China Press Review – May 22, 2018

Press review

‘We’re putting the trade war on hold’: Steve Mnuchin says US has paused China tariffs following Washington meeting
Mnuchin said that China plans to buy more American goods, a 35 to 40 per cent increase in agriculture sales this year alone

Trade war averted? China vows to buy more from US, but truce will take time
The consensus follows two days of negotiations between teams led by Chinese Vice-Premier Liu He and US Treasury Secretary Steven Mnuchin

Boosting U.S. Exports to China by $200 Billion Is a Tricky Task
President Trump is trying to broker a deal to bring down the national trade deficit with China. Experts doubt his goal is achievable

Ignore the White House rhetoric. Here are five ways China is winning Trump’s trade war
From intellectual property to the trade gap, China appears to have given a little, but got a lot in return

Who will be the biggest losers from a China-US trade war truce?
Some of China’s major suppliers could lose out if Beijing diverts purchases to the US to placate Washington, analysts say

China’s Q2 GDP growth seen at around 6.7 pct – official think tank
China’s economy will likely expand around 6.7 percent in the second quarter this year, the State Information Center (SIC) said in an article published in the state-owned China Securities Journal on Saturday.

No winners in a US–China trade war
In 2017, US President Donald Trump instructed the US Trade Representative (USTR) to investigate Chinese violations of intellectual property rights, invoking Section 301 of the Trade Act of 1974. On 22 March 2018, the USTR concluded that China has implemented unreasonable policies and unfair practices to acquire foreign technologies. The USTR’s findings lay out valid complaints. But the threatened US response — punitive tariffs on merchandise imports from China — would neither benefit the US economy nor compel China to alter its policies and practices.

No winners in a US–China trade war

Who will be the biggest losers from a China-US trade war truce?
Exporters in Brazil, Australia and Russia could feel the pinch if China switches suppliers of some of its big-ticket imports to head off a trade war with the United States, according to analysts.

China’s economic growth to slow to about 6.7pc in second quarter, think tank says
Recently released data suggests the world’s second-largest economy is starting to lose some momentum, as analysts have long predicted

China’s measures to cut trade surplus good for world economy: U.S. economist

If China continues slowly reducing its rate of savings, it will be in the interests of both China and the world. It is a clear result of policy and makes the economy more stable and efficient, said Posen.

China’s Got a $46,000 Wealth Gap Problem
China is no monolith. While residents in Shanghai and Beijing are almost as well off as those in Switzerland by some income measures, parts of the country live more like they were in Guatemala.

How Strong Social Hierarchies Shape Chinese Views of Work
Research shows that migrant laborers are likely to forgo higher wage demands in favor of good relationships with their employers.

Trump’s naive Nobel Prize goal is creating false hope on US-China trade

The US President is playing nice with Xi Jinping, not because he suddenly became a free-trade champion but because his eye is on the prize – the Nobel Prize

Trump’s Bizarre Trade Deal with China

The perverse outcome of Trump’s insistence that the Chinese government do whatever it takes to reduce the trade imbalance is an even larger role for the state in China’s economy. The terms of the U.S.-China trade deal, at least as it they have been reported thus far, will only perpetuate the political institutions and structures that created that imbalance in the first place. As an anonymous source quoted in Politico put it, this isn’t the art of the deal, it’s the art of the bad deal.

ZTE mess shows need to change the ‘Chinese way of doing business’
Amid all the high-pitch propaganda surrounding a possible deal between Washington and Beijing, less attention has been devoted to the holes the telecom giant dug for itself and neglected to fix

Donald Trump’s plan to ease off ZTE sanctions could cost families of terrorism victims US$150 million
ZTE was to pay US$150m to a fund for terrorist victims’ families for violating US sanctions. Now that Trump has ordered it to be given an easier ride, advocates are worried the fund will go unpaid

ZTE must change its management to get US reprieve says Larry Kudlow, White House economic adviser
Kudlow said that ‘the Chinese government has asked for a bit of relief on the remedy. Doesn’t mean there won’t be a remedy; there’ll be a very strong remedy’

China and US agree ‘broad outline’ of settlement over ZTE ban, WSJ says
ZTE deal would include major changes to ZTE management, the board and potentially significant fines, according to the report

China Must Grow Its Shrinking Workforce to Keep Up

To put it bluntly: China doesn’t want to become the next Japan.

