China Press Review – June 24, 2019

Press review

US retail group says extra tariffs on Chinese goods will cost Americans US$18 billion a year
National Retail Federation urges Washington not to impose additional 25 per cent duties on US$300 billion of products from China It says new tariffs threatened by Donald Trump will be passed on to consumers and ‘it’s time to re-evaluate’ the strategy

China: enemy or competitor?
The U.S. tangles with China in the economic space is a fierce, often dishonest economic competitors China a competitor of the United States or an enemy? This is a key distinction. It is the most important geopolitical question of our time. In a high tech knowledge-based world, competitors are a positive, forcing a company or a country to step up their game, just like Android/Google did against Apple. But in a Trump-based twitter/ black and white world, competitors are easily interpreted as enemies with all the danger that implies. And this is especially true when you need an enemy, when the economy might be slowing and an election approaching.

Report predicts China economy to grow at 6.3%
Economists at the Institute for China’s Economic Practice and Thinking at Tsinghua University issued a report on the Chinese economy on Sunday, predicting the economy will stabilize and grow by 6.3 percent this year, meeting the Chinese government’s target of between 6 and 6.5 percent announced in March.

Global recession less likely thanks to loosening monetary policy, Credit Suisse CIO says
Further escalation of trade war, higher oil prices could upset outlook, according to John Woods, CIO Asia-Pacific Credit Suisse sees less than 15 per cent chance of recession in 2020

China confirms President Xi Jinping’s three-day trip to Japan this week
Leader will arrive on Thursday, ahead of G20 summit in Osaka, foreign ministry says He is expected to hold talks with Donald Trump on sidelines of meeting

China can take a tougher stance in trade talks with US at G20, economists say
Think tank at Tsinghua University in Beijing warns measures should not go too far as the ultimate aim is ‘to bring US decision makers back to the negotiating table’ Report says a new round of reform and opening up could be launched to handle efforts to ‘contain China’s development’

China thinks it can weather Trump’s trade storm. It can, but not for long. Likewise the US
Don’t hold your breath for a deal between Donald Trump and Xi Jinping at the G20 summit China thinks its economy can ride out the trade war. In the short term, it’s right. In the long term, not so much. Likewise for the US

China by numbers: 10 facts to help you understand the superpower today
So what’s stopping China reaching the top of the competitiveness league table? The Forum says it needs to promote competition in its domestic market by allowing foreign firms to compete with home grown industries and it calls for action to address “inefficiencies and rigidities in the labour market.”

Trump-Xi Take Center Stage as Central Banks Shift: Economy Week
Central bankers hand back the spotlight to presidents and prime ministers this week as leaders from the Group of 20 gather for a summit in Japan. The highlight of those talks will be the face-to-face meeting between President Donald Trump and Chinese President Xi Jinping. That they are meeting at all was enough to send stocks higher last week. Now there is pressure for the two sides to ensure at the very minimum that their tariff battle doesn’t worsen.

Japan’s growing geostrategic role
The U.S.-China trade dispute has heightened global uncertainty about international trade and its impact on the geopolitical balance of power. Experts are evaluating the Trump administration’s use of tariffs and sanctions as tools of foreign policy, and multinational corporations, international financial institutions, and even governments are recalibrating to their effect on markets.

China and US must both compromise at Xi-Trump meeting, Beijing negotiator says
Beijing should not be only side to make concessions when presidents meet in Osaka, Wang Shouwen says US’ unilateral measures targeting Chinese companies will not help its trade deficit with China, Wang adds

Trump Blacklists More China Tech Companies Days Before Xi Summit
The U.S. put five more Chinese tech entities on a trade blacklist just days ahead of a high-stakes summit between President Donald Trump and Chinese leader Xi Jinping even as it offered a quiet olive branch by postponing a potentially provocative speech.

Beijing wants the US to stop ‘inappropriate’ actions against Chinese firms
The Chinese government would like the U.S. to cancel “inappropriate” actions against Chinese companies, vice commerce minister Wang Shouwen said Monday.

