China Is Warning Lotte Group against Letting a Korean Golf Course Become a Missile Defense Site

Josh Horwitz
Quartz
China’s has a new target amid its ongoing economic retaliation against South Korea—the country’s fifth-biggest conglomerate

Conversation

02.16.17

Can China Become a Leader of Innovation?

Jost Wübbeke, Yu Zhou & more
China’s ambitious high-tech strategy is raising alarm in industrialized nations. From American and South Korean chipmakers to German car and machine manufacturers, some industry leaders expect the imminent arrival of strong Chinese competitors. Does...

China Loses a Friend, and Leverage, with North Korean Murder

Bloomberg
The mysterious death of Kim Jong Un’s half-brother removed a potential avenue for China to press the North Korean leader to rein in his nuclear ambitions.

EU Preparing Early China Summit in Message to Trump: Sources

Robin Emmott and Gabriela Baczynska
Reuters
The European Union is preparing an early summit with China in April or May in Brussels to promote free trade and international cooperation in the face of a more protectionist and inward-looking Washington, three EU officials said.

In China, a Lonely Valentine’s Day for Millions of Men

Didi Kristen Tatlow
New York Times
That’s because China’s gender gap remains huge. There were 33.59 million more men than women in China in 2016, according to figures from the country’s National Bureau of Statistics that were issued last month 

U.S. Eyes New Tactic to Press China

Bob Davis
Wall Street Journal
Currency strategy would avoid singling out country in bid to avoid break in relations 

Inflation in China Is Heating Up Fast

David Scutt
Business Insider
Chinese inflationary pressures went up a cog in January, led by another enormous surge in producer price inflation (PPI). 

Chinese People Are Buying All Kinds of Desperate Remedies to Protect Themselves from Smog

Charlie Campbell
Time
Air purifiers, meanwhile, are becoming cheaper and more efficient. Chinese tech firm Xiaomi leads the way with its Mi Air Purifier Pro, boasting a dual-fan, dual-motor system with ”high-precision laser sensor.” 

India’s Air Pollution Rivals China’s as World’s Deadliest

Geeta Anand
New York Times
India’s rapidly worsening air pollution is causing about 1.1 million people to die prematurely each year and is now surpassing China’s as the deadliest in the world, a new study of global air pollution shows. 

Foreign Passports Offer Little Protection for China’s Elite

Ben Bland
Financial Times
Beijing’s corruption crackdown drives rush for second citizenship 

Viewpoint

02.13.17

The U.S. Should Not Demand In-Kind Reciprocity from China

James Zimmerman
In a well-drafted task force report issued this week by the Asia Society and the University of California San Diego, a group of scholars and former government officials recommend that the Trump administration take steps to make the U.S.-China...

China Accused of Undermining Drive to Cut Steel Capacity

Charles Clover and Lucy Hornby
Financial Times
China’s cuts in steel capacity last year primarily targeted mills that were already idle, doing little to reduce the exports that have fueled trade tensions or address the blight of toxic smog, a study has found. ...

How Chinese Internet Giant Baidu Uses AI and Machine Learning

Bernard Marr
Forbes
Baidu is currently considered to be pack leader amongst the Chinese internet giants as they race to develop and deploy machine and deep learning technology.

China, the Party-Corporate Complex

Yi-Zheng Lian
New York Times
In December, 15 years after China’s accession to the World Trade Organization, the European Union, the United States and Japan formally refused to grant Beijing the coveted label, denying it important concessions on tariffs and other trade...

Conversation

02.10.17

Did Xi Just Outmaneuver Trump?

M. Taylor Fravel, Isaac Stone Fish & more
On the evening of February 9, U.S. President Donald Trump had what the White House described in a terse readout as a “lengthy” and “cordial” telephone conversation with Chinese President Xi Jinping. That alone is newsworthy, as the...

China January Exports Rise 7.9 Percent, Beating Forecasts

CNBC
China’s January exports easily exceeded analysts’ expectations, rising 7.9 percent from a year earlier, while imports rose by 16.7 percent, also topping forecasts, preliminary data showed on Friday. That left the country with a trade surplus of $51...

