China Press Review – September 12, 2019

Press review

Donald Trump’s tariff delay ‘adds momentum’ before trade talks – but is a deal likely?
Analysts split on whether gestures from United States and China have brought a trade agreement closer

China welcomes Donald Trump’s ‘goodwill’ act of postponing US tariff increase until after National Day
The American president confirmed a planned increase in tariffs from 25 per cent to 30 per cent on US$250 billion of Chinese goods will be delayed to October 15 The new levies were expected to take effect from October 1, but will now come before expected face-to-face trade talks in Washington

Donald Trump delays US tariff rate increase to avoid escalating trade tension on China’s National Day
Rise in tariff rate on US$250 billion worth of Chinese imports to 30 per cent moved from October 1 to October 15 Delay comes the day after China exempted 16 types of US products, including medications, from import tariffs

Explainer: Why Beijing cut the tax rate on rare earths amid the escalating US-China trade war
Industry observers say the move is meant to boost production, make it economically feasible to exploit low-grade deposits and maintain the country’s edge in the sector A lower tax rate of 20 per cent on miners of heavy rare earths takes effect from September 2020

Trump trade war with China has cost 300,000 U.S. jobs, Moody’s estimates
Moody’s Analytics estimates that the Trump administration’s trade war with China has resulted in 300,000 fewer jobs being created in the U.S. That figure could rise to 450,000 by year-end if the dispute continues, according to the economic research firm. Economist Mark Zandi said the two countries are playing a “dangerous game of economic chicken.”

China still not doing enough to woo foreign investment, with local governments accused of harming progress
Executives at the China International Fair for Investment and Trade raise concerns over capital controls and lack of transparency Beijing has offered VIP treatment to the likes of Telsa CEO Elon Musk as it aims to increase market access and level the playing field with domestic companies

Huawei’s Ren Zhengfei ready to sell 5G tech to a Western buyer to help create rival, level playing field
Comments from Ren come as the Chinese telecoms giant remains in the middle of US-China trade war and after it was put on a US trade blacklist in May

US Huawei problem goes far beyond trade, security official says
Details of national security and geopolitical concerns outlined at international conference in Washington

China ‘must clean up its cyber act’ for Huawei to be used in 5G network
UK defence secretary urges code of ‘fair play’ as he says decision on firm coming soon

China’s central bank to stick to its guns by lowering interest rates despite soaring pork price, analysts say
The People’s Bank of China is under pressure to provide liquidity to support growth with the US Federal Reserve and European Central Bank also planning changes China’s headline-grabbing pork price surge has yet to translate into broad-based inflation

China aims to become self-sufficient in pork production despite African swine fever
Agriculture ministry says long-term goal is achievable despite the loss of a third of domestic livestock owing to impact of disease Observers believe foreign producers will never be able to produce enough to satisfy the world’s largest market for the meat

China’s ‘heartbroken’ pig farmers torn apart by pork price spike and African swine fever
The disease has already contributed to China losing more than 100 million pigs over the last year, and the deadly virus could kill up to half of China’s pig population This has led to pork prices rising 46.7 per cent in August from a year earlier, with farmers fearful of restocking due to the threat of the deadly disease

Amazon vs. Alibaba: Everything You Need to Know About the Two Biggest E-tailers
Amazon failed in China, a market dominated by Alibaba Group, and earlier this year, it shut down its Chinese e-commerce business. The e-commerce market is growing globally, but in China, the expansion is even more remarkable. Motivated by low prices and convenience, Chinese buyers have fully embraced online shopping in a country where Alibaba, Amazon, JD, and Zalando are the big players. Yet the focus is often on the world’s two largest e-tailers, Alibaba and Amazon. The media likes to present these two as rival contenders engaged in a global showdown, but the reality is far more complex, and Amazon and Alibaba are actually quite different. Each has unique features and employs different business models, so it’s important to understand their similarities, differences, and what really makes them tick.

Amazon vs. Alibaba: Everything You Need to Know About the Two Biggest E-tailers

China Considering US Agricultural Purchases as Trade Rivals Exchange Good Will
Chinese Commerce Ministry spokesman Gao Feng said China was looking into purchasing U.S. agricultural goods such as pork and soybeans.

Taiwan steps into trade war breach for US, saying it will buy US$3.6 billion in American agricultural products
The rising tension between Beijing and Washington has helped Taipei, as the US Congress and Trump administration move to strengthen ties with Taiwan A letter of intent for the sale will be signed next week in Washington, signalling the apparent political as well as economic dimension to the purchase

Dedollarisation of the global economy? China and Russia boost gold reserves
With increased fears of a looming recession, economic sanctions and ongoing trade tensions both Russia and China are adding to their gold reserves. The price of gold has risen by 18% since January 1st 2019 and is now at a six-year high. China still possesses the largest foreign exchange reserves in the world, with the latest figures standing at $3.1072tn USD. In August the Yuan fell 3.8% against the dollar, the steepest monthly drop since 1994, it is currently trading at an 11 year low.

