FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

China Business Weekly25 June 2020

FCCC/EUCBA ACTIVITIESWebinar with the future Ambassador and Consuls-General of Belgium in China 7 July at 15:00 p.m.

The Flanders-China Chamber of Commerce (FCCC) is organizing a webinar with the future Ambassador and Consuls-General of Belgium in China. This webinar will take place on Tuesday 7 July at 15.00 p.m. CEST.

This event is an excellent opportunity to introduce your companies’ activities in Belgium and China to the future Ambassador and Consuls-General.

Agenda:15h00-15h05: Introduction by Ms. Gwenn Sonck, Executive Director, Flanders-China Chamber of Commerce15h05-15h30: Speeches by Mr. Jan Hoogmartens, future Ambassador of Belgium in China, Mr. Bruno Jans, future Consul-General of Belgium in Shanghai and Mr. Luc Truyens, future Consul-General of Belgium in GuangzhouModerated by: Gwenn Sonck, Executive Director, Flanders-China Chamber of Commerce15h30-15h40: Question and answer session

15h40-17h00: Individual online meetings with the Ambassador and Consuls-General

Practical Information:Date and time: 7 July 15.00 p.m. CEST

Location: Online (Webex)

Price for members: Free

Price for non-members: 25€

FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

China Business Weekly25 June 2020

FCCC/EUCBA ACTIVITIESWebinar with the future Ambassador and Consuls-General of Belgium in China 7 July at 15:00 p.m.

The Flanders-China Chamber of Commerce (FCCC) is organizing a webinar with the future Ambassador and Consuls-General of Belgium in China. This webinar will take place on Tuesday 7 July at 15.00 p.m. CEST.

This event is an excellent opportunity to introduce your companies’ activities in Belgium and China to the future Ambassador and Consuls-General.

Agenda:15h00-15h05: Introduction by Ms. Gwenn Sonck, Executive Director, Flanders-China Chamber of Commerce15h05-15h30: Speeches by Mr. Jan Hoogmartens, future Ambassador of Belgium in China, Mr. Bruno Jans, future Consul-General of Belgium in Shanghai and Mr. Luc Truyens, future Consul-General of Belgium in GuangzhouModerated by: Gwenn Sonck, Executive Director, Flanders-China Chamber of Commerce15h30-15h40: Question and answer session

15h40-17h00: Individual online meetings with the Ambassador and Consuls-General

Practical Information:Date and time: 7 July 15.00 p.m. CEST

Location: Online (Webex)

Price for members: Free

Price for non-members: 25€

FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

If you wish to have an individual online meeting with the Ambassador or Consuls-General, we kindly ask you to fill this in at the registration.

SUBSCRIBE HERE

Webinar: Report from China by the Flemish Economic Representatives9 July at 10:00 a.m.

The Flanders-China Chamber of Commerce and Flanders Investment & Trade are organizing a webinar with theFlemish Economic Representatives in China. The webinar will take place on Thursday 9 July from 10:00 to 11:15 a.m.

During the webinar, three Flemish Economic Representatives will share their experiences and insights from their basein China: Marc Struyvelt in Beijing, Bart Boschmans in Shanghai and Eva Verstraelen, the new Chief of Mission inGuangzhou. How did they experience the past few months, what is the situation in their locality and how do they viewthe consequences of the Covid-19 pandemic for our Flemish exporters?

Program:10h00-10h05: Introduction by Gwenn Sonck, Executive Director, Flanders-China Chamber of Commerce10h05-10h45: Panel discussion with Marc Struyvelt, Flemish Economic Representative in Beijing; BartBoschmans, Flemish Economic Representative in Shanghai and Eva Verstraelen, Flemish EconomicRepresentative in Guangzhou10h45-11h15: Q&A session

Speakers:

Bart Boschmans, Flemish Economic Representative in Shanghai

FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

If you wish to have an individual online meeting with the Ambassador or Consuls-General, we kindly ask you to fill this in at the registration.

SUBSCRIBE HERE

Webinar: Report from China by the Flemish Economic Representatives9 July at 10:00 a.m.

The Flanders-China Chamber of Commerce and Flanders Investment & Trade are organizing a webinar with theFlemish Economic Representatives in China. The webinar will take place on Thursday 9 July from 10:00 to 11:15 a.m.

During the webinar, three Flemish Economic Representatives will share their experiences and insights from their basein China: Marc Struyvelt in Beijing, Bart Boschmans in Shanghai and Eva Verstraelen, the new Chief of Mission inGuangzhou. How did they experience the past few months, what is the situation in their locality and how do they viewthe consequences of the Covid-19 pandemic for our Flemish exporters?

Program:10h00-10h05: Introduction by Gwenn Sonck, Executive Director, Flanders-China Chamber of Commerce10h05-10h45: Panel discussion with Marc Struyvelt, Flemish Economic Representative in Beijing; BartBoschmans, Flemish Economic Representative in Shanghai and Eva Verstraelen, Flemish EconomicRepresentative in Guangzhou10h45-11h15: Q&A session

Speakers:

Bart Boschmans, Flemish Economic Representative in Shanghai

FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

Marc Struyvelt, Flemish Economic Representative in Beijing

Eva Verstraelen, Flemish Economic Representative in Guangzhou

Moderator

Gwenn Sonck, Executive Director, Flanders-China Chamber of Commerce

Practical Information:Date and time: 9 July 2020 – 10:00 AM – 11:15 AM CEST

Location: Online (Zoom)

Participant fee: Free of charge

SUBSCRIBE HERE

Webinar: Best IP Practices for Technology Transfer in China15 July, 2020 4:30 p.m. - 5:30 p.m. CST

The Flanders-China Chamber of Commerce / EU-China Business Association, in cooperation with the China IPR SMEHelpdesk, is organizing a webinar on the best practices for technology transfer in China from an IP perspective. Thesession will