China Press Review – May 23, 2019

Press review

Donald Trump’s trade tariffs on China are neither a one-off nor unique among American presidents
Tariffs may be here to stay because Trump touts them as a general policy, not just a strategy for containing China. He also claims America’s beloved former presidents have supported tariffs – and he’s right

US-China trade war hurting American companies in China as tariffs cut into demand, survey finds
More than half of respondents say higher tariffs are cutting into demand for products, according to American Chamber of Commerce in China 42 per cent say they are experiencing higher manufacturing costs

To win China trade war, Trump needs allies
Donald Trump and Xi Jinping know it’s in their own best interests to end the trade war
With the US facing other foreign policy challenges, Trump cannot afford a protracted trade war that hurts his political base. Meanwhile, Xi has built his reputation on his statesmanship and must preserve China’s most significant bilateral relationship

To win its trade war against such a formidable power, as previously maintained, the US needs alliances.
Of late, while supporting Trump’s hawkish China posture, a number of American lawmakers have voiced their concerns about his decision to wage a multi-front tariff war (including against America’s allies, such as the European Union and Canada). Schumer said last week: “I would focus everything on China. And get the Europeans, Canadians and Mexicans to be on our side and focus on China. Because they are the great danger.”

Trade war: will China use ‘nuclear option’ of banning rare earth exports to US?
China accounted for seven out of every 10 tonnes of rare earth elements mined worldwide last year and was the biggest exporter to America As trade tensions have escalated, analysts are questioning whether Beijing will use its dominance of the industry as a check on US tariffs

Chinese ambassador Cui Tiankai blames US for ‘changing its mind so often’, but says Beijing ready for further trade talks
Diplomat tells Fox News it was US negotiators who abruptly backed away from tentative deals Cui says Beijing is committed to previous agreements and ‘door is still open’ for negotiations

Donald Trump readies new round of aid for US farmers hit by trade war with China
Administration is considering payments of US$2 per bushel to soybean growers, US$0.63 per bushel to wheat growers and US$0.04 per bushel to corn growers Package, which could exceed US$15 billion, is largely modelled on programme implemented last year, but with more generous payments

US-China trade war manufacturing exodus creating boom times for Chinese logistics companies

The trade war has created an unlikely winner: the cross-border logistics companies facilitating the exodus of Chinese manufacturers Guangzhou-based R&T Transportation helped 10 firms move their entire plant out of China since 2018 and 500 companies to move part of production

China Doesn’t Want to Be Like the West
The Trump administration has underestimated the strength of resistance to a foreign order imposed by force.

China urges public to think patriotically and resist US
Communist Party walks fine line by fanning anti-American sentiment

Chinese social media users are rallying behind Huawei. Some say they’re switching from Apple
Chinese consumers are calling for a boycott of Apple’s products in China in favor of Huawei. It comes as the U.S. ramps up pressure on Huawei and looks to cut it off from key American technology suppliers, including Google.Analysts said that the move could hurt Apple sales in China in the short-term.

Huawei’s mobile chief expects self-developed OS to be ready for market roll-out as early as year end
Huawei uses Google’s Android system for its smartphones and Microsoft’s Windows on its laptops and tablets

Huawei prepares for US ban by checking on suppliers and activating contingency plans
In 2018 Huawei’s total expenditure on components and other supplies reached US$70 billion Huawei’s wholly owned chip unit has said it is activating its backup plan to ensure continuous supply of most products

Huawei founder rejects populism, calling for global cooperation
At this critical moment when US-based technology giant Google has reportedly decided to follow the US government’s order to restrict part of its Android services to Huawei, Ren still insisted on continuing cooperation on a global scale. “Don’t blame American companies… I’m very grateful for them, as they’ve contributed a lot to Huawei’s development,” he said

Huawei eyes fall release of mobile OS in case of Android ban
US blacklist will not harm finances or 5G plans, CEO Ren Zhengfei says

Trump’s Huawei ban raises hopes for Chinese chip suppliers
Washington’s blacklisting of technology giant Huawei has taken a toll on U.S. semiconductor shares, but China-listed firms have rallied as investors bet they can gain from Beijing’s stepped-up efforts to build a homegrown supply chain.

Staff at UK-based ARM ‘told to suspend business with Huawei’
UK-based chip designer ARM has reportedly informed employees not to work with Chinese tech giant Huawei.

Apple’s China woes may worsen as Huawei ban nudges die-hard iPhone fans to switch sides
Last year Apple ranked fifth in China with a 9.1 per cent share, which fell to 7 per cent in the first quarter Ongoing nationalist sentiment could play to Huawei’s favour and hurt Apple’s sales in China, analysts said

China offers five-year tax breaks to chip makers, software developers to bolster industry as trade war stretches to tech
Semiconductor makers and software companies will be exempt from corporate taxes for two years and their taxes halved in the following three

Donald Trump ally Kevin McCarthy blocked bipartisan bid to limit China’s role in US transit, shielding Chinese manufacturer BYD Motors
Intervention is striking at a time when Washington is seeking to curb Beijing’s access to US markets BYD Motors has a plant in McCarthy’s California district, and company president Stella Li is a contributor to his campaign

German chipmaker Infineon to continue supplying Huawei
German chipmaker Infineon on Monday said it would continue to supply Huawei with components following a Nikkei report saying it would need to halt deliveries of products originating in the US due to a Trump administration blacklist of the telecom giant last week. An Infineon spokesman said most products it delivers to Huawei are not subject to US restrictions. The company is one of Europe’s biggest chipmakers and said it could make adaptions in the international supply chain to ensure deliveries. Another European semiconductor company AMS also maintained that it would continue business relations with Huawei.

