China Press Review – March 13, 2019

Press review

Commission pursues ‘bilateral and multilateral cooperation’ with China as MEPs express deep concern
The European Commission has set out a series of concrete actions to “deepen its engagement with China to promote common interests,” the bloc’s top officials said on Tuesday (12 March). However, MEPs voiced concerns over “embedded backdoors” in Chinese tech that may put personal data in the EU at risk.

EU sets out 10-point plan to balance China economic ties
The European Commission set out a 10-point plan on Tuesday for more balanced economic relations with China, urging EU leaders to back its ideas to curb Chinese state-owned enterprises and increase their guard against cybersecurity threats.

China urges Europe not to turn competition into rivalry
China on Wednesday (Mar 13) urged the European Union not to turn “beneficial competition” between the two partners into a “rivalry” after Brussels outlined a shift to more assertive relations with Beijing.

Outcome of trade talks with China remains in doubt, top US trade official Robert Lighthizer tells senators
Lighthizer, the US trade representative, says headway is being made but ‘there still are major issues that have to be resolved’ If an agreement is reached, he says, ‘it would be 110 to 120 pages’

Ditching the dollar: China on gold-buying spree in shift away from greenback
China’s central bank hadn’t reported an increase in its gold reserves for more than two years before December 2018, when it purchased 9.95 tonnes of the yellow metal.

China made rulings on 40 per cent more intellectual property cases in 2018 – a key area of tension in relations with US
Chief Justice Zhou Qiang says 288,000 first instance IP-related cases were concluded in 2018 – up 41.8 per cent from last year It’s a key area of tension in trade relations between the US and China

More Americans see China’s rising economic power as ‘critical threat’ to US
Gallup world affairs survey highlights increasingly negative sentiments among US public in wake of trade war Number with favourable view of China drops 12 points in the space of a year to 41 per cent

More Chinese in US blocked from working on key technologies
Chinese nationals working tech jobs in the US with national security implications are increasingly being denied government licenses to do so, SCMP reports. “Deemed export” licenses allow non-US nationals access to otherwise classified technology, more than half are generally approved. But as the US-China trade war plods on and bi-partisan concerns linger about China as a competitor in technological dominance, Chinese nationals are seeing their licenses expire without renewal or are being denied licenses altogether. The trend is likely to continue, Doug Jacobson, a lawyer who specializes in the licenses, told SCMP.

Briefing: More Chinese in US blocked from working on key technologies

Can China boost short-term growth while maintaining long-term prospects? Li Keqiang may have the blueprint
By lowering expectations slightly, promising enough reforms to satisfy the US and enough stimulus to stave off a major slowdown, China’s 2019 plans walk a thin – but important – line

China must take lessons from Japan’s lost decade amid slowdown, says former central bank governor
Japan’s lost decade refers to the period of economic stagnation that began in the 1990s, with China currently experiencing its own economic slowdown Zhou Xiaochuan, who served as governor at the People’s Bank of China from 2002 to 2008, was speaking at Chatham House in London

Beijing orders banks to relax bad debt ratio for loans made to small companies
Banks can loosen NPL ratio tolerance for small companies by 3 percentage points, China’s top banking regulator says Move seen as helping to shore up private sector, a generator of 80 per cent of jobs in urban areas

Is China about to bring shadow banking back out of the darkness to kick start its slowing economy?
Government crack down on debt and risky lending also eliminated legitimate funding channels for smaller private sector businesses Government pledging more support for fund smaller businesses, but private sector remains sceptical

Where to Relocate Your Business in China
Where to relocate in China depends on what factors influence an enterprise’s decision to relocate as well as the enterprises’ specific needs. There is no one-fits-all solution for all enterprises.
But in practice, certain places are more likely to be selected when businesses consider to relocate.

How China’s e-commerce playbook can help emerging economies transform
Emerging markets, like China’s, have the advantage of a sizeable young population that is highly adaptable, if not already at home in the mobile digital era. Better yet, by learning from US tech leaders, emerging markets will have the best of both worlds employees to work ‘995’ schedules as pressures mount
Employees of Chinese e-commerce firm have publicized its directive to “make full contributions” to the company by working 12 hours a day, five days a week as competition in the e-commerce sector heats up. employees to work ‘995’ schedules as pressures mount

Baidu chief shrugs off renewed competition in search in China, saying the technology requirements are huge
Baidu has 20 years of experience in search, which has high barriers to entry and requires expertise in artificial intelligence, says Li

Report Mapping China’s Climate and Energy Policies
It serves as a reliable guide to understand China’s climate, energy and environmental policy making process and is widely read by the community working on the issue.

