China Press Review – June 9, 2020

Press review

The Global Economic Outlook During the COVID-19 Pandemic: A Changed World
The COVID-19 pandemic has spread with alarming speed, infecting millions and bringing economic activity to a near-standstill as countries imposed tight restrictions on movement to halt the spread of the virus. As the health and human toll grows, the economic damage is already evident and represents the largest economic shock the world has experienced in decades.   The June 2020 Global Economic Prospects describes both the immediate and near-term outlook for the impact of the pandemic and the long-term damage it has dealt to prospects for growth. The baseline forecast envisions a 5.2 percent contraction in global GDP in 2020, using market exchange rate weights—the deepest global recession in decades, despite the extraordinary efforts of governments to counter the downturn with fiscal and monetary policy support. Over the longer horizon, the deep recessions triggered by the pandemic are expected to leave lasting scars through lower investment, an erosion of human capital through lost work and schooling, and fragmentation of global trade and supply linkages.

World Bank Says Coronavirus To Shrink 2020 Global Output By 5.2%
Global Economic Prospects report, the World Bank said that advanced economies are expected to shrink 7.0% in 2020

Coronavirus: China stimulus policies not enough to boost job growth, steady economy, experts warn
China needs to create at least 10 million new jobs this year to keep the unemployment rate steady, more than the government target, experts say   But annual growth of between 3 per cent to 4 per cent, backed by an additional job-focused stimulus of 3 trillion yuan, needed to reach goal

China lets yuan drop to five-month low on US tensions, uncertain global economic outlook
Against the RMB index, which is made up of a weighted basket of currencies from China’s major trading partners, the yuan has declined for 16 straight trading sessions    The Chinese currency has stabilised against the US dollar in May, but could fall again if Washington takes action over the Hong Kong national security law

China’s globalisation pioneer says it is now time to look closer to home amid US decoupling moves
Wang Jian wrote a famous article in 1988 that laid out the blueprint for China to take advantage of globalisation to become the factory of the world    But now, amid the fallout from the coronavirus, the veteran economist believes it is ‘increasingly urgent’ for China to rely on itself for future development

World economic divide blurs as US, Europe step up state aid and China optimises market efficiency
Western states are ‘nationalising’ wages and revisiting state capitalism while China intensifies its market reforms, offering no wage subsidies or big bailouts – as Covid-19 brings countries closer together on the ideological spectrum

China Telecom, Unicom urge FCC not to halt US service
The China Telecom booth at an exhibition in Shanghai on Sept. 2, 2016. (Image credit: Bigstock)
Chinese state-owned telecommunications companies China Telecom and China Unicom urged the US telecommunications regulator not to revoke their authorization to operate international phone services in the country as relations between the two countries deteriorate.    Efforts to restrict Chinese state-owned telecom companies from operating in the US are intensifying as concerns about national security and Chinese espionage gather momentum

Huawei’s patents on 5G means US will pay despite Trump’s ban
Huawei, the world’s largest telecommunications equipment vendor, owns the most patents on 5G mobile technology, according to a new study    The company has collected more than US$1.4 billion in licensing revenue, it said in a court filing in its patent dispute with Verizon

Chip maker TSMC scores subsidies, picks site for US$12 billion US plant
TSMC’s decision to build a plant in Arizona came after White House officials warned about the threat inherent in having much of the world’s electronics made outside the US     The Taiwanese company is the main contract chip manufacturer to Apple and Huawei Technologie

Alibaba Cloud To Create 5,000 Jobs Globally
Alibaba Group’s cloud-computing division today announced its commitment to hire 5,000 technology staff globally over the course of the next 10 months.   According to Alibaba Cloud, jobs will be created in various areas, including networks, databases, servers, chips and artificial intelligence.

China falling further behind US trade deal energy targets, even as crude oil imports soar to record volumes
China bought record volumes of crude oil in May, but analysts do not expect the US to have been the major provider, despite lofty targets in the phase one trade deal  China is significantly behind on ‘overly ambitious’ energy import targets, but insiders on both sides of the deal suggest agricultural goods are being given a priority

4 new shopping trends revealed in post-lockdown China
Are Chinese consumers really indulging in ‘revenge consumption’ – a phrase coined by Chinese social media users to describe an anticipated flood of post-lockdown purchases – in the post-COVID era?
An analysis of data generated by‘s 618 Grand Promotion – the biggest mid-year shopping festival in China – is a good way to find out. Transaction volumes on on the first day of this event, which kicked off on 1 June, showed an increase of 74% year-on-year, demonstrating a strong recovery of consumer confidence.

China’s Cultural Revolution 2.0: How The Communist Party Is Reviving Its Retail Economy
The differences in behavior during the post-COVID economy is stark between China and the West. Though China is facing a quicker recovery than the rest, discretionary spending continues and offline retail are still making a slow rebound. But with digital vouchers and innovative tactics to inject fresh momentum into the economy and encourage spending, the Chinese market is on track towards a rapid recovery; while consumers in the West are tightening their purse strings and sitting amongst a heap of Chapter 11 bankruptcies. Although seemingly a great initiative to foster small businesses and temporary relief to unemployment, the long-term implications in these newfound formats are yet unknown – especially as model cities such as Beijing are clamping down street vending once again. However, an impact on brick and mortar is expected to evolve from the street stall economy. With easily accessible and mass funding in place, this will spur an uprising in small businesses and entrepreneurship, with an increase of local specialties brewed from small-town provinces. For Alibaba and who have been offering credit for the stock, this can help migrate their merchandises from online to offline as additional retail channels, which in turn can capture growing businesses into their retail ecosystem, and leverage their B2B services in the future

Is it possible to end China’s control of the global supply Chain?
Any broader effort to restructure supply chains is little more than wishful thinking so far, say analysts

