China Press Review – May 17, 2019

Press review

Trade war could slice 1 per cent off China’s economic growth, top party official says
Politburo Standing Committee member Wang Yang reveals ‘worst case scenario’ at forum for Taiwanese businesspeople in Beijing but says dispute will not do any long-term damage
Firms should not relocate away from Chinese mainland as it still offers huge development opportunities, he says
www.scmp.com

Former Donald Trump official hopes for US-China trade deal, but says Beijing can afford to wait
Susan Thornton says Washington must return to diplomacy and rescue deal State Department veteran says pressure will hit Donald Trump before Xi Jinping
www.scmp.com

China’s yuan slide risks trolling Trump
There’s no telling how an easily angered and thin-skinned American president might respond
www.asiatimes.com

Did China Break the World Economic Order?
No. Other countries’ reaction to its rise are a greater threat.
www.nytimes.com

Show sincerity or cancel trade talks, Chinese state media tells US
Washington ‘keeps using petty tricks to destroy the atmosphere for talks’, commentary says Doubt cast on US Treasury Secretary Steven Mnuchin’s claim that he would return to Beijing to resume negotiations
www.scmp.com

DealBook Briefing: Inside the Fall of the Trade Deal
President Xi Jinping misjudged President Trump’s eagerness for a deal — and how far he could push the American negotiators.

China’s economy slows down ahead of President Trump’s tariffs
Yahoo Finance’s Rick Newman discusses China’s economy slowing down as retail sales growth slumps to 16-year low. China reported surprisingly weaker growth in retail sales and industrial output for April on Wednesday, adding pressure on Beijing to roll out more stimulus as the trade war with the United States escalates.

China’s economy slows down ahead of President Trump’s tariffs – Source – Yahoo Finance (05/17/2019)

China Could Pay a High Price for Trump’s Tariffs
If the country falls back on bad habits, its chances of reaching high-income status may well be threatened.
www.bloomberg.com

China, Hong Kong markets see another week of declines as trade war bites
Foreign investors have been pulling their money out of China Fall in markets a ‘long overdue correction,’ said Francis Lun of Geo Securities
www.scmp.com

China scrapped import shipment of American pork in the biggest cancellation in more than a year as US-China trade war escalated
Prior to the trade war, China and Hong Kong combined were the second largest export market for US pork
www.scmp.com

Will LVMH Launch a Chinese Fashion Brand like Rihanna’s Fenty?
The global luxury market is changing. Younger consumers are entering the market and information about brands is increasingly acquired via digital channels. China is now the largest luxury market if we aggregate all purchases by Chinese consumers inside and outside China, and the competition there is heating up as new brands continue to emerge in all categories.

Will LVMH Launch a Chinese Fashion Brand like Rihanna’s Fenty?

Alibaba’s Jack Ma says he is ‘worried’ Europe will stifle innovation with too much tech regulation
Europe lags behind in terms of technology innovation and has not produced as many big tech firms Last year, the continent put in place the General Data Protection Regulation (GDPR), a set of data protection rules for all companies that have operations in the region
www.scmp.com

The US-China trade war has been a boon for Brazil’s soybean farmers. But can they keep up with Chinese demand?
US shipments of soybeans to China have halved since Beijing slapped a 25 per cent punitive duty on them in July Weather conditions threaten this year’s harvest as Brazil’s farmers aim to meet 30 per cent increase in demand from China, says head of trade body
www.scmp.com

China Threatens To Cut Rare Earths Supplies To The U.S. — Bad Idea
China is threatening to take the trade war to the next stage: cut off rare earth metal supplies to US technology and defense industries.
www.forbes.com

Where has all the money gone? US-China trade war triggers capital flight from emerging Asian markets
Recent flare up in trade tensions between the US and China led to outflows of more than US$2.5 billion in Chinese equities last week Inflows into global bond funds has been accelerating at their fastest pace since 2002
www.scmp.com

‘Europe must maintain own course’: Germany distances itself from US blacklisting of Huawei while Netherlands investigates possible spying
Powerful BDI (Federation of German Industries) group says Europe ‘must not be dragged into trade dispute’ between China and US Dutch intelligence services look into potential ‘back door’ allowing access to customer data on major networks
www.scmp.com

What’s Our China Endgame?
We need to deflate Beijing’s ambitions, without bursting them.

Hong Kong and the US-China New Cold War
Will Hong Kong be a “Free World outpost” or a bastion for “Red China”?
thediplomat.com

Alibaba pushes ‘emotion analysis’, other hi-tech systems to fight fake products
E-commerce giant reports 67 per cent year-on-year decline in suspected fake product listings on its platforms in 2018
www.scmp.com

China’s Huawei says it will challenge US blacklisting and vows to limit impact on its operations
World’s largest telecommunications company says the decision by Washington will significantly harm US companies and jobs Analysts say barring Huawei is a US effort to shift European allies away from the Chinese company in the race to dominate 5G technology
www.scmp.com

Huawei’s chip unit says it prepared years ago for doomsday scenario of US tech ban
Huawei chip unit HiSilicon said it anticipated US may cut off access to advanced components and technology Backup plan should ensure continuity of supply for most of Huawei’s products, HiSilicon president says in memo
www.scmp.com

Addition of Huawei and Affiliates to the Entity List
The timing for when these additions will be published in the Federal Register is unclear. Under normal circumstances the Federal Register notice is issued the same day or following day after additions are publicly announced. However, so far, there is no indication on the Federal Register website of when the notice will be published. Once it is published, companies will need to review the exact parameters of the covered items and the license review criteria to determine the exact impact and whether or not to apply for licenses.