White House seeks to block all Chinese-made gear from US 5G networks
The Trump administration is seeking to require all equipment for next-generation 5G networks used in the US be designed and manufactured outside of China. The move would expand its ban on Chinese telecoms giant Huawei to all Chinese companies, as well as foreign companies that manufacture products in China. Officials are asking telecom equipment makers whether they can develop US-bound hardware including cellular base stations, routers, and switches as well as software outside of China. US officials said they are acting urgently because telecom operators are starting to build their 5G networks to power a “fourth industrial revolution,” which “will be built on the telecommunications networks being constructed today. It is critical that those networks be trusted,” a Trump administration official said.

Briefing: White House seeks to block all Chinese-made gear from US 5G networks

President Donald Trump considers move to require 5G equipment for US sale to be made outside China, report claims
Drastic proposal comes in wake of ongoing dispute between the US and Chinese manufacturer Huawei

Is the G20 destined to fade into irrelevance in a leaderless world – courtesy of Donald Trump?
Trade war is expected to again overshadow the ‘premier forum for international economic cooperation’ US president’s aim is ‘to hijack the summit and divert it towards a confrontation with China’, analyst says

Forget China – it’s America’s own economic system that’s broken
Instead of trying to get China to change, we should lessen the dominance of big American corporations over American policy. China isn’t the reason half of America hasn’t had a raise in four decades. The simple fact is Americans cannot thrive within a system run largely by big American corporations, organized to boost their share prices but not boost Americans.

Vietnam and India see explosion in direct investment from China as tech suppliers shift production overseas, says Goldman Sachs
Vietnam sees direct investment capital from China jump by 4.6 times to US$1.56 billion during the first five months of the year More than 34 listed companies within the Greater China tech supply chain have set up or are building production capacity in Southeast Asia

German economy minister meets Huawei founder Ren Zhengfei for ‘factual’ talks
Peter Altmaier says the Chinese tech company is ‘well aware’ it needs to meet higher security standards to operate in Germany Meeting comes as EU members are due to submit their positions on 5G technology to the European Commission by the end of June

The Trade War Is Exposing What Little U.S. Tech China Still Needs
Intel has one plant in China, but it makes memory chips—a commodity component. Huawei unveiled its first home-grown server chip this year China responded by threatening to blacklist U.S. companies.

Investors get gold fever. But look out if Trump-Xi meeting this week is seen as a big success
Gold has soared since mid-May, amid global uncertainties Xi-Trump meeting this week at G20 could prove a decisive moment. If it is deemed at big success, gold’s appeal could dim

ASEAN summit – Southeast Asian nations wary of US-China trade row
The US-China trade dispute is high on the ASEAN summit agenda. The bloc’s leaders are set to sign an economic partnership deal at their annual meeting in Bangkok, but not all countries want Beijing’s economic hegemony.

There’s a silver lining for India in Donald Trump’s trade war
India has often been accommodative of US trade tariffs, raising hopes for a settlement

The lessons of diplomacy: the Chinese way
Addressing the Central Conference on Work Relating to Foreign Affairs held in Beijing in June 2018, President Xi Jinping put forward his “Thought on Diplomacy of Socialism with Chinese Characteristics for a New Era” to serve as a guide to all those dealing with Chinese diplomacy.

