China Press Review – September 14, 2018

Press review

China’s fixed-asset investment growth falls to record low
China investment growth slowed to a record low in August, but industrial output and retail sales both grew at stronger-than-expected rates

It’s not just the US: around the world, doors are shutting on Chinese investment
From Germany to Britain to Canada, other nations have joined the United States in resisting the sale of technology companies to Chinese firms because of security concerns

Perfect storm of trade war, higher costs threatens survival of China’s small export businesses
US tariffs combined with rising costs and taxes are putting tens of thousands of exporters, and the jobs they provide, at risk

‘If we meet, we meet?’: Donald Trump casts doubt on possible breakthrough in trade talks with China, says ‘we are under no pressure to make a deal’
Trump’s Twitter post came after White House officials confirmed that Treasury Secretary Steven Mnuchin had offered a formal invitation to Chinese leaders to restart trade talks

US makes move on trade war talks as pressure mounts ahead of midterm elections
Washington’s offer to restart negotiations comes as both sides are feeling the strain, and with Beijing in a weaker negotiating position

Trump insists US under ‘no pressure’ to strike deal with China
Tweet casts doubt over Mnuchin offer of renewed trade talks

Trump appears to think China is on the verge of cracking on trade. He’s probably wrong.
“There’s a lot of overly wishful thinking on the American side,” Jeff Moon, a former U.S. trade negotiator, tells the Post. “Every economy has problems. We have ¬trillion-dollar deficits. That doesn’t mean either economy is in fundamental danger. It’s a massive miscalculation.” You can read more about the complexities of the trade war at The Washington Post.

China to ask Wall Street for ideas on improving U.S ties
China will ask Wall Street firms for ways to improve ties with the United States and suggestions to open up its financial sector at a day-long meeting in Beijing on Sunday, people familiar with the matter said.

EU and China need closer ties urgently to offset trade disruption, says bloc’s new ambassador in Beijing
Greater accord needed on issues such as trade and investment to consolidate ‘foundation’ of a global power triangle the two sides form with the US, says Nicolas Chapuis

China, Tariffs, and Trade Policy—What’s Going On?
Expect increased oversight from US Customs and Border Protection

China, Tariffs, and Trade Policy—What’s Going On?

Forbes Asia Investment Briefing: Deutsche Bank Says China Market Liberalization Critically Important
The trade war will also be a longer term focus for Stephens, along with the liberalization of China’s capital markets. Deutsche Bank estimates that Chinese households have 65 trillion yuan ($9.5 trillion) in savings, so the opening of the country’s capital markets will be of critical importance not only to this region but also the rest of the world.

Perfect storm of trade war, higher costs threatens survival of China’s small export businesses
US tariffs combined with rising costs and taxes are putting tens of thousands of exporters, and the jobs they provide, at risk

China says world trade system not perfect, needs reform
The current world trade system is not perfect and China supports reforms to it, including to the World Trade Organisation, to make it fairer and more effective, Beijing’s top diplomat said.

U.S. Automakers Are Taking Hits From Both Sides in Trump’s Trade War With China
In the ongoing trade dispute between the U.S. and China, perhaps no companies are more affected than American automakers that are manufacturing their cars in China.

Chinese consumers swing toward local brands
Apple and Ikea drop out of top 10 ranking by Prophet

Alipay tops China brand survey; three Alibaba brands in top 10
Alipay is tops in brand recognition in China, according to global marketing consultancy Prophet’s 2018 Brand Relevance Index survey released this week. Besides Alipay, China’s leading digital-payments platform, two other Alibaba brands were in the top 10 of the annual survey, which polled over 13,000 Chinese living in 47 cities. Taobao–the world’s largest e-commerce platform–was number six, and the brand-oriented Tmall e-commerce platform came in at number 10.

Ant Financial launches mini-program business unit as it plays catch-up to Tencent’s WeChat
Internet companies are seeking to retain users within their so-called ecosystems, which has meant a race to offer various services to users.

High Debt Limits China’s Arsenal in Defending Against Trump
Curbing borrowing remains a top priority for Beijing, despite pleas from Chinese businesses for relief.

