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SCHWEIZER
BOTSCHAFT IN BEIJING
EMBASSY OF SWITZERLAND IN BEIJING
AMBASSADE DE SUISSE EN CHINE |
Der wöchentliche
Presserückblick der Schweizer Botschaft in der VR China
The Weekly Press Review of the Swiss Embassy in the People's Republic
of China
La revue de presse hebdomadaire de l'Ambassade de Suisse en RP
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DPRK
Mongolia
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| Foreign Policy |
Titre Australia's 5G ban on China's Huawei, ZTE: will others make same call? (SCMP)
2018-09-07
The splash from Australia's decision to ban Huawei Technologies Company and ZTE Corporation from its 5G roll-out continues to ripple out to other Asian nations, posing a risk to Chinese companies' grip on a region poised to be at the front line of the much-anticipated next generation of wireless networks. Citing national security concerns, Australia last month prohibited Huawei and ZTE from taking part in the development of the country's fifth-generation mobile infrastructure, following the United States and Britain in deeming the two Chinese firms as national security risks. The move made waves in the region; Japan is considering whether to beef up regulations to prevent espionage through foreign-made telecommunications gear, while India is said to be "cautious" over Huawei's role in the country's telecoms networks. Huawei and ZTE have repeatedly dismissed claims that they provided intelligence to Beijing. The next generation of mobile networks is said to be 10 times faster than the speed of the existing 4G network. While mobile operators in the West and rich Asian nations can afford to look past China-based technology companies to procure such telecoms technology, analysts say many cost-conscious carriers in emerging Asian markets cannot adopt a similar stance if they want to provide 5G connections at affordable prices in the future. In Japan, for example, Huawei only accounted for 9 per cent of the country's telecoms equipment market last year, as opposed to the 60 per cent share Huawei and ZTE have of the Indian market. Huawei and ZTE are also already deeply involved in existing telecoms infrastructure in key Asian markets such as China and India, as well as in Australia and its allies in the Pacific Islands. Analysts say carriers in emerging Asian markets cannot afford to avoid cheaper Chinese telecoms equipment during their 5G rollout. Photo: Xinhua "Huawei and ZTE, especially Huawei, are important stakeholders in terms of telecoms infrastructure. It is very difficult for any country – especially markets where there is cutthroat competition and operators are struggling on financials – to ignore them and go with tier-1 vendors like Nokia and Ericsson only," says Faisal Kawoosa, founder and co-partner at New Delhi-based technology research and consulting firm techARC. "Typically, operators in high-paying markets go with tier-1 vendors and in [low-paying] markets they go with the likes of Huawei and ZTE, which give them better [returns on investment], justifying the business case … the same will be the case with 5G." In June, Australia convinced the Solomon Islands to drop a telecoms contract with Huawei after Canberra promised it would fund the country's undersea communications network instead – but analysts do not expect the other cash-strapped nations in the region to replicate the decision. "I think it is unlikely that Pacific Islands governments will follow suit … they don't necessarily have good alternative options to Huawei. In Papua New Guinea, for example, Huawei's work on their national broadband network is being paid for by a loan from China's Exim Bank," says Danielle Cave, senior analyst at the Australian Strategic Policy Institute's International Cyber Policy Centre. "I do think countries in the Pacific Islands will be closely monitoring the debates and decisions being made by Australia, Britain, Canada, the US, Japan, and others." Advanced telecoms markets such as Japan and South Korea also have the resources to deploy 5G via local firms, such as Japan's NEC and Fujitsu and tech behemoth Samsung in South Korea, while smaller markets such as Australia typically rely on global vendors to provide mobile technology. Huawei was a major supplier to Australian carriers Optus and Vodafone, but has never been a significant supplier to Telstra, the country's largest telecoms firm that offered the 5G tenders from which Huawei and ZTE were banned. Removing ZTE and Huawei from the 5G equation may see the cost of building such a network in Australia rise by at least 30 per cent, analysts say. Photo: Reuters "China will be the source of a lot of 21st century technology, and Australia cannot afford to cut itself off from these supply chains," says David Kennedy, Australian telecoms analyst at research and consultancy firm Ovum. "Exactly how to exploit Chinese technology while satisfying security concerns is an issue that will take time to resolve." Asian nations considering a ban against Huawei and ZTE are also advised to think about the knock-on effects for telecoms subscribers. Now the two firms are out of the picture, the cost of building a 5G network in Australia is expected to be at least 30 per cent higher, as operators will have to purchase more expensive equipment from European vendors, analysts say. This extra cost is likely to be passed on to consumers. "Removing Huawei and ZTE from the market will eliminate the most cost-effective providers in the market, and reduce competitive pressure on the other vendors. The cost of rolling out 5G will therefore rise," Kennedy says. In the long run, the ban may also affect Huawei's premium handset business in Australia, where most customers purchase high-end smartphones, or those priced above US$500, analysts say. "[In Australia], Huawei has been focusing a lot on increasing awareness of its brand, building on its brand equity to drive the premium handset market, and so [its ban from] providing and being actively involved in 5G technology could have a negative effect on their brand as a whole," says Tamsin Timpson, a New South Wales-based strategic insight director at data tracker Kantar Worldpanel. A 5G simulator at the 2018 Consumer Electronics Show in Las Vegas caters to massive interest in the upcoming technology. Photo: Bloomberg Critics of the ban say Canberra was being discriminative by turning a blind eye to other multinational telecoms companies such as Nokia and Ericsson which also manufacture in China through majority Chinese-owned subsidiaries. "The Australian government should invest in an Australian telecommunications security assurance capability to reduce the risk associated with inadvertent, criminal or foreign intervention in the telecommunications networks," says Mark Gregory, associate professor in network engineering at RMIT University in Melbourne. For telecoms equipment vendors, winning a bid to develop early infrastructure in one of the first countries to launch 5G could translate to big 5G sales in other markets, including in emerging markets where the cost of telecoms is typically lower than in developed markets, analysts say. India, for example, is a key market for global vendors, although 5G in the country is for now only a concept and a plan. "[India] is not only a key market but one of the most happening markets. Look worldwide, where on earth will you see 2G, 3G, 4G and [soon] 5G running in parallel?" techARC's Kawasoo says. "The magnitude of the Indian market makes it challenging to replace an existing technology. Hence, both [mobile and fixed broadband lines] remain in the market, which is a blessing for the