China's Economy Crisis in 2019 [ 1 of 3 ]
China local debts creating crisis to its financial system and Communist Party
Debts borrowed by various Chinese cities are sizing more than CNY8 trillion, though Beijing window dresses the total is about CNY2.5 trillion. “Imagine the economy is a ship like the Titanic, local government debts are like cargo containers piling up, already lots enough to break the deck.”
This is largely due to the Chinese officials’ culture – when Beijing stressed athletics, cities were crazy to build sports complex; when technology became a priority, big data and e-commerce centres were constructed instead. Ruzhou, a city in Henan Province is a typical local government to play this – now its 15,466-seat stadium, convention center (in the style of Beijing’s Great Hall of the People) and e-commerce mansion are all empty waiting for rents.
When the debts expired and the local government was unable to pay, it raised another round of funding with new public projects, like hospitals. The cycle repeated making the city blacklisted from getting further loans. It then targets the doctors and nurses in hospitals, who were forced to “invest” CNY8,500 to CNY28,000. After this “offer” known to the media, the local government denied it was mandatory to medical staff.
This was only one type of government projects with local government’s default, and dozens of half-built constructions are all around the city, and this 1-million people city is just one of the small local governments within the Communist Party’s control. The total of the hidden debts is more than enough to disrupt the world’s second-largest economy financial system.
#WithChineseCharacteristics #ChinaCrisis #TradeWar
New York Times (11-2019)
https://www.nytimes.com/2019/11/10/business/china-debt-hospitals.html
China local debts creating crisis to its financial system and Communist Party
Debts borrowed by various Chinese cities are sizing more than CNY8 trillion, though Beijing window dresses the total is about CNY2.5 trillion. “Imagine the economy is a ship like the Titanic, local government debts are like cargo containers piling up, already lots enough to break the deck.”
This is largely due to the Chinese officials’ culture – when Beijing stressed athletics, cities were crazy to build sports complex; when technology became a priority, big data and e-commerce centres were constructed instead. Ruzhou, a city in Henan Province is a typical local government to play this – now its 15,466-seat stadium, convention center (in the style of Beijing’s Great Hall of the People) and e-commerce mansion are all empty waiting for rents.
When the debts expired and the local government was unable to pay, it raised another round of funding with new public projects, like hospitals. The cycle repeated making the city blacklisted from getting further loans. It then targets the doctors and nurses in hospitals, who were forced to “invest” CNY8,500 to CNY28,000. After this “offer” known to the media, the local government denied it was mandatory to medical staff.
This was only one type of government projects with local government’s default, and dozens of half-built constructions are all around the city, and this 1-million people city is just one of the small local governments within the Communist Party’s control. The total of the hidden debts is more than enough to disrupt the world’s second-largest economy financial system.
#WithChineseCharacteristics #ChinaCrisis #TradeWar
New York Times (11-2019)
https://www.nytimes.com/2019/11/10/business/china-debt-hospitals.html
NY Times
How Bad Is China’s Debt? A City Hospital Is Asking Nurses for Loans (Published 2019)
The city of Ruzhou spent big, then used its health care workers to raise money, as local governments look for ways to keep the economy going.
China's Economic Crisis in 2019 [ 2 of 3 ]
Kweichow Moutai plans to donate 57bn Yuan to Kweichow Government
(Editor's Note: Many financial analysts and political commentators believed the move is to ease local government pressure on Debt. )
Kweichow Moutai announced that its controlling shareholder - Moutai Group plans to transfer 50.24 million shares to stated-owned company Guizhou State Capital Mgmt. Co. Ltd as a donation. The value of these shares are estimated to be worth 56.96 billion Yuan (approx. 8.15 billion USD).
According to public records, Guizhou State Capital Management, a wholly-owned subsidiary of Guizhou Financial Holdings Group which is in turn governed by Guizhou Provincial Finance Bureau.
