China Press Review – June 20, 2019

Press review

Xi Jinping-Donald Trump meeting at G20 is good news, but trade war and its damage will linger, US business leaders predict
Panellists agree that the use of tariffs is not the best way for Washington to solve its problems with Beijing ‘The notion that we’ll get a comprehensive agreement any time before the end of this year is doubtful to me,’ US Chamber of Commerce official says
www.scmp.com

As trade war continues, are the US and Chinese economies heading for a messy divorce?
Separation is under way in manufacturing, technology and investment, and while it predates the trade war, the Trump administration tariffs have acted as turbo boosters Unconfirmed reports that Apple is considering moving part of its manufacturing out of China fuel suspicion that the two nations will increasingly go their separate ways
www.scmp.com

Did China’s trade negotiators make promises they couldn’t keep? US Trade Representative Robert Lighthizer thinks so
Official tells House committee he considers ‘some forces in China’ decided that its negotiators ‘went out beyond their mandate’ But he remains confident talks will resume, has ‘trust and complete good faith’ in his Chinese counterparts
www.scmp.com

China-EU investment treaty talks ‘better than expected’ as Beijing woos US allies
Meetings about Comprehensive Agreement on Investment go ‘deeper than normal’, European diplomat says China also signs significant deals with Britain as it shores up alliances during trade war with US
www.scmp.com

China’s New Stimulus Plan Encourages Consumption of Smart Cars, 5G, Green Home Appliances
On June 6, China unveiled its two-year stimulus plan, Implementation Plan for Promoting Update and Upgrade of Key Consumer Goods and Facilitating Resource Recycling (2019-2020) to boost the purchase of auto vehicles, home appliances, and consumer electronic goods.
www.china-briefing.com

Apple assesses moving up to 30% of production out of China
Apple has asked its major suppliers to evaluate the cost implications of moving 15% to 30% of their production capacity from China to Southeast Asia as it prepares to restructure its supply chain. People cited by Nikkei said that the decision was made by Apple as a result of the ongoing trade tensions between the US and China, but things won’t change even if the disputes were settled. Apple has decided the risks of relying heavily on manufacturing in China are too great and even rising.

Briefing: Apple assesses moving up to 30% of production out of China

As talk of global recession emerges amid US-China trade war, deal flows and sentiment take a hit
Merger activity down 25 per cent in China, Hong Kong in first quarter, Mergermarket says
Companies taking a cautious approach as US-China trade war escalates
www.scmp.com

Risks posed by trade war and Federal Reserve policy are graver than investors seem to realise
Markets must come to terms with the fact that China and the US are too far apart on crucial issues for the trade war to be resolved soon When central banks themselves have become sources of volatility, investors must wake up to the dangers of underpricing risk
www.scmp.com

Xi reverses Hong Kong policy with Alibaba and North Korea in mind
Grand strategy of making Shanghai a financial center paused amid trade war
asia.nikkei.com

China, Hong Kong stocks recover lost ground since re-escalation of trade war
US Fed dovish tone boosts sentiment of traders Hang Seng closes at 28,550.43 – its best level in nearly six weeks
www.scmp.com

Chinese consumers buy more domestic brands in midyear 618 shopping festival as trade war rages on
The 618 festival in June and the bigger Singles’ Day shopping event in November help measure retail health in China
www.scmp.com

Alibaba to build digital trading hub in China’s commodities capital Yiwu
Alibaba Group has entered into a strategic collaboration with the municipal government of Yiwu to launch an Electronic World Trade Platform (eWTP) hub in the city, which is hailed as China’s small commodities capital. Located in the eastern province of Zhejiang, Yiwu exports goods to more than 200 countries and regions. Yiwu’s small sellers will gain access to overseas buyers and digital services and infrastructure.

Briefing: Alibaba to build digital trading hub in China’s commodities capital Yiwu

Alibaba’s ecosystem drives largest-ever 6.18 campaign
Tmall and Taobao have delivered the largest-ever – in both scale and reach – 6.18 Mid-Year Shopping Festival for Alibaba Group, connecting a record number of brands with the largest source of untapped consumption growth in China: the country’s hundreds of still-developing cities.
www.alizila.com

Yiwu, world’s largest wholesale market, joins Alibaba-led EWTP
The Chinese city of Yiwu, the world’s largest wholesale market, has become the country’s second hub in the Electronic World Trade Platform, an Alibaba Group-led initiative that aims to lower barriers to global trade for small- and medium-sized enterprises via e-commerce.
www.alizila.com

Chinese investors shy away from US biopharma startups in 2019
Chinese investment in US biopharma startups down over 80% in 2019 –the span of a year, Chinese investment in US biotech has gone from providing more than 40% of the industry’s venture funding to almost zero. According to Bay Bridge Bio, new US regulations on foreign investments implemented last August are to blame for the decrease. The regulations give the Committee of Foreign Investment in the United States (CFIUS) expanded power to more closely scrutinize foreign minority investments in startups.

