China Press Review – July 7, 2020

Press review

Where the US-China Trade War Should Go From Here
More tariffs cannot be the answer amid the pandemic.

podcast : New COVID-19 outbreak threatening China’s economic recovery?
The president of the EU Chamber of Commerce in China, Jörg Wuttke, says rising numbers of COVID-19 cases in Beijing haven’t yet reach China’s industrial hubs.

Will companies really ditch China?
So, as foreign companies worry about whether continuing investment in China is a good idea, many countries are offering themselves as attractive alternatives.Here’s a look at three of those alternatives… with one big caveat. Is China too big to fail? China still has huge advantages. First, rearranging supply chains isn’t like changing table settings – it takes time to reorient billions of dollars in investment and infrastructure. Second, and more importantly, China has a billion consumers. It used to be that foreign companies wanted to be in China mainly because it was a cheap place to make things for export. But as China’s own population has gotten more affluent (lifting more than 500 million people out of poverty will do that), the country is itself a leading consumer market for European and US firms. That makes decisions to leave the country much harder.

China’s exporters turn to the domestic market, but can it offset coronavirus demand shock?
Beijing is hopeful its 1.4 billion consumers can help plug the gap caused by a plunging overseas demand for products    China’s exports fell 7.7 per cent in the first five months of 2020, while imports fell 8.2 per cent to US$763.6 billion, showing weaker domestic demand

Coronavirus: Chinese consumers less willing to splurge, casting shadow over second quarter rebound
Chinese consumers were less willing to spend money in May than March, when large parts of the country were still under coronavirus lockdown, a new survey shows   The weak consumer sentiment has cast doubt over second quarter growth, which some economists expect to turn positive

SCMP’s China Internet Report 2020 finds that Covid-19 has accelerated digitisation of economy
The pandemic has permanently changed how people in China are using technology in their everyday lives    People have been reaching out for public services, such as health care and education, online

Why the West must learn from China, not try to change or destroy it
Tensions stem from the fact China’s economic success and modernisation do not conform to beliefs derived from the evolution of Western modernization   If Western critics can be guided by a spirit of cooperation and engagement, there will be no need to fear a rising China

China leads regional risk rally
Risk rally triggered by Chinese editorial; US Treasuries slide as safe havens dumped; Investors eye more signs of economic recovery

China’s forex reserves rise to US$3.112 trillion in June
The country’s foreign exchange reserves – the world’s largest – rose US$10.64 billion in June to US$3.112 trillion, central bank data showed on Tuesday    Strict capital controls have also helped China keep outflows under control despite the shock from the coronavirus outbreak, US trade war and weakening economic growth

US coronavirus stimulus reignites China’s criticism of dollar hegemony, but no alternative seen any time soon
China’s criticism of the US dollar’s monopoly is gaining momentum in the face of Washington’s coronavirus stimulus and threats of financial sanctions  But reform of international monetary policy is unlikely any time soon, largely because there is no alternative reserve currency to the dollar

Why the People’s Bank of China is having a good coronavirus pandemic
China’s central bank’s measures have been relatively restrained, leaving it with more room to manoeuvre monetary policy    The country’s improving economic data shows that the bank’s nuanced strategy has paid off

Hong Kong steps in to weaken the local dollar, as hot money inflows defy doomsday talk of capital flight after China’s security law
Hong Kong’s monetary authority sold HK$7.17 billion of local dollars on Monday and Tuesday to weaken the currency and bring it back within its trading band    Hong Kong’s de facto central bank had to intervene 23 times this year, spending up to HK$64.8 billion to maintain the dollar’s trading band

China told citizens to buy stocks, boosting market — ‘We have the Fed…China has its state media’
China’s state media fed an already exuberant Chinese stock market some extra fuel Monday with a report that said fostering a “healthy bull market” is important. The Shanghai stock market, up nearly 6% last week, added another 5.7% after the report, along with gains in other Chinese markets.    Stocks globally surged on the prospect of an improving China, but they were also supported by stimulus from the world’s central banks.