#WithChineseCharacteristics #ChinaCrisis #TradeWar
Source: China Knowledge (26Dec)
https://bit.ly/39CJUVY
Bloomberg also reported that China is facing over 120bn Yuan of debt default. For further reading please click here
Kweichow Moutai plans to donate 57bn Yuan to Kweichow Government
(Editor's Note: Many financial analysts and political commentators believed the move is to ease local government pressure on Debt. )
Kweichow Moutai announced that its controlling shareholder - Moutai Group plans to transfer 50.24 million shares to stated-owned company Guizhou State Capital Mgmt. Co. Ltd as a donation. The value of these shares are estimated to be worth 56.96 billion Yuan (approx. 8.15 billion USD).
According to public records, Guizhou State Capital Management, a wholly-owned subsidiary of Guizhou Financial Holdings Group which is in turn governed by Guizhou Provincial Finance Bureau.
#WithChineseCharacteristics #ChinaCrisis #TradeWar
Source: China Knowledge (26Dec)
https://bit.ly/39CJUVY
Bloomberg also reported that China is facing over 120bn Yuan of debt default. For further reading please click here
Bloomberg.com
China’s $17 Billion Default Wave Is About to Break a Record
China is hurtling toward another record year of onshore bond defaults, testing the government’s ability to keep financial markets stable as the economy slows and companies struggle to cope with unprecedented levels of debt.
China's Economy Crisis in 2019 [ 3 of 3 ]
26 measures to stabilize employment announced by Li Keqiang
Lay-off notice period to be 30 days
As China’s economy is taking a downturn, it may face severe economic turmoil in 2020. China’s Premier Li Keqiang signed and issued an administrative document to secure job market. Employment stabilization was featured prominently to prevent waves of large scale lay-offs, which may trigger social unrest. Companies are instructed to notify their employees 30 days in advance with severance pay. “The major concern of Beijing is the social unrest resulting from large scale lay-offs,” analysts said.
Last week, Li emphasized the measures that will be taken “to maintain 6% GDP“ under the pressure of a downward economy next year. On 24 Dec, the China State Council released a document entitled "Suggestions For a Steady and Stabilized Job Market". The "suggestions " covered job opportunities expansion in 7 areas with 26 measures in total. The guideline emphasized the need to stabilize the job market by regulating redundancy. Companies have to not only provide and implement “employee placement plans”, but also inform unions and employees 30 days in advance, provide severance pay, salary, social insurance and other related costs.
Within the “suggestions”, it was also mentioned that any social unrest triggered by a considerable scale of redundancy has to be handled forthwith. Conflict in the society has to be avoided. “Large-scale unemployment” was mentioned 5 times in the document showing the probability of a rise in unemployment is increasing.
The registered unemployment rate in China was between 4.0% - 4.6% reported officially in Oct. The registered urban unemployment rate in Q3 was 3.61%, down 0.21% from the same time of last year. However, the registered non-agricultural unemployment rate in the report only covers those people who have registered as unemployed in job agencies. Statistics are not synonymous with reality. The urban registered unemployment rate of Sep 2019 projection was 5.2% through sampling surveys last year.
Director of the Economic Forecast Department of the State Information Center, the Chief Economist Zhu Baoliang said Chinese GDP growth may slip to 5.8% in 2020. It shows a gap between the key target (to maintain 6% GDP) mentioned in the guidelines of employment stabilization. People are concerned that political instability will occur as a result of Chinese GDP growth dipping below 6%, which may not be enough to maintain job creation. 1% of GDP growth rate is estimated to create 190 to 200 million jobs.
#TradeWar #ChinaCrisis
Apple Daily (27Dec)
https://hk.appledaily.com/china/20191227/XRHUW3KEZCQPM67MRNVRY26LL4/
26 measures to stabilize employment announced by Li Keqiang
Lay-off notice period to be 30 days
As China’s economy is taking a downturn, it may face severe economic turmoil in 2020. China’s Premier Li Keqiang signed and issued an administrative document to secure job market. Employment stabilization was featured prominently to prevent waves of large scale lay-offs, which may trigger social unrest. Companies are instructed to notify their employees 30 days in advance with severance pay. “The major concern of Beijing is the social unrest resulting from large scale lay-offs,” analysts said.
