NEWS

September 17, 2019

Will technology or commerce be the victor in the rivalry of two cities to be the model for China’s economic reforms?

A competition is under way between Shanghai and Shenzhen to claim the mantle as the role model and pacesetter for the next phase of the country’s economic reforms and growth.The Chinese government has unveiled blueprints for the long-term development of Shanghai the commercial hub and Shenzhen the “Silicon Valley” of China, granting each leeway to experiment with liberalisation policies and giving them a leg up on hundreds of special economic zones and free-trade zones around the country.“The…
September 17, 2019

Will technology or commerce win out as Shenzhen and Shanghai compete to be the model for China’s economic reforms?

A competition is under way between Shanghai and Shenzhen to claim the mantle as the role model and pacesetter for the next phase of the country’s economic reforms and growth.The Chinese government has unveiled blueprints for the long-term development of Shanghai and Shenzhen – respectively the commercial hub and “Silicon Valley” of China – granting each leeway to experiment with liberalisation policies and giving them a leg up on hundreds of special economic zones and free-trade zones around…
September 17, 2019

Hong Kong protests fail to slow city’s role as foreign investment gateway to China, government data shows

Hong Kong’s role as the primary gateway for long-term international investors to transfer money into China has remained largely intact despite the city being hit by increasingly violent anti-government protests, according to data released by the Chinese government.According to the figures from China’s Ministry of Commerce, Hong Kong remained the dominant source of foreign direct investment entering China in June, July and August when the city grabbed global headlines for the protests triggered…
September 17, 2019

China pushing ahead with controversial corporate social credit rating system for 33 million firms

China is moving forward rapidly its plans for a controversial social credit rating system that will include 33 million companies, raising fears of reprisals among foreign firms as Beijing seeks to extend its control over the business environment in the country.The National Development and Reform Commission (NDRC) is pushing ahead with social credit-based supervision of all commercial entities from large firms to small, independently owned and operated business, prompting complaints over…
September 17, 2019

New home prices rise in just 55 of 70 Chinese cities, the lowest in 18 months, amid Beijing’s efforts to cool the market

The Chinese government’s efforts to take the heat out of the property market appear to be paying dividends, with new data pointing to a slowdown in price gains as a growing number of developers slashed their prices.The price of new homes increased in 55 of 70 cities tracked by the National Bureau of Statistics in August, the lowest number in 18 months. Only 44 cities saw new-home prices increase in February last year.The average cost of a new home rose by 0.58 per cent in August, the smallest…
September 16, 2019

China corn industry also hit by African swine fever as demand for pig feed drops

Corn accounted for almost 8 per cent of China’s gross domestic product last year and 40 per cent of the country’s overall grain production, but one of the country’s three principle crops is feeling the effects of the African swine fever epidemic as demand for pig feed shrinks, according to industry insiders.Along with wheat and rice, corn is one of the three principle crops in China, meaning the government will take steps to ensure the country’s self-sufficiency as part of its overarching food…
September 16, 2019

Robert Lighthizer determined to land ‘real agreement’ with China, US Chamber chief Tom Donohue says

This story is published in a content partnership with POLITICO. It was originally reported by Adam Behsudi on politico.com on September 16, 2019.US Trade Representative Robert Lighthizer told top business executives on Monday that there is still much work to be done to reach a trade deal with China despite the two sides having been close to an agreement earlier this year, said US Chamber of Commerce CEO Tom Donohue.“He laid it out by saying this is an extraordinary challenge, and when it all…
September 16, 2019

China’s yuan makes little progress to dethrone the US dollar as global currency, survey finds

China’s effort to promote the yuan as a global currency has made only marginal progress in the last three years, according to an international survey conducted by the Bank for International Settlements.The yuan kept its ranking as the world’s eighth most-traded currency, with a daily average turnover of US$284 billion, up from US$202 billion three years ago, according to the Bank for International Settlements (BIS) triennial survey of foreign exchange, indicating that it is evolving into an…
September 16, 2019

Slow going for China’s ambitions to make the yuan a global currency, survey finds

China’s effort to promote the yuan as a global currency has made only marginal progress in the last three years, according to an international survey conducted by the Bank for International Settlements (BIS).The yuan kept its ranking as the world’s eighth most-traded currency, with a daily average turnover of US$284 billion, up from US$202 billion three years ago, according to the BIS’ triennial survey of foreign exchange, indicating that it is evolving into an international currency very…
September 16, 2019

Hong Kong airport’s loss is Guangzhou and Shenzhen’s gain amid ongoing anti-government protests

Guangzhou surpassed Hong Kong International Airport in terms of the number of monthly passengers carried for the first time in August, while Shenzhen airport also reported a significant uptick in flight traffic, according to official data.Guangzhou Baiyun International Airport said it welcomed 6.5 million travellers in August, an increase of 3.4 per cent compared with a year earlier, while passengers passing through Hong Kong airport plunged 12.4 per cent to six million amid ongoing protests…
September 16, 2019

