China Press Review – June 3, 2019

Press review

WB forecasts China GDP growth at 6.2% in 2019, 6.1% in 2020
The World Bank forecast Friday that China’s economy will grow at 6.2 percent in 2019 and 6.1 percent in 2020. In an external environment that has become less favorable due to slowing global growth and rising trade tensions, China’s economy will need to rely increasingly on domestic demand to sustain rapid growth, according to a report released by the World Bank.
www.shine.cn/biz/economy/1905315798/

China can still achieve its 6-6.5 per cent growth target – if it acts quickly to resolve the trade war
Beijing needs more overall policy loosening and stimulus measures to meet its goal, and Trump’s overzealous implementation of tariffs is China’s chance to prove itself to be a responsible economic power
www.scmp.com

China back as world’s fastest growing economy as India’s GDP growth falters
According to the 2017 World Bank data, China’s economy has ballooned to 12.24 trillion US dollar and is nearly five times bigger than India’s 2.6 trillion US dollar economy.
indianexpress.com

How to React to a China Economy in Decline: The China Lawyer Edition
If you believe China’s economy is still growing at a 6+ percent clip, I’ve got a bridge I’d like to sell you. But how is it that pretty much everybody who follows China knows its six percent GDP growth figure is inflated? Everybody seems to have their own way of knowing China’s economy has been suffering.

How to React to a China Economy in Decline: The China Lawyer Edition

What are the possible economic and business consequences if China’s renminbi deteriorates to 7 per US dollar?
The odds of a tumble beyond 7 within a year have doubled over the past month to 38 per cent, according to data compiled by Bloomberg The currency is down about 2.5 per cent in May, headed for its worst drop since July and the biggest
www.scmp.com

The yuan is creeping toward 7 against the dollar, and that could be a problem for some Chinese firms
nvestors have been keeping a close watch on the Chinese yuan, seen as a key indicator amid the intensifying U.S.-China trade war — and much concern has been centered on whether it will breach the 7 yuan per dollar key level. The currency slide would hurt Chinese firms, as well as Beijing’s push for greater use of the yuan internationally, according to Khoon Goh, head of Asia research at ANZ Bank. A weakened yuan could hit regional currencies and lead to higher costs for those who hold dollar-denominated bonds, said Arthur Lau, co-head of emerging markets fixed income at PineBridge Investments
www.cnbc.com

China: Revising yuan lower but 7.0 should hold
We are revising our USD/CNY and USD/CNH forecasts to reflect expectations for a weaker yuan. This is a result of the rising tensions between China and the US over trade and technology. However, we don’t expect the currency pairs to pass through 7.0. Here’s why
think.ing.com

China could dump $1.12 trillion of US debt. Here’s why it won’t
It’s not even clear that China would be able to manufacture a panic in the US Treasury market. China sold $600 billion of US Treasuries between mid-2014 and late 2016 and yet yields went down, according to Stifel’s Bannister.For instance, there is growing speculation that Beijing will order restrictions on the export of rare-earth minerals that are crucial to the technology and defense industries. And on Friday, China’s Commerce Ministry announced plans to compile a blacklist of foreign companies that violate market rules, a likely response to the US export ban on Huawei.”If the goal is to impair US financial markets,” LeBas said, “selling Treasuries is not the way to do it.”
edition.cnn.com

China’s debt ratio hits record high as efforts to offset US trade war mean ‘there is no such thing as a free lunch’
China achieved a growth rate of 6.4 per cent in the first quarter after Beijing scaled back its deleveraging campaign in a bid to help the world’s second largest economy But China’s debt ratio rose 5.1 percentage points to 248.83 per cent at the end of March, according to a new think tank report
www.scmp.com

China’s slower monetary growth can meet needs of economy: PBOC official
As China’s economy shifts from high-speed growth to high-quality development, economic activity can be sustained by a relatively slower rate of monetary expansion, a senior central bank official said on Thursday.
www.reuters.com

China central bank may open taps with cash shortfall looming
China’s central bank splashed more cash into the banking system this week than at any time in the past four months, but fresh signs of economic weakness and a worsening trade war may raise the chance it will deploy bolder stimulus.
www.reuters.com

Washington is wrong about China’s economy
The US economy is weaker, and China’s stronger, than analysts believe
www.asiatimes.com