equipment vendors, though operators may not like such complexities." In Asia, Japan and South Korea are racing to be the first nation in the world to fully roll out 5G. KT, South Korea's state-owned telecom giant, showcased what 5G connections could do during this year's Winter Olympics in Pyeongchang by broadcasting in virtual reality as well as uber hi-def video. Developing early infrastructure in one of the first countries to launch 5G could translate to big 5G sales in other markets, including in emerging markets. Photo: Reuters Meanwhile, carriers in Japan, which aims to launch 5G ahead of the 2020 Tokyo Olympics, have held trials to deliver stable 5G connections in urban areas using devices provided by domestic and global vendors such as NEC, Fujitsu, and Huawei. In March, NTT DoCoMo teamed up with Huawei to launch a 5G connections test in Tokyo, a follow-up to their December trial in the city. Being sidelined from the American market in recent years has forced Huawei to switch its focus to Europe and Asia, a strategy that made it the world's largest telecoms equipment maker last year with 28 per cent of the global market. It came in ahead of European rivals Ericsson and Nokia, which had 17 per cent and 23 per cent, respectively, followed by ZTE with 13 per cent, according to research firm IHS Markit. Huawei also became the world's second-largest smartphone maker in the second quarter of this year, overtaking Apple and only trailing long-time leader Samsung. When 5G eventually arrives in India, security concerns in the West over Huawei and ZTE might not influence domestic carriers' choice of telecoms equipment providers. In 2009, the government blocked state-owned telecoms operator Bharat Sanchar Nigam Limited's purchase of gear from Huawei and ZTE, but any purchase restrictions were lifted within a few months. "The fact that they resumed proves the point that these brands are significant for the Indian market. Even a government-owned [public-sector undertaking] couldn't go without them," Kawasoo says. "I don't think they can be just discounted from the market. But, yes, we in India have every right to satisfy ourselves that nothing more than what appears to the eyes is happening." ^ top ^
Why the billions China is pouring into Africa might not be smart money (SCMP)
2018-09-07
Ten years ago, I made a sentimental journey back to my old school in Zimbabwe. We hired a car and a driver in Victoria Falls and headed for the Chobe Game Park in Botswana. At the border I asked the driver, in a self-conscious and faintly patronising manner, about the almost new, barely worn clothes that we had been asked to bring poor Zimbabweans. "They were all OLD!" he said, hardly hiding his disgust at our 100 per cent cotton Marks & Spencer shirts. "But they are better than the Chinese rubbish; they fall apart in the first wash!" Africans are no longer the soft touch they once might have been. They know the cost and the value of everything and are more than able to make highly educated choices. The United States remains the biggest investor in Africa but China is catching up. The China Africa Research Initiative of Johns Hopkins University calculates that China is also a major creditor, having lent US$136 billion to Africa since 2000. Chinese businesses are fast acquiring raw materials, farmland, and influence unencumbered by worries of corruption, waste, and environmental damage. African leaders themselves are keen on low-cost foreign investment in roads, railways and reservoirs. Foreign cash speeds up development and creates jobs. However, the first Chinese firms to arrive made a schoolboy error, bringing in labour from China and provoking anger and resentment among Africans. Suggestions that resources were sold at below-market prices because of cosy agreements with local leaders did not help. Resources extracted with machines generated no added value for Africans. And the lending model may be creating unrepayable levels of debt. Angola alone has been granted loans of US$42.2 billion, about half of the annual gross domestic product of the entire country. Zambia may soon have to restructure its debt, and it is a mixed blessing that the Ethiopian economic miracle is supported by US$4 billion of Chinese money. Worse are accusations of colonialism, though they have been roundly denied by African leaders. They are right. They can see the Chinese coming, and they are in control. China just needs to avoid any sign of patronising Africans – for that is the least redeeming aspect of colonialism. To safeguard its access to cheap resources and extend its influence, China promised Africa US$60 billion in Beijing this week. It extends the pledge of US$60 billion three years ago, but is not a big sum for a continent. The cost of the Belt and Road Initiative is thought to be in the region of US$4 trillion to US$8 trillion. Regime change can mean nationalisation, lost assets, no returns, and a loss of influence. Britain left behind huge wealth when it gave independence to Commonwealth countries, and it had benefited from a century of cheap resources. Malaysia's recent postponement of a US$20 billion Chinese-financed project is a warning sign that investment comes with no guarantees. The US' retreat from supporting many of these countries might be a poisoned chalice rather than an opportunity for China. Influence in Africa will be much harder to achieve than it was in the 19th century. At the end of the day, there must be some financial return on the outlay. Those cheap resources may well come at a much higher price than it seems. Africans can see the Chinese coming and if they play their cards right, they could gain quite a lot from the Chinese. Money buys loyalty only as long as it is flowing. You can't enforce debts when it's another country. Loan contracts can secure deals but contracts cannot preserve them. The investment will have to produce more than influence; it needs financial returns for all concerned to be sustainable. African leaders travelled to Beijing this week to get the money. In future, Chinese bankers restructuring debt may become frequent travellers the other way to get it back. ^ top ^
Why Donald Trump and the trade war aren't enough to stop Chinese students coming to America (SCMP)
2018-09-07
Yifan Zhang, a Shanghai native, recently enjoyed her first taste of American life by spending the day trekking through the woodlands of rural New York state near the liberal arts college where she is starting her degree course. Ziyi Xu, a first-year student at the University of Southern California, joined her new classmates on an outing to watch the Los Angeles Dodgers, while Lyujiang Chen, a freshman at New York University, wondered how long it would take for him to feel at home in the neighbourhood cafes, bars and restaurants that surround his new school in Manhattan. In their different ways, the trio's first impressions of the United States indicate why the country still holds a strong allure for Chinese students despite two straight years of falling international enrolment at US universities. Zhang, Xu and Chen are just three of the hundreds of thousands of students pursuing their own version of the American dream despite the frequently negative portrayals of their home country – especially in the wake of the trade war – and growing concerns over immigration policy. Last year, around 350,000 Chinese students were studying at US colleges and universities, according to the Department for Homeland Security, around a fifth of the total number of Chinese studying overseas. However, the number of new international students coming to America dropped by 20,000, or nearly 7 per cent. That was more than double