China Press Review – October 30, 2018

Press review

US poised to extend tariffs to all Chinese imports if Trump-Xi meeting fails, hitting another US$260 billion in products
The tariffs would be announced in December and go into effect around the Lunar New Year in February, sources say Donald Trump and Xi Jinping are set to meet on the sidelines of a Group of 20 summit in Buenos Aires in November

Trump talks ‘great deal’ with China to ease trade war tensions – for now
‘I think we’ll make a great deal with China, and it has to be great’ – Fox interview Stock markets respond with hopes for common ground in next month’s talks with Xi Jinping

EU should brace for U.S. standoff over China, ex-WTO chief warns
The European Union should prepare for its companies to be targeted by American sanctions in a worsening trade dispute between the United States and China, former World Trade Organisation (WTO) director general Pascal Lamy said on Tuesday. As they weigh up a response to renewed U.S. sanctions against Iran, which have forced an exodus of European companies, EU governments should consider the prospect of similar extraterritorial measures penalising China trade, Lamy told an international investment conference in Paris. “If the U.S. were to step further in not only hitting China with trade measures but with sanctions, if they were to deal with China the way they did with Iran, then we would all have a big problem,” he said.

Chinese geopolitics: continuities, inflections, uncertainties
For Beijing, the era in which the European powers shaped the world was only a parenthesis before the story returns to its “normal”, Sinocentric course. China has become the second world power. Chinese geopolitics, however, has entered a phase of adaptation to an uncertain world.

Is China Losing the Opportunity to Lead?
Domestic developments hinder the emergence of a Chinese Dream with appeal overseas.

China ‘can look to Japan for lessons in its trade war’ with the United States
Japanese official suggests Beijing talk to Washington in US terms Official also warns against repeating Tokyo’s mistakes in liberalising the economy

Editorial: China-Japan Relations Must Remain on Track
Whether relations are cold or warm, China and Japan are permanent neighbors. China is already Japan’s largest trading partner, with millions of personnel exchanges every year, showing that though there have been difficult times, the exchanges between China and Japan are as unstoppable as the waves of the East China Sea. For the long term, treating each other as equals, with mutual respect and tolerance is the right way to build a solid foundation for bilateral relations, reduce misjudgments, build consensuses, share gains, and allow the two nations to enter a new phase of mutual learning and encouragement.

China reverses 25-year ban on trade and use of rhino horns and tiger bones, alarming conservationists
Beijing says scientific and medical uses for such materials are now permitted World Wildlife Fund condemns move, saying it will ‘have devastating consequences globally’

China’s yuan in spotlight amid key economic data releases this week
Market watching to see if PBOC defends key level of 7 yuan to the US dollar If PMI data on Wednesday is weak, market could test PBOC’s resolve

The Chinese yuan hits its weakest level since the financial crisis as trade tensions ramp up
The People’s Bank of China set the dollar’s reference rate, a range for domestic trading that officials set daily, at 6.9574 yuan per US dollar. The currency subsequently fell to as low as 6.9750 against the greenback, its weakest since May 2008.

Despite the trade war and stock market gloom, a repeat of the 2008 financial crisis is not on the cards yet
David Brown says while markets appear to be blowing off steam, global growth has held steady, the US economy is doing well and China is still recording a 6.5 per cent expansion Although the US Federal Reserve has raised interest rates, other central banks are alert to changing conditions that might call for more support

Is China Cooling?
The Shanghai Composite Index has tumbled by over 9% in the past thirty days, and for the year, the Index has shed 25%. This weakness in the equity markets reflects an anticipation that China’s economy might be cooling down.

China GDP overview for Q3 2018
The gross domestic product (GDP) of China was 65,089.9 billion yuan (US$9,368.51 bn) in the first three quarters of 2018, a year-on-year increase of 6.7% at comparable prices, according to the preliminary estimates of National Bureau of Statistics of China.

China boosting loans to small firms as economy slows
China’s banking and insurance watchdog said on Tuesday that it will soon release new rules to boost financing to the private sector including small companies, and urged banks to keep lending to businesses facing temporary difficulties, Reuters reports.

China’s troubled private listed firms offered billion-dollar bailouts
Authorities in Guangdong, Zhejiang pledge more than US$2 billion to save firms that put up stock as collateral for bank loans from forced share sales

How will the US-China trade war affect the UK?
As the rhetoric between the United States of America and China becomes ever more hostile, the ongoing trade war between the two global superpowers is intensifying.

How will the US-China trade war affect the UK?

Trade war is not all gloom and doom for China’s property market as logistics firm boost warehouse leasing
Domestic e-commerce and third-party logistics firms have accounted for nearly 80 per cent of warehouse leasing activity in the first half of 2017

China’s securities regulator again talks up stocks in world’s worst-performing market
China will raise the quality of listed companies, improve trading oversight and encourage value investment in the latest efforts by the securities regulator to talk up the world’s worst-performing stock market this year.

