China Press Review – September 11, 2018

Press review

How Should China Respond to a Changing U.S.?
Stand firm. Stay cool. And keep talking.

Donald Trump doesn’t fully understand how global trade works, former US negotiators say amid trade war tariff action
Ford pushes back after the president’s tweet about its decision not to import a new model to the US

Trade War Update: China Trade Unfazed By Trump Tariffs
So far, China trade to the U.S. knows no bounds. In fact, the U.S. is faced with a record deficit with the Chinese. Companies, meanwhile, are shipping back and forth like crazy to avoid tariff lock-in dates, and the U.S. economy is so hot that even the #resistance at The New York Times admitted it this week that there were at least three reasons for optimism.

China’s factory base rolls out red carpet for big foreign investors as trade war begins to bite
As the trade war hits Guangdong’s export businesses hard, the province seeks foreign investment to stabilise the local economy

Why ‘Made in China 2025’ triggered the wrath of President Trump
‘Made in China’ is often associated with cheap and poor quality goods, but Beijing has ambitious plans to transform itself into an innovative hi-tech powerhouse by 2025

‘Made in China 2025’: is Beijing’s plan for hi-tech dominance as big a threat as the West thinks it is?
The ‘Made in China 2025’ plan aims to break China’s reliance on foreign technology and pull its hi-tech industries up to Western levels. But it has become a lightning rod for Washington’s ire in its trade war with Beijing. This article – the first in a series on the plan – explains how it became the centre of so much attention

A Long Dollar Story: China’s Short Profits, Prices, And Producers
For the first half of the Great “Recession”, China and the rest of the EM world seemed immune. It was American subprime mortgages that we were told was causing all the problems, and if European banks had somehow gotten themselves entangled in the rotten real estate mess, so much the better for where growth was invulnerable.

‘Robots are the main threat to jobs’ – why this long-shot bid to become the first Asian-American president is raging against the machine
While the odds are against him, Andrew Yang says entering the race for the White House will allow him to highlight issues such as the threat to jobs from robots and radical plans for a universal basic income

US Assembled iPhone May See Prices Up By 20%
US President Donald Trump’s call to migrate Apple’s assembly line back to the States will impact prices of iPhones, with likely increase of up to 20%, according to Bank of America Merrill Lynch.

Hong Kong stocks slump to 14-month low as US-China trade war fears continue to rattle investors
Apple-related stocks fell further after Donald Trump’s tweet urging the California-based iPhone maker to manufacture more products at home

China Inc. Is Hurting for a Tax Cut
While employers creak under the weight of social levies, Beijing is tightening the screws.

China’s Gig Economy is Driving Close to the Edge
The growing pervasiveness of the gig economy has raised serious and pressing concerns within China, as in other countries, about workers’ access to social insurance, compensation, pensions, and health care—all of which are generally based on formal labor contracts. Although the Chinese welfare system is theoretically comprehensive, it’s also highly inflexible. Workers who take posts with state-owned companies do well; those who change jobs or work in less formal sectors have a hard time accessing benefits, not least because of the country’s unpopular and outdated residence permit system that ties benefits to particular locations.
China’s Gig Economy is Driving Close to the Edge

Japan–EU agreement provides ballast amid the rising tides of protectionism
The Japan–European Union Economic Partnership Agreement (EPA) was formally signed on 17 July 2018 after an extended period of negotiation that began in April 2013. Both sides are now trying to ratify and validate the agreement before March 2019 to avoid any possible confusion that could be caused by Brexit and elections to the European Parliament. Trade wars are harmful and anachronistic. The international division of labour is qualitatively changing and newly developed economies such as China are substantial in size. The world must aggressively utilise mega-FTAs to catch up with the ongoing transformations in global economic activity.