How To Make Your Business More Financially Sustainable after COVID-19
Supply chains all over the world have been disrupted by the pandemic, millions of working citizens infected, hundreds of thousands dead, and billions of potential customers rendered jobless. To compound these miseries, most markets are under lockdown, and no one knows for sure when life will get back to normal. The big question now remains: How will business people make their businesses more financially sustainable after COVID-19? Here are 5 measures you can take as a business leader to counter the financial impact of the coronavirus:

Coronavirus vaccine could be ready for emergency use within months, says Chinese expert Zhong Nanshan
Respiratory diseases specialist says developing herd immunity will cost millions of lives, so only the only way to defeat Covid-19 is to inoculate people   Zhong says vaccines for use in emergencies could be ready by autumn but large-scale use could be up to two years away

Coronavirus: Satellite traffic images may suggest virus hit Wuhan earlier
An apparent surge in traffic outside Wuhan hospitals from August 2019 may suggest the coronavirus hit the area earlier than reported, a study says.

Coronavirus crisis recovery is on the way but firms and governments must do their part to protect workers
Returning to status quo while ignoring underlying issues like inequality, protectionism and exploitation of workers will hold back recovery    Governments must not turn a blind eye to firms engaging in radical overhauls and laying off more workers in pursuit of productivity and profits

‘It’s the new Chinese Exclusion Act’: how a Trump order could hurt California universities
Schools fear losing essential source of research talent after president’s decision to ban entry of some Chinese graduate students to US   Order targets researchers associated with institutions linked to Chinese military

China’s Xi Jinping is phoning EU friends rather than Donald Trump – but delicate conversations loom
Investment agreement, 5G and Hong Kong among the sensitive topics ahead of Wednesday’s EU-China dialogue     Beijing’s wish for closer ties to Europe facing test as overtures meet with growing scepticism

EU vows to work ‘constructively’ with China, calls on Beijing to ‘de-escalate’ Hong Kong situation
EU foreign affairs chief Josep Borrell says the two sides agreed to ‘show flexibility’ on pending issues of strategic cooperation deal     He raised Beijing’s lack of progress on economic liberalisation in video meeting with Chinese Foreign Minister Wang Yi

Hong Kong autonomy and the National People’s Congress
Hong Kong’s future is gloomy, but it should not be written off yet. It plays a vital role in the interface between the China and the rest of the world. Its future is not and never could be autonomy and most Hongkongers understand that. It may be that outside forces have prompted some to make such demands and exacerbated tensions. Local protests continue, including observance of the anniversary of the 1989 Tiananmen Square massacre. International action does not help but rather risks dragging Hong Kong into the mess of US–China relations. Hongkongers might achieve better results if left to themselves and using legitimate means.

Expect Donald Trump and Xi Jinping to escalate US-China tit-for-tat this year, with Hong Kong caught in the middle
Both Trump and Xi are likely to deflect attention from the challenges at home by taking a hard line on the other’s country    With an election looming, Trump must take Xi to task on Hong Kong even though this is only likely to steel Xi’s resolve

Beijing fires warning shot as Britain reconsiders China ties
Concerns grow over role of Huawei and plans for Hong Kong national security law    Chinese diplomats have not denied reports that it will retaliate if companies find their activities limited

Senior Beijing official lays out China’s view on national security risks to the nation
The country faces traditional threats but also risks arising from finance and cybersecurity, explains Zhang Yong    The leadership is enforcing a security law on Hong Kong because the city has failed to address the issue since the handover, he says

China’s foreign minister urges Britain ‘to tread carefully’ over HK law instead of interfering
‘Britain must exercise extra prudence on this matter,’ Wang Yi tells Dominic Raab    China tells Britain its national security law will help improve Hong Kong business environment

A perfect storm for fashion marketplaces
In this virtual roundtable, European fashion executives discuss digital acceleration and the role of marketplaces in light of the COVID-19 crisis. They agree that the crisis has accelerated the use of digital and believe that the opportunities and paradigm shifts that have emerged will persevere postcrisis. Companies will communicate, engage, and interact with customers in new ways. At the same time, consumption is changing. Because consumers are looking for purpose and sustainability, a company’s mission is becoming more important than ever. And because the next normal is here to stay, fashion companies must be ready to embrace innovation.

Chinese tech giants’ new market: street vendors
It’s street vendors’ turn to say: ‘sorry, not interested.’

Business Risk Management in China in the Era of COVID-19
Companies are facing significant operational, financial, and strategic challenges due to the COVID-19 outbreak, although the spread of the virus has slowed down and the situation appears to be stabilizing in different regions around the world. As countries restart their economies, businesses need to evaluate the risk of infection and effectively manage their liquidity to survive this difficult period.
Such times of economic turmoil, however, is when most businesses become vulnerable to acts of fraud. In the era of COVID-19, where employees are troubled by travel restrictions and when working-from-home (WFH) is the new normal, multinational companies (MNCs) in China are finding themselves particularly exposed to the risk of fraud. It is thus more critical than ever for them to assess possible fraudulent risks within the organization and see through fraudsters’ schemes in advance

‘New way of life’: pandemic shifts investor preferences in Hong Kong, New York luxury property market
An outdoor area, in the suburbs, closer to nature: homebuyers are looking for a ‘lifestyle change,’ property agents say    Inquiries for Clear Water Bay homes have tripled since January, where prices are half the levels in Island South: Landscope

Hong Kong, Tokyo among world’s most expensive cities for expats
Six of the top 10 most expensive cities for expats are in Asia. Hong Kong claimed the title for the second year in a row, despite being rocked by months of protests. Ashgabat and Tokyo rounded out the top three.

Alain Gillard
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