China Press Review – May 13, 2019

Press review

China hits back in trade war with US
China has said it will impose tariffs on $60bn (£46bn) of US goods from 1 June, extending a bilateral trade war.
www.bbc.com

China to raise tariffs on US$60 billion in US goods from June 1
Ministry of Finance says the move is a response to ‘unilateralism and trade protectionism’
www.scmp.com

Trump warns China against new tariffs
US President Donald Trump has denied that US consumers will pay for higher tariffs on Chinese imports and has warned China not to follow suit. “Many tariffed companies will be leaving China for Vietnam and other such countries in Asia. That’s why China wants to make a deal so badly!”
www.bbc.com

Trump says US is ‘right where we want to be with China’
Beijing ‘broke’ deal and then wanted to negotiate, president claims
asia.nikkei.com

China’s official party mouthpiece warns US it risks making ‘mistake after mistake’ in trade war
Front-page editorial in People’s Daily says Beijing wants to settle its differences with the US, but warns it will not change its system and can weather a lengthy stand-off
www.scmp.com

Where did the US-China trade war talks take a turn for the worse?
Just two weeks ago, Beijing and Washington were on track for an agreement to end their tariff dispute. Then everything changed
www.scmp.com

US ‘right where we want to be’, says Donald Trump as trade deal remains elusive
President insists tariffs on Chinese goods keep onus on Beijing to agree to a deal He vows to protect US farmers against possible countermeasures from China
www.scmp.com

China doesn’t want to be ‘bullied’ by America: EUCCC
Adam Dunnett of the European Union Chamber of Commerce in China says he expects China to respond to U.S. tariffs “in kind.” He also discusses forced technology transfer and intellectual property concerns.
finance.yahoo.com

This ‘may be the start of the long haul’ in crossing the US-China trade divide
Washington and Beijing remain far apart on core issues and will alternate between conflict and talks, observers say
www.scmp.com

Donald Trump warns China to reach a trade deal now, or face a ‘far worse’ one if I get re-elected
US President accuses China of playing for time in the hope he will lose to a ‘very weak’ Democrat in next year’s election
www.scmp.com

Stocks Fall as China Responds to U.S. Tariffs With New Levies of Its Own
Stocks fell on Wall Street again on Monday, after Beijing said it would impose new levies on goods from the United States in response to tariffs imposed by the Trump administration on Chinese imports last week.

$9 Billion and Counting
A $9 billion decline in goods exports to China in a year may seem like just a number, but that total is comprised of small companies across the United States struggling to make difficult decisions in the face of tariffs.

$9 Billion and Counting

Chances ‘pretty good’ that Donald Trump and Xi Jinping will meet at G20 summit next month in Japan: White House aide
White House economic adviser Larry Kudlow says ‘no concrete, definite plans yet’ for future negotiations China says no one should expect it ‘to swallow bitter fruit that harms its core interests’
www.scmp.com

US-China trade war escalates: What are the implications for the world ?
Trump had not minced any words on the volume of imports that would now be taxed at 25 per cent instead of 10 per cent The repercussions can be more volatility in both commodity prices and currencies as the trade war escalates. While a non-retaliatory situation would make the dollar stronger and pressurize the rupee, the continuation of the war can cause volatility. Global trade will get more volatile and also affect investment flows which are otherwise not part of the deal. This can be more serious.
www.business-standard.com

Understanding the world’s China syndrome
Escalating US-China trade tensions have contributed to weakened global growth. The global economy is delicately balanced and needs a favourable outcome.

Understanding the world’s China syndrome

Is US-China trade war starting to erode US dollar dominance?
Asean+3 is considering adding yuan and yen to their regional forex reserves pool safety net Analysts say shift to reduce US dollar dominance is underpinned by expectations that trade war will cause shift in consumption and investment patterns away from globalisation
www.scmp.com

The trade war is now the biggest risk to markets
More than any other factor, trade has knocked back US stocks from recent record highs and has the potential to hurt stocks even more.
edition.cnn.com

Why Rising Living Standard in China Offers Global Hope – China’s 70-Year Anniversary
As living standard rises in China, its global contribution continues to increase. And that means potential for growth, poverty reduction and prosperity in emerging and developing world – new hope.
www.fxstreet.com

The vanishing illusion of China’s financial might
China’s current-account surplus is shrinking amid a growing dollar shortage
asia.nikkei.com

Should central banks be revamping their monetary policy frameworks and liaising more with governments?
With the trade war threatening already slowing global growth, it could be time for central banks to synchronise their efforts more closely with government fiscal goals While crossing the line separating government and central banks might be harder in advanced economies, China may be better placed to do so
www.scmp.com

