China Press Review – May 27, 2019

Press review

Why the future is Asian
Global-strategy adviser Parag Khanna describes the ways that the world economy is increasingly Asia-centric and will be moving even more swiftly in that direction.

China’s industrial profits shrink in April, add to pressure on economy
Profits for China’s industrial firms shrank in April as slowing manufacturing activity halted the previous month’s surge, putting more pressure on policymakers to step up support for an economy hit by a bitter trade war with the United States.

China’s industrial profits shrink in April, add to pressure on economy

EU’s China policy is no longer just carrots
March 2019 saw Chinese President Xi Jinping journey to Europe, specifically Italy, Monaco and France. Meanwhile the European Council met to work out a joint stance for the EU–China summit that took place on 9 April. The following month saw the eighth China–Central Europe (16+1) summit in Dubrovnik and the second Belt and Road Forum in Beijing. Have these diplomatic meetings and summits tangibly developed China–EU relations or the EU’s stance on China?

EU’s China policy is no longer just carrots

China says ‘mutual respect’ needed for any trade talks with US
China on Monday said any US trade talks must be based on “mutual respect” and equality after President Donald Trump said there was a good chance of clinching a deal.

China says ‘mutual respect’ needed for any trade talks with US

US-China trade war: China willing to cooperate more with US but won’t give in to an unequal deal
There is growing resentment among Chinese political circles about the United States, which is viewed as not only a bully but an ingrate.

America’s quarrel is not with Chinese civilisation, but the Chinese Communist Party
Xi Jinping may have provided more ammunition for Washington by hosting a conference on Asian civilisations. But US policymakers are off the mark – they are confusing a threat from the Communist Party with a threat from Chinese culture

Donald Trump’s trade and tech wars with China take a sinister turn, endangering the global economy
Increasingly, the Trump administration’s trade war is not about tariffs but about keeping China in its place, regardless of the costs to US companies and consumers – and the world. The trade conflict is heading in a dangerous new direction

China’s middle class growing desperate and anxious about US trade war impact
Fears of trade war impact also appear to be affecting willingness to spend and prompting moves to safeguard wealth in foreign currencies and gold Rising food prices and unemployment levels adding to concerns despite state and social media urging nation to stand strong in face of adversity

US and China aren’t facing ‘enough pain’ right now for them to strike a quick trade deal: UBS
High-level trade negotiations between the U.S. and China broke down after President Donald Trump turned up the rhetoric against Beijing earlier this month. Beijing said last week that further talks can’t proceed unless Washington adjusts its “wrong actions” but Trump still predicted that a deal could be reached “fast.” However, Tan Min Lan, Asia-Pacific head of chief investment office at UBS Global Wealth Management, predicted that any deal between the U.S. and China will likely only come “just before 2020

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The US-China trade war seems not to have caused much pain yet. But after 117 consecutive months of economic expansion – compared to an historical average of 48 months – the US could soon find itself thrown back into a painful recession, owing to disruptions caused by its own trade policy.

Tech cold war: how Trump’s assault on Huawei is forcing the world to contemplate a digital iron curtain
Recent US trade moves against China are not short-term negotiating tactics from Trump, they are opening salvos in a new tech cold war Many now think the real issue is whether China has the right to develop its own, home-grown hi-tech industry

Why China shouldn’t retaliate against US firms after Huawei ban
Blacklisting the tech giant from buying American-made software and parts points to a sinister effort by Washington to halt China’s technological growth. But Beijing would be wise not to follow suit.

