NEWS

July 21, 2019

China retailers plan to buy more imported goods to meet consumer demand

Chinese retailers and wholesalers plan to increase their purchases of imported products because demand for them among Chinese shoppers remains strong, according to survey results published by China’s Ministry of Commerce (Mofcom).Some 9.7 per cent of the 945 retail and wholesale firms that responded to the Mofcom survey said they would increase their consumer product imports in the next year, 2.5 percentage points higher than those planning to decrease their purchases.Of 1,059 consumers…
July 21, 2019

China retailers plan to buy more imported goods to meet consumer demand, survey shows

Chinese retailers and wholesalers plan to increase their purchases of imported products because demand for them among Chinese shoppers remains strong, according to survey results published by China’s Ministry of Commerce.Some 9.7 per cent of the 945 retail and wholesale firms that responded to the Ministry of Commerce survey said they would increase their consumer product imports in the next year, 2.5 percentage points higher than those planning to decrease their purchases.Of 1,059 consumers…
July 21, 2019

Chinese firms ask for tariff exemptions to buy US agricultural products, state media says

Several Chinese companies want to buy American agricultural products and have applied for exemptions from the tariffs imposed on them by Beijing, state media reports.The applications for exemptions have been filed and will be heard by a panel of experts from the government, Xinhua reported on Sunday.The report did not name any of the companies or say what products they wanted to buy, but said the move was the result of an agreement reached between Chinese President Xi Jinping and his US…
July 20, 2019

Why are more of China’s students returning from overseas big fans of the Chinese economic model?

At the turn of the century, many people foresaw a “westernisation” process taking place in China – the development of a market economy and a freer society – especially after China joined the World Trade Organisation in 2001 with a clear commitment to reform its state-owned enterprises. The number of Chinese students studying in the US and European schools soared, offering fresh hope that returnees with an overseas educational background would facilitate China’s transformation into a society…
July 19, 2019

US-China tech war could be decided by population management as superpowers battle for talent

The context behind recent fluctuations and squabbles between the United States and China is quite clear for us all to see – two powers vying for technological domination over the other in the great technology race of the 21st century. For the moment, it seems evident that China will continue to outpace and surpass the US in the next 10 to 20 years. In the long run, however, the determining factor in the outcome of this struggle, I believe, could be how these two superpowers manage issues of…
July 19, 2019

US-China tech race could be decided by population management as superpowers battle for talent

The context behind recent fluctuations and squabbles between the United States and China is quite clear for us all to see – two powers vying for technological domination over the other in the great technology race of the 21st century.For the moment, it seems evident that China will continue to outpace and surpass the US in the next 10 to 20 years. In the long run, however, the determining factor in the outcome of this struggle, I believe, could be how these two superpowers manage issues of…
July 19, 2019

Gallium: China tightens grip on wonder metal as Huawei works on promising applications beyond 5G

Did you know that a 5G base station can be squeezed into a casing the size of a shoebox? It’s thanks to gallium, a soft, bluish metal that makes it possible.The chipsets that generate powerful bursts of high frequency radio waves are not made with silicon, but gallium nitride. They consume little electricity, produce little heat, and can function comfortably at 800 degrees Celsius, making bulky equipment for power supply and air conditioning redundant.Gallium is one of the 35 technology…
July 19, 2019

China’s war chest of rare earth patents give an insight into total domination of the industry

China is strengthening its grip on the rare earths supply chain and could use its dominant position as a bargaining chip in the US-China trade war.China has been investing heavily on facilities to do the bulk of the dirty and environmentally damaging mining and ore processing work for the world and systematically turning its know-how and methodologies into patents that could give it a competitive edge against its rivals.The country, which already supplies more than 80 per cent of the world’s…
July 19, 2019

China expected to implement more economic stimulus despite growing debt and weak yuan

China is likely to implement more economic stimulus policies in the second half of the year to steady growth even though this will further increase already high debt levels and put downward pressure on the yuan exchange rate, according to economists and analysts.Growth fell to a record low of 6.2 per cent in the second quarter of 2019, down from 6.4 per cent, reflecting not only the shock from the protracted trade war with the United States but also the difficulties Beijing is facing in…
July 19, 2019

China will need more than 35 years to upgrade to hi-tech manufacturing industry, study finds

China will only turn into an advanced manufacturing powerhouse in over 35 years at the current rate of progress despite the magnitude of the government’s industrial policy support for new domestic industries, according to a study by Renmin University of China in Beijing.Excess use of industrial subsidies, particularly by local governments, as well as poor implementation of anti-pollution standards, and the inability of the government to help small, private firms deal with short term operational…
July 19, 2019

China’s social credit system will not lead to citizens losing access to public services, Beijing says

