China Press Review – November 7, 2019

Press review

Donald Trump’s ‘phase-one’ deal will not resolve issues behind US-China trade war, Larry Summers says
Issues likely to linger, but cutting tensions could reduce uncertainty and act as ‘a spur to growth’, former US Treasury Secretary Lawrence H. Summers said     US has ‘legitimate concerns’ about technology and China should be willing to address them, Summers said

Why Taiwan’s role will be crucial in next phase of the US-China tech war
Decades ago, Taiwan bet big on semiconductors to keep itself afloat, producing an industry powerhouse in the process   Now, as development focuses on AI and 5G – technologies at the heart of the current US-China tech war – chip manufacturers on the island may be forced to choose sides

Dominance of state-owned firms in China must be ‘seriously confronted’,  former US trade negotiator says
Barbara Weisel faces off at forum with ex-interpreter for late Chinese leader Deng Xiaoping over access to the country’s markets and alleged technology theft    Former translator Victor Gao says Beijing will never succumb to US pressure as surrender would herald the collapse of the Chinese government

China set to make new offer to EU as agriculture chief Phil Hogan admits there has been ‘limited progress’ on investment deal
Next Brussels trade chief urges both sides to redouble efforts to reinvigorate negotiations to seal ‘ambitious’ investment agreement      Hogan insists ‘I got a sense China wants to work with Europe closely’ but admits a number of key issues still need to be resolved

China has a steady hand on its slowing economy, but can it prevent a crash landing?
Policymakers have little room to manoeuvre even if the domestic economy is holding up. With the trade numbers hit hard by US tariffs, their prudent policies won’t go far enough to ease the pain if the external environment does not improve

How AI and human rights have been dragged into the US-China tech war, threatening wider split
This is the first instalment in a four-part series examining the brewing US-China war over the development and deployment of artificial intelligence technology   Part 1 looks at the likely impact of the US’ move to add some of China’s emerging AI champions to its trade blacklist, ostensibly on human rights grounds

Europe looking to China as global partner, shunning Donald Trump’s US
Macron portrayed himself as envoy for EU during China visit, conveying message that bloc has largely given up on US president   Washington increasingly isolated on as climate change, role of World Trade Organisation and nuclear accord with Iran, as EU and Beijing align

Trade war: deal signing still uncertain with US missing from Xi Jinping’s itinerary
Chinese president will visit Greece and Brazil next week but there is no sign of a stop to meet Donald Trump to ink a ‘phase one’ agreement    Trump had suggested meeting in the United States after Chile cancelled the Apec summit, at which the pair had initially planned to meet

Emmanuel Macron ends China visit with slew of trade deals and green pact
Paris and Beijing signed 40 bilateral contracts in the fields of aviation, agro-food, energy, tourism, health, finance and digital

French President Emmanuel Macron’s visit to China was a success, but more could have been achieved, experts say
Paris and Beijing agree dozens of commercial deals worth US$15 billion but skirt thorny issues such as trade liberalisation and aid to Chinese state-owned companies   Chairman of the EU Chamber of Commerce in China says visit showed European unity

China needs to arrest slowing economic growth, and it has the means to do so
The prospect of slower Chinese growth is gaining widespread acceptance, but this trend is dangerous    For the sake of China and a global economy primed for recession, Beijing must halt the decline in GDP growth and implement a powerful stimulus package

Shenzhen growth rate falls sharply in third quarter as US trade war weighs on China’s hi-tech hub
The growth rate for the home city of Huawei and Tencent slowed to 6.6 per cent in the first nine months of 2019 from 7.4 per cent in the first half of the year    Exports dropped 9.3 per cent, while the private sector investment rate plummeted to only 0.3 per cent, underlining the impact of the US trade and tech wars

Why China’s cross-border e-commerce market is surging
At $5.8 trillion last year, China has the second-largest retail market in the world. One area in the market in particular is showing promise: the cross-border e-commerce channel, says a new report from global consultancy Deloitte, the China Chamber of International Commerce and AliResearch, which is a part of Alibaba Group.

Can China Become a Leader in Sustainability?
 “There is no luxury without China, there is no sustainability without China,” said François Pinault, Chairman and CEO of Keringat the K Generation Talk & Award Ceremony in Shanghai recently. He was emphasizing how important China is strategically for luxury’s future both in terms of sales and sustainability. China has been the biggest supplier of raw materials for the fashion industry for decades, and raw material accounts for 70 percent of the total fashion industry’s carbon footprint. The country is held responsible for eliminating carbon emissions in these areas. After speaking to a group of experts in the eco-fashion industry, we found that these changes are slowly taking place in all of C

How Can Luxury Beauty Brands Keep up in Asia? Look for these Beauty Barometers
The Coco Game Center by Chanel kicked off in Tokyo and generated so much social media buzz, reservations were fully booked a week before it arrived in Shanghai. Photo: Shutterstock
Historically, luxury beauty brands have based their identity on exclusivity, prestige, and impeccable service. And while they’ve prided themselves on being tastemakers and experts, this position has kept them from fully hearing their customers’ needs.

Mainland China ‘a key growth market’, Hong Kong firm says as more companies from city flock to Shanghai imports expo
We want to come again next year, architecture firm’s director says     Belt and Road Initiative needs Hong Kong firms’ services, according to tea products and nuts processing company

Bytedance launches consumer lending app on Android
Bytedance in October quietly launched a lending app for Android devices, providing users with consumer credit, installment payments, and credit card services, media outlet TechPlanet reported.