US weighs plans to curb Chinese investment
Washington is worried about Chinese investment in the US, yet is the rest of America?

China to Simplify Business Registration for Foreign Investors
China will simplify business registration procedures for foreign-invested enterprisesin a bid to spur foreign investment, Premier Li Keqiang announced following a State Council meeting on May 16.

China to Simplify Business Registration for Foreign Investors

Foreign firms may be invited to join Made in China 2025 scheme, sources say
Beijing could adjust plan to dial down trade tensions with Washington but it won’t budge on goal of becoming a tech superpower, according to sources

US trade war: when the (micro) chips are down, Chinese cash flows to Israel
With fears mounting that Donald Trump’s trade war will lock out Chinese firms from US markets, companies seeking to invest in next-generation microchips have found a new source

SenseTime joins forces with Alibaba Group to nurture AI start-ups in Hong Kong
Launch of AI lab comes as Hong Kong government looks to step up innovation in areas like AI, biotech and fintech to prevent the city from falling behind

For China and Japan, is this Trump’s ‘Nixon shock’?
Annoyed with a US president who seems to change policy at whim, Japan and China show a sudden desire to improve relations. Sound familiar?

The China-Japan Infrastructure Nexus: Competition or Collaboration?
Can China and Japan cooperate in building Southeast Asia’s much-needed infrastructure?

China will open up its financial sector, but only if other countries reciprocate, regulator says
Liberalisation must be based on principle of equality and mutual benefit, vice-chairman of banking and insurance watchdog says

China’s Business Future And Past
1. Many Chinese companies are already more than simply low cost competitors and even more of them will compete on quality in the future. 2. We should expect Chinese companies to become more innovative over time. 3. China has been able to draw top people from around the world, accelerating business competence. 4. “Out from Guanxi.” Guanxi is overrated and rapidly declining. “High-quality management and transparent governance structures count more.” 5. Chinese companies are going overseas.

China’s Business Future and Past

Alibaba out to dominate mobile pay in Southeast Asia
In Thailand, market leader Line faces serious challenge from the Chinese group

Q&A: Alibaba’s Int’l direcotr of fashion & luxury talks new retail
Sébastien Badault is Alibaba Group’s director of international fashion and luxury and managing director for France. In this interview with Alizila, he explains how China’s consumers are unique among the world’s high-end shoppers and offers an in-depth look at Tmall’s Luxury Pavilion, an exclusive online portal for fashion labels looking to tap into the lucrative market.

Alibaba accelerator to back AI startups in Hong Kong
Alibaba Group on Tuesday said that world’s most-valuable artificial intelligence start-up, SenseTime, and government-backed Hong Kong Science and Technology Parks Corp. (HKSTP) have partnered on a new accelerator program to support young entrepreneurs and researchers in the field of AI.

SenseTime, Alibaba, HKSTP Roll Out Accelerator Program To Support AI Start-Ups In Hong Kong
Alibaba Group Holding Limited (NYSE: BABA), Chinese artificial intelligence company SenseTime and Hong Kong Science and Technology Parks Corporation (HKSTP) have launched The HKAI Lab, a not-for-profit initiative with the aim to support innovation in the field of AI in Hong Kong.

SenseTime, Alibaba, HKSTP Roll Out Accelerator Program To Support AI Start-Ups In Hong Kong

China online retail sales exceeded US$403 bn Jan-Apr 2018, up 32.4% YoY
In April 2018, China’s total retail sales of consumer goods reached 2,854.2 billion yuan (US$446.71 billion), up by 9.4% year-on-year (nominal growth rate), according to National Bureau of Statistics of China. Of the total, the retail sales of consumer goods of enterprises units above designated size reached 1,124.1 billion yuan (US$175.93 bn), with an increase of 7.8%.

China online retail sales exceeded US$403 bn Jan-Apr 2018, up 32.4% YoY

Baidu Divests Its Global DU Business To Further Sharpen Its AI Focus
Baidu, Inc. today announced that it has entered into definitive agreements with certain investors relating to the divestiture of its global ad and tools business (“Global DU business”), which provides DU ads and tool apps, including Du Caller, Mobojoy, Photo Wonder and DU Recorder.The divestiture marks Baidu’s latest move to sharpen its artificial intelligence focus. Last March, Baidu shut down its medical unit. Last August, Baidu sold its food delivery service unit Baidu Waimai. In April, the firm announced to spin off a majority equity stake in its financial service business.