the decline of 2016, according to the Institute of International Education (IIE), a Washington-based non-profit organisation that surveyed 500 American universities. But Peggy Blumenthal, senior counsellor to the president at IIE, said: "I do not anticipate any significant decline in numbers of Chinese students coming to the US in the near future. "American higher education remains for many the gold standard," Blumenthal said, noting that around half the Chinese students in the US were undergraduates. "Chinese students and parents value the flexibility and teaching style of US colleges and universities." She added that the abundant research opportunities and an institutionalised emphasis on liberal education and critical thinking were also part of the allure. Xu was among those who decided to take advantage of the American system's openness to creative thought. "I felt like the Chinese system doesn't work well for me – it's too cookie cutter," said Xu, who started last month as a freshman at University of Southern California, a leading private research university in the heart of Los Angeles. She said the high number of mandatory courses at Chinese colleges leaves students with little flexibility in what they can study. Xu said she was looking forward to exploring a range of subjects at USC, from economics and data science to comedy and writing. Zhang, a freshman at Skidmore College in Saratoga Springs, New York, agrees. In addition to exploring the area's rural setting, about a three and a half-hour drive north of New York city, she looks forward to the opportunity to dive into liberal arts studies. "I am curious about how this system works," she said. "So the courses I chose in the first semester were all from different subjects, because I haven't decided what to major in yet." While American higher education is known for its exploratory liberal arts model, educational changes elsewhere in the world are cutting into the global flow of students to US schools. An expansion of academic programmes – in particular graduate offerings at Hong Kong and South Korean universities – have siphoned students away from American universities, Blumenthal said. Other factors, such as cuts in domestic funding in Saudi Arabia and Brazil for scholarship programmes that supported students abroad have also contributed to bringing down US international education enrolment figures. While the Trump administration's rhetoric about tightening its immigration controls – and possibly limiting the job opportunities available to graduates of American universities – may have put off students from other countries, this may be less of a deterrent for Chinese students. Blumenthal said: "Students in India and other countries who want to stay on in the US after graduation are watching this issue more closely. "Many Chinese students are currently more interested in jobs back in China, given its strong economy." Xu said she was not too concerned about whether she ended up working in China or the US, although she conceded that tighter visa policies may take that choice out of her hands. "I'd like to work here and I'd like to work in China. In the US I would get a lot of good experience. But in China a lot of industries are booming and I'd get to be closer to my family." Figures from China's Ministry of Education show that a steadily growing proportion of graduates are returning home. In 2017, 480,900 overseas-educated Chinese moved back to China, up 11 per cent from a year earlier. Xu, Zhang and Chen all indicated that they planned to return to China, either directly or after a few extra years of work or postgraduate study. Chen, a native of Jinhua, in the eastern province of Zhejiang, said he wanted to study interactive media art in New York because this kind of educational opportunity would not be an option for him in China. "In China, many [secondary] schools will not give students an arts education. The students will not have the lessons, no one will teach that class." But eventually, he hopes the lessons he learns abroad will benefit his homeland. "I want to do something in the arts, to express my ideas of the world," Chen said. "In the end, what I want to do is help people in China to improve their sense of beauty, to improve the general sense of art in China with my work. "That's what I was thinking when I chose the major. I still have a lot of things to learn, and the US, especially New York, is a really good place to learn about this area," he said. "When I think I'm ready, I probably will come back to China." ^ top ^
How the US' rise as an energy exporter puts it on a dangerous path with China, and the environment (SCMP)
2018-09-07
Energy drives global progress. It determines geopolitics, and a major shift has been under way in crude oil and natural gas drilling and production that is reverberating through energy markets and affecting policies around the world: the United States is turning from a major energy importer to a major exporter. US crude oil production is at an all-time high and will continue to grow. The rise of a new supplier with significant capacity affects the Middle East and Russia, traditional major exporters, as well as China, much of Asia and Europe – major importers. America's energy fortune changed because of the maturation of hydraulic fracturing, or "fracking" – a crude oil and natural gas extraction technology enabling the country's rapid surge in production. The US is already the biggest producer of natural gas in the world, and is projected to become the third-largest exporter in liquefied natural gas by 2020. The US' meteoric energy rise is causing major disruptions in prices. A decade ago, oil prices were close to a high of US$150 per barrel. Exporting countries were doing very well and importing countries had to cough up. Prices have more than halved since then. Another disruption is job opportunities. The American energy sector has been hiring. Moreover, with cheaper energy sources in America, it may make sense for the chemical industry to consider relocating more production there. Besides, natural gas can displace coal in electricity generation and is an environmentally cleaner option. Hong Kong is doing precisely that in local electricity generation – replacing coal with natural gas. In other words, coal producers are also affected. Indeed, there is great demand for LNG all around the world because it is a cleaner fossil fuel. With China a huge market for oil and gas imports, Sino-US relations could be an affair made in heaven. Over the past few years, China became one of the US' major buyers of LNG and was on the way to becoming the biggest importer, probably by 2019. The US trade deficit with China could have been greatly reduced with long-term LNG supply contracts. Yet, earlier in the year, China started to scale back from buying American LNG as the US-China trade war loomed. With US tariffs in place, China's retaliatory tariffs mean buying energy products from the US doesn't make commercial sense. US energy producers are private-sector players and they are ensnared by the trade war like other industry sectors. Many need long-term contracts to continue expanding production. Chinese contracts would help, but that is off the table – at least for now. It would be another blow should the US restrict Chinese investment in oil and gas production. While America's new-found energy abundance can be used as a foreign policy tool to exert clout, other countries are not blind to Washington's motives for maintaining its dominance. Thus, judiciousness is called for from the US. For example, US officials have openly said that moving American energy supplies into Eastern Europe is a