China Press Review – November 6, 2019

Press review

No one wins a trade war’: French President Emmanuel Macron points to common ground with China on tariffs and climate action
But Beijing still needs to open the door wider to foreign businesses, Macron says

Trump tariffs cost China $35 billion, hurt both economies: U.N.
A trade war between the world’s top two economies cut U.S. imports of Chinese goods by more than a quarter, or $35 billion, in the first half of this year and drove up prices for American consumers, a U.N. study showed on Tuesday.

China has replaced U.S. as locomotive of global economy: Kemp
China has replaced the United States as the engine of the global economy, providing by far the largest contribution to growth in recent years and pulling along the world’s smaller economies in its train.   The Asian country accounted for 28% of all growth worldwide in the five years from 2013 to 2018, more than twice the share of the United States, according to the International Monetary Fund.

Huawei founder calls on Europe, Japan to step up development of alternative tech amid US blacklist
The US trade ban restricts the Chinese telecoms equipment giant from buying vital American hi-tech components

Alibaba defends No.1 position in China’s e-commerce market
First earnings since Jack Ma’s resignation sends optimistic signal to the market

Chinese conglomerate Fosun’s pharmaceutical unit to increase spending on innovative drugs, step up generic medication production
Company to partner with teams developing new drugs, acquire patents and create joint ventures to improve capabilities

China Moves to Demolish a Growing Construction Waste Problem
Cities turn to foreign equipment as China struggles to deal with a mountain of used building materials.

Winning Singles’ Day Strategies for Luxury Brands
Global brands understand that the participation in Singles’ Day comes with a billion-dollar sales opportunity.Singles’ Day, also known to as 11.11, is the largest e-commerce day in the world. In 2017, gross merchandise value (GMV) accounted for $25.3 billion, while in 2018 Alibaba has reported record sales of more than $30.8 billion in 24 hours. Basically, during the 11.11 shopping extravaganza, Alibaba sold more in one day than other countries have in an entire year. And according to McKinsey, Singles’ Day has exceeded considerably “the overall growth of online retail in China.” However, analysts remarked that the annual growth rate has declined from 36% in 2017 to 27% in 2018. Basically, despite strong sales and robust revenue growth, the stakes remain high for Alibaba.

Will Alibaba’s AR Makeup Technology Change the Chinese Beauty Market?
Earlier this June, Alibaba’s mid-year shopping festival, Tmall 618, saw record breaking sales for both domestic and foreign brands, many of whom surpassed benchmarks set by 2018 Singles’ Day. And with 2019 Singles’ Day just around the corner, the tech giant has set the bar even higher for this November’s shopping frenzy.

Chinese overseas M&As jumped 152 per cent in third quarter, but still more than 40 per cent behind 2018, Ernst & Young says
The total value of overseas M&As for third quarter stood at US$19.8 billion    For nine-month period, the total value stood at US$42.8 billion, lowest since 2014

China’s 5G dominance could lead to a ‘dangerous’ internet split with the US, Donald Trump’s FCC chief warns
Beijing may aim to use superfast next-generation tech to build a separate, heavily censored internet, Federal Communications Commission chairman Ajit Pai says    ‘We don’t want the internet to be Balkanised,’ he says at the Council on Foreign Relations in New York

China’s ‘Belt and Road’ strategy has a new competitor — enter America’s ‘Blue Dot Network’
 What happens when poorer nations lured by China’s cheap loans can’t pay them back? In a bid to provide an alternative to China’s multi-billion-dollar Belt and Road infrastructure initiative, Washington has announced its ‘Blue Dot Network’ designed to fund infrastructure “sustainably”.

French President Emmanuel Macron tells Chinese leader Xi Jinping talks are needed to calm Hong Kong situation
French leader calls for restraint and says he raised the topic ‘on several occasions’ during his visit    Two sides find common ground on need to defend free trade and fight climate change as Donald Trump starts process of pulling US out of Paris Climate Agreement

China army exercise puts drone defence capability to the test ‘after years spent studying US tactics’
PLA drill included challenging weather and battle scenarios to boost combat readiness    Experts say China has been studying US military engagements closely

China’s Fourth Plenum: Implications for Economic Reform
Despite an unprecedented gap between consecutive plenums, China’s Fourth Plenum last week produced little to interest economic reform watchers, settling instead for managing the status quo.  It appears that concrete reforms may have to wait until a resolution is reached in trade talks with the US, and will be a key source of leverage for Beijing.     Investors should, however, not anticipate any dramatic policy reversals as the Fourth Plenum did not propose anything that would contradict recent market openings and other reforms.

China’s latest political reforms are more about consolidating Xi Jinping’s power than liberalisation
We could talk until the cows come home about the specific discourse in other sections of the bulletin — dealing with “one country, two systems,” dealing with foreign policy (and the “common destiny for mankind”). But the crux of the bulletin is absolutely clear, and this conditions the attitude to all other aspects dealt with at the Fourth Plenum.

Chinese and US defence chiefs push for stable military ties and to improve cooperation
In first direct talks since Esper took office in July, General Wei Fenghe underlines Beijing’s stand on various thorny issues, from Hong Kong to the South China Sea

Alain Gillard
Information Officer
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