China Press Review – November 30, 2018

Press review

Zhang Chunlin: ‘Chinese Exceptionalism’ That Undermines Market Economy Is a Dead End
The path China can and should take today is still the road it chose in the early 1990s, which is to continue to reform state ownership in line with the requirements of a market economy.This path is both easy and difficult because the state itself retains the initiative and control. The key is determination. As long as the state is determined to change its behavior, a lot of progress can be made in future reforms.

US ‘could be entering Cold War with China’ over trade, Yale economist warns
The U.S. and China could be in the early stages of a Cold War, veteran economist Stephen Roach told CNBC Friday, warning the global trade dispute is likely last for a “long, long time.

Xi Jinping and Donald Trump’s make-or-break chance in Argentina for a trade war ceasefire
The G20’s leaders are heading to Buenos Aires, but just two will determine the outcome of the event

G20 Trump Vs China: “Expect A Messy Outcome”
“It’s easy to see why financial markets are optimistic that the G20 will herald a détente in the US-China trade war,” says Govinda Finn, Japan, and developed Asia economist for Aberdeen Standard Investments. “But it won’t. The two main protagonists have much to gain from effective displays of personal diplomacy. Both will return home with some points scored. However, the victory celebrations will be short lived. Without a resolution in sight, a slowdown may be inevitable. There are no winners in trade wars. Only compromises. Sadly, we cannot expect many of these this weekend.”

China warned to prepare for lengthy trade war with US
China should prepare for a years-long conflict with the United States, says government adviser Senior economist argues country cannot and should not accept Washington’s terms because America wants to contain its rival

US China hawk Peter Navarro back on guest list for Donald Trump and Xi Jinping’s trade war dinner
Navarro, the controversial White House trade adviser, is now expected to attend crucial meeting, details of which remain shrouded in secrecy Beijing has long been concerned that Navarro, a China hawk for decades, is more interested in containing the country than solving trade disagreements

US and China make late push for deal ahead of Trump-Xi dinner
Trade war truce or escalation to hinge on outcome of meeting at G-20

US ‘must abandon zero-sum mindset’ in its dealings with Beijing, Chinese foreign ministry says
Chinese foreign ministry spokesman Geng Shuang said the US should be confident enough to encourage more exchanges between it and China, rather than attempting to stop them.

Trump’s trade war: Stakes are high at G20 summit
Instead of fighting back aggressively with more tariffs, China is more likely to defend its economy by easing fiscal and monetary policy, letting its currency fall and forging trade deals with other countries, analysts say.

China acts on intellectual property ahead of Trump summit
Patent appeals will go directly to top court, boosting transparency

Decoupling of US and Chinese economies is ‘inevitable’ and is being accelerated by trade war, author says
The speed and extent of the divorce will depend on negotiations Author encourages US to pursue Anglophonic trade alliances with other liberal economies in Pacific Rim

Francis Fukuyama: China-US relations will get worse before they get better – and not just because of Trump
Audrey Li speaks to the author of The End of History on how his views have changed amid China’s rise on the global stage, and how hostility towards China among US businesspeople has become the driving force behind deteriorating relations

Beijing sends clear message to Hong Kong: join forces with Shanghai and boost China’s financial power
Hong Kong and Shanghai can complement each other as financial centres and jointly help China boost its competitiveness globally, say top officials

Chinese economy shows further signs of slowing down ahead of Trump-Xi showdown
‘Economic winter has come’, says one analyst after November’s figures show further signs of cooling activity PMI suggests manufacturing sector was on the brink of contracting

China’s Official Manufacturing Gauge Worsens Amid Trade War
The first official reading of China’s economy in November showed the manufacturing purchasing managers index on the brink of contraction. New export orders contracted for a sixth month while the non-manufacturing gauge, reflecting activity in the construction and services sectors, expanded but at a slower pace.

Why Communist China Is Home to So Many Billionaires
The Bloomberg Billionaires Index tracks the wealth of the 500 richest individuals globally, 38 of whom are Chinese. More broadly, global wealth research firm Wealth-X found that of the world’s 2,754 billionaires, 680 (25 percent) were in the U.S. and 338 (12 percent) were in China. UBS Group AG estimates a new billionaire is minted in China every two days.

Rival US and Chinese innovators have a common cause: climate change
Jill Baker says rising sea levels, pollution and extreme weather are global problems that must be jointly tackled by the best minds in both the US and China. The hi-tech clusters in Silicon Valley and the Greater Bay Area must lead the way

What’s next for Huawei as New Zealand becomes latest US ally to reject 5G bid?
Europe is now key for Huawei’s overseas roll-out of 5G network equipment, according to a Jefferies report Huawei has already signed 22 5G equipment supply contracts

Bytedance in talks with Wall Street for up to $1.5 billion loan
Bytedance is reportedly in talks to get a loan from banks that are hoping to win a role on its much-anticipated IPO including Goldman Sachs, Morgan Stanley, Citigroup, UBS and Bank of America. People familiar with the matter said the Beijing-based startup is looking to borrow as much as $1.5 billion. The company initially planned to borrow $500 million but decided to bump up the deal size due to high interest from many banks. The deal could take place as soon as in the coming weeks.

