China Press Review – March 20, 2019

Press review

For both Xi Jinping and Donald Trump, the trade war is a test of political will and ideology
Though the reforms that the US demands are also to China’s benefit, both leaders, and the political and economic systems they represent, are so far apart in ideology that an agreement can only come about through compromise. But whose compromise?

US team to fly to Beijing next week for new round of talks to end trade war – as reports say China is pushing back against American requests
US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin to meet Chinese Vice-Premier Liu He Officials had hoped that Donald Trump would be able to host Chinese President Xi Jinping by the end of this month, but talks have bogged down

Trade war: US-China to resume face-to-face talks next week, reports say
China accuses the US of launching the largest trade war in economic history and is unlikely to embrace broader structural changes, which are seen by some as a way to contain its rise. Important sticking points in negotiations include how to enforce a deal and the pace at which the US and China will roll back tariffs imposed over the past year, the Wall Street Journal said. Chinese officials say President Xi Jinping does not want to participate in a summit with Mr Trump unless the main issues in the trade talks are agreed to avoid a situation where Mr Trump could walk away at the last minute, according to the Financial Times.

US-China Trade War Hurting The Global Economy
The US and China are inching toward a trade deal, possibly at the end of next month, but the trade war is hurting global economic growth and the damage from more than a year of punitive tariffs may be difficult to repair

China seeks to avoid fate of Japan in US trade war deal as heavyweight economists gather in Beijing
Mainland economists seek advice from Japanese scholars over trade war experiences after their economic stagnation of the 1990s Beijing is worried that a currency deal with the United States could lead to its export engine losing steam

China may drop Boeing 737 MAX from trade deal with US
Safety concerns after Ethiopian Airlines crash mean the planes may be taken off draft list of American products China would buy to reduce trade surplus Such a move could delay any overall agreement between the two countries

Brussels pushes EU leaders to play public tender card against China
The European Union executive is urging EU leaders this week to get tough on trade with Beijing and use their 2.4 trillion euro (2.04 trillion pounds) market in public tenders as leverage to pressure countries such as China to open up.

EU leaders to coordinate positions on Thursday ahead of China summit
European Union leaders will coordinate their positions on Thursday evening on a number of issues they intend to raise with China at an April 9 summit, including tight cooperation on WTO reform and cyber-security concerns, a senior EU official said.

Brussels pushes EU leaders to play public tender card against China
The European Union executive is urging EU leaders this week to get tough on trade with Beijing and use their 2.4 trillion euro ($2.7 trillion) market in public tenders as leverage to pressure countries such as China to open up. The bloc has sought to avoid taking sides in a multi-billion dollar trade war between Washington and Beijing, but has become increasingly frustrated by subsidies and state involvement in the Chinese economy, and what it sees as the slow pace of change.

The possible impact of China’s Belt and Road agreement with Italy

Italy is set to become the first G7 nation to sign up for China’s controversial Belt and Road Initiative. But what does the agreement mean for the EU and its joint trade plan for China?

China seeks to calm fears of Italian ‘belt and road’ deal as Xi Jinping prepares for visit to Europe
Chinese officials and analysts say Rome’s deal with Beijing is just business Prime Minister Conte says Italy’s relations with EU and US will not be compromised

Italy rattles US and EU with likely support for China’s Belt and Road
Leaders set to endorse Italy’s role in ‘Silk Road’ trade network during Xi Jinping’s visit this week

Angela Merkel resists US pressure to ban Huawei as Germany launches 5G auction
Chancellor says government will tighten network security requirements but not single out individual companies

Huawei leads Asian domination of UN patent applications in 2018
The world’s largest telecoms equipment supplier made a record 5,405 applications, up from 4,024 in 2017

How AI, facial recognition technologies are revolutionising physical security in Asia
Advances in security and surveillance technologies mean the days of elderly guards at establishments are numbered

Chinese consumers – accounting for 33 per cent of all luxury goods spending globally last year – to tighten purse strings in 2019
Spending on luxury goods expected to increase by 10 per cent in 2019, down from 20 per cent in previous two years, says Bain & Company report Millennials new drivers of growth in sector

Half of Chinese Luxury Spending To be Domestic by 2025: Bain & Co.
China’s luxury market grew 20 percent year-on-year in 2018 for the second straight year thanks in part to millennials and women. China’s luxury market grew 20 percent year-on-year in 2018 for the second straight year thanks in part to millennials and women, according to the latest Bain & Company report, “What’s Powering China’s Market for Luxury Goods?”, released on Monday. In 2019, this growth is likely to continue but at a slower rate, indicating that brands should still look to mainland China for continued growth.

