China Press Review – July 6, 2018

Press review

Trump’s $34bn tariffs on China kick in, sparking all-out trade war
US president threatens further $500bn if Beijing retaliates

China hits retaliation button, launching tariffs as trade war with US starts

Now that the first shots have been fired, what goods will be affected, who will pay the price and what could happen next?

U.S. levies tariffs on $34 billion worth of Chinese imports
“I don’t think this is going to get resolved easily and I think these tariffs are going to hurt the U.S. economy,” said Rufus Yerxa, president of the National Foreign Trade Council, which represents multinationals such as Coca-Cola, Ford and Microsoft.

China lodges tariff case at WTO against the U.S.
China has lodged a case against the United States over slapping import duties to the World Trade Organisation (WTO), its commerce ministry said on Friday.

Conventional wisdom suggests the US has the least to lose from a trade war. But, not so fast …

China fears Europe will ‘stab it in the back’ as trade conflict with US escalates
Foreign minister Wang Yi issues plea amid fear that Brussels will leave Beijing isolated by striking its own deal with US over tariffs

At least China has enough muscle to fight its corners – America’s ‘friends’ may not be so lucky

The Trump Administration Is Behaving Like a Gang of Hoodlums:’ Words Fly as U.S.-China Trade War Begins
Société Générale economists Stephen Gallagher and Yao Wei, quoted in the South China Morning Post regarding the effects on the rest of the world: “One channel of spillovers is via weakened demand from the two largest economies in the world; and the other equally important and likely quicker transmission would be along global value chains.” Edward Alden, senior fellow at the Council on Foreign Relations, quoted in the New York Times: “At the moment, I don’t see how this ends. This is very much in the president’s hands because he’s got advisers that seem divided, some substantively, some tactically. I just don’t think we’ve had any clear signs of the resolution he wants.” Robert Holleyman, Crowell and Moring partner and former Obama trade representative, quoted in India’s Economic Times: “If we don’t find an exit ramp, this will accelerate like a snowball going down a hill.”

Washington, beware the wrath of China’s consumer
There’s a dog that hasn’t barked in the current round of trade tensions between the U.S. and China: Despite the first direct tariffs coming into force Friday, the Chinese consumer has been on her best behavior. That’s somewhat unusual if you consider Beijing’s most recent diplomatic spats with its trading partners.

Why its not in China’s best interests to boycott US products
Experts highlight that many US brands in China are co-managed by local companies. Beijing’s idea of boycotting US brands could hurt the local economy. In addition to the duties, Xi Jinping looks at hampering American companies business on Chinese soil. “No US product sold in China, or a US company investing in China, can be considered safe from retaliation.”–44351.html

Donald Trump is a master manipulator of bias. The trouble is, we go along with it
David Dodwell says the apparently common human tendency to believe we alone see the world as it truly is, without bias or error, can be – and has been – easily manipulated to undermine fact-based policymaking

Trump may pull the trigger on tariffs but China will pick its battles, sources say
Government sources say the country’s leaders want to contain the fallout from the tariffs tit-for-tat to ensure the process of reform and opening up continues

China-US trade dispute turned sour for cherry traders weeks ago, Shanghai dealer says
Customs clearance and checking process that used to take hours now takes weeks, businessman says

American Companies in China without a WFOE and the Impact of Donald Trump and US Tariffs and Why Hong Kong is not the Answer

China WFOE lawyerIf you are an American company doing business in China, you don’t need me to tell you how so many things have changed for you over the last year or so, and so I won’t. But I do need to tell you — somewhat urgently — that if you are operating in China without a legal Chinese entity, you need to stop.

American Companies in China without a WFOE and the Impact of Donald Trump and US Tariffs and Why Hong Kong is not the Answer

A major factor behind the US-China trade war is winning at a $12 trillion technology
One of the key reasons behind the U.S.’s trade war with China is the desire to get ahead in 5G. The technology is seen as a backbone from everything from driverless cars to future cities. America and China are in a race to become the leader in 5G and set the standards that will define the next generation of mobile internet.

Wallonia wants to produce 50,000 electric cars per year
Chinese investors hurry to Wallonia this week … After the visit by Jack Ma ] the head of the Chinese e-commerce giant, received a great fanfare by Prime Minister Charles Michel (MR) in Brussels on Tuesday for confirm a “big investment” in a global logistics center in Liège, emissaries Chinese Thunder Power negotiates the greatest possible beauty since the beginning of the week the last lines of the contract that allow Wallonia to host a production line of electric cars on the former Caterpillar site in Gosselies. Based in Hong Kong Thunder Power is not somewhere else in Europe elsewhere. It already has a research and development center in Italy, in Milan. In China, in addition to the Guangzhou side, he also has a battery assembly plant in Taiwan

Wallonia wants to produce 50,000 electric cars per year

Official lauds tenacity and potential of China’s economy
CBIRC chairman Guo Shuqing says most of China’s trade surplus is realized by private enterprises and joint ventures

China’s private sector should not suffer for SOEs’ revival
Government economic intervention and shadow banking clampdown have helped state companies

Alibaba on Friday kicked off a weeklong promotion of Malaysian products and services, looking to expose the Southeast Asian country’s small- and medium-sized enterprises to Chinese consumers.