‘It’s obvious you need China’: trader says tariff war must end if United States wants to cash in on booming oil volumes
While American oil for export is up by a million barrels a day, refinement capacity struggles and trade sanctions deny producers access to a big, hungry market

Why is there more dissent inside Beijing’s legislative ‘two sessions’ this year?
Some of China’s signature policies are labelled problematic and a waste of money by delegates, while Premier Li Keqiang’s report is questioned Foreign policy a particular focus of debate, although domestic politics is not

Wang Yang, top Chinese adviser, urges faith in Communist Party’s judgment in face of ‘unprecedented’ challenges
China must be ‘prepared to fight tough battles’ this year, the nation’s largest political advisory body is told on the final day of ‘two sessions’

Chengdu is latest city to roll out 5G in airport
The southwestern city of Chengdu is partnering with Huawei to construct 5G networks at Chengdu Shuangliu International Airport. The deployment of 5G is expected to expedite passenger luggage delivery and surveillance services including face recognition for security purposes. Local units of the state-owned telecommunications operator China Mobile will also participate in the deployment, which is scheduled to come into use by the end of 2019

Briefing: Chengdu is latest city to roll out 5G in airport

5G is Real and Currently in Use… in China!
The test period for 5G technology is almost over in China. The wireless revolution is going to be launched in the Dragon just this year, starting from the Shanghai’s Hongqiao railway station, the first terminal in the world to offer 5G mobile network coverage

5G is Real and Currently in Use… in China!

China may overtake the US with the best AI research in just two years
The number of influential AI research papers coming from China is increasing rapidly, a data analysis shows.

China is catching up to the US in AI research
Chinese researchers have published more AI research papers than the US for several years, but questions have lingered about the quality and influence of those publications. A new analysis by the Allen Institute for AI shows that China’s share of top AI publications is rapidly approaching that of the US. If current trends continue, the two nations will produce an equal share of top AI publications by 2020

China’s foreign investment law will be credible. Xi Jinping will see to it
The Chinese president’s commitment to globalisation, and understanding that China’s credibility is at stake, will ensure the proposed law will indeed curb predatory practices aimed at foreign businesses and level the playing field for them

China’s new foreign investment law is too vague, says US business group
American Chamber of Commerce welcomes legislation ‘in principle’ but says it doesn’t go into enough detail and needs more consultation Legislation is likely to be rushed through rubber-stamp legislature as part of efforts to meet US trade war demands

Are Chinese electric car start-ups doomed after Tesla’s big price cuts?
Tesla’s price cuts have provoked a fierce debate over the maturity of domestic EV industry – especially newcomers Rapid growth in China’s EV market has been driven by government incentives to encourage consumers to shift away from gas guzzlers

Facebook AI executive joins Alibaba
Facebook AI Infrastructure Director Jia Yangqing left the company earlier this month to join an Alibaba research affiliate in Silicon Valley as a vice president of engineering. A person familiar with the matter told China-based AI media entity, Synced, about Jia’s departure, which he later confirmed himself via an update to his LinkedIn account.

Briefing: Facebook AI executive joins Alibaba

Out of Vogue: Chinese Consumers Are Tired of ‘High-Level Faces’
When it comes to connecting with China’s fashionistas, Western luxury and fashion brands aren’t exactly models of success.

Winter, not spring, is coming for Hong Kong’s housing market, says DBS
Hong Kong house prices to drop 10 per cent this year, says Singaporean bank

China has the largest number of property billionaires, as decades of economic growth fuelled urbanisation and demand for a roof over every head
China has 108 dollar-denominated property billionaires, according to Hurun’s 2019 list, led by Evergrande’s chairman Hui Ka-yan, with US$37 in estimated wealth US President Donald Trump’s wealth is estimated at US$3 billion, in 82nd spot

P2P lender Lufax valued at $39.4 billion in latest funding round
Ping An Insurance-backed peer-to-peer (P2P) lender Lufax has raised a $1.3 billion Series C, bringing its valuation to $39.4 billion. Ping An confirmed the funding in its 2018 earnings report on Tuesday. The funding will go into operations, international expansion, and technological innovation—specifically in areas such as big data, AI, and blockchain, according to a market participant.