Germany seeks common ground with China amid trade war
Economy Minister Peter Altmaier struck a very different tone from the Americans

Chinese asset buyers unfazed by Brexit drama show strong interest in acquiring British companies
Chinese companies Tencent, Fosun and Cindat have closed deals or are in the process of making investments in the UK in the last few weeks

China wants India to be part of its Asian free-trade pact – flexibility on liberalisation may be an acceptable price
The Regional Comprehensive Economic Partnership is China’s chance to forge a Trump-proof trade deal that can accommodate the Belt and Road Initiative. Patience with India, which wants to protect domestic manufacturing, may be the way forward

What’s the difference between Indo Pacific and Asia-Pacific? Regional control for the US or China
The ongoing debate over how the region should style itself has come into sharp focus as Asean adopted the US-style “Indo Pacific” at its summit Beijing and Washington’s quests for a foothold in the region came to the fore at a round table in Kuala Lumpur

Japan still leads in Southeast Asia infrastructure race, even as China ramps up belt and road investments: report
Japanese-backed projects in the region’s six largest economies – Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam – are valued at US$367 billion, compared with China’s US$255 billion, the figures show

Belt and Road Initiative offers rich pickings for UK financial and professional services
The Belt and Road Initiative (BRI) offers opportunities for UK companies to help provide finance for the Chinese Government’s infrastructure upgrade mega programme.

Belt and Road Initiative offers rich pickings for UK financial and professional services

Carrefour sells 80 per cent of its Chinese retail operations to Suning for 4.8 billion yuan
Suning shares rise as investors cheer the deal Suning says it plans to use its digital technologies to enhance the competitiveness of Carrefour’s 210 hypermarkets nationwide

China’s influencer incubator
How China’s hyper-professionalised influencer market could be a model elsewhere.

How Millennials and Gen Zers are Forcing Luxury Brands into E-commerce
If a company chooses a wait-and-see approach instead of leading the charge into new technology, then they have already lost. Many brands still don’t understand this. For instance, it’s nearly impossible to buy any luxury car online. And the typical reason CEOs and sales directors of luxury car companies give me is that consumers don’t want to buy a luxury car on the internet. However, Tesla already shows that many consumers have no problem paying 150,000 USD or more for a Model X online.

How Millennials and Gen Zers are Forcing Luxury Brands into E-commerce

Alibaba’s Fight Against Counterfeits: Where Are We Now?
Alibaba is boasting a 70 percent year-on-year drop in listings removed from its e-commerce platform in response to consumer complaints of the product being counterfeit. Last week, Glossy reported a bit of good news for luxury brands and resellers around the world: 2018 saw a drop in counterfeit goods among resellers, according to new data from luxury goods authentication platform Entrupy. Things are looking similarly positive for a platform that has faced significant challenges with counterfeit sellers as luxury retailers looked to international online growth — China’s Alibaba.

Alibaba’s Fight Against Counterfeits: Where Are We Now?

The gamification of social values: Alibaba experiments with behavior modification
Four years ago, in a move designed to explore the viability of new offline sales models, Alibaba ran a little experiment. Two of its financial service offerings, Alipay digital wallet and its onboard credit scoring platform Sesame Credit, cooperated in the launch of two unmanned supermarkets.

The gamification of social values: Alibaba experiments with behavior modification

Jinjiang gets on the map as China’s sports shoe capital as Anta, Xtep and 361 Degrees snap up global athletic brands
With a population of fewer than 2 million people, Jinjiang is home to as many as 5,000 shoe producers, employing one in every three local residents The county is home to three of China’s four largest sports shoes makers Anta, Xtep and 361 Degrees, all led by executives sharing the same surnam

Starbucks, Freshippo bring ‘Star Kitchen’ to Beijing
Seattle-based coffee giant Starbucks last week opened its third delivery-focused “Star Kitchen” in China in the country’s capital in partnership with Alibaba’s New Retail-driven grocery chain, Freshippo.

What this year’s 618 shopping craze says about China’s cutthroat e-commerce sector
This year’s mid-year shopping festival, commonly known as “618” in China, came to a close on Tuesday. Since the launch of the event in 2010, Chinese e-commerce companies have raked in billions of Chinese yuan during the buying frenzy. For e-commerce players, 618, which ran from June 1 through June 18, isn’t only about winning Chinese consumers’ hearts and money. Perhaps more importantly, platforms aim to spot the latest trends that could be valuable in molding their strategies in the second half of the year. The high-profile e-commerce event, and others like it, are showdown moments for Chinese companies and those at the helm.