Alibaba launches China’s biggest robotic warehouse ahead of Singles Day
E-commerce giant Alibaba is preparing for the rush of the upcoming Singles Day, which falls on November 11, by opening what is said to be the country’s biggest robotic warehouse.

Alibaba launches China’s biggest robotic warehouse ahead of Singles Day

China retail market up 9.2% to US$462B in Sep 2018; online up 27%
In September 2018, the total retail sales of consumer goods reached 3,200.5 billion yuan (US$461.81 bn) in China, up by 9.2% year-on-year (nominal growth rate), according to National Bureau of Statistics of China. The retail sales of consumer goods of units above-designated size reached 1,276.2 billion yuan (US$184.15 bn), increased by 5.7%.

China’s New Billionaires Are Young, Fast Workers With an Appetite for Risk
The country is minting two new billionaires each week, and they differ markedly from their global peers.

China Slowdown? Don’t Count Out ‘The Bling Dynasty’ Yet, Says HSBC
Growing concerns about Chinese luxury consumption have led to a share sell-off of luxury brands by global investors since the beginning of the month. Yet Erwan Rambourg, Global Co-head of Consumer and Retail Research of HSBC, thinks the situation is “not so dire.” The luxury sector “won’t decline on as steep a slope as the market expects,” the veteran Asia prognosticator predicts.

China Slowdown? Don’t Count Out ‘The Bling Dynasty’ Yet, Says HSBC

Upending the Way We Think About Chinese Luxury Consumers
There are 5 distinct types of Chinese consumers, according to a new Euromonitor International
Jing Daily took a look at each of the Euromonitor Survey team’s five new personas. Will this new way of defining consumers will help luxury brands achieve the success they’re looking for in China?

Upending the Way We Think About Chinese Luxury Consumers

Beijing and Shanghai drop sharply in global attractive cities ranking

Would the Last Company Manufacturing in China Please Turn Off the Lights
The title is an exaggeration, of course. But with my law firm’s international lawyers fielding a steady stream of client requests for help with leaving China for Vietnam, Thailand, Malaysia, Cambodia, India, The Philippines, Indonesia, India and Turkey (mostly), it does sometimes feel as though within three years nobody will be making widgets in China anymore.

Would the Last Company Manufacturing in China Please Turn Off the Lights

US restricts Chinese chipmaker from buying American parts
The United States is restricting exports to a state-backed Chinese company that makes semiconductors, the latest escalation in Washington’s trade fight with Beijing. On Monday, the US Commerce Department said Fujian Jinhua Integrated Circuit Company would not be able to buy components from American companies without a special license.

China’s semiconductor catch-up efforts dealt blow by US sanction against mainland chip maker
Fujian Jinhua Integrated Circuit Co has been cut off from US hi-tech suppliers, putting in limbo its domestic production of memory chips

US lawmakers propose going after Chinese suppliers of fentanyl
Legislation would levy economic sanctions on any individual identified as taking part in the production or trafficking of the synthetic opioid Proposal follows enactment of a law that equips postal service to better screen for international shipments of fentanyl

Wingtech Technology: all you need to know about Chinese firm behind audacious US$3.6 billion takeover of Dutch chip maker Nexperia
Wingtech, which assembles smartphones for top Chinese Android brands like Xiaomi, aims to build up its expertise in chip design and production

China’s Sharp Eyes surveillance system puts the security focus on public shaming
Security becomes spectacle as surveillance system is rolled out in rural Chinese villages Proponents say cameras are beating crime; human rights groups claim they threaten civil liberties

China mulls 50 per cent cut in tax on car purchases to revive flagging market
Carmaker shares surge on possible policy change that would stimulate market amid escalating trade war China car sales set to drop this year for first time in two decades

China’s aviation industry has a steep climb to ‘Made in China 2025’ goals
This is the final instalment of a series on China’s plan to move its industries up the value chain to reduce reliance on foreign technology China wants its commercial aircraft to supply 10 per cent of the domestic market and its jetliners to account for up to 20 per cent of the global market by 2025

Why China is no closer to rivalling Boeing or Airbus
Half of the components used in the C919 jetliner are domestically produced, says Commercial Aircraft Corporation of China

Investors are zeroing in on a Chinese sector ‘entirely not affected by the trade war’
The country’s education sector is expected to grow to nearly 3 trillion yuan ($432 billion) in 2020 from 1.6 trillion yuan in 2015, Deloitte said in a 2016 report.