China May factory activity shows recovery still patchy – Caixin PMI
China’s factory activity expanded at a steady but modest pace in May, a private survey showed, but analysts say front-loading of exports by firms to the United States to avoid higher tariffs masked underlying weakness in the economy.
www.euronews.com

China’s manufacturing index drops into negative territory in May as economic pressures mount
The manufacturing purchasing managers’ index (PMI), a gauge of sentiment among factory operators, fell to 49.4 in May This was a decrease on April’s performance of 50.1, and below the median expectations of a poll of Bloomberg analysts, which had predicted a drop to just 49.9
www.scmp.com

Will China’s private sector be the big loser in the US trade war fight?
American tariffs are meant to loosen the grip of state firms on the Chinese economy but they could end up having the opposite effect, analysts say
www.scmp.com

Trump’s biggest mistake in US-China trade war: not realising the Chinese will never genuflect again
China’s collective memory of a century of humiliation by foreign powers, beginning with the First Opium War, has steeled its resolve American politicians just do not understand the power of national self-esteem that underpins China’s resilience, writes Leslie Fong
www.scmp.com

Why the US-China tech war spells bigger trouble for investors than the conflict over trade
With many investors overweight on the sector, which has fuelled the decade-long stock market rally, Trump’s focus on technology in his battle with China could hit portfolios hard. However, a sell-off may be what is needed to ease tensions
www.scmp.com

US ‘wholly responsible’ for lack of new trade war talks with China due to ‘contradictory’ statements
China’s Ministry of Commerce spokesman Gao Feng also questions the ‘sincerity’ of the United States after talks broke down at the start of May US President Donald Trump said this week that the US ‘wasn’t ready’ to make a deal with China during a state visit to Japan
www.scmp.com

The bold zero-tariff plan that could settle the US-China trade war in Beijing’s favour
Former official Huang Qifan argues that the elimination of tariffs, barriers and subsidies is key for any country that wants to dominate world trade The so-called zero for zero solution was first proposed by the US back in 2002, originally hoping to reduce the world tariff level to zero by 2015
www.scmp.com

Eyeing China, Pentagon briefs Congress on rare earths report
Document is tied to federal programme designed to bolster US domestic production capabilities Rising US-China tensions have sparked concerns that Beijing could use dominant position as supplier of rare earths for leverage in trade war
www.scmp.com

China’s Rare Earths: Weakness Not Strength
The resulting story for polysilicon will therefore be the same as it has been for rare earths. The production of polysilicon is energy intensive and highly polluting. Since China must import about 90% of the silica sand raw material, the opportunity for profit is even more constrained. Thus, China will export the clean end product to the west at ruinously low prices. Little or no technology transfer will occur. China will be left with the pollution and waste and little else to show for its efforts. The risk to the West will be that it will have lost most or all of its capacity to produce a critical source material. We will then be hearing the same concerns that China has a lock on the product and is using that monopoly for political purposes.

China’s Rare Earths: Weakness Not Strength

What Are We Getting Wrong about the Trade War?
Since the collapse of trade talks in mid-May, voices from both sides have warned of the economic havoc their side can unleash while boasting of their economy’s resilience. Academics in China speak about weaponizing the country’s foreign exchange reserves by selling off some of the roughly U.S.$1.1 trillion China holds in U.S. treasury bonds. Donald Trump says trade tariffs enrich the U.S. government. And countless articles in English and Chinese have argued that one country’s economy—because of the size of its exports or imports, or its government’s ability to plan ahead, or its GDP growthnumbers—is better suited to withstand the trade war than the other. What do observers from both countries get wrong about the economics of the trade war? And what is a better way to explain it? —
www.chinafile.com

In swipe at the US, China says provoking trade disputes is ‘naked economic terrorism’
Zhang Hanhui says use of ‘big sticks’ means everyone loses Regulator says four decades of opening to economic reform has brought progress
www.scmp.com

Cracking the trade war code: why China and the US may quietly reach an agreement
The trade war rhetoric doesn’t reflect the reality of China-US relations. To understand where the two sides are heading, we should consider their economic interdependence, stock markets and coded messages they have been sending
www.scmp.com

