China Press Review – October 11, 2019

Press review

The trade war talks takeaway: Chinese and US officials agree on lunch but are no closer to deal
Donald Trump says he will meet Liu He at the White House on Friday

Donald Trump’s White House meeting with China’s top trade negotiator raises hopes for partial deal
Meeting with vice-premier Liu He could see new tariffs postponed and may help pave way for face-to-face talks with President Xi Jinping next month Analysts say positive signals suggest agreement on areas such as China buying more US goods may be in sigh

Former world leaders warn US-China trade dispute could lead to new cold war
Kevin Rudd is among a coalition of former leaders who have urged the US and China to settle their differences

The trade war’s damage is done in Asia, and even an interim US-China deal can’t undo the past year
Even if the US and China reached a place-holder deal, uncertainty caused by past reversals in talks would weigh on Asia The trade war has also taken its toll on exports and supply chains, and this cannot easily be undone

Chinese lack of ‘policy pragmatism’ would be biggest threat to long-term growth, veteran economist says
China watcher Andy Rothman says government must continue to take the serious steps the Chinese economy needs San Francisco-based strategist for investment fund Matthews Asia believes gross domestic product growth is ‘the least important’ indicator in measuring performance

Tencent expands health care investments in $500m Hillhouse deal
Chinese conglomerate continues to diversify amid weakness in entertainment sector

Telecoms giant Huawei’s side businesses keep it all in the family
Members of founder Ren Zhengfei’s family play key roles in a web of side businesses that range from hotels to food and wine

China’s yuan rallies after report currency pact may be included in possible interim US trade war deal
Delegation led by China’s Vice-Premier Liu He will meet their US counterparts in Washington on Thursday and Friday Pact may to be similar to the proposed United States-Mexico-Canada Agreement (USMCA), including refraining from currency devaluations

Inventor James Dyson shows electric cars are too easy to make. That’s why his US$2.5 billion project was doomed to fail
Dyson has now abandoned its £2 billion plan to branch out and take on the likes of Tesla and Volkswagen Whereas cars with a combustion engine need about 30,000 components, an electric vehicle needs just 11,000 parts, according to Goldman Sachs

China’s EV market slide extends as Geely, BYD September sales disappoint
Defying peak seasonal patterns, China’s electric vehicle market gave little indication of a rebound in September as Geely, BYD, and JAC Motors reported dismal sales figures on Thursday, pressured by a reduction in government subsidies and broader economic headwinds.

China’s EV market slide extends as Geely, BYD September sales disappoint

China launches environmental investigation in pollution-prone Hebei
Province produces 25 per cent of nation’s steel and is responsible for much of the smog drifting over Beijing Audit began in Baoding and Langfang and will be extended to other cities next month, environment ministry publication says

Americans Are Investing Billions In Corporate China. It’s Time China Returns The Favor.
China wants to free Huawei from the entity list and allowed to buy important U.S. components. Okay. Deal. China wants shipping giant COSCO to be freed of Iran-related sanctions. Okay, but what is in it for me? That is what the Trump administration should be thinking on Thursday as the two sides meet yet again for trade talks already expected to be another round of two steps forward, two and a half steps backward.

Brands are Wrecking Their Sales in China Over East-West Cultural Divide
Foreign brands have traditionally done extensive marketing before expanding overseas, but in a highly political country like China, they must also learn to keep their business separate from their personal politics, or else they are likely to ruin the hard-fought business they worked so diligently to get in the first place.

Brands are Wrecking Their Sales in China Over East-West Cultural Divide

Your Weapons for Fighting Against China Counterfeiting
By Dan Harris on October 10, 2019
I was recently quoted in a CNBC article by Spencer Kimball, on counterfeiting in China. If you read my recent post in which I outline my five rules for protecting your IP in China, most of what I had to say to Spencer will seem familiar. But because that article so nicely puts into real world context what I earlier said, I am writing on it as well.

Your Weapons for Fighting Against China Counterfeiting

China to give local governments bigger share of tax revenues to continue crucial infrastructure investments
Local governments will receive 50 per cent of the country’s value-added tax revenue, as well as a share of income from sales taxes, according to China’s State Council Shanghai was the only one of 31 mainland provincial-level regions not to report a fiscal deficit in the first half of 2019

Hang Seng posts biggest gain in more than a month on optimism about trade war breakthrough
Property stocks rally, as investors hope city leader will boost developers in her policy speech next week China stocks also have a solid day, with shippers taking off

Forget the mask ban. Beijing can solve Hong Kong’s protests by letting a governor run the city
Taking a hard line won’t work, yet doing nothing is not an option. Why not amend the Basic Law, perhaps jointly with the UK, to bring in a tried-and-tested fix? A governor can rebalance the local vested interests and focus on improving people’s welfare

Americans more open to China than Washington seems to be, survey shows
Chicago Council on Global Affairs finds 68 per cent of respondents support friendly ties, a level consistent for more than a decade Other polls, though, suggest growing distrust; and if ‘path of escalation’ continues, researcher says, negative views are likely to rise

War games, Kashmir and a US$57 billion question: as Xi meets Modi, a look at the big issues
The meeting is aimed at thawing the chill in relations fuelled by China’s support of Pakistan’s opposition to India axing the autonomy of Kashmir Amid the territorial issues, economic cooperation remains a priority, with the RCEP free-trade deal and India’s trade deficit among key concerns

Alain Gillard
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