Japan steel industry group head worried about signs of slowing China economy
The head of the Japanese steel industry group said on Monday that he is worried about signs of a slowing Chinese economy. “The U.S.-China trade spat still has limited impact on Japanese steelmakers’ business, but we are concerned about signs of a weakening economy in China,”

Did China Really Create a New Trademark Office?
I have no doubt that some Chinese brands have had to deal with infringement overseas. I also have no doubt that the relative scale and dollar value of such infringement is miniscule as compared to the infringement of foreign brands in China. Moreover, when Chinese brands are ripped off overseas, they can pursue meaningful, robust remedies – at least in large markets like the U.S., Canada, Australia, and the EU. And who, exactly, is infringing Chinese trademarks overseas? My sense is that few Chinese brands have cachet overseas, except among the overseas Chinese community, which suggests that foreign IP infringement is mostly (if not wholly) driven by Chinese entities. I don’t know if this is actually true, but would love to see a study. If only there was a think tank that could address these issues…

Did China Really Create a New Trademark Office?

Xi Jinping looks to the northeast to make China great again
For 40 years, northeast China has frustrated the political leadership in Beijing. Once the heartland of an industrial, modern socialist China, the region has fallen behind the rest of the country on all measures of economic, social and environmental well-being.

Xi Jinping looks to the northeast to make China great again

China is crushing Europe’s electric car dreams
China has the advantage of being the world’s biggest market for electric vehicles, accounting for about half of global sales, and international carmakers are investing there in a big way. Building electric cars in China makes sense for companies because that’s where most customers are, and it enables them to avoid heavy tariffs on imported vehicles. It also puts their manufacturing plants closer to the supply chain for batteries, which account for about 40% of the value of electric cars. “In Europe there’s a lot of hassle and a lot of procedures to follow. It takes a long time,” Koolen said. The Chinese government has a “long-term vision” for the industry, while Europe does not, he added. China has put in place targets for electric vehicle production and offered incentives for buyers, which has helped the industry boom. Doing the same for electric batteries “could be a game-changer for the EU’s auto industry,” Montgomery said.

China new solar power capacity down 20 pct over Jan-Sept -regulator
China’s newly added solar power capacity fell nearly 20 percent year on year for the January to September period, official data showed on Tuesday, hit by government efforts to reduce its spiralling subsidy bill by slashing new project approvals.

Islamic banking key to financing China’s Belt and Road
Almost half of participating countries are Muslim-majority, says Dubai Islamic Bank chief

HK business group encourages more BRI investment
The Hong Kong Chamber of Commerce in China said it will encourage more Hong Kong companies to invest in Serbia, Romania, and other countries and regions involved in the Belt and Road Initiative. HKCCC said it will urge Hong Kong enterprises to invest in the of tourism, catering services, resorts, finance, clothing and e-commerce sectors in those Eastern European countries, as it sees a huge demand from the area.

Huawei poses security threat to Australia’s infrastructure, spy chief says
Australian Signals Directorate chief says using ‘high-risk vendor equipment’ could pose threat to water supply and electricity grid

US promises to continue South China Sea patrols to show opposition to ‘illegitimate’ claims
Senior commander says ‘freedom of navigation’ operations will continue despite recent near-collision with Chinese warship

Predicting Beijing’s thinking with the help of artificial intelligence and People’s Daily
US economist’s program foretells China’s policy moves by analysing party mouthpiece’s front pages Algorithm shows ‘surprise’ when Beijing shifts strategic priorities

‘Ban women drivers’: China’s sexism surfaces after bus plunges into river
Social media posts rail against female motorists when reports say the bus collided with a car driven by a woman Two bodies have been found, but search efforts continue for a vehicle believed to be carrying a dozen passengers

Deng Xiaoping’s son urges China to ‘know its place’ and not be ‘overbearing’
Deng Pufang says the economic and cultural changes introduced by his father 40 years ago are ‘irreversible’ Comments in unpublished speech to disabled group offer counterweight to current assertive foreign policy

6 observations on the state of China
I just returned from 10 days in China, mainly to give three lectures at universities there. I was hoping to feel the pulse about how people were reacting to the U.S.-China trade war, but interestingly I found people less preoccupied by this than I had expected, and few who said this had changed their view of the United States. (I had been concerned about getting cold shoulders, either because of what people were thinking themselves, or because it would be politically incorrect for them to associate with Americans, but none of this turned out to be true.)

China says airfield planned for Antarctica to be used by scientists and tourists
China has announced plans to build an airfield in Antarctica amid warnings that the communist nation is laying groundwork for a claim on the frozen continent’s vast natural resources.

Alain Gillard
Information Officer
Service Asie Pacifique
Place Sainctelette 2
1080 Bruxelles
Tél 02 421 85 09 – Fax 02 421 87 75
Copyright © 2018 awex, All rights reserved.