powerful way to contain Russia's influence. Nevertheless, challenging Russia there is no small feat since it is a well-entrenched energy supplier. As for supplying China, the US now sees China as a strategic competitor not only in trade but also in technology, military strength, diplomatic influence and political ideology. How the trade war will pan out is unclear. Affected parties are hunkering down for a prolonged punch-up between the two countries. There is another issue: American plenitude in energy presents a temptation to be profligate. For over a decade, concerns over the world reaching "peak oil" – that oil production would start to decline – has driven the auto industry worldwide to make vehicles that are much more fuel efficient. Reducing carbon emissions from fossil fuels to mitigate climate change is also a driver for change. Yet, the US is now proposing to freeze auto fuel economy standards for cars and trucks through to 2026. This is a significant regulatory reversal that would affect its domestic fuel consumption – US officials estimate it would increase domestic oil usage by 500,000 barrels a day – as well as air quality, public health and climate change. The US' proposal does not mention climate change, as the current administration has chosen to ignore the science that the rest of the world has accepted. US authorities have emphasised that America, as "the world's largest oil producer" that is "expected to become a net petroleum exporter in the next decade", should take advantage of its cost-effective oil extraction capability. This sounds like a policy to consume energy because it is there. This attitude will bleed out beyond the auto industry to other areas of the US economy. Beyond environmental concerns, this could well have military and geopolitical effects, as well. American policymakers today believe its role as a world leader will be made that much stronger by being the top dog in energy production. ^ top ^
Beijing protests UK naval incursion (China Daily)
2018-09-07
Beijing expressed strong dissatisfaction on Thursday after a naval vessel from the United Kingdom sailed into territorial waters off China's Xisha Islands, with China urging an immediate cessation of such provocative actions. Reuters reported that HMS Albion, a 22,000-ton amphibious warship, passed near the Xisha Islands on August 31 on its way to Vietnam. "HMS Albion exercised her rights for freedom of navigation in full compliance with international law and norms," Reuters cited a spokesman for the Royal Navy as saying. The warship illegally entered territorial waters without permission from the Chinese government, and China's Navy, a branch of the People's Liberation Army, verified and identified the warship in accordance with law and warned it to leave, Foreign Ministry spokeswoman Hua Chunying said at a daily news briefing. The Xisha Islands are an inherent territory of China, Hua said. "The action taken by the British ship violated Chinese law and relevant international law, and infringed on China's sovereignty," and China strongly protests such moves and has lodged solemn representations, she added. China urged the UK to immediately stop such provocations to avoid harming overall bilateral relations as well as regional peace and stability, she added. Also on Thursday, Ministry of National Defense spokesman Ren Guoqiang said that such an action undermines China's sovereignty and security interests and can easily lead to accidents in the air and on the sea. Ren noted that the situation in the South China Sea is becoming better thanks to the efforts made by China and members of the Association of Southeast Asian Nations. However, some countries outside the region ignore this positive trend, dispatch planes and ships to stir up trouble in the region and disturb peace and security, he said, adding that the Chinese military will take all necessary measures to resolutely defend national security and sovereignty. ^ top ^
What does a chaotic White House mean to China? (China Daily)
2018-09-07
A Wednesday op-ed in the New York Times, and an explosive new book by journalist Bob Woodward, who played a key role in bringing down Richard Nixon, delivered a one-two punch to US President Donald Trump. The essay, written by an anonymous White House senior official claiming to be part of an internal "resistance" to Trump, slammed Trump for his "amorality" and poor leadership. The book, Fear: Trump in the White House, due out September 11, is reportedly based on hundreds of hours of interviews with key players in the Trump administration and describes several occasions of Trump staffers thwarting the president. Both portray a chaotic and dysfunctional White House under Trump's leadership. The two works certainly have dealt a blow to the president, who is leading his Republican Party into the November midterm elections. But it's hard to say to what extent they will influence him. The op-ed and the book don't paint a different picture of the Trump White House in disarray than the one that has already emerged from daily reports of media outlets. Since Trump took office in January 2017, his presidential style and policies have been under endless criticism about which he has showed little concern. He has a crystal-clear objective that he wants to reshape the White House, US policies and America's relationship with the world in major ways even if what he does is strongly opposed. This is what has made Trump different from his predecessors. Whether he will succeed is another matter entirely, but we cannot blindly assert that the chaos in the White House would expand to US domestic disorder and cause the country to decline. We must correctly and accurately view the domestic troubles that Trump is currently experiencing, especially those within his cabinet. It's fair to say the president will continue to encounter various controversies in the future. It is difficult for Trump to unite a mainstream US society that has already been divided. But he will not easily change the policy goals he has identified. Currently China and the US have engaged in a trade war. We cannot pin our hopes of ending the trade war on policy adjustments of Trump. A disappointing reality is that, despite chaos within the Trump administration and partisan division, a certain consensus on containing China has been formed in the US. The US, under the presidency of whomever, will take more means to suppress China. We must prepare for this. ^ top ^
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Chinese consumers' zeal for Apple new gadgets unaffected by trade war (Global Times)
2018-09-07
