China Press Review – June 18, 2020

China FDI up 4.2 per cent in May to US$9.87 billion, marking second straight monthly increase
Foreign direct investment into China rose 4.2 per cent from a year ago in May to US$9.87 billion, marking the second straight monthly increase     China’s outbound direct investment declined by 1.6 per cent from a year ago to 296.27 billion yuan (US$41.8 billion) in the January to May period

China out to offset coronavirus impact with construction boom, but sustainability in doubt
China’s industrial production data for May showed all categories of fixed asset investment picked up, including steel production, cement output and excavator sales   But China’s property sector is unlikely to be able to sustain recent pace for rest of the year, analysts say, as China seeks to offset the economic impact of the coronavirus

U.S.-China tech war bigger risk than coronavirus, EU chamber chief says
The coronavirus has disrupted supply chains and demand across the global economy, but it is the prospect of Europe becoming a casualty in the U.S.-China tech war that keeps the president of the European Chamber in China “awake at night”.

Naive’ Europe must snub China if it refuses market access, says ex-Nato chief
EU engaged with China in the hope of it becoming more like Hong Kong, but Hong Kong has become more like China, Anders Fogh Rasmussen says  Production should be moved to more ‘stable and reliable’ countries if China won’t reciprocate Europe’s market access, he argues

EU seeks to curb investment by state-backed buyers from China and other countries
The proposal is in response to EU’s fear of foreign subsidies being used to grow market share or underbid European rivals to gain access to important markets    New measures are needed as existing rules are not enough to ward off a potential post-coronavirus buying spree of cheap assets, according to the European Commission

China Is $8 Trillion Away From Eclipsing Trump’s Economy
“There is no mystery as to why China will soon overtake the U.S. as the world’s leading technological, economic and military superpower if current trends continue,” says Duncan, author of The New Depression: The Breakdown Of The Paper Money Economy. Ultimately, he says, “there’s only one way for the U.S. to retain its global preeminence: it must invest more than China.”

Hong Kong security law: China backs city’s status as financial hub as it brushes aside G7 concerns
Interests of foreign investors will be protected in Hong Kong, says Vice-Premier Liu He    Statement comes as China’s legislature pushes ahead with national security law despite G7 objections

China stares at a job crisis
China is looking back into history to tap its hallmark ‘stall economy’ for its low-middle class population.

There may be no immunity against Covid-19, new Wuhan study suggests
Researchers behind the non-peer-reviewed paper ran antibody tests on samples from hospital workers who were exposed to infected patients at early stage of outbreak    Only 4 per cent of 23,000 had antibodies – but they estimated at least 25 per cent could have contracted the disease

Coronavirus: China bans imported pork from German meat plant after more than 650 infected in outbreak
Products from German slaughterhouse Toennies are banned from entering China after a coronavirus outbreak at the facility, customs agency says   Outbreak is likely add to concerns about the safety of imported food in China and comes just days after Beijing halted shipments of European salmon

Coronavirus: no evidence new Beijing outbreak came from Europe, EU disease agency says
Possible links between Xinfadi outbreak and Europe were sparked by comments that the strain was unlike other cases in Beijing months ago    European CDC says ‘European clade’ is the most common in all parts of the world

Global report: Beijing Covid-19 cluster may have begun a month earlier – China health official
Chinese capital reports 21 new cases; New Zealand records new infection in returned traveller; India has highest daily jump in infections

Coronavirus: Beijing outbreak under control, but cases will continue, epidemiologist says
Deputy police chief denies city is back under lockdown but says strict measures have been imposed to stop people leaving    Neighbouring Tianjin reports first local case in months, a hotel kitchen worker who had recently handled frozen seafood

Can China win Covid-19 vaccine race with old school technology?
Chinese teams are behind half of the world’s potential vaccines making fastest progress but their approach differs from the West.    If testing hurdles can be overcome, inactivated vaccines may hold hope for beating coronavirus

Could Beijing’s Second Wave of COVID-19 Affect Consumer Sentiment?
According to the survey, only a small share (16 percent) of Chinese adults continue to see the coronavirus as a severe health risk in China. However, general concern about the virus remains: 82 percent say they are at least somewhat concerned about an outbreak. Moreover, half of the adults believe the pandemic will negatively impact their job and finances in the next six months. Given this, consumers will most likely lean toward more conservative consumption strategies. This means fewer impulse purchases and premature and hedonic consumption as well as.  COVID-19 is a wake-up call for a lot of Chinese consumers to shift from their free-spending lifestyle. The “Revenge Spending” that brands have been waiting for might be replaced by “Revenge Saving.” Accessible luxury brands and second-hand markets are likely to benefit from the recovery.

