China Press Review – November 28, 2019

Press review

Donald Trump signs Hong Kong Human Rights and Democracy Act into law, brushing off China’s warnings
Trump signs legislation that could sanction the Hong Kong government for not upholding autonomy from mainland China    Beijing has blasted the act as ‘meddling’ and vowed ‘consequences’ if the US leader signed it

Hong Kong protests: China warns US over Human Rights and Democracy Act
China has warned the US it could take “firm counter-measures” if Washington continues to show support for pro-democracy protesters in Hong Kong.

 ‘Phase one’ deal unlikely to be a real victory for China or the US, economist says
As investors await further developments in U.S.-China trade deal, an economics expert told CNBC Wednesday that the signing of a phase one trade deal between won’t be a real victory for either side.

Just bluster? Beijing angered after Trump signs Hong Kong acts, but little sign of trade talks fallout
China takes aim at US after president signs act allowing sanctions against Hong Kong government   But Beijing still not in a rush to sign an agreement that would end their year-long trade war, analyst says

China and Hong Kong stocks decline after Trump signs Hong Kong bill supporting protesters
US President Donald Trump signs legislation requiring review of city’s special trading status
Alibaba jumps 5.6 per cent in third day of trading

Donald Trump bypasses Congress to give US$20 billion to farmers hurting from US-China trade war
Turning to obscure 1940s law, president seeks to shore up support in rural states ahead of 2020 election    Move resembles strategy Trump used to shift millions of dollars meant for US military to pay for sections of his border wall

If Trump’s interest in the US-China trade war is flagging and a deal is near, what will the future look like?
The US president, preoccupied by domestic politics, and China, determined to persist in its deleveraging campaign, both seem ready for a trade-war truce    While fears of deglobalisation and global decoupling are overblown, the US may still divert trade away from China, at a cost to American consumers

11 mind-blowing facts about China’s economy
China is the world’s largest exporter. Your air conditioner was probably made in China, as was your computer and maybe even your shoes.

China’s yuan is 10 years from ending US dollar hegemony, says Jeffrey Sachs
Jeffrey Sachs predicts a multicurrency world in the future, with the yuan and other currencies a decade away from an even keel with the US dollar    Yuan lags well behind other international currencies in use and convertibility, with analysts sceptical of whether Sachs’ comments are viable

China wants to speed up business reforms, investment to boost slowing economy: premier
hina will speed up reforms to help build a market-based, globalized business environment and break investment barriers for all kinds of companies, Premier Li Keqiang was quoted as saying during a Cabinet meeting on Wednesday.

China Accelerates $142 Billion Bond Sale to Boost Economy
China has ordered local governments to speed up the issuance of debt earmarked for infrastructure projects, so that the proceeds can be invested early in 2020 to help shore up the slowing economy. All localities are required to allocate the recently issued “special bond” quota of 1 trillion yuan ($142 billion) “as soon as possible” to specific projects, the Ministry of Finance said in a statement late Wednesday. There were no details on when the sales will actually begin, or what the total quota for 2020 will be. Analysts disagreed on whether the statement implies issuance will start as soon as December.

China Tech Investor 42: Trade wars, debt, and the future of the Chinese economy with Michael Pettis
China Tech Investor is a weekly look at China’s tech companies through the lens of investment. Each week, hosts Elliott Zaagman and James Hull go through their watch list of publicly listed tech companies and also interview experts on issues affecting the macroeconomy and the stock prices of China’s tech companies.

China’s Middle Class Holds the Keys to Luxury in China
For millennials and Gen Zers, a brand validated by a peer is more trustworthy than one that has invested millions in advertorials in glossy magazines. “The stagnation of middle-class incomes in the rich countries,” according to the Harvard Business Review, has forced luxury brands to broaden their horizons and look for emerging markets in Asia. The largest of those markets is China’s, which currently stands as the world’s second-largest economy by nominal GDP.    China’s emerging middle-class is becoming a fundamental force that is shaping not just the domestic economy but also the global economy. According to Sophia Powe, Editor-in-Chief of Voice on Growth, “China’s middle class is expected to increase from 430 to 780 million by the mid-2020s,” and Interbrand highlights that “the resulting growth of the middle class is becoming the next economic engine in China. From 2009 to 2020, the size of the middle class will have expanded by 350 percent.” This demographic seems to offer an immense opportunity for international brands, but Western players remain conflicted about the segment, not knowing how to engage them.

‘Cloud infrastructure is critical to the future of society’ and Alibaba wants to play its part, says CEO Daniel Zhang
The e-commerce giant is enabling more companies to become digital, data-driven enterprises

P2P: China’s once-booming lending industry must close within two years, government notice says
Once seen as an important credit mechanism, it has been rocked by pyramid-scheme scandals and absent bosses, sparking public anger as well as a government crackdown   Only 427 existing peer-to-peer (P2P) firms were still operating by the end of October, down from 6,000 at their 2015 peak

Alipay, London-based Finablr partner on cross-border payments and blockchain
Chinese fintech giant Alipay is partnering with London-listed payments and foreign exchange firm for cross-border remittance services and blockchain applications, the duo announced on Wednesday.
The move, which is expected to expand the reach of remittance services for both companies, is not the first Ant Financial has made in the UK this year.

