China Press Review – November 13, 2017

Press review

Transforming from imitators to innovators
E-commerce and e-payment, two of the “four new inventions of China”, reached a new peak this year as the Singles Day sales on Nov 11 reached 253.97 billion yuan ($38.2 billion). China’s “new inventions” can be more accurately described as “innovations”, because there have been similar inventions in foreign countries before.

Ali Baba’s Rival Broke $19.1 Billion In Sales Against Baba’s $25 Billion During Biggest Shopping
November 11 sales in China drive record breaking revenues for Ali Baba and JD, likely to become a major focus for other retailers in coming years

China E-Commerce: Resistance is Futile

The PRC National People’s Congress last week promulgated a second discussion draft of the PRC E-Commerce Law (电子商务法草案). If you are interested in commenting, you can find the new statute and a portal for comments here.

The Beijing show over, Donald Trump and Xi Jinping push their own world trade orders at Apec
US president sends hardline message on South China Sea and trade protectionism while Chinese leader offers his country as a defender of globalisation

Analysis: China’s success is tied to its relationship with the US despite what you may read
Chinese dream of national rejuvenation hinges in part on international stability in which a peaceful coexistence with Washington is crucial

Chinese economy on the verge of collapse, requires thorough reforms: Central bank governor
Zhou Xiaochuan, governor of People’s Bank of China, said that China’s economy is currently very vulnerable due to the large amounts of borrowed capital.

Here’s the real reason China’s top central banker is ringing the alarm bell
Warnings over the build-up of credit in China are nothing new, but when Zhou Xiaochuan speaks out, ears prick up. But before you start panicking, it’s worth considering his agenda

One in three Chinese banks fails to create economic value, McKinsey report says

Of the 40 lenders monitored by consulting firm just 27 added value in 2016, but other experts say the research paints only half a picture

Will President Xi Jinping Let Markets Decide China’s Future?
After consolidating power at the recent party congress, a key question is whether Xi Jinping, facing large debts, will follow Deng Xiaoping’s path and open up China’s economy more

Will President Xi Jinping Let Markets Decide China’s Future?

Is there safety from ‘grey rhinos’ in China’s economic numbers?
Analysts are looking to this week’s official data releases for signs the country is weaning itself off investment-led growth

Catching glimpses of strains in Chinese local economies
‘New era’ according to Xi, but growth stalls, ballooning debts

Money will start flowing out of China again, but it’ll be much more targeted
Experts told CNBC that outbound mergers and acquisition deals from China are expected to pick up in 2018 — despite Beijing’s crackdown this year Sectors that will benefit are those that are tied to China’s Belt and Road Initiative, and are included in the encouraged section of the new investment guidelines Outbound deals fell in the first nine months of 2017 compared to a year earlier

China’s M&A activity to rebound next year, helping boost global deal flow to US$3.2t

Beijing to ‘green light’ more overseas investments by Chinese companies as stable yuan dampens concerns of capital outflows

China and UK expected to be very busy with M&A activity
Report predicts both countries will see huge investment in the next two years

China’s Silk Road bid hits the buffers
But on the ground it has run into problems. Projects traverse insurgency-hit areas, dictatorships and chaotic democracies, and face resistance from both corrupt politicians and local villagers.

IDC predicts 55% of China’s economy to be digital by 2021
Fifty percent of the global gross domestic product will derive from the digital economy, with the percentage in China to potentially hit 55 percent, predicted Wu Lianfeng, vice-president of the market research company IDC China in Beijing on Monday.

Chinese investors among most optimistic about returns over the next five years, survey finds
Returns of 12.6pc expected on mainland and 9pc in Hong Kong

Putin has no doubts China will be the world’s largest economy in coming years
Russia’s head of state said that he had held talks with China’s President Xi Jinping on the sidelines of the summit

ASEAN likes, but also fears, China’s economic weight
Despite China’s growing economic footprint in Southeast Asia, the country does not quite have that mammoth clout in the region – yet. But the day it acquires that too much economic weight for comfort – with handy geopolitical weapon to boot – may not be that far away in the horizon.

Four big issues to watch out for at the Asean summit
The Asean summit comes after an Apec gathering in Vietnam where leaders of the remaining 11 countries in the Trans-Pacific Partnership agreed to push ahead with the trade deal despite the United States’ withdrawal earlier this year.