In spite of the escalating trade war between China and the US, Chinese consumers have a rational attitude toward one of the most iconic American products - Apple gadgets - and they have been waiting impatiently for new iPhone models. Analysts said the US technology giant will continue to lose ground in China, however, unless it comes up with more innovative products. Apple has scheduled an event for September 12 when the company is to release three new gadgets including 5.8-inch and 6.5-inch iPhones, which will both be called iPhone XS, according to industry news site 9to5mac.com on August 30. Several employees at an Apple store in Beijing's Chaoyang district told the Global Times on Thursday that although the pre-ordering date for the new iPhones in China has not been decided yet, many Chinese consumers came to the store in recent days to ask for more information. China was the third-largest market for Apple worldwide in 2017 in terms of net sales, which accounted for 20 percent of its total net sales, the company's annual financial report showed. The company's success can be explained by its compelling user experience and innovative interface. However, it has been losing ground to Chinese competitors such as Huawei, OPPO and vivo. Huawei led the Chinese smartphone market with a 26 percent share in the second quarter of 2018, with OPPO ranked second at 19 percent and vivo third at 18 percent. Apple had 8 percent of the market, ranking it No.5, global industry consultancy Counterpoint Research said in a report released in May. China and the US are locked in a tit-for-tat trade battle, with US President Donald Trump reportedly pushing advisors to impose tariffs on another $200 billion worth of Chinese goods as early as next week. However, unlike the period in which China had disputes with South Korea over the US Terminal High Altitude Area Defense system, which prompted some Chinese consumers to boycott South Korea's Lotte Group, Chinese consumers are showing a rational attitude toward some quality US products. "I won't give up on Apple's products, and it has nothing to do with the trade war. It depends on whether it [Apple] has improved its customer experience," said a Beijing-based consumer surnamed Yang, who works in the internet sector. Among dozens of Chinese consumers ranging from 30 to 50 years old, only few said they would not consider Apple products anymore. "I used three iPhones before but later I switched to Huawei for its powerful photography technology," said a Beijing-based female user surnamed Liu. The so-called "negative backlash" caused by the ongoing trade war isn't having much impact on consumers when they decide whether to buy Apple or not, Wang Xi, an industry analyst at International Data Corp, told the Global Times. "Consumers are price sensitive, which has a direct impact on Apple's sales. Although two tariff lists do not include the smartphone category, currency exchange rates and supply costs of some components will weigh on gadget prices," Wang said. The US company has seen its growth in the Chinese market slow down in recent years, and "without the iPhone X released last year, it would have seen a sharp decline," said Liu Dingding, a Beijing-based independent expert. IPhone models offered little innovation since the release of the iPhone 4 - the biggest leap of its gadgets, Liu told the Global Times Thursday. "Apple's weakening innovation capability led to losses in market share in China, which would be amplified by the trade war," he said. ^ top ^
President Xi to attend 4th Eastern Economic Forum in Russia (Xinhua)
2018-09-07
Chinese President Xi Jinping will attend the fourth Eastern Economic Forum from Sept. 11 to 12 in the city of Vladivostok, Russia, at the invitation of Russian President Vladimir Putin, Foreign Ministry spokesperson Lu Kang said here Friday. ^ top ^
Beijing must prepare counterattack for Washington's effort to restrain high-tech development (Global Times)
2018-09-07
Washington's trade dispute with Beijing doesn't seem to have helped the US stave off its chronic illness of running a trade deficit - at least not yet. The US trade deficit rose to a five-month high in July as exports sank 1 percent from June to $211.08 billion. As for China, its July exports rose 12.2 percent year-on-year despite fresh US tariffs. China's economy seems to show more resilience than that of the US amid escalating trade friction. Why? China's industrial competitiveness may be one reason. In the short term, US consumers can hardly find alternative products to those made in China, so the impact of US tariffs was less than expected. In the first round of Sino-US trade friction, China's strategy has been proved to be effective. On the one hand, China hit back against the US' unilateral moves with tit-for-tat tariffs on a long list of US products; on the other hand, China improved its defensive posture by reinforcing its manufacturing sector, which is the backbone of the economy. The government is working to make China's business environment more appealing to manufacturers and looking at fiscal policies that support upgrading its manufacturing sector. China's huge trade surplus is primarily based on mechanical and electrical products. As long as its manufacturing sector remains competitive, China's exports won't tumble. The country is able to handle the pressure of trade tensions if it sticks to its established strategies. It's possible that the trade dispute will become a long-lasting conflict. In the second round of trade tensions, China is likely to focus more on manufacturing transformation. China's economy is in a critical period in terms of restructuring. Amid escalating trade friction, China has no choice but to pursue a path of independent innovation and overcome the challenges it faces in manufacturing transformation. US protectionist measures won't hurt China, but will serve as an external catalyst for China's industrial upgrading that will make the country a manufacturing superpower. In August, South China's Guangdong Province released a plan aiming to realize 150 billion yuan ($21.8 billion) worth of investments annually in strategic and emerging industries during the 2018-20 period. China has to be prepared to counterattack US efforts to restrain the rise of China's high-technology industries. ^ top ^
Expense deductions introduced to income tax (China Daily)
2018-09-07
As the new threshold of personal income tax, raised from 3,500 to 5,000 yuan per month, is set to take effect on Oct 1, the State Council said on Thursday it will also hurry to set a clear scope and standards for six special expense deductions to ensure the threshold is significantly higher than 5,000 yuan, according to a report by China Business News. The special expense deductions, having been introduced to China's individual income tax system as an amendment to the Personal Income Tax Law, was passed by China's top legislature on August 31. They include children's education, continuing education, treatment for serious diseases, housing loan interest and rent, as well as caring for the elderly. The whole amendment will come into force on Jan 1. The State Council said the scope and standard of the special expense deduction will be implemented on Jan 1 after a period of public consultation, and will be adjusted dynamically with the development of the economy and the improvement of living standard. Chen Lihua, vice finance minister, said at a news conference on Aug 31 the government has preliminarily considered setting a certain quota or standard for the special expense deduction in order to ensure taxpayers pay tax conveniently, relevant expenses get deducted reasonably and the policy is fair, so the taxpayers can enjoy the benefits of tax reduction, the report said. To promote the smooth implementation of the special expense deduction next year and by drawing from the experience of other countries, at the current stage it is possible for specific deduction standards or quotas to adopt a "double track" of fixed amounts and fixed proportion limits, Zhu Jinhua, a partner in international assignment services at PwC China, said. Zhu said the fixed amount could apply to deductions for continuing education and caring for the elderly, while fixed proportion limits could apply to the deduction items that may differ due to different income levels and consumption structures of taxpayers, such as children's education, treatment for serious diseases and housing loan interest and rent. ^ top ^
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Four more 'hidden' spaces in Hong Kong express rail terminus revealed by officials amid controversy over secret underground level (SCMP)
2018-09-07
