China Press Review – June 11, 2018

Press review

Forget the G7. A summit happening in China is what really matters
“The rising importance of developing countries in world GDP, led by large emerging markets such as China and India, is increasing their geopolitical weight,” said Biswas of IHS Markit. “The SCO summit offers a further platform to build bilateral cooperation as well as strengthening wider cooperation among developing countries.”
money.cnn.com

Xi Jinping sends unity message at regional security summit in China after G7 disarray
Shanghai Cooperation Organisation members agree to strengthen cooperation to fight terrorism and efforts to reconstruct war-torn Afghanistan
www.scmp.com

G7 chaos is a PR win for China
As the G7 summit ended with deep divisions over trade, another meeting of global powers was going a lot more smoothly.
money.cnn.com

India, China agree deals on rice, river as relations continue to thaw
China says it will share hydrological data on the Brahmaputra and amend some requirements on Indian rice exports
www.scmp.com

How Beijing, Delhi and the China-Pakistan Economic Corridor could reshape global foreign policy in Asia
Raffaello Pantucci writes that a China-India symbiosis stemming from the infrastructure projects being built in Pakistan will force the West to rethink its South Asia strategy
www.scmp.com

Increasing China-Russia Trade, Investment Opportunities as EAEU FTA Kicks In
Following meetings between Chinese President Xi Jinping and Russian President Vladimir Putin in Beijing last Friday, the two countries issued a joint statement that announced an agreement to raise the share of national currencies in trade payments and further develop bilateral trade.

Increasing China-Russia Trade, Investment Opportunities as EAEU FTA Kicks In

Russia and China to form $1 bln industrial investment fund
The Russia-China Investment Fund (RCIF) and China Chengtong Holdings Group have agreed to establish a joint $1 billion industrial investment fund, RCIF said on Friday.
www.reuters.com

EU, China Officials Weigh Areas of Trade, Investment Cooperation
The past week has been a pivotal one for EU-China trade ties, as high-level officials met in Brussels to review areas of cooperation and shared concern, including on trade and investment, while discussing global trade tensions and bilateral irritants. The discussions were held in the context of the EU-China Strategic Dialogue, an event which occurs regularly and whose origin dates back over a decade. It also comes within weeks of a bilateral leaders’ summit.
www.ictsd.org

As US and EU square up on trade, one country stands to benefit: China
Squabbling between the former allies is likely to work in the ultimate interests of only one country: China
www.scmp.com

The Shangri-La Dialogue takeaway: China’s rapid rise is redefining the Asian order like never before
The main narratives for the evolution of the Indo-Pacific theatre have their respective strengths and pitfalls, Richard Heydarian writes
www.scmp.com

Trump is getting nowhere with Europe and China on widening trade deficits
Europe and China are taking advantage of America’s strengthening domestic demand to boost surpluses on their U.S. trades. They are unwisely defying Trump’s attempts to reduce unsustainably large U.S. trade imbalances. Investors should take seriously the possibility of market destabilizing trade clashes.
www.cnbc.com

China’s producer inflation picks up, buoyed by jump in commodity prices
Rise for second month in a row suggests curbs on pollution and tensions with Washington haven’t dampened growth momentum
www.scmp.com

Can China Sustain its Economic Growth?
In short, China’s development model does indeed offer a viable alternative to liberal democracy. I believe that there is no perfect political system, although the Chinese political system seems to be effective and long-lasting. Therefore, for China, its ability to rise peacefully in a Western-democratic system, while the Chinese Communist Party remains in power, is a viable possibility. China is becoming the Middle Kingdom that it has always been.

Can China Sustain its Economic Growth?

