China Press Review – September 12, 2017

Press review

China confident of maintaining strong growth, Premier Li Keqiang tells heads of six global agencies
Nation’s economy was becoming healthier and more sustainable, Li tells IMF, World Bank, WTO chiefs

IMF warns of medium-term risk to Chinese economy
The International Monetary Fund (IMF) chief on Tuesday warned China of a medium-term risk to its economy owing to credit intensive growth and encouraged it to continue its structural reforms.

Nations should maintain free trade amid fragile world economy, China says
The world economy is showing positive signs but is still fragile and countries should rely on structural reforms, not quantitative easing, to support growth, Chinese Premier Li Keqiang said on Tuesday.

Yuan’s gains an opportunity for China’s central bank to push reform, not a matter of concern
Two recent changes to reserve requirements that make it easier to short yuan raise concerns authorities are worried about the currency’s rise, but analysts see confidence in current exchange rate

Juncker to announce measures to crack down on Chinese high-tech investment in EU
European Commission President Jean-Claude Juncker will finally reveal more details on long-awaited screening measures for Chinese takeovers of in sensitive industries when he speaks to the European Parliament on Wednesday.

China’s consumers haven’t been this confident in two decades
The consumer confidence index climbed to 114.6 in July. That’s up from last May, when it dipped below 100, the line separating optimism and pessimism.

China’s Currency Rebounds as Economic Optimism Returns
Though the country faces long-term problems, like soaring debt, the government’s recent moves have reassured investors that it can stave off crises.

China’s Credit Bubble Worries: Here’s Why It’s Time to Pop Them
Strong growth and social stability are the Chinese government’s top priorities–and they likely have the resources to achieve both.

China’s ICO Ban: Understandable, Reasonable and (Probably) Temporary
While drastic, the ban is understandable and reasonable. And, like the market reaction, probably temporary.

China’s ICO Ban: Understandable, Reasonable and (Probably) Temporary

Amazon in hiring binge in China to ramp up battle with Alibaba is hiring by the hundreds in China to fill jobs ranging from internet software engineers to designers for Alexa, positioning the company to recoup some of the market share it lost to Alibaba Group Holding in the world’s largest online shopping arena.

China Online B2C Retail Overview Q2 2017
The online retail market in China reached 1.59 trillion yuan (US$244.6 billion) in the second quarter of 2017 (up 31.2% over Q2 2016), with B2C sales accounting for 860.5 billion yuan (US$132.4 billion), an increase of 32% over the second quarter of 2016.

China Online B2C Retail Overview Q2 2017

China is banning traditional auto engines. Its aim: electric car domination
The Chinese government requires foreign automakers to enter into 50/50 joint ventures with Chinese companies to make and sell cars and trucks in the China market, which is huge. Last year, total vehicle sales in China reached 28 million, up 13.7% from the previous year, according to IHS Markit. In the U.S., 17.5 million vehicles were sold and growth remained nearly flat. Electric car sales in both countries were tiny: 359,000 in China compared with 159,000 in the U.S., with half of those in California

China is considering major investments in European finance as part of its global spending push
China wants European banks, insurers and fund managers to jump aboard its Belt and Road program Beijing is seeking financial and commercial expertise for large projects

China’s property market risks are rising, says data expert
Price trends in China’s housing market are unsustainable, according to Real Estate Foresight chief executive Robert Ciemniak who worries that excessive leverage among homeowners could lead to a crisis

Chengdu Retakes Top Spot as China’s Best-Performing Big City
Chengdu, the capital of southwest China’s Sichuan province, reclaimed the top spot in a Milken Institute ranking of the country’s best-performing big cities.

USCBC 2017 Congressional District Export Report

The US-China Business Council’s 2017 reports on state and congressional district exports are out and their findings are clear – though China’s economic growth rate is slowing, it remains an important market for US exports and continues to provide growing opportunities for American businesses, large and small. At the same time, US exports to China under perform what they could be, given the barriers that frustrate full market access to the world’s second largest economy.

