China Press Review – June 19, 2020

Foreign M&A in China remains strong as investors remain optimistic despite coronavirus, decoupling
American and European investors are taking advantage of looser foreign ownership limits, while also betting on rising Chinese consumer demand, Rhodium Group says    Foreign appetite for Chinese assets remains ‘robust’ despite widespread talk of decoupling and reshoring as China recovers from the coronavirus pandemic

China-US tensions could be worse than the Cold War, academic says
Situation facing Beijing and Washington is ‘sensationally more distressing’ than anything seen during the US-Russia freeze, Peking University professor Wang Jisi tells World Peace Forum    US President Donald Trump might seek to further contain China as he bids for re-election in November, he says

China to step up US agriculture purchases under phase one trade war deal after Hawaii talks, sources say
On Thursday, US Secretary of State Michael Pompeo said China’s top foreign policy official Yang Jiechi committed to honour all of his nation’s commitments under the trade deal     China pledged to buy US$36.5 billion worth of American agriculture products under the phase one deal, up from US$24 billion in 2017, before the trade war.

China urged to ‘follow through’ on US concerns after Hawaii meeting
Senior US diplomat David Stilwell says Chinese side recommitted to phase one trade deal but otherwise was not ‘forthcoming’   Washington looking for reduction in ‘aggressive behaviour’ by Beijing in coming weeks

Lessons from the past on how to revive the US economy after COVID-19
Examining what worked in response to previous crises can help policy makers as they make plans to revive economic activity.

Australia cyber attacks: PM Morrison warns of ‘sophisticated’ state hack
Australia’s government and institutions are being targeted by ongoing sophisticated state-based cyber hacks, Prime Minister Scott Morrison says.

The coming of age of Australia’s relations with China
The total loss of innocence in Australia’s bilateral relationship with China over the past few months reminds me of a scene in the classic 1986 coming-of-age film Stand by Me. When asked around the campfire what food he would eat if he could have only one for the rest of his life, Vern, the film’s most loveable character, emphatically says, ‘That’s easy. Pez. Cherry flavour Pez. No question about it.’ These are the questions that seem important to young boys until they discover girls, the film’s narrator observes

Why technology, not street vendors, will save China’s economy from coronavirus
A street vendor economy will only create the illusion of job security for millions of urban unemployed, migrant workers and fresh graduates   China’s race to global economic superpower status can only succeed with unwavering commitment to doubling down on technological empowerment

China’s top chip maker SMIC gets fast-track approval for US$2.82 billion fundraising plan to bolster capital in global tech war
The biggest fundraising plan on Star Market gets approved by the Shanghai stock exchange within 18 days    Company says US laws restricting its access chip suppliers could curb output and sales

Hong Kong’s economy can endure the national security law and emerge stronger
A good deal of money has already flowed out of the city and investors are assuming the worst in the absence of clarity over the national security law    Despite the uncertainty, however, Hong Kong’s low taxes, vibrant business community and efficient infrastructure still make it a great place to live

Why Hong Kong manufacturers struggle to revitalise factories in China’s Greater Bay Area
Hong Kong manufacturers with operations in the Greater Bay Area face challenges ranging from burdensome policies to rising costs, a new report says    Companies also worry about upgrading facilities in the mainland due to risks in the global business environment

The Silence of the Looms: A Textile Hub Grinds to a Halt
As demand dwindles in a post-pandemic world, Guangzhou’s migrant workers clamber to return home.

China’s New Digital Industrial Transformation
China’s post-COVID rebuild will position the country to weather future pandemics.

China to Reduce Coal Consumption Amid Economic Downturn
Experts say the central government’s decision to cap coal power projects may prevent provincial authorities from fueling economic growth at the expense of the environment.

Coronavirus: China ramps up checks on food imports amid Beijing outbreak
Customs authorities test thousands of products but all samples so far come back negative   Virus found at the Xinfadi food market is much older than the one circulating in Europe, Chinese researchers say

China’s public health reforms may not prevent next virus: experts
China’s latest plans to overhaul its disease control system may not improve its ability to handle future virus outbreaks, according to some experts inside and outside the country.