Four previously undisclosed areas covering 27,300 square metres at Hong Kong's new high-speed rail terminus were revealed by the government late on Thursday night, days after media reports on a "secret" underground level sparked concern in the city. The hidden floor, coded B5 in the design plan, is located under the B4 Platform Level of the West Kowloon terminus. To allay fears that other such spaces exist in the station and might be controlled by mainland authorities, transport authorities issued a statement on the remaining "back of house" locations and what they contained. These levels contain offices, ventilation and air-conditioning facilities, refuse collection and switch rooms, dining rooms and other such amenities, officials said. The concern over such spaces stems from an ongoing controversy over the Guangzhou-Shenzhen-Hong Kong Express Rail Link's "co-location" immigration arrangement. Since Tuesday, a 105,000 square metre port area inside the station has been subject to the complete jurisdiction of the mainland authorities except for six "reserved issues", including maintenance of the terminus and safety of the 26km local section of the link. Reports on the "secret" B5 level prompted Chief Executive Carrie Lam Cheng Yuet-ngor on Tuesday morning to order the relevant government departments and railway operator MTR Corporation to promptly respond to any public concerns over the issue to avoid unnecessary worry. Lam also dismissed the idea that the level was "mysterious". "If you've stayed at hotels before, you would know hotels have [facilities] called 'back of house', where maintenance is carried out," she said. On Tuesday night, the Transport and Housing Authority issued a statement confirming the existence of the B5 level, where there are plant rooms for air conditioning, drainage and sewage systems. "It is actually a back of house service corridor," the bureau said in its statement. "This is not an area for passenger use and is not within the mainland port area." "There is therefore no question of covering up the matter," the statement continued. At about midnight on Thursday, the bureau further revealed that other than B5, there were four more back of house areas in the terminus above each of the underground levels from B1 to B4. In the 14 public documents and reports on the high-speed rail submitted by the government to the Legislative Council's railways subcommittee over the past two years, the B5 level was mentioned only once without elaboration in a quarterly report in September 2016. The other four levels were never mentioned. The five interlayers add up to a total of 30,400 square metres, or about 28 per cent of the area of a typical floor in the terminus, according to the bureau. On these levels, there are offices for railway operators, ventilation and air-conditioning facilities, refuse collection and switch rooms, public dining areas and passageways connecting to Lin Cheung Road and the subway. The areas are for use during rescue and evacuation only and are not subject to the mainland authorities' management or jurisdiction, the bureau said. "All exits and entrances to back of house areas, including relevant passageways, doors and lifts that connect with the public areas or the mainland port area in the [West Kowloon terminus] are locked by security systems," the statement said. The West Kowloon terminus will officially open in 16 days, with the first rides on the HK$84.4 billion (US$10.7 billion) high-speed rail link commissioned for September 23. Yick Chi-ming, chairman of the Legco's Panel on Transport, said the committee sent a letter to the bureau on Tuesday requesting a meeting with officials before the terminus and the rail link are open for service. "When the officials come to the panel again, I hope they will keep nothing up their sleeves any more," said Yick, who is also a member of the Legco railways subcommittee. "How the government has been handling the case is not ideal," he added. "All infrastructures have such back of house areas. There is nothing secretive. The bureau should disclose all the details as soon as possible." Tanya Chan Suk-chong, Yick's colleague on both the panel and the subcommittee, said she was highly doubtful of the MTR Corporation's capability to efficiently manage the back of house areas and the doors connecting them with the mainland port area. "The MTR Corporation has no experience in managing border lines at checkpoints," Chan said. "There are hundreds of doors between the Hong Kong and mainland port areas, including those connecting the B5 and B4 levels. How can the MTR Corporation make sure that all these doors will be watched closely around the clock?" Chan said the way the government had disclosed the new information was "contemptible". "It didn't learn a lesson after the B5 level was reported on Monday midnight. And it was pretending to come clean on its own accord last night after local media followed up on the level," she said. According to the transport authorities' disclosures this week, the five back of house areas are: The 5,600 square metre B1M level above the B1 Ticketing Hall on the first underground floor. There are ventilation shafts, railway operator offices, air-conditioning plant rooms and dining areas for the public. The 10,300 square metre B2H level above the B2 Arrival Level. There are ventilation shafts and a refuse collection room. The 7,200 square metre B3M/B3H level above the B3 Departure Level. There are passageways connecting Lin Cheung Road and the subway, as well as ventilation shafts. The 4,200 square metre B4M level above the B4 Platform Level. There are railway operator offices, switch rooms, air-conditioning plant rooms, refuse collection and equipment maintenance rooms. The 3,100 square metre B5 level beneath the B4 Platform Level. There are plant rooms for air-conditioning, drainage and sewage systems. ^ top ^
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| Taiwan |
Taiwanese stranded in Japan by Typhoon Jebi 'given evacuation help only if they identified as Chinese' (SCMP)
2018-09-07
Taiwanese tourists stranded in Japan by Typhoon Jebi were asked to state whether they identify as Chinese before being allowed evacuation help through China's embassy, state media reported, in an apparent attempt to reinforce Beijing's claim over Taiwan. Over 3,000 tourists – including around 750 Chinese and 500 Taiwanese – have been stranded since Tuesday at Kansai International Airport, where all flights in the coming days have been cancelled after it was forced to close due to flooding. While Japan has arranged bus and boat evacuations of tourists regardless of nationality, the Chinese embassy has provided buses exclusively for Chinese tourists, according to Chinese state tabloid Global Times on Thursday morning. The newspaper seized on Chinese tourists' claims that they told tourists from Taiwan to board buses only if they identified as Chinese. Beijing regards the self-ruled island as a breakaway province to be reunited with the mainland, by force if necessary. "A few Taiwanese asked if they could board the bus provided by the Chinese embassy for evacuation," a Chinese witness in the airport was quoted as saying. "[The Chinese people] all said, 'Sure, if you identify yourself as Chinese, follow your home country.'" Taipei and Beijing issue separate passports for their citizens and have separate consular offices, having been ruled by different governments for decades. Over the past year, Beijing has stepped up pressure on foreign airlines and companies, as well as countries around the world, to refer to Taiwan as part of China. Another Chinese witness told Chinese state news outlet Guancha.cn: "After asking, some Taiwanese tourists queued for the buses like the Chinese tourists." A staff member at the Taiwanese trade office in Osaka told the South China Morning Post that Taipei has not been providing transport for Taiwanese people. "What we can do now is advise them to transit to other airports or railway stations so they can leave as soon as possible," said the employee. "But we are not aware that any Taiwanese boarded the Chinese bus." At least 11 people are dead and more than 600 others injured following the most powerful typhoon to hit Japan in 25 years. Kansai is the country's third-largest airport and a major hub for western Japan, which has been particularly badly hit by the storm. ^ top ^