Addition of Huawei and Affiliates to the Entity List

Huawei’s chipmaking subsidiary HiSilicon mitigates impact of US ban
Chinese chipmaker HiSilicon said it has long been prepared for a situation in which its parent company Huawei could one day be unable to obtain chips and technologies from the United States. The company said it had been secretly developing substitutes to American products and now it is ready to put them to use to make sure Huawei continues its business. The US Commerce Department on Thursday officially added Huawei to a so-called Entity List that would ban the company from buying parts and components from American firms without US government approval.

Briefing: Huawei’s chipmaking subsidiary HiSilicon mitigates impact of US ban

Siemens aims for Beijing AI lab to aid factories as industrial output stutters
“Artificial intelligence is a core technology for a successful digital transformation and offers tremendous opportunities for all industries. We are excited to work with Chinese customers on their most urgent topics to make production more efficient and raise the availability of systems like machines or trains,

Siemens aims for Beijing AI lab to aid factories as industrial output stutters

Baidu reports quarterly losses for first time since listing, head of search resigns
Search and artificial intelligence (AI) giant Baidu has reported a quarterly net loss for the first time since listing in 2005, as the company grapples with China’s slowing economy and increased competition while spending on promotional activities skyrocketed.

Baidu reports quarterly losses for first time since listing, head of search resigns

China’s Auto Market Continues Deceleration
Downward pressures on the world’s largest auto market extended into May with a further slowdown in sales, continuing the decline of the year’s first four months. Sales of passenger cars decreased 24% in the first week of May from a year ago, according to the China Passenger Car Association (CPCA). Transactions between automakers and dealers fell 44% year on year, the CPCA said.
www.caixinglobal.com

L’ORÉAL, ALIBABA INTRODUCE NEW AI SKIN-TESTING TECH FOR ACNE
Global cosmetics company L’Oréal Group and Alibaba Group will launch the world’s first artificial intelligence-powered mobile-testing application targeting acne, the companies said on Friday.
www.alizila.com

Traceability in Manufacturing: Do your Chinese Suppliers Do it Right?
I see buyers who spend a lot of time pushing their suppliers to do QC inspections on incoming components, to keep the production area clean, to give clear instructions to operators, and other basics. But I seldom hear them push for traceability in manufacturing, despite how important it is. I thought I should write about it again.

Traceability in Manufacturing: Do your Chinese Suppliers Do it Right?

In China’s heartland, once-flush shoppers turn cautious
Dressed in a smart black pantsuit behind the wheel of her pearl-white Audi, Zhao Na has come a long way from her roots in rural Henan province, in central China.
www.reuters.com

Cities should regulate facial recognition instead of banning it, China’s AI champion SenseTime says
The CEO of the world’s most valuable AI start-up says guidelines would help manage how these systems are deployed
www.scmp.com

China’s Global Investments Are Declining Everywhere Except for One Region
Three charts highlight Beijing’s growing interest in the Middle East and North Africa.
China’s Global Investments Are Declining Everywhere Except for One Region

Confused About China’s Belt and Road Agenda? You’re Not Alone.
Thirty-seven foreign heads of state came to Beijing this week to take part in the second Belt and Road summit hosted by Chinese President Xi Jinping. Some leaders, like Kenya’s President Uhuru Kenyatta, came with expectations to sign huge infrastructure loan deals, while others, including Ethiopian Prime Minister Abiy Ahmed, asked for debt relief.
www.chinafile.com

US-China Global Rivalry and BRI
Starting in 2001 from the low-cost industry, China has established most advanced technology today. To a first approximation, China is struggling at its best, to emerge as global power or super power, or in other words you might like to say about. However, in some respect, it still faces challenges, in domestic politics, military’s capability and most importantly what its equivocal vision of whether unipolar or multipolar world.
moderndiplomacy.eu/2019/05/17/us-china-global-rivalry-and-bri/

China and Japan’s Rapprochement Continues – For Now
Yang Jiechi is set to travel to Japan this week, the latest high-level exchange in the thawed relationship.
thediplomat.com

Trade Tensions and National Dignity
As trade tensions between the United States and China have escalated this week, we have seen a series of commentaries and signals from China in the state media, the most important of these appearing in the Chinese Communist Party’s flagship newspaper, the People’s Daily. Today, we have another important commentary in the newspaper, and this time it gets more real estate on the front page, as opposed to page four, where most of these statements have lingered through the week. The piece this time is from “Zhong Xuanli” (钟轩理), a moniker that marks it as coming from the Theory Division of the Central Propaganda Department.

Trade Tensions and National Dignity



The Chinese feminists fighting patriarchy in China from abroad

Chinese feminist After Chinese security agents tried to dissuade her activism, Xiaowen Liang moved to the US. Now, she works on raising awareness of China’s women’s movement with other Chinese feminists living abroad.
www.pri.org

The China Legacy of Modernist Architect I.M. Pei
The renowned designer of the Louvre pyramid in Paris and over 70 other structures around the world died Thursday at the age of 102.
www.sixthtone.com

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