CX Daily: U.S. Proposes Purge of Huawei, ZTE Equipment
Huwei ban /
U.S. proposes purge of Huawei, ZTE equipment from government-subsidized networks
The Federal Communications Commission (FCC), the U.S. telecom regulator, will vote Nov. 19 on a multipart proposal that would bar American companies receiving rural subsidies from purchasing equipment and services from China's Huawei and ZTE. It would also require those already receiving such funding to strip the equipment from their networks and establish a process for designating additional companies as national security threats.
The draft order, posted Monday night on the FCC website, was introduced by agency Chairman Ajit Pai. It names Huawei Technologies Co. Ltd. and ZTE Corp. as “companies posing a national security threat.” It would ban U.S. carriers receiving money from the regulator's $8.5 billion Universal Service Fund, used to subsidize service to low-income and high-cost areas including schools, libraries, and rural health providers, from using equipment from such suppliers.
FINANCE & ECONOMICS
A chicken farm in Kalona, Iowa, on Aug. 23. Photo: VCG
U.S. poultry producers soar as China signals end of import ban
Shares of American chicken processors surged Monday after China said it’s prepared to lift a ban on U.S. poultry that’s been in place since 2015. Sanderson Farms shares gained as much as 16%, the biggest intraday jump in more than a decade, while Pilgrim’s Pride and Tyson rose as much as 8.3% and 5.1%, respectively.
Tyson Foods Inc., Pilgrim’s Pride Corp. and Sanderson Farms Inc. are all poised to benefit as China may seek to import more protein in the wake of a deadly pig disease that’s wiped out a significant percentage of its hog herd. Chicken is the cheapest substitute for pork, which is the country’s preferred protein.
Licensed microlenders shrink to record low
China’s licensed microlenders have shrunk in number to an almost six-year low even as the amount they loaned out rebounded slightly. At the end of September, the number of licensed microloan businesses dropped to 7,680, marking the lowest level since the end of 2013, according to the PBOC's latest quarterly report.
Boardroom battle at crypto giant leads to ouster of co-founder Zhan
Just days after President Xi Jinping set the cryptocurrency world alight by endorsing blockchain and China’s legislature passed a new cryptography law, a power struggle at Bitmain Technologies Ltd., the largest maker of bitcoin mining equipment, has led to the ouster of co-founder and executive director Micree Ketuan Zhan.
Bitmain, whose products also form the backbone of dozens of blockchain platforms and startups, replaced Zhan, its legal representative, with fellow co-founder Jihan Wu, according to a Monday post to a Beijing credit information website. Referring to himself as founder, chairman, legal representative and executive director, Wu said he had decided to strip Zhan of all his positions with immediate effect, according to a screenshot we obtained of an internal company email.
Quick hits /
China’s new bid to break into blockchain
10 Years of Caixin: How failed takeover of world’s largest developer exposed shabby financial regulation
Editorial: Pay attention to the people’s personal experiences of national governance
Varoufakis: The IMF should take over Libra
China pledges to accelerate PPP rules to define implicit debts
Li Ka-shing donates $25.5 million to support HK small restaurants
BUSINESS & TECH
ZTE’s post-sanctions rebound continues with solid earnings figures
Chinese telecom-equipment maker ZTE is well and truly back on its feet, more than a year after now-lifted U.S. sanctions threatened to cripple its business. At least, that's the message from the company’s robust third-quarter results released Monday.
Net profit from July through September skyrocketed 370% YOY to 2.66 billion yuan ($377 billion), while revenue was up 1.55% to 19.63 billion yuan. The Shenzhen- and Hong Kong-listed company attributed the solid performance to its “active and stable” operating strategy and its focus on “mainstream markets and products.”
Autonomous cars /
HD map rules to be loosened to help self-driving car industry, official says
Zhang Wei, an official with the geographic information regulation department of the Ministry of Natural Resources, said that according to current regulations, publicly available maps cannot indicate the height, gradient or exact curvature of a road, nor bridges’ and tunnels’ height and weight limits, something autonomous cars need to operate.
However, most automakers are not allowed to collect their own map information, instead having to work with licensed mapmakers, as the government considers such data to be an issue of national security. Speaking at a mobility conference, Zhang said the ministry would work with the industry to address some of these issues and "adjust regulations cautiously.”
Taiwan set for first tourist drop since 2003 after Chinese mainland ban
The number of mainlanders traveling to the island plunged 46% in September, according to data from Taiwan’s Tourism Bureau. Beijing banned individual travelers from heading to Taiwan in July, although tourists are still allowed to visit in tour groups.
While the total number of visitors to Taiwan had been on track for a new record high, rising more than 10% so far this year, the embargo threatens to interrupt 15 straight years of annual increases in overseas arrivals. The Chinese mainland, which is the largest single source of tourists to Taiwan, has sought to isolate the island ahead of a January election that will determine whether Taiwan leader Tsai Ing-wen of the pro-independence Democratic Progressive Party can win a second term.
Quick hits /
Beijing’s $11 billion new airport ramps up
Volkswagen targets Tesla by revving up China electric-car production
Chinese bitcoin-mining machine manufacturer looks to go public in U.S.
China successfully flies first 4-seat electric aircraft
Leshi shrinks as independent directors fret about massive debt
Chinese electric-car maker Nio CFO resigns
TikTok owner ByteDance aims to build global reach before IPO
Chinese battery giant CATL’s revenue surges in the first nine months
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