China’s wrong, the US can kill off Huawei. But here’s why it won’t
Chinese claims that Huawei can prosper without the US are given the lie by Beijing’s past attempts to foster innovation But it’s in Trump’s interests to reach a deal

Donald Trump’s Huawei ban is a more severe threat to global economy than trade war tariffs, economists say
Showdown between China and the US over 5G, future technology could outlast tariff fight, analysts say Blacklisting of technology firms is being viewed as a broad stroke by Washington to contain Beijing in its bid to lead the global tech race

Three Visions For U.S.-China Trade Relations
A third vision of China relations would work to shape Chinese behavior in a constructive and effective way, as through the Trans-Pacific Partnership. It would work to set global rules on intellectual property protection, cyber attacks, subsidies, and state-owned enterprises that would be enshrined in multilateral agreements. China’s record of keeping its promises at the WTO has actually been on a par with most major countries – not perfect, but decent. Yet President Trump abandoned the TPP and his administration has nearly brought the WTO to its knees. Perhaps after a period of careening ineffectively between the two impossible visions of a China relationship, the United States can work to craft a viable vision that lies in between.

US and Huawei wage battle of self-righteousness
CEO Ren Zhengfei sees his company as scapegoat in trade war

Donald Trump’s Huawei crackdown could hit Trump country hardest
Small, rural US wireless providers fear the president’s approach could result in big costs

Huawei chief would be ‘the first to protest’ China retaliation to Trump ban
Huawei founder and CEO Ren Zhengfei has been doing a round of interviews this past week, responding to his company’s placement on a US ban list. In speaking with Bloomberg, he’s made the assertion that he neither expects nor hopes for a retaliation from the Chinese government against the Trump administration’s ban. A resolute Zhengfei says, “That will not happen, first of all. And second of all, if that happens, I’ll be the first to protest.”

Time is ripe for Huawei to launch an IPO, to address political and security concerns once and for all
The tech firm has said it neither needs funds nor wants a distraction but a clearer ownership structure and a chance for the public to have a stake is the best way forward

Huawei’s smartphone shipments could fall by up to a quarter this year, analysts say
Slump forecast after US commerce department blocked Chinese tech giant from buying US goods last week Tech companies including Google and chip designer ARM have said they will cease supplies and updates to Huawei

Why Huawei’s Google woes worry Africa
Google’s decision to withhold its Android software from Huawei is being seen as the beginning of a technology cold war that could compel African countries – in the future – to choose between US and Chinese technology, analysts have told the BBC.

Why the West doesn’t understand China
The Huawei debacle shows how prejudice still shapes Westerners’ view of the People’s Republic The evident assumption of much political bombast relating to China is that it has somehow evaded all of these trends. However, there is considerable scholarship examining how the Chinese state has been affected by the same processes of ‘fragmentation, decentralisation and internationalisation’ that have occurred elsewhere. Far from being ‘a unified, authoritarian regime’, clinging to its sovereignty and disrupting a ‘liberal rules-based world order’, what we see in China is a state being transformed, in its own way, by prevailing cultural and market forces.

China will increase support, subsidies for tech firms, official says
Sector needs a breakthrough and Washington’s protectionist moves can provide the catalyst for it, industry vice-minister Wang Zhijun says Comments come after Chinese President Xi Jinping issued rallying call on trip to Jiangxi province

China’s cybersecurity laws may be used to block US tech firms on national security grounds, says expert
The draft measures have been released online for public feedback until June 24 They were published amid escalating trade war tensions between Beijing and Washington

In China, a growing disquiet about US efforts to contain its tech champions
Little mention of tech war onstage at conferences in China despite Huawei’s woes dominating headlines Executives privately voice concern of rising risks of a global digital iron curtain

Huawei chief Ren Zhengfei dismisses Donald Trump’s suggestion tech giant could play role in China trade deal
Company’s founder tells interviewer that ‘even if the US wants to buy our products I may not sell to them’

Caught between Trump and its biggest market, America’s sole rare earths mine is an unusual victim in the US-China trade war
MP Materials, which runs the Mountain Pass rare earths mine, said it will kick-start its own processing operation by the end of 2020 China last week more than doubled the import tariffs on ores and concentrates to 25 per cent, effective June 1

Explainer: Can the US take back some control of rare earths from China?
Beijing, as the lowest cost producer, can lower prices to put emerging rivals out of business

If Donald Trump kills off Chinese firm Huawei, do Asia’s 5G dreams die?
Until the US-China trade war turned nasty, the Chinese telecoms giant had been the region’s 5G developer of choice Now its US ban has thrown those plans into chaos

Eight+ Things to Read About China and Other Things, Part 2

Eight+ Things to Read About China and Other Things, Part 2

China’s top banking regulator: Any yuan bears will suffer ‘heavy losses’
The yuan has lost more than 2.5% against the dollar since the festering China-U.S. trade dispute intensified earlier this month.

