China Press Review – September 16, 2019

Press review

US needs a trade war deal more than China does heading into 2020, says MUFG economist
US President Donald Trump faces growing pressure of a possible economic slowdown while seeking re-election Trump ‘doesn’t want a S&P 500 correction of 10 per cent in the middle of a re-election campaign’, says Derek Halpenny of Mitsubishi UFJ Financial Group

Trade war and economic slowdown leave giant Chinese industrial estate scrambling to keep foreign companies
Spanning an area five times the size of Manhattan, Suzhou Industrial Park contributed 14 per cent of Suzhou’s economy in the first six months of 2019 Trade war has hit exports and forced some companies to leave, but government subsidies and shift in production patterns convincing some to stay in China

China’s economy is getting worse. That makes a trade deal more likely
China’s economic slowdown keeps getting worse. That could give the country incentive to repair its trading relationship with the United States and take more steps to stimulate its economy. The country released data Monday that showed industrial production — an important indicator for China’s economy — increased by just 4.4% in August compared to a year earlier. That’s worse than the sector’s performance in July, when it grew by 4.8%, its weakest growth in 17 years.

Why China’s Starting to Shake Up Its Interest Rates
The People’s Bank of China is liberalizing its interest-rate system in another milestone in the landmark reforms started four decades ago to boost the role of markets in the economy. The overhaul might also help lower the cost of borrowing for companies and households in the short term, as the economy grapples with its own downward forces and the U.S.-China trade war.

Why Is China Afraid of a Few Free Market Academics?
China’s time as a helpless victim of Western imperialism is long over.

Why China’s central bank is liberalising its interest-rate system
As part of liberalising its interest-rate system from August, the PBOC replaced the benchmark lending rate with two new reference rates for bank loans The PBOC wants to influence the economy and financial markets via the price of its short-term loans in the open market – an approach similar to other central banks

Xi Jinping’s biggest headache isn’t Hong Kong. It’s the price of pork in China
Rocketing food prices make a mockery of Xi’s ‘Chinese dream’ and threaten widespread discontent The Communist Party’s policies contributed to the crisis by shifting imports from the US and Canada to Russia

China’s moves to tackle swine fever are ‘ineffective,’ and it may cause inflation to spike above target
China’s efforts to halt the spread of African swine fever among its pig population are “ineffective,” according to research firm Capital Economics.The current pork shortage will push up pork prices, causing inflation in 2020 to rise above government targets, economists say. A recent outbreak of swine fever has hit the world’s largest pork producer hard. As a result, pork prices in China have soared.

The ‘China Hands’ Got China Wrong, But Listen to Them Now
Looking back, the great-power generalists were warier about Beijing’s threat. Looking ahead, a grasp of Mandarin will come in handy.

Here’s why big investing firms are steering clear of China’s expensive, underperforming new-energy car sector
Big investment firms are bearish on Chinese EV makers Beijing slashed subsidies on EV cars this year, hurting sales China’s State Council said last month that it will ease or waive restrictions on car purchases in big cities by increasing supply of plate quotas to bolster consumption and arrest a decline in economic growth. But analysts expect the move will be a bigger boost to sales of comparatively cheaper cars powered by combustion engines. “Though electric vehicles represent the mega-trend in the auto industry, they still need policy support at this stage,” said Wang. “Once the impact of the phase-out of subsidies fully subsides and sales begin to increase on a year-on-year basis, it’ll be a good point of jumping into the play.

China’s iconic Hongqi makes a splash at Frankfurt
The company is planning to offer 17 varieties of car models by 2025, including a number of new energy vehicles and SUVs

Artificial intelligence is watching China’s students but how well can it really see?
The country’s schools and universities have been keen adopters of AI, applying the technology in classrooms and dormitories

Fearing ‘Spy Trains,’ Congress May Ban a Chinese Maker of Subway Cars
America’s next fight with China is unfolding at a glistening new factory in Chicago, which stands empty except for the shells of two subway cars and space for future business that is unlikely to come. A Chinese state-owned company called CRRC Corporation, the world’s largest train maker, completed the $100 million facility this year in the hopes of winning contracts to build subway cars and other passenger trains for American cities like Chicago and Washington.

Beijing ups pressure on domestic airlines to buy China-made jets
Aerospace company Comac finds itself on verge of challenging Boeing and Airbus

China’s gambling on a nuclear future, but is it destined to lose?
China is the world’s largest consumer of energy, thanks mainly to industrial activity. This is only going to increase, with households expected to use nearly twice as much energy by 2040, according to the International Energy Agency. At present, some 60% of that energy consumption is powered by coal. But China is spending heavily on natural gas and nuclear power, as well as renewables — the country accounted for almost half of all investments in the latter globally in 2017.

China’s restaurant industry is booming as young professionals stay hungry amid trade war, slowing economy
China’s restaurant sector is enjoying breakneck growth and could soon overtake the US as the world’s biggest market Rapid growth and a tight focus on profitability make the new class of Chinese restaurant chains enticing investment targets

Vivo offers new smartphone with 5G, 4G versions as China demand for advanced service still in early days
Less than 1 million 5G smartphones are forecast to sell in China this year, according to IDC That number is projected to grow to 57 million next year as 5G network services expand

Should Europe share US and Australian fears about academic partnerships with China?
Reported Irish-Chinese research collaborations highlight greater openness to such connections in Europe, where governments have yet to intervene

Hong Kong stocks drop most in three weeks, weighed down by protests, weak China data
Demonstrators continued to battle with police over the weekend, setting fire at entrance to subway station in Wan Chai and forcing closures of shops China’s industrial production, retail sales and fixed-asset investment all fell short of estimates in August

Hong Kong protests a minor blip for strategic investors in home-grown start-ups as they focus on long-term potential
Hong Kong-based AngelHub and WHub raise US$3 million in funding from TNG Fintech Group and Kharis Capital

Carrie Lam denies reports of talks with state firms on buying up Hong Kong
Chief executive says she met SOE representatives as part of her general responsibilities as leader

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