China Press Review – November 4, 2019

Press review

U.S.-China Truce Shouldn’t Sacrifice the Rest of Us
A proposal by Nobel economists to resolve the trade war ignores the whole point of having a global trading system.

US-China Trade Talks Open In Washington DC
America and China will reach tentative trade deals that appease hard-liners on both ends. But they will never reach a real deal that changes the structure and the culture of the Chinese society—and therefore end the trade war.

Don’t be fooled. The US and China have done a deal, but it’s not the real deal
This interim arrangement may temporarily help both sides alleviate the pain of the tariff war, but it provides no incentive for a more comprehensive deal The truth is the gap is getting ever wider – putting both peace and growth at risk

The Fed thinks the US-China trade war and Brexit risks have receded. Investors should avoid making the same mistake
Investors have shown a tendency to swing between extremes, reacting to news with excessive bearishness or bullishness. It’s jarring to see the Fed do the same, ruling out more rate cuts because of fleeting progress in Brexit and the trade deal

China says will spare no effort in fulfilling promises to open its economy, no ‘promise fatigue’
There is no promise “fatigue” about China’s efforts to open its economy to foreign businesses, the government said on Monday (Nov 4) on the eve of week-long import fair, after the European Union said China needed to make rapid and substantial improvements. The EU, China’s largest trading partner, said last week ahead of the Shanghai fair that there was a risk of “promise fatigue”, urging China to show “more ambition and genuine effort towards rebalancing and a level playing field”.

EU, China to sign an agreement on geographic indications – France’s Macron
The European Union and China will sign in Beijing an agreement about protected geographic indications, French President Emmanuel Macron said on Monday in Shanghai. Macron was speaking at a meeting with French and German companies in Shanghai. Geographic indications are locally made products protected by EU’s law.

Macron in China: What can social media reveal about Sino-European relations? | #TheCube
Emmanuel Macron has made trade one of the staples of his foreign policy, and his trip to China this week signals his aim for deeper agreements with Beijing amid a shrinking global economy and tariff tensions. The French president is visiting along with Phil Hogan, the EU trade commissioner, as well as a delegation of 30 businesses. As China seeks globalisation, what can social media tell us of recent diplomatic relations between Beijing and France

Alibaba quarterly revenue jumps 40 per cent ahead of Singles’ Day shopping festival
The e-commerce giant’s revenue for the quarter ended September 30 reached US$16.6 billion, beating estimates

Daniel Zhang on Alibaba’s new generation of leaders and lasting 102 years
This year marks the 11th 11.11 Global Shopping Festival. Over the past decade, 11.11 evolved from a novel promotional campaign to draw consumers to what was, in 2009, the newly established Tmall into the world’s largest single-day shopping event today.

China’s army of online shoppers stop at buying one thing – diamonds. That appears to be changing, De Beers says
Retailers are blending physical and virtual experiences to build trust in diamond sales online
China online diamond sales have grown ‘significantly,’ says De Beers

European Union warns of ‘promise fatigue’ ahead of China International Import Expo
EU mission in Beijing ‘urges China to show more ambition and genuine effort towards rebalancing and levelling the playing field’ China sees trade fair, which opens on Tuesday, as an opportunity to showcase its free-trade credentials

Hong Kong companies throw their hats into ring at Shanghai’s import fair, as they latch on to world’s largest trade expo for business
About 200 Hong Kong exhibitors will participate in the China International Import Expo in Shanghai next week, 40 per cent more than last year They will take up 22,000 square metres of exhibition space, 60 per cent more than last year

China to pursue shared platforms to upgrade manufacturing sector after shelving ‘Made in China 2025’
Ministry of Industry and Information Technology unveils guidelines on promoting the upgrading of the country’s vast manufacturing system The ‘Made in China 2025’ plan to upgrade China’s hi-tech industries drew a barrage of criticism from the United States and European Union

China looks to raise an extra US$7.1 billion to support hi-tech manufacturing
Advanced Manufacturing Industry Investment Fund was set up in 2016 to support ‘Made in China 2025’ plan Second phase funding target represents a 150 per cent increase on first round

China’s innovative companies should be zooming ahead. But unfavourable lending system holds them back, report says
China’s lending system favours state-owned enterprises, leading companies to put less in R&D to cover short-term loans US companies are far more profitable than Chinese counterparts as a result

Both the state and market have a role to play in successful tech and innovation policies, and we can all benefit from the opportunities created
Whether in the US or China, state-led industrial strategies have played a key role in economic growth and development. Today, industrial policy is back on the agenda in many countries, after decades on the fringes

The Huawei dilemma: Washington still stuck trying to balance national security against US tech supremacy
Hardliners insist Beijing is a security threat that must be addressed, while others caution sweeping restrictions could push research offshore The policy impasse is creating chaos for the US tech industry, with annual sales to Huawei alone of more than US$14 billion

Amid the tech war with the US, China’s plan for a digital Silk Road into Europe is sure to raise hackles
China’s penchant for presenting its plans in visionary terms extends to its scheme for digital cooperation with Europe Given the US’ attempts to block Chinese tech from making inroads globally, China is presenting its collaboration with Europe as part of international cybersecurity efforts

Germany wants Huawei to self-declare its trustworthiness to join 5G push
Huawei has been defending its “trustworthiness” amid comments from Germany’s spy chief, though the country’s government has already drafted new security guidelines allowing the Chinese equipment maker to supply equipment for Germany’s future 5G network.