Beyond the China-US trade war: what next for the world’s two giants?
Even with a tariffs ceasefire, Beijing and Washington appear destined for decades of rivalry
www.scmp.com

China’s securities regulator lays out his bottom line for corporate governance to undergird markets for external shocks
The Shanghai index tumbled last week as trade war escalated Analysts are concerned about a heavier decline if the US extends tariffs to US$325 billion of Chinese goods
www.scmp.com

Chinese millennials are rejecting dull factory jobs — and transforming the economy
Manufacturing wages in China have increased five-fold since 2005 according to the Deloitte 2016 Global Manufacturing Competitiveness Index, while wages remain much lower in nations like Vietnam, Thailand, and Indonesia. Li’s factory cut staff from 400 workers to 300 through automation last year. “Labor costs are high in China these days,” Li says. “In the future, greater automation is a must if our company is to continue to grow. We’ll spend more on new machinery. Our workforce will shrink further. Many other companies in the region are also doing the same.”
www.latimes.com

Shakeout looms for China’s electric car market, as 80 per cent of start-ups predicted to go under
Only 20 to 30 electric vehicle makers may survive, says Beijing Electric Vehicle Co senior executive There were 486 EV manufacturers in China as of March, more than triple the number two years ago
www.scmp.com

The cornerstone industries to potentially boost China’s economy
China’s economic structure is even more complicated. As a country with the largest population and one of the world’s largest territories, China needs a more comprehensive and healthy industry structure to sustain its future economic development. The consumption industry is on the top list. This is not only because China has a huge consumption market, but also because China’s consumption industry is still developing at a low level.
news.cgtn.com

Analysts confident about China’s economic growth
With implementation of innovative fiscal and monetary policies, and advancement in technological innovation, China’s economy is expected to sustain an upward trajectory this year, analysts have said.
www.shine.cn/biz/economy/1905114493/

Graduating students in China to put pressure on job market, says premier
China still faces “relatively big” pressure on employment this year as the number of college graduates is set to reach another record, Premier Li Keqiang said on Monday, according to state television.
www.reuters.com

China’s Latest Crackdown Target Is Liberal Economists
A Beijing think tank struggles to survive.
www.bloomberg.com

Interview: China’s benefits-for-all initiative makes it main engine of global economy, expert says
The adoption of the principle of benefits for all through reviving the Silk Road makes China a main engine of the world economy, an Egyptian expert in Chinese affairs said.
www.xinhuanet.com

US war on Huawei shows China’s belt and road needs a rebrand – and quick
Xi Jinping’s signature project has grown far beyond its original purpose of promoting infrastructure and has become economically risky and politically explosive
www.scmp.com

Shares of Mercedes-maker Daimler fall as rumors fly of a Chinese stake build-up
Daimler shares have moved lower in Monday trade. It is speculated that a stake in the German firm is being quietly built on behalf of a Chinese partner firm. European stocks were already struggling after a fresh trade tariff announcement from China.
www.cnbc.com

podcast : Is the Belt and Road Initiative a Bold Economic Agenda or a Political Ploy?
A China in Africa Podcast In an ongoing series that explores different interpretations of what exactly is the Belt and Road Initiative (BRI), Eric and Cobus are joined by Zhu Zheng, an international affairs columnist for the financial newspaper Caixin and a research fellow at the China-Eastern Europe Institute. Zhu has traveled extensively across Belt and Road countries in Asia, the Americas, and Eastern Europe, where he is currently conducting a six-month field study.
www.chinafile.com

China tightens ‘national security’ review for foreign investments, sparking fears of trade war retaliation
NDRC quietly takes over sole responsibility of national security reviews of foreign investments, as part of new foreign investment law China’s state planner has broader remit than US counterparts with little transparency, leading to concerns over trade war retribution
www.scmp.com

French start-up targets hi-tech anti-pollution mask at Asia’s health-conscious consumers
Founder says US$220 price tag should not deter consumers who value their health above all else. Company says the product easily beats European certification standard, keeping out particles as small as 0.05 micrometers
www.scmp.com

Exclusive: Burberry Plays Cupid on China’s Love Day
In the West, May 20th might be just another day, but in China, 520 marks the country’s unofficial second Valentine’s Day. The day was originally created by China’s loved-up millennials — for whom one Love Day wasn’t enough — and who determined that the numbers “520” (pronounced wǔ èr yī in Chinese), sounded similar to the phrase for “I love you” (said wǒ ài nǐ). Whatever the reason for its inception, for luxury brands targeting the Chinese market, 520 is an opportunity for a second shot at tempting shoppers with love-led campaigns

Exclusive: Burberry Plays Cupid on China’s Love Day

How Luxury Brands Take Chinese Consumers Cruising in New York
Here is how Prada and Louis Vuitton “took” online Chinese consumers cruising this season

