China GDP: nation to lead East Asian, Pacific economic recovery in 2021 with 8.1 per cent growth
World Bank’s latest East Asia and Pacific Economic Update predicts China’s economy will expand by 8.1 per cent in 2021. China’s central bank estimates the maximum the economy can expand without fuelling inflation, known as the potential growth rate, is under 6 per cent in the next five years.
EU and US similar, but split on China, Merkel says
German Chancellor Angela Merkel made the comments after Joe Biden joined a summit of EU leaders — the first time in 11 years a US president has joined.
Common Restructuring Options for Businesses in China
While a successful restructuring strategy can put the company in a better position to achieve its goals through greater operational efficiency, not all such undertakings end well. Many factors will determine the effectiveness of a company restructuring plan, key among them being how the plan is interpreted by relevant stakeholders and implemented in practice. It therefore helps when businesses have a good understanding of the challenges that can surface in each restructuring option and choose the most appropriate strategy for their entity. In this article, we explain the various restructuring options open to companies in China and how businesses can assess their feasibility.
How China’s fragmented bureaucracy works to Ant Group’s advantage
It remains to be seen whether the central bank will get its way First, the PBOC’s recent draft guidelines, by preemptively defining the relevant market for determining a monopoly in the payment industry, appear to encroach upon the regulatory turf of the SAMR. Second, the SAMR’s interests are not perfectly aligned with the PBOC’s. As a market regulator, the antitrust authority needs to consider the impact of its rules and enforcement on the whole economy rather than a particular sector. Indeed, any decision it makes will likely create an informal precedent that might create constraints regarding future decisions. Third, some of the PBOC’s proposals, such as introducing the breaking up of a company as a new form of remedy, goes beyond the existing antitrust regulatory framework. In fact, China’s Anti-Monopoly Law does not even provide the option of carving up a business for abuse of monopoly power. The PBOC’s draft rules are only a departmental guideline and have no authority to contravene this national law. The reasons outlined above explain the rather cautious attitude the antitrust authority has adopted toward data regulation. In the finalized version of its antitrust guidelines for internet platforms, the SAMR removed a controversial provision relating to data, which would have placed companies such as Ant and Tencent in a highly unfavorable position. Whether the PBOC gets its way with this latest blast against Ant remains to be seen. Ant certainly has many changes to make to get Beijing regulators off its back, but the central bank’s advocacy on behalf of state-owned banks can only go so far.
China digital currency to ‘provide backup’ for Alipay, Tencent’s WeChat Pay if ‘something happens’ to internet giants
China’s central banks says the government digital currency is needed to ensure stability if Alipay and WeChat Pay hit financial or technical problems China has also called on major central banks to work together to ensure sovereign digital currencies are compatible with each other
Xi in Fujian; Xinjiang cotton mess; Yuan Peng on PRC-EU relations
The PRC may have done more in the last four days to damage PRC-EU relations in very deep ways than anything the Biden administration could have done. The destruction of H&M’s China business over Xinjiang cotton likely also kills any chance the EU ratifies the CAI. The targets of the mass tantrum campaign over whether companies use Xinjiang cotton have expanded beyond H&M to Nike, Adidas, Burberry and likely more firms. This whole thing was manufactured by the Communist Youth League digging up a 2020 statement from H&M and posting about in Weibo just after the EU issued sanctions. The propaganda system, the Foreign Ministry, and the Ministry of Commerce have all joined in, along with the masses online. Tens of stars have publicly renounced their contracts with the targeted firms. So far the protests have stayed virtual, but I would not be surprised to see people burning their H&M and other offending apparel. Those Douyins will be lit. As this is the 100th anniversary year of the CCP we should expect more of these kinds of campaigns against any foreign provocations. I do not know what the foreign apparel companies with business in China can do. They can not have different messaging and standards for China and the rest of the world, but if they choose the wrong side on Xinjiang and other sensitive issues to the PRC then their business can be destroyed overnight. As China’s relationship with most developed economy countries deteriorates, companies from those countries with significant consumer businesses in the PRC are increasingly in an impossible situation, one that better PR will not be able to spin away.
