China Press Review – June 8, 2018

Press review

China May exports rise 12.6 pct, imports up 26 pct
China’s May exports rose 12.6 percent from a year earlier, while imports grew 26 percent, beating market expectations, providing good news for Beijing’s policymakers as they deal with tough trade negotiations with Washington. China posted a trade surplus of $24.92 billion for the month, customs data showed on Friday. Analysts had forecast the trade surplus would increase to $31.9 billion in May from $28.38 billion in April.

China’s Trade Surplus With US Widens
China’s trade surplus with the United States rose to $24.58 billion in May, from $22.15 billion in April, according to Chinese customs data published Friday.

‘Trade tariff threat sets off’ rush in Chinese exports to US
China willing to increase imports to settle the trade disputes, but still concerned by changing US position, analyst says

The paradoxes rule
Some mixed messages amongst the tea leaves this week. The latest Chinese trade data is good, with exports showing double-digit growth. The background to that is the fundamentally solid state of the global economy, particularly the United States. That has good implications in terms of GDP growth prospects for Q2.

The paradoxes rule

Forget Belt and Road, China’s Economic Future Is All About Silicon Valley
Eurasia just doesn’t matter for China the way California does. BRI may be important for China’s old-fashioned exporters of cheap consumer goods who benefit from heavily subsidized overland transport. And it may be important for the state-owned heavy industries that build the physical infrastructure of places like Khorgos Gateway. But it is largely irrelevant for the industries that China is depending on to lead its future economy. China is pushing hard to develop 21st-century technologies like artificial intelligence, big data, blockchain, virtual reality, and the Internet of Things. All of these put it in direct competition with American companies, but also embed it in a shared technological ecosystem with the U.S. So forget romantic notions of reopening the Silk Roads connecting China to the West. The real transnational integration story of the 21st century is Calichina.

SCO a natural partner to the Belt and Road Initiative

“The Qingdao summit will lay out new plans to enhance the synergy of development strategies of member states, especially promoting the construction of the Belt and Road to lift regional economic cooperation,”

Kazakhstan will benefit enormously from Belt and Road initiative
Kazakhstan, the most impressive reformer in the Central Asian region, is set to benefit enormously from China’s Belt and Road initiative as an equal partner, Kate Mallinson of Chatham House said at an international conference marking the 20th anniversary of Astana, on 5 June.

What to look for when the leaders of China, Russia, Iran and India meet for this year’s Shanghai Cooperation Organisation summit
China and Russia’s stance on the Iran nuclear deal will be a top issue at the regional security summit in Qingdao

Russian President Vladimir Putin arrives in China for state visit, security group meeting
Trip comes as both countries forge closer ties amid strained relations with the US

Chinese academics say ZTE case should kill old notion of ‘breakable contracts’
More Chinese companies should examine their compliance practices in the wake of ZTE saga if they want to expand overseas, academics say

ZTE’s chairman vows no more compliance breaches after US deal and apologises
The US agreement imposes a US$1 billion penalty on ZTE and the installation of a US-selected compliance team

ZTE will reopen under US oversight in US$1.4 billion deal – unless US lawmakers spoil Donald Trump’s triumph
The end of sanctions against embattled Chinese telecom equipment maker ZTE resolves an issue that had boosted Washington-Beijing tensions

ZTE Agrees With US Commerce Department to $1.4 Billion in Penalties
Board, Management Changes and Strict Compliance Requirements Are Part of Settlement

ZTE Agrees With US Commerce Department to $1.4 Billion in Penalties

Western cities are struggling to stem the flow of Chinese buyers
Governments have tried taxing foreign buyers Chinese investors drove an estimated $100 billion in property purchases outside China in 2016, the Wall Street Journal reported. Though the foreign capital was welcome after the financial crisis, officials in Canada and Australia are now concerned price bubbles threaten their regional economies, the report said.

Western cities are struggling to stem the flow of Chinese buyers

Why Chinese Tech Firms Are Turning Back to the Domestic Market
An increasingly protectionist U.S. market is encouraging China’s tech companies to focus on a booming industry at home.

Tencent tumbles as US takes aim at Google’s ties with Chinese tech firms
Chinese internet conglomerate Tencent Holdings tumbled on Friday, dragging Hong Kong’s benchmark with it, after the US congress started examining Google’s ties with Chinese technology and telecoms companies such as Huawei, Tencent, and Xiaomi.

Ant Financial Raises $14B In Series C Equity Financing

Alibaba’s financial affiliate Ant Small and Micro Financial Services Group Co., Ltd. announced today that it has entered into definitive agreements with investors for its Series C equity financing totaling approximately US$14 billion. This financing round includes an RMB tranche raised by Ant Financial from domestic investors and a USD tranche raised by Ant International Co., Limited, a wholly owned offshore subsidiary of the Ant Financial, from international investors.

Ant Financial Raises $14B In Series C Equity Financing

Why Facebook’s tie-up with Chinese smartphone giant Huawei is the sum of all fears in US

‘If Facebook granted Huawei special access to social data of Americans, it might as well have given it directly to the government of China’

Ant Financial raises $14 billion in latest funding round as it seeks to expand Alipay globally
The funding makes Ant the world’s largest fintech firm and gives it a war chest for future expansion

Foxconn unit’s shares skyrocket in Shanghai trading debut

Foxconn Industrial Internet Co Ltd (FII), a unit of the world’s largest contract manufacturer, became China’s biggest domestically listed tech company by market cap on Friday as its shares soared a maximum 44 percent on debut.

Xiaomi Said To Be First Chinese Unicorn To Issue Dual-listing CDR
Chinese smartphone and electronics company Xiaomi Inc. has submitted an application with Chinese securities regulators to issue Chinese Depository Receipts (CDR), according to Chinese media reports citing insiders. Xiaomi will be the first company that issues CDRs, having submitted its application immediately after China Securities Regulatory Commission (CSRC) issued trial rules for issuance and trading of CDRs on Wednesday night. It is reported that Xiaomi’s CDR prospectus could be released online as soon as today.

Xiaomi Said To Be First Chinese Unicorn To Issue Dual-listing CDR

China Design Patents: The Info We Need
China IP lawyers have lately been seeing a steady increase in China design patent filings, as Western companies increasingly come to understand the need to be proactive in protecting their IP from China. We file most design patents to protect product designs, but some are filed for defensive purposes. The defensive design patents are filed not so much to protect the filer’s own design, but to prevent Chinese companies from securing and using China design patents to block Western companies from selling in China or even exporting from China.

China Design Patents: The Info We Need

China, India ready to deepen their economic ties
India has been one of the fastest-growing large economies in the world for over two decades. However, the country’s performance in terms of GDP growth and macroeconomic stability has been dwarfed by that of China.

Tokyo and Beijing: the two Asian giants try rapprochement
Security, trade and the thorny Korean question are on the discussion table. Thaw is the result of the tariff war and the new US protectionism. Tokyo has been a trusted economic partner for Beijing, but now China wants to be a superpower. Courtesy of the Jamestown Foundation

Too Dark, Too Sarcastic: State Newspaper Wants Nicer Memes
People’s Daily commentator says kids these days should be more positive online.

Alain Gillard
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