China Produces More Cement Than The Rest Of The World Combined [Infographic]
China is the world’s king of concrete. One particularly outrageous statistic from Bill Gates’ blog shows that China consumed more concrete between 2011 and 2013 than the United States did in the entire 20th century. The Chinese economy’s relentless thirst for cement certainly hasn’t slackened according to a United States Geological Survey report. It shows that in 2017, China produced more cement than the rest of the world combined.

Xiaomi is incomparable to other tech companies, founder says
Chinese smartphone upstart challenges market analysts ahead of stock listing

HNA Group appoints Chen Feng as chairman, elevating the co-founder to top role following tragic death of Wang Jian

Chen Feng will take the helm of the Chinese conglomerate, a role that he had formerly shared with Wang Jian, who died in a tragic accident in France earlier this week. Wang’s equity in HNA expected to revert to controlling charities

Chen to become sole chairman of debt-laden HNA after Wang’s death

HNA’s group borrowing, including bank loans and bonds, surged by more than one-third over the first 11 months of last year to 637.5 billion yuan ($96 billion), according to a China bond market filing seen by Reuters in January.

Airbus To Develop Nanocomposite Materials For Aircraft Application In China
Airbus Beijing Engineering Center (ABEC) and the National Center for Nanoscience and Technology of China (NCNST) have established a lab focusing on nano composite materials, to research the application of such materials in the aeronautic sector.

Airbus To Develop Nanocomposite Materials For Aircraft Application In China

Fashion Victims: A Fast Guide to the Impact of the Trade War on Luxury Brands
Here’s Jing Daily’s fast guide to stories, including our own, that parse the potential impact of the escalating trade disputes on a variety of luxury markets and goods.

Fashion Victims: A Fast Guide to the Impact of the Trade War on Luxury Brands

Organic Beauty is Trending, But Who Can China’s Consumers Trust?
Natural, organic beauty and skincare products are not new to Chinese consumers, but new research has shown that they’re more desirable than ever in China—and luxury brands are looking to cash in.

Organic Beauty is Trending, But Who Can China’s Consumers Trust?

Tencent co-founder Jason Zeng Liqing goes after new fintech investments in Southeast Asia
One of China’s top angel investors is looking to ramp up funding activity in Southeast Asia, as the region’s burgeoning financial technology market opens up new opportunities for entrepreneurs.

Eco-Civilisation: Will China Become The World’s Climate Saviour?
Over the past ten years or so China has been on a drive to reduce its carbon outputs by increasing energy efficiency (in both production and usage) and by shifting from a reliance on coal to renewables – primarily solar. With President Xi taking office in 2013 progress has accelerated. This has been driven by the President’s own commitment on this subject, the will to position China as a responsible global leader and the direct connection between pollutants and domestic health and stability. In fact, 2013 was a key year as it marked Beijing’s, and indeed the rest of the country’s, smog crisis – a nadir for air quality – from which action was demanded.

A U.S. View on China’s So-Called ‘Debtbook Diplomacy’ Agenda
For the past year or so, senior U.S. government officials have been accusing China of engaging in so-called “debtbook diplomacy,” a tactic that Washington contends intentionally burdens developing countries with billions of dollars of loans. When these countries, many of them some of the poorest in the world, invariably can’t pay back the loans, Beijing extracts concessions that further China’s geopolitical interests, according to the theory that is now widely held among U.S. politicians, academics, and strategists.

Belt and Road opens new front in S’pore-China ties

Historically, Singapore has been a key node along the ancient Maritime Silk Road, and remains globally connected today. As globally connected countries, Singapore and China are natural partners for the long-term development of the BRI.

Why the Civil Nuclear Trap Is Part and Parcel of the Belt and Road Strategy
Civil nuclear energy presents grave pitfalls in terms of cost, innovation and security that BRI countries cannot and should not afford.

Ukraine establishes center to promote Belt and Road trade, investment
The Ukrainian Chamber of Commerce and Industry (UCCI) here on Thursday inaugurated the “One Belt One Road” Trade and Investment Promotion Centre in Ukraine.

Mainland Chinese investment in Hong Kong office buildings hits new high in first half
Interest is also extending to retail space and industrial buildings, analysts say

Beijing cracks down on Chinese film stars’ massive paychecks – but only after online storm over Fan Bingbing’s salary
Authorities announced last week that actors’ compensation would be capped at 40 per cent of production costs

Credit Suisse pays US$77 million to settle US probes ‘after it bribed Chinese officials by offering their families jobs’

The bank tried to win business by awarding jobs to friends and family of Chinese government officials

Want to work as a panda keeper or study kung fu at Shaolin? This Chinese reality show will give you the chance

Programme will select eight foreigners and film their experiences as they perform a number of distinctively Chinese roles

Alain Gillard
Information Officer
Service Asie Pacifique
Place Sainctelette 2
1080 Bruxelles
Tél 02 421 85 09 – Fax 02 421 87 75
Copyright © 2018 awex, All rights reserved.