Chinese Economics Thread

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Huawei to launch first HarmonyOS-equipped smartphone amid Android doubts
Source:Global Times Published: 2019/9/8 22:43:39
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Huawei is set to debut the smartphone version of its self-developed operating system (OS) HarmonyOS on its flagship P40 smartphone, which is expected to be launched in March next year, the Chinese tech company told the Global Times on Sunday.

"If we're still not allowed [by the US government] to access Google's Android service, we will consider using our own HarmonyOS. In fact, our OS is ready but we will not use it in the first place because we're still considering relevant decisions and cooperation," Richard Yu Chengdong, head of the company's consumer business, said at a press briefing at the consumer electronics exhibition IFA 2019 in Berlin, Germany. The event opened on Friday and runs until Wednesday.

Regarding whether Huawei might sell its Kirin chipset to other vendors, Yu said that the company is still discussing the matter. "We only produce it for self-use right now, but we're also considering selling the chip to [players in] other industries, such as the Internet of Things."

HarmonyOS is widely regarded as Huawei's plan B to replace Google's Android OS amid the US-led crackdown on China's tech rise. In mid-May, the US Commerce Department put Huawei on a blacklist that could ban Google from supplying Android services to Huawei. Washington gave Huawei a 90-day reprieve and then extended the temporary trade license for another 90 days.

Huawei launched HarmonyOS in August. Along with the launch, it also unveiled its first product to be equipped with HarmonyOS - a new smart TV under its Honor brand. The company said at that time that Huawei can "use its own OS anytime if needed."
 
related to #10439 & #104404
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China’s economy continues to grow
Source:Global Times Published: 2019/9/9 22:38:40
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China's total foreign trade in the first eight months rose by 3.6 percent, according to data released by the General Administration of Customs on Sunday. Calculated in yuan, in August, its exports increased by 2.6 percent while imports dropped by 2.6 percent.

Many Western media regard the data as a sign of a weakening Chinese economy. Clearly, they don't understand China. Although economic data declined, China's economy is, in fact, resilient. The US-launched trade war has not prevented China from advancing.

As the global economy and trade face a downturn and China is in the frontline of a trade war, it's not surprising for China to have unsteady foreign trade. But this doesn't reflect the fundamentals of the Chinese economy.

China's economy is undergoing great structural adjustments, transiting from being investment-driven to innovation-driven and from being foreign trade-led to consumption-led.

Although the trade war has led to short-term chaos in the Chinese and world market chains, China's foreign trade has increased in many ways, particularly in countries along the routes of the China-proposed
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Initiative.

Besides, the trade war has further stimulated China's structural adjustment.

China is continuing infrastructure development and accelerating innovations. Policy support for domestic consumption and willingness to consume are growing stronger. All these provide an impetus to the Chinese economy, which has not been negatively affected by the trade war.

Improving people's lives has become an increasingly apparent axis for all of China's economic activities. The country is quite busy on education, medical care, environmental protection, tourism and transport routes. The trade war can never disrupt Chinese people's increasing demand for a better living and the stronger internal impetus to develop.

In contrast, the US economy is much more monotonous. Its most prominent driving force is technology innovation, which cannot always grow and has limited influence on its economy. When innovation is stagnant, the US economy comes to a halt and grows only by forging bubbles. Finance is the US economy's pillar, with the stock market at the core. Americans are sensitive to slight changes in data, because the bubbles could burst at any time.

Regardless of how the trade war goes, the Chinese economy reflects how the country solves its problems, and the economic growth corresponds to the improving living standards in China. The Chinese economy is growing like a young man who shows huge potential for a clear goal.

Some US elites comforted themselves by claiming that the Chinese economic data was an outcome of the trade war. This is a short-sighted and self-deceiving mentality. Structural adjustments to China's economy is like bone development to a young man. But we cannot see real adjustments in the US. The trade war reflects the country's anxiety and gaffes.

Some American media have even linked a temporary rise in pork prices in China to its macro economy. Fine; just let Americans hallucinate.

Having the world's fastest-developing productivity, China also focuses on high-quality economy with a reliable timetable and road map supported by the Chinese people's demand for a better life rather than the US market.
 

AssassinsMace

Lieutenant General
Cramer speaks with forked tongue.