What this year’s 618 shopping craze says about China’s cutthroat e-commerce sector

Beijing eases short-term liquidity for smaller financial firms, orders fifth brokerage in a week to lift fundraising quota
Shenzhen-based GF Securities says quota enlarged to 17.6 billion yuan Beijing working on boosting confidence by easing credit after Baoshang Bank takeover, analyst says

Qu Dongyu becomes first Chinese national to head UN food and agriculture agency
Many analysts had seen Qu as the front runner to win the four-year post, which he will take up on August 1 Beijing has made a big push to get more senior jobs at the UN in the last few years

Shenzhen takes economic top spot – again – but Hong Kong is more liveable, study finds
Chinese think tank puts the southern mainland city ahead of its neighbour on its competitiveness list for a fifth straight year But Hong Kong’s development is the most sustainable and its business environment better than more than 290 others surveyed, researchers say

Greater Bay Area set to boost HK development
The outside world may not be optimistic about the economic prospects of the Hong Kong Special Administrative Region, but a closer look will show Hong Kong’s economic and employment conditions remain sound. And by fully integrating into the under-construction of Guangdong-Hong Kong-Macao Greater Bay Area, Hong Kong can inject new vitality into its economy, especially its job market.

China Southern Airlines eyes world domination as it puts plans to join Oneworld on the back burner
Mainland’s largest carrier content with handful of tie-up with rival airlines Flexibility to ‘cooperate the way we want’ behind decision to forgo alliances, says senior vice-president

Huawei Kirin 810 tops Qualcomm chips in benchmark tests
Huawei’s new 7nm System on a Chip (SoC), the Kirin 810, outperformed Qualcomm’s competing Snapdragon 730 and 855 processors in an artificial intelligence (AI) benchmark test and one run by the Antutu benchmarking software. The chip powers Huawei’s newly announced Nova 5 smartphone, and boasts 64% higher transistor density and 28% higher power efficiency than a 10nm processor. While Huawei has positioned the Kirin 810 as a solid processor for its mid-range handsets, the chip also managed to outperform the flagship Kirin 980 in the AI benchmark test.

Briefing: Huawei Kirin 810 tops Qualcomm chips in benchmark tests

Can China sort its household waste recycling problem by 2020?
After two decades of inaction, Chinese President Xi Jinping has set a deadline for the nation Small, local successes show education is the key

China is waging war on waste and Hong Kong needs to think bigger about how to manage its rubbish
China is banning imports of trash and starting a zero-waste programme for cities. In Hong Kong, the authorities should consider passing a waste separation law if an economic deterrent is not enough to increase recycling rates

Shanghai to punish refuseniks as China orders citizens to separate their rubbish
Fines beckon for individuals and companies who ignore new rules in citywide scheme spearheading national effort Residents express confusion over the four types of household waste

China needs nearly $440 billion to clean up rural environment
China will need to spend 3 trillion yuan ($440 billion) over three years to improve village sanitation and clean up its heavily polluted rural environment, the official People’s Daily reported on Saturday, citing government officials, reports Trend citing to Reuters

China’s pork imports rise to highest since 2016
Year-on-year surge as world’s largest pork consumer stocks up Country’s agriculture ministry confirmed latest case of African swine fever on Friday

podcast : Negotiating In China: Jack’s 10 Rules For Success
Based on 25 years of experience negotiating deals in China, Jack describes his “10 Rules For Success” in this podcast, referencing relevant aspects of the current trade negotiations between China and the United States.

Negotiating In China: Jack’s 10 Rules For Success

FedEx mishandles Huawei parcel, again
FedEx misses delivery of Huawei package to U.S.; China paper says retaliation threatened –American delivery services operator FedEx said it did not deliver a package belonging to Huawei because of an operational error. The package was bound for the US and “was mistakenly returned to the shipper, and we apologize for this operational error,” FedEx told Reuters in an email. State-owned newspaper Global Times tweeted in response that FedEx could be added to China’s entity list, which Chinese authorities announced earlier in June.

