China Press Review – June 30, 2020

Press review

Goodbye seems to be the hardest word for Europe’s manufacturers when it comes to China’s low-cost labour force and supply chain
Already buffeted by US-China trade tensions, the European Union has stepped efforts to produce closer to home in the wake of the global pandemic, which is causing the steepest recession in almost a century    While drugs and medical gear have been an immediate priority, the initiative is wide-ranging
www.scmp.com

From Australia to India, China’s rifts with major trade partners are a growing economic threat
China has disputes or strained ties with 12 of its top 20 export destinations. While countries individually need China more than it needs them, collectively this argument is harder to make
www.scmp.com

Why US-China supply chain decoupling will be more of a whimper than a bang
While China managed to keep export volumes stable by diversifying to other trading partners, the US’ overall trade balance has deteriorated      Some degree of economic decoupling is under way, but it’s unlikely that a large number of American firms will cut China out of their supply chains
www.scmp.com

European Union ‘deplores’ Beijing’s move to pass national security law for Hong Kong
Brussels says legislation passed on Tuesday ‘risks seriously undermining the city’s high degree of autonomy’       EU is considering its response with lawmakers and international partners
www.scmp.com

National security law: US export controls will ‘hammer Hong Kong re-exports’ and tighten the screw on China
Experts warn US restrictions on sensitive technology to Hong Kong over national security law could ‘hammer the city’s re-export business’    Move comes as export controls on Chinese firms are tightened by the US, further freezing the nation’s access to American hi-tech goods
www.scmp.com

How Hong Kong should cope with the national security law: keep calm and carry on
Given that the law on the mainland targets those who oppose the Communist Party, the same could be expected for Hong Kong    Nevertheless, it would be best for Hongkongers not to panic, but get on with their lives instead
www.scmp.com

National security law: Chinese President Xi Jinping signs legislation for Hong Kong
Xinhua news agency also confirms the new law has been passed by Beijing’s top legislative body   Hong Kong leader Carrie Lam says the legislation will come into effect later on Tuesday
www.scmp.com

Hong Kong’s role in funding Chinese tech firms could be cemented by US-China rivalry, analysts say
Tensions between Beijing and Washington over the Hong Kong national security law has raised questions over the future of the city as an international financial hub    But the likes of Alibaba, JD.com and NetEase have obtained secondary stock market listings in Hong Kong, fearful of losing access to American capital markets
www.scmp.com

China vows to retaliate after US bans defence exports to Hong Kong over national security law
Foreign ministry spokesman says national security law that prompted Washington’s move is purely an internal matter and other countries have no right to interfere    Japan and South Korea join chorus of international concern, with Tokyo saying law will damage international confidence
www.scmp.com

What makes Asia−Pacific’s Generation Z different?
Gen Zers (born 1996–2012) are coming of age. By 2025, the group will make up a quarter of the Asia–Pacific (APAC) region’s population—the same as millennials (born 1980–1995). And as Gen Zers mature, they will make and spend more money. Although Gen Zers share many qualities with millennials, it’s wrong to think of them simply as a younger version. Generation Z has its own unique characteristics. For one thing, unlike millennials, Gen Zers are entering into adulthood during a global pandemic. Still, the demographics are clear: by 2025, the two cohorts will compose half of APAC consumers Obviously, there are massive differences among the six surveyed countries in their population profile (aging Japan versus more youthful Indonesia), economics (Australia’s GDP per head is several times that of Thailand), and history and culture. In specific areas, China shows tendencies that set it apart. Nevertheless, we were able to come to five broad conclusions about APAC’s Gen Zers: They rely on social media but are thoughtful about how they engage with it.  They want it all—and are used to getting it.  They prefer brands that show their personality and uniqueness but that are also well known enough to be recognized.  They are greatly influenced in their brand selection by video content. They want to be seen as environmentally conscious, but they often don’t want to pay for this.
www.mckinsey.com

e-commerce livestream taobao alibaba jd.om pinduoduo
China is taking steps to regulate its booming livestream e-commerce market with the first set of rules for the sector to take effect on Wednesday.
technode.com

China’s advertising industry issues code of conduct for live streaming e-commerce
Live-streamers are advised to cooperate with platforms to censor and manage their interactive sessions with users, according to the notice    The move towards regulation comes after China’s consumer rights watchdog received a surge of complaints
www.scmp.com

Tmall And Taobao Marketing Head On 6.18 Campaign
Alibaba Group wrapped up its 6.18 Mid-Year Shopping Festival earlier this month with new record highs across categories, pointing to strong signs of post-pandemic economic recovery in the world’s second-largest economy.   We sat down with Liu Bo, who oversaw the event and heads up Tmall and Taobao marketing and operations, as he talked about trends in livestreaming, shifts in consumer behavior after Covid-19 and how the health crisis has made this year’s 6.18 a particularly meaningful one.
www.alizila.com

China economy steadied further in June, as slow recovery from coronavirus continued
The official manufacturing purchasing managers’ index (PMI) was 50.9 for June, with a reading above 50.0 signifying growth in factory output   Non-manufacturing PMI was 54.4, with both surveys now reporting positive outlooks for four consecutive months
www.scmp.com

Hong Kong stocks turn in stellar June, gaining 6 per cent in the month, even as China enacts controversial security law
June ends with a 6.4 per cent monthly gain for the Hang Seng Index    China’s better-than-expected June PMI shows economic recovery accelerating
www.scmp.com

