CX Daily: China, U.S. Agree on Phase One Trade Deal
Trade war /
Phase one trade deal rolls back tariffs, expands imports to China
China and the United States agreed on a phase one deal to pause the 18-month trade war, rolling back tariffs and increasing imports from America, Chinese officials confirmed late Friday in Beijing.
The two countries worked out a nine-chapter accord including terms covering intellectual property, technology transfer, food and agricultural products, financial services, exchange rates and transparency, trade expansion, mutual assessment and dispute settlement, officials said.
As part of the agreement, the U.S. will roll back some existing and planned punitive tariffs on Chinese products step by step as well as exempt more Chinese products from being taxed in the future. Rising tariffs on Chinese products will be gradually reversed.
In return, China will increase imports from the U.S. under the agreement while considering “relevant arrangements” for tax levies on American products, officials said.
Markets rally on report of draft U.S.-China trade deal
Trump Approves Draft U.S.-China Trade Deal to Halt Looming Tariffs
FINANCE & ECONOMICS
Real estate /
China lays out economic policy roadmap for 2020
China’s top policymakers pledged more-effective measures to ensure stable growth next year as the world’s second-largest economy faces increasing downward pressure amid a continued slowdown and a prolonged trade war with the U.S.
Their decisions, made public in a statement by the official Xinhua news agency after a three-day closed-door meeting to discuss strategy for 2020, signal it’s unlikely there will be big changes in the government’s policy stance next year, economists said. Many expect a continuation of moderate monetary and fiscal easing to ensure that economic growth stays in what the statement called a “reasonable range.” Although the focus on deleveraging appears to have been downgraded, reiteration of the leadership’s commitment to prevent financial risks suggests there will be no major stimulus, some analysts noted.
Exclusive: Tewoo offshore bondholders take heavy losses to exit
Bondholders in a defaulted Chinese state-owned enterprise chose to sell their holdings back to the company at heavy discounts to avoid possibly even bigger future losses.
Tewoo Group Co., the first state-owned company to miss a payment to foreign dollar bond investors in two decades, offered investors in its $1.25 billion of bonds two options: either swap the bonds for new debt at zero or lower interest rates or sell them back at heavy losses. Most investors chose to accept the haircut and exit.
China Merchants Bank executive arrested in connection to P2P business
An executive of China Merchants Bank was arrested in the southern city Guangzhou in connection with the commercial bank’s collaboration with a busted peer-to-peer (P2P) financial platform.
The Guangzhou Tianhe District Procuratorate issued warrants Nov. 20 for the arrest of Zuo Chuanghong, who is in charge of Merchants Bank’s collaboration with the P2P app Qianduan, and Qianduan’s controlling owner Chen Qian, the procuratorate said Tuesday on its website.
Coming up /
Mon, Dec. 16: The NBS will release several November reports, including industrial production operation, investment in fixed assets, investment in real estate development, total retail sales of consumer goods and energy production. It will also release its November report on sales prices of residential buildings in 70 large and medium-sized cities
BUSINESS & TECH
Trade war /
Apple dodges $150 levy on iPhones as U.S. and China strike trade deal
Apple avoided 15% tariffs on its most important products, the iPhone, iPad and MacBooks, after U.S. President Donald Trump signed off on a trade deal with China.
The new import duties were to kick in Dec. 15 and could have added about $150 to the price of iPhones during the crucial holiday shopping season, according to Wedbush Securities analyst Dan Ives.
Samsung invests additional $8 billion in flash memory chip production in China
Electronics giant Samsung is investing an additional $8 billion in its chip factory in the Chinese city of Xi’an to increase production of NAND flash memory chips, the city’s internet information office said Friday in a social media post.
Xi’an officials say the new investment will enable Xi’an to attain a top position in the global industry supply chain of memory chips, as the Chinese city sees the electronic information industry as a major driving force of its economy.
Rare earths /
U.S. to fund Australia's Lynas rare earths processing plant
The United States military is poised to put its money where its mouth is as Lynas Corp. Ltd. looks to build a new heavy rare earths processing plant in Texas.
The U.S. Department of Defense has called for tenders as it looks to pour money into new on-shore processing plants, with Lynas considered a frontrunner given its track record in rare earths production, ownership of the world-class Mount Weld mine in Western Australia and existing joint venture plans in the U.S.
Chinese genome sequencing firm to supply tech to Abu Dhabi personalized health-care project
Chinese genomics company BGI Group will take part in a medical project to improve the health of people in the United Arab Emirates by using genomic data, according to a Wednesday company filing to the Shenzhen Stock Exchange.
BGI will contribute its genome sequencing technology to the project, named the Genome Program, which aims to create a massive health-care system allowing doctors to make personalized diagnoses and treatment options, the company said. The project is led by the Department of Health-Abu Dhabi. The program will build a reference genome specific to citizens in the United Arab Emirates, the Department of Health-Abu Dhabi said in a statement published on its website.
Hillhouse-backed Genor plans $200 million Hong Kong IPO
Quick hits /
Another retired Moutai executive hit with corruption investigation
Researcher questions validity of more Chinese academic papers
China hits the accelerator on surveillance equipment
Baidu unveils budget touch-screen smart speaker with focus on child safety
Alibaba co-founder steps down from board affiliated to Chinese EV maker
Device manufacturing giant Huaqin raises $143 million
Opinion: Xie Zhenhua exemplifies why China needs a strong voice on climate change
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