China’s controversial social credit system will not result in individuals or companies losing access to public services, a senior government official said.Lian Weiliang, vice-chairman of the National Development and Reform Commission (NDRC), China’s state planner, said that “in the past, there were some inappropriate punishment measures for dishonesty in some regions, which have already been regulated and corrected”.The social credit system assigns both positive and negative scores for…
July 18, 2019

China still has more to do to help US trade war-hit private sector, says Chinese investment bank

China’s small and medium-sized businesses are being cut off from bank loans due to the spiralling cost of borrowing, according to research from a leading Chinese investment bank which jars with official government figures.New research from China International Capital Corporation (CICC), released this week, found that the cost of borrowing for small private companies can be more than double that of large companies, including state-owned enterprises, with the problem particularly acute in China’s…
July 18, 2019

US-China trade talks continue by phone, could lead to in-person meeting, says US Treasury Secretary Steven Mnuchin

US and Chinese officials will speak on Thursday, potentially paving the way for in-person trade talks to resume, US Treasury Secretary Steven Mnuchin said, as the world’s two largest economies seek to end a year-long trade war.Mnuchin and US Trade Representative Robert Lighthizer will speak on the phone with their Chinese counterparts, the Treasury Secretary said in an interview along the sidelines of the G7 meeting in Chantilly, France.The United States and China have been embroiled in a tit…
July 18, 2019

US-China officials discuss trade as US Treasury Secretary Steven Mnuchin eyes possible in-person talks

US and Chinese officials spoke by telephone on Thursday as the world’s two largest economies seek to end a year-long trade war, with US Treasury Secretary Steven Mnuchin suggesting in-person talks could follow.Mnuchin and US Trade Representative Robert Lighthizer spoke with their Chinese counterparts over the phone, Lighthizer’s office said on Thursday, following earlier comments by the Treasury secretary in an interview on the sidelines of the G7 meeting in Chantilly, France.The United States…
July 18, 2019

China’s sanctions threat against US firms after Taiwan arms deal casts shadow over Gulfstream’s ‘optimism’

The threat of Chinese sanctions against firms from the United States over arms sales to Taiwan may cast a shadow over Gulfstream’s “optimism in the region”, according to a lawyer whose company has advised the business jet giant.General Dynamics, and its subsidiary Gulfstream Aerospace, as well as Honeywell and Oshkosh Corporation, were named in an article posted on the official WeChat channels of both the People’s Daily and state broadcaster CCTV on Sunday, criticising their involvement in the…
July 18, 2019

China and Russia vow to ‘deepen trade in soybeans’ after tariff war kills US crop exports

As China looks to diversify its soybean supply away from the United States, Commerce Minister Zhong Shan agreed with Russian counterparts to “deepen trade in soybeans and other agricultural products” during a meeting this week.Zhong, a recent addition to Beijing’s negotiating team in trade war talks with Washington, met with the Russian minister for economic development Maxim Oreshkin on Tuesday to discuss ways in which the two countries could increase bilateral trade, according to a statement…
July 18, 2019

China may be courting Japan to cooperate with belt and road to allay controversy after yuan clearing deal

China’s decision last month to allow a Japanese bank to clear transactions valued in yuan raises the prospects of increased economic cooperation between the two countries, especially as China seeks to involve new countries in the Belt and Road Initiative in an attempt to fend off criticisms of its projects, analysts said.The People’s Bank of China last month named MUFG Bank as the first yuan clearing bank in Japan, and only the second non-Chinese bank after JPMorgan last year, to be allowed to…
July 17, 2019

Trade war is harming American economy more than China’s, claims official sent to US to defend Beijing’s position

The United States has sustained more economic losses than China related to the year-long trade war, a Chinese government official sent to the US to defend Beijing’s position in the stand-off and seek input from foreign policy specialists said on Wednesday.China’s slower economic growth is due more to government efforts to cut manufacturing overcapacity and rebalance towards a service economy and less about the trade war, Bi Jiyao, vice-president of the Chinese Academy of Macroeconomic Research,…
July 17, 2019

China’s handling of yuan backed by IMF despite Donald Trump’s repeated charges of currency manipulation

Despite repeated accusations of currency manipulation from US President Donald Trump, the International Monetary Fund has found that in 2018, Beijing’s handling of the Chinese yuan was “broadly in line” with the state of its economy.The Washington-based fund, which is bracing for the departure of managing director Christine Lagarde in September, also lashed out at the impact of the US-China trade war, which is “weighing on global trade and investment, without materially affecting [trade]…
July 17, 2019

China’s economy would grow by 7.5 per cent this year, were it not for the trade war, ING says

China’s economy would have grown by 7.5 per cent this year – against a current projection of 6.3 per cent – were it not for its trade war with the United States, Dutch investment bank ING said on Wednesday.Nomura, the Japanese investment bank, meanwhile, said global investors were likely to ignore the dispute and continue investing in China.Iris Pang, Greater China economist at ING, said according to a baseline view of continued tensions with little resolution, China’s economy will grow 6.3 per…