Mass Virus Testing Strains Beijing’s Resources
The Chinese capital is testing hundreds of thousands of residents amid its recent coronavirus outbreak.

China sets biosafety standards for coronavirus vaccine makers
Production of vaccine is still at least months away but some drug firms are already building plants to get candidates to market      New rules more detailed than regime in place before, analyst says

Beijing’s COVID Cluster ‘Contained,’ But Search for Source Continues
A leading CDC expert believes the local outbreak’s peak was nearly a week ago, though many of the infected didn’t show symptoms initially.,%E2%80%99%20But%20Search%20for%20Source%20Continues

Beijing taps telecoms data in search of Covid-19
Beijing district officials confirmed that they are using data from mobile phone carriers to track individual movement during the city’s renewed Covid-19 outbreak, according to Xinhua News (in Chinese). Daxing District authorities told the official news agency they used location-based data to track visitors to the Xinfadi market, the outbreak’s epicenter.

COVID-19 entrenching poverty in the developing world
Through disruption of the forces of supply and demand and the forcing of lockdown measures across the global economy, the COVID-19 pandemic is posing an existential threat to least developed and developing countries.

COVID-19 and its impact on Bangladesh economy
According to the forecast released by the Economist Intelligence Unit on 26 March, the global economy is expected to contract by 2.2 per cent in 2020. These effects are expected to be more exposed in major G20 economies, such as Germany, Italy, the United Kingdom and the US – all countries that are major markets for Bangladesh’s most vital tradable good: readymade garments. The depressed oil prices will also lead to a strong reversal of growth in the Middle East and North Africa region, which is also home to a large Bangladeshi diaspora, who send back close to $20 billion every year. In the coming months, there can be no doubt that there will be a decrease in remittances and that these second-degree impacts will also be felt in the country, painfully in rural Bangladesh, where families rely heavily on remittances for their survival.

Ecommerce Expert Explains How to Develop an International Supply Chain
international supply chain

   The ideal supply chain would be choosing Ex Work, using a freight forwarder, and ensuring shipment the entire way.   Having a good partner or a 3PL will add value to your business.   It is important you do your research before you start importing products.

Geely to be first automaker on STAR board
Polestar opened its second Chinese direct sales store in Shanghai earlier this month, with an expansion plan of 20 stores and 50 service outlets in 17 domestic cities by the end of this year   China’s biggest private automaker, Geely, announced plans on Wednesday for a listing on China’s Nasdaq-like high-tech STAR market. The list would make it the first overseas-listed Chinese automaker to double list on mainland financial markets for fresh funds.

US court rejects IP theft claims against Chinese mixed reality firm
‘No factual evidence’ for claims against Nreal, court rules On Wednesday, a California court dismissed an intellectual property (IP) theft lawsuit against Chinese mixed reality company Nreal filed by a former employer of its founder, according to court documents sent by Nreal to TechNode. US-based rival Magic Leap accused Nreal founder Xu Chi of stealing MR glasses technology while working there

HSBC comes out fighting against ‘groundless’ rumours targeting its China business
HSBC said it would continue to invest in its China business despite resumption of planned lay-offs globally     Bank defends itself versus talk in mainland press it may be forced to exit China

Alibaba reshuffles executives in fintech, travel, retail units
Chinese e-commerce and technology giant Alibaba unveiled on Thursday a series of management changes across various business units, the first after founder Jack Ma’s formal departure from the company in September.    The current management reshuffle takes place amid rising competition from rivals and Pinduoduo in its core-commence business and Meituan in the local lifestyle sector.

JPMorgan gets China’s nod to operate first fully foreign-owned futures business
The move comes as China pushes ahead with opening its multi-trillion-dollar financial market    The China Securities Regulatory Commission says the approval will bring in more qualified foreign players

‘China’s Erin Brockovich’ Goes Global to Hold Chinese Companies Accountable
Environmental lawyer Zhang Jingjing has worked in 20 countries since 2015 to help clean up or shut down Chinese-owned mines, power plants or industrial projects.

