新闻

May 27, 2020

National security law: Hong Kong’s appeal as business hub in the spotlight as China law looms large

Financier and venture capitalist Simon Calton is watching closely how China implements its new national security legislation for Hong Kong, as the impending controversial changes could raise uncertainty that would translate into higher investment costs.Calton has long been a strong supporter of investing in Hong Kong, a city he sees as serving as a gateway to huge Chinese investment opportunities, especially in the 5G and blockchain sectors, along with projects associated with the nation’s Belt…
May 27, 2020

China debt: bond problems could still resurface in 2020 after defaults amid coronavirus lower than expected

Problems in China’s corporate bond market could still resurface later in the year after the level of defaults did not surge as high as expected during the economic downturn caused by the coronavirus outbreak thanks to ample credit and relaxed issuance requirements.The world’s second largest bond market after the United States has recorded 71 default cases so far this year, according to financial database Wind, 26 per cent lower than a year earlier.The value of missed repayments on corporate…
May 27, 2020

China IP cases surge amid US complaints, Beijing push for technology self-reliance

The number of criminal cases involving intellectual property rights violations in China has surged 5,660 per cent over the past two decades, according to the top prosecutor's office, in a sign of Beijing’s growing seriousness about rights protection as it seeks to boost innovation and appease the United States.Details of the enforcement drive were released by the Supreme People’s Procuratorate of China in an annual work report on Monday, marking the first time the office has provided data on…
May 27, 2020

China facing soybean dilemma as it tries to balance phase one trade deal with self-reliance

China’s demand for soybeans is expected to rebound in 2020 but the question remains where the supply will come from as it attempts to move away from over reliance on imports but also meet its commitments under the phase one trade deal with the United States.There are growing concerns regarding China’s food security as the relationship with the US becomes volatile, and since the beginning of the trade war, China has been reinforcing self-reliance on its industries including manufacturing and…
May 27, 2020

Volkswagen is in final talks to pay US$491 million for an electric carmaker in Anhui, sealing its biggest acquisition in China

Volkswagen is in final talks to seal its largest investment deals with Chinese electric vehicle (EV) firms, two sources said, as the German carmaker accelerates its push into the world’s largest market for environmentally friendlier cars.The firm is poised to buy 50 per cent of Anhui Jianghuai Automobile Group Holding, the parent of EV partner JAC Motors, for at least 3.5 billion yuan (US$491 million), the people said on condition of anonymity as the matter was private.It is also set to become…
May 27, 2020

China’s industrial giants remain under pressure as profits continue to decline

Profits at China’s big industrial firms continued to collapse in the first four months of the year under pressure from the economic damage caused by the coronavirus outbreak.Industrial firms saw profits fall by 27.4 per cent over the first four months of 2020.This was a further slight improvement from the 36.7 per cent drop over the first three months, and the record 38.3 per cent decline from a year ago in the first two months of 2020.In April, profits at China’s big industrial firms fell 4.3…
May 27, 2020

China’s industrial giants remain under pressure as profits continue to decline, but at slower pace

Profits at China’s big industrial firms continued to collapse in the first four months of the year under pressure from the economic damage caused by the coronavirus outbreak, although the decline showed signs of slowing.Industrial firms saw profits fall by 27.4 per cent year-on-year over the first four months of 2020 to 1.26 trillion yuan (US$177 billion), data from the National Bureau of Statistics (NBS) released on Wednesday showed.This was a further slight improvement from the 36.7 per cent…
May 26, 2020

China 2020 GDP forecasts left unchanged as size of Beijing stimulus disappoints

Economists have made few changes to Chinese growth forecasts for this year after Beijing announced details of a new stimulus plan, with many disappointed it was less aggressive than the support package implemented after the global financial crisis in 2008.The world’s second largest economy is now widely expected to grow by between 1.5 per cent to 2.5 per cent in 2020, analysts said, with second quarter data crucial in forecasting annual growth given the uncertain outlook for consumer spending…
May 26, 2020

China’s digital currency not set for launch as trials are ‘just routine’, central bank governor cools speculation

China still has no timetable for launching its much-hyped sovereign digital currency, with limited public trials that will begin soon just “routine parts of the research and development process”, China’s central bank governor said.People’s Bank of China chief Yi Gang said China had “basically completed” the top-level design, standard setting, research on functions and integration tests of the digital yuan.But Yi cautioned that the central bank still needed more time to verify “the reliability…
May 26, 2020

China shuts down WeChat social media account claiming ‘US making dead bodies into hamburgers’

China has shut down a popular social media account for spreading fake news and conspiracy theories, as Beijing moves to curb misinformation and online hate speech in an attempt to tone down an ongoing war of words with the United States.Relations between China and the US have hit new lows in recent months, as the two powers clash over trade, the coronavirus, and Beijing’s moves to impose new security regulations on Hong Kong.Nationalist groups and opportunistic businesses have latched onto the…
May 26, 2020

