China Press Review – May 3, 2019

Press review

Hope fades that US-China deal will substantively tackle subsidies
US Chamber of Commerce’s head of international affairs Myron Brilliant says two sides are struggling to close the gap issues such as how to roll back tariffs Chinese delegation led by Vice-Premier Liu He is set to arrive in Washington next week to begin what could be final round of talks

U.S.-China Trade Deal Unlikely to Address Cybertheft or Subsidies
China has pushed back on addressing key issues like cybertheft and subsidies in the context of the trade talks, officials from the U.S. Chamber of Commerce said.

China tempers US hints that Beijing and Washington are preparing for the ‘last round’ of trade talks
Chinese Vice-Premier Liu He will head to Washington next week for the 11th round of talks to end the trade war that has hit the global economy for almost a year White House spokeswoman Sarah Sanders suggests meeting between US President Donald Trump and Chinese counterpart Xi Jinping is closer than ever

The US economy still leads the pack, but not for long as spectre of trade war with China recedes
The US economy started the year with a bang but growth is likely to flatten out over the year. Meanwhile, Asia is looking up as a US-China trade deal appears imminent. 2018’s economic divergence is unlikely to continue

In US-China trade war, voters in rural America are suffering the most
Midwest and plains farm states hit hardest by Chinese tariffs, as China seeks to target Trump supporters Illinois suffered most, with its exports to China falling 33 per cent last year, while exports from Minnesota were also badly hit

The US is still outperforming its competitors in global markets, but a rising dollar and the prospect of Donald Trump being re-elected could change that
The US economy has far outgrown other developed economies, especially Japan and Europe. The strength of the dollar is concerning, though, as is President Donald Trump’s fiscal stewardship

China’s African swine fever outbreak and US trade war combine to create perfect storm for Chinese economy
Beijing placed 50-70 per cent tariffs on US pork imports to punish farm states that support US President Donald Trump But with African swine fever threatening 200 million pigs, the biggest consumer of pork in the world is facing a shortage as demand and prices rise

The Real Stimulus Choice in China
It’s not between boosting the economy and deleveraging. It’s between current efforts and much worse. China’s glowing first-quarter numbers brought cheer to traders and gloom to economists worried about the country’s long-term trajectory. As in the past, the government seems to have purchased GDP growth at the cost of rising debt levels — a problem it had vowed to tackle as part of a tough recent deleveraging campaign. The real risk isn’t that Beijing has abandoned that campaign for yet more stimulus, however (it hasn’t). It’s that the stimulus doesn’t work.

China’s $670 billion ‘sheconomy’ is growing like crazy
The value of the Chinese women’s market is expected to reach $670 billion in 2019, according to research analysts.

Clueless: Joe Biden’s China Gaffe Betrays Ex-VP’s Utter Economic Ignorance
China absolutely represents a major competitive threat to many U.S. businesses. It’s patently false to say that China is not competing with the U.S. in the global economy.

Is Latin America prepared for China’s booming tech investments?
Investment by China-based companies in South American infrastructure and emerging tech brands is both an opportunity and a challenge for the region. Geo-politics plays a major part in the economy of the continent, especially when managing the relationship with its noisy neighbor to the north, but governments may consider the most progressive option rather than the one that maintains the status quo and stability.

How 5G will unlock the industrial internet, driving another dimension of mobile connectivity
The stakes are high for industries around the world, as global spending on the internet of things is forecast to exceed US$1 trillion in 2022

As belt and road investments flow into Indonesia, Chinese firms must learn to navigate culture shock
The Indonesian business operating environment is vastly different from China’s rigidly hierarchical one Mainland investors, especially those looking to tap into Indonesia’s 269-million-strong consumer market, must overcome cultural differences to succeed in the country

Are China-France Relations in Trouble?
Even as the two celebrate cultural ties, political and economic tensions remain in the foreground. The European Union is China’s largest trade partner, while China is the bloc’s second most important trade partner after the United States. Two-way trade between the EU bloc and China has climbed to 1.5 billion euros a day. The high value of trade was reinforced in late March when Paris and Beijing signed deals worth 40 billion euros, including the sale of 300 Airbus planes and a contract from France’s EDF Group for an offshore wind farm in China. Despite European divisions and the challenge of coordinating interests across the more than two dozen member states, maintaining stability in ties between Paris, Brussels, and Beijing is very much in China’s interest, especially as tensions between Washington and Beijing continue to simmer.

US steps up belt and road offensive saying it offers fairer deals than China’s ‘debt trap’
Video on US State Department website tells countries to ‘be wary’ of risks from Beijing’s infrastructure drive America is trying to promote its ‘fairer and more transparent’ alternative

The World Shouldn’t Save China’s Belt And Road Project – OpEd
China doesn’t have the money to fulfill its infrastructure-building ambitions. That doesn’t mean the West should pay up.