The US and China take their rivalry into more dangerous waters after collapse of trade talks
Since the breakdown of the latest round of trade negotiations, the Trump administration has signalled that all-out containment, rather than competition, now guides its dealings with China
www.scmp.com

Trade war with China: dumb and getting dumber
If China did violate World Trade Organization rules and “eat America’s lunch,” and if Huawei does pose a security threat to the US, then it has every right to defend itself. However, all charges of “unfair” trade practices and that the Chinese government “forces” tech firms to spy on the US are nothing more than scaremongering speculations to garner domestic support for a fight with China. Moreover, it is too late for the US to “bring China to its knees” even with the help of its allies without resorting to an all-out economic or even military war. That is a scenario even the China hawks might not have the stomach, for because unlike the powers of the past, the Chinese and US economies are intertwined, and both are nuclear powers with sufficient economic and military resources to cause mutual assured destruction, destroying the world along with themselves. Trump should end the trade war because it unnecessarily puts the US, Chinese and world economies at risk.
www.asiatimes.com

The trade war’s next casualty: corporate profits
Earnings estimates for trade-sensitive sectors have tumbled of late
www.marketwatch.com

Inside Donald Trump’s blacklisting of Huawei: China hardliners prevail in battle between two White House camps
Timing of Huawei punishment ‘suggests strongly that it’s connected to the trade negotiations because there’s no reason why that would have to happen now’ Washington’s getting tough on the Chinese tech giant fundamentally changes the nature of the countries’ trade and tech war
www.scmp.com

Huawei ban: why Asian countries are shunning Trump’s blacklist despite concerns about China’s influence

Fears are growing throughout Asia that a clash of superpowers will end up hurting smaller nations Trump’s decision last month to blacklist Huawei, one of China’s most strategically important companies, has roiled global markets
www.scmp.com

Huawei resets aim to be world’s largest smartphone seller as orders fall
A Huawei executive said the company is now closely assessing the effect of a US government trade blacklist. Zhao Ming, president of Honor, a Huawei smartphone brand, said that it was too early to say when the company would achieve the goal of overtaking Samsung and becoming the world’s largest smartphone vendor. Huawei’s CEO of consumer business Richard Yu said in January that the company would achieve that goal by 2020 at the latest. Huawei’s smartphone manufacturer, Taiwan-based Foxconn, has stopped several production lines for Huawei phones in recent days as the company reduced orders for new phones, according to people familiar with the matter.

Briefing: Huawei resets aim to be world’s largest smartphone seller as orders fall

Huawei loses access to vital chip design updates from Synopsys
Move by US company risks leaving Chinese group ‘in the dark,’
asia.nikkei.com

A Huawei-made operating system: How feasible is it?
Experts say Chinese maker’s Android alternative would likely face frosty reception overseas “I have no doubt the Huawei OS will be a success in China. The overseas market? Not so sure,”
asia.nikkei.com

Why Huawei CEO Ren Zhengfei is reading The American Trap by Frenchman Frederic Pierucci
A book chronicling former Alstom executive’s imprisonment in the US on bribery charges is being read by Huawei employees The American Trap is the top-selling book on Chinese e-commerce sites and goes on sale in Hong Kong on Friday
www.scmp.com

Huawei rivals Nokia, Ericsson no shoo-in for 5G contracts as China seen favouring local champions
Nokia and Ericsson stand to lose ground in China, the world’s largest market for 5G investments over the next few years The bulk of China Mobile’s initial tender for 5G equipment is expected to go to Huawei and ZTE, sources say
www.scmp.com

Huawei loses key 5G network customer as SoftBank turns to Nokia and Ericsson in Japan
SoftBank named Nokia as a strategic partner for its 5G roll-out and Ericsson as a supplier of radio access network equipment Huawei, which together with ZTE was a 4G vendor for the Japanese company, wasn’t selected despite taking part in earlier 5G trials
www.scmp.com

China says it will ‘soon grant’ 5G licenses for commercial use
There’s a widely accepted method to interpret China’s official announcements: the shorter the news, the heavier it is. Today, in one concise sentence, the Ministry of Industry and Information Technology, China’s telecom regulator, announced that it will “soon grant 5G licenses for commercial use.”