Japan–EU agreement provides ballast amid the rising tides of protectionism

Xi-Putin summit in Vladivostok highlights common front against US
China plays prominent role in both Eastern Economic Forum and Russian war games

Entente is what drives Sino-Russian ties
For Russian President Vladimir Putin, bringing together in Russia’s Far East the leaders of China, Japan, the Republic of Korea, and Mongolia is certainly a major diplomatic success. And that President Xi Jinping is also taking part — for the first time — in the annual event indicates the growing togetherness of Beijing and Moscow on the regional and global platforms. As major-power competition has re-emerged, and transformed into rivalry, even confrontation, Russia and China have been discovering more common ground.

US tensions and trade expected to top agenda when Xi Jinping and Vladimir Putin meet
But the leaders will have to balance talks on economic cooperation with strategic differences over Central Asia and defence, analysts say

Russia and China are looking at launching joint projects worth more than $100 billion
Chinese President Xi Jinping and Russian President Vladimir Putin in 2017.
A group composed of Russian and Chinese businesses is considering 73 joint investment projects cumulatively worth more than $100 billion, according to a Tuesday statement.

China’s belt and road project can’t cover Asia’s infrastructure needs by itself, never mind the world’s
Anthony Rowley says while China’s critics fear possible debt traps, they miss the point that only Beijing is taking serious steps to meet infrastructure needs – and even that’s not enough

Report: Chinese building projects narrowing economic gaps
Chinese-financed railways and other projects in Africa and Asia are helping to reduce economic inequality between regions in the countries where they are built, a group of multinational researchers said Tuesday.

Romania hopes Constanta port to become important hub on the Belt and Road
Romania welcomed the countries along the Belt and Road to build the Asia-Europe rail and maritime transport route, making the port of Constanta an important hub on the new Silk Road, Ionel Minea, secretary of state for the Ministry of Transport said.

Northeast Asian countries play active role in Belt and Road Initiative
As one of the fastest-growing areas around the world with huge potential of economic development, the regions in northeast Asia enjoys tremendous opportunities of carrying out regional cooperation among the five countries – China, Russia, Mongolia, the Republic of Korea (ROK), Japan and the Democratic People’s Republic of Korea (DPRK).

Latin America’s shift to Beijing? Washington only has itself to blame, shrug region’s diplomats
‘You left some space and the other guy moved in. The region will work first with the people who bring the money’

China’s belt and road projects ‘narrow economic inequalities within countries’
Chinese development finance corresponds to rises in subnational GDP, suggests report by US researchers

China, Pakistan can resolve investment problems, but ‘belt and road’ concerns should not be ignored, experts say
Islamabad’s new leaders tell China’s visiting foreign minister they want to review US$62 billion China-Pakistan Economic Corridor

China Rejects Report On Pakistan Renegotiating Terms On Economic Corridor
“We have noted the relevant report, also noted that a relevant Pakistani official made a clarification on his remarks. On September 10, Pakistani Commerce Ministry issued a statement that remarks cited by Financial Times were out of context and distorted its original meaning.

podcast audio : Bonus: One Belt, One Road, Part I
As a special bonus, we’re bringing Benchmark listeners the first peek at a four-part series on China’s Belt and Road Initiative. President Xi Jinping calls it the project of the century: a massive infrastructure spending program that hopes to enhance trade and connectivity throughout Eurasia. Through a networks of projects that span the transportation, finance, telecom and power industries, the economic corridors and maritime roads that span Eurasia could fundamentally change the dynamics of global business. In the first of four episodes, we find out what Belt and Road is, and why it’s been described as everything from “an exercise in empire building” to “a new world order.”

Alibaba signs US$2 billion Russia JV with Kremlin-backed fund and billionaire Usmanov’s
Alibaba Group Holding Ltd. is setting up a US$2 billion joint venture with a Kremlin-backed fund and billionaire Alisher Usmanov’s Group Ltd. to grow its e-commerce business in Russia.

Alibaba denies the rumor that it has lent RMB 60 million to Ofo
Rumors started Tuesday morning that China’s tech giant Alibaba has lent bike sharing company ofo RMB 60 million to help them pull through a cash crunch. Later at noon, local media reported both Alibaba and ofo denied the rumor.