Briefing: German chipmaker Infineon to continue supplying Huawei

US firms in China fear ‘retaliation’ against Huawei curbs: AmCham
A top business lobby group representing American firms in China said they have “real concerns” over how Beijing may respond to US action taken against Huawei.

West skeptical of investment from China: survey
Chinese investment is causing disquiet in a number of places, particularly in the US and Europe, according to a new survey. The sentiment poses a problem for Chinese firms seeking to expand their global footprint. Investment from China is a source of anxiety in many parts of the world, especially in the West. That’s according to a new report released Monday by the Germany-based Ifo economic research institute. Over 1,000 analysts from 81 countries took part in the survey. While two-thirds of respondents in the European Union saw Chinese investment as “slightly” or “evidently” negative, the figure in the US was 78%, the Munich-based institute found. But in many emerging and developing economies like Pakistan and Turkey, Chinese investment enjoys a better reputation.

US-China trade war could derail global economy, OECD warns
As US President Donald Trump’s trade war with China heats up, experts warn there could be dire consequences for the entire globe. The US-China trade war that has raged for the past year could cause a disastrous $US600 billion blow to the global economy. That’s the grim assessment of the Organisation for Economic Co-operation and Development (OECD), which warned a further escalation of the crisis could impact a world economy already weakened by sluggish growth and uncertainty. In a biannual report released yesterday, the renowned think tank predicted global gross domestic product would fall by up to 0.7 per cent by 2021, with uncertainty hitting advanced economies the hardest. It expects the world’s GDP to slow to 3.2 per cent in 2019 compared with 3.5 per cent last year and 3.8 per cent in 2017.

A major Chinese automaker postpones its US launch as trade war drags on
GAC Motor said it will postpone its launch in the U.S. because of the ongoing U.S.-China trade war. The Chinese automaker has been expanding into several international markets.

Why China cares about this week’s EU elections
China’s involvement in the EU has ramped up significantly in recent years. That’s in part due to the enormous amount of trade that passes between the two parties: China is the EU’s second-largest trading partner after the US. Europe is also a crucial region for China’s growth ambitions, including its two signature initiatives: the Made In China 2025 plan and Belt and Road Initiative (BRI). But Beijing’s increasingly assertive role on the continent has some European nations, and their allies, worried.

Japan’s trade surplus shrinks 90% in April on weak China shipments
Trend of falling exports and rising imports threatens to weigh on GDP

Alibaba Group was awarded World Trademark Review’s Asia Pacific Team of the Year for its work in brand protection on Tuesday night in Boston.

China approves 20.76 GW of subsidy-free solar, wind power projects
China approved its first batch of subsidy-free wind and solar projects with a combined capacity of 20.76 gigawatts (GW), the country’s top planning agency said on Wednesday.

China’s beleaguered peer-to-peer lending market will get a boost from Greater Bay Area development, says DBS Bank
By 2030, P2P lending will be the fifth-fastest growing industry in the new economic hub, the Singaporean bank estimates The once-booming industry, which gives smaller firms easy access to funds, shrank drastically when regulators swooped to halt an epidemic of fraud

China’s slowing economy: the view from the Henan heartland
Considered the cradle of Chinese civilization, the central province of Henan and its 100 million-strong population typifies China’s transformative yet often tumultuous economic ascent. Long the sort of impoverished backwater that people left in search of better lives, Henan has in recent years enjoyed the fruits of an economic boom that has raised incomes and given people a taste of middle class lifestyles and aspirations

Has Hong Kong, the most expensive property market globally, found a solution in co-living? One firm hopes so
Eighty per cent of 56-unit Oootopia Kai Tak has been leased, Arch Capital says Two more properties to come up in Tai Kok Tsui and near University of Hong Kong

For a glimpse of how Donald Trump’s trade war with China may end, look at the War of 1812 fought between the US and Britain
The War of 1812 was fought from June 1812 to February 1815, including the British raid of 1814 that set fire to the White House That conflict was born out of a trade war (a British embargo of France) and fought at least partly as a trade war (a British blockade of America)

Washington and Beijing in ‘contest of wills’ in South China Sea
Latest US mission in disputed waters may prompt China to step up its countermeasures

A dilemma for the West: is China a friend or foe?
Leaders of countries such as Australia and Canada are stuck between a rock and hard place when it comes to ties with Beijing: are they dealing with a business partner or an existential enemy, as defined by the United States?

Australia’s China Challenge
With Beijing pushing as far as it can wherever it can in the era of President Xi Jinping, Australia has become a global case study in Chinese government influence.

Armyworm to bite China’s under pressure food supply within two months as trade war tariffs limit US crop imports
The pest has already attacked crops in 13 provinces and regions in southern China and is expected to move north as temperatures rise China has already been forced to slaughter millions of pigs with African swine fever affecting all 31 autonomous regions and provinces within just nine months

For fashion industry, China’s child obesity problem could be big business
Nearly 20% of Chinese children ages 7 to 18 are overweight or obese, up from 2.6% in 1985. Factors driving that trend include rising family incomes, changing eating habits and cultural notions of what’s healthy. As a result, the market for larger kids’ clothing is expected to be worth $9.1 billion by 2020.

Alain Gillard
Information Officer
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