China Press Review – May 4, 2018

Press review

No breakthrough but some consensus in China-US trade talks, Beijing says
Beijing and Washington remain ‘very divided’ after two days of dialogue

Trump wants China to reduce trade deficit by $200B by 2020
The Trump administration has asked China to reduce its trade deficit with the U.S. by $200 billion by the end of 2020, striking an assertive stance in talks aimed at averting a trade war between the world’s two-largest economies

US-China trade war
US Treasury Secretary says delegation having good conversations on trade disputes with China
Steven Mnuchin’s comments came at start of the second day of talks in Beijing aimed at averting a trade war

California governor warns against US trade war with China
California Governor Jerry Brown on Thursday urged greater cooperation with China to resolve a trade dispute, while taking an apparent swipe at US President Donald Trump.

US fruit exporters hit with extra Chinese customs checks as trade dispute takes its toll
American producers who have already been hit by tariffs face further problems as shipments face longer delays at major Chinese ports

China to suspend checks on US scrap metal shipments, halting imports
The North American unit of a Chinese customs inspection firm said it would suspend checks on cargoes of scrap metal from the United States for a month from Friday, effectively halting all imports of US scrap.

China service sector growth picks up in April as new business expands: Caixin PMI
Growth in China’s service sector picked up in April as new business and employment grew at a faster rate, a private survey showed on Friday, signalling a solid rise in a sector that Beijing is counting on to maintain economic growth.

Yuan hits three-month low after People’s Bank of China lowers reference rate amid trade war concerns
Spot yuan fell to 6.3700 against US dollar before retracing to 6.3562 on Thursday

As US interest rates rise, Chinese bonds might emerge as a winner
Shaw Yann Ho and Jason Pang say China’s monetary policy easing and inclusion in global indices make Chinese bonds attractive, with cross-border investment offering the best opportunity for returns

Stop the bleeding: private firm sends SOS over China’s debt-cut efforts
Zhejiang-based DunAn Group is appealing to its home province for a bailout as the central government tightens its grip on financial risks

What is ‘Made in China 2025’ — and why is it a threat to Trump’s trade goals?
What is Made in China 2025, and why is it getting so much attention now? Here are four things to know.

Cooperation – not North Korea – to take centre-stage at summit with Japan and South Korea, China says
No areas will be off limits in talks next week when Chinese Premier Li Keqiang visits Japan, but North Korea is not going to be a focus, a senior Chinese diplomat said on Friday.

Kazakhstan must look beyond the Belt and Road
At Khorgos, the Kazakh border town which is the first stop on the new Silk Road to Europe that Beijing has been building and promoting

Train brings Chinese fruit to Europe
The rail connection between China and Europe is part of the One Belt One Road initiative of the Chinese government. In coming years, the development of the railway connection will be continued.

China sets up 75 overseas trade zones with Belt and Road countries: FM
China has set up 75 overseas trade and economic cooperation zones with countries along the Belt and Road route since its inception five years ago, Spokesperson of Chinese Foreign Ministry Hua Chunying Thursday said

China’s Belt and Road Gets a Central Asian Boost
Uzbekistan’s transformation will fast-track the new Silk Road.

High-Speed Empire
Chinese Expansion and the Future of Southeast Asia

Emerging irritant: on China-Pakistan Economic Corridor
CPEC is ultimately a thorn in India-Pakistan relations. The best way forward would be for India to come up with a concrete plan on PoK. Otherwise, its protests on CPEC may well be ignored by stakeholders in the project, with little consequence.

Hiring Local Employees in China
The employment of staff offers fundamental challenges that all foreign companies or Representative Offices entering China need to master. What rules and regulations apply in creating labor contracts? How do employees and employers pay social benefits and taxes? What differences exist between employing locals and foreigners? Since Representative Offices or foreign companies that have no legal entity in China aren’t allowed to hire local staff directly, how can they employ staff? Can HR outsourcing help solve these issues? These questions, and more, tax companies as they begin the hiring process.

Hiring Local Employees in China

Why Your Startup Should Think Twice About China
A China lawyer I know just sent me an article entitled, 4 reasons why your startup should go to China RIGHT NOW, along with the comment that he’d like to see me “set the record straight on this.” Okay, here goes. I hate this article. I hate how it makes it seem like every startup should go to China when in reality only a small percentage should. I also hate how it makes it seem like doing business in China will be all upsides. Trust me (and my firm’s China tech lawyers) that it just’ ain’t so.
This article starts out by saying that “your startup, whatever it is, could benefit from being in China RIGHT NOW” and then it lists the following four reasons why:

Why Your Startup Should Think Twice About China

China’s Venture Capital Market Tops World As $15.6B Deployed In April Alone
Chinese venture capital activity continued its blistering pace of growth in April, with investors inking 209 deals with venture-backed companies worth a total US$15.59 billion. April’s total VC deal value in China was 166% higher than the monthly average in the U.S., according to the China VC Tracker released by China Money Network today

China’s Venture Capital Market Tops World As $15.6B Deployed In April Alone

Farmers may be worried about China’s canceled soybean orders, but other countries are filling the void right now
While net Chinese purchases of American soybeans fell for three straight weeks, the U.S. sold to countries in the EU, the Americas and Southeast Asia, USDA Foreign Agricultural Service data showed Thursday. The “U.S. accounts for 37 percent of total soybean exports throughout the world. Beyond Brazil, there’s really nobody else,” said Rich Nelson, director of research at Allendale, an agricultural market research and trading firm. In addition, “we are now into the season where China almost exclusively buys from Brazil,” said Ted Sefried, chief market strategist at brokerage Zaner Ag Hedge.

Chinese AI Chip Maker Cambricon Unveils New Cloud-Based Smart Chip
China has been working to reduce its dependence on technology imports, including computer chips. In March, it was reported that state-backed China Integrated Circuit Industry Investment Fund Co. is in talks with government agencies and corporations to raise at least RMB150 billion (US$23.96 billion) to build up China’s domestic semiconductor industry.

Chinese AI Chip Maker Cambricon Unveils New Cloud-Based Smart Chip

Short-seller Andrew Left expects Alibaba, the world’s most shorted stock, to reach US$250
Bullish prediction comes ahead of Alibaba’s release of fourth-quarter results

In China’s cities, young people with rural ties are angry
They are one of the biggest threats to the country’s social stability

US defence official accuses China of ‘predatory economic activities’ in Indian Ocean
Joe Felter also says US ‘should be concerned’ about reports Beijing has deployed missiles to three outposts in the disputed Spratly Islands

Stick to Karl Marx’s true path, Xi Jinping tells China’s communists in speech to mark 200th birthday of ‘greatest thinker of modern times’
Week of propaganda events to commemorate German philosopher climaxes in speech by President emphasising party’s socialist roots

Why US and China have such different views about an American girl in a cheongsam

Reaction to school prom photo posted on Twitter was less negative in the country whose culture some said had been appropriated

Alain Gillard
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