Half of Chinese Luxury Spending To be Domestic by 2025: Bain & Co.

Online accounted for 16.5% of total consumer retail sales in Jan, Feb 2019
Total retail sales of consumer goods in China grew by 8.2% year-on-year to US$984.49bn in the first two months of 2019. Over 85% came from urban areas. Online retail sales of goods and services reached US$208.38bn, accounting for around 21.2% of the total.

Chinese economy defies Western misjudgments
With China’s rapid and stable economic growth, its achievements in the past four decades of reform and opening-up are nothing short of a miracle. That is especially true given the fact that every few years, speculation – among the media and even some renowned economists – re-emerges about a coming “China crash”. The truth is, China is the only emerging market economy that has never been stricken by a systematic financial and economic crisis in the past 40 years. What is more, the country played a stabilizing role when crisis occurred elsewhere

Wave of debt washes over corporate China
DBS report warns of another round of corporate bond defaults in the next 12 months

China: Are You China Ready???
Therefore, what technology company with a great product and desire to have a global sales presence is not thinking about taking on the Chinese market? On the other hand, when is it too early to think about China and what do I need to know before doing business with China? Here are some practical considerations to consider when doing business with China and in particular when negotiating with a potential partner in China.

China’s New Foreign Investment Law
Freeman concluded that “most articles within the law lack substantial details and require further clarification. The subsequent provisions of detailed implementation rules, especially their timeliness and interpretive content linking to other laws, will be critical in the successful implementation of the Law.”

China’s ‘unprecedented and sufficient’ tax cut still does not do enough for small manufacturers, owners say
Premier Li Keqiang said last week that Beijing will cut the value-added tax (VAT) rate for manufacturing firms by 3 percentage points to 13 per cent from April 1 Owners play down suggestions it could boost domestic business and aid employment to help offset the slowdown in growth caused by the US-China trade war

Tencent to consider bid for US$3 billion AS Watson stake, as rival Alibaba shows interest
Shenzhen-based Tencent may team up with some investment funds for an offer for the stake in AS Watson

Hong Kong home prices to increase by 15 per cent this year, says Cushman
Easing concerns about trade war, interest rate increases contribute to rebound Prices at City One Sha Tin and Taikoo Shing have recovered by at least 20 per cent in the first three months of 2019

Hong Kong’s property developers should have the sense to go green and protect assets from climate change
Hong Kong, with key assets just above sea level, faces threats from climate change. A new low-carbon charter shows it makes business and political sense to collaborate with Beijing to improve energy efficiency in buildings and reduce emissions

Greater Bay Area too far for young stay-at-homes
Millennials are refusing to move out from where their parents live, let alone out of the city, and officials are fighting the great inertia of a whole generation

China’s first-home buyers, desperate to get on the property ladder, are hoodwinked into signing away their recourse rights
Buyers are asked to sign agreements promising they won’t complain in the event their new home is not up to scratch Price cap introduced in a bid to tame runaway house prices has exacerbated the problem, with developers’ profit margins under greater pressure than ever

East Coast Rail Link deal before belt and road forum? Depends on China, Mahathir says
The Malaysian prime minister says the ball is in Beijing’s court when it comes to the long-stalled project, which he has attacked as being overpriced He now estimates the cost could balloon to US$32 billion – as opposed to the US$13 billion claimed by his predecessor Najib Razak

Chinese Vice-President Wang Qishan says Beijing backs Pakistan’s efforts to manage relations with neighbours
‘No need to read too much into visit’ of Pakistan’s top diplomat, but Islamabad’s fight with India in Kashmir could threaten piece of China’s belt and road jigsaw

China, Pakistan vow to further boost CPEC
Economic growth will remove soil for terrorism: Pakistani politicians Representatives of China and Pakistan attend the First Meeting of the China Pakistan Economic Corridor Political Parties Joint Consultation Mechanism held in Beijing on Tuesday to discuss cooperation and implementation in Pakistan of the China-proposed Belt and Road Initiative.