Germany wants Huawei to self-declare its trustworthiness to join 5G push

US still out front in tech race, China experts say in response to Pentagon claim
Chinese progress ‘exaggerated’ in range of technological advances despite claim US is lagging behind Defence official tells seminar China is either competitive or catching up in many hi-tech fields

China’s telecoms operators launch 5G tariff plans as network roll-outs push ahead despite trade war
Monthly 5G service plans in China start at a minimum of about US$18
The country is projected to have 110 million 5G users by next year, when more affordable 5G smartphones become available

China’s 5G mobile service debuts to lack of applause from customers
Too costly, too sparse, too slow for some users but phone prices expected to start falling next year China Unicom, China Telecom and China Mobile launch new service in 50 major cities

China’s 5G future is now, so what next?
China’s mobile carriers began offering 5G mobile services for the first time to the public on November 1. The increased transmission speeds will change the way the world works, but is the rest of the world ready?

China’s regional economic gap widens as more than one-third of provinces fall short of growth targets
Official data showed poorer provinces grew at slower rates in the first nine months of the year, while wealthier coastal provinces were more resilient Regional disparities have been exacerbated by domestic structural issues and the fallout from the trade war with the United States

Chinese provinces count the cost of trade war, tax reforms as fiscal revenue growth slumps
Official figures show average growth rate among 28 province-level authorities in first nine months was just 3.1 per cent, compared with 7.8 per cent for the same period of 2018 Beijing saw its fiscal revenue grow by just 0.3 per cent in the January-September period, down from 6 per cent a year earlier

China’s subsidies lifting rural villages out of poverty, but is Xi Jinping’s plan sustainable?
In 2015, President Xi Jinping set a deadline of 2020 to eradicate poverty in China, with 850 million Chinese taken out of extreme poverty in the past 40 years One village in Southeastern Jiangxi province has benefited from government help, but it faces an uncertain future without a sustainable source of revenue

China’s small factory activity best in nearly three years, but outlook for Asia region remains fragile
The Caixin/Markit factory purchasing managers’ index (PMI) improved to 51.7 in October, its highest level since February 2017, and from 51.4 in September But the regional outlook remained uncertain, with exports from South Korea and Singapore continuing to plunge amid the US-China trade war

East Asia Summit buffeted by great power rivalry
Asia’s summit season is upon us once again. Over the next few weeks leaders from across the region will gather to discuss a vast array of issues from North Korea’s nuclear program to education harmonisation. At the centre, purportedly at least, of the many gatherings is the East Asia Summit (EAS). It brings together the leaders of the ten ASEAN members as well as from Russia, China, Japan, South Korea, Australia, New Zealand, the United States and India to drive cooperation to make the region more peaceful, stable and prosperous.

East Asia Summit buffeted by great power rivalry

China’s leadership avoids tough economic challenges
It is typical for political leadership to seek stabilizing efforts when trends become overwhelming. This was primarily the reason for the recent fourth plenary meeting between Xi Jinping and his cohorts. The meeting procured nothing new; instead, this session demonstrated that the Chinese leadership is stuck chasing events. This is evidenced in China’s economic and financial indices. For the leadership to halt the flow of destabilizing trends, Xi should pursue monetary reform that would enshrine the internationalization of the renminbi. Because this is a political act, it would offset dangerously inept financial and economic trends that will continue to whipsaw Beijing.

Bubble or smart bet? Blockchain-stock frenzy in China spotlights hype and hope for investors in new technology
Profitable application of promising technology is years away, analysts say Xi Jinping’s call for rapid blockchain development creates quick boom and bust for linked stocks

India now has worse air pollution than China
The government’s stepping in to fix it, but this is unlikely to blow over easily. India declared a public health emergency in the Delhi region Friday after air pollution levels spiked to “severe-plus” levels, blanketing the city in toxic smog and forcing people to stay indoors for safety reasons.

India Now Has Worse Air Pollution Than China

China’s 9-mo solar deployments drop 45% Y/Y
China brought online 16 GW of solar photovoltaic (PV) capacity in the first nine months of 2019, down 45% from a year earlier, shows data by China’s National Energy Administration.