China’s Xi vows to ‘open wider’ while defending jobs
President Xi Jinping on Saturday vowed to further free up China’s economy, again urging Asian countries to work closely together in a speech at the Asia Pacific Economic Cooperation (APEC) meeting in Vietnam.

Contradictions in US-China relations

Trump’s policies can provoke a workers’ revolt in the USA but the Chinese proletariat — the largest in the world — shall also rise up in a greater and a stronger wave of the class struggle as the crisis worsens and the state resorts to starker repression

Contradictions in US-China relations

China’s three new economic challenges for the U.S.
What new challenges does a stronger China pose to the United States?

With “3 x 10 billion” open platform, Tencent is transforming into a big content company
The headline message at the conference was the “3 x 10 billion” support for driving the transition to content. Sounding more like a Chinese political campaign, it is actually designed to make content production easier, allowing creators to make more diverse content for more channels whi

Will China Bring an Energy-Debt Crisis?
It is easy for those of us in the West to overlook how important China has become to the world economy, and also the limits it is reaching. The two big areas in which China seems to be reaching limits are energy production and debt. Reaching either of these limits could eventually cause a collapse.

Have Chinese missed the takeaway from Xi Jinping’s environmental message?
The Chinese president has put ‘ecological civilisation’ at the centre of his plans for reform, but the message may have been lost beneath a heap of takeaway food containers that is growing by 60 million a day

Driven By China, Global Carbon Emissions Rise in 2017
The projected 2% increase in carbon dioxide emissions comes from growth in China’s smokestack industries and jeopardises the Paris climate agreement goals, say experts

Driven By China, Global Carbon Emissions Rise in 2017

Invest in innovation to stay competitive
Hong Kong must target areas such as financial technology if it is to regain its past glory as one of the world’s most competitive cities

Will Beijing’s renewed free-trade ambitions create strong mainland rivals to Hong Kong?
Shanghai free-trade zone expected to be ‘counterpart of Hong Kong and Singapore’

Beijing ranked China’s most attractive city
Using location and traffic data, the research report reviews the attractiveness of 60 Chinese major cities from the perspectives of urban vitality and traffic congestions.

These 35 cities in China are as wealthy as some countries
An infographic, made by Visual Capitalist, compares some cities in China, which has a population of 1.4 billion people. The numbers are gross domestic product (GDP) by purchasing power parity (PPP). Have you heard of the cities of Suzhou, Wuhan or Tangshan, which are as wealthy as Austria, Israel or New Zealand?

East China hosts more German companies
A China-Germany new businesses cooperation zone in east China’s Jiangsu Province is expected to be home to 100 German enterprises by 2020, local authorities said Sunday

China yet to exploit potential market for care facilities for its rapidly ageing population

Japanese firm Nichii Gakkan sees a chance to bring its specialised nursing facilities to some of China’s 230 million over-60s

Chinese family businesses are increasingly looking beyond their kin for managers

“More and more family members are willing to take a back seat in the family business”

China’s Financial Deregulation to Save Wall Street Giants From Collapse
The opening of mainland China’s financial sector to foreign investment is expected to moderate the buoyant Wall Street expansion, and lower the risks of a boom-bust cycle in the US financial sector.

Online studies in China booming
China’s online education market is forecast to reach 194 billion yuan ($29 billion) this year, with the number of active users set to surpass 110 million, according to a report released on Sunday.

Xi Jinping ‘Emperor for Life’. But really?
At the recent Chinese Communist Party Congress Xi filled major government bodies with friends and loyalists. But there are no possible successors. Like France’s King Louis XIV, Xi can say, “The Party? It’s me”. The Central Committee filled with managers of state owned firms: a sign that economic reforms will be slow. Nationalism is a double-edged sword. If Xi fails, his many enemies in the Party will coalesce.

Why Chinese Communist Party’s largest elite body now has a lot of new members but not many young ones
Party chief Xi Jinping has stacked Central Committee with loyalists

China must root out corruption or Communist Party will be erased from history, graft-buster warns
Senior official warns in article that corruption threatens party’s grip on power

Alain Gillard
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