China Press Review – September 11, 2017

Press review

China producer inflation jumps to 4-month high
China’s producer price inflation accelerated more than expected to a four-month high in August, fuelled by strong gains in raw materials prices and pointing to strong, sustained growth for both factory profits and the economy.

5 Charts Show Chinese Inflation Trending Higher

Rising producer price inflation points to renewed strength in China’s economy
Latest figures point to strong and sustained growth as industrial companies report biggest profits in years

Is China’s economy on the brink of a new boom? Digging for answers in industrial numbers
A huge spike in sales of heavy construction machinery supports the idea that the good times are returning

Is the Yuan failing?
In late 2016, something happened that a lot of people thought would be a giant step in the process of the internationalisation of the renminbi, China’s currency

Is the Yuan failing?

Yuan weakens against US dollar as central bank move takes wind out of currency’s sails
The yuan’s recent rally against the US dollar ended on Monday, after the People’s Bank of China unwound a two-year policy aimed at curbing the Chinese currency’s depreciation, which had guided its value to a 21-month high against the greenback.

Will the Chinese market become more open to small foreign businesses?
China recently announced that it will further lower the market access thresholds in areas like banking and the securities industry to attract more foreign investment. The aim is to promote the steady growth of foreign investment in China’s pursuit of a better business environment

Is China’s EU shopping spree going out of hand?
European Union countries must work together to prevent state-backed Chinese firms taking control of strategic sectors within the region, the chief executive officer of French oil company Total said on Friday.

China worries about yuan’s rise
Rising fear: China’s commerce ministry officials are said to have expressed concerns over the yuan’s
Central bank fears rapid ascent can affect exporters and economy

China targets a $3 trillion shadow banking industry
As a flood of unregulated cash swirls through the Chinese economy, Beijing has been taking aim at the trust companies whose unrestrained lending practices are worrying regulators.
Cryptocurrency dealers and online lenders feel heat in China

Bitcoin plunges on reported moves to close digital currency exchanges

PRC curb on illegal mining boosting rare earth metals
PRICES ‘EXPLODING’:The price of praseodymium-neodymium oxide has almost doubled this year, while that of neodymium has increased by 81 percent so far

China sends one of the West’s most critical materials soaring
The price of one of the most critical materials for the Western world’s economy and defenses is spiking faster than any major commodity

Stumbling bloc: Influence of the BRICS isn’t building, it’s crumbling

Summit in China reaffirmed the grouping’s global ambitions but a combination of dimming economic fortunes and a lack of shared ideology compromise its vision of challenging Western dominance

How the BRIC economies could surpass the West
While some argue that the BRICS are fading away, the structural potential of large emerging economies remains impressive. By the early 2030s, their combined economic power will surpass that of major advanced nations, despite growth deceleration.

How the BRIC economies could surpass the West

India, China to set up joint working groups to bridge trade deficit
With India’s trade deficit with China in danger of steadily expanding, newly minted Commerce and Industries minister Suresh Prabhu said on Saturday that the two countries have agreed to set up industry specific working groups which will help increasing Indian exports.

Digital dividend to boost economy
Over the past four decades, China has gone from being a low-wage supplier to one of the three most important links in the global value chain, alongside the United States and Germany. Despite growing concerns about China’s corporate debt and its ability to escape the middle-income trap, rapid digitization will allow the Chinese economy to continue moving up the value chain.

The Future of China’s Economy is Digital
Winston Wenyan Ma, a managing director of China Investment Corp. and author of a book on China’s mobile economy, says the country’s fast-growing tech sector will make up for slowing growth in other areas

China’s bitcoin exchanges await clarification, markets subdued for now
China’s largest bitcoin exchanges are awaiting clarification from the government following more media reports that Beijing is planning to ban trading of virtual currencies on domestic exchanges, but markets were largely subdued on Monday.

How China and Asia can lead the fight against global warming along the belt and road
President Donald Trump put the final stamp in July on US withdrawal from the 2015 Paris accord, in a major environmental setback for the world. The agreement, with 196 nations signing up, had raised hopes that catastrophic climate change might be avoided through coordinated political action.