India signals to boycott China’s Belt and Road Forum for second time
New Delhi did not attend the launch of the Belt and Road forum in 2017, saying CPEC violates its territorial sovereignty

Egypt’s Suez Canal economic zone integrates with China’s Belt and Road Initiative
Egypt’s Suez Canal Economic Zone (SCZone) integrates with China’s Belt and Road Initiative (BRI) that seeks to interconnect and boost global trade, said the Egyptian planning minister in a statement on Tuesday.

Egypt’s Suez Canal economic zone integrates with China’s Belt and Road Initiative

China’s Communist Party introduces another loyalty test, but now cadres are asked to show some initiative too
Regulations governing who gets promotion will also require candidates to be given a clean bill of health by the anti-corruption watchdog Rules show customary hallmarks of Xi Jinping’s efforts to stamp his imprint on party, but one observer warns they could harm morale

Gene editing for human reproduction is ‘irresponsible’, says panel assembled by the World Health Organisation after Chinese researcher He Jiankui revealed his experiment
The experts also called for the UN health agency to create a database of scientists working on gene editing Last year, Chinese researcher He Jiankui rocked the scientific community with his announcement that he helped make the world’s first gene-edited babies

New Book Examines “The Great Firewall of China”
Last Friday saw the publication of “The Great Firewall of China: How to Build and Control an Alternative Version of the Internet” by CNN’s James Griffiths (previously at Shanghaiist and South China Morning Post). CDT read an advance copy, and found it a “vivid and compelling account [which] untangles the complex evolution of China’s internet controls, providing both valuable context for recent events and a solid foundation for understanding future developments.” Besides chronicling past developments within China, the book stands as the latest in a growing chorus of warnings about the expanding global reach of China’s digital controls and its role as a source of inspiration and technology to other countries.

New Book Examines “The Great Firewall of China”

On Exhibit: Street Art Without Heart
China’s museums and galleries have fallen in love with graffiti and street art, but when all is sprayed and done, many formal exhibitions are just an empty can.

One in five Chinese children is overweight or obese, and the booming economy may be to blame, study reveals
The research, published Tuesday, found that while China’s rapid economic growth over the past two decades had been accompanied by a reduction in childhood growth stunting and thinness, the country has also seen a four-fold rise in the number of overweight and obese children.

Chinese group including Everbright Securities sues after US$1 billion European sports deal goes bust
The consortium that owned MP & Silva is suing the founders of the collapsed European sports rights firm after losing hundreds of millions of dollars Chinese investors took over or acquired stakes in European football teams, including Aston Villa, West Bromwich Albion, Wolverhampton Wanderers and Southampton in England, Italy’s AC Milan and Inter Milan, Spain’s Atletico Madrid, and Slavia Prague in the Czech Republic. Not all the investments were deemed successful, and some have been reversed, with the Atletico Madrid stake subsequently being sold, and Tony Xia giving up control of Aston Villa.

China lags behind Western countries in terms of EICI
China is ranked 20th in the Education International Competitiveness Index (EICI) among 38 countries, which shows a big gap between China and countries with strong education, according to a research report released by Changjiang Education Research Institute on Tuesday.

US accuses China and Russia of undermining space peace push
Comment came as China, Russia and US joined space peace talks in Geneva

Swedish ambassador to China investigated for security breaches in Gui Minhai case
Prosecutors confirm Anna Lindstedt has been recalled to Stockholm Inquiry follows claims by Gui’s daughter about discussions with Chinese businessmen

Could China’s ‘experimental’ ship be the world’s biggest nuclear-powered icebreaker?
State-owned firm China General Nuclear Power Group invites bids to build vessel similar in size to Russian nuclear icebreakers Project could be stepping stone to building nuclear aircraft carriers

Alain Gillard
Information Officer
Service Asie Pacifique
Place Sainctelette 2
1080 Bruxelles
Tél 02 421 85 09 – Fax 02 421 87 75
Copyright © 2019 awex, All rights reserved