How China’s Dumping of Treasurys Will Affect U.S. Borrowing Costs

Jon Sindreu
Wall Street Journal
Foreign buyers are holding a smaller share of the debt of the some of the world’s top nations

Why Donald Trump Can’t Bully China on Trade

Kenneth Rogoff
Guardian
Beijing holds trillions of dollars in U.S. debt and any trade disruption could lead to huge price rises in the budget stores on which many Americans rely

China’s Response to THAAD Does Not Warrant South Korean Action: Minister

Christine Kim
Reuters
South Korea’s finance minister said on Thursday China had not taken any retaliatory measures over plans to deploy a U.S. anti-missile system that warranted official action, although South Korea is ready to lodge a formal complaint if needed.

Here Are Five Ways China’s New Silk Road Is Good for Western Companies

Alex Capri
Forbes
China’s One-Belt-One-Road initiative is the most ambitious infrastructure project in history. Referred to as “OBOR,” this immense network of planned highways, railways, energy grids and port facilities will create economic corridors between 65...

How Trump Could Already Be Affecting Monetary Policy in China

Silvia Amaro
CNBC
Chinese officials might be trying to drain liquidity from their economy but the central bank remains fearful of raising interest rates too quickly, according to one strategist who suggests President Donald Trump might be indirectly influencing...

China Invites Britain to Attend New Silk Road Summit: Sources

Ben Blanchard and Elizabeth Piper
Reuters
China has invited British Prime Minister Theresa May to attend a major summit in May on its “One Belt, One Road” initiative to build a new Silk Road, diplomatic sources told Reuters

Joyous Africans Take to the Rails, With China’s Help

Andrew Jacobs
New York Times
China, which designed the system, supplied the trains and imported hundreds of engineers for the six years it took to plan and build the 466-mile line. And the $4 billion cost? Chinese banks provided nearly all the financing.

China’s Shipbuilders Go From Boom to Rust

Trefor Moss
Wall Street Journal
Shipyards across China are being driven out of business by weak global demand for new ships

Why China Doesn’t Need the U.S. for Trade

Winter Nie
Forbes
Unfortunately for Trump, it’s not the 1980s anymore.

How China Lost $1 Trillion

Keith Bradsher
New York Times
It’s a lot of money—but it’s shrinking.

China Courts Ivanka, Jared Kushner to Smooth Ties With Trump

Jennifer Jacobs, Peter Martin
Bloomberg
For China, Trump’s family may be the best hope for stable U.S. relations.

Reports

02.07.17

U.S. Policy Toward China

Orville Schell and Susan L. Shirk
Asia Society
The Task Force on U.S.-China Policy generated the following report and set of recommendations to assist the 45th U.S. presidential administration in formulating a China strategy that will protect and further U.S. national interests. This report...

China Protests U.S. Sanctions on Iran, but Sees ‘Clouds of War’ Dispersing over South China Sea

Simon Denyer
Washington Post
China said Monday it had lodged a formal protest with the United States over a decision to impose new sanctions targeting Iran, which affected a handful of Chinese companies and individuals.

China’s Forex Reserves May Beat Expectations: Analyst

Leslie Shaffer
CNBC
China’s foreign-exchange reserves data for January, due on Tuesday, may surprise on the upside after a long downtrend, an analyst said.

Donald Trump Hasn’t Spoken with Chinese President Xi Jinping since Taking Office

Zheping Huang
Quartz
Two weeks into his presidency, Donald Trump has spoken with 18 foreign heads-of-state, either by phone or in person. Xi Jinping’s name is conspicuously missing.

It Won’t Be Easy for Donald Trump to Bully China

Clay Chandler
Fortune
Trump’s screeds against China—for cheapening its currency, stoking its export machine and “stealing” American jobs—were a centerpiece of his campaign. And yet, as Trump himself probably knows, China won’t be easy to bully.

Xi Jinping’s Back Channel to Donald Trump

Katsuji Nakazawa
Nikkei Asian Review
Chinese President Xi Jinping’s regime is under pressure to rethink its U.S. strategy now that Donald Trump has been inaugurated as president of the U.S. and appears intent on changing the power dynamic between the two giants.