Anta, Li Ning shares surge as Chinese consumers back domestic brands in Xinjiang cotton row
Chinese consumers boycott goods made by H&M, Adidas and Nike, as they face a backlash on the mainland for not buying cotton produced in Xinjiang Chinese firms like Li Ning, Anta, Bosideng, Peacebird and Semir are likely to take market share from foreign rival amid the backlash, Zheshang Securities says
China sanctions British MPs, lawyers, businesses for Xinjiang ‘disinformation’
Chinese foreign ministry says sanctions are in retaliation to British sanctions on China over human rights issues in Xinjiang says Britons ‘maliciously spread lies and disinformation’ about Xinjiang, where China has been accused of genocide and forced labour
Meituan, Didi, Baidu, and China’s Big Tech erase H&M’s online presence amid Xinjiang cotton controversy
Searches for ‘H&M’ and ‘HM’ yielded no results on China’s map applications, e-commerce sites, ride-hailing apps, and food-delivery platforms as of Friday Netizens also targeted other overseas brands, including Nike, Adidas and Burberry, after they issued similar statements over forced-labour in Xinjiang
Xinjiang cotton: Hugo Boss’ comments spark accusations of hypocrisy online
Chinese subsidiary’s social media post appears to contradict German fashion brand’s corporate buying policy Japanese homeware brand Muji also accused of double standards as Beijing’s dispute with Western countries hots up
China issues plan to encourage new types of consumption
China issued a plan Thursday to further encourage cross-border renminbi (RMB) settlements as well as new forms of foreign trade, such as e-commerce. The plan, issued by the National Development and Reform Commission (NDRC) and 27 other government departments, covers supportive measures for new types of consumption, including expanding financing channels and carrying out infrastructure projects. Commercial banks and non-bank payment institutions are being encouraged to optimize mobile payments and reduce payment service costs for small and medium-sized merchants.
With Covid-19 under control and travel curbs eased, airfares in China bounce back to pre-pandemic levels
Average prices for an economy seat during the April 3-5 Ching Ming Festival have rebounded to 96 per cent of 2019 levels, according to data from Ctrip Chinese carriers are scheduled to operate 20.7 per cent more domestic flights from April to October compared with 2019, according to data provider Flight Master
China’s travel sector is undergoing a nonlinear recovery: What should companies do?
Our latest survey of Chinese-traveler sentiment indicates there’s no straight path to recovery. We suggest three areas travel companies can focus on to succeed.
Chinese tech giants face US SEC ultimatum: comply with American accounting practices or delist
The US Securities and Exchange Commission has implemented a Trump-era law requiring foreign US-listed companies to allow their accounting books to be reviewed The US is not likely to remain the top destination for Chinese tech IPOs, as many firms have already sought secondary listings in Hong Kong
Elon Musk Predicts That China Will Be World’s Largest Economy and Tesla’s Main Market
The businessman asserted that “the future of China will be great,” praising the country’s handling of the economy.
Smartphone giant Xiaomi said to be planning electric vehicles made in Great Wall’s factory
Xiaomi joins tech firms, such as Apple and Huawei, that are reportedly pushing into smart mobility The Chinese gadget maker aims to launch its first electric vehicle for the mass market around 2023, sources said
podcast : Capitalisn’t: Crony capitalism in China
China has experienced the expansion of wealth inequality even as it has enjoyed record economic growth. On this episode of the Capitalisn’t podcast, hosts Luigi Zingales and Bethany McLean speak with former New York Times correspondent David Barboza about how China’s economic system works, how American companies sometimes participate in it, and the effect it could have on the rest of the world.