Baidu Divests Its Global DU Business To Further Sharpen Its AI Focus

Baidu chief reiterates commitment to AI strategy after abrupt exit of chief operating officer
Baidu founder Robin Li Yanhong tells staff that company’s AI ambitions remain unchanged with impending departure of chief operating officer Lu Qi

Can Chinese Cities Leave the Car Behind?
For years, city planners in China have prioritized cars, but they’re now taking a different route.

China’s President Xi Jinping calls for increased efforts to tackle pollution
Nation must ‘speed up the construction of a system of ecological civilisation’ to ensure environment is fundamentally improved by 2035, leader says

China launches fresh campaign against trash smuggling
Move comes after Beijing stopped imports of many types of foreign waste last year, much of it bound for recycling plants

Chinese FM: China, Portugal important partners in building Belt and Road
Visiting Chinese State Councilor and Foreign Minister Wang Yi on Friday said China and Portugal agree to work as important cooperation partners in implementing the Belt and Road Initiative.

How China’s Belt and Road Initiative can extend its reach to the edge of the European Union
Donald Gasper says China linking its Belt and Road Initiative with the Eurasian Economic Union will open up a new trade corridor that offers opportunities for all the countries involved

China, Italy agree to boost Belt and Road cooperation
The joint efforts between China and Italy in building the Belt and Road Initiative during the 21st century will inject new impetus into the development of bilateral relations and open up new prospects, Chinese State Councilor and Foreign Minister Wang Yi said here Monday.

China must lead on blockchain, chief executive of US-listed company tells Beijing conference
There will be a ‘main blockchain that dominates the market’, meet supported by China’s Ministry of Industry and Information Technology hear

Chinese Crypto Exchange Start-Up FCoin Receives Funding From Danhua, Node Capital
Chinese cryptocurrency exchange start-up FCoin has received joint investments from Danhua Capital, Node Capital, Singer Capital, Timestamp Capital, 8 Decimal Capital, Zipper Foundation and some individual investors, according to reports by Chinese local media.The investment’s financial details were not disclosed.

Chinese Crypto Exchange Start-Up FCoin Receives Funding From Danhua, Node Capital

Anbang hangs ‘for sale’ sign over majority stake in domestic securities firm
Divestment of Shenzhen-based Century Securities expected to be worth at least US$564.67 million. Anbang owns 91.65 per cent of the operation

Chinese banks up the ante to lure millionaire clients from overseas private investment houses
More than 60 per cent of mainlanders with personable investible assets worth in excess of US$1 million now hold those offshore, and 10 per cent of that by value are handled by foreign banks

Shanghai beer festival highlights China’s growing taste for a quality brew
The 2018 Craft Beer of China Exhibition features lots of smaller breweries staking their claim in a rapidly changing market The Belgian-Brazilian firm Anheuser-Busch InBev, the makers of Budweiser, has invested heavily in China, building breweries and acquiring craft breweries like Shanghai’s Boxing Cat. Anheuser Busch also owns Goose Island, which is based in Chicago.

US$400 billion? Er, calm down. The MSCI is no biggie for Chinese stock Markets
Anyone buying into A shares today through the Hong Kong stock exchange’s Connect scheme in the expectation of vast inflows following inclusion in the emerging markets benchmark is likely to be sadly disappointed

For global investors, now is precisely the wrong time to overlook China’s market potential
For Beijing, financial reforms, the opening up of its capital market, and the growing global use of the yuan that comes with that, are all part of the wider economic rebalancing it wants to achieve. The direction is clear, and the pace is picking up. For investors around the world, the biggest mistake would be to ignore China’s markets and their enormous potential now.

China may scrap limits on family size by end of year
Country’s leaders said to be considering plan to end notorious curbs on how many children parents are allowed to have

How China acquires ‘the crown jewels’ of U.S. technology
The U.S. fails to adequately police foreign deals for next-generation software that powers the military and American economic strength.

Mistakes are Not the End: Self Deception Might Be

The Chinese culture is about face as children are criticized a lot and need more positive encouragement. That means your Chinese GM or other managers may not be very open to criticism. They also might have self deception. That’s a shame.

Mistakes are Not the End: Self Deception Might Be

Alain Gillard
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