Top 10 Daily Business China News Alerts 05/06/2015
by Tom McGregor
Tue, May 5, 2015, 07:51 PM
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1.China, EU seeking common approach on climate change ahead of Paris talks on carbon reductions
BEIJING – The European Union's foreign policy chief said Tuesday she's confident the EU and China can agree to a common approach on climate change ahead of crucial carbon reduction talks in Paris this year.Federica Mogherini praised China's targets for gradually reducing its greenhouse gas emissions and said the sides should be able to agree on other goals at an upcoming bilateral summit.
2.The fantasy of China: Why the new Met exhibition is a big, beautiful lie
NEW YORK — The first thing to accept about “China: Through The Looking Glass,” the spring exhibition at the Metropolitan Museum of Art, is that it is not meant to be a critical assessment of the fashion industry’s non-fiction, politically correct relationship with China’s culture, history or its people. The displayed ballgowns, evening robes and cocktail dresses – which are dazzling – are not treated as historical documents stitched out of silk and cotton, embroidered and beaded. The designers, more often than not, never intended their garments to be commentaries on politics, human rights or the complexity of East-West trade negotiations. They wanted them to make people dream.
3.Finance Companies Expanding to China's Film Industry
Would-be domestic and foreign companies looking to establish themselves in China's ever-growing film industry are being warned of potential challenges ahead, as more and more companies look to tap into the potentially-lucrative sector.China's film industry is expanding fast.In April 2015, the 5th Beijing International Film Festival witnessed the signing of 35 projects worth 2.2 billion dollars.
Singapore banks, which have enlarged their China credit exposure in recent years, were hit by a drop in billions of dollars of China trade-financing deals as mainland borrowing conditions became easier while offshore interest rates grew more expensive.The premium of the onshore six-month Shanghai interbank offered rate to the offshore six-month CNH Hong Kong interbank offered rate shrank to 0.3 per cent as of the end of March, from as wide as 2.3 per cent in the first half of last year.
5.Trade Deficit Stifles U.S. Growth, China’s Yuan at Center of Controversy
Tuesday, the Commerce Department is expected to report the March deficit on international trade in goods and services was $42 billion, up from $37.8 billion in February.Trade with Japan, Germany, South Korea, and China account for most of the trade imbalance, and their monetary and exchange rate policies pose a significant barrier to U.S. growth.
6.The China Inbound Market: Opportunities and Challenges
Travel to the U.S. from China is booming --- with the number of annual visitors expected to double to nearly five million in the next four years.For U.S. tour operators and travel agencies who work with--or tap into inbound tourism—this market presents both significant opportunities and challenges.
7.China pivots toward private investment in infrastructure
One huge downside to the $586 billion stimulus that China launched in 2009 to help avert a global recession was over-dependence on public financing for infrastructure projects.Asia Unhedged recalls the $4 trillion yuan outlay was strenuously pushed by the U.S. and other G-20 countries at the time to stave off a catastrophe — which it clearly did. Six years later, one of the consequences of this outpouring of government funds are the “ghost cities” (so derided in the U.S. media) that no one lives in. The stimulus likewise triggered spending and borrowing habits that threw many local governments into severe debt.
The Pacific Rim has far too many bubbling tensions for the good of global stability and world trade. Territorial disputes are becoming more serious between Japan, China and South Korea, never mind growing maritime claims further afield in the South China Sea.Therefore, it is good news that one of the region’s oldest clashes — between China and Taiwan — is mellowing slightly. This week’s warm meeting between Taiwan’s Nationalist Chairman, Eric Chu, and Chinese President Xi Jinping was the highest level contact between the two sides in six years.