The Decline and Attempted Revival of China’s Economic Exceptionalism
Can a new generation of Chinese leaders resurrect the magic of China’s economic exceptionalism?
thediplomat.com

Fall in China loans signals squeeze on lending to smaller firms

As policymakers tighten the liquidity screws in China, what has been a handy window for companies to raise cash could now be closing.
www.scmp.com

Beijing’s tight grip on economy leaves tycoons on a tightrope
The exoneration of Wumart founder Zhang Wenzhong raises hopes of a new approach to private enterprise in China. But opaque policymaking and the government’s stranglehold on the economy stand in the way of true change
www.scmp.com

India BLASTS China for NOT respecting territory over trade plan as tensions of war rise
INDIA is the only country to refuse to endorse China’s Belt and Road initiative as Prime Minister Narendra Modi blasts Beijing for not respecting the sovereignty and territorial honesty.
www.express.co.uk/news/world/972412/world-war-3-india-blasts-china-beijing-belt-and-road-initiative-narendra-modi-xi-jinping

Sri Lanka pushes forward plans for Chinese investment zone in controversial port
Singapore-based planners to draw up designs for the Hambantota project
www.scmp.com

Fewer economists expect US Fed to have three more raise increases up its sleeve, survey finds
The median estimate from economists expect two more rate increases this year, according to a June 5 to 7 survey of economists Samuel Rines, chief economist at Avalon Advisors in Houston, said he worries that a significant dispute with China could provoke Beijing to turn once again to currency devaluation. “That’s where you’d get the ripple through to financial markets,” he said.
www.scmp.com

China’s fintech companies are exporting AI and big data to Asia’s ‘laggard’ banking markets
China’s fintech firms are looking towards Indonesia and other Southeast Asian markets which lag behind the curve when it comes to know-how in digital finance
www.scmp.com

How developers are coping with China’s credit squeeze
Large and medium-sized players, eager to climb the ranks through debt-fuelled expansion, face the biggest liquidity stress, say analysts
www.scmp.com

China’s Alibaba and JD.com invest billions in drones and robots to upgrade logistics backbone of e-commerce empires
China’s courier industry has boomed with the rise of e-commerce – investment in new logistics technology is aimed at reducing delivery times even further
www.scmp.com

China’s Richer Than It Thinks
Policies designed for a developing nation are now holding it back. True, while China’s per capita income reached $8,830 in 2017, up eight-fold from 2001, it’s still well below the World Bank’s $12,236 threshold for high-income countries. This measure is misleading, however. Already an upper-middle-income nation, China has a high-income country living inside of it. Over 200 million Chinese live in high-income areas, including the cities of Beijing, Tianjin and Shanghai, and the powerhouse coastal provinces of Jiangsu and Zhejiang. Jiangsu alone has a population of 80 million people and per capita GDP of almost $17,000 — higher than Argentina, Chile and Hungary. Shenzhen’s 12 million residents boast a per capita GDP of more than $27,000 in nominal terms.
www.bloomberg.com

China enters new stage of opening up: China Daily contributor
In the article, the writer says China is in the ‘deepening’ or second stage of opening up and needs western investments to progress to the next stage.
www.straitstimes.com

Temasek, others to buy Hainan Airlines stake for US$1.1 billion
Parent firm HNA says it plans to use the new funds to expand its operations by buying aircraft and support six other projects, such as pilot training, engine maintenance and training facilities
www.scmp.com

HK$100 billion green bond plan to establish Hong Kong as global hub, says monetary authority
City is Asia’s fourth largest bond issuance centre after Japan, the mainland and South Korea
www.scmp.com

Chinese Amazon plant’s ‘harsh working conditions’ investigated by operator Foxconn
Contract manufacturer to address concerns over factory making Amazon devices, after China Labour Watch report finds excessive hours and low wages
www.scmp.com

China’s Zhejiang province strives to be gathering place for high-quality FDI
On June 7th, the 20th edition of China Zhejiang Investment and Trade Symposium (ZJITS), hosted by the provincial government, was opened in the city of Ningbo, Zhejiang province. Through a series of activities such as business forums, trade fairs, and exhibitions, the symposium promotes the development of Zhejiang’s open economy and its attraction for high-quality foreign direct investment.
www.prnewswire.com

The tech giant’s experience made many people in China see how far the country still has to go. “We realized that China’s prosperity was built on sand.”