China says it will ‘soon grant’ 5G licenses for commercial use

While Huawei will be bruised by tech war, some Chinese suppliers could suffer a knock-out blow
Small Chinese suppliers are worried that wider US-China trade standoff could result in lost orders and business going elsewhere The short to medium-term pain for many small-to-medium sized tech suppliers could be severe
www.scmp.com

Science publisher IEEE ends ban on Huawei employees after protest
The Institute of Electrical and Electronics Engineers (IEEE) said on Monday that it had raised a ban on Huawei employees that blocks them from reviewing submissions to its journals, according to Reuters.
The New York-based professional association said last week that it feared “severe legal implications” for using Huawei scientists as reviewers in vetting technical papers and banned employees of the Chinese telecommunications equipment giant from participating in peer reviews for its research papers.

Science publisher IEEE ends ban on Huawei employees after protest

Huawei quietly opens 5G lab in South Korea
Chinese telecoms equipment maker Huawei launched an open lab for the next-generation 5G wireless network in South Korea on Thursday. The company said it would invest about $5 million in the lab and build a 5G ecosystem through cooperation with local technology and telecom companies. Huawei had initially considered inviting the press to the launch in South Korea, but after the recent blacklisting by the United States, it decided to keep the event low-key and kept the press out. The lab is Huawei’s first open 5G services development center in the world that will allow other companies to test their platforms, according to the company

Briefing: Huawei quietly opens 5G lab in South Korea

China’s retaliatory tariffs on $60bn of US goods set to kick in
Additional duties apply to 5,140 items, including LNG, lumber and wine
asia.nikkei.com

China says US ‘solely to blame’ for collapse of trade talks, but door remains open for negotiation
Beijing says in white paper that despite its efforts to reach a compromise, ‘the more the US government is offered, the more it wants’ Negotiators still ‘committed to credible consultations based on equality and mutual benefit’, but nation will stand firm on ‘matters of principle’
www.scmp.com

Here Are the Most Interesting Items in China’s Trade White Paper
China is ramping up its response to President Donald Trump’s decision to impose higher tariffs on $200 billion of its exports and blacklist national technology champion Huawei Technologies Co.
www.bloomberg.com

China hits back at US with plans for its own ‘entity list’
China is preparing retaliatory measures against a US ban of Huawei by creating its own entity list that would target companies that close off a supply chain or “discriminate” against Chinese companies for non-commercial reasons. Such practices violate anti-trust laws in any country and therefore an “unreliable entity list” will be established with the aim to maintain global trade order and protect the rights of Chinese enterprises in the multilateral trade system, Wang Hejun, a senior government official of the Ministry of Commerce (MOFCOM) said Saturday in an interview in Beijing. Consequences for companies listed as unreliable entities will align with existing guidelines on foreign trade, anti-trust, and national security, said a MOFCOM spokesman on Friday during a media briefing.

Briefing: China hits back at US with plans for its own ‘entity list’

US-China trade breakthrough ‘unlikely’ at G20 meeting between Donald Trump and Xi Jinping
Widely anticipated sideline talks move closer Former Chinese central bank chief hopes for positive news but is not optimistic
www.scmp.com

US-China trade war impact on Japan limited but risks high if United States imposes new tariffs, analysts say
New American tariffs would hit smartphones, computers and other products for which Japan is a large supplier of components and fabricating machines Beijing expected to enact more economic stimulus measures to offset impact of any new American tariffs imposed by US President Donald Trump
www.scmp.com

The real origins of the U.S.-China Cold War
Rallying the same type of support today will require that U.S. officials be realistic about the nature of the challenge and spell out clearly what meeting it will require. It will also require articulating how addressing the Chinese challenge will be central to preserving the relatively stable, open, and democratic world that has taken hold over the past seven decades. And this, in turn, will demand a level of sober but resolved political leadership that has, thus far, been absent in the current administration. The size and scale of China mean that the problems it presents are not going away anytime soon. As during the Cold War, the United States will need a strategy that is as broad and enduring as the threat it is meant to counter.
The Real Origins of the U.S.-China Cold War

Beyond tariffs: China looks for new ways to hit back in US tech and trade war
Ministry of Commerce says it is drafting a list of ‘unreliable foreign entities’ following Washington’s decision to blacklist 70 Chinese companies
www.scmp.com