HNA Group unit fails to repay $44m loan
Latest misstep highlights financial problems at Chinese developer

4 Provocative Statements from “Beyond Dior: The Business of Chinese Fashion” Event
China, to emerge as the major fashion-design force it may someday become, has some problems to solve. That was the advice of a trio of fashion experts gathered at China Institute to discuss the state of the nation’s fashion market and its influence–from the perspective of both consumers and creators–on a global scale.

4 Provocative Statements from “Beyond Dior: The Business of Chinese Fashion” Event

To Logo or not to Logo? Navigating China’s Hot Logo Trend
Just a few years ago, Chinese consumers were still shunning prominent logos as, traditionally, flaunting wealth in China was seen as tacky. On top of that, a wave of anti-corruption policies further dissuaded ostentatious shows of luxury among high-end consumers. But suddenly, logos are becoming important to fashion consumers in China, and fashion houses are respondingwith a bevy of new logo designs and applications.

To Logo or not to Logo? Navigating China’s Hot Logo Trend

China-ASEAN e-commerce to expand
The cross-border e-commerce trade volume between China and the Association of Southeast Asian Nations countries will increase by 50 percent in 2018, boosted by trade facilitation, according to an expert.

Experts Share Insights On Managing Risks And Seizing Opportunities Through Belt And Road Initiative
The Trillion-Dollar Opportunity: Chinese investment in ASEAN – Managing risks and seizing opportunities along the Belt and Road, organized by China Money Network in conjunction with TMF Group, was successfully held on September 13 in Hangzhou, China

Experts Share Insights On Managing Risks And Seizing Opportunities Through Belt And Road Initiative

Chinese rust-belt province pushes for new road and rail links to North Korea – and beyond to the South
Liaoning airs proposal as part of its contribution to Beijing’s global belt and road infrastructure drive

China, France to strengthen communication in Belt and Road construction
“China is willing to strengthen communication with the French side in building the Belt and Road and explore new ways of cooperation,” Wang said, calling on the two sides to make contributions to maintaining multilateralism, improving global governance, and promoting world peace and development.

Podcast : China’s Belt and Road: Episode Two
Belt and Road: China’s Trade Superhighway. Bloomberg Television’s Haslinda Amin looks at how China’s trillion-dollar Belt and Road initiative impacts India, Kazakhstan and South East Asi

China can make its Belt and Road project more successful if it taps locals, experts say
China’s flagship investment program — known as the Belt and Road Initiative — is one of the answers to the emerging world’s infrastructure needs, but it has been shrouded in criticism amid allegations of debt-trap diplomacy and neo-colonialism.

Trade war weakens China PE
China’s domestic polyethylene (PE) prices may weaken in the near term because of ample supply and demand uncertainties amid the country’s trade war with the US.

Chinese millennials and Gen-Zs fuel demand for diamonds in the world’s No 2 market
Chinese millennials and those born after 1995, or Generation Z, are leading the world in buying diamonds and fuelling demand in the world’s second-largest diamond market, a study by De Beers has shown.

State-owned miner Shandong Gold plans US$768 million in Hong Kong initial public offering
State-owned firm controls and operates 12 domestic gold mines, and accounts for roughly 6.6pc of China’s gold output. Funds to be used to partially pay down debt from purchase of Argentina’s largest mine

Why Investors Should Fear China’s Buyback Wave
Repurchases are a sign of weakness, not strength.

It’s Not Too Late to Prevent a Russia-China Axis
Here’s how the U.S. can avoid driving the two countries together.

Russia-China military cooperation ‘could worry Europe’
Deepened ties such as those displayed in Vostok 2018 war games may make some small countries nervous, says European diplomat

Anger grows in China over school crowding
Local governments are struggling to cope with rapid urbanisation and their perilous finances

Chinese Moms Are Stressing Out About Their Kids’ Education
And Chinese dads are fine with that. In their desperate attempts to secure the best education possible for their children, Chinese mothers have virtually become agents for their kids. They shell out millions of yuan on homes near top public schools, sign up their young protégés for all manner of extracurricular classes, and start scouting out high schools and colleges years in advance.

Alain Gillard
Information Officer
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