China Press Review – June 3, 2020

Press review

Stronger action may yet be needed to help revive China economy
Beijing has so far taken a restrained approach with a coronavirus pandemic relief package worth 4 trillion yuan to help businesses cut costs, save jobs and maintain people’s livelihoods

China’s clear message: jobs and stability now take the lead in economic growth
Growth is now a consequence of economic and social stability rather than other way around. Still, given the proposed budget deficit and stated aims to create and preserve jobs, China’s economy needs to grow at least 2 per cent   Growth may return as early as the second quarter but, if needed, China has left policy room for further easing and stimulus

China’s services sector shows strong first growth since start of coronavirus outbreak as controls eased
The Caixin/Markit services purchasing managers’ index (PMI) rose to 55.0 in May from 44.4 in April, hitting the highest level since late 2010 The return to expansion for China’s services sector was driven by a sharp rise in new domestic business as the economy recovers from virus containment measures Foreign demand, however, remained subdued as the pandemic hit China’s export markets hard, with the subindex for export orders falling for the fourth month in a row. Employment in the sector also continued to contract, albeit at a slower pace.

How the coronavirus pandemic could provoke a ‘Great Reset’ of capitalism across countries and sectors
Global leaders must steer the market towards fairer outcomes, ensure stimulus programmes support equality and sustainability, and use the innovations of the fourth industrial revolution to address health care and social challenges

How coronavirus pandemic has derailed Asia’s booming online lending industry, much of it backed by Chinese money
In India there are nearly 500 online lending start-ups, and roughly 160 in Indonesia  But as economies across Asia went into lockdown to limit the spread of the new coronavirus, many borrowers defaulted

Time to work with Asian partners on a global COVID-19 recovery strategy
As the world contemplates the savage impact of the COVID-19 virus on the global economy, there’s need to seize initiative in global cooperation to escape the slump caused by the health lockdown. International economic cooperation will be vital to managing the crisis and to supporting the recovery through trade, stabilising markets, faster reopening of business supply chains and international travel. Without it, the world is facing a prolonged health crisis and lasting economic stagnation on a scale not seen since the Great Depression.

Dealing with the Chinese economy after COVID-19
As the COVID-19 crisis begins to dissipate in China, a new challenge is emerging for the country; global selective decoupling from the Chinese market, Stephen Nagy and Hasumi Tani write.

Digital economy’s growing role in rescuing the real economy: China Daily contributor
In the article, the writer says that as new business models such as AI, big data and the internet of things are booming, the digital economy will lead China’s growth in the post-virus era.

Huawei snubbed by Canadian mobile network operators ahead of Trudeau’s crucial 5G call
Mobile network operators BCE and Telus Corp have selected European telecoms equipment suppliers for their 5G infrastructure       Those actions come ahead of Canadian Prime Minister Justin Trudeau’s decision on whether Huawei will take part in the country’s 5G roll-out

Taiwan dangles US$335 million to woo foreign chip makers
The seven-year plan aims to subsidise the research and development costs incurred by global chip companies that build centres on the island   The programme would also apply to local chip firms that convince foreign suppliers to establish such operations in Taiwan

US and China headed for ‘very different semiconductor stacks’
Can China gain semiconductor independence while the US escalates the “Great Chip War”? “It’s going to be a big hit while China works it out,” TechNode contributor Stewart Randall said at a webinar on May 28, “but given time and money, yeah, it’s possible.”  Randall discussed the US “Export Ban 2.0” against Huawei with fellow TechNode contributor Jan-Peter Kleinhans at the second installment of the monthly “Tech After Hours” webinar series. With that ban, the US said, “you think you’re ahead of us, but I’m going to prove you wrong,” said Randall, who is head of Electronics and Embedded Software at Intralink.  “It would be really hard for Huawei to go around this ban,” said Kleinhans, director of the Geopolitics and Technology project at the Berlin-based Stiftung Neue Verantwortung. But in the long run, he said, “I don’t think any country, China included, will be held back.”

How Chinese Companies Are Getting Off Social Credit Blacklists
China has created a social credit system that punishes businesses for bad behavior. But for some firms, escaping the dreaded blacklist is surprisingly easy.

Coronavirus, China-US trade war spark surge of Taiwanese investments onshore
China’s lure as the world’s factory is declining for Taiwanese companies, which are increasingly choosing to make investments at home    Tax breaks in Taiwan, trade war tariffs and supply chain vulnerabilities exposed by the coronavirus pandemic are making China increasingly unappealing

U.S.-China Tension Escalates: Headwind For Markets And Economy?
Does the report of China pausing the purchase of soybeans from the U.S. signal trouble for trade deal? Impact of the removal of Hong Kong’s preferential status with the U.S.    Outlook for China’s economy.

