China Press Review – September 11, 2019

Press review

Trump wants US businesses to cut all ties with China: why that’s a lose-lose plan
The loss of the huge Chinese market and supply chains would hit US firms and consumers hard. China’s strengths and a tech boost would see it bounce back, while service-oriented America would face long-term suffering and sustained decline

Trump’s China tariffs find scant support in the market where they do business: AmCham survey
Some 75 per cent of US firms are opposed to the use of tariffs to resolve the trade dispute, compared with 69 per cent last year, according to a survey by the American Chamber of Commerce in Shanghai

Behind the headlines, China’s large current account surpluses are becoming a thing of the past
The transformation of China’s balance of payments position will have a significant impact on its economy It’s necessary to understand how its large surpluses came to be, and how, as Beijing seeks to rely less on investment and more on consumption for growth, much smaller surpluses – or even a persistent deficit – may become the norm

China tipped to start rate cutting ‘road map’ as early as next week, as economic slowdown deepens
Beijing wants businesses and consumers spend more and save less, with consumption growth remaining anaemic in the world’s second largest economy Analysts expect China to gradually slash lending rates to join global monetary easing led by Federal Reserve and European Central Bank

China bank loans up in August, more stimulus expected
China’s banks extended more new yuan loans in August as policymakers ratcheted up support for the slowing economy, and further policy easing is expected in the coming weeks as the Sino-U.S. trade war takes a bigger toll on the economy.

China grants tariff exemptions to 16 types of US goods ahead of trade war talks
Waiver will take effect next week and remain in place for one year, Customs Tariff Commission says Latest round of negotiations set to take place in Washington next month

In China, Germany’s products rock
Whether it is cars, machinery or even cosmetics, products bearing the black-red-gold flag still stand for quality, durability and reliability One challenge on the horizon for German and other foreign businesses will be China’s new company social credit system, which will come into force next year and will monitor businesses’ behavior and adjust their score according to that.

Trade war, economic uncertainty are making Asian investors more cautious, says RBC Wealth Management survey
Of Asian investors surveyed, 80 per cent were ‘far more attentive’ to their portfolios because of the economic cycle Tariffs, trade policy a concern for more than a third of Asian investors

US tech chief: China is threatening America’s lead in the global artificial intelligence race
US Chief Technology Officer Michael Kratsios calls on government and private sector to collaborate to keep US on top in the competition for AI dominance Says US remains in front in the worldwide AI competition, but China is narrowing the gap quickly

Baidu invests US$200 million in Chinese AI firm Neusoft to develop smart city solutions
The investment extends an existing partnership between the two companies to develop smart city infrastructure

Inside Huawei’s secret plan to beat American trade war sanctions
Mobilizing Asian suppliers for a production surge, Chinese company leads a split from US technology

UK says to decide on Huawei soon but China must play by rules
Britain will make a decision soon about whether to allow Huawei equipment to be used in its 5G networks but China must play by the rules if it gets access to Western markets, Defence Secretary Ben Wallace said.

Huawei to ship Mate 30 without Google apps, readying workarounds: executive
Huawei phones advertised in Naples, Italy in July 2019 (Image credit: TechNode/David Cohen)
A Huawei executive has confirmed that its next flagship smartphone, the Mate 30, will deliver without Google services or apps pre-installed, and that alternatives were in active development. The absence of Google services and apps will have little effect on the new handset’s performance in Huawei’s home market as they are blocked in China, but experts have said that it may significantly lower its appeal in overseas markets.

Huawei to ship Mate 30 without Google apps, readying workarounds: executive

Amazon sellers feeling the heat of US-China trade war, contrary to Donald Trump’s claims, survey shows
Jungle Scout survey shows 72 per cent of sellers have seen their cost per unit increase by some 17 per cent since the beginning of the trade war last year First round of new US tariffs took effect on about US$110 billion of Chinese imports on September 1, with more to follow in October and December

Alibaba marks 20-year milestone with pledge to push forward global e-commerce expansion
About 60,000 Alibaba staff and guests gathered to celebrate the e-commerce giant’s 20th anniversary in its home city of Hangzhou

China’s reloads deal-making with investment head appointment
China’s second-largest e-commerce firm Inc has appointed Jason Hu, a former managing director at Chinese private equity firm CDH Investments, as head of strategic investment to oversee deals both at home and overseas.

The Hottest Retail Interior in China is not in Beijing or Shanghai
As brands expand their retail store networks beyond China’s top-tier metropolises into the traditionally less fashionable but fast-growing provincial cities, making a splash in these new markets is a top priority. E-commerce is just as popular in the second- and third-tier cities as in Beijing and Shanghai, and consumers won’t leave home based on a brand’s reputation or name-recognition alone. Brands need to create compelling experiences to entice consumers to visit their stores, and that’s why we’re seeing some of China’s most impressive retail interiors today are in cities like Chongqing, Suzhou, and Zhengzhou

The Hottest Retail Interior in China is not in Beijing or Shanghai

The Store that Cracked the Code to Attracting Independent Chinese Travelers
Ekseption has looked to make a bigger name for itself internationally in recent years, particularly via e-commerce

The Store that Cracked the Code to Attracting Independent Chinese Travelers

China should continue using food imports as chip in US trade talks, says former leading agriculture negotiator
Cheng Guoqiang, a professor at Tongji University in Shanghai, says China should avoid over reliance on imports and rely mainly on domestic supplies to meet demand American President Donald Trump has repeatedly charged that China has not lived up to its promises to buy large quantities of US farm products

China Turns to Argentine Soy Meal in Fresh Blow to U.S. Farmers
China is opening the door to soybean meal shipments from Argentina, the world’s biggest exporter of the animal feed, as Beijing looks to pivot away from U.S. agricultural products amid a trade war with Washington. The Asian giant is finally allowing soy meal imports from the South American nation after two decades of talks, Argentina’s Agriculture Ministry said in an emailed statement Tuesday.