Last week, Li emphasized the measures that will be taken “to maintain 6% GDP“ under the pressure of a downward economy next year. On 24 Dec, the China State Council released a document entitled "Suggestions For a Steady and Stabilized Job Market". The "suggestions " covered job opportunities expansion in 7 areas with 26 measures in total. The guideline emphasized the need to stabilize the job market by regulating redundancy. Companies have to not only provide and implement “employee placement plans”, but also inform unions and employees 30 days in advance, provide severance pay, salary, social insurance and other related costs.
Within the “suggestions”, it was also mentioned that any social unrest triggered by a considerable scale of redundancy has to be handled forthwith. Conflict in the society has to be avoided. “Large-scale unemployment” was mentioned 5 times in the document showing the probability of a rise in unemployment is increasing.
The registered unemployment rate in China was between 4.0% - 4.6% reported officially in Oct. The registered urban unemployment rate in Q3 was 3.61%, down 0.21% from the same time of last year. However, the registered non-agricultural unemployment rate in the report only covers those people who have registered as unemployed in job agencies. Statistics are not synonymous with reality. The urban registered unemployment rate of Sep 2019 projection was 5.2% through sampling surveys last year.
Director of the Economic Forecast Department of the State Information Center, the Chief Economist Zhu Baoliang said Chinese GDP growth may slip to 5.8% in 2020. It shows a gap between the key target (to maintain 6% GDP) mentioned in the guidelines of employment stabilization. People are concerned that political instability will occur as a result of Chinese GDP growth dipping below 6%, which may not be enough to maintain job creation. 1% of GDP growth rate is estimated to create 190 to 200 million jobs.
#TradeWar #ChinaCrisis
Apple Daily (27Dec)
https://hk.appledaily.com/china/20191227/XRHUW3KEZCQPM67MRNVRY26LL4/
#OpinionArticle
A Thousand Reasons by Li-Yi
During the signing of the phase one agreement, President Donald Trump talked excitedly for an hour as if celebrating a victory. Liu He, the vice-premier sent to sign it on behalf of China, read aloud President Xi’s letter, “We have a thousand reasons to make China-US relations work and not a single reason to disrupt it.”
Looking back at all the official statements from Chinese media in the last two years, have they not been accusing the US of supporting Hong Kong rioters and Hong Kong independence as well as interfering in the presidential elections in Taiwan? The US passed the Hong Kong Human Rights and Democracy Act, the Uyghur Human Rights Policy Act and Taiwan Allies International Protection and Enhancement Initiative (TAIPEI) Act all against China. The Americans even sold arms and ammunition to Taiwan. Should there not actually be a thousand reasons to destroy China-US relations and not a single reason to make it work? How would the slaves who listened to their Chinese masters and protested against the Hong Kong Human Rights and Democracy Act in front of the Consulate General of the United States interpret Xi’s statement? Would they consider it to be humiliating the nation and forfeiting sovereignty?
Full translation: https://telegra.ph/A-Thousand-Reasons-by-Li-Yi-01-26
Source: Apple Daily
https://hk.appledaily.com/local/20200117/CQPDGQFQ3WKTNIVLXLHMKBCF24/
#TradeWar #LeeYee #LiYi #ChineseCharacteristics
A Thousand Reasons by Li-Yi
During the signing of the phase one agreement, President Donald Trump talked excitedly for an hour as if celebrating a victory. Liu He, the vice-premier sent to sign it on behalf of China, read aloud President Xi’s letter, “We have a thousand reasons to make China-US relations work and not a single reason to disrupt it.”
