fbpx

Event Brief: Belt and Road Initiative Forum in Xiamen, China

Xiamen – On September 9th, FAO Global CEO Brandon Hughes, attended an all-day forum focused on the Belt & Road Initiative (BRI) from both a Chinese business perspective and government. This forum was part of the 20th China International Fair for Investment and Trade held in Xiamen City, Fujian province, China. The event was attended by provincial and city leaders from Xiamen and Fujian, as well the Ambassador to Beijing from Slovakia, the U.S. State Department, and an emissary from Egypt. – Brandon Hughes

China’s Economy Cooling Down

According a studied released on August 14 by the China National Bureau of Statistics China’s economic growth slowed 5.5%. This rate is lower compared to the first seven months (January through July) of the previous year’s growth. Beijing tried to explain the slow growth by China transitioning from ““high-speed growth” to “high-quality growth,” which was promoted by high tech initiative as part of Beijing’s “Made in China 2025” industrial policy. – Ziqing Zhang

For our assessment on the global impacts on businesses, see our detailed summary and assessment here.

China–Pakistan Economic Corridor: Issues and Possible Solutions

The China-Pakistan Economic Corridor (CPEC) is a collection of various infrastructure projects started on November 13, 2016. It is a flagship program under the Belt and Road Initiative that provides Beijing, direct access to to Gulf of Oman and Arabian Sea. Recently, critics of CPEC (both inside and outside Pakistan) have voiced their concerns over energy and economy issues between the two countries. – Weiting Li

American Meat Export is Likely to Take a Big Hit Following Chinese Tariffs

Following the latest round of American tariffs on Chinese goods July 5, Beijing responded with retaliatory tariffs imposed on July 6, adding a 25% duty targeting American soybeans, meat, and vehicles. US farm produce, especially beef and high-end steaks, is expected to take a significant hit as exports to China becomes increasingly more expensive. The duty rate on US beef to China is being tripled from 12% to 37%, just as US beef was beginning to reemerge as a strong player in Chinese markets. – Dillon Billingham

China-Based US Businesses May Already Be Suffering from Ongoing Tariffs Talks

The Friday, July 5 deadline of US president Donald Trump’s $34 billion USD tariffs on Chinese goods has already started causing trouble for American businesses in China. Smaller firms have been struggling with new obstacles in customs, regulations, inspections, and licensing applications. For a more detailed summary and our analysis, read more here.

Growing fear of Chinese Investment in the West

Following increasing trade tensions between China and the United States, more countries have raised national security concerns surrounding Chinese foreign investment. After the U.S. blocked several deals with China, Germany, Canada, and the U.K. all raised concerns on proposed Chinese investment in their own countries. -Weiting Li

For a detailed summary and our assessment on business impacts, read more here.

Thailand Seeking Bids for High-speed rail Project as part of Belt & Road Initiative

Thailand would be seeking $5.5 billion-dollar bids for a high-speed rail project by end of 2018. The winning bidder would build the 157-mile route connecting central and northeastern Thailand with their neighbor to the east, Laos. American infrastructure and energy enterprises interested in investing in Thailand should consider cooperating with Thai companies like energy giant PTT Public Company Limited, urban railway operator BTS Group Holdings, and construction company CH. Karnchang Public Company Limited in-order-to avoid potential government red tape.

U.S. “Made in China 2025” push-back is Trouble for Tech

On Monday, June 25, a Wall Street Journal report indicated that additional Chinese tech investment barriers severely impacted global investors’ confidence. Some restrictions being considered include limiting high-tech exports to China, tightening Chinese investment restrictions on U.S. tech companies, and prohibiting Chinese companies – defined as 25% or more Chinese ownership – from buying American companies involved in industrially significant technology. – Dillon Billingham

Google invests in JD.com to rebuild its presence in China

On June 18, Google announced that it would be investing $550 million in JD.com, also known as Jingdong. JD is China’s biggest e-commerce company and claims net revenue of 100.1 billion Chinese Yuan (16.0 billion USD) in Q1 2018. As per the investment agreement, JD will join the Google Shopping advertising platform and in return, JD will work with Google on other e-commerce projects in Europe, Southeast Asia and the United States. – Ziqing Zhang