China’s Canton Fair suffers third straight decline in export orders as trade war weighs heavily
Exporters at the autumn session of the Canton Fair signed deals worth 207 billion yuan (US$29.4 billion), a drop of 1.9 per cent compared a year earlier In total, 186,015 buyers visited the event in Guangzhou, down 2 per cent from a year earlier, with organisers having expected some 200,000 buyers to visit 60,767 booths

P2P platform operators urged to exit as regulators mull next clampdown phase
Chinese internet financial risk and online lending regulators may be intensifying efforts to clamp down on the online peer-to-peer (P2P) lending space after a recent meeting to discuss progress in regulating the sector, according to the state-backed news publication Securities Times (in Chinese).

P2P platform operators urged to exit as regulators mull next clampdown phase

The Four Best Ways to Protect Your IP from China
In this post we set out the four most important steps you should take to both minimize the likelihood of having a China IP problem and to maximize your chances of prevailing should such a problem actually arise.

The Four Best Ways to Protect Your IP from China

China’s “Mini-Me” Culture is Perfect for Luxury Brands
Millennial moms are an obvious target for what appears to be a surging “mini-me” trend in China. That’s because young Chinese female consumers are more susceptible to peer pressure due to the country’s large social media penetration (50 percent) and the tremendous aspiration to become “bai fu Mei” (white, wealthy, and attractive) much like the country’s top female celebrities, Fan Bingbing and Angelababy. It doesn’t hurt that many Tier-1 and Tier-2 millennial and Gen-Z mothers are constantly on social media sites and can be viewed as “content creators” who easily incorporate their parenting and mini-me adventures into these platforms.

China’s “Mini-Me” Culture is Perfect for Luxury Brands

How 5 KOLs are Taking Brand Audience Engagement to the Next Level
Inviting followers to participate in makeovers and exclusive events has become such a popular strategy because it reduces the distance between the influencer and his or her fans and makes him or her appear more approachable. This is particularly important for top tier influencers whose engagement rates tend to drop the larger they become. What’s more, fans who are chosen for these campaigns will heavily share their experience on their own social media accounts, further promoting the influencer and the brand.

How 5 KOLs are Taking Brand Audience Engagement to the Next Level

China’s slowdown freezes mega deals in third quarter as venture capitalists watch trade war, Hong Kong protests unfold
Transactions in Asia-Pacific fell by a fifth in the third quarter amid slowdown, none surpassing the billion-dollar mark Top four biggest deals involved mainland Chinese companies in fintech and electric-car industry

China must relax residency curbs, land rights to offset effect of trade war, former finance minister says
China’s former finance minister Lou Jiwei has urged Beijing to ease curbs on residency and land ownership to offset the effects of the trade war The outspoken reformist official said the two systems had caused a ‘series of economic, social and political problems’

Empowering the EU–Japan connectivity partnership
Now, the challenge is to teeth these paper tigers. The EU–Japan Connectivity Partnership follows logically from the value propositions that both sides presented in contrast to China’s Belt and Road Initiative (BRI). In a thinly veiled reference to BRI modalities perceived as problematic, Tokyo labelled its proposition ‘partnership for quality infrastructure’ in 2015. Its initially bilateral project-based approach now also involves a multilateral effort to promote quality infrastructure — for example in the G7 and G20.

Empowering the EU–Japan connectivity partnership

Can Carrie Lam keep her deathbed promise to David Akers-Jones by helping Hong Kong’s poor and building more housing?
A Business Professionals Federation report suggests radical reforms to Hong Kong’s minimum wage, MPF, tax system and housing policy Taking on these suggestions would help Chief Executive Carrie Lam keep her promise to the former chief secretary

China Is an Underrated Threat to the World
There’s a growing consensus that behind the Chinese economic colossus is a threat to not just the United States and other Western democracies, but the very concepts of free speech and personal liberty, not to mention property rights and the rule of law that we consider the foundations of civilization. If something so utterly meaningless as a tweet about Hong Kong rises to the level that it requires “thought control” then what is next?

Forget the trade war and Hong Kong. Beijing just showed everyone that Xi Jinping is more powerful now, not less
Rumours ahead of the Communist Party’s Central Committee meeting about a possible shake-up of China’s top leadership have proved off the mark

China is testing emotion recognition in surveillance push
China is attempting to predict potential crimes using artificial intelligence (AI), employing the technology to monitor the emotional state of its citizens, the Financial Times reported.

China is testing emotion recognition in surveillance push

The Making of ‘Made-in-China Feminism’
When analyzing gender antagonism in China, it’s important not to fall back on easy stereotypes.

How China Can Refloat Its Cruise Industry
Complex regulations and changing consumer tastes have combined to send some international cruise liners in search of safer harbors.

China’s Future Space Ambitions: What’s Ahead?
China has an impressively long-term space strategy mapped out. Here’s what to watch for in the coming years.

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