Hong Kong airport’s loss is Guangzhou and Shenzhen’s gain amid anti-government protests

Guangzhou surpassed Hong Kong International Airport in terms of the number of monthly passengers carried for the first time in August, while Shenzhen airport also reported a significant uptick in flight traffic, according to official data.Guangzhou Baiyun International Airport said it welcomed 6.5 million travellers in August, an increase of 3.4 per cent compared with a year earlier, while passengers passing through Hong Kong airport plunged 12.4 per cent to 6 million amid ongoing protests…
September 16, 2019

China economic slowdown sparks debate over what caused the slump, and how Beijing should intervene

After China’s economic slowdown grew more pronounced in August, analysts continued to debate how much of the blame rests with the trade war and how much is down to older, underlying issues in the Chinese economy.Industrial production growth - an important gauge of manufacturing output - slowed to 4.4 per cent in August, a new 17-year low, while retail sales growth slowed to 7.5 per cent. Fixed asset investment slowed to 5.5 per cent in the first eight months of year, down from 5.7 per cent in…
September 16, 2019

GM strike is example of how US labour unions are killing manufacturing, says ‘American Factory’ boss

Cao Dewang, the Chinese owner of the Ohio car glass factory featured in the documentary film American Factory, said the western labour union system is no longer fit for the development of manufacturing and that the system in the United States is the main driver behind the demise of made in America products.The 73-year-old Chinese entrepreneur said that he would rather close down his factory in Dayton, Ohio, than allow a labour union to run it, reiterating his stance voiced in the documentary…
September 16, 2019

China’s industrial growth slowed to new 17-year low in August, even before new US trade war tariffs took effect

China’s industrial engine continued to stutter in August, with a key gauge of the country’s manufacturing output slumping to a new 17-year low, in the last month before the United States imposed new tariffs on Chinese-made goods.Industrial production, which measures China’s industrial output, including manufacturing, mining and utilities, grew at 4.4 per cent last month, down from 4.8 per cent in July, which in itself was the lowest rate since February 2002. This was well below a poll of…
September 16, 2019

China’s industrial engine slowed to new 17-year low in August, even before new US trade war tariffs took effect

China’s industrial engine continued to stutter in August, with a key gauge of the country’s manufacturing output slumping to a new 17-year low, in the last month before the United States imposed new tariffs on Chinese-made goods.Industrial production, which measures China’s industrial output, including manufacturing, mining and utilities, grew at 4.4 per cent last month, down from 4.8 per cent in July, which in itself was the lowest rate since February 2002. This was well below a poll of…
September 15, 2019

London Stock Exchange rejection ‘shows Hong Kong can’t make it alone’

The London Stock Exchange Group’s preference for Shanghai over Hong Kong as a Chinese market partner shows that the southern city cannot break away from the mainland and develop on its own, according to a Communist Party mouthpiece.In a commentary published late on Saturday, People’s Daily said that getting access to future opportunities in China depended on how well the city consistently aligned with the country’s interests.The comments came after the London bourse operator rejected Hong Kong…
September 15, 2019

HSBC chairman Mark Tucker condemns violent protests in Hong Kong

Hong Kong must resolve its political crisis peacefully under “one country, two systems” and violence will not enable protesters to achieve their aims, the head of the city’s biggest bank told China’s state broadcaster.Speaking publicly for the first time about the summer of unrest, HSBC chairman Mark Tucker said Hong Kong thrived because of its stability, resilience and rule of law.“Its rule of law is essential to its status as an international financial centre. And we fully support the…
September 15, 2019

Why China’s central bank is liberalising its interest-rate system

The People’s Bank of China is liberalising 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 US-China trade war.How did it work before?Most central banks govern the price of money in an economy via the rate that banks are charged to borrow…
September 15, 2019

Trade war and economic slowdown leave giant Chinese industrial estate scrambling to keep foreign companies

In the eastern province of Jiangsu, China’s economic problems are resonating through one of the engines of the nation’s dramatic growth over the past three decades, the giant Suzhou Industrial Park.Built on an area five times the size of Manhattan that was once farmland and fields, the park’s Singaporean-inspired design has an emphasis on tidy urban planning and green landscapes. The city of Suzhou itself – a silk hub known as the Venice of the East for its many canals – has modernised around…
September 15, 2019

China’s restaurant industry is booming as young professionals stay hungry amid trade war, slowing economy

Chinese consumers are not allowing trade war uncertainty or a slowing economy to affect their appetite.The country’s food and drinks sector is booming and will become a trillion-dollar industry in the next few years if it continues on its current trajectory. It could soon displace the US as the biggest catering market on the planet.The growth engine is the increasing numbers of young professionals heading out for a late dinner or ordering home delivery after a long day at the office, according…