China’s top court vows to help companies stay afloat amid coronavirus fallout

Helping debt-laden companies stay afloat and resolving contractual disputes are among the top priorities for China’s courts this year, amid the economic fallout from the Covid-19 pandemic.But the country’s top court also said it would defend China’s interests in response to overseas lawsuits against Beijing demanding reparations for the deadly coronavirus outbreak.Delivering his annual report to the legislature on Monday, Zhou Qiang, president of the Supreme People’s Court, said the courts must…
May 25, 2020

China import data reveals tainted Australian oats, almonds blocked last year as trade war fears grow

Exports of Australian oats and oatmeal, milk powder and almonds ran into import compliance trouble at Chinese ports last year alongside beef shipments, customs data shows, as concern grows that Beijing may expand restrictions on Australian goods.Chinese commerce minister Zhong Shan on Monday reiterated that Beijing’s investigation into the dumping of Australian barley was thorough and complied with the terms of the China-Australia Free Trade Agreement (ChAFTA).Beijing slapped a 80.5 per cent…
May 25, 2020

China’s economic strategy shift shows Xi Jinping is preparing for ‘worst case scenario’, analysts say

China’s move to double down on a pivot away from export-led growth in favour of developing its domestic market reflects a strategic shift by Beijing to prepare for the “worst case scenario” after the coronavirus pandemic, according to analysts.President Xi Jinping told dozens of top economic advisers in Beijing at the weekend that China was pursuing a new development plan in which “domestic circulation plays the dominant role”.“For the future, we must treat domestic demand as the starting point…
May 25, 2020

Coronavirus has hit China’s migrant workers harder than Sars and the financial crisis, but worst yet to come

In early January, when a mysterious “new pneumonia” started to ripple across parts of China, domestic worker Zou Lan caught a cold.Though authorities had yet to announce the unprecedented threat the coronavirus posed, her employer asked her to take some rest. She has been unable to return to work since.Penniless and with three kids to support, the single mother – who had worked in Nanjing for more than 10 years – has been trying to find a job for four months. After multiple failed job…
May 24, 2020

Coronavirus: China five-year plan to focus on independence as US decoupling threat grows

This is the last in a series of stories examining the issues that Chinese leaders face as they gather for their annual “two sessions” of the National People’s Congress and Chinese People’s Political Consultative Conference this week. This instalment looks at how China’s 14th five-year plan will shape its economic and political direction between 2021 and 2025.How can China survive and thrive in the face of US hostility? What does it need to take development to the next stage? And where should…
May 24, 2020

China five-year plan to focus on independence as US decoupling threat grows

This is the last in a series of stories examining the issues that Chinese leaders face as they gather for their annual “two sessions” of the National People’s Congress and Chinese People’s Political Consultative Conference this week. This instalment looks at how China’s 14th five-year plan will shape its economic and political direction between 2021 and 2025.How can China survive and thrive in the face of US hostility? What does it need to take development to the next stage? And where should…
May 24, 2020

China’s five-year plan to focus on independence as US decoupling threat grows

This is the last in a series of stories examining the issues that Chinese leaders face as they gather for their annual “two sessions” of the National People’s Congress and Chinese People’s Political Consultative Conference this week. This instalment looks at how China’s 14th five-year plan will shape its economic and political direction between 2021 and 2025.How can China survive and thrive in the face of US hostility? What does it need to take development to the next stage? And where should…
May 24, 2020

Two sessions: no hard target but ‘growth still vital’ to China’s economy and goals

China will still pursue some economic growth this year, despite not setting a gross domestic product target in the wake of the coronavirus pandemic, the country’s top economic planner said on Sunday.Ning Jizhe, vice-chairman of the National Development and Reform Commission, said that a certain level of growth was still crucial for the economy and to realise a series of economic and social development goals.“Whether it’s ensuring livelihoods, protecting jobs or eradicating poverty, these goals…
May 23, 2020

Coronavirus backlash adds to trade war and decoupling pressure to fray China’s ties to global system

This is the seventh in a nine-part series examining the issues Chinese leaders face as they gather for their annual “two sessions” of the National People’s Congress and Chinese People’s Political Consultative Conference this week. This story will examine China’s changing role in the global economy.Up until last week, almost all the Angus beef raised on Robert Mackenzie’s 15,000 acre family farm in Newcastle, New South Wales, was bound for China.But a trade spat which has seen meat from four…
May 23, 2020

Coronavirus: wealthy Chinese families say pandemic has eroded appetite for overseas schooling and investing

The coronavirus pandemic could permanently change wealthy Chinese families’ plans to send their children to study abroad or to use investment vehicles to emigrate overseas, according to a series of interviews with families in the mainland.A mix of pandemic-based problems for China’s urban rich, including the sudden uncertainty over future incomes, the health risks of living abroad, and China’s deteriorating image in Western countries, have forced many to reconsider, if not totally give up,…