Why the Fed, and central banks in China, Europe and Japan should work together on rate cuts to stop the global economic rot
It can stonewall, but ultimately the US central bank will have to respond to economic conditions by lowering interest rates Other major economies have a similar need for stimulus, so this should be a chance for global policy coordination

China says U.S. demand on its state-owned enterprises is ‘invasion’ on economic sovereignty
– The United States has called on China to curb the development of its state-owned enterprises (SOEs), a demand that China sees as an “invasion” on its economic sovereignty, Chinese state news agency Xinhua said on Saturday.

Trade war has limited impact on China financial markets: regulator
A trade war with the United States has had a limited impact on China’s financial markets and its effects will be “even smaller” in the future, China’s chief financial regulator said in a interview with state television broadcast on Monday. China’s stock and foreign exchange markets have not panicked amid the escalating trade war, Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission (CBIRC), said in the interview with broadcaster CCTV.

The US won a trade war against Japan. But China is a whole new ball game
In an editorial last year, China’s Xinhua state news agency warned that “Japan was seriously hurt by its improper response” to the Plaza Accord and US trade pressure. It blamed the US for scapegoating Japan for problems in the domestic economy, adding a “strong protectionist sentiment was the direct driving force behind the Plaza Accord.” This has been a common theme in state media coverage of the trade war — that the US is seeking to blame Beijing for matters outside its control.

Ron Insana: The market doesn’t realize this is more than a trade war — it’s a new Cold War
The markets have been slow to recognize the high-stakes game that’s playing out on the world stage.
Like the neoconservatives, Trump’s closest advisors have all identified China as the foremost threat to the United States in the years, and decades, ahead.While there is good reason to challenge China on a variety of fronts and force it to change behavior that disadvantages the U.S., it is not inevitable that China is as dangerous as members of this administration claim. This is is a new Cold War to determine who will be the hegemonic power, economically and militarily, in the years to come.

The bus wars are over. Electricity — and China — won.
China has 421,000 electric buses. The United States has 300.

The bus wars are over. Electricity — and China — won.

China’s electric vehicle sales may increase 27 per cent this year to a record, as their popularity offsets slumping demand for cars
Sales of battery-powered and plug-ins that run on hybrid gasoline-electric engines are likely to grow by 27 per cent to a record 1.6 million units in 2019 From home-grown carmakers like Geely Automobile Holdings to foreign marques like Ford Motor Company and start-ups like Xpeng Motors, every noteworthy carmaker in China has an EV ready to roll out this year

Just add H²0 to go? Chinese firm claims its hydrogen-powered car can travel 500km fuelled by water
Vehicle has yet to be seen in public but local media reports it made its maiden journey last week
Chemical reaction of water and aluminium powder creates hydrogen to power the car, according to chief executive

What China must do to clean up its act on waste water
Inadequate infrastructure and industry standards are holding the country back in the battle to save the environment, new study finds

No time to waste in saving the world’s rivers from drying up – especially in China
Brahma Chellaney writes that excessive damming and drastic overuse of water resources are causing the world’s major rivers to run dry The problem is especially serious in China, where the adage, ‘Follow the river and it will eventually lead you to a sea’, is no longer wholly true

Brands Need China Influencers More Than They Realize
Influencers’ impact goes far beyond the celebrity endorsements that western brands have used over the decades in Western markets.