Biden pledges to prevent China from becoming the world’s ‘leading’ country
‘I see stiff competition with China,’ Biden says Biden reiterates plan to convene a democracy summit
China’s defence minister on Europe mission as US tries to rally Nato
Wei Fenghe will stop in four countries to send a message that Beijing is not a threat to the transatlantic alliance, analyst says Wei praises Hungary for its support on issues including Xinjiang, according to defence ministry
China-Australia relations: China labelled a ‘vindictive’ and ‘unreliable’ trading partner by Australian envoy
Ambassador Graham Fletcher made the comments to a China-Australia business group in a briefing from Beijing on Thursday, according to The Australian newspaper and the Australian Broadcasting Corporation Australian exports of coal, wine, barley, cotton, lobsters and wood have either been blocked or severely disrupted for almost a year
China hikes duty on Australian wine for five years
China said on Friday (Mar 26) it would hike duties on Australian wine imports for up to five years, as relations sour between Beijing and Canberra. The levies range from 116.2 per cent to 218.4 per cent, China’s commerce ministry said in a statement, adding they will take effect from Sunday.
The complexities of China’s CPTPP entry
Chinese President Xi Jinping made global headlines at the APEC summit on 20 November 2020 by announcing that China was considering joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which came into effect in December 2018. The news came amid a likely reconfiguration of the Asia Pacific trade landscape due to unabated trade tensions between the United States and China and the conclusion of the Regional Comprehensive Economic Partnership (RCEP) five days prior. Many RCEP economies are experiencing their worst economic downfall since the Great Depression due to COVID-19 and want to avoid being forced to side economically with the United States or China in the years to come. Only once the two major powers collaborate can urgent global issues like the ongoing pandemic and climate change be effectively dealt with. To bring them together, the regional ‘constructive powers’ belonging to both the CPTPP and RCEP should raise their collective voice to safeguard a deeper, rule-based, regional free trade order and serve as honest brokers. In due process, major trading powers in the Asia Pacific should be non-assertive, non-unilateral and non-treacherous. And for any sustainable and large FTAAP in the Asia Pacific, mutual trust is key.
The Geopolitics of Politics and Protest: Myanmar, China and the U.S.
The U.S.-China relationship is fraught with challenges and shot through with uncertainty. As last week’s summit between Secretary of State Antony Blinken, National Security Adviser Jake Sullivan and their Chinese counterparts underscored, the relationship between the two countries will be defined on a number of fronts, ranging from trade, climate and norms governing technological transfer to human rights abuses, threats to financial stability and an inquiry into the onset of the coronavirus pandemic. Yet one situation is presenting a conundrum that few anticipated: the coup in Myanmar, where the domestic protest movement strengthens, the risk of economic collapse heightens and the threat of drastic escalation persists.
How Meituan and Pinduoduo are transforming remote Chinese towns with community group buying
Meituan, Pinduoduo and others are counting on China’s burgeoning community group-buying business to penetrate fast-developing rural areas Reliable mobile internet connection allows residents in remote towns to embrace online grocery shopping Chinese tech companies have been paying increasing attention to lower-tier cities following the success of Pinduoduo, which has largely grown by focusing on price-sensitive consumers, said Yang Liang, an analyst at research firm EqualOcean. Last week, Pinduoduo announced it overtook rivals Alibaba and JD.com in number of annual active buyers in China last year.
Food delivery giant Meituan posts 35 per cent quarterly revenue increase as pandemic-hit consumer spending recovers
Meituan beat analyst estimates by pulling in US$5.8 billion in the fourth quarter after consumer spending had previously dipped during the Covid-19 pandemic Annual revenue also increased 18 per cent to US$17.5 billion in 2020, aided by growth in the company’s community group buying service
Injecting influence: China’s vaccine diplomacy in Central and Eastern Europe
The popularity of Russia’s Sputnik V is helping Chinese products establish themselves as other alternatives to Western breakthroughs. Ivana Karaskova says this undermines the EU’s approach.
Chinese Entertainment Apps for Elderly See Rosy, Silver-Haired Future
In 2020, mobile apps saw a surge in senior users hungry for entertainment. The COVID-19 pandemic has caused explosive growth in the country’s elderly entertainment sector, industry experts told Sixth Tone at China’s Aging Marketing Innovation Conference, held Thursday in Shanghai. Forced to stay indoors, Chinese elderly have gone online in droves, said Duan Mingjie, founder of AgeClub, a Beijing-based consulting firm that advises brands on how to target elderly customers.
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