China Press Review – May 9, 2018

Press review

China ‘wants to talk about cutting US trade deficit but will not back down on industrial policy’
Visit to Washington by Xi Jinping’s top economic adviser Liu He for next round of trade talks expected to see push to discuss ways of reducing its trade surplus

Donald Trump calls Xi Jinping for trade result that ‘benefits American businesses’
While the US president pushed the America-first view, China’s leader called for continued communication to achieve a ‘mutually beneficial’ result

US pork imports stuck at Chinese ports as Beijing ramps up inspections amid trade row
Officials checking every incoming shipment, causing huge delays, director of world’s biggest pork company says

China’s bond market is the unlikely winner of US-China trade spat. Here’s how
Aidan Yao says the silver lining to the US-China trade dispute is that it may force China to further open up its capital markets, giving investors easier access to Chinese bonds

Shanghai tops list of China’s highest earners, but national wealth gap continues to grow
Average salary in financial centre rose 9pc in first three months to US$2,700, more than five times the figure in Tibet

Chinese Corporate Bond Defaults Rise With 19 Failures So Far This Year
As China Inc. deleverages, corporate bond defaults are on the rise this year. As of May 7, a total of 19 domestic corporate bonds have defaulted, compared to 49 bond defaults for all of 2017, according to Chinese data provider Wind.

Chinese Corporate Bond Defaults Rise With 19 Failures So Far This Year

Why Luxury Brands Won’t Mind’s Earnings Dip
The first quarter earnings of Chinese e-commerce giant didn’t meet investors’ expectations when they were announced yesterday. While net revenues were up 33.1 percent to 100.1 billion RMB ($16 billion), and the number of annual active users rose 27.6 percent to 301.8 million, reported adjusted earnings per share were just 11 cents, down from 15 cents last year

Why Luxury Brands Won’t Mind’s Earnings Dip

Intel Capital Invests in Chinese AI, Cloud, Semiconductor Start-ups
Intel Capital, the global investment arm of Intel Corporation, announced a total of US$72 million worth of new investments in 12 technology start-ups, including three Chinese companies, at the Intel Capital Global Summit yesterday.

Intel Capital Invests in Chinese AI, Cloud, Semiconductor Start-ups

EQT Closes $800M Mid-Market Asian Fund To Invest In China, Southeast Asia
The new fund aims to create industry leaders through development themes such as sales growth, strategic repositioning, digitalization or participation in industry consolidations. The sector focus in the region follows EQT’s overall sector approach, which is composed of healthcare, services, consumer, TMT and industrial technology.

Chinese technology stocks outpace US equivalent in resurge despite trade war concerns
Internet search-engine operator Baidu and e-commerce giant Alibaba both posted results that exceeded analysts’ expectations

Video: Alibaba’s ‘New Retail’ explained
Online or offline: These cannot be the only options for consumers. See how Alibaba is transforming traditional retail with a complete digitization of commerce.

Ant Financial, CDH Lead $200M A Round In Chinese Catering Company Xiyun
Xiyun International, a Chinese group meal catering company, has raised US$200 million in a series A round of funding from Ant Financial, CDH Investment and Koubei, a local commerce portal under Alibaba and Ant Financial.

Tencent-Backed Online Fashion Retailer Meilishuo Plans $500M IPO
Meili Inc., a Tencent-backed online fashion retailer, is planning to raise a total of US$500 million in an initial public offering in the U.S., according to media reports citing insiders. Buys 10% Stake In China Logistics Property For $115M
China’s second-largest online retailer has acquired 10% of Hong Kong Stock Exchange-listed China Logistics Property Holdings (CNLP) for HK$899 million (US$114.52 million), according to CNLP’s security filing.

China’s sees sales growth slow despite topping estimates

The Beijing-based e-commerce giant posted its fifth consecutive quarter of slower growth in an increasingly crowded domestic market

Xiaomi investors question US$100 bn IPO valuation
It’s not entirely clear whether potential buyers are balking at the initial $100 billion number for the smartphone maker, or whether bankers and executives are seeking to temper expectations so Xiaomi can enjoy a higher first-trading-day pop.

These three industries in China are poised to benefit most from blockchain, survey says
Logistics, government and medical services are areas that enjoy the most potential to adapt blockchain technology in China, according to a joint survey by PwC and VeChain on Wednesday.

Singapore’s GIC Leads $260M Series B Round In Chinese Biopharma Company CStone
GIC, the Singapore investment firm managing the state’s foreign reserves, has led a US$260 million (RMB1.653 billion) series B financing in CStone, a Chinese bio-pharmaceutical company.

WeDoctor raises US$500 million in private share sale

WeDoctor Holdings, an online health care services provider backed by Tencent Holdings, has completed a US$500 million private share sale, in the second major equity financing deal in China’s nascent “health-tech” sector in three weeks.

InterContinental doubles down on China, targets high-end hotel brands
InterContinental Hotels Group (IHG) is doubling down on the China market and plans to acquire or develop more luxury brands to compete against other hospitality giants, according to its chief executive for the country.

Shady Housing Agents Dupe Green Tenants Into Taking Out Loans
Beijing government is investigating agencies that partner with lending platforms to get quick capital.