Looking back at all the official statements from Chinese media in the last two years, have they not been accusing the US of supporting Hong Kong rioters and Hong Kong independence as well as interfering in the presidential elections in Taiwan? The US passed the Hong Kong Human Rights and Democracy Act, the Uyghur Human Rights Policy Act and Taiwan Allies International Protection and Enhancement Initiative (TAIPEI) Act all against China. The Americans even sold arms and ammunition to Taiwan. Should there not actually be a thousand reasons to destroy China-US relations and not a single reason to make it work? How would the slaves who listened to their Chinese masters and protested against the Hong Kong Human Rights and Democracy Act in front of the Consulate General of the United States interpret Xi’s statement? Would they consider it to be humiliating the nation and forfeiting sovereignty?
Full translation: https://telegra.ph/A-Thousand-Reasons-by-Li-Yi-01-26
Source: Apple Daily
https://hk.appledaily.com/local/20200117/CQPDGQFQ3WKTNIVLXLHMKBCF24/
#TradeWar #LeeYee #LiYi #ChineseCharacteristics
Telegraph
A Thousand Reasons by Li-Yi
(17 Jan) The US and China have signed a "phase one" deal to lessen trade war tensions after almost two years of negotiation. General Secretary Xi Jinping was not present for the signing; the officials he sent for the task were not of equal ranking to their…
#Newspaper
Global Times: China may consider to execute the Force Majeure in the trading contract
(6 Feb) Notice of the Customs Tariff Commission of the Ministry of Finance of the People’s Republic of China stated that the tariff imposed on 75 billion of U.S. imported commercial goods would be reduced by half to facilitate health and stable development of the trade between the U.S. and China. And they are working with the U.S on the cancellation all tariff.
“Global Times” released a review article that brand-new coronavirus epidemic resulted in more than 500 death and tens of thousands of infection. China is considering to execute the force majeure in the first phase of the trade agreement between the U.S. and China. A report quoted a mainland China commercial expert said China couldn’t conclude the result of the negotiating with the U.S. on the terms of the force majeure in the first quarter.
Excerpt: Now News
https://news.now.com/mobile/finance/player?newsId=379605
#Economy #ForceMajeure #TradeWar
Global Times: China may consider to execute the Force Majeure in the trading contract
(6 Feb) Notice of the Customs Tariff Commission of the Ministry of Finance of the People’s Republic of China stated that the tariff imposed on 75 billion of U.S. imported commercial goods would be reduced by half to facilitate health and stable development of the trade between the U.S. and China. And they are working with the U.S on the cancellation all tariff.
“Global Times” released a review article that brand-new coronavirus epidemic resulted in more than 500 death and tens of thousands of infection. China is considering to execute the force majeure in the first phase of the trade agreement between the U.S. and China. A report quoted a mainland China commercial expert said China couldn’t conclude the result of the negotiating with the U.S. on the terms of the force majeure in the first quarter.
Excerpt: Now News
https://news.now.com/mobile/finance/player?newsId=379605
#Economy #ForceMajeure #TradeWar
Now 新聞
【關稅減半】環時：中國或正考慮使用貿協中的災難條款
【Now新聞台】內地下周五起將會對總值750億美元的美國貨關稅減半，中方表示希望兩國朝着最終取消全部加徵關稅努力。
#Analysis
One day, Hong Kong will be kicked out from the West for sure
I used to say that - China is fully committed to strengthen her economy to the point where the entire world must also suffer losses when she collapses. Assume today there is an economic recession , or even an economic disaster in China; how big of an impact will this have on the global economy? This is a topic that will be considered by many who are interested in political ecosystem, and it is also one of the reasons why the other countries are not in sync with the US as Trump wages an all-out trade war.
'You can bear the consequences and reap the benefits, but the consequences may be too heavy for me."
But as long as the US manages to persuade the majority of countries to overcome the above two points and impose sanctions of the same intensity, China will suffer a massive setback. Whether China will open up or self isolate herself is hard to predict.
For Hongkongers, there is little room of 'self-preservation' regardless of the situation. In the worst-case-scenario, internally the Hong Kong Government will side with the CCP for its survivability through constantly evacuating Hong Kong citizens’ assets and transferring Hong Kong reserves, may even be made to act as the 'white gloves' of China. On the other hand, China will assimilate, banished, and oppressed the people of Hong Kong.