How China and Asia can lead the fight against global warming along the belt and road

China’s first commercial solar thermal power station begins test run
China’s first commercial solar thermal power station has begun a test run and is scheduled to send power to the grid by the end of this year, said the operator on Monday

Britain, China Working on Next Generation Renewable Energy
The projects—which have been funded as part of the Joint UK-China Offshore Renewable Energy program—would also look to maximize the environmental and socioeconomic benefits of ORE systems. In addition, NERC said the projects would, among other things, demonstrate the potential of ORE technologies to provide island and coastal communities with a stable power supply. The projects are supported with nearly $5.2 million in funding from the Engineering & Physical Sciences Research Council and NERC. The National Natural Science Foundation of China, or NSFC, is also providing support.

Why Beijing’s plan to stop producing petrol and diesel cars could be a game-changer for the industry?
Authorities study timetable to put brakes on fossil-fuel vehicles in race to cut emissions and pollution

China’s high-speed railway changes civil aviation industry
China’s high-speed railway has changed the scale of civil aviation industry, a civil aviation professional said on Thursday.

New generation of chocoholics may turn China into a major chocolate market
Not so long ago, chocolate in mainland China was generally seen as an exotic delicacy, something people only bought as a luxury gift or an extravagant treat.

Why Chinese Consumers’ Growing Individualism Is a Challenge
Gen Z is the first to “own their own discourse right since they were born,” Zhao said. They naturally seek more independence and individuality and therefore respond well to brands that allow for individualized experiences.

Why Chinese Consumers’ Growing Individualism Is a Challenge

Does China Have Too Many Trademarks?
Over the past 10-15 years, China has encouraged trademark applications in both explicit and implicit ways. In an interview last year with WIPO, Zhang Rao, the Commissioner of the State Administration for Industry and Commerce (SAIC), which oversees the CTMO, identified five factors driving the large numbers of trademark applications:

Does China Have Too Many Trademarks?

Luxury Brand Hierarchy Explained by Chinese Classroom Culture
Classroom culture has deep roots in almost everyone’s childhood and teenage life in China, where students in elementary, middle, and high school are typically in class for more than eight hours a day. Luxury items, on the other hand, have only been gaining popularity in China in the last decade. With the back-to-school season upon us, a Chinese fashion blogger called Jiaobanbang has compiled a chart that equates different luxury brands with students’ social hierarchy in the classroom to better equip Chinese consumers with the knowledge about brand hierarchy in the luxury realm in a way they can relate to. Here, in brief, is that chart:

Luxury Brand Hierarchy Explained by Chinese Classroom Culture

The power of China’s chequebook diplomacy
There are many ways a government can assert its interests on the international stage. Some use military muscle. Others use subversion or bluster. In Asia, Africa, Latin America, and even in Europe, China is using investment to get what it wants from countries and governments in need.

China Will Collapse From Economic Wasting Disease Long Before We Are Caught In ‘Thucydides’s Trap’
Trade between China and the US is still massive, although not as important as it was before 2008, and major US corporations (e.g., AAPL; WMT) have based their huge supply chains in China. Thus, there is considerable interdependence between China and the US that was simply not present in the Athens/Sparta rivalry, nor really in any of the previous pairs of combatants mentioned by Allison in his analysis of the Thucidides’s Trap metaphor.

China’s ever-tighter web controls jolt companies, scientists
Frank Chen’s e-commerce business has nothing to do with politics but he worries it might be sunk by the Communist Party’s latest effort to control what the Chinese public sees online.

China building world’s biggest quantum research facility
Centre could boost military’s code-breaking ability and navigation of stealth submarines

China central bank issues guidelines on North Korea sanctions
The People’s Bank of China said Chinese financial agencies and some non-financial institutions were required to record the people and organisations in their systems and conduct retrospective investigation once they receive the ruling from the country’s foreign ministry.

China Fakes Inundate UK, OECD Says
Hong Kong, mainland are two biggest sources of UK counterfeits

Younger generations in China are now developing a stronger copyright consciousness movie.
“I believe that with the growth of the younger generation, especially ACG fans, the copyright awareness of Chinese people will become stronger and stronger,” Zhang said. “And with our strong support for animation, manga and games, the ACG and cultural industries in China and foreign countries, not only in Japan, will boost together in the future.”

Chinese tea growers threaten to sue campaigner over claim highly prized leaves can cause cancer

Legal threat issued after blogger best known by alias Fang Zhouzi warns that pu’er can expose drinkers to dangerous chemical

First the diploma, then the date: how China’s educated elites find love
More and more young people in China are prioritising an elite academic background over salary and looks when looking for a partner

Alain Gillard
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Service Asie Pacifique
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