CX Daily: China Rules Out Blanket Production Curbs This Winter
China rules out blanket production curbs in fight against smog this winter
China’s environment ministry vowed not to take a “one-size-fits-all” approach to industrial production cuts aimed at reducing pollution in the coming winter. Heavy production curbs in previous years disrupted local economies and daily life.
The Ministry of Ecology and Environment said in a guidance document this week that factories should face different levels of restrictions this winter based on a classification system that takes into account their emission levels, and that local governments should avoid placing restrictions on the use of residential heating boilers and other domestic activities that have little effect on air quality.
The ministry also clarified standards for grading companies in 15 key industries, including steel, coking, glass and petrochemicals, in a system designed to identify the “cleanest” factories and allow them looser supervision and fewer restrictions. Meanwhile, local governments should curtail production only in emergency situations — when air quality falls below a certain level, according to the ministry.
FINANCE & ECONOMICS
JD.com asserted that it was unaware of the transactions involved in Camsing’s financing transactions. Photo: VCG
Camsing scandal /
Exclusive: Former JD.com employee detained in Camsing fraud case
A former employee of China’s No. 2 e-commerce company JD.com Inc. has been detained on suspicion of involvement in the massive supply-chain financing fraud of Camsing Global, sources close to the matter told us.
The employee, surnamed Xu, was procurement manager at JD’s 3C division, which covers sales of computers, telecommunications and consumer electronics, according to Xu's name card which we obtained. Xu played a key role in the Camsing case and appeared as a JD.com representative in several deals involving the e-commerce company and Camsing Global affiliates since 2016, a source said.
Huarong unit plunges 60% in sudden Hong Kong sell-off
Hong Kong-listed Huarong International Financial Holdings Ltd. tumbled 60% in seven minutes during afternoon trading Tuesday and touched HK$0.235 ($0.02), the lowest since its market debut in 1994. The plunge reflected selling by Hong Kong-based brokerage house Cornerstone Securities Ltd., the largest broker of Huarong International Financial’s publicly traded shares.
The stock finished the day at HK$0.33, down 45% from the previous close. The benchmark Hang Seng Index declined 0.23% Tuesday. The shares have lost 84.4% of their value since April 2018, rattled by a corruption scandal at the parent company that brought down former China Huarong Chairman Lai Xiaomin.
BUSINESS & TECH
U.S. blacklist /
Huawei founder sees ‘live or die moment’ in U.S. pressure
Huawei Technologies Co. founder Ren Zhengfei warned in an internal memo that the telecom giant is at a “live or die moment” and advised underused employees to form “commando squads” to explore new projects. Workers who fail will have their salaries cut every few months and may lose their jobs, the billionaire said yesterday.
Huawei expects to sell 60 million fewer phones in 2019 than it would have without recent U.S. sanctions. In Q1 2019 the company expanded its mobile shipments by 50%. By Q2, partially reflecting the sanctions, growth fell to 8.3%. Meanwhile, after losing Android, Huawei switched to 24-hour workdays, mobilizing as many as 10,000 developers across three shifts to rush out its HarmonyOS.
Australian universities risk catastrophic hit from reliance on China
Australia’s top universities face a “catastrophic” hit to student revenues if China imposes strict currency controls, with income potentially falling by AU$1 billion ($667 million), according to a report from the Centre for Independent Studies, which says the financial risk of overreliance on China cannot be mitigated by diversifying with students from other countries.
The University of Sydney currently leads the pack, earning more than half a billion Australian dollars from Chinese student fees, which is nearly a quarter of its revenue. Salvatore Babones, an associate professor at the university, said the institution would take an AU$100 million hit to revenue if Chinese enrollments fell by 25%.
China reshuffles medical reimbursement list, adding new drugs
China on Tuesday added 148 drugs to a list of medicines eligible for reimbursement under government-backed insurance plans, among which five are for rare diseases, 36 for chronic diseases such as diabetes, and 38 for pediatric use.
The updated catalog, released by the National Healthcare Security Administration, includes 47 foreign drugs and 101 traditional Chinese medicines. Notable additions involve global names such as AstraZeneca’s Kombiglyze and Merck & Co.’s Janumet, both treatments for diabetes. The authority also removed 150 drugs from the reimbursable list.
In depth /
How internet celebrities changed China e-commerce
You may not know the name "Li Jiaqi," but you'll most likely have seen the face of one of China's most recognizable "wanghong," or internet celebrities, famous for his beauty advice, who competed in a promotional livestream against Alibaba's Jack Ma on who could sell the most lipsticks. (Li won).
Now in his 20s, Li has risen from his roots working in a brick-and-mortar cosmetics shop to create an online empire that includes short videos and other products offering beauty product reviews and recommendations. Getting his endorsement has become a gold standard in China’s cosmetics world, often causing products to run out of stock, so now, this “key opinion leader,” or KOL, has adjusted his fees accordingly.
In our feature, we look at how replicating Li's success has become a core goal of marketing agencies and how it's easier said than done.
Chinese outbound M&A slumps on trade war, tougher regulation
The value of Chinese outbound deals slumped by one-third in the first half of the year, dragged down by the decline of large deals made by Chinese buyers, as rising global trade tensions appeared to push back deal-making from China, a new report says.
Quick hits /
Baidu moving out, Bytedance and Ant marching in to most valuable tech firm leader board
Huawei eyes fashion-conscious consumers with smart sunglasses release
China’s first cloned pet cat was born in July, biotech company announces
Red Lobster's CEO wants China to be restaurant's biggest overseas market
China’s ride-hailing growth to slow to 5% in 2019, Bain says
OnePlus’ smart TV coming to India in September
Xiaomi shares sink after second-quarter results fall short
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