Briefing: Bytedance in talks with Wall Street for up to $1.5 billion loan

ByteDance fined by Chinese regulator over illegal medical advertisements
China has tightened control over online medical advertisements after a college student sought out an experimental treatment and died in 2016

Alibaba looks to Beijing’s OTC market for emerging retail opportunities
In the space of one month, Chinese e-commerce giant Alibaba, and its related affiliates, have invested more than RMB 3 billion ($432.1 million) in two emerging new retail players. On November 19, Shanghai Yunxin, the company wholly owned by Ant Financial, said it would invest RMB 1.2 billion in vending machine solution provider UBox. On October 17, Alibaba agreed to invest RMB 2 billion in alcohol retailing platform 1919.

Alibaba looks to Beijing’s OTC market for emerging retail opportunities

The numbers are in. U.S. retail’s biggest shopping holiday of the year, from Thanksgiving Day to Black Friday to Cyber Monday – even Small Business Saturday and Super Sunday – generated $24.2 billion in online revenues, according to Adobe. But that figure is still far below Alibaba’s 11.11 Global Shopping Festival, which in 2018 reached $30.8 billion– in just 24 hours. See the infographic below for the full details:

Paying Tribute to China: How Western Brands Can Avoid Cultural Insensitivity
The repercussion of Dolce & Gabbana’s China blunder has been, so far, fierce. On November 23, D&G published the founding duo’s apology on social media site Weibo for a reviled and racist ad campaign, yet many Chinese netizens viewed the apology as insincere. In the fashion brand’s homeland of Italy, mainstream media coverage about the event has consistently commented on the Chinese market as an increasingly challenging environment. Their hinted question is: Why are China’s new generations so hard to please?

Paying Tribute to China: How Western Brands Can Avoid Cultural Insensitivity

Market downturn exposes excess capacity facing automakers
When new-vehicle sales in China were rising the past two years, a slew of domestic carmakers and several of their global peers were already operating well below production capacity. The recent downturn in the market, which started in July, is now exacerbating the excess capacity some automakers are saddled with.

China’s plastic waste import ban forcing US and Japan to rethink options
Research in the US suggests ban will leave 111 million tons of plastic trash displaced by 2030, while waste that used to be exported is piling up in Japan Export of waste from the West to Malaysia, Vietnam and India surges, but illegal dumping prompts calls to follow China and impose restrictions

As U.S.-China Trade War Rages, Some Australian Farmers See an Opportunity
Rising tariffs could lead Chinese buyers to look for alternatives to American products. But Australia could suffer if the conflict slows China’s growth.

China’s ‘Belt and Road’: The noose around Africa’s neck
Africa is the continent least responsible but most vulnerable to climate change, which means that Beijing’s ‘Belt and Road Initiative’, the largest development plan of the modern era, could easily send its fragile ecosystems over the edge. Is the Chinese government truthful when it says the BRI is eco-friendly?

China’s ‘Belt and Road’: The noose around Africa’s neck

Both China and India agree on what a resolution entails, but neither wants it, for different reasons

Vietnam and Russia expand joint South China Sea gas projects
Moves to ease dependence on Beijing threatens to sharpen regional conflict

Russia, China may cooperate in Arctic energy projects — Rosneft CEO
The Russian-Chinese cooperation in the energy sector may continue in joint development of the Arctic shelves

US sends guided-missile cruiser to South China Sea to challenge ‘excessive’ Chinese claims
USS Chancellorsville confirmed as having conducted ‘freedom of navigation’ exercise on Monday Operation highlights ongoing tensions in the disputed waters in lead-up to meeting of Chinese President Xi Jinping and US President Donald Trump at G20 summit

Chinese corruption suspect returned from EU state for first time
Fugitive official extradited from Bulgaria, according to country’s top graft buster

China wants academics and think tank members to help defuse tensions with US
Beijing has eased restrictions on budgets and how long researchers can stay in United States for some state-backed think tanks and experts, sources say

How China Can Help Its Empty-Nest Seniors
With millions of elderly Chinese now living alone, it’s incumbent upon the state to give them a better life.

books : China and the WTC – a real game changer
This is a short book and there are times when a bit more detail would have been useful. The author also at times overstates his case. Still, he’s surely right that China has been taking unfair advantage of the world trading system and that its authoritarianism and state direction of the economy are no models to follow.

China and the WTC – a real game changer

Ex-Interpol chief facing corruption charges is expelled from Chinese government advisory body
Meng Hongwei’s wife claims her husband is target of ‘political persecution’ Buddhist abbot quits committee and is removed from ethics role

Enforcement undermines Xi’s monopoly on policy
President Xi Jinping has brought significant institutional changes to policymaking processes in China since he came to power in 2013. Since the 1980s, the Politburo and its standing committee (the PBSC) were the peak decision-making bodies under China’s party-state dual-governance structure. The State Council was the highest administrative agency managing economic and other affairs on a daily basis, while a few leading groups coordinated between the party and the state on financial, economic and foreign affairs. But since 2013, Xi has notably strengthened the role of leading groups at the expense of both the PBSC and the State Council.

Enforcement undermines Xi’s monopoly on policy

Alain Gillard
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