USCBC 2017 Congressional District Export Report

China reduces foreign exchange risk reserve ratio to zero
China’s central bank has scrapped reserve requirements of 20 percent for financial institutions settling foreign exchange forward yuan positions, an official said Monday.

Is China leaping past us?
With little notice in Washington, Beijing has quietly become an innovation superpower. How should the U.S. respond?

China extends rural land reform trial to end-2018
China’s central government has approved a plan to extend a rural land reform pilot program by another year to the end of 2018, the Economic Information Daily reported on Tuesday citing sources at the Ministry of Land and Resources.

Rare earths price defying gravity
The price of rare earths may fluctuate at high levels in the next months, according to a research note from China Merchants Securities.

The younger business leaders taking risks along China’s ‘Belt and Road’
Speakers at Hong Kong Belt and Road forum espouse values of risk-taking second-generation bosses, as mainland government’s trade plan throws up opportunities

Alibaba and Tencent enter rare cooperation which expert says could reshape music industry
The cooperation between Alibaba and Tencent on music licensing may put an end to the era of free-to-stream music while reshaping the market, says analyst

India Will Soon Replace China As The Largest Population In The World
China has been the largest population of the world for decades and to control their rapid growth the country introduced ‘One Child Policy’. The main aim of the government was achieved by introducing this policy but now China’s population demographics are of quite a concern.

Hedge Funds Used to Love Shorting China. Now, Not So Much
That’s what some of the biggest names in the hedge fund industry were predicting for China after the nation’s stocks and currency tumbled in 2015

‘Missed symbolic opportunity’ in cancelled Trump-Kushner China trip
But other US envoys can step into the breach to prepare for US president’s visit later this year, analysts say

China faces rising threat of religious infiltration, extremism, says government official
President Xi Jinping has emphasised the need to guard against foreign infiltration in religion and to prevent the spread of “extremist” ideology, while showing tolerance towards traditional faiths that he sees as a salve to social ills.

Best Mandarin Chinese Learning Apps that Really Work!
Learning Chinese has never been easier. Here’s our list of our favorite apps.

Best Mandarin Chinese Learning Apps that Really Work!

pdf : OECD Sharing the benefits of China’s growth by providing opportunities to all

Living standards in China have greatly improved over the past few decades. Both sustained economic growth and an expansion of the social security system have contributed to a sharp reduction in the number of people in poverty. However, urban-rural inequalities remain large and some of the poorest households are being left behind. Further reforms are needed to ensure that the benefits of future growth are shared and that marginalised groups have the opportunity to actively participate in the economy. In particular, policy settings should be adjusted to increase access to good quality education and healthcare for rural and migrant workers and to improve the portability of social security benefits. Changes to the social assistance system that raise work incentives and protect low-income households in poorer locations are also a priority. New spending measures can be funded by adjustments to the tax system which will, in themselves, benefit inclusiveness.

PDF OECD Boosting firm dynamism and performance in China
With persisting slower growth worldwide and in China, over-capacity in some heavy industry sectors, declining profitability, and intensifying competition from other, lower-cost emerging economies, corporate behaviour in China needs to change and focus more on efficiency and sustainability. This need is further intensified by mounting environmental pressures and China’s ambition for greener and more sustainable growth. A larger proportion of firms, including state-owned enterprises, should step up innovation efforts and improve corporate governance practices. To this end, supportive policies are needed, fostering an environment that is more conducive to innovation and entrepreneurship, and facilitating resource reallocation through the exit of unviable firms. At the same time, fraudulent corporate practices must be halted and State assets need to be better managed. Reforms are under way or envisaged that will help improve corporate performance and, more broadly, deliver more resilient and environmentally sustainable growth and continuing progress in living standards.

Alain Gillard
Information Officer
Service Asie Pacifique
Place Sainctelette 2
1080 Bruxelles
Tél 02 421 85 09 – Fax 02 421 87 75
Twitter: @alaingillard
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