China mulls granting local governments greater autonomy to make their own laws
The National People’s Congress is considering delegating greater lawmaking power to provincial and even municipal legislatures Chinese provinces and cities are demanding greater autonomy as nationwide rules often fail to fit local conditions

AB InBev resumes application for Budweiser’s US$9.8 billion initial public offering in Hong Kong two months after scrapping plans
Budweiser Brewing Company APAC says there is no guarantee that the IPO will go ahead despite resuming its IPO application AB InBev’s Asia-Pacific unit had planned to raise as much as US$9.8 billion from its planned IPO in July

podcast : How China Moves to a Lower GDP: JPMorgan’s Chang
Joyce Chang, chair of global research at JPMorgan, explains how China’s GDP can slow over the next decade and potentially lead to negative interest rates for the nation.

China expected to allow green bonds to fund clean coal projects in potential blow to climate change fight
China consumes half of the world’s coal and generates 60 per cent of its electricity from coal The move would put the world’s largest emitter of greenhouse gases at odds with the European Union on green financing standards

The rise of women in China’s tech sector
Women in various roles from business owners to researchers are a force to be reckoned with in China and around the world. With female labor force participation at around 63% in China, the country’s women contributed 41% of GDP in 2017, a higher percentage than in most other countries including the US, according to a report by Deloitte China and women’s professional support network Lean In China.

The rise of women in China’s tech sector

Taiwan became top chip manufacturer with US help. Can it stay there?
This is the third in a four-part series of in-depth articles examining China’s efforts to build a stronger domestic semiconductor industry amid trade tensions Here we look at how Taiwan became a global force in chip production with the help of the US and the challenges it now faces, including from China

‘Tesla of China’ Sputters a Year After IPO
As electric-car furor in China wanes with the phasing out of government subsidies, Nio is now scaling back and taking a more measured development approach. The company needs to control costs and focus less on hype and more on developing high-quality, reliable products to ensure its future viability, analysts said. “To ensure the sustainable development of the company, we must adjust our mindset and planning in a timely way, further control spending … and concentrate resources on our core businesses,” said CEO William Li in an August internal message leaked to media. In the message, Li also announced that Nio would lay off another 1,200 people, cutting its total staff globally to 7,500 — down from 9,800 early this year.

Chinese scientists use CRISPR in attempt to cure patient’s HIV
A 27-year-old man diagnosed with both HIV/AIDS and leukemia in 2016 was treated with a new CRISPR-based therapy intended to cure both diseases, STAT reported. A team of scientists led by Deng Hongkui of Peking University treated the patient 19 months ago and detailed their findings in the New England Journal of Medicine on Wednesday. Although the treatment failed to eliminate HIV from the patient’s cells, his leukemia is in remission and he didn’t suffer from any side effects despite concerns that the therapy could trigger cancer or other genetic damage.

Chinese scientists use CRISPR in attempt to cure patient’s HIV

Incoming EU chief Ursula von der Leyen vows to ‘define’ relations with increasingly assertive China
Debut media conference comes amid backdrop of calls for a tougher stance on China, with Hong Kong protests driving much of the conversation Sweden, an EU member with strained Beijing relations, is expected to unveil a strategic China paper within days

China should know that Hong Kong is not Macau, and neither is Taiwan
President Xi Jinping and other Chinese leaders need only look at the contrast between Hong Kong and Macau to see why ‘one country, two systems’ won’t work in Taiwan The current, albeit ambiguous, cross-strait status quo is the best-case scenario for Beijing

Hong Kong protests and the US-China trade war are hurting the city’s economy, but Carrie Lam can stop things getting worse
Even as economists cut growth forecasts for Hong Kong, the civil unrest and trade war are likely to ensure that their projections turn out optimistic The only way to dodge a recession is an urgent policy response that tackles the social inequity fuelling the public discontent

China summons German ambassador to Beijing
The Chinese government took action in protest at German Foreign Minister Heiko Maas meeting with pro-democracy activist Joshua Wong. Beijing says it has “sufficient proof” of foreign intervention in Hong Kong.

With whiffs of Cultural Revolution, Xi calls for struggle 50 times
Fierce battle with factions supporting Deng Xiaoping-style reforms rocks China

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