Briefing: P2P lender Lufax valued at $39.4 billion in latest funding round

How to Tell if Your China Supplier is Going Bankrupt
So I was delighted the when a fellow lawyer sent me the link to a blog post titled, 10 Red Flags Your China Supplier is Going Bankrupt, as this post succinctly lays out the following warning signs for spotting a China manufacturer in trouble:

How to Tell if Your China Supplier is Going Bankrupt

Wind Power Projects Halted in Northwest China
The country’s energy regulator has issued red alerts for two province-level areas in order to prevent excess investment and energy waste.

For Chinese startup Seengene, the future is grounded in mixed reality
The ability of Seengene’s virtual environment to be fully engaged with physical surroundings is based on powerful 3D positioning software. This is the technical crux of Seengene’s multi-million yuan deals with domestic security companies, over 100 tourism sites, and Chinese tech conglomerates like Huawei and Xiaomi. Seengene’s MR glasses, called XMAN, look similar to Google Glass, but the Chinese startup has added a whole new dimension to the facial recognition apparatus by integrating 3D visualization and navigation functions that are dependent on mixed reality technology.

For Chinese startup Seengene, the future is grounded in mixed reality

China transfers US$4.7 billion of PICC shares to state pension fund, part of a programme to shift assets to make up for shortfall
China is facing a widening shortfall in pensions schemes as the population ages and debt pressure rises

Morgan Stanley says Chinese stocks are showing no signs of overheating that could result in repeat of 2015 sell-off
An aggregate measure of China’s market sentiment now stands at 51, far from a reading of 80 that could trigger a meltdown, says Morgan Stanley

Chinese pork ears test positive for African swine fever
A package of cured pork ears produced in China has tested positive for African swine fever (ASF), bringing the total number of such cases to 31, Taiwan’s Central Emergency Operation Center for ASF said Tuesday.

German opposition to Italy’s belt and road deal with China ‘unfair’ says former diplomat
Berlin’s objections unfair, according to former Italian ambassador to China Agreement with China partly due to frustration at lack of EU action in tackling trade deficits

Portugal: A China-friendly EU nation driven by need
When Portugal was facing difficult times, the EU imposed tough austerity measures, while China pumped billions into the country. Now Portugal’s prime minister is speaking out against a tougher EU course against China.

US Secretary of State Mike Pompeo accuses Beijing of creating debt traps and energy blocks in wide-ranging spray
US secretary of state aims both barrels at China in Texas speech to energy chiefs Claims China is preventing neighbours from accessing energy reserves and using its belt and road scheme to exploit poor countries

China using ‘pay-day loan diplomacy’ in the Pacific: U.S. diplomat
China’s is using “pay-day loan diplomacy” to exert influence in the Pacific, the new U.S. ambassador to Australia said on Wednesday, comments that threaten to inflame regional tensions.

French President Emmanuel Macron visits East Africa as China presses on with ‘belt and road’ plan
French president in former colony of Djibouti promising ‘respectful’ partnership Macron commits US$100 million to help landlocked Ethiopia build its navy

Israel expects better trade ties with China under BRI: Israeli official
Israel is expecting better and deeper economic and trade ties with China as the Belt and Road Initiative (BRI) is pushed forward, said a high-ranking Israeli official.

Central/Eastern Europe and Mexico offer strong incentives for Hong Kong manufacturers to relocate factories
Hong Kong Trade Development Council (HKTDC) provides free research into production sites in Belarus and Russia, as well as Czech Republic, Poland, Hungary, Slovakia, Turkey and Mexico

You will soon be able to pay your subway fare with your face in China
Shenzhen’s Futian station is demonstrating 5G-backed technologies including facial recognition and payments China’s consumers are used to mobile payments and facial recognition has been deployed to nab criminals

China is rushing to fix a new population problem
Four decades after declaring a one-child policy China has a new population problem: it looks all but set to shrink. The country saw plummeting birth rates for a second straight year in 2018 and lawmakers are now scrambling to find a fix. At this year’s annual National People’s Congress, delegates from across China urged leaders to take radical steps to “liberate fertility.”

Afford me not: Soaring bride prices in China should be curbed, says parliament delegate
Runaway “bride prices” are making marriage unaffordable in rural China and need to be capped, and professional matchmakers should be stopped from overcharging, says a village delegate to China’s parliament.

The Cindy Yang scandal: when Chinese businessmen buy tickets to Trump events, what are they buying?
Based on my own experience, I know there is a strong demand for a Trump connection from Chinese businessmen and individuals. What they are after is not influence over US politics, but a chance to impress people back home

Alain Gillard
Information Officer
Service Asie Pacifique
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