China Press Review – November 29, 2019

Press review

Trump’s trade war doing ‘very serious damage’ to U.S. economy, recession risks ‘very high’ without China deal : Economist
President Donald Trump’s unresolved trade war with China is seriously damaging the American economy and, unless a deal is made soon between Washington and Beijing, the risks of recession will substantially increase, a top economist said. Trump has said a “phase one” agreement with China on the various trade issues is nearly complete. But until anything is signed by Trump or his Chinese counterpart, President Xi Jinping, tariffs on hundreds of billions of dollars in goods traded between the two will remain.

China’s economy rises to surpass the eurozone’s economy
China’s economic growth reaches a new milestone this year as it surpasses the eurozone. China has been the second largest economy, but this year it becomes the second largest currency bloc overtaking the eurozone

Opinion: Europe’s economy is the main victim of the U.S.-China trade row
Europe is by far the biggest victim of the long-running trade dispute between the U.S. and China and the permanent uncertainty that it creates for the global economy. New trade figures released this week by the Organization for Economic Cooperation and Development (OECD) help explain why Europe’s biggest economy and major trading powerhouse, Germany, will barely grow this year.

Chinese Defaults to Rise in 2020 as Economy Slows, Moody’s Says
The number of Chinese companies failing to make payments will continue to rise in the year ahead as economic growth sputters and the government attempts to rein in support to indebted companies, according to Moody’s Investors Service.

China’s economic growth can maintain stability in 2020 amid global slowdown
China’s economic growth slowed further in 2019 due to structural, cyclical and external factors. Nevertheless, the economy is expected to maintain a medium-high rate of growth – likely around 6 percent – in 2020, if China can reach a phase one agreement with the US over the year-long trade war and adopt more powerful counter-cyclical measures to boost the economy.

China Condemns U.S. Over Hong Kong. That Won’t Stop Trade Talks

Global Businesses Face New Rules, Former China Commerce Minister Says
Chen believes strategic rivalry between China and the U.S. will persist, along with global trade and economic friction. “The European Union, Japan and other Western countries will weigh the relationship between American pressure and their own interests. They will react in different ways, sometimes to our advantage, sometimes to the contrary,” Chen said. “But as long as China continues to pursue a more open policy and deepen reform, we will still need to do business to live on,” he noted

Generational Christmas Shopping in China
In regard to their gift choices, Chinese Gen Zers are more inclined to buy presents that have a strong national identity. Although Christmas isn’t an official holiday in China, the soft power influence of this Western holiday hasn’t spared China from its consumerism and Christmas cheers, especially with the large expat communities in Hong Kong, Macao, and tier-1 cities in mainland China.

Generational Christmas Shopping in China

An Introduction to Doing Business in China 2020 – New Publication from Dezan Shira & Associates
Now the world’s second largest economy and long since the most populous nation on earth, China offers enormous opportunities for foreign companies, both as a manufacturing labor pool and, increasingly, as a consumer market of seemingly endless potential. Since Deng Xiaoping’s “reform and opening-up” policy for 1978, China’s GDP has developed at an unprecedented rate for over 30 years. However, with China experiencing a long-term deceleration in economic growth and embroiled in a trade war with the US for over a year, the situation looks more complicated than at any point in recent memory.

China’s tech firms look to B2B IoT for more profits
Chinese tech companies that are better known for e-commerce services or consumer electronics are pivoting towards business-to-business (B2B) models as they look to grab a slice of the promising industrial internet of things (IoT) sector. B2B IoT is expected to grow into a $1 trillion market in the next five years. It remains emergent and lucrative as factories, carmakers, and telecom players pursue large-scale digital transformation strategies.

China’s tech firms look to B2B IoT for more profits

China’s overseas financial links deepen despite trade tensions with US
Investors clamored for China’s biggest ever international sovereign bond sale on Tuesday, with orders for the $6 billion raise reaching 3.6 times the issuance, according to China’s Ministry of Finance. “We still have a lot of investors who have confidence in investing in China,” Frank Zheng, head of international fixed income at China Asset Management Company, said in a phone interview Thursday, according to a CNBC translation of his Mandarin-language remarks. Another factor behind this week’s massive sovereign bond issuance is Beijing’s efforts to help Chinese companies expand overseas.

Japanese Hybrids Are Beating the Slump in China’s Car Market
China’s once-in-a-generation car slump is hobbling carmakers around the globe that placed their bets on what is the world’s biggest auto market. But one group is weathering the slowdown unscathed: Japan.

BMW, Great Wall to build new China plant for electric cars
BMW and its partner Great Wall Motor <601633.SS> said they plan to build a plant in China with a capacity of 160,000 cars per year, and which will produce BMW’s electric MINI brand and Great Wall Motor models. The 650 million euro (£558 million) plant is due for completion in 2022.

China small manufacturers’ rising exports to Africa help offset plunging sales to US amid trade war
Some Chinese exporters say a sharp uptick in exports to belt and road countries, particularly in Africa, has helped offset declining demand in the US Sales are being supported by cheap lending to foreign buyers by Chinese banks and improved transport links, exporters say

Germany’s difficult choice could be whether to alienate the US or China
More recently, the two countries have been at odds over defense spending under NATO, as well as on trade and climate change. This tense relationship hit a new low earlier this week when the U.S. ambassador to Germany criticized “senior German officials” for comparing the U.S. to China.

How the geopolitical partnership between China and Russia threatens the West
We are in an era when the risks of major-power conflict are growing. The most likely contenders are commonly seen to be China, the rising power, and the US, the formerly dominant power that’s now in relative decline. The other worrying contingency is conflict between Russia and US-led NATO.

How the geopolitical partnership between China and Russia threatens the West

China’s ‘fifth modernization’ shows its intent to lead the world
At the end of October, the Chinese Communist Party (CCP) summoned 300 of its Central Committee members to hold the Fourth Plenum of the 19th Communist Party Congress — a confluence of words that guarantees a lack of attention from Western media. However, this was a significant event that provided important details about the CCP’s strategic goals and specific steps to realize them, as well as metrics for measuring progress.

China’s Big Ambitions for Space Are Riding on a December Launch
China’s space program recently staged a show test of its first Mars lander on a nearly 460 feet (140-meter) tower at a site near Beijing, looking ahead to the program’s launch next summer. But an equally crucial mission component faces a different kind of test in December.

How Belgium Became Europe’s Den of Spies and a Gateway for China
When a suspected Chinese spy was extradited to the U.S. last year, the Department of Justice praised the “significant assistance” given by authorities in Belgium. Xu Yanjun was arrested in Belgium after going there to meet a contact “for the purpose of discussing and receiving the sensitive information he had requested,” according to the U.S. indictment. Xu was charged with attempting to commit economic espionage, with GE Aviation the main target. The case is pending.

Alain Gillard
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