China Press Review – May 5, 2018

Press review

US-China trade talks begin with Trump call for ‘level playing field’ – business live
Today’s trade talks come a month after the US and China both ratcheted up the tensions, by imposing tariffs on $50bn of each other’s goods.
www.theguardian.com

China ‘won’t bow to US pressure and is ready to fight to the end’ if a trade war breaks out
Senior official strikes defiant tone by ruling out major concessions ahead of visit to Beijing by high-level US delegation
www.scmp.com

A guide to the US-China trade talks: can the two squabbling powerhouses defuse the tension?
While few people expect the two-day Beijing sit-down between delegations from China and the US to end the trade dispute, it could help avert an all-out trade war
www.scmp.com

Donald Trump says he hopes to meet Xi Jinping soon as US delegation arrives for talks to avert trade war
Discussions between the two sides will cover American concerns including forced technology transfers and the US trade deficit with China
www.scmp.com

Trump Trade Officials Will Present a Hard Line in China, but Internally They Are Divided
The Trump administration is headed to China to present the country with tough demands on trade, but what may soon become most apparent is how divided American officials are.

Trump Wants to Negotiate New Trade Deals. First, the Administration Will Need to Negotiate With Itself
But the group lacks one essential element: a clear set of demands for their Chinese counterparts. To deliver a win for the White House on trade in China and elsewhere, senior administration officials will first need to negotiate among themselves.
time.com

Currency Manipulation: Not a Concern for US-China Trade
Recent Devaluations Did Not Achieve China’s Goals

Currency Manipulation: Not a Concern for US-China Trade

US-China trade war not the only threat for Beijing as rate gap shrinks
Interest rate gap between the two economies has narrowed to about 60 basis points
www.scmp.com

Europe Embarks on a China Strategy With a Majority for Screening

Europe is set to tighten controls over foreign investment, a sign of growing wariness of China’s efforts to use its $11 trillion economy to become a dominant global power.
www.bloombergquint.com

ADB chief warns of Belt and Road debt trap
The head of the Asian Development Bank on Thursday warned countries against unsustainable borrowing to fund infrastructure projects, which could leave them stuck in a debt trap.
asia.nikkei.com

China’s Belt and Road Initiative to continue gaining traction in ASEAN countries: AMRO economist
China’s trade with countries along the route of the Belt and Road Initiative has grown significantly over the years, especially with the 10 ASEAN member countries, and the trend will continue to gain traction, chief economist of a regional economic surveillance unit said on Thursday.
www.xinhuanet.com

China’s Belt and Road initiative may have risks, but Citi still sees big opportunities
Marc Merlino, Citi’s global head for its global subsidiaries group, said there are opportunities for not just banks, but institutional and corporate investors. He said that, despite the warnings on debt and default risks, the banking industry is “well positioned” for involvement in a initiative like Belt and Road.
www.cnbc.com

A Lesson for India in Japan’s Approach to China’s Belt and Road Initiative
India would do well to learn from Japan and not remain totally closed to the BRI.
thediplomat.com

How China Is Positioning Itself Among India’s Top 10 Investors Despite Bilateral Differences
Interestingly, despite bilateral and geopolitical differences, economic ties have been steadily growing over the years between the two countries. China ranks among the fastest-growing sources of foreign direct investment in India. “ In 2017, China invested an estimated $2 billion, compared to $700 million in 2016,tripling the funding in a single year,” says Mohammed Saqib, secretary-general of India-China Economic and Cultural (ICEC) Council. Mauritius was the largest source of foreign investment in India, followed by the U.S. and the U.K. in 2016-17.
www.forbes.com

Sri Lanka’s China-backed Port City sees up to $4 billion investment interest
A Chinese-backed real estate project near Sri Lanka’s main port is in discussion with investors for up to $4 billion in investments in its first phase, the developer said on Wednesday.
www.reuters.com

China resumes outbound investment scheme but with tighter controls
China has eased capital controls further by allowing the resumption of an outbound investment scheme that allows domestic financial institutions to trade yuan-denominated products, but strictly prohibiting them from converting yuan into foreign currencies.
www.scmp.com