German supermarket chain Aldi to enter China with two physical Shanghai stores
Fresh fruit and vegetable discount retailer Aldi will debut its first brick and mortar store in China with dual Shanghai openings on June 7 vPrivately-owned retailer has been selling online in China since 2017 via retail platform Tmall Global
www.scmp.com

China UnionPay, the credit card issuer, is expanding in Europe, rolling out debit and credit cards.
The Financial Times, citing China UnionPay, the world’s largest card issuer, reported it inked a partnership with Tribe Payments, a U.K. tech startup, to enable banks and FinTechs to offer individuals and companies branded cards. The program kicks off in June. UnionPay has been in expansion mode around the globe as it aims to take on Visa and Mastercard. The Financial Times noted that in China it has issued more than six billion cards.

China UnionPay Launches Debit, Credit Cards In Europe

One Question, Three Answers: Are Chinese Millennials Willing to Pay More for Sustainable Goods?
“For much larger brands, I think the leading trend is for them to use their capital and influence to educate the consumer about the cost of fashion to our environment, ” said Yufei Li, Guangzhou-resident, Chinese millennial sustainable fashion shopper

One Question, Three Answers: Are Chinese Millennials Willing to Pay More for Sustainable Goods?

Why Most Luxury Brands Fail with Chinese Millennials
Altogether, Chinese citizens represent the biggest group of luxury consumers worldwide. Within them, no other Chinese consumer group buys more luxury than Millennials, who account for roughly 70 percent of luxury sales — and no other luxury market in the world is younger or more digital.

Why Most Luxury Brands Fail with Chinese Millennials

WeWork, Alibaba Cloud partner on initiative to attract global companies
Chinese cloud computing giant Alibaba Cloud, US-based shared workspace operator WeWork, and enterprise consultancy firm Softbank Telecom China announced a strategic partnership on Thursday to launch a service platform to help foreign companies scale in China.

WeWork, Alibaba Cloud partner on initiative to attract global companies

Chinese EV firm Aiways plans to start selling cars in Europe in 2020
This could be the first Chinese-brand electric car sold in Europe Aiways, a four-year-old Shanghai-based EV company, recently told Quartz it plans to start selling its U5 flagship SUV in Germany, France, Switzerland, Norway, and the Netherlands in early 2020. The move would make it the first Chinese EV company to offer its vehicles in Europe. According to Quartz, Aiways plans to sell the U5 directly to customers, and is exploring a partnership with German startup Vehiculum for lease options. The U5 will begin production for China’s domestic market in September

Briefing: Chinese EV firm Aiways plans to start selling cars in Europe in 2020

Tesla announces prices of made-in-China Model 3. At 328,000 yuan it’s 13 per cent cheaper than US imports
Deliveries will start in the next six to 10 months, carmaker says Tesla will take on Chinese carmakers such as Geely and SAIC, and electric car start-ups including Nio and Xpeng Motors
www.scmp.com

More Chinese cities set to join Guangzhou and Shenzhen in increasing car ownership quotas to lift declining sales
Guangzhou and Shenzhen to increase supply of licence plates by at least 42 per cent through 2020 Jefferies says Beijing, Shanghai and other big cities will follow suit soon
www.scmp.com

China’s electric vehicle industry hit hard by policy shift as Beijing turns toward hydrogen fuel
China’s EV automakers are already losing money.China’s electric vehicle (EV) industry has been booming for nearly a decade, with generous subsidies from the Chinese government and state-sponsored marketing efforts. On April 11, the state-run, English-language newspaper China Daily reported that the central authorities’ development plan for hydrogen fuel technology set targets of getting 5,000 hydrogen energy vehicles on the road by 2020, 50,000 by 2025, and 1 million by 2030.
China’s electric vehicle industry hit hard by policy shift as Beijing turns toward hydrogen fuel

China Electric Vehicle Sales Up To 5.4% Market Share
After a first quarter with surging sales, April saw the Chinese plug-in electric vehicle market cool down a little, to some 100,000 registrations. That means it was up only 34% year over year (YoY). Nonetheless, because the mainstream market is still in the red, the April plug-in electric vehicle (PEV) share reached an amazing 6.2%, pulling the PEV market share to 5.4% in 2019 so far, well above the 2018 result (4.2%).
cleantechnica.com

Huawei reportedly eyes smart vehicle market as US ban hits growth
As pressure grows on its global telecommunications business following the US trade blacklist, Huawei is reportedly launching a new smart mobility business unit to produce electronics parts and software for autos, including cloud services.

