China Press Review – March 13, 2018

Press review

China Merges Banking And Insurance Regulators To Strengthen Financial Sector Oversight
China announced plans to merge the two regulators responsible for its banking and insurance sectors, creating a new body with enhanced oversight of the two sectors that have a combined US$43 trillion of financial assets.

China Merges Banking And Insurance Regulators To Strengthen Financial Sector Oversight

China’s parliament unveils major ministry shake-up plan
China has said it plans to merge its banking and insurance regulators as part of sweeping changes to its central government structure.

China to merge banking, insurance regulators in massive overhaul
China unveiled plans on Tuesday for the biggest shakeup of government in at least a decade, including the merger of its banking and insurance regulators to better handle financial risks as leaders look to address concerns over a growing debt pile.

Chinese deals in US to keep flowing despite Donald Trump’s halting of Broadcom’s bid for Qualcomm
The US objection to Broadcom’s attempted takeover of Qualcomm put a cloud over potential Chinese asset purchases in America but was not expected to be the death knell

Trump kills US$117 billion takeover of Qualcomm by Singapore’s Broadcom, citing national security threat
Trump had hailed chipmaker Broadcom’s recent decision to relocate to the US, but its bid for 5G wireless tech firm had also stoked China fears

To Fight China on Trade, We Need More Than Tariffs
Broad tariffs alone won’t do anything to stop China’s unfair practices. The U.S. should use every tool in its arsenal.

Bavaria pushes tighter limits on Chinese stake-building -report
The state that is home to many of Germany’s most successful exporting manufacturers will push for tighter restrictions on the ability of Chinese to buy their way into the companies that power Europe’s largest economy, a newspaper reported.

French bank Natixis buying into three M&A boutiques, bolsters China presence
France’s Natixis (CNAT.PA) is buying stakes in three independent boutique advisory firms for an undisclosed sum that will diversify its investment banking activities and bolster its presence in China.

People’s Bank of the world? Next PBOC head inherits global clout
When Zhou Xiaochuan hands over the reins of the People’s Bank of China after 15 years in control, his successor will take charge of a central bank with unprecedented global influence. The economy’s size has ballooned from $1.5 trillion in 2002 when he started

AgBank, the weakest of ‘big four’, to raise US$15.8b in China’s biggest recapitalisation drive
Agricultural Bank of China times its move with regulators’ plans to allow banks more ways to replenish their capital

Cryptocurrency Ban Won’t Undermine Chinese Financial Innovation
Creativity persists in China’s financial markets with the emergence of new products and services.

China IT Ministry to Create Official Blockchain Standards
A Chinese government body is considering creating national standards to boost the development of blockchain and distributed ledger technology (DLT) in the country.

Alibaba Leads $866M Financing Round In Ofo, Increasing Control Of Bike-sharing Firm
China’s bike-sharing firm ofo announced that it has raised US$866 million in equity and debt capital in a funding round led by Alibaba Group Holding Ltd. The deal increases Alibaba’s control over the company and further distances ofo from its major shareholder Didi Chuxing.

Alibaba Leads $866M Financing Round In Ofo, Increasing Control Of Bike-sharing Firm

Germany’s China syndrome
Beijing is rewriting the political playbook and Berlin is lost without a plan, according to Handelsblatt’s international correspondent. The time will come when Germany must take a stand. Could “One Belt, One Road”, and all that Chinese investment in Western firms, be a Trojan horse bearing a Chinese mix of capitalism with political totalitarianism? Even some German business leaders who have long admired the China model as more efficient than the cumbersome decision-making in Western democracies are now having second thoughts. If Mr. Xi can make himself the new Emperor of the Middle Kingdom, it is only a matter of time before he demands the kowtow.

China launches mega aid agency in big shift from recipient to donor
All programmes to come under one umbrella as Beijing nears Washington as the globe’s biggest giver of foreign assistanc

China’s Development Aid Falls amid Switch to Belt and Road
Nevertheless, China’s development banks appear to be pivoting toward BRI countries over others, and also appear to be focusing more on power generation rather than upstream energy activities.

Sino-Russian cooperation and exchange under the Belt and Road Initiative increases
Sino-Russian cooperation and large joint projects under the Belt and Road Initiative have stepped up across the energy, finance, high-speed rail, infrastructure and science and technology sectors over the past decade, which turns the rhetoric of partnership between China and RFE into tangible benefits.

Honeywell, other US companies look to benefit from China’s gigantic ‘Belt and Road’ initiative
China’s “Belt and Road” program is showing up in the earnings calls of some companies around the world, including some in the U.S.

Sino-European Entrepreneurs Summit to take place in France, Switzerland in June
The annual Sino-European Entrepreneurs Summit (SEES) will take place from June 4 to 7 in France and Switzerland, with the goal of strengthening partnerships between Chinese and European business leaders. More than 400 top business leaders from China and Europe plan to gather at the summit to explore commercial opportunities under the Belt and Road Initiative.

Innovation competition in C China to attract overseas Chinese talent
Central China’s Hubei Province will hold an innovation competition to attract overseas Chinese to start businesses in the province, organizers said Tuesday. The competition will focus on artificial intelligence, smart manufacturing and industrial big data, which are of vital importance to the province’s industrial transformation and upgrading

Wind farms operator China Longyuan steps up overseas expansion, follows Belt and Road
Company president says new projects under way in Poland, Serbia, Kazakhstan, Canada and the United States

In China, ‘Xi Forever’ May Not Be Forever, After All
Xi Forever is not Castro’s Cuba. There is an unstoppable culture of capitalism and entrepreneurship in China. Private tech companies have driven much of the new wealth in China. Tencent has over 43,000 well paid, well-educated employees with a net profit margin of 27% as of the third quarter last year. Alibaba has around 50,000 employees today and growing globally.