Hong Kong stocks slide after entering bull market while Chinese markets gain on upbeat view of economic recovery
City leader Lam points to big run-up in Hong Kong stocks in rebutting critics who warn of dire consequences of national security law    Geely Automobile soar after reporting June sales rose 21 per cent

Hong Kong will attract listings by international companies, not just Chinese firms, as Greater Bay Area opens up, outgoing IPO panel chief says
City a natural base for listings by Greater Bay Area companies looking to internationalise brand and reputation, Andrew Weir says   National Security Law will not significantly hurt Hong Kong’s capital market

Samsung’s strong earnings hint at recovery from Covid-19 fallout
Samsung posted operating profit of 8.1 trillion won (US$6.8 billion) in the second quarter, beating the 6.2 trillion won average of estimates     The South Korean company’s strong performance suggests the tech industry is climbing back from the Covid-19 pandemic

Can An Online French Couture Show Win Over Chinese Luxury Fans?
Dior’s online haute couture show premier won the attention and recognition from Chinese viewers through a China-specific livestream session. Paris couture shows are being staged online from July 6 (today) to July 9, where household luxury names like Chanel, Dior, and Valentino will present their Fall/Winter couture collections.In this first-ever digital haute couture presentation for Chinese audiences, Dior premiered its pre-recorded, 14-minute film (directed by Matteo Garrone) on Weibo alongside the brand’s livestream featuring its ambassador, Angelababy, and the Chinese model Cici Xiang delivering their first impressions of the show. The digital presentation was heavily praised by Chinese netizens, hitting over 8 million views and receiving 32,600 comments on the social platform. Fans particularly liked the film’s fairy-tale aesthetic, vivid storyline, and references to Greek mythology.

Coronavirus inspires innovations in property transactions, energises recovery momentum
While many would only consider leasing and purchasing properties they’d seen in person, the pandemic calls for new measures     Lockdowns have inspired a boom in remote viewings and virtual sales and leasing around the world, buoying markets energising recovery momentum

China Punishes First Int’l Airline Over Imported COVID-19 Cases
A privately owned Bangladeshi airline has had one of its routes suspended for one week after five passengers tested positive for the coronavirus upon arriving in China.

US increasingly excludes China from coronavirus research projects
In April, the National Institutes of Health announced a public-private partnership to develop research strategy for treatments – China was not part of the group   NIH also cut off funding for a coronavirus project New York-based EcoHealth Alliance had with Chinese research entities

Coronavirus ‘travel bubbles’ must be rooted in science, not politics
As countries look to reopen borders amid the pandemic, safe lists can all too easily be weaponised to achieve foreign policy or economic objectives    These nations must have frank private discussions followed by full transparency, and prioritise public health

After bubonic plague confirmed, Chinese officials urge precautions
A hospital in Bayannur, Inner Mongolia, reported that a herdsman had the disease but was in stable condition   Beijing Centre for Disease Prevention and Control says travellers to the autonomous region should avoid eating wild animals and camping in the grassland

Taobao University Webinar Series Helps Reboot Global SMEs
To help small businesses regain their footing after Covid-19, Taobao University, Alibaba Group’s training and education platform, has curated a free webinar series to share the company’s best-practice case studies and industry trends.

Could India-China border row be calmed by finding common ground on Covid-19?
India remains ravaged by the coronavirus at a time when anti-China sentiment is an obstacle to working together on the issue   The two neighbours have an ideal forum for cooperation in the BRICS bloc of nations, although its members have other priorities, observers say

Why the devil is still in the detail for China and India’s troop withdrawal agreement
Senior officials from the two sides discussed the deal to disengage from their stand-off in the Himalayas, but military sources said the current arrangement was temporary   Tensions are running high following a deadly clash last month, and analysts say their disagreement risks flaring up again

Pakistan Undoubtedly The Biggest Beneficiary Of India-China Military Stand-Off –
India-China military standoff.: Exploiting India’s vulnerabilities is an essential element of China’s “contain India” policy”. Experts believe that Pakistan has been undoubtedly the largest beneficiary of the indo-Sino conflict.

Agreement signed in Pakistan for hydropower project under CPEC
The concessional agreement of the 700.7-MW Azad Pattan Hydropower Project under the China-Pakistan Economic Corridor (CPEC) has been signed, a breakthrough for the implementation of the project, according to China Gezhouba Group.