Hopes for EU–China climate deal centre on a green recovery
The 2020 climate agenda was supposed to be all about the European Union and China. Then came the coronavirus. Now what?

Coronavirus: India’s Chennai back in lockdown as cases spike
Indian officials have re-imposed a lockdown in the southern city of Chennai (formerly Madras) and three neighbouring districts.

India and China need to rebuild economic ties to stave off war
The economic loss that would result from war with a major trading partner is one factor that can stop skirmishes.

China, India reinforcing border positions, satellite images show
There is ‘credible evidence’ that both sides have added firepower in Galwan River valley, International Institute for Strategic Studies says     Temporary position comprising 30-40 vehicles appears to have been set up on Indian side, and about 100 trucks can be seen on Chinese side, think tank says

China-India border clash pushes relations to new low, observers say
Beijing and New Delhi have blamed each other for the fighting on Monday along the disputed Himalayan border that left at least 20 Indian soldiers dead    Confrontation is the most serious between the two countries since they fought a month-long war in 1962

India-China conflict could be the top geopolitical risk in Asia right now: Eurasia Group
What India-China relations could mean for emerging markets At least 20 Indian soldiers were killed in a clash between Chinese troops, raising fears of more conflict to come. The skirmish could propel change to the Indian economy and geopolitics in the region, according to Akhil Bery, Eurasia Group’s Southeast Asia analyst.

Pompeo warns Europeans against ‘rogue actor’ China
US Secretary of State Mike Pompeo on Friday warned Europeans they are abandoning democracy if they embrace China, in a scathing denunciation of Beijing two days after he held talks on trans-Pacific friction.

US aims for space superiority over China and Russia in new defence strategy
Pentagon identifies the two countries as greatest strategic threats to US, saying they have ‘weaponised space’     Report released a day after China had to delay its final BeiDou-3 satellite launch because of ‘technical problems’

Trump Suggests China May Have Intentionally Allowed Coronavirus To Spread
In an interview with the Wall Street Journal, President Trump said he believes that China may have intentionally allowed the coronavirus to spread beyond its borders in order to damage other global economies.

The Biggest Obstacle to China Policy: President Trump
Overseeing chaotic actions is a president whose goal with Beijing has been to secure a trade deal that would help him get re-elected.

Ex-US trade representative Charlene Barshefsky says Donald Trump has ‘no policy’ on China
Barshefsky, who served in the Clinton administration, also criticised the phase one trade deal for its tacit approval of China’s state managed economy    Trump publicly contradicted his top trade official on Thursday, insisting that ‘complete decoupling’ from China remained an option

How Biden could seize on Bolton’s book to paint Trump as soft on China
Biden campaign has already repeated claims Trump kowtowed to President Xi while seeking foreign assistance with domestic politics     Meanwhile, US Senator Amy Klobuchar has withdrawn from the race to be Biden’s running mate, urging him to pick a woman of colour

As China’s global media influence grows, so does the pushback
It is encouraging to see governments, technology firms and civil society actors in a growing number of countries exploring avenues for protecting media freedom, increasing transparency and countering disinformation efforts by Chinese government-linked actors. Their efforts will not only address Beijing’s encroachments, but also strengthen democratic institutions and independent media against other domestic and international threats.  Such action may require considerable political will, given Beijing’s tendency to mete out economic reprisals. But it is increasingly clear that allowing the authoritarian dimensions of CCP media influence campaigns to expand unchecked carries its own costs.

Michael Kovrig and Michael Spavor: China charges Canadians with spying
China has charged two Canadians with spying, more than 18 months after they were detained.

Colgate’s Chinese Toothpaste Brand to ‘Evolve’ Racist Logo
As corporations around the world react to the ongoing Black Lives Matter protests, Darlie’s American parent company may be looking to squeeze China’s blackface toothpaste back into the tube.

Chinese Airline Offers ‘Flight Pass’ Promotion for Unlimited Travel
Six months of unlimited domestic travel on China Eastern Airlines can be yours for just $470.

Alain Gillard
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