Alibaba denies the rumor that it has lent RMB 60 million to Ofo

How Jack Ma Became the Role Model for China’s Startup Generation
His vision changed China. As Ma makes plans to leave Alibaba Group Holding Ltd., his legacy will be an enduring one. He did far more than just create and build an e-commerce juggernaut into the most valuable company in Asia, impressive as that may be.

‘Would rather die on the beach than in my office’: how Jack Ma sees his retirement, in his own words
Ma famously said last year that his ‘happiest moment in life was making just 91 yuan (US$13.26) per month as a poor schoolteacher’

Alibaba’s Fashion Ambitions—and Obstacles—Showcased in New York
The goal of Tmall China Day was to promote Chinese fashion talents on an international stage—but Alibaba also sought to demonstrate its considerable clout in the China market to Western luxury brands. During a press conference on Sunday, Jessica Liu, President of Tmall Fashion, went to great lengths to explain how Alibaba uses technology and data to assist foreign brands with operations and sales in the lucrative Chinese market— “even if you don’t have a China team yet,” Liu said.

Alibaba’s Fashion Ambitions—and Obstacles—Showcased in New York

It’s Official: China’s Luxury Market is Exploding, Fueled by Tesla, Apple
China’s luxury Consumer Price Index (CPI), which tracks the prices of luxury goods marketed to the country’s 1.47 million high net worth individuals, saw a 4.1 percent jump during the June 2017 to June 2018 period compared to the previous year period’s 3.6 percent rise. It caps an amazing 10-year run during which China’s luxury CPI jumped 82 percent.

It’s Official: China’s Luxury Market is Exploding, Fueled by Tesla, Apple

China Trademarks: Wine Labels in China
As usual, it comes down to the same issue in China: if you don’t register your name first, someone else will do it for you. The only reason not to register your wine brand as a trademark in China is if you never intend to sell wine there.

China Trademarks: Wine Labels in China

Warehouse operator GLP launches US$2 billion China logistics fund with Singapore’s GIC
GLP, Asia’s largest warehouse operator, has launched a US$2 billion China fund in partnership with Singapore sovereign wealth fund GIC as it continues to tap into the growing demand for warehousing fuelled by a boom in e-commerce and domestic consumption.

China ‘may let provinces set own winter pollution curbs’
Production cuts on heavy industry will remain this winter, but detailed cutting rates will be set by local authorities, source says

China auto sales drop again on trade war, economic gloom

Chinese auto sales dropped 3.8 percent in the month from a year earlier to 2.1 million vehicles, after a 4.0 percent fall in sales in July and an increase of 4.8 percent in June, the China Association of Automobile Manufacturers (CAAM) said.

China auto sales drop again on trade war, economic gloom

Tiny Pig Farms Complicating China’s Fight Against Deadly Virus
The race to contain the deadly pig virus spreading through China’s eastern provinces may be hampered by the proliferation of millions of small farms that house many of the country’s hogs.

Boeing ups forecast for China’s new plane purchases over 20 years
Chinese airlines will buy 7,690 new planes worth $1.2 trillion over the next two decades to keep pace with booming consumer and business demand for air travel, Boeing said on Tuesday, raising a previous forecast.

China’s Hailong 11000 Dives 5,630 Meters Under Sea, Sets Ocean Depth Record
China’s unmanned submersible Hailong 11000, also known as Sea Dragon 11000, has set a national record by descending 5,630 meters into the sea during a test dive in the northwestern Pacific Ocean, said Ministry of Natural Resources in a statement on Monday.

China’s Hailong 11000 Dives 5,630 Meters Under Sea, Sets Ocean Depth Record

My early years in a turbulent China: Lippo founder Mochtar Riady
Born in Dutch-controlled Java, I soon moved to my father’s home village in Fujian

China’s ‘cat economy’ set to drive pet spending surge
With spending on pets in the world’s second-largest economy expected to hit 21,46 billion € in 2018, social media reacts with disbelief

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