kong protests are growing into yet another thorn in relations between China and Britain
London regards strong economic ties with Beijing as vital for its post-Brexit future, but China’s ire over the support for the protests by the two candidates seeking to be Britain’s next leader underlines the difficulty of the task

Regulator revokes publisher’s license for game that mocked Chinese president
The Chinese publisher for an indie game made by a Taiwanese studio that included content mocking Chinese President Xi Jinping has recently lost its business license, according to documents posted on Twitter.

Regulator revokes publisher’s license for game that mocked Chinese president

China is ramping up its media abroad – and not just in Chinese
Increasingly, the audiences that countries are targeting with state-approved messaging aren’t their own citizens, but ones abroad – making it all the more complicated to figure out whose “truth” we’re looking at.

High-powered talks between US, Taiwanese defence officials ‘could become the new normal’
Pentagon wants a ‘more substantive role in arms sales’, National Committee on American Foreign Policy says after annual conference in New York Meeting in May between Taiwan’s national security chief David Lee and White House national security adviser John Bolton may be sign of things to come

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