China Press Review – October 15, 2018

Press review

China’s central bank chief hints at further monetary easing amid trade war
Beijing has no shortage of policy tools to ensure economic growth remains on track, PBOC governor Yi Gang says
www.scmp.com

China ‘must recapture reformist mood’ to safeguard its economic miracle
Having watched the decades-long transformation unfold, veteran economist Zhang Fan warns of economic challenges ahead in his new book
www.scmp.com

Donald Trump threatens fresh round of China tariffs as he claims Beijing’s meddling is worse than Russia’s
US President says further trade war measures ‘might’ be in the mix and repeats claim that Beijing has sought to interfere in American politics
www.scmp.com

‘US-China trade war not a threat to world economy’
US Treasury Secretary Steven Mnuchin (pic) pushed back against warnings that Washington’s trade fight with China imperils the world economy, saying that pushing Beijing to open up will be good for all.
www.thestar.com

Will the yuan deteriorate past 7 per dollar? Don’t bet on it happening any time soon, survey shows
China is unlikely to let the yuan weaken past the key psychological level of 7 per dollar any time soon, according to market observers.
www.scmp.com

China’s central bank says market to play decisive role in yuan exchange rate
China’s central bank Governor Yi Gang said the government would continue to let the market play a decisive role in establishing its currency exchange rate, refraining from using it as a weapon, amid an escalating trade war with the United State
asia.nikkei.com

Trump-Xi meeting at G20 may not go ahead, warns US Treasury Secretary Steven Mnuchin
IMF meeting in Bali told that White House is still to decide on whether meeting between US and Chinese leaders in Argentina will go ahead
www.scmp.com

How Donald Trump’s assault on the trade deficit with China has sapped American power
Richard Heydarian writes that the economic glue which once undergirded stability in Sino-American relations has placed the two superpowers on a collision course
www.scmp.com

Trade war with the US shows China needs a new market-driven model for monetary policy
David Brown says while a more decisive interest rate cut would be beneficial now, what China’s central bank really needs is more transparency in monetary policy and less government dictation
www.scmp.com

‘No chances of making money’: Chinese retail investors have lost more than 100,000 yuan each this year
US-China trade war has also contributed to sharp falls in Shanghai Composite Index
www.scmp.com

China’s central bank chief hints at further monetary easing amid trade war
Beijing has no shortage of policy tools to ensure economic growth remains on track, PBOC governor Yi Gang says
www.scmp.com

IMF World Bank: What the economic outlook holds for Asia
outlook for the mainland could be even worse. One of the ways that some analysts have anticipated China could mitigate the risks of the trade war is by devaluing its currency. But in a statement released on Saturday, the fund members agreed to “refrain from competitive devaluations” and not to target exchange rates for “competitive purposes”. According to media reports, China has agreed to this in principle – but the Chinese currency has lost close to 10% of its value this year, and many analysts are pointing to more depreciation ahead. Key to watch will be how much the Chinese allow their currency to fall, and whether the US Treasury calls Beijing a currency manipulator in a report due this week – which would ratchet up tensions even further between the two superpowers.
www.bbc.com

China’s export base hit by trade war offers sweeteners to lure professional services firms
Guangzhou city government unveils financial incentive package for new arrivals, while regional authorities look to shore up manufacturing
www.scmp.com

Chinese private sector fears grow over state’s role as Qingdao sends officials into firms to set up labour unions
Eastern city’s push to set up state-controlled unions inside private enterprises increases businesses worries of further intervention in their operations
www.scmp.com

China’s economy cannot count on consumers
Households save more as economic uncertainty builds A more nervous household sector is also reflected in an increasing propensity to save. Each month we survey consumers’ inclination to save, invest or spend, given prevailing interest rates (the series is based on a quarterly People’s Bank of China survey of depositors). Since the end of the first half, there has been a notable shift among consumers in favor of saving over investing. The inclination among households to consume, which dipped at the end of the first quarter, has since recovered but remains relatively flat.
asia.nikkei.com

The question mark hanging over China’s 400 million-strong middle class
Burdened by rising costs, debt and worries about the future, will they vanish or thrive?
www.scmp.com

Hong Kong and China shares drop as Trump Administration gets ‘even tougher on China’
Stocks listed in Hong Kong and China dropped on Monday, on worries the Trump Administration was stepping up its hardline approach to Beijing, which in turn sent markets lower across Asia.
www.scmp.com