Huawei reportedly eyes smart vehicle market as US ban hits growth

Shanghai tech board unlikely to challenge Hong Kong’s status as preferred IPO hub for Chinese biotech firms
Investment bankers say US-China trade war may dampen valuations of biotech firm IPOs in Hong Kong, but overall numbers likely to remain intact While Chinese biotech companies are likely to opt for Hong Kong, advanced medical equipment makers may prefer new Shanghai board
www.scmp.com

Hong Kong’s home prices gather speed in April, rising at the fastest pace in more than six years
Price index of used homes jumps 3.2 per cent to 390.5 in April, according to figures from the Rating and Valuation Department April’s rise was higher than the 3 per cent seen in March
www.scmp.com

Foreign investors accelerate selling of China equities in May, as net US$7.8 billion exits via stock connect
Figures for May show 53.7 billion yuan (US$7.78 billion) worth of Chinese equities were soldfrom Shanghai and Shenzhen during the month, more than three times the outflow in April
www.scmp.com

Greater Bay Area a beneficiary as US-China tensions heat up, HSBC adviser says
Domestic consumption in China will be an important factor in the country’s future growth, George Leung Siu-kay says Companies in the Greater Bay Area could benefit as the area becomes more integrated, he says
www.scmp.com

The Future of the Greater Bay Area: High-Tech Manufacturing
Beijing has been planning for the development of a high-tech area in the Pearl River Delta. They called it the Guangdong-Hong Kong-Macau Greater Bay Area in 2017. They clearly look up to the success of the San Francisco Bay area, home to Silicon Valley, and they have been planning to emulate that example. Learn more about it in this post.

The Future of the Greater Bay Area: High-Tech Manufacturing

Prada, Miu Miu to Start Selling on Chinese Luxury E-tailer Secoo
What’s noteworthy about this deal is that it’s still relatively rare for luxury megabrands to team up with third-party Chinese e-commerce platforms nowadays. In a bid to recover from declining profits in China, the Italian luxury conglomerate Prada Group will make two of its key brands – Prada and Miu Miu – available on Secoo: China’s leading luxury e-commerce platform and the preferred online shopping platform for over 27 million Chinese clients with high-purchasing power.

Prada, Miu Miu to Start Selling on Chinese Luxury E-tailer Secoo

Biopharma in China: Insights into a market at a crossroads
Biopharma in China is poised for change that will transform commercial and operating models, and require a step change in capabilities.
www.mckinsey.com

Renewables & Geopolitics: China
In a new interview in a series on renewable energy and geopolitics, Indra Overland describes the possible trajectory of China’s bid to become the world’s solar energy leader. After building a leading position in key technologies and manufacturing, China may find a potential partner in the European Union, especially if the U.S. government pushes forward with its trade war against Beijing, Overland says. Solar and renewables are also helping the country expand its influence in Southeast Asia, fuelling concerns among some of its neighbors, he adds.

Renewables & Geopolitics: China

Beijing warns US farmers may lose China market for good, but plays down tariffs impact at home
Han Jun, vice-minister of agriculture and rural affairs, says Chinese farmers can export products to non-US markets to weather impact of trade war Country will also be able to source enough soybeans to meet domestic demand
www.scmp.com

China asks state media to pick battles carefully with long US trade war looming, sources say
Beijing tells government officials and state media outlets to refrain from generalising US into one single voice opposing China China is preparing for a protracted economic and technological rivalry after US President Donald Trump further escalated the already strained relationship
www.scmp.com

Europe’s search for a China strategy
China’s rise and its geopolitical ambitions have started to manifest more clearly inside Europe, making the need for a China strategy ever more compelling. European unity is key to effectively addressing the challenges posed by Beijing. After years of closer trade and investment ties, the European Union is realising that close economic relations with China have brought about political and security challenges it was not prepared for.