Internationally, due to Hong Kong being considered as 'part of China', she will lose her independent economy and her special status among other countries, and possibly even be sanctioned under this consideration. When the western world deprives Hong Kong of its economic status and special treatment, the foundation of which 'Hong Kong' was built on will be lost.
The reason Hong Kong is what it is today is built on the recognition from the West, but not the protection and blessing of our great motherland. When Hong Kong loses that recognition, we will be of no value to them.
We must prepare ourselves for this inevitable day: the dark days only gets darker. For Hong Kong to turn the tables, a group of people must insist on the sole identity of 'Hongkonger', relinquishing all connections to Greater China. However...
What should we do when even Hongkongers corrupt and let this identity perish? That is another problem.
Source: Polymerhk, (03-10-2018)
http://polymerhk.com/articles/2018/10/03/41373/
#HongKong #Ecomony #CCP #TradeWar
One day, Hong Kong will be kicked out from the West for sure
I used to say that - China is fully committed to strengthen her economy to the point where the entire world must also suffer losses when she collapses. Assume today there is an economic recession , or even an economic disaster in China; how big of an impact will this have on the global economy? This is a topic that will be considered by many who are interested in political ecosystem, and it is also one of the reasons why the other countries are not in sync with the US as Trump wages an all-out trade war.
'You can bear the consequences and reap the benefits, but the consequences may be too heavy for me."
But as long as the US manages to persuade the majority of countries to overcome the above two points and impose sanctions of the same intensity, China will suffer a massive setback. Whether China will open up or self isolate herself is hard to predict.
For Hongkongers, there is little room of 'self-preservation' regardless of the situation. In the worst-case-scenario, internally the Hong Kong Government will side with the CCP for its survivability through constantly evacuating Hong Kong citizens’ assets and transferring Hong Kong reserves, may even be made to act as the 'white gloves' of China. On the other hand, China will assimilate, banished, and oppressed the people of Hong Kong.
Internationally, due to Hong Kong being considered as 'part of China', she will lose her independent economy and her special status among other countries, and possibly even be sanctioned under this consideration. When the western world deprives Hong Kong of its economic status and special treatment, the foundation of which 'Hong Kong' was built on will be lost.
The reason Hong Kong is what it is today is built on the recognition from the West, but not the protection and blessing of our great motherland. When Hong Kong loses that recognition, we will be of no value to them.
We must prepare ourselves for this inevitable day: the dark days only gets darker. For Hong Kong to turn the tables, a group of people must insist on the sole identity of 'Hongkonger', relinquishing all connections to Greater China. However...
What should we do when even Hongkongers corrupt and let this identity perish? That is another problem.
Source: Polymerhk, (03-10-2018)
http://polymerhk.com/articles/2018/10/03/41373/
#HongKong #Ecomony #CCP #TradeWar
#Analysis
One day, Hong Kong will be kicked out from the West for sure
I used to say that - China is fully committed to strengthen her economy to the point where the entire world must also suffer losses when she collapses. Assume today there is an economic recession , or even an economic disaster in China; how big of an impact will this have on the global economy? This is a topic that will be considered by many who are interested in political ecosystem, and it is also one of the reasons why the other countries are not in sync with the US as Trump wages an all-out trade war.
'You can bear the consequences and reap the benefits, but the consequences may be too heavy for me."
But as long as the US manages to persuade the majority of countries to overcome the above two points and impose sanctions of the same intensity, China will suffer a massive setback. Whether China will open up or self isolate herself is hard to predict.
For Hongkongers, there is little room of 'self-preservation' regardless of the situation. In the worst-case-scenario, internally the Hong Kong Government will side with the CCP for its survivability through constantly evacuating Hong Kong citizens’ assets and transferring Hong Kong reserves, may even be made to act as the 'white gloves' of China. On the other hand, China will assimilate, banished, and oppressed the people of Hong Kong.