Disappearance of Chinese Billionaire Alarms Financial Sector

Yifan Xie and Josh Chin
Wall Street Journal
Xiao Jianhua is one of several high-profile Chinese businessmen to go missing since China’s 2015 stock-market crash

Mexico Blowback Should Dissuade Trump from Taking on China

Komal Sri-Kumar
Bloomberg
Even though Trump chose the U.S.’s southern neighbor as his first target in the tariff war, China casts a much longer shadow over the U.S. economy.

These American-Made Ford Raptor Pickups Are Shipping off to China

Jordan Golson
Verge
In a move that is sure to make President Trump happy, Ford is shipping a boatload of F-150 Raptor pickup trucks. Company reps are very excited to be sending American-made trucks over to China instead of the other way around.

China Tightens Monetary Policy by Raising Money Market Rates

Bloomberg
China’s central bank tightened monetary policy by raising the interest rates it charges in open-market operations and on funds lent via its Standing Lending Facility as it shifts to reining in asset prices and inflation.

Viewpoint

02.02.17

The Art of a China Deal

James McGregor
By his own admission, President Donald J. Trump is a brilliant businessman, a master negotiator, an exceptional deal maker, somebody who always wins. When it comes to China, he is prepared to do just that—win. “I’ve read hundreds of books about...

As Trump Sows Tensions with Mexico, Beijing May Reap Rewards

Nyshka Chandran
CNBC
As President Donald Trump wages a public and bellicose battle with the Mexican government, China may emerge as the victor.

China Labor Unrest Spreads to ‘New Economy’

Hudson Lockett
Financial Times
Retail and logistics sectors hit by strikes and protests once focused on industry

China’s ‘Silk Road’ Push Stirs Resentment, Protest in Sri Lanka

Voice of America
China signed a deal with Sri Lanka late last year to further develop the strategic port of Hambantota and build a huge industrial zone nearby, a key part of Beijing’s ambitions to create a modern-day “Silk Road” across Asia.

Books

02.01.17

Unlikely Partners

Julian Gewirtz
Unlikely Partners recounts the story of how Chinese politicians and intellectuals looked beyond their country’s borders for economic guidance at a key crossroads in the nation’s tumultuous 20th century. Julian Gewirtz offers a dramatic tale of competition for influence between reformers and hardline conservatives during the Deng Xiaoping era, bringing to light China’s productive exchanges with the West.When Mao Zedong died in 1976, his successors seized the opportunity to reassess the wisdom of China’s rigid commitment to Marxist doctrine. With Deng Xiaoping’s blessing, China’s economic gurus scoured the globe for fresh ideas that would put China on the path to domestic prosperity and ultimately global economic power. Leading foreign economists accepted invitations to visit China to share their expertise, while Chinese delegations traveled to the United States, Hungary, Great Britain, West Germany, Brazil, and other countries to examine new ideas. Chinese economists partnered with an array of brilliant thinkers, including Nobel Prize winners, World Bank officials, battle-scarred veterans of Eastern Europe’s economic struggles, and blunt-speaking free-market fundamentalists.Nevertheless, the push from China’s senior leadership to implement economic reforms did not go unchallenged, nor has the Chinese government been eager to publicize its engagement with Western-style innovations. Even today, Chinese Communists decry dangerous Western influences and officially maintain that China’s economic reinvention was the Chinese Communist Party’s achievement alone. Unlikely Partners sets forth the truer story, which has continuing relevance for China’s complex and far-reaching relationship with the West. —Harvard University Press{chop}

Yuan’s Gain Has Surprised Trump, Incoming Ambassador Branstad Says

Mario Parker
Bloomberg
Donald Trump probably hasn’t followed through on campaign pledges to label China a currency manipulator because the yuan’s been stronger than he anticipated, the U.S. President’s pick as ambassador to China said Tuesday.

China Is Facing a Catch-22 Dilemma

Jacob Shapiro
Business Insider
A subsidiary of the Industrial and Commercial Bank of China (ICBC) has recently reached deals with seven Chinese state-owned enterprises to convert about 60 billion yuan ($8.7 billion) of unpaid loans into equity shares.

Make China Great Again

David Leonhardt
New York Times
America’s rivals and enemies have enjoyed a very good 10 days.

Asia Pacific Nations Are Tilting Closer toward China as Trump Declares ‘America First’

Evelyn Cheng
CNBC
There are strong signs that countries in Asia and the Pacific region are turning away from the United States and tilting toward China as the Trump administration emphasizes “America First.”