Brands Need China Influencers More Than They Realize

Lessons learned in China are shaping our digital business in the US, Citigroup exec says
Chinese practices an indicator of where banking is headed, Stephen Bird says Citi is using mainland China experience to shape ‘mobile-first’ transformation

China’s bank regulators take over Baoshang Bank, moving a step closer to breaking up financier Xiao Jianhua’s business empire
The People’s Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission (CBIRC) have taken over the management of Baoshang Bank for two years, according to a joint statement
China Construction Bank will assume the daily operations of Baoshang to protect the interests of customers and depositors, the regulators said

Hong Kong’s home sales flop for a second consecutive weekend as worsening US-China relations give buyers more cause for pause
Two flats were sold out of 104 on offer in three districts across Hong Kong, marking the worst sales weekend since the city climbed out of a five-month slump in January Wang On Properties managed to sell two flats out of 86 units in Yau Tong. No transactions were reported at Cetus Square Mile in Mong Kok or one Artlane in Sai Ying Pun

China Set to Cash in on New African Free Trade Agreement
The world’s most valuable and largest free trade agreement will kick in on May 30, yet it is one that has gathered little mention in mainstream media: the African Continental Free Trade Agreement(AfCTFA). The AfCTFA is the single largest FTA realized since the coming together of the World Trade Organization, but the lack of attention paid to it is an indication that despite globalization, trade that matters is perceived as being conducted solely by the United States.
China has been a major broker in the deal, using its diplomatic, political, and trade clout to harness an agreement that includes 52 out of 55 African countries (only Benin, Eritrea, and Nigeria have not joined). The AfCTFA covers an area worth over US$3 trillion in GDP and eliminates tariffs on 90 percent of goods traded across the continent. Over 1.2 billion African consumers will be impacted by the agreement.

The belt and road isn’t just re-routing investment, but also foreign language instruction in China
As China eyes partnerships across Asia, Oceania, Europe and Africa, new majors have sprung up at the country’s venerable institutions of foreign-language instruction

Beijing is building hundreds of airports as millions of Chinese take to the skies
China currently has around 235 airports, but with many lacking the capacity to sustain the coming increase in passenger numbers and flights, government officials estimate around 450 airports will be needed across the country by 2035.

Generation Amnesia: why China’s youth don’t talk about Tiananmen
Three decades have passed since the Tiananmen Square crackdown when troops fired on student-led pro-democracy protesters. The shots were heard around the country and reverberate today despite persistent official censorship of the event

China embraced gay ‘marriage’ long before Taiwan’s law. The West perverted history
Asia has a rich but largely forgotten history of acceptance of queer relationships It was not until the colonial era that sexual and gender diversity came to be seen as a sin

How Chinese tech workers are organizing the online #996 labor movement, despite risks of censorship
Workers are promoting their rights with memes and code repositories.

How Chinese tech workers are organizing the online #996 labor movement, despite risks of censorship

How Berlin Became an Unlikely Home for China’s Artists
The German capital not only offers freedom, but also invites people to provoke and challenge orthodoxy.

China and the United States face off in Djibouti as the world powers fight for influence in Africa
China has been expanding its military ties in Africa for years, through extended peacekeeping missions, military personnel training and the China-Africa Peace and Security Initiative forum. Chinese Foreign Ministry spokesman Geng Shuang said in 2017 that the Djibouti base was part of ongoing efforts to help bring peace and security to the region.

Why Tampons Have Yet to Catch On in China
Thirty years after their introduction to the Chinese mainland, tampons have yet to fully win over Chinese consumers. Because modern feminine hygiene products help reduce the physical and social costs associated with the menstrual cycle, women and scholars alike have hailed them as an important means of liberating th

Small wonders: Chinese scientists develop transistors about the width of a human DNA strand
Beijing team believes it has solved problem of powering tens of billions of nanometre-sized transistors without burning out the chip

Rare albino panda discovered in China
The bear seen on camera in Sichuan province is believed to be only one or two years old. Massive conservation efforts have seen the wild panda population begin to bounce back across southern China.

Alain Gillard
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