Internationally, due to Hong Kong being considered as 'part of China', she will lose her independent economy and her special status among other countries, and possibly even be sanctioned under this consideration. When the western world deprives Hong Kong of its economic status and special treatment, the foundation of which 'Hong Kong' was built on will be lost.
The reason Hong Kong is what it is today is built on the recognition from the West, but not the protection and blessing of our great motherland. When Hong Kong loses that recognition, we will be of no value to them.
We must prepare ourselves for this inevitable day: the dark days only gets darker. For Hong Kong to turn the tables, a group of people must insist on the sole identity of 'Hongkonger', relinquishing all connections to Greater China. However...
What should we do when even Hongkongers corrupt and let this identity perish? That is another problem.
Source: Polymerhk, (03-10-2018)
http://polymerhk.com/articles/2018/10/03/41373/
Further reading:
U.S. Allows Google Internet Project to Advance Only if Hong Kong Is Cut Out
https://t.me/guardiansofhongkong/19409
#HongKong #Ecomony #CCP #TradeWar
One day, Hong Kong will be kicked out from the West for sure
I used to say that - China is fully committed to strengthen her economy to the point where the entire world must also suffer losses when she collapses. Assume today there is an economic recession , or even an economic disaster in China; how big of an impact will this have on the global economy? This is a topic that will be considered by many who are interested in political ecosystem, and it is also one of the reasons why the other countries are not in sync with the US as Trump wages an all-out trade war.
'You can bear the consequences and reap the benefits, but the consequences may be too heavy for me."
But as long as the US manages to persuade the majority of countries to overcome the above two points and impose sanctions of the same intensity, China will suffer a massive setback. Whether China will open up or self isolate herself is hard to predict.
For Hongkongers, there is little room of 'self-preservation' regardless of the situation. In the worst-case-scenario, internally the Hong Kong Government will side with the CCP for its survivability through constantly evacuating Hong Kong citizens’ assets and transferring Hong Kong reserves, may even be made to act as the 'white gloves' of China. On the other hand, China will assimilate, banished, and oppressed the people of Hong Kong.
Internationally, due to Hong Kong being considered as 'part of China', she will lose her independent economy and her special status among other countries, and possibly even be sanctioned under this consideration. When the western world deprives Hong Kong of its economic status and special treatment, the foundation of which 'Hong Kong' was built on will be lost.
The reason Hong Kong is what it is today is built on the recognition from the West, but not the protection and blessing of our great motherland. When Hong Kong loses that recognition, we will be of no value to them.
We must prepare ourselves for this inevitable day: the dark days only gets darker. For Hong Kong to turn the tables, a group of people must insist on the sole identity of 'Hongkonger', relinquishing all connections to Greater China. However...
What should we do when even Hongkongers corrupt and let this identity perish? That is another problem.
Source: Polymerhk, (03-10-2018)
http://polymerhk.com/articles/2018/10/03/41373/
Further reading:
U.S. Allows Google Internet Project to Advance Only if Hong Kong Is Cut Out
https://t.me/guardiansofhongkong/19409
#HongKong #Ecomony #CCP #TradeWar
China hit Australian barley, beef and now wine
China launched an investigation into allegations that Australia dumped wine, or sold it below the cost of production.
The Australian Government, winemakers and farmers denied any wrongdoing, that the allegations are perplexing as the wine-making process is expensive.
The China market takes up more than one-third of Australia's wine exports by value.
In May, China announced huge tariffs on Australian-grown barley typically used to make beer, and suspended exports from four Australian abattoirs selling beef to China for not meeting labelling requirements.
Australian politicians said that the incidents are not linked to broader political tensions. Yet, Chinese officials said earlier this year that they could boycott Australian exports because of Canberra's push for an independent inquiry into the coronavirus outbreak.