Commentary: Why U.S. Businesses Should Want Xi to Be China’s President for Life
Xi’s legacy may bring some more surprises to the international community. But given how far the People’s Republic of China has come from its backwater origins, the Chinese government would not rationally want to give up its hard-won gains by turning against itself now the way it once did under Chairman Mao. Therefore, it is a good bet that Xi’s continued rule will simply mean that Chinese policymakers want to follow through on their stated promises to continue their economic development and reforms. Assuming this is true, U.S. businesses can breathe a collective sigh of relief.

China food giant says trade war with US not good for world
China’s biggest food company is sounding the alarm bells over escalating trade tensions with the US, pointing to potential suffering for the global economy and blow back for both countries if agricultural goods are used as bargaining chips in the fight.

CICC, COFCO Said To Invest $2B In JD Finance At $26B Valuation
Chinese investment banking firm China International Capital Corporation Limited (CICC) and China National Cereals, Oils and Foodstuffs Corporation (COFCO) are in talks to lead a RMB13 billion (US$2 billion) round in Chinese e-commerce giant Inc.’s financial services spin-out, JD Finance, according to China Securities Journal, a Xinhua News Agency-controlled newspaper.

CICC, COFCO Said To Invest $2B In JD Finance At $26B Valuation

China slashes ministries in sweeping changes to reduce bureaucracy, end turf wars
More than two dozen ministries, agencies affected in major overhaul designed to give Communist Party greater control

China boosts environmental watchdog’s powers as next step in battle against pollution
Critics warn bureaucratic shake-up is unlikely to be enough to tackle country’s extensive ecological woes

China promotes foreign aid, bolsters environment ministry in government shake-up
China announced Tuesday it will bolster the power of its environmental ministry and establish a new agency to coordinate its foreign aid program in one of the biggest shake-ups of the government structure in decades.

Can China restore its coastal fisheries to health?
Propelled by Deng Xiopeng’s economic reforms, China’s coastal fisheries expanded tremendously, do the point that they are now unsustainable, but will Xi Jinping’s “ecological civilisation” provide an answer?

Guns for Hire: China’s Social Media Militia Engage on Command
How the entertainment industry has become a battleground for China’s legions of paid posters.

China to Implement ‘One Window, One Form’ Policy for Foreign Business Registration
China will implement a “One Window, One Form” policy for registering foreign-funded enterprises, per a recently released circular.

China’s ‘One Window, One Form’ to Streamline Foreign Business Registration

Brooklyn proving most popular area in New York for Chinese homebuyers
Agents say, however, that Manhattan is still the place to invest

China’s Credit Crunch
A crackdown on micro-lending, aimed at protecting consumers, is leaving China’s lower class with little access to credit.

Hermes pockets US$61.2 million profit from sale of retail shops in Hong Kong
The luxury goods maker had bought the four shops in 2002 for US$24.2 million

Chinese History Isn’t Over
Even if the snapshot of the present feels totalizing or overwhelming, the logical consequence of accepting a deterministic view of China today would be to give up on even hoping for a more open China. That would be premature, as well as deeply unfair, to the many people in China who hope to move their society in a different direction. The C.C.P. may try to limit that human agency by crackdowns and restrictions, but can at most constrain rather than destroy it. As we assess China’s future and the future of U.S.-China relations, we must be careful to avoid falling into a habit of denying agency to anyone but Xi himself. Instead, we should fully recognize and even celebrate the human agency that will continue to exist throughout Chinese society, not just in one powerful leader

What does Chinese President Xi’s new longevity mean for the country’s property market?
Being able to stay in office for longer could allow him to push his plans to end speculation, but he still faces the problem of how to avoid damage to a broader economy reliant on property investment

China’s Communist Party Centralizes Power Over Finance and Pollution Control
Beijing plans to reorganize its financial, environmental and anti-corruption agencies as President Xi Jinping solidifies his hold on official levers.

Australia to stress international law in handling South China Sea disputes
Rules ‘designed to regulate behaviour and rivalries’, ensure fair competition, Foreign Minister Julie Bishop expected to say in speech to Asean members

Lenovo adopts Japanese-style quality checks at PC plants
Lenovo Group has introduced rigorous Japanese-style product quality checks at factories in China to address complaints from customers in Japan.

Beijing police order limit on foreigners in university district pizza bars and cafes
Restaurants in Wudaokou in the capital’s north say they have been told to not to allow more than 10 foreigners in at any one time

Chinese culture ministry merger in the works in renewed overseas soft power push
Culture ministry and media watchdog set to become one under government restructure to be announced on Tuesday, source says

Revealed: the far-reaching powers of China’s new super anticorruption agency
National Supervisory Commission ranks higher than Supreme People’s Court and top prosecutors’ office

China to Put Media Under Cabinet-Level Control, Abolish SAPPRFT
China is to abolish the State Administration of Press, Publication, Radio, Film and Television (SAPPRFT) and is expected to set up a new media body answerable to the Cabinet, further tightening the Communist government’s control of media and entertainment.
China to Put Media Under Cabinet-Level Control, Abolish SAPPRFT

Sogou launches Chinese language translator as it goes head to head with Google
Chinese travellers may have one more essential gadget to pack for overseas trips after Sogou, China’s second largest search engine after Baidu, launched an AI-powered language translator, with more than 3,000 pre-sold within the first 24 hours.

Would you choose a partner based on their ‘citizen score’?
Audrey Kuah says Chinese consumers are “optimistic” about the digital economy
Imagine if everything you did on Facebook or Twitter counted towards a government-imposed ‘citizen score’.

Alain Gillard
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Service Asie Pacifique
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