For China, a Rethink on Donald Trump

Andrew Browne
Wall Street Journal
Beijing initially welcomed a tough negotiator—then came the Mexico episode

How China Can Win as America Turns Inward

Newsweek
As the U.S. was backing away from a major international agreement, China continued its push to strike pacts with other nations.

Billionaire Is Reported Seized from Hong Kong Hotel and Taken into China

Michael Forsythe
New York Times
A Chinese-born billionaire who has forged financial ties with some of the country’s most powerful families was taken by the Chinese police from his apartment at the Four Seasons Hotel in Hong Kong late last week and spirited across the border

U.S.-China War Increasingly a ‘Reality,’ Chinese Army Official Says

Evelyn Cheng
CNBC
China is preparing for a potential military clash with the United States, according to an article on the Chinese army’s website.

Donald Trump Is Handing China the World

David Axe
Daily Beast
While Trump focuses on building up the U.S. Navy to counter China, Beijing is gobbling up the other segments of global relations that used to be dominated by the U.S.

With Pen Plan, China Etches Nationalist Economic Policy

Chuin-Wei Yap
Wall Street Journal
New ability to manufacture pen nibs gives China ability to produce whole pen—and a point of pride

Conversation

01.27.17

TPP is Dead, Now What?

David Dollar, Charlene Barshefsky & more
On Monday, on his first full working day as president, Donald Trump officially withdrew the United States from the Trans-Pacific Partnership (TPP), a 12-nation trade pact that did not include China and did not have the votes to...

As Trump Stresses ‘America First,’ China Plays the World Leader

Ben Blanchard
Reuters
China is calmly mapping out global leadership aspirations from trade to climate change, drawing distinctions between President Xi Jinping’s steady hand and new U.S. President Donald Trump

Look out China, Mexico, Japan and Germany: How Trade Shapes Trump’s Worldview

Simon Denyer
Washington Post
In a nutshell, John Robb argues that trade—rather than national security—dominates Trump’s foreign policy thinking, inverting decades of U.S. practice.

China Likely to Stick to a Two-Child Policy

Wall Street Journal
Government plan cites demographic challenges, with country’s population seen peaking at 1.45 billion in 2030

Donald Trump Could Be Starting a New Cold War With China. But He Has Little Chance of Winning

Charlie Campbell
Time
The new U.S. administration has been testing Beijing with provocative stances on trade, Taiwan and the South China Sea. But starting up a Cold War with China is a highly risky strategy

A U.S.-China Role Switch: Who’s the Globalist Now?

Andrew Browne
Wall Street Journal
Xi Jinping sees a window as Donald Trump stirs masses with slogans

Books

01.23.17

China as an Innovation Nation

Edited by Yu Zhou, William Lazonick, and Yifei Sun
This volume assesses China’s transition to innovation-nation status in terms of social conditions, industry characteristics, and economic impacts over the past three decades, also providing insights into future developments.Defining innovation as the process that generates a higher quality, lower cost product than was previously available, the introductory chapter conceptualizes the theory of an innovation nation and the lessons from Japan and the United States. It outlines the key governance, employment, and investment institutions that China must build for such transition to occur, and examines China’s challenges and strategies to innovate in the era of global production systems. Two succeeding chapters explain the evolving roles of the Chinese state in innovation, and the new landscape of venture capital finance. The remaining chapters provide studies of major industries, which contain analyses of the evolving roles of investment by government agencies and business interests in the process. Included in these studies are traditional industries such as mechanical engineering, railroads, and automobiles; rapidly evolving and internationally highly integrated industries such as information-and-communication-technology (ICT); and newly emerging sectors such as wind and solar energy.Written by leading academics in the field, studies in this volume reveal Chinese innovation as diverse across industries and enterprises and fluid over time. In each sector, we observe continued co-evolution of state policy, market demand, and technology development. The strategies and structures of individual companies and industrial ecosystems are changing rapidly. The sum total of the studies is a great step forward in our understanding of the industrial foundations of China’s attempt to become an innovation nation. —Oxford University Press{chop}

Diplomat Says China Would Assume World Leadership If Needed

Reuters
China does not want world leadership but could be forced to assume that role if others step back from that position, a senior Chinese diplomat said on Monday