CX Daily: Huawei Could Well Take Much of Europe
In depth: Huawei could well take much of Europe
When Germany makes a decision, all of Europe listens. The country announced last month that it won’t exclude any supplier from participating in its 5G rollout. According to Stéphane Téral, a technology adviser at U.K.-based IHS Markit Technology, other major European countries such as France and Italy would not block the Chinese company either.
The reason why most European countries are not falling into line with the U.S. is that they don’t see China as a geopolitical rival, according to Paul Triolo, a geo-technology expert at the Eurasia Group. Triolo added that most European countries have used Huawei’s products in their previous 4G network buildups. So it would be hard for any of them to be persuaded to spend tens of billions of dollars extra to replace the Huawei gear.
Despite the U.S. government’s lobbying over the past few months to persuade its allies in Europe not to do business with Huawei, the continent remains open to the Chinese telecom giant. More than half of the company's more than 60 5G commercial contracts worldwide are in the region. Still, there is some caution.
Check out our other Huawei coverage:
• TSMC denies U.S. pressure to cut Huawei chip sales
• Huawei looks to shape European policy and university curricula with AI investment
• Huawei forecasts smartphone growth despite Trump blacklisting
FINANCE & ECONOMICS
Photo: IC Photo
China, U.S. plan opioid bust that may help Trump sell trade deal
China and the U.S. plan to highlight joint efforts to crack down on fentanyl smuggling, addressing an opioid epidemic that President Donald Trump has asked his counterpart President Xi Jinping to help alleviate as part of the broader trade talks between Beijing and Washington.
China’s National Narcotics Control Commission will hold a press conference Thursday about a fentanyl smuggling case that was jointly investigated with U.S. law enforcement after a live broadcast of the trial, according to a notice from the State Council Information Office. Officers from China and the U.S. will give a briefing on the case and their cooperation on fighting crimes related to the highly addictive painkiller.
China’s first euro bond sale in 15 years
In its first euro-denominated sovereign bond sale in 15 years, China issued 4 billion euros ($4.4 billion) of bonds as the country moves to diversify away from dollar funding. The Ministry of Finance said it issued in France Monday 2 billion euros of seven-year debt, 1 billion euros of 12-year, and another 1 billion euros of 20-year bonds, the country’s largest single foreign-currency denominated bond sale to date.
Gusto fades on new tech board as shares slump below IPO price
Shanghai’s new Nasdaq-style high-tech board, the STAR Market, appears to be losing its luster after an initial frenzy when it opened in July, with the latest batch of IPOs getting a subdued response from investors.
On Wednesday, Shanghai Haohai Biological Technology became the first company to see its shares fall below their offer price, going from 89.23 yuan ($12.75) to 88.53 yuan as soon as the market opened. Tianjin Jiuri New Materials, a chemical products manufacturer that only listed on Tuesday, has fared even worse. Already holding the title of the IPO with the smallest price spike in first-day dealings, the stock dropped below its offer price of 66.68 yuan during Wednesday trading.
Financial regulator lists Anbang's $980 million bank stake for sale
The Chinese government is continuing to dispose of former Anbang Insurance Group Co.’s assets, offering to sell its stake in a regional bank for 6.9 billion yuan ($980 million).
The China Banking and Insurance Regulatory Commission (CBIRC) working group in charge of the takeover of Anbang listed 1.347 billion shares of Zheshang Bank on the Shanghai United Assets and Equity Exchange. The listing will end Dec. 2.
The listing price is equivalent to 5.1 yuan per share, a 3% premium over the bank’s 4.94 yuan of net assets per share as of June 30.
Quick hits /
Yu Yongding: China needs stimulus
BUSINESS & TECH
Market watchdog targets monopolistic activity after complaints against Alibaba
China's market wtchdog told e-commerce platform operators including Alibaba, JD.com, and Pinduoduo to halt the practice of forcing online vendors to sign exclusive agreements that forbid them from selling their products on competitors’ platforms, state news agency Xinhua reported.
The regulator said monopolistic behavior is banned under a new e-commerce law as well as Chinese antitrust and unfair competition laws, and the watchdog will launch antitrust probes where necessary, according to Xinhua. The Hangzhou meeting comes as JD.com and home appliance maker Galanz prepare to sue Alibaba and its affiliates for allegedly conducting such practices.
New guidelines restrict play time, spending for young online gamers
A new notice from the State Administration of Press, Publication, Radio, Film and Television (SAPPRFT), one of China’s main game regulators, outlined measures to control excessive gaming by minors.
The guidelines detail the implementation of a system for real-name registration. It also lays out strict playing time limits for minors, saying operators should halt service for people under 18 from 10 p.m. to 8 a.m. Minors should normally be limited to no more than 90 minutes of game time per school day, or three hours on weekends and public holidays. The notice also capped the amount that minors could spend on games.
Electric cars /
Tesla reaches preliminary battery-supply deal with CATL
Tesla Inc. reached a preliminary agreement to start using CATL as a battery supplier for cars made in China starting as early as next year, and the companies are in talks to expand the relationship globally, according to people familiar with the matter.
Following months of negotiations, the companies clinched a nonbinding deal after Tesla CEO Elon Musk traveled to Shanghai in late August and met with CATL Chairman Zeng Yuqun for about 40 minutes, according to the people, who asked not to be named discussing private deliberations. Though a final agreement is expected to be signed by mid 2020, there is no guarantee that will happen, the people said.
Digital payments /
WeChat Pay eyes foreign visitors in race with Alipay
Tencent is in talks with five international card issuers, including Visa and MasterCard, to gauge the feasibility of letting foreign travelers link their overseas bank debit and credit cards to WeChat Pay, according to a report published yesterday on the company’s news portal.
The news came as Alibaba-affiliated Ant Financial added a similar function to its Alipay service that allows overseas bank cardholders to use the popular payment system when traveling in China. Tencent will initially pilot-test its scheme in the ride-hailing and ticket booking sectors and will seek to apply the service in other areas under the guidance of domestic regulators, the report said.
Quick hits /
10 Years of Caixin - Baidu’s dangerous ad game
Chinese delivery companies add 400,000 extra staff for Double 11
Didi to trial revived Hitch carpool service more than a year after passenger murders
PR firms’ staff jailed for online post deletion racket
Nio jumps 37% after Intel tie-up for automated-vehicle tech
NetEase Music loses fight over pop idol Jay Chou
Leshi faces cash crunch as auction of lavish Beijing office approaches
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