Europe’s search for a China strategy

Europe belatedly turns eastwards
The EU’s lack of a common strategy to respond to the rise of China as an economic superpower suddenly came to the fore earlier this year, as Italy joined China’s Belt and Road Initiative (BRI).
www.ipe.com

France Seeks Overhaul of EU Merger Rules to Fend Off China, U.S.
French Finance Minister Bruno Le Maire will demand an overhaul of the European Union’s antitrust rules that France says leave the continent’s economy and companies vulnerable to U.S. and Chinese rivals, particularly in the digital sector.
www.bloomberg.com

Japanese firms plan exit from China amid US tariffs
A growing number of Japanese companies are relocating their production bases from China to other countries over fears of reduced price competitiveness caused by the expected hike in US tariffs on Chinese goods.
www.straitstimes.com

Making a multilateral Belt and Road
Between 2012 and 2030, China will add 850 million people to its middle class. This is unprecedented in human history, even exceeding the numbers of the European, North American and Japanese industrial revolutions. It is the biggest rolling back of poverty within any nation. China deserves to be taken seriously and have its international personality assessed on available evidence, not framed in advance as something inherently disruptive.

Making a multilateral Belt and Road

Opinion: Belt and Road May Be a Trap, But for China Itself
Critics often claim that China is using its massive Belt and Road Initiative (BRI) as a form of coercive “debt-trap diplomacy” to exert control over the countries that join its transnational infrastructure investment scheme. This risk, as Deborah Brautigam of John Hopkins University recently noted, is often exaggerated by the media. In fact, the BRI may hold a different kind of risk — for China itself.
www.caixinglobal.com

Asia’s shot at global leadership through RCEP
The rapid conclusion of the Regional Comprehensive Economic Partnership (RCEP) agreement is vital for the next stage of regional transformation and reform in the Asia Pacific. RCEP is a proposed free trade agreement between the ASEAN nations and six other regional states. It will help to shore up Asia’s collective interests in defending an open and inclusive trade regime worldwide — with potentially global implications. All of this must be done in a way that constrains China, today’s rising hegemon, in the same way the United States was constrained after 1945. Like the Marshall Plan, the Belt and Road Initiative must enable multilateral cooperation, rather than — as some fear — a development process distorted towards China’s needs. The regional institutions of RCEP will need to manage this process, paying special attention to the role of Chinese state-owned enterprises and to intellectual property issues.

Asia’s shot at global leadership through RCEP

China’s $1.9 Billion Belt-and-Road Rail Project Goes Off Track
Plan to build light railway in Kazakhstan’s capital stalls Kazakhs to fund project after China Development Bank pulls out
www.bloomberg.com

Shangri-La Dialogue: South-east Asia’s cautious embrace of the Belt and Road Initiative
While there is concern about the economic costs and strategic implications of being part of China’s project, talk of a ‘pushback’ is overstated This weekend, defence ministers and senior officials from the region and beyond will be meeting and sharing views at the IISS-Shangri-La Dialogue, a summit that has emerged as an important forum for signalling strategic intent.
www.straitstimes.com

US-Canada relationship ‘never stronger’ says Mike Pence, but Canadians aren’t so sure
US Vice-President meets with Canadian Prime Minister Justin Trudeau to boost trade deal Undermined by President Donald Trump tweet on his way home from Ottawa
www.scmp.com

China sides with Palestinians by snubbing showcase for Donald Trump’s Middle East peace plan
China and Russia will both shun the event after Palestinian Authority complains US president’s pro-Israel policies are undermining a two-state solution Trump hopes to unveil the ‘deal of the century’ at a Bahrain conference, but Palestinian leader Mahmoud Abbas says the plan will ‘go to hell’
www.scmp.com

The Migrant Workers Behind China’s Economic Miracle Are Miserable
Chinese workers who moved from the countryside to urban areas have found social mobility to be impossible.
www.theatlantic.com

‘Competition does not mean conflict’: American defence chief leaves door open to cooperation with China
Patrick ¬Shanahan’s address to Singapore security forum signals Washington’s willingness to ¬engage with Beijing, Chinese colonel says
www.scmp.com

Asia’s Anxiety
The dynamics at play at Asia’s premier security summit only reinforced existing regional worries that the divisions between Washington and Beijing are set to endure
thediplomat.com