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| Economy |
Talk of consumption downgrading in China inaccurate: MOFCOM (Global Times)
2018-09-07
The Chinese Ministry of Commerce (MOFCOM) on Thursday weighed in on the increasingly popular topic of domestic consumers allegedly cutting back on spending, saying that consumption is not downgrading and is actually still upgrading. "Regarding the talk of a consumption downgrade, I think it is inaccurate," MOFCOM spokesperson Gao Feng told a press briefing, arguing that recently improving sales of some mass market products indeed reflected a new trend in the country's consumption upgrade. As many recent indicators have pointed to downward pressure in the world's second-largest economy, some media reports have claimed that China's middle class - formerly big spenders at home and overseas as they chased high-end products - were economizing by buying cheaper products. But Gao said that better sales of cheaper goods are not a consumption downgrade but instead a sign that consumers can buy more affordable products with better quality and reputation. He added that the fast development of e-commerce has expanded sales channels for shoppers in small towns and rural areas. Furthermore, Gao said, Chinese consumers' increased participation in the sharing economy, involving such items as bicycles and cars, also shows an upgrade in consumption attitudes, where "consumers have become more rational and environmentally friendly." Gao said that the MOFCOM will take measures in areas such as expanding services consumption, upgrading sales channels and creating a better environment to ensure steady growth and persistent upgrading in the consumer market. ^ top ^
Response pledged if US levies new tariffs (China Daily)
2018-09-07
China will be forced to take necessary countermeasures if the United States insists on imposing new tariffs on $200 billion worth of Chinese goods despite strong opposition from both countries, the Ministry of Commerce said on Thursday. China will closely monitor the impact caused by the tariffs and help domestic and foreign companies operating in China to overcome difficulties. China has confidence that it can maintain steady economic growth, said Gao Feng, a spokesman for the ministry. US President Donald Trump's administration has threatened 25 percent tariffs on the Chinese imports, including seafood, furniture, lighting products, tires, chemicals and plastics. The US plan could take effect as soon as Friday, when a public comment period on the proposal ends. The two sides are still maintaining working communications after bilateral talks at the vice-ministerial level took place late last month in Washington, and any pressure the US applies will be ineffective in its dealings with China, Gao said. The trade friction has been heating up for several months, and targeted goods have also expanded to automobiles. Wei Jianguo, former vice-minister of commerce, said the US is handling relations with China in an extremely high-pressure and irrational manner. "In contrast, China is much calmer and values protecting domestic companies and minimizing their losses. Recent data shows that China's foreign trade has stabilized and the growth momentum has been consolidated." Wang Huiyao, director of the Center for China and Globalization, a Beijing-based think tank, said that even though it is still unclear whether the new tariffs would be set at 10 percent or 25 percent, it would be highly disruptive to the global supply chain and would affect many countries. "Each side wishes the other side would back down first, but if nobody does, losses will continue." The US government already imposed 25 percent tariffs on $34 billion of Chinese imports in July and another $16 billion last month. Beijing responded in kind.
Chen Wenling, chief economist at the China Center for International Economic Exchanges, said China still needs to make long-term preparations for the Sino-US trade spat, which may require many years to resolve. China must diversify its exports, focus on the research and development of core technologies, such as semiconductors. ^ top ^
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| DPRK |
China's top political advisor attends DPRK 70th anniversary reception (Xinhua)
2018-09-07
China's top political advisor Wang Yang on Thursday said China stands ready to work with the Democratic People's Republic of Korea (DPRK) to safeguard, consolidate, and develop bilateral ties. Wang, a member of the Standing Committee of the Political Bureau of the Central Committee of the Communist Party of China (CPC) and chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), made the remarks at the reception celebrating the 70th anniversary of the founding of the DPRK held by the DPRK embassy in China. Commissioned by Xi Jinping, general secretary of the CPC Central Committee, Wang congratulated the anniversary on behalf of the CPC, Chinese government, and Chinese people. Wang said under the leadership of top leaders Kim Il Sung, Kim Jong Il and Kim Jong Un, and that of the Workers' Party of Korea (WPK), people of the DPRK have resolutely defended the country's independence and made major achievements in the socialist cause. He said China believes that the DPRK's socialist cause will embrace new bright prospects as it implements the decision at the Third Plenary Meeting of the Seventh Central Committee of the WPK to adjust the strategic route and focus on developing the economy. Wang said top leaders of the two countries have held three important meetings this year, opening a new chapter in bilateral relations. China is willing to develop relations with the DPRK to the benefit of the two countries and the two peoples and make new contributions to regional peace and stability, he said. Chi Jae Ryong, the DPRK ambassador to China, said the WPK and the government of the DPRK stand firm on carrying forward the traditional friendship between the two countries. He said the DPRK hopes to work with China to push for greater development in relations between the two parties and the two countries. ^ top ^
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| Mongolia |
Mongolia and Thailand agree to prioritize mutually beneficial cooperation (Montsame)
2018-09-07
The first meeting of the Intergovernmental Cooperation Council of Mongolia and Thailand was held in Ulaanbaatar on September 6. At the meeting, delegations of two sides were headed by D.Davaasuren, State Secretary of the Ministry of Foreign Affairs of Mongolia, and Damrong Kraikruan, Permanent Secretary of the Ministry of Foreign Affairs of Thailand, alongside the attendance of Mongolian representatives from the Ministry of Foreign Affairs, Ministry of Environment and Tourism, Ministry of Mining and Heavy Industry and National Development Agency. The meeting aimed at expanding mutually beneficial cooperation in tourism, investment, culture, humanities and other sectors with Thailand. Technical and humanitarian cooperation was predominant in the bilateral relations of the two countries. The parties agreed to prioritize mutually beneficial trade, investment and economic cooperation through the Intergovernmental Cooperation Council meeting in the future. Specifically, the parties exchanged views on establishing legal documents to regulate the issues of expanding relations with the Asia-Pacific region, entering into the regional integration and closely cooperating with Thailand to enter the ASEAN market. Moreover, the parties agreed to implement certain works on learning tourism experience of Thailand, which receives over 30 million tourists annually, and initiate actions to connect the entrepreneurs of the two countries, who are interested in investing in mining and agriculture. ^ top ^