Chinese e-commerce booms during mid-year festival, indicating consumer power still strong amid Covid-19
On, sales of dry food, maternity, children-related products and alcohol exceeded 100 million yuan in the first minute of trade on Thursday. debuts with 3.5 per cent gain in Hong Kong’s biggest initial public offering of 2020 as joyous investors embrace e-commerce
Shares of the company, which were overbought by retail investors by 179 times, rose as much as 5.8 per cent in early trading, before settling the day at HK$234 each, a 3.5 per cent premium to its initial public offering (IPO) price      Secondary listing of follows NetEase last week

Coronavirus: China calls on banks to give up US$212 billion in profits to finance cheap business lending
In latest stimulus step, China’s State Council calls on banks to give up equivalent of 75 per cent of their 2019 profits to help stead the economy     China’s central bank will direct financial institutions to lower lending rates, add fresh funds at low rates for borrowers and slash service fees

Why Shanghai FTZ’s New Offshore Trade Policies Are Attracting Foreign Businesses
On April 29, 2020, Volvo Construction Equipment (CE) signed a memorandum with the government of Pudong New District, Shanghai, which signaled the official movement of Volvo CE’s Asia headquarters from Singapore to Shanghai. This is believed to be a result of Shanghai Free Trade Zone’s (FTZ) endeavors to promote offshore trade businesses.

Chinese AI researchers based overseas sweep top awards at leading computer vision conference CVPR
At the CVPR this year, both papers that clinched top awards were led by Chinese researchers   The scientists are based in colleges abroad, reflecting a broader trend of Chinese AI talent pursuing opportunities overseas

China-India border dispute: what are New Delhi’s options to respond?
Officially, escalation has been ruled out after 20 Indian soldiers were killed in a border skirmish with Chinese troops. But calls for a response are growing   India could target Huawei’s 5G deal, or boost ties with the US. And while all out war is unlikely, its troops may take matters into their own hands

Oppo cancels livestream launch of new 5G phone in India and opts for YouTube video amid rising tensions
Indian and Chinese troops clashed violently this week in Ladakh’s Galwan Valley, leading to the deaths of several soldiers

‘Boycott China’ Unrealistic: India Can Only Cut 30% Chinese Imports
The fact remains that there is ample scope in policy-making to stop the Red Dragon surge. Experts say that WTO rules allow India more room to protect its sectors

China to forgive interest-free loans to Africa that are coming due, Xi Jinping says
Chinese leader, speaking at a pandemic summit, promises help in building hospitals and sending medical experts to African countries     Beijing has also agreed to delay loan repayments for 77 low-income countries, including those in Africa, as part of a G20 programme

Hong Kong’s regional telecoms hub role, 5G mobile plans imperilled by US block of cable system link
A US government panel moved to stop the first high-capacity, direct fibre-optic cable link between Hong Kong and Los Angeles     It raised national security concerns over Chinese investment in the Pacific Light Cable Network

US wants undersea data cable to skip Hong Kong
Landing station in city would ‘expose US communications traffic to collection by Beijing’, Justice Department officials say    Pacific Light Cable Network proposed by Google and Facebook is awaiting approval by US Federal Communications Commission

The real reason Trump responded strongly to Hong Kong’s national security law
Trump’s announcement of US action following China’s move to impose a national security law on Hong Kong will have little impact on the city. Rather, it reflects deteriorating Sino-US relations

In Hong Kong, the world is either yellow or blue
It will be hard to achieve reconciliation or compromise between the two camps when they see the same things and interpret them in the opposite way

Hong Kong and other disagreements dominate US-China Hawaii meeting
Taiwan, Hong Kong and Xinjiang dominate ‘constructive’ meeting between Mike Pompeo and Yang Jiechi  Beijing ‘committed’ to improving ties but warns it will ‘resolutely defend’ its interests

US-China talks: Pompeo’s seven-hour meeting with Yang ‘helps atmosphere’ – but differing statements show divisions remain
The countries’ top diplomats indicate a wish to prevent a further deterioration in relations   But the two sides give differing accounts of the meeting and US efforts may be driven by this year’s election, some observers say

What are some of the latest concessions in US-China relations ahead of Hawaii talks?
China continues to invite US companies like AmEx to access its burgeoning domestic financial market     Nasdaq remains open to Chinese companies as Dada, Genetron raise fresh capital this month

Beijing’s ‘Tiger’ diplomat takes decades of China-US negotiation into crucial meeting with Mike Pompeo
Yang Jiechi’s long experience in Washington includes delicate mediation and close ties to former presidents    A meeting with the US secretary of state comes as the Sino-US relationship hits a low point over trade, Covid-19 and military manoeuvres

China’s Media Influence Has Gone Global. So Has the Pushback.
Beijing’s campaign to control narratives about China the world over is attracting more attention — and opposition.

How reliant is Australia on China?
Australia’s relationship with China is not a happy one at the moment. Canberra’s push for answers on the pandemic’s origins has angered Beijing. In the past month it has put in place some bruising sanctions and travel warnings. Many have urged Australia to reduce its economic reliance on China, but is this really an option?

Why are people in China using Zoom?
Zoom has found appeal among students, bankers and others in China seeking to connect with the rest of the world     Competition is limited as communication apps from Google and others remain blocked by China’s Great Firewall

For China’s Alternative Growers, Consumerism Trumps Idealism
Around the globe, alternative food networks offer a radically different vision of what growing and consuming food could be. In China, they’ve become just another luxury.,%20Consumerism%20Trumps%20Idealism

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