Chinese Scholars Protest as Trade Tensions Spill Into Academia
Technical professional organization IEEE has prohibited Huawei-affiliated scientists from editing and peer-reviewing papers for its journals.
www.sixthtone.com

Eight+ Things to Read About China and Other Things, Part 3

Eight+ Things to Read About China and Other Things, Part 3

China targets FedEx over stray packages as new front opens in trade war with the United States
State broadcaster says investigation into US courier company is a warning to foreign firms in China
www.scmp.com

Zhenjiang suicide-watch guard is the human face of the economic malaise that afflicts smaller cities amid the US-China trade war
Jiangsu was 1.3 trillion yuan in debt by June, 2018, the highest among China’s provinces, and Zhenjiang is among the poorer cities in the province
www.scmp.com

China says FedEx probe was launched after ‘complaints from users’
Top postal regulator doesn’t mention Huawei or US trade war in explaining decision to investigate American courier company It comes after Huawei accused the firm of unauthorised re-routing of its packages, saying some were diverted to the US instead of addresses in Asia
www.scmp.com

China Faces a Stronger Japan
With Japan adding 105 more F-35 stealth fighters to its forces, is an arms race in store for the Asia-Pacific?
thediplomat.com

China sends message at Shangri-La Dialogue amid tight media control
Defence minister makes strong statements about Taiwan and South China Sea at regional security forum but format is strictly controlled Chinese ‘negotiated very hard’ with organisers to manage Wei Fenghe’s appearance at the event
www.scmp.com

Why there is only a remote chance of a repeat of China’s Tiananmen protests
Beijing exerts a tight grip over society through police, jailing of pro-democracy advocates and controls on community groups But the country might not be as stable as the authorities claim, a former student leader says
www.scmp.com

China’s defence minister says Tiananmen crackdown was ‘correct’ ahead of 30th anniversary

Chinese defence minister Wei Fenghe said Sunday that the deadly crackdown on peaceful protesters in Tiananmen Square 30 years ago was “correct” and that it had ensured years of stability in the country.
www.telegraph.co.uk/news/2019/06/02/chinas-defence-minister-says-tiananmen-crackdown-correct-ahead/

Chinese warships in Sydney: a surprise for the Australian public, and a show of strength from Beijing?
Prime Minister Scott Morrison says the visit was reciprocal, while to experts it shows China’s ability to carry out naval operations around the world The flotilla has also been described as a ‘public relations disaster’ as it arrives in the wake of other controversies involving Australian and Chinese vessels
www.scmp.com

Live streaming is illegal, China paper says
Live-stream footage requires informed consent for recordings and images of others under Cyber Security Law, People’s Daily warns
www.asiatimes.com

China’s National Soccer Team Accepts First Naturalized Citizen
The appointment of born-and-bred Londoner Nico Yennaris to the country’s top squad has sparked online debate about Chinese identity.
www.sixthtone.com

The Future is Asian’: ‘Crazy Rich Asians’ with infographics
“Let her sleep, for when she wakes, she will shake the world,” Napoleon once commented about China. Two centuries later, the world has seen both China and India advance to global preeminence and, as you read Parag Khanna’s new book “The Future is Asian,” an erudite account of stunning economic ascendancy, it soon becomes clear the book is describing the present.
www.japantimes.co.jp/culture/2019/06/01/books/future-asian-crazy-rich-asians-infographics/#.XPTttRYzY2w

US hawks’ talk of a clash of civilisations is rooted in an intolerance of differences
US State Department official Kiron Skinner’s comments on the US-China conflict being between two vastly different civilisations betray a sense of Judeo-Christian superiority and a lack of understanding of the reality of China
www.scmp.com

10 OF THE BEST NONFICTION BOOKS ABOUT CHINA
Modern China may seem enigmatic, but as the nation’s power and presence in global affairs expand, it becomes more critical for us to understand its place in the world. Here, we have compiled the ten best nonfiction books about China so you may further your comprehension of the country that plays such a significant role in our lives. The list includes books about China’s politics, society, culture, and history, all of which will offer a holistic perspective of the economic powerhouse. Find even more recommendations in our list of books about China’s Cultural Revolution.
bookriot.com

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Information Officer
Awex
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a.gillard@awex.be
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