Xiaomi’s CDR Application Disclosed By Chinese Regulator, Company Registered $5B In Revenues For Q1
The Chinese securities regulator has disclosed the Chinese Depository Receipts (CDR) issuance application of smartphone maker Xiaomi Inc this morning, making the first such listing in the domestic stock market one step closer to the finish line.

Xiaomi’s CDR Application Disclosed By Chinese Regulator, Company Registered $5B In Revenues For Q1

Baidu Said To Prepare For CDR Listing As The First Chinese Tech Stock To Return Home
China’s largest online search engine Baidu Inc. is preparing for its Chinese Depository Receipts (CDR) issuance application, likely to become the first Chinese company that has listed overseas to return to the domestic A-share market, according to Chinese local media citing insiders.

Baidu Said To Prepare For CDR Listing As The First Chinese Tech Stock To Return Home

WuXi Biologics To Invest $60M For Its First Manufacturing Facility In United States
WuXi Biologics (2269.HK), an open-access biologics technology company based in China, is to invest US$60 million and hire approximately 150 employees to establish a biologics clinical and commercial manufacturing facility in Worcester, Massachusetts in the United States. The facility will be WuXi Biologics’ 11th global drug substance manufacturing facility, the firm said today in an announcement.

WuXi Biologics To Invest $60M For Its First Manufacturing Facility In United States

Temasek, others to buy Hainan Airlines stake for US$1.1 billion
Parent firm HNA says it plans to use the new funds to expand its operations by buying aircraft and support six other projects, such as pilot training, engine maintenance and training facilities
www.scmp.com

Why China’s ‘McDonald’s model’ of development could help poor countries – but Beijing may be drawing the wrong conclusions
Author of How China Escaped the Poverty Trap argues that the country’s success was mainly down to letting innovation flourish at a local level rather than relying on top-down diktats from Beijing
www.scmp.com

Here’s one number that shows the craze for electric vehicles in China
China began pushing the use of EVs and hybrids around a decade (link in Chinese) ago as part of broader efforts to tackle the country’s terrible air pollution problem and reduce carbon dioxide emissions from cars. The market really took off around 2014 thanks to policies like subsidies for local EV manufacturers and building more charging stations. Last year, China also announced a plan to phase out diesel-fueled cars, but there’s no timetable y

Here’s one number that shows the craze for electric vehicles in China

Greater Bay Area
Hong Kong’s health care expertise can unlock potential of ‘Greater Bay Area’, says former financial secretary
Availability of improved health and senior care could encourage more Hongkongers to retire in China
www.scmp.com

Coal-rich Chinese city fails to pay civil servants as Xi Jinping’s reforms hit hard
Leiyang finance bureau says it has ‘serious shortage’ of cash but wages have now been paid to all staff – nearly a month late
www.scmp.com

China’s Master Plan: Exporting an Ideology
China’s ideological assertiveness has been building for years. In the wake of the 2008 financial crisis, pundits began arguing that the “Beijing Consensus” — the mix of state-directed capitalism and authoritarian political control — was displacing a Washington Consensus that had been badly tarnished by the near-meltdown of the global economy. A decade later, some projections have China on a path to dominating global GDP within half a century.
www.bloombergquint.com

The movie theater will be the next target for China to dig deeper roots in Africa
Some observers of China’s global rise conclude that its influence is limited to military and economic capabilities. For example, it’s set to overtake the US as the world’s largest economy before 2030. There is one area in which China lags behind. That’s the use of “soft power”. It’s a phrase coined by the American political scientist Joseph Nye to describe the intangible resources that help a nation achieve its interests by influencing the preferences of others.

The movie theater will be the next target for China to dig deeper roots in Africa

The Growing Pains of China’s ‘Blue-Collar’ Apartments
Hangzhou opens low-rent housing specifically for migrant workers, but a previous experiment in Shenzhen met with mixed results.
www.sixthtone.com

The forgotten farm families in Beijing’s anti-poverty campaign: how China’s rural poor fall through the cracks
A single mother who was denied government aid in northwestern China rejected her neighbours’ idea that she sell her daughters: ‘I will carry on, no matter how hard life is’
www.scmp.com

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Alain Gillard
Information Officer
Awex
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