Briefing: FedEx mishandles Huawei parcel, again

When it comes to airports and baggage handling, Asia is miles ahead of the rest of the world
The world’s airlines mislaid only 24.8 million bags last year, which is still 24.8 million too many. Fortunately, in Asia, with its modern airports, the mishandling rate is significantly lower than in Europe

Japan to host Xi as state guest in early 2020
This would mark the first state visit to Japan by a Chinese leader in 12 years. Tokyo and Beijing had long held off on top-level meetings amid tensions over Okinawa Prefecture’s Senkaku Islands, which are claimed by China as the Diaoyu Islands. With ties now improving, the Japanese government seeks to continue reciprocal visits by the leaders of the two countries to keep the relationship on an even keel.

Japan needs to end its two-faced China policy
The Chinese government responded to the Japanese gesture in a positive but more restrained way. Shortly after Abe’s declaration that relations were back on track, Chinese State Councilor and Foreign Minister Wang Yi said at a press conference that the two countries were just in the incipient stages of improving relations. More is yet to come, and more needs to be seen.

If Xi can matchmake Trump and Korea’s Kim, why not Iran’s Rowhani too?
Xi Jinping’s Pyongyang visit could see a trade-off between the US-China trade row and denuclearisation, which both Washington and Beijing want Likewise, the US and China can also find compatible and complementary interests in the Middle East, where the US is posturing towards war with Iran

Canada ‘will join US’ in speaking out for rules-based global order against China
Relations between Ottawa and Beijing are at a turning point, according to former Canadian ambassador to China David Mulroney• ‘We are coming to the end of a long period during which China has been allowed to be a free rider,’ he says

Trump calls on China, and the world, to protect their own ships from Iran
President Donald Trump called on Monday for China, and the rest of the world, to protect its own ships traveling through the Strait of Hormuz. The US imports more than 30,000 barrels of oil through the strait

Hong Kong’s home prices are so scary, people will live with ghosts to get a discount
More than half of respondents in a survey by Squarefoot said they would consider living in a home which hid a tragic past – if the price was right Flats which were the scene of a grizzly death generally sell for around a third below market value in the world’s most expensive city to buy a home

Whither ‘one country, two systems’?
If reportedly a quarter of the population of the country or city where you live go out on the streets to demonstrate, there is a serious problem. We can quibble about whether it was indeed two million that demonstrated in Hong Kong on Sunday 16 June, or a half of that or less. But for once the eyes could not lie: the whole of the central area was crammed with people, many of whom had already been demonstrating only a few days before. This explains the impatient tone of some of the pronouncements emanating from Beijing on the recent travails in Hong Kong. Everything now depends on whether Lam’s final withdrawal of the extradition law is enough to placate the very energised and angry protesters in the city. If not, and large-scale unrest continues, then Beijing has the grounds to claim that, for the purposes of stability and to protect their legitimate interests, they must, and will, intervene. A massive symbolic red line would have been crossed. The era of two systems would be effectively over. One country will have prevailed, trumping everything else.

Whither ‘one country, two systems’?

Hong Kong’s extradition protests: one country, two systems and a vicious circle of mistrust with Beijing
Beijing is growing impatient with Hong Kong’s seeming inability to enact the national security law required under its Basic Law And this summer’s mass protests have again revealed a deep schism of distrust between both sides, fuelled by misunderstanding and paranoia

The ritual slaughter of 100,000 animals at China’s Yulin Dog Meat Festival is abhorrent, cruel, and must be stopped forever
Unimaginable that practice is allowed and even celebrated in southern province of Guangxi It is wrong to label event that is only in its 10th year a tradition

Eight+ Things to Read About China and Other Things, Part 6

Eight+ Things to Read About China and Other Things, Part 6

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