The World Shouldn’t Save China’s Belt And Road Project – OpEd

‘We don’t want that weakness exposed’: US Senator Lisa Murkowski seeks new law to offset China’s dominance in electric vehicle supply chains
Chair of Senate’s Energy and Natural Resources Committee to introduce Minerals Security Act with fellow senator Joe Manchin China produces nearly two-thirds of world’s lithium-ion batteries and controls most of world’s lithium processing facilities

Money’s too tight to mention for China’s outsized electric vehicle industry
Clouds are gathering on China’s electric vehicle (EV) front, eroding the allure of the once-attractive proposition for car makers and foreshadowing an industry cull. China is home to around 500 EV manufacturers battling for a share of the market. But investors are getting cold feet as EV startups struggle with cutthroat competition, shifting regulations, and the need to partner with existing car makers. As few as 10% of China’s roughly 500 EV manufacturers are expected to survive. Three years ago, investment funds flowed freely, creating the situation that exists today. But with China’s economic slowdown and EV market saturation, startups are now having trouble raising funds.

Money’s too tight to mention for China’s outsized electric vehicle industry

Global Foreign Direct Investment Flows Collapse
More and more companies either choose not to invest in other countries or are prevented from doing so. Global foreign direct investment flows plunged by another 27% in 2018 — after having already plunged 16% in 2017 — to just $1.1 trillion, the equivalent of 1.3% of global GDP, the lowest ratio since 1999, according to new data released by the OECD. It was the third consecutive annual plunge in global FDI flows, as more and more companies either choose not to invest in businesses or assets in other countries or are prevented from doing so.

Global Foreign Direct Investment Flows Collapse

Asia 2020: Everything Is Bigger In China
Buildings. Budgets. Revenues. Power. Square footage. You name it. China has and has built some of the world’s largest data centres and is harvesting some of the fastest growing revenues on the planet from its hubs. But does size matter and is it all what it seems from the outside?

Asia 2020: Everything is bigger in China

China’s major state-owned banks report overall improving assets quality in Q1
China’s six major state-owned banks reported improving assets quality in general in the first quarter of this year. Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of Communications and Postal Savings Bank of China (PSBC) all posted falling bad loan rates year on year in Q1, while that of China Construction Bank and Bank of China remained flat, according to their financial statements.

Foxconn’s Wisconsin plant to go ahead as planned, says Terry Gou after meeting governor Tony Evers
Taiwanese billionaire says plans to proceed after meeting Evers, who appeared to backtrack on earlier criticism of scheme Critics question whether plant will really deliver the promised 13,000 jobs

China’s airlines jostle for position at new mega airport, in rare glimpse into Beijing’s palace intrigue
Air China gets a foothold at Daxing International Airport to escalate competition with China Eastern and China Southern Intensive lobbying, high-level horse trading and political manoeuvring are dominating a drama which will help define the future of China’s airline market

FBI director Christopher Wray making his mark as a loud and insistent China critic
Global Times, a Chinese Communist Party outlet, fires back after Wray says China tries to ‘steal its way up the economic ladder’ The remarks are only the latest in a long string of criticisms by Wray, a growing leader in US security community

US seeks to disqualify Huawei lead defence lawyer James Cole in bank fraud and sanctions violations case
Prosecutors filed a sealed, classified motion to remove Cole, a former US deputy attorney general

China’s airlines jostle for position at new mega airport, in rare glimpse into Beijing’s palace intrigue
Air China gets a foothold at Daxing International Airport to escalate competition with China Eastern and China Southern Intensive lobbying, high-level horse trading and political manoeuvring are dominating a drama which will help define the future of China’s airline market

China and Nepal sign off on ports deal to ease Kathmandu’s dependence on India for trade
Nepal must wait until infrastructure is improved to begin trade through China Kathmandu turned to Beijing after 2015 Indian blockade led to economic crisis

QR code scams strike China, from merchants to traffic tickets
Scammers rip off people trying to pay parking tickets QR payment codes, a mainstay in China’s cashless society, have presented con artists with yet another avenue to secure a quick payday. The scammers enjoy a vast pool of potential victims in China as well, with a recent study showing that 98% of people with smartphones in urban areas use their devices for mobile payments. The quick response codes have become so commonplace that they are used even to pay traffic tickets.

US defence report raises concerns in Washington about Chinese Arctic policy and future of Taiwan
Assessment says ‘Polar Silk Road’ means increased Chinese submarine presence Pentagon says large-scale amphibious invasion of Taiwan would strain the PLA’s resources

China will build string of military bases around world, says Pentagon
Locations could include Middle East, Pakistan, and western Pacific to protect Belt and Road Initiative, report says

China “rapidly closing” gap with Western air forces: Pentagon
Beijing continues to make strides in developing modern airpower capabilities across the full spectrum of platforms, from strategic bombers to armed UAVs.

China made a music video about trustworthiness to promote the social credit system
Promoting “integrity” is the latest theme of China’s propaganda music videos

Alain Gillard
Information Officer
Service Asie Pacifique
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