China Press Review – June 7, 2018

Press review

The Ripple Effects Of An Economic Slowdown In China
Analysts at Hedgeye have been warning about #ChinaSlowing for six months now. With the world’s second-largest economy beginning to slow, it was bound to adversely affect markets in its orbit.

Collateral Damage
Foreign-Invested Companies Are Major Exporters in China

Collateral Damage

Trump Will Be Standing Alone at G7
G6 Will Be United Against Unfair US Trade Practices

Trump Will Be Standing Alone at G7

Why Europe is pivotal player for China in a three-way trade puzzle
With Beijing-EU talks expected this month, and EU, US and Chinese interests interlinked, taking one side in each battleground risks alienating the third party

US-China trade war could destabilise global economy: Heng Swee Keat
Minister warns of dire consequences in case of miscalculation in US-China trade talks

Trump flouts national security advice in bid to save ZTE
Critics say President Trump is willing to ignore the national security advice of his own intelligence and defence officials in pursuit of a larger trade agreement with China

Trump throws ZTE a lifeline as part of larger China strategy
Press reports indicate that the Chinese telecom giant ZTE has reached an agreement in principle with the Commerce Department that would allow it to resume operations. The deal involves paying an additional $1 billion fine and putting $400 million into escrow as insurance against future fines.

China’s cutback on solar installations erases gains from Donald Trump’s tariffs
First Solar has lost about a quarter of its market value in the past week; SunPower Corp is slumping too, along with big Chinese solar companies that trade in the US and Asia

China puts fight against extremism on regional security summit agenda
Russian President Vladimir Putin among the leaders to attend gathering in the Chinese coastal city of Qingdao

Five ways to boost Taiwan’s economy in the face of China’s overtures and threats
Sonny Lo says Taiwan’s drop in global competitiveness rankings should inspire the island nation to adopt innovative policy measures and cease political bickering

Europe’s belt and road hubs ‘may be new centres for import scam’
EU fraud investigators say Britain-centred scheme to evade taxes on Chinese clothing and footwear may have shifted to Hungary and the port of Piraeus in Athens

China’s Belt and Road: Bigger than the Marshall Plan
The scale of the Belt and Road Initiative (BRI) could have profound economic implications. Developing countries will welcome investment in infrastructure while China will extend its soft power. Here we focus on investment and financing of the BRI and the impact on growth and debt

China’s Belt and Road Could Boost Global Trade by 12%, ING Says
China’s Belt and Road campaign could increase global trade by as much as 12 percent by halving trading costs for countries involved in the sprawling initiative, according to an economist at ING Groep NV.

China’s love affair with oak a mixed blessing for France
While forest owners profit for demand for furniture and floor, sawmills are missing out on the boom

Chinese solar panel makers urge government to delay subsidy cuts
Industry representatives say they still need government backing to compete with traditional power generators

Shanghai’s Green Manufacturing Sector: New Initiatives Announced
Shanghai will promote the development of its green manufacturing sector as a top priority, municipal government officials announced on June 5. Green manufacturing refers to the use of environmentally-friendly practices throughout a product’s life cycle, from design, production, and packaging to application and recycling.

Shanghai’s Green Manufacturing Sector: New Initiatives Announced

Facing up to northern China’s extreme water stress
Policies to better manage China’s freshwater resource are working overall but the north isn’t improving, writes Jiao Wang

As China bans foreign trash, S-E Asia profits
GIANT bales of recycled paper and plastic are piling up across the United States. Six months ago, most of them would’ve been bound for China, the world’s leading importer of recyclables. But earlier this year, China started restricting and even banning some of those imports on environmental grounds. It’s a crowd-pleasing policy for the Chinese government, but the real beneficiaries are up-and-coming South-east Asian economies keen to relocate China’s “workshop to the world” to their own industrial parks.

Luxury Sales Are Rebounding in China. Just Not in Stores.

After several years of slumber, China’s luxury market is finally returning to growth. You would not know that, though, from peering into its — mostly empty — high-end stores.

How would China’s tariff cuts on imported cosmetics products affect brands?

The Chinese government announced on May 30 that it will significantly lower import tariff on many consumer goods. Among them, the average tariff rate for detergents, cosmetics such as skin care and hair care products, and some medicine and health products will be cut from 8.4% to 2.9%.

Chinese Buyers Crave a New Sales Pitch: ‘Experiential Luxury’
When it comes to pitching luxury goods to consumers, it looks like brands need to be trying an ‘experiential’ approach with Chinese buyers.

Chinese Buyers Crave a New Sales Pitch: ‘Experiential Luxury’

China opens avenue for Xiaomi and Tencent to raise funds at home

Overseas-listed tech companies and prominent unicorns will be able to issue depositary receipts

Tencent, Geely Win Joint Bid For China Railway Wifi Provider
Chinese social media giant Tencent Holdings Ltd and automaker Zhejiang Geely Holding Group have won a joint bid to obtain a 49% stake in High Speed Network Technology Company, which provides WiFi and technology services to high-speed rail customers across China

More than 100 Israeli entrepeneurs in talks for chinese investment
The large turnout is a sign of burgeoning east Asian interest in the “Start-Up Nation” – with 70 translators helping to grease the wheels between the two sides.