Coronavirus, China-US trade war spark surge of Taiwanese investments onshore
China’s lure as the world’s factory is declining for Taiwanese companies, which are increasingly choosing to make investments at home    Tax breaks in Taiwan, trade war tariffs and supply chain vulnerabilities exposed by the coronavirus pandemic are making China increasingly unappealing

China’s sugar industry ‘panics’ as Beijing removes protective tariff in a bid to plug shortage
In a bid to fill a shortfall in sugar demand, China has let a safeguard tariff lapse, meaning foreign imports will now be cheaper to buy    Local industry ‘panicked’ by the move, which may put a stop to widespread smuggling of sugar along China’s border regions

In pandemic lesson, German drug maker Stada banks on China for raw materials, supply chain security
Stada seeking partnerships in mainland to bolster raw material supplies, sales in Asia’s biggest pharmaceutical market    Move in Asia follows recent aggressive acquisitions of assets in Russia, Ukraine markets

5 Successful Cosmetic Brand and Food Collaborations for Chinese Gen Zers
How to create a successful food x beauty collaboration? Jing Daily reviews five beauty brands and food collaborations that attracted the Chinese Gen Zers.  At first glance, food and beauty products seem like an unlikely match to create buzz-worthy merchandise. But by being able to combine two popular interests of Chinese Gen Z consumers not only has the possibility to bring like-minded people together, but also continues to push the creative envelope for those looking to keep this lucrative consumer base engaged.

How COVID-19 Reshaped This Part of China’s Influencer Economy
 “MCNs can no longer just make up the number with a KOL who’s under-trained or just looks pretty because brands are placing higher standards on content,” said Kira, a blogger and an MCN-owner.

Will Covid-19 reshape the retail landscape forever?
While the local coronavirus outbreak is showing signs of levelling off, public health experts suggest that people remain vigilant and maintain social distancing. As more consumers realise that they can continue getting what they need without going into a store, it begs one big question: will Covid-19 transform customer shopping habits forever?

Singapore to gradually reopen borders from June 8, starting with ‘fast lane’ arrangements with China
From next Monday (June 8), Singapore will gradually reopen its borders, by first allowing essential business or official trips between the country and six provinces in China. Under a “fast lane” arrangement which was announced on May 29, the provinces involved are Shanghai, Tianjin, Chongqing, Guangdong, Jiangsu and Zhejiang, with more to be added to the list over time.  On Wednesday, the Ministry of Foreign Affairs (MFA) and the Ministry of Trade and Industry (MTI) released the start date as well as other details of the arrangement.

Coronavirus: Australia set for first recession in three decades
Australia is set for its first recession in 29 years as the country feels the impact of the virus pandemic.

President Trump to Ban Passenger Flights Flying from China to America: Report
President Donald Trump’s administration plans to bar Chinese passenger carriers from flying to the United States starting in mid-June as it pressures Beijing to allow U.S. air carriers to resume flights, three U.S. and airline officials briefed on the matter told Reuters.  The move, set to be announced on Wednesday, penalizes China after Beijing failed to comply with an existing agreement on flights between the world’s two largest economies. Relations between the two countries have also soured in recent months amid escalating tensions surrounding the coronavirus pandemic.    The restrictions are expected to take effect on June 16 but the date could be moved up by Trump, the people briefed on the matter said, speaking on condition of anonymity. Delta Air Lines and United Airlines have asked to resume flights to China this month, even as Chinese carriers have continued U.S. flights during the pandemic.

China’s relations with the US are at their lowest for 30 years, but don’t call it a new cold war
Far-flung proxy wars and ideological competition that defined US-Soviet competition after World War II are missing in current landscape     Deterring where necessary and bolstering international institutions are preferable to drawing another iron curtain across the world

China plays it cool despite ‘alarm over India border stand-off’
Confrontation comes as Beijing grapples with challenges on all fronts, including US    But neither side likely to escalate tensions, observer sa

Make in India vs Made in China: Who outweighs the other?
India has to assess whether it is time to look the dragon in the eye, or face the mirror.

Beijing hits back after Boris Johnson promises to relax British visa rules for Hongkongers
London should ‘abandon its Cold War and colonialist mentality’, foreign ministry says   Britain has ‘recklessly commented on Hong Kong and made groundless accusations to interfere’ in its affairs

Why a national security law does not threaten Hong Kong’s autonomy or violate international agreements
Hong Kong has more autonomy than US states and strong protections for human rights. The proposed national security law is restricted to four crimes    It is not the first regulation governing the relationship between Hong Kong and China to be listed in Annex III of the Basic Law

Beijing has heard opinion of Hong Kong people and remains ‘very firm’ on national security law for city, Carrie Lam says after visit
The central government is looking to safeguard national security as well as the city’s stability through the new law, according to the city’s chief executive    Vice-Premier Han Zheng has reiterated the legislation will only target ‘a small minority’ of criminals, she says

Hong Kong’s Tiananmen vigil has been banned, but the city’s spirit of commemoration for June 4th shines on
The cancellation of the event amid the Covid-19 pandemic has raised fears it will be permanently scrubbed from the political calendar    The vigil is under a fresh spotlight this year as Beijing moves forward with a tailor-made national security law for Hong Kong

South China Sea: United States urges United Nations to reject China’s claims
US adds its voice to objections from Southeast Asia to Beijing’s assertion of maritime sovereignty over the contested waters   American ambassador echoes Indonesian suggestion that Chinese claims do not comply with international law

Alain Gillard
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