How Luxury Brands Take Chinese Consumers Cruising in New York

Hong Kong’s special status with the US is safe for now, but not for the reasons you think
With trade tensions rising again and concerns over the detention of foreign nationals on the mainland, some fear Washington may scrap a law treating the city separately from China. But these anxieties are overblown, for now
www.scmp.com

China’s doves urge Beijing to find common ground with Washington
While stopping short of direct criticism of current policy, party liberals are calling for review and change They include many descendants of the country’s revolutionary leaders
www.scmp.com

A Specter Is Haunting Xi’s China: ‘Mr. Democracy’
That makes it hard for public intellectuals to effect change. But they perform another, important function: reflecting the Zeitgeist of an era. Even though Xi is personally popular among many in Chinese society, my impression in traveling widely through different parts of China and observing different strata of society is that people are also conscious of a sense of loss—that the dynamism of the 1990s and 2000s has been turned into something more rigid and stagnant. Even China’s vaunted economic development, which for decades masked all sorts of popular discontent, is slowing, and the government lacks any impetus for reform that would create new motors of growth.
www.chinafile.com

How talk of a clash of civilisations with China serves America’s purpose
Civilisational fault lines are fluid and have been used throughout history to mobilise domestic support against a rising geopolitical rival. The US State Department’s appeal to an inevitable civilisational confrontation should be challenged
www.scmp.com

JD.com narrowly beats estimates, renews Tencent deal in Q1 2019
Chinese e-commerce giant JD released on Friday stronger-than-expected earnings for the first quarter this year thanks to strong performance from its core e-commerce business and renewed strategic agreement with Tencent.

JD.com narrowly beats estimates, renews Tencent deal in Q1 2019

Huawei ramps up China cloud competition with database tool
Chinese smartphone giant Huawei is set to unveil a new cloud database software at a press event scheduled for this week. The launch of the new product will likely ramp up competition for dominant players in China including Oracle, Microsoft, and SAP. The new cloud database software, which enables enterprises to use AI to manage data, was developed by Chinese database research company Gauss. According to a manager at Huawei, the company’s initial focus will be the China market where it feels it has a better shot at growing a customer base.

Briefing: Huawei ramps up China cloud competition with database tool

Can China become the wine world’s next California?
The US state took 40 years to become one of the world’s great wine regions. China wants to do it in 10
www.scmp.com

China Should Get Rid Of ‘9-9-6’
China should get rid of the 996–a work schedule of 12 hours a day from 9 am to 9 pm, six days a week (72 hours in total) — and replace it with a new work system where people work smarter, not harder.
www.forbes.com

Jack Ma faces criticism for remarks about employees’ sexual activity
At Friday’s Ali Day, Alibaba’s annual event to celebrate employees, Jack Ma said that employees’ sexual activity should happen six times every six days, and that it should last a long time. The remarks make reference to the 996 working regime, for which Jack Ma’s harsh attitude has received significant criticism in the past.

Jack Ma faces criticism for remarks about employees’ sexual activity

How the Seeds of a Meatless Revolution Are Taking Root in China
Consumer studies show that “mock meat” could be serious business in the world’s largest market for protein.
www.sixthtone.com

Experts doubt China’s ability to launch assault on Taiwan
US report outlines potential military options Beijing may be considering to fulfil its unification ambitions But questions remain over Chinese amphibious landing capability which would be crucial to any operation
www.scmp.com

How China’s military upgrade and trade tensions are challenging the US in Indo-Pacific
Ankit Panda writes that while a bilateral clash is not inevitable, China’s military modernisation at a time of trade anxiety is challenging US goals of Indo-Pacific dominance
www.scmp.com

A tipping point for Sino-US relations?
Not for the first time, as relations between these two great powers deteriorate, some are asking if war is in the making Thus Washington should not be surprised if continuing escalation of tensions with trade wars, boycotts, divestments and sanctions against Chinese products and investments, and mutual military provocations culminates in a “tipping point” for China to attack in the west, joined by Russia and Iran.
www.asiatimes.com

Chinese woman’s secret arrest in United States hints at wider sanctions probe
Two months before Canada arrested a top Huawei executive on alleged US sanctions violations, a Chinese national was detained in the Washington, DC on similar suspicions But while Meng Wanzhou’s case received heavy media attention, the US kept the detention of Liu ‘Willow’ Yang under wraps
www.scmp.com

China and the United States are playing a perilous game of chicken in Asia-Pacific
Washington and its allies are increasingly challenging Beijing’s militarisation of the South China Sea, but Richard Heydarian considers where it will all end
www.scmp.com

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Alain Gillard
Information Officer
Awex
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