Leaving the niche: Seven steps for a successful go-to-market model for electric vehicles
To regain momentum after the COVID-19 pandemic ends, the players in this market must reconsider their strategies.
www.mckinsey.com

Byton, Chinese EV start-up planning US foray, halts operations for 6 months
The suspension starts on July 1 and is set to last six months, closely held Byton told employees in an email    Byton invited employees to resign in writing by June 30 and said it is making efforts to obtain funding to pay salaries owed to workers
www.scmp.com

Why Does Beijing Allow Chinese Exporters To Sell Goods Within the Border?
Beijing’s new guidelines address the disparity of qualities between import and export goods by reiterating “Three Same” — same production line, same standard, and same quality. Unusual times call for Unusual measures. After being battered by COVID-19 since late January, China is quickly adapting to a new normal. Chinese local governments are now hosting shopping festivals, officials are attending livestreaming sessions to drive sales of merchants and are also championing “street stall economy” despite it being previously against city regulations. This week, with the aim to help exporters, Beijing has officially allowed them to produce orders to sell within China.
jingdaily.com

How Will L’Oréal’s Elimination of “Whitening” From Skincare Products Impact Its Chinese Beauty Market?
L’Oréal and several other global cosmetic conglomerates address the use of racist stereotypes in advertising as Black Lives Matter protests continue   The French cosmetic giant L’Oréal announced they will be removing words like “whitening” and “lightening” from all their skin care products. The move comes on the heels of a backlash that a number of beauty brands received for their skin lightening products amidst ongoing protests for racial equality. Another global cosmetic giant, Uniliver, has already announced similar measures, including for its Indian subsidiary, which will now rename its best-selling skin lightening cream to Fair & Lovely. Unilever’s decision comes after Johnson & Johnson announced last week that its brands Neutrogena and Clean & Clear would discontinue skin-whitening creams favored in Asia and the Middle East.
jingdaily.com

Number of Solar Projects Awarded National Subsidies Plummets
The number of solar projects granted subsidies by China’s national government has plummeted this year — as has the amount of money on offer — as the government drive to make the industry self-sufficient continues.A total of 434 new industrial distributed solar projects and dedicated solar power stations have been granted subsidies after the closure of annual auction bids, according to a Sunday notice from the National Energy Administration (NEA). That’s down nearly 89% from 3,921 last year.
www.caixinglobal.com

WHO to send second team into China to seek coronavirus source
As number of cases tops 10 million and WHO warns that the pandemic is far from over, an investigative team will go to China next week  Experts are sceptical that an inquiry more than six months after first outbreak can find definitive answers about the origin of the virus
www.scmp.com

Flu virus with ‘pandemic potential’ found in China
A new strain of flu that has the potential to become a pandemic has been identified in China by scientists.
www.bbc.com

Swine Flu Could Be Humanity’s Next Pandemic, Study Warns
New research suggests that the influenza virus decimating China’s pig herds can be transmitted to — and perhaps even between — humans.
www.sixthtone.com

Beijing doubles quarantine period to 28 days as scientists fear virus may be more contagious than the one in Wuhan
Most people under quarantine in Beijing are workers from the beef and lamb section of the Xinfadi market, which makes them a high-risk group for COVID-19 infection, said Shi Guoqing, an expert from China’s National Health Commission (NHC), at a Monday conference.
www.globaltimes.cn/content/1192999.shtml

TikTok, Shareit, UC Browser among 59 Chinese apps banned by India as border tensions simmer in Ladakh
As tensions along the Line of Actual Control (LAC) with China continues, the Government of India has decided to ban on 59 Chinese apps, including Tik Tok.
www.indiatoday.in/india/story/centre-announces-ban-chinese-apps-privacy-issues-1695265-2020-06-29?fbclid=IwAR1nqZtOafbyTMKY-i_uvHYY_CTc16l9x3W5sg-M9f0kKNsmQhgCJx2NU5o

After Border Skirmish, India Bans 59 Chinese-Developed Apps
TikTok, which has perhaps the largest Indian fan base of any of the listed apps, said Tuesday that it is “in the process of complying” with the ban.
www.sixthtone.com

Indian and Chinese commanders meet as tensions remain high following deadly clash
Senior military figures hold second round of talks following fatal skirmish earlier this month   Incident has inflamed nationalist sentiment on both sides, with India banning popular Chinese apps including TikTok in its wake
www.scmp.com

India-Japan naval exercises: a message for China?
Moves come after 20 Indian soldiers were killed fighting Chinese troops in the Himalayas and amid Beijing’s dispute with Tokyo over the Diaoyu Islands   China’s assertiveness in the South and East China Seas has acted as a spur to bring together India and Japan, analysts say
www.scmp.com

Mercedes-Benz shuts its concept store in Beijing as more luxury brands are expected to follow suit to limit losses from Covid-19 crisis
The German luxury carmaker announced the closure of Mercedes Me Beijing, which boasted a vast dining space serving dishes including hotpot, four days after a new outbreak of the coronavirus in the city       Analysts say more high-end retailers are likely to give up their themed cafes and concept boutiques after sales all but evaporated during the pandemic
www.scmp.com

Taiwan warned against ‘wishful thinking’ that US will come to rescue if China attacks
Su Chi, former secretary general of the island’s National Security Council, says government should not delude itself over America’s ability or willingness to stop a PLA invasion   Su says proposed Taiwan Defence Act should not create false hopes because it raises the prospect that the US is no longer able to react effectively
www.scmp.com

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