Byton delays production but says $500 million funding to come
Electric vehicle maker Byton has pushed back the launch date of its first commercial model to mid-2020 as it re-calibrates following the departure of one of its founders and a major cash crunch amid an auto market slowdown. Byton’s management and financial woes are emblematic of broader issues in China’s EV industry, which features a number of companies in turmoil. The Chinese-backed EV maker’s troubles were aired to the public when co-founder and then-chairman Carsten Breitfeld surprised many with his appearance at the Auto Shanghai show in April as a representative of rival carmaker, Iconiq. Byton’s finances were upended after assuming debt totaling RMB 850 million ($120 million) from Huali, a subsidiary of Chinese OEM FAW, to secure its production license late last year. The company still owes RMB 310 million as of mid-July, according to an announcement released by FAW’s listed subsidiary Xiali.

Byton delays production but says $500 million funding to come

China out in force at Frankfurt car show, led by battery builders
Chinese suppliers and manufacturers have stepped up their presence at the Frankfurt auto show, capitalising on a strong position in electric technologies forced on European carmakers by regulators seeking to curb pollution.

Hang Seng Index rises to highest level in six weeks as trade war angst eases
China customs agency exempts tariff on 16 products from first round of additional tariffs on US imports In China, consumer stables drop as trade war fears lessen

Hong Kong stock exchange operator makes bid to buy London Stock Exchange for US$36.6 billion
Would be second overseas acquisition by HKEX after it took over London Metal Exchange in 2012 Hong Kong Exchanges and Clearing offered to buy the London Stock Exchange for US$36.6 billion, the operator of Asia’s third largest market announced on Wednesday

China ‘working proactively’ towards launching live pig financial futures contracts as pork prices soar
The Dalian Commodity Exchange is moving closer to launching the type of financial contract in the world’s largest live pig industry Pork prices in August increased 46.7 per cent from a year earlier, while live pig prices doubled in September from a year earlier

Will pork imports from Denmark and Brazil save China’s bacon after African swine fever hits supplies?
Authorities look for new sources of meat after the disease ravages domestic herds and pushes prices to a record level

Deepfakes are not a threat to facial payments, for now
A new Chinese app allowing users to implant their faces into scenes from well-known movies and TV shows landed at the end of last month. Zao quickly stormed to the top of China’s free app download charts for both Android and iPhone. However, the app’s success was is currently working on an artificial intelligence tool able to detect whether an image or video has been doctored by deepfake or morphing tech. In a world where face-scanning applications are increasingly being used, there should be “defense mechanisms” that can be used, for example, to tell software-generated videos from real ones. Such technology could also be used to find out if a person standing in front of a facial recognition camera is in disguise, said Dong. In terms of doubts over the use of facial recognition in financial services, Dong said the technology is already quite mature and has seen widespread use in China. However, she attributes the lack of adoption in the financial sector to the degree of risk involved. Institutions are unwilling to bear these risks or deem them unnecessary. “This is not so much a technology problem, on a broader application level, the market is not yet mature,” she said, adding that for now, the regulatory framework remains murky.

Deepfakes are not a threat to facial payments, for now

How Your Company Can Benefit from China’s Belt and Road Initiative, Part 1
Many of these BRI countries will need increased economic activities to pay back their Chinese debt and will welcome U.S. and foreign companies that want to use their new infrastructure in both import and export ventures.

How Your Company Can Benefit from China’s Belt and Road Initiative, Part 1

‘It all started from Hong Kong’: Tycoons Dhanin Chearavanont and Mochtar Riady on early success and the belt and road plan’s future
The Thai and Indonesian business titans discuss how the city played an essential role on their way to the top – and will do so today for investments related to Xi Jinping’s ambitious global trade strategy

Dragon vs elephant: How the Indian economy is on track to beat China
Though there are several similarities between India and China, India will evolve in its own unique manner.

Hong Kong tycoon Li Ka-shing’s appeal for leniency for protesters gets cool reception from Chinese media
If billionaire wants to help young people he should build more low-cost housing in the city, official says Hong Kong Chief Executive Carrie Lam Cheng Yuet-ngor said earlier that city’s government ‘will not endorse or condone any act that goes against the rule of law’

China’s internet regulator orders online AI algorithms to promote only ‘mainstream values’
Systems should direct users to approved material on subjects like Xi Jinping Thought, or which showcase the country’s economic and social development, Cyberspace Administration of China says they should not recommend content that undermines national security, or is sexually suggestive, promotes extravagant lifestyles, or hypes celebrity gossip and scandals

Alain Gillard
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