Desperate Chinese middle class take big risks to move money, and themselves, overseas
Growing worries are pushing more wealthy mainlanders to seek property and long-stay visas overseas – but for some, it has turned into a nightmare
www.scmp.com

How much of a fall should the world’s financial markets brace themselves for?
If this ‘bloodbath’ stops short at a salutary correction – knocking maybe 10 to 20 per cent off equity valuations – it would be a mercy and a wonder For those given to concocting (not too off-the-wall) conspiracy theories, the present storm in equity and bond markets might be seen as a case of “the empire strikes back.” The empire here is China which, with a few well timed disposals (or rumours) of parts of its US Treasuries war chest, is able to send bond yields spiking and equities crashing. Why do that when China would be among those to suffer? Because a tumbling Wall Street could quickly take the wind out of the sails of the US economy and those of President Donald Trump, who has bragged repeatedly that the US is better able to withstand a trade war than is China. There is still time for him to back track if a Wall Street collapse is threatened. Signal sent!
www.scmp.com

Can China fix its runaway housing market?
‘Houses should be for living in, not for speculation,’ President Xi said one year ago. But he finds status quo is hard to change.
www.scmp.com

China’s smartphone shipment plunges by nearly 11.5% in September
China’s smartphone shipment plummeted 11.5% YoY to 36.75 million handsets in September this year, data from China Academy of Information and Communications Technology shows. The dip continues a downward trend in the industry, which recorded a 17% drop in the first nine months of the year.

China’s smartphone shipment plunges by nearly 11.5% in September

United States or China as world leader? Asians overwhelmingly prefer the US, Pew study finds
Poll shows that Beijing’s record on human rights affects opinions about Chinese leadership, with Asians in Japan, South Korea, the Philippines, Indonesia and Australia having a dimmer view of the country
www.scmp.com

EU’s rival infrastructure fund could lead to better deals for Asia but China’s belt and road still leads the way
The European Union is set to join the US, Japan and Asean in competing with China’s Belt and Road Initiative
www.scmp.com

Japan firms try out China’s ‘Belt and Road’ cargo transport to Europe
Japanese and Chinese logistics firms are paving the way for an alternative route to ship cargo from Japan to Europe faster than by sea by exploiting China’s “Belt and Road” initiative designed to improve regional cooperation and connectivity.
www.japantimes.co.jp/news/2018/10/15/business/japan-firms-try-chinas-belt-road-cargo-transport-europe/#.W8R8f2gzZaQ

China says it will resolve debt issues of ‘belt and road’ projects, respects Malaysia decision to pull out
Debt sustainability is ‘a complicated issue, but we will take care of it’, vice-finance minister says
www.scmp.com

IMF sees the upside of China’s massive Belt and Road project
As part of the project China has dispersed tens of billions of dollars in loans, often to highly indebted countries
www.businesslive.co.za/bd/world/asia/2018-10-15-imf-sees-the-upside-of-chinas-massive-belt-and-road-project/

‘Sinicisation’ of Muslims in Xinjiang must go on, says Chinese official
Official warns of ‘infiltration of religious extremism’ amid crackdown on region’s large Muslim population
www.theguardian.com

The Top High-end Travel Apps Used by Affluent Chinese Travelers
More Chinese are traveling, and the more affluent travelers are taking it a step further by booking trips on mobile more frequently. This class of Chinese traveler is not only changing how destinations welcome tourists, but also how domestic travel apps cater to the most profitable demographic.

The Top High-end Travel Apps Used by Affluent Chinese Travelers

China’s removal of Meng Hongwei completes reshaping of public security ministry
The ex-president of Interpol was the final member of a powerful team in place when Xi Jinping took office in 2013
www.scmp.com

Is America Over-Reacting to the Threat of Chinese Influence?
American civil and political discourse has seen a growing number of reports about worrying Chinese governmental influence in the United States. Most recently, U.S. Vice President Mike Pence decried the “malign influence” of China in the United States, via students, politicians, and corporations acting at Beijing’s direction, and sometimes with Beijing’s money. And the White House reportedly considered a blanket denial of visas for Chinese students in America, who currently number over 350,000
www.chinafile.com

 

 

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Alain Gillard
Information Officer
Awex
Service Asie Pacifique
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a.gillard@awex.be
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