That’s some pig: How AI’s serving up better pork in China
To address that, Alibaba Cloud has developed its proprietary ET Agricultural Brain. It’s an AI-driven system aimed at helping hog farmers, or any other agriculture enterprises in China, to better raise their livestock and produce crops by using the most-advanced technology.

Guizhou Establishes $470M Big Data Industrial Fund
The government of Guizhou Province, China, has announced plans to establish a RMB3 billion (US$470 million) industrial fund to boost big data development. The provincial government will bring in capital from corporates and set up various sub-funds to invest in different projects. The fund has secured initial funding of RMB51 million (US$8 million) and is expected to grow to RMB200 million (US$31.3 million) by the end of this year.

Guizhou Establishes $470M Big Data Industrial Fund

With sale of Minneapolis tower, disposals at Chinese giant HNA this year cross US$14.5 billion
Office tower sold for US$320 million to Samsung Group subsidiary

New CSRC Rules Allow Overseas-listed Chinese Firms To Raise Money At Home
China’s securities regulator China Securities Regulatory Commission (CSRC) has issued trial rules for issuance and trading of Chinese Depositary Receipts (CDRs), similar to ADRs in the U.S.

Shanghai will host Tesla’s first car plant outside the US, official says
The Chinese ‘Gigafactory’ will produce both automobiles and batteries, a top company official said

Xiaomi to be the first target of China’s unicorn funds, giving mainland investors a taste of marquee IPOs
Six of the first funds will have a combined war chest of 300 billion yuan, more than the sum total of every A-share IPO last year, enough for them to act as cornerstone investors in the biggest blockbuster stock offers

Capital makes port
China’s capital markets have witnessed a number of major reform measures since the beginning of this year. The objectives of these measures are to promote further opening of domestic markets, strengthen connections between domestic and foreign markets, and to attract high-quality, innovative enterprises to list on the A-share markets. These new reforms are crucial steps towards greater openness and transparency.

Capital makes port

For China’s young, seeing poorly is the norm—a little more play could help
And yet, behind the headlines lies a health issue that threatens that future. Simply put: Today, half of China’s 1.4 billion citizens can’t see properly.

For China’s young, seeing poorly is the norm—a little more play could help

China’s internet watchdog clamps down on ‘disrespectful’ advertising
Short video app Douyin, popular news app creator Beijing ByteDance Technology, and search engine operator Sogou among those to have fallen foul of country’s Heroes and Martyrs Protection Law

More Americans flee US consulate in China as mysterious sonic sickness linked to Cuba illness spreads
A US worker and his family were evacuated from the Guangzhou consulate after they had symptoms like those that left 24 people in Cuba with ‘brain injuries’

Spy risk or cultural asset? The divide over China’s Confucius Institutes on US campuses
The debate over the language and culture centres has become a testing ground for the American response to China’s growing global reach

MERICS Interview: Documenting China’s Influence in Europe
The Chinese government’s growing influence over Europe is beginning to receive closer scrutiny, thanks in large part to the work of researchers such as those at the Mercator Institute for Chinese Studies (MERICS) in Berlin and the Global Public Policy Institute (GPPi). MERICS and GPPi jointly wrote a report published in February titled, “Authoritarian advance: Responding to China’s growing political influence in Europe,” which looks at how the Chinese government’s efforts to influence European societies and politics are challenging European values and interests, and offers recommendations on how individuals and institutions can counter such efforts. China’s influence is especially apparent in Central and Eastern Europe, where it competes with E.U. funding for local projects. Andrea Dudik, Misha Savic, and Gordon Filipovic at Bloomberg recently reported:

MERICS Interview: Documenting China’s Influence in Europe

Top Chinese Communist Party cadre criticises Cultural Revolution for damage to tradition

Wang Yang applauds Taiwan for preserving aspects of the past in rare reference to party’s dark past

Fake fingerprints and electronic erasers: how China’s innovative cheats tap hi-tech to beat the gaokao and other exams
Even though cheating on China’s college entrance exam carries a punishment of up to seven years in jail, schemes abound for gaining an edge over millions of candidates

China ‘removes missile systems’ from disputed South China Sea island – but sends warning to US
Satellite images suggest missiles have been moved or hidden, observers say, as foreign ministry says it will not bow to threats of US ramping up patrols

Eastern Chinese City Issues 20 New Rules to ‘Civilize’ Residents
Etiquette instructions tell citizens to be kind, punctual, and less pushy with the booze.

Fame and Futility: China’s Obsession With Guinness World Records
In the world’s most populous country, some will do anything to stand out from the crowd.

Alain Gillard
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