Asian Development Bank says Chinese lender AIIB not a rival
The Asian Development Bank wants to collaborate with the Asian Infrastructure Investment Bank (AIIB) to meet the region’s growing investment needs and does not see the emerging China-led lender as a rival, the ADB’s president said on Thursday.
www.scmp.com

China is expanding waste bans and it’s going to get messy in the recycling bin
Nobody wants our waste. Maybe we should stop making it?
www.treehugger.com

Hema launches 10 new stores in 10 cities
Hema said it has recently opened 10 stores in 10 Chinese cities, giving the New Retail-driven supermarket chain a foothold in four new markets and expanding its network to 46 stores in 13 cities across the country.
www.alizila.com

JD.com Shakes Up Management Team in Push Toward High-end Fashion
JD.com built its business on the three Cs: computers, communications, and consumer electronics. Hu Shengli led this division from 2016, building it up to take more than 50 percent market share in China in 2017. Netizens called him the “iron chief” for his tireless appearances at JD.com’s conferences announcing more and more brand partnerships.

JD.com Shakes Up Management Team in Push Toward High-end Fashion

Xiaomi’s IPO Prospectus Sheds Light On Its Financial Details
Chinese smartphone and electronics company Xiaomi Inc. has filed its initial public offering prospectus to the Hong Kong Exchange, as it prepares for what would be one of the world’s biggest IPOs this year.

Xiaomi’s IPO Prospectus Sheds Light On Its Financial Details

How Mickey Mouse Conquered China
Disney’s intellectual property has made all the difference.
www.bloomberg.com

GSR Invests $236M In Chinese Energy Conservation Firm Shenwu To Increase Liquidity
GSR Capital has made a strategic investment of RMB1.5 billion (US$235.87 million) in Chinese energy conservation and environmental protection firm Shenwu Group.

GSR Invests $236M In Chinese Energy Conservation Firm Shenwu To Increase Liquidity

Tech Giants Feel the Squeeze as Xi Jinping Tightens His Grip
The government in China, long suspicious of internet companies, now sees ambitious titans like Tencent and Alibaba as useful partners.

China’s Tencent, Alibaba locked in battle to back next AI superstar
China has laid out a road map to achieving global leadership in artificial intelligence. President Xi Jinping recently called on the country’s companies to step up and own the core technologies
www.scmp.com

Tencent Leads $820M Investment In Chinese Humanoid Robot Maker Ubtech At $5B Valuation

Chinese social media giant Tencent Holdings Ltd. has led a US$820 million series C round in Chinese humanoid robot maker Ubtech Robotics, valuing the firm at US$5 billion.

Tencent Leads $820M Investment In Chinese Humanoid Robot Maker Ubtech At $5B Valuation

Huawei, ZTE customers in the US contemplate life without them
Small network operators in the United States are bracing themselves for bad news, as the White House considers restricting the ability of the two Chinese firms to sell products in the US because of national security concerns
www.scmp.com

Tesla’s Elon Musk thanks Chinese government ahead of expected approval for Shanghai factory
Tesla’s celebrity chief executive Elon Musk expressed his appreciation to the Chinese government in an earnings call on Wednesday, foreshadowing a future announcement on the location of its first factory outside the US.
www.scmp.com

China’s Non-Performing Asset ABS Market Declines As Interests Remain Tepid
China has been testing asset-backed securities (ABS) as an alternative method to manage its non-performing assets for more than two years. But as interests among banks to issue new ABS remain tepid, the total issuance size of bad loan-backed ABS dropped last year. Chinese banks issued a total of 19 asset-backed securities (ABS) with non-performing loans (NPL) as underlying assets worth RMB12.96 billion (US$2 billion) in 2017. The total issuance value is 17% lower from a year ago, according to a report released recently by China Lianhe Credit Rating Co., Ltd, a Chinese credit rating agency.

China’s Non-Performing Asset ABS Market Declines As Interests Remain Tepid

South China Sea where ‘flammable ice’ – a potential new gas source – is found
Newest vessels take samples from ocean floor at site of China’s first find of active methane hydrates, a potential new natural gas source
www.scmp.com

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