Jack Ma-backed start-up fund steps up search for next biotech unicorn from Hong Kong
The US$131 million fund started by Jack Ma seeks to nurture the next biotech unicorn, as it looks to mirror the success of AI start-up SenseTime and fintech firm WeLab    The fund has invested US$35 million in more than 20 start-ups, including Hong Kong-based genetics testing company Prenetics

China auto sales still hold ‘great potential’: ministry
A recent and significant slowing in China’s auto sales will not affect long-term growth potential, which remains robust for the next several years, a senior Chinese official said on Thursday as reported by Chinese media.

Tesla challenger Nio, Intel’s Mobileye to bring autonomous vehicles to China, other major markets
The two companies are developing a self-driving system targeted for initial release in China from 2022    The system will be integrated in Nio’s electric cars and Mobileye’s own driverless ride-hailing services

Gigafactory is just weeks away from starting its mass production of Made-in-Shanghai Tesla electric cars
Elon Musk has predicted that Tesla will make at least 1,000 cars a week in Shanghai by the end of the year    The starting price of the locally made Model 3 car is about US$50,000

China’s 400 richest billionaires increase their total wealth by 22 per cent to US$1.29 trillion despite trade war, slowing economy
Qin Yinglin, chairman of Muyuan Foodstuff, almost quadrupled his wealth to US$16.6 billion, as China’s pork crisis has sent the company’s shares through the roof     Jack Ma, former chairman of Alibaba Group Holding, once again topped the Forbes list with a net worth of US$38.2 billion

Forbes reveals China’s 10 richest people
Alibaba founder Jack Ma topped the Forbes China Rich List for the second year running with his fortune rising to $38.2 billion from $34.6 billion in 2018.     More than half of those who made the list saw their wealth rise in the past year, while a quarter saw their fortunes decline, Forbes said.

China’s richest 400 tycoons shrug off economic slump to increase their combined wealth by 22 per cent to US$1.29 trillion
Qin Yinglin, chairman of Muyuan Foodstuff, almost quadrupled his wealth to US$16.6 billion, as China’s pork crisis has sent the company’s shares through the roof   Jack Ma, former chairman of Alibaba Group Holding, once again topped the Forbes list with a net worth of US$38.2 billion

German Drugmaker Partners With Beijing To Treat Stroke in Hebei
A recently announced stroke care network in the city of Handan will aim to treat patients within 4.5 hours, a critical window for recovery.

Taiwan’s economy is stronger than expected despite the trade war. That could bode well for its president
Last week, Taiwan posted third-quarter GDP growth of 2.91% from a year ago — higher than 0.1% in Singapore and 2.0% in South Korea, two other export-reliant developed Asian economies.  Taiwan’s economy was helped by a cyclical upturn in electronics demand and reshoring of Taiwanese production from China as companies move to avoid U.S. tariffs on imports from the mainland.   The positive reading could bolster incumbent president Tsai Ing-wen’s bid for a second term as she seeks to distance Taiwanese economic reliance from China amid jitters from a nervous electorate about Beijing’s influence in the vibrant democracy.

China still counting on Hong Kong to enact its own national security law ‘or the city will face unbearable cost’, says Beijing adviser
‘Costs for Hong Kong will be unbearable’ if it does not act, Wang Zhenmin says   Fears that Beijing could impose the legislation itself after last week’s meeting of Communist Party elite made national security a priority

Hong Kong sets out regulatory framework for virtual asset trading platforms, emphasises investor protection
Operators can decide whether they want to apply for a licence from the SFC     Framework seeks to address key regulatory concerns, such as safe custody of assets, know-your-client requirements

Positions vacant: China opens civil service jobs to Hong Kong and Macau residents for first time
Guangdong says it has set aside 26 of 3,115 vacancies for graduates from special administrative regions    Businessman welcomes move but says interest may be limited because young Hongkongers lack experience of mainland

China’s outbound tourism likely restrained as trade war, yuan weakness deter overseas travels: Euromonitor
The number of Chinese taking overseas trips is likely to be reduced by impact of trade war and yuan weakness over the next five years: Euromonitor    Yuan has weakened 7 per cent this year against the US dollar, induces ‘currency manipulator’ tag

A Look Back at China’s Favorite Imports
Following economic reforms, the country’s consumers enjoyed an increased flow of imported goods.In the late 1970s, economic reforms took place on the Chinese mainland. As a result, Chinese consumers had increasing access to imports, such as Coca-Cola, KFC, Sony Walkman, and even pop culture.  This video highlights popular imported products in the Chinese mainland, from the 1970s to the 1990s.

China’s New Cryptography Law: Still No Place to Hide
The PRC National People’s Congress on October 26 enacted the long awaited Encryption Law (密码法), which will come into effect on January 1, 2020. The official text of the law can be found here and an English language summary can be found here:  The Law is another piece of the comprehensive cybersecurity system China is rolling out under its Cybersecurity Law and MLPS 2.0 system we previously described in China’s New Cybersecurity Program: NO Place to Hide and China’s New Cybersecurity System: There is NO Place to Hide.

Alain Gillard
Information Officer
Service Asie Pacifique
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