Source: ABC #Aug19
#Wineexports #tariffs #tradewar #Food
https://www.abc.net.au/news/2020-08-19/china-eyes-australian-wine-export-in-latest-trade-move/12571672
China launched an investigation into allegations that Australia dumped wine, or sold it below the cost of production.
The Australian Government, winemakers and farmers denied any wrongdoing, that the allegations are perplexing as the wine-making process is expensive.
The China market takes up more than one-third of Australia's wine exports by value.
In May, China announced huge tariffs on Australian-grown barley typically used to make beer, and suspended exports from four Australian abattoirs selling beef to China for not meeting labelling requirements.
Australian politicians said that the incidents are not linked to broader political tensions. Yet, Chinese officials said earlier this year that they could boycott Australian exports because of Canberra's push for an independent inquiry into the coronavirus outbreak.
Source: ABC #Aug19
#Wineexports #tariffs #tradewar #Food
https://www.abc.net.au/news/2020-08-19/china-eyes-australian-wine-export-in-latest-trade-move/12571672
www.abc.net.au
Poisoned chalice: Why China's scrutiny of Australian wine is bad news
While the Australian Government and winemakers deny any wrongdoing in a spat with China over wine prices, there could be more to the latest bump in the rocky relationship with our largest trading partner.
US further tightens export restrictions on Huawei, calls for allies to do the same
As tensions rose between Beijing and Washington, the US Department of Commerce announced further restrictions on Monday (17 August) aimed at cutting China's access to telecommunications resources. It would add 38 Huawei affiliates from 21 countries to its Entity List.
Secretary of State Mike Pompeo released a statement announcing that the US government has enacted several measures to protect national security and the privacy of US citizens. At the same time, 5G infrastructure would be shielded from Beijing's influence. The Department of Commerce has expanded its Foreign Direct Product Rule to bar Huawei from acquiring chips produced with exploited US technology. Pompeo stated that he would not tolerate efforts by the Chinese Communist Party (CCP) to undermine the privacy of US citizens or the intellectual property of its businesses. He claimed that the US would continue restricting exports to Huawei and its blacklisted affiliates. He also urged US allies and [trading] partners to do the same.
Reuters first reported on the news, stating that the new restrictions were aimed at preventing Huawei from obtaining semiconductors without permission. Even foreign firms that make chips using US software and technology were banned. US Commerce Secretary Wilbur Ross told Fox News that since last May, when amendments were made to the Entity List, Huawei had adopted some evasive measures that included purchasing through third parties.
Richard Yu Chengdong, CEO of the Huawei Consumer Business Group, revealed that due to US pressure, Huawei would no longer produce its flagship Kirin chipsets from 16 September. He admitted that although China has made strides in industrial research and development as well as in its market economy, a gap still exists in technology when compared with Europe, the US, Japan and South Korea. Huawei's HiSilicon semiconductor company, for example, possesses considerable research and development capabilities. However, the production of its chips, including its packaging, sourcing raw materials, manufacturing facilities and software continue to rely on cooperation with other businesses, many of which depend on US technology. As the situation unfolds, serious challenges confront its development.
#Huawei #China #US #TradeWar #technology
Source: Stand News #17Aug
As tensions rose between Beijing and Washington, the US Department of Commerce announced further restrictions on Monday (17 August) aimed at cutting China's access to telecommunications resources. It would add 38 Huawei affiliates from 21 countries to its Entity List.
Secretary of State Mike Pompeo released a statement announcing that the US government has enacted several measures to protect national security and the privacy of US citizens. At the same time, 5G infrastructure would be shielded from Beijing's influence. The Department of Commerce has expanded its Foreign Direct Product Rule to bar Huawei from acquiring chips produced with exploited US technology. Pompeo stated that he would not tolerate efforts by the Chinese Communist Party (CCP) to undermine the privacy of US citizens or the intellectual property of its businesses. He claimed that the US would continue restricting exports to Huawei and its blacklisted affiliates. He also urged US allies and [trading] partners to do the same.
Reuters first reported on the news, stating that the new restrictions were aimed at preventing Huawei from obtaining semiconductors without permission. Even foreign firms that make chips using US software and technology were banned. US Commerce Secretary Wilbur Ross told Fox News that since last May, when amendments were made to the Entity List, Huawei had adopted some evasive measures that included purchasing through third parties.
Richard Yu Chengdong, CEO of the Huawei Consumer Business Group, revealed that due to US pressure, Huawei would no longer produce its flagship Kirin chipsets from 16 September. He admitted that although China has made strides in industrial research and development as well as in its market economy, a gap still exists in technology when compared with Europe, the US, Japan and South Korea. Huawei's HiSilicon semiconductor company, for example, possesses considerable research and development capabilities. However, the production of its chips, including its packaging, sourcing raw materials, manufacturing facilities and software continue to rely on cooperation with other businesses, many of which depend on US technology. As the situation unfolds, serious challenges confront its development.
#Huawei #China #US #TradeWar #technology
Source: Stand News #17Aug
#TradeWar #Australia #CCP
Beijing is not happy with deal cancellations between Australian and Chinese companies
The $600 million takeover of Australian drinks company Lion by Chinese company Mengniu Dairy has been blocked by Australian Treasurer Josh Frydenberg on national security grounds.
Mengniu Dairy has 25 per cent owned by the Chinese government.
Australia's Foreign Investment Review Board cleared the deal in February 2020 but Frydenberg stepped in to prevent it, as the political tensions and trade war between the two nations escalated.
Chinese state-run news, Global Times, wrote: 'Banning a Chinese company from buying an Australian dairy brand doesn't make much economic sense. It would show that bilateral relations will continue on a downward spiral, with the Australian side willing to risk its global reputation in order to maintain a tough line against China in all aspects.'
Source: Daily Mail #Aug25
https://trib.al/9gaouuZ
#JoshFrydenberg #MengniuDairy #Lion #China #NationalSecurityThreat
Beijing is not happy with deal cancellations between Australian and Chinese companies
The $600 million takeover of Australian drinks company Lion by Chinese company Mengniu Dairy has been blocked by Australian Treasurer Josh Frydenberg on national security grounds.
Mengniu Dairy has 25 per cent owned by the Chinese government.
Australia's Foreign Investment Review Board cleared the deal in February 2020 but Frydenberg stepped in to prevent it, as the political tensions and trade war between the two nations escalated.
Chinese state-run news, Global Times, wrote: 'Banning a Chinese company from buying an Australian dairy brand doesn't make much economic sense. It would show that bilateral relations will continue on a downward spiral, with the Australian side willing to risk its global reputation in order to maintain a tough line against China in all aspects.'
Source: Daily Mail #Aug25
https://trib.al/9gaouuZ
#JoshFrydenberg #MengniuDairy #Lion #China #NationalSecurityThreat
U.S. House of Representatives to propose banning imports of forced labour products from Xinjiang next week
The human rights issue in Xinjiang has recently become a new point of contention between the U.S. and China. On Monday (14 Sept), the U.S. announced that it will ban imports of five goods from Xinjiang, including cotton and tomatoes, for violating the rights of ethnic minorities in the region.
#Xinjiang #HumanRightsAbuse #USChinaRelations #Uyghur #Uighur #TradeWar #Cotton #Tomatoes
Source: Apple Daily #Sep19
https://hk.appledaily.com/international/20200919/UZATUFOPMRCOJO2YJA463CAFDA/
The human rights issue in Xinjiang has recently become a new point of contention between the U.S. and China. On Monday (14 Sept), the U.S. announced that it will ban imports of five goods from Xinjiang, including cotton and tomatoes, for violating the rights of ethnic minorities in the region.
#Xinjiang #HumanRightsAbuse #USChinaRelations #Uyghur #Uighur #TradeWar #Cotton #Tomatoes
Source: Apple Daily #Sep19
https://hk.appledaily.com/international/20200919/UZATUFOPMRCOJO2YJA463CAFDA/