Briefing: Chinese investors shy away from US biopharma startups in 2019

China’s premier tells foreign CEOs China will commit to reform, opening up
China will maintain its long-standing commitment to reform and opening up, Premier Li Keqiang told a group of visiting foreign chief executives on Thursday, adding that restrictions on access will be relaxed in more areas of the economy.
www.reuters.com

China’s robot makers are hooked on subsidies, highlighting another red line in US-China trade war
Mentions of ‘Made in China 2025’ may have disappeared, but Beijing and local governments continue to subsidise emerging technologies, sparking US outrage US President Donald Trump has long complained about China’s state subsidies, even accusing Chinese trade practises of ‘raping’ the American economy
www.scmp.com

Following the VC money
Guidance funds, however, are not meant to invest directly in startups. Instead, they provide partial funding to venture capital firms and other funds with the rest of the total formed by “social capital,” i.e. private money.

INSIGHTS | Following the VC money

China’s BeiDou satellite navigation system breaks underwater barriers, naval shipbuilder says
Advances in positioning system ‘could be applied to country’s stealth submarines and subsea drones’
www.scmp.com

Guangzhou grants 20 test licenses to self-driving startup WeRide
The government of the southern Chinese city of Guangzhou on Thursday announced it granted five Chinese self-driving companies 24 licenses to drive autonomous test cars on designated streets. Self-driving startup WeRide secured 20 of them, with the other four licenses granted to Pony.ai, AutoX, DeepBlue, and state-owned Guangzhou Automobile Group. Founded in Silicon Valley in April 2017 by Baidu ex-SVP Wang Jin, Guangzhou-based WeRide says its vehicles have so far travelled 500,000 kilometers (310,690 miles) in China and the US

Briefing: Guangzhou grants 20 test licenses to self-driving startup WeRide

China expert lays out trillion yuan nuclear path for belt and road plan
Senior industry official Wang Shoujun predicts up to 30 reactors could be built over next decade Calls for more financial and policy support for sector to optimise export trade
www.scmp.com

Putin says US tariffs are designed to hold back China’s rise
U.S. trade tariffs and sanctions are aimed at holding China and Russia back, Russian President Vladimir Putin said Thursday. During his annual phone-in with members of the Russian public, Putin said U.S. tariffs on China, and sanctions on Russia’s economy for its annexation of Crimea from Ukraine in 2014, were aimed at holding both countries back.
www.cnbc.com

China’s economic census uncovers more fake data as officials promise ‘zero tolerance’ to data manipulation
Guanghan city in Sichuan province is the latest to have been found to have falsified data by the National Bureau of Statistics Local officials are under pressure to meet economic growth targets for personal promotion as well as the trade war with the United States
www.scmp.com

Officials faked economic data and tried covering their tracks
Officials in a central Chinese city have been found to have gone to extraordinary lengths to fake economic data and try to cover their tracks. The National Bureau of Statistics said that the city, Guanghan, told census staff to create a system that required towns and industrial estates to provide data “matched” to a predetermined target for overall gross domestic product.
www.inkstonenews.com

Chinese P2P lending platforms look to Southeast Asia amid industry purge back home
A slew of Chinese fintech and peer-to-peer (P2P) lending platforms are looking to more lenient markets in Southeast Asia (SEA), following a prolonged industry crackdown in China that has left the sector reeling.

Chinese P2P lending platforms look to Southeast Asia amid industry purge back home

Google rejects employee challenge to China search engine
What happened: At an annual shareholder meeting for Google’s parent company, Alphabet, a Google employee proposed a resolution to publish an assessment of the human rights impact of Project Dragonfly, Google’s secret project to launch a censored search engine in China. Tyler Holsclaw, representing a “coalition concerned about the impact of government censorship and surveillance on human rights,” told his employers that “Google’s powerful technology could give China data that it wouldn’t otherwise get.” Alphabet rejected this proposal along with all others presented at the meeting. Google founders Sergey Brin and Larry Page were not in attendance to hear their employees’ concerns.

Briefing: Google rejects employee challenge to China search engine

Chinese former Interpol president Meng Hongwei appears in court on bribery charges
He admits charges including taking bribes of over US$2 million, according to state-run People’s Daily The chief of the global policing body had last been seen in France last September
www.scmp.com

New acting US defence chief Mark Esper ‘may be tougher on China’
But Pentagon’s approach expected to remain largely unchanged with appointment Along with two decades of military service, Esper is a former chief of staff at conservative think tank the Heritage Foundation
www.scmp.com

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