Foreign Minister received Deputy Secretary of Foreign Affairs Ministry of Thailand (Montsame)
2018-09-07
Minister of Foreign Affairs D.Tsogtbaatar received Deputy Permanent Secretary of the Ministry of Foreign Affairs of the Kingdom of Thailand Damrong Kraikruan on September 6. Minister D.Tsogtbaatar emphasized the importance of the first meeting of the Intergovernmental Cooperation Council of Mongolia and Thailand in Ulaanbaatar. Along the expansion of further bilateral trade and economic relations, Minister also stressed an importance of cooperation at regional and international community level. Deputy Permanent Secretary Damrong Kraikruan noted that the Kingdom of Thailand gives priority to the ties and cooperation with Mongolia. Additionally, Mr. Damrong Kraikruan emphasized the importance of mutuals visits, regular talks and business meetings in promoting bilateral trade and investments. ^ top ^
Delegation of Soja city of Japan work in Arvaikheer (Montsame)
2018-09-07
On September 6, a delegation of Soja city of Japan visited in Arvaikheer, center of Uvurkhangai aimag, to discuss bilateral cooperation. The delegates expressed proposals to cooperate in business sector. The Governor of the aimag G.Ganbold shared his opinion on bilateral cooperation, such as holding contacts between children and youth of the two countries, widening student exchange programs, developing industrial region as well as sharing experience. During the meeting, the delegation of Soja city pledged to open opportunities to export products, such as dairy products, honey and pine nuts from Bat-Ulzii soum to Japan, expressing commitment to support local business operations. ^ top ^
Over 300 women gather here for Global Women's Trade summit-2018 (Montsame)
2018-09-07
'Global Women's Trade summit-2018' commenced in Ulaanbaatar on September 7. Opening the summit, the International Women's Federation of Commerce and Industry (IWFCI) Mongolia Representative O.Baigal said "It is pleasure to host the Global Summit in Mongolia, regardless the fact that our business women joined the IWFCI only a year ago. On one hand it is an honor, but on the other hand it's a big responsibility." A total of seven session on the topics including 'Global Innovation and communications - Opportunities in Mongolia', 'ASEAN-Mongolia-Central Asia', 'Digital economy- Ecosystem', 'Innovation- Entrepreneurship', 'The future of finance', 'Creative industry' and 'Women in the global economy' held. International entrepreneurs and honorary guests led by the founder of the IWFCI Ms.Diana Abruzzi and President of the Busan National University of Education, Dr. Oh Sae Bock and heads of branch offices held discussions on multilateral partnership with the representatives economic, business and social sectors of Mongolia. Foreign Affairs Minister D.Tsogtbaatar, Minister of Education, Culture, Science and Sports Ts.Tsogzolmaa, MP B.Saranchimeg, MP D.Narantuya and other officials attended the meeting, which brought together over 300 participants from 12 countries. ^ top ^
Cooperation in establishment of digital embassy proposed (Montsame)
2018-09-07
On September 5, D.Tsogtbaatar, Minister of Foreign Affairs, received representatives headed by George Cheng, Head of Public Policy for Mongolia, Hong Kong and Taiwan at Facebook. Minister D.Tsogtbaatar said that the country is working to use social network effectively for promotion of Mongolia and to ensure information accuracy and security and pointed out its interest to collaborate in establishing the first e-chembassy or digital embassy and chamber of commerce. Mentioning that the number of Facebook users in Mongolia is increasing year by year, Mr. George Cheng underlined possibilities to cooperate in developing foreign relations and promotions. Moreover, he invited Foreign Minister to visit Facebook headquarters in California, USA at his convenience, to deliver lecture to its staffs. ^ top ^
Minister D.Tsogtbaatar meets Non-Resident Ambassador of Israel to Mongolia (Montsame)
2018-09-07
Foreign Minister D.Tsogtbaatar received Zvi Heifetz, Non-Resident Ambassador of Israel to Mongolia on September 5. Emphasizing a need to focus attention on learning Israeli experience on agriculture, introducing advanced technologies and actively developing cooperation in this field, Minister D.Tsogtbaatar expressed interest to study Israeli experience on combating cybercrime and to collaborate on it. Ambassador Zvi Heifetz said that the country is developing friendly ties with Mongolia, noting possibilities to mainly cooperate in agriculture. Additionally, the sides exchanged views on some matters of multilateral cooperation. ^ top ^
Letters of credence presented to Ambassadors to Sweden, Canada, and the UK (Montsame)
2018-09-07
The newly-assigned Ambassador of Mongolia to Sweden Ochiriin Enkhtsetseg, Ambassador of Mongolia to Canada Yadmaagiin Ariunbold, Ambassador of Mongolia to the United Kingdom Narkhuugiin Tulga received their letters of credence from President of Mongolia Khaltmaagiin Battulga on September 6. President Battulga gave instructions to the newly-assigned Ambassadors individually and discussed what actions the heads of mission will be taking to benefit Mongolia. For instance, President Battulga underlined that the service of an ambassador isn't a post-retirement job for politicians, while expressing his solid stance against this type of appointment of ambassadors. Moreover, President Battulga tasked the Ambassadors to take active initiatives toward protecting the rights of Mongolian nationals and Mongolia while ensuring immediate success because the Ministry of Foreign Affairs deems them to be highly-skilled and professional diplomats. In particular, the President mentioned the matters of education, healthcare, high technology, and training of specialized work force, instructing the Ambassadors to settle these issues, including training specialized work force, finding scholarships for students, and studying the possibility of delivering costly healthcare services to Mongolians for free, in half year. President Battulga also asked the Ambassadors to keep their Embassies always open to Mongolian nationals and to work toward broadening bilateral relations by means of forwarding initiatives in multilateral cooperation between countries. ^ top ^
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Yang Xinhui
Embassy of Switzerland
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The Press review is a random selection
of political and social related news gathered from various media
and news services located in the PRC, edited or translated by
the Embassy of Switzerland in Beijing and distributed among Swiss
Government Offices. The Embassy does not accept responsibility
for accuracy of quotes or truthfulness of content. Additionally
the contents of the selected news mustn't correspond to the opinion
of the Embassy.
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