Are China’s spenders borrowing their way into economic trouble? Far from it, actually
China’s household debt is less worrying than it looks. International comparisons show it is at a sustainable level in relation to GDP. Furthermore, young Chinese people are proving to be sensible consumers who are still saving

Europe’s Backlash Against Huawei Has Arrived
Resistance to Chinese technology is growing in Germany—and the ripple effects could reach across the continent.

Merkel calls for Europe to agree on China 5G policy
German Chancellor Angela Merkel called on European countries on Wednesday to aim for a common approach towards China and on its possible involvement in the 5G mobile network.   “One of the biggest dangers … is that individual countries in Europe will have their own policies towards China and then mixed signals will be sent out,” she told lawmakers.

China’s social credit system expands to target social security fraud and reward blood donors
Social security ministry says individuals and companies that break law could face credit blacklisting on top of criminal penalties    Health officials urge local governments to look at ways of rewarding people who give blood

How To Manage Chinese Suppliers based on Facts & Data
If you buy products from a few Chinese suppliers, do you have a system for managing them? And do you use data for that? In this post, I’ll show you how to manage Chinese suppliers using facts and data

With foothold in Hong Kong’s stock market, Alibaba sets itself lifespan goal of 102 years
Alibaba is committed to making Hong Kong the hub for its strategy after hot reception to IPO, chairman and CEO Daniel Zhang says   Group emphasises self-developed technology to support its ambitious growth targets over the next two decades

Chinese corporate bond defaults to rise in 2020, as regulators’ tolerance grows, Moody’s says
Overall credit conditions for non-financial companies will be negative in the next 12 months, rating agency says     1 per cent can be tolerated by regulators, as long as defaults are isolated

The US-China trade war and Brexit don’t help, but behind sluggish global growth lies political gridlock
Income inequality, an ageing workforce and a focus on creating short-term value for shareholders are some of the reasons for the global growth slowdown    Behind all of these is a deadlocked political process in advanced economies that prevents investment in much-needed infrastructure that could spur growth

Drug makers including Roche and Novaris slash medicine prices in China to get on reimbursement list
National Healthcare Security Administration adds 70 medicines to approved list  Chinese citizens can use their state medical insurance to cover a significant portion of the cost of drugs on the list

China wrestles with international role as it vows to take lead in realising climate change accord
Financing still a sticky issue as Beijing commits to making Paris Agreement a reality

Drugmakers Cut Prices 61% to Get on Coveted China List
Drugmakers including AstraZeneca Plc and Roche Holding AG agreed to cut prices of some of their newest innovative drugs in China by an average of 61% as the government expanded the number of treatments covered under national insurance. Some 70 new therapies were added for coverage by China’s state-run medical insurance fund after months-long negotiations over prices, according to a notice on the National Healthcare Security Administration’s website on Thursday.

China comes down hard on cryptocurrencies as it seeks to rein in market prone to excesses
Regulators have ordered cryptocurrency firms to shutter and warned investors to be wary of digital currencies

Hong Kong government has ‘not been bold enough’ in nurturing fintech development, says WeLab Bank chairman, former finance secretary Chan Ka-keung
Government must play a more active role in nurturing financial technology development to maintain Hong Kong’s position as a finance hub, said Chan at Post forum    ‘Hong Kong has to be a fintech hub; if you are not a fintech hub you will no longer play any role in finance in the next decade,’ Chan warned

Chinese envoy repeats criticism of German politicians who met Hong Kong pro-democracy activist Joshua Wong
September encounter ‘a direct provocation’ of Beijing’s ire, ambassador Wu Ken says    Incident ‘severely disrupted’ Chinese-German relations

Hong Kong can rely on European Union’s support in ‘difficult times’
Officials representing the EU on diplomatic and foreign affairs tell local politicians ‘Hong Kong can count on the EU’ hours after US president signs act allowing sanctions against city’s government   Group discusses ‘various matters of mutual interest, including the latest developments’  during visit to city

Books review Good sense from Gingrich on China
Most of the problems America blames on its archrival are of its own making, argues the former House speaker China remains what it has been for millennia, and most of America’s problems are not China’s fault but its own, former House speaker Newt Gingrich argues in his new book. Some rhetorical flourishes aside, the Republican elder statesman and Trump adviser rejects the ubiquitous American view that China is about to collapse under its own weight, or that China inevitably must become a Western-style democracy, or that the Chinese people are waiting for a wave of America’s hand to overthrow their evil communist overlords, and so forth.

How China’s Free Market Economy Opened The Door To Romance
For most of China’s long history there were marriages, but not much in the way of romantic love. Only in recent decades has that finally changed.

Alain Gillard
Information Officer
Service Asie Pacifique
Place Sainctelette 2
1080 Bruxelles
Tél 02 421 85 09 – Fax 02 421 87 75
Copyright © 2019 awex, All rights reserved