US could sanction Chinese social media apps over personal data concerns, Mike Pompeo says
India has banned TikTok, Australia is considering similar action and the US has previously sanctioned Chinese-owned gay dating app Grindr     Using TikTok puts your private information in the hands of China’s Communist Party, according to Pompeo

Hong Kong national security law: TikTok to quit city as tech giant becomes first to withdraw over sweeping police powers
Beijing-based ByteDance announces that it will stop operation of popular app within matter of days    Legislation gives police power to force internet companies to assist with investigations

Tiktok to cut off Hong Kong users ‘within days’
Hong Kong users will not be able to access Tiktok after the short video app withdraws from the autonomous city in the coming days, a spokesperson of Tiktok parent company Bytedance told TechNode Tuesday.

Microsoft and Zoom join Hong Kong data ‘pause’
Microsoft and Zoom have said they will not process data requests made by the Hong Kong authorities while they take stock of a new security law.

India’s app ban raises the stakes for China’s global tech ambitions amid rising geopolitical tensions
Chinese tech companies have worked hard to penetrate the digital market of Asia’s second-biggest developing economy, with considerable success

Australia must re-engage with China to preserve its economic prosperity
Australia can build areas of cooperation with China and work together on issues such as climate change, trade and disaster management      To really change the narrative, Australia must showcase the egalitarian values at the heart of the national character

Australians ‘at risk of arbitrary detention’ in China, government warns
New advice is likely to further unsettle relations already strained by trade disputes, allegations of espionage and the national security law for Hong Kong   Australian government advice for China and Hong Kong remains ‘do not travel’, in accordance with the blanket ban in response to coronavirus pandemic

Australia must re-engage with China to preserve its economic prosperity
Australia can build areas of cooperation with China and work together on issues such as climate change, trade and disaster management     To really change the narrative, Australia must showcase the egalitarian values at the heart of the national character

China-Africa: Its the politics, stupid!
Forget all the talk of economic colonisation: China wants African votes, not African ports.

Hongkongers, spooked by Beijing’s new national security law, are scrubbing their digital footprints
Hong Kong officially adopted a new national security law imposed by Beijing on July 1   Internet users worried of falling afoul of the new law are using encrypted messaging apps, scrubbing their social media posts and installing VPN software

How Hong Kong national security law compares to legislation in other countries
The new legislation is meant to address the security requirements of one country while straddling two very different political and legal systems     Some controversial features are common to codes elsewhere but other provisions are in sharp contrast to modern international practice, analysts say

How Kingold Jewelry’s fake gold bars slipped through scrutiny in one of China’s biggest loan scams
Kingold Jewelry allegedly passed off gilded copper bars as collateral for US$2.8 billion of loans  Bullion has to pass through state inspection and be stamped by accredited refiners before being eligible as loan collateral

How Weibo Sold China on ‘Commercially Correct’ Feminism
Despite a hostile environment, feminists have carved out a space on the popular microblogging platform. But now they’re struggling to make themselves heard over a new generation of radicals raised by the algorithm.

Signals in the dark: trends in post-Covid Chinese tourism
A report from the China Hospitality Association shows that 74% of hotels and homestays chose to close. In the first two months of 2020, the industry lost more than RMB 67 billion (around $10 billion), with rental apartment losses (in Chinese) of around RMB 700 million. For health reasons, many countries have restricted entry and closed their borders to tourists. According to the Tourism Authority of Thailand, in April, there were no foreign tourists visiting Thailand, and their number decreased by 10.02 million from January to May.

‘Gaokao’ 2020: The Rights and Wrongs of China’s Dreaded Exam
China’s college entrance exam is designed to give every student a fair and equal chance of success. But in 2020, some are more equal than others.

Korean war lessons: China and US can be friends ‘if China is a rival they cannot beat’
Commentary from a People’s Daily social media arm says lessons from the conflict that started 70 years ago can be applied to a new cold war with the US  Xiakedao article says China learned that it needs to defend itself and the peace and stability of East Asia

Alain Gillard
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