Australia hikes aid to win hearts and minds in Pacific as China’s influence grows

Australia has become increasingly alarmed at China’s push into the Pacific which could potentially upset the strategic balance in the region

Concern Mounts in Beijing over Xi’s Aggressive Tactics
A number of technocrats and professionals are dissatisfied with the fact that ideological concerns such as nationalism have hijacked China’s economic and foreign policy,” said Wu, a former politics lecturer at Tsinghua University. He added that the recent clash with the U.S. has strengthened the view that China should return to the “keep a low profile” foreign policy mantra laid down by Deng Xiaoping – and that China should work with global norms and not circumvent or challenge them (Cable News Hong Kong, April 23). It remains to be seen whether President Xi, who has emphasized “brandishing the sword” in a full range of economic and geopolitical issues, might be amenable to at least toning down Beijing’s overarching policy of attaining superpower status by the 2040s.

China’s ambitious foreign policy agenda
Despite China’s recent achievements some intellectuals have been wondering whether the country actually follows a grand strategy. Wang Jisi, dean of the School of International Studies at Peking University, doubts this and says it does not suffice just to identify core objectives. He thinks there should also be a plan on how to reach and coordinate these objectives. Asia expert and political scientist Gerhard Will, who used to work for the Berlin-based German Institute for International and Security Affairs (SWP), concurs. “A genuine world power needs more than just military and economic might.” Namely diplomatic clout and soft power. So that it must not solely resort to military threats or economic incidences to influence other nations.

China, Japan, South Korea urge North Korea to scrap nuclear weapons
The leaders of the three Asian powers, which together account for more than 20 per cent of the global economy, also confirmed the necessity of free trade, Li said. Abe, Li and Moon also discussed how to promote people-to-people, cultural and educational exchanges as Japan is expected to host the 2020 Tokyo Summer Olympic Games and China the 2022 Beijing Winter Games.

The BRI needs fewer Chinese characteristics
Xi Jinping’s signature Belt and Road Initiative (BRI) has attracted a great deal of global attention. But China’s eagerness for infrastructure projects may not mesh with locals’ needs and could heighten political risk for host governments who collaborate with it.

The BRI needs fewer Chinese characteristics

Kazakhstan Belt and Road Initiative: The road to somewhere
Khorgos, a new state-of-the-art port in the middle of the Kazakh desert, sums up the grand ambitions of the Belt and Road Initiative. But it is as much driven and funded by Kazakhstan as it is by China. Rather than being a white elephant, it has real implications for trade.

Silk Road opens Central Asia to European pro AV

China’s new Silk Road vision is helping transform the region from ‘land-locked’ to ‘land-linked’ between Asia and Europe, says Adrian Pennington.

Silk Road opens Central Asia to European pro AV

Wind in the sails: China accelerates its maritime strategy
The ocean features prominently in its programmatic efforts to do so. China’s 21st Century Maritime Silk Road, part of the much-vaunted Belt and Road Initiative, is key here. It aims to build convergence between China and other countries on economic, political, and security matters in line with China’s preferences for global governance. Beijing’s 2017 “Vision for Maritime Cooperation Under the Belt and Road Initiative” makes this clear.

Wind in the Sails: China Accelerates Its Maritime Strategy

Interview: Sherry Madera on greening the Belt and Road
A new investor alliance is spearheading work to ensure China’s Belt and Road infrastructure projects are sustainable

EBRD says China’s Belt and Road Initiative key to boost global trade, development
The European Bank for Reconstruction and Development (EBRD) said Tuesday that China’s Belt and Road Initiative is a great move to boost global trade. “This is a very important initiative to enhance global trade, drive growth and enhance financial connectivity

China’s New World Order: Partners and Profit

Insights from Shaun Rein.

How To Do Business In China
The Chinese market offers as many challenges as opportunities to most industries, and of course, data centres.

How to do business in China

Chinese man mistakenly pays over US$23,000 for a single steamed bun
Owner of takeaway outlet, whose business makes about the same amount in a year, trying to trace customer to give him refund, newspaper reports

The U.S. and China: More Alike Than We’d Like?
The similarities in government propaganda, toeing the ruling party’s line and political self-censorship are disturbing.

Child suicide covered up in China, says think tank as it calls on authorities to publish figures
Report’s assessment of youth suicide suggests academic pressures may have an impact, but authors believe their findings are the tip of an iceberg

‘China Week’ to promote cultural products overseas
The event series, named “China Week: Inheritance and Innovation,” will be held by China’s cultural centers around the world from May 10 to June 30, focusing on promoting products related to cultural relics and museums, intangible cultural heritages, animations, digital technologies, and so on.

China’s Tencent signs broad cultural deal with Britain
Chinese internet giant Tencent will announce a cultural trade deal with Britain, including film, video games and fashion, deepening cooperation between the two countries and setting the stage for its own international expansion moves.

Tencent signs deal with UK to work on technology and culture

Tencent will tie up with British institutions including the BBC and the University of Oxford on initiatives such as content production, e-sport, quantum computing and artificial intelligence.

The Popular TV Shows Taking Chinese Soft Power Abroad
Overseas episodes of much-loved programs are increasingly aligning with the national government’s development goals.

Alain Gillard
Information Officer
Service Asie Pacifique
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Twitter: @alaingillard
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