I guess you lose credibility when you spout out wishful thinking more than the facts. In his line of work, not having credibility tends to be bad for business. When Trump's trade war started he said there were already signs China was dropping to its knees to the US begging for a deal. Then he said the CEOs he talked to support Trump's trade war. I'm sure they do because they would love to go back to the good ole days of the East India Company without a conscience of how they got their money. That's the big joke that the corporate world liked the image of a CEO with a conscience that companies like Facebook and Google were given... until all the evil things both Democrats and Republicans charged them of doing. So we're suppose to believe the CEOs Cramer talked to had sage advice? Cramer takes a direct hit when he gives bad advice. Trump doesn't feel it because he gets four-year job review before he gets fired.
 
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zgx09t

Junior Member
Registered Member
Are Foreign Companies Really Leaving China in Droves?
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(PIIE)

September 10, 2019 5:00 AM
Photo Credit:
REUTERS/Stringer
President Donald Trump, in defending his trade war with China, has yet again let his Twitter fingers get ahead of reality. He
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in late August that “China wants to make a deal so badly. Thousands of companies are leaving because of the Tariffs. They must stem the flow.” This supposed exodus of foreign firms is another element informing his view that China is under increasing economic pressure and thus anxious to accept US terms for a trade agreement. As is the case with Trump’s claim that the US tariffs are
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and increasing its
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, the facts fail to support his view.

The trade war has not dampened FDI in China
First, nonfinancial foreign direct investment (FDI) in China is currently running at an annual rate of almost $140 billion, meaning that thousands of new foreign firms are established in China every month. Moreover, as shown in the figure below, since the tariff war broke out in mid-2018 FDI has expanded about 3 percent annually, roughly the same pace as in the previous five years. And the recent data do not reflect massive new investments in chemical plants. China recently approved wholly foreign-owned investments by both ExxonMobil and BASF, each at a record setting $10 billion. Since ground has not yet been broken, these two projects are not yet included in FDI data. Continued large inbound FDI flows are consistent with the expectations of member companies of the US-China Business Council. The Council’s very
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found that 97 percent reported that their operations in China are profitable, and 87 percent said they had not relocated and had no plans to relocate any of their activities. In short, there is little support for the view that large numbers of foreign firms are fleeing China; the opposite seems to be the case.

A handful of firms leaving China do not confirm a broad trend
A few foreign firms recently have left China, but two points need to be kept in mind. First, foreign firms have been moving out of China for decades. Some firms enter with business strategies that fail and then exit. The best example is Occidental Petroleum, which entered China in 1983 with a flawed business strategy and was forced to write off its $250 million investment when it withdrew in 1990. Other foreign firms, especially those exporting the most labor-intensive consumer goods, flourished in China for many years but eventually, as local wages continued to rise, moved production to other countries with much lower wages, for example Bangladesh. Second, China has over a half million foreign-invested firms. Anecdotes of a handful of firms leaving China do not confirm a broad trend.

Many foreign firms in China, especially US firms, are there to produce goods to sell in China
While some firms report that they are considering alternatives to producing in China, it remains to be seen how many ultimately will leave and, of these, how many will relocate to the United States. A couple of factors are at play here. First, a large share of foreign firms in China, especially US firms, are there primarily to produce goods to sell on China’s still rapidly growing domestic market. These firms have no incentive to relocate within Asia, much less to the United States. Caterpillar, for example, makes construction equipment in more than 30 plants in China, almost all sold on the domestic market. Given the high costs of shipping relative to value, it is not feasible to make excavators, front-end loaders, and similar products in the United States and then export them to China. Caterpillar, like other foreign producers of capital goods in China, is very unlikely to relocate any of its production.

Relocating out of China is costly
Second, relocating production out of China is easier said than done. Foreign affiliates operating in China draw on an extensive local supply chain that has been built up over the decades and employ about 25 million Chinese workers, a significant share of which are skilled engineers and managers. Vietnam is commonly mentioned as an alternative, but it is too small to absorb more than a tiny fraction of production by foreign enterprises now operating in China. Its total nonfarm employment is only 44 million, and foreign firms operating there already report shortages of skilled engineers and managers. Relocating a significant number of foreign firms from China to Vietnam would put further upward pressure on its already rising wages, intensify existing skilled labor shortages, and stretch Vietnam’s limited logistical capacity to the breaking point.

Apple contracted with Taiwanese manufacturer Foxconn to produce 220 million iPhones in China in 2018. Think of the difficulties Foxconn would face if Apple asked the firm to relocate from China. Foxconn employs hundreds of thousands of factory workers and tens of thousands of skilled engineers and managers in China and draws on a network of more than 1,500 local suppliers. As Arthur Kroeber, the editor-in-chief of China Economic Quarterly, puts it: “It is fantasy to imagine that such an operation can be quickly replicated in Vietnam or India.”
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Despite US tariffs on China’s exports to the United States, it appears, at least so far, that multinational firms, including those based in the United States, continue to find China an attractive environment for new investment. Thus, Trump’s claim that an exodus of foreign firms will force China to capitulate to US demands to settle the trade war is wishful thinking at best. Moreover, few US multinationals already in China are likely to shift their production back to the United States. The president’s claim that his tariffs on Chinese goods will reverse the decades-long decline in the share of US employment in manufacturing very likely also will go unfulfilled.

lardy2019-09-09.png
 

zgx09t

Junior Member
Registered Member
Maine lobster being rerouted through Canada to China.




The US lobster industry latest to get caught in the US-China trade war

CNBC's Contessa Brewer reports from Kennebunkport, Maine on how the U.S. lobster is the next item to get caught up in the U.S.-China trade war.

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Tam

Brigadier
Registered Member
Cramer speaks with forked tongue.


I guess you lose credibility when you spout out wishful thinking more than the facts. In his line of work, not having credibility tends to be bad for business. When Trump's trade war started he said there were already signs China was dropping to its knees to the US begging for a deal. Then he said the CEOs he talked to support Trump's trade war. I'm sure they do because they would love to go back to the good ole days of the East India Company without a conscience of how they got their money. That's the big joke that the corporate world liked the image of a CEO with a conscience that companies like Facebook and Google were given... until all the evil things both Democrats and Republicans charged them of doing. So we're suppose to believe the CEOs Cramer talked to had sage advice? Cramer takes a direct hit when he gives bad advice. Trump doesn't feel it because he gets four-year job review before he gets fired.


Cramer is not incorrect in saying that China's consumer economy is in great shape (to continue that sentence), and should remain a prime target that US companies should try to export to.

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But you know Cramer in my view likes to flip flop. But its better to flip flop if you know you are in the incorrect path.

Lets go back to some older SCMP articles like this one.

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China wants consumers to drive economic growth, but they are already being squeezed
  • Trade war with United States over Beijing’s technology ambitions is adding to anxiety about job losses and hitting sales of cars, property and consumer goods

Yes, Chinese consumers are getting squeezed. Like this kind of getting squeezed.

 

Gatekeeper

Brigadier
Registered Member
JPMorgan Tells Staff: Make It Clear Taiwan Is Part of China

This is great, I know sooner or later, the capitalist will have to confrom or risk missing out on the world's largest market (PPP)!

But it is still funny how the propaganda is still being play out by the MSM. They are still maintaining the line, that "it is China's pressure" that leads to these companies to conform!

Gee, talk about deliberately distorting the facts! The truth is any companies operating anywhere in the world would have to abide by the rules and law of that country. And if the law says it is unlawful to state the three "self governing areas" as a separate country. Than China reserve the rights to stop companies operating in China if they do not comply.

Let's be clear, if any foreign firms operating in the UK or USA should disrespect their respective laws, they would be on the first plane home.

It is, the rule of law! At the end of the day, if these companies feel strongly about it, they can always leave!

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supercat

Major
The operator of Hong Kong stock exchange has proposed to buy the London Stock Exchange.

Hong Kong exchange proposes to buy LSE for £32bn
Move comes at critical time for industry as operators make inroads into data supply

Hong Kong Exchanges and Clearing has made a £32bn bid to buy the London Stock Exchange Group, in a move that threatens to upend the UK operator’s own blockbuster takeover and comes at a time of political turmoil in Hong Kong.

The operator of the Hong Kong exchange stunned investors with its proposal, which values LSE shares at £83.61 and is designed at “bringing together the largest and most significant financial centres in Asia and Europe”, it said in a statement on Wednesday.

The bid comes at a critical juncture for the global exchange industry as well as for Hong Kong and the UK politically. Exchange operators are increasingly shifting away from the bread and butter of trading into the business of supplying and monetising the data that is at the heart of markets. In late July, the LSE agreed to buy the data and trading group Refinitiv for $27bn in an effort to take on global heavyweights such as Intercontinental Exchange.

HKEX, which counts the Hong Kong government as its largest shareholder, is offering £20.45 in cash and 2.495 newly issued HKEX shares for each LSE share. LSE shares, which have already had a blistering run this year, jumped as high as 16 per cent before settling down to £72.14, up 6 per cent on the day.

Analysts cautioned that the political opposition that had historically derailed tie-ups between national exchanges was likely to be particularly acute in this case.

A deal would see “a Chinese company acquire the primary equity markets of both the UK and Italy, as well as key infrastructure for European debt markets”, noted analysts at Berenberg. “We believe this transaction would face elevated political risks as a result.”

Andrea Leadsom, the UK business secretary, told Bloomberg TV that the UK would “look very carefully at anything that had security implications for the UK”.

The UK Treasury and the business department declined to comment.

Setting out the strategic rationale for the deal, the HKEX said it would allow the LSE to apply its ability to monetise market data in China and give London a greater chance to benefit as more securities are sold in renminbi outside mainland China. The deal would also give the Hong Kong group control of clearing house LCH.

One top 10 LSE shareholder said HKEX was “trying to diversify away from their Chinese exposure, which is why they are bidding now and not nine months ago”.

“Shareholders won’t be rushed to make a decision as we like the Refinitiv deal,” the shareholder added. “If this is an opening gambit by HKEX and they go 10 per cent higher, then it will be a case of what might happen in the short term to the LSE share price versus a five-year view on where the share price can go on a successful Refinitiv integration.”

The LSE, which is run by former Goldman Sachs banker David Schwimmer, said in a statement that the proposal was “preliminary and highly conditional”, but would consider it and make a further announcement.

The offer comes as the Hong Kong government grapples with an unprecedented political crisis that has triggered weeks of mass protests over the autonomy the former British colony will be able to maintain from Beijing. In the UK, voters are facing the prospect of a general election as Brexit continues to convulse the country.

If the bid proves successful, it would be by far the largest in HKEX’s history, but not the first time it had acquired a major London financial institution. In 2012, it paid £1.4bn for the London Metal Exchange.

“Bringing HKEX and the London Stock Exchange together will redefine global capital markets for decades to come,” said Charles Li, chief executive of HKEX. “Both businesses have great brands, financial strength and proven growth track records.”

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now I read
Apple unveils iPhone 11, showing growing awareness of competition from Huawei: analysts
Source:Global Times Published: 2019/9/11 21:33:59
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Apple unveiled its new iPhone 11 on Tuesday in California, featuring an A13 Bionic chipset which Apple compared to Huawei's Kirin 980 in performance, and analysts said the comparison reflects the US tech giant's awareness of a growing existential crisis.

The iPhone 11 has six colors, an extra camera, and a 12-MP front camera with a wider sensor for better selfies, according to media reports. The new smartphone has the A13 Bionic chip, which Apple claimed is the fastest CPU and GPU ever in a smartphone, surpassing Samsung's Galaxy S10+, which uses Qualcomm's Snapdragon 855, and Huawei's P30 Pro, which uses the Kirin 980.

The topic with the hashtag of "Apple compares itself with Huawei" has become one of the most viewed on China's Twitter-like Weibo platform on Wednesday. The comparison reflects Apple's growing crisis awareness, industry observers said, as Huawei is now a strong rival, and some Chinese consumers have shown dwindling interest in Apple's products amid the deepening China-US trade war.

"It's unusual to see Apple directly compare its chipset to Huawei's, showing that the US tech giant cares a lot about the Chinese market," James Yan, Beijing-based research director at Counterpoint, told the Global Times.

As Chinese smartphone users pay more attention to chipset performance, Apple needed to say that its core CPU and GPU are stronger than Huawei's, because Apple has been facing tremendous pressure in the Chinese market lately, Yan noted.

Apple shipped 36 million iPhones in the second quarter of 2019, representing a 13 percent drop year-on-year, according to a report by research firm Canalys.

It was Apple's third consecutive quarter of shipment declines, and the Chinese mainland ranked as the second-largest market for the US tech giant's sales in terms of iPhone shipments in the first half of 2019, the report said.

"Before, it was Huawei comparing its core technologies with Apple's; now it's the other way around," Fang Jing, an industry analyst at China Merchants Securities, told the Global Times.

Apple has felt pressure from Huawei not only in the Chinese market but also in Europe. But for the trade spat launched by the US, the Chinese tech firm would have won a bigger stake in smartphone markets overseas, Fang said.

Apple did not come up with a new 5G smartphone product this year, which will affect its sales, Fang predicted.

About 682,000 online users participated in a survey launched on Weibo on Wednesday, and about 70 percent of the respondents said that they would not consider buying a new iPhone as of press time on Wednesday.

A widely circulated photo also showed a detailed comparison between the new iPhones and Huawei's products, ranging from core chipset and battery life to the camera.

"We are not afraid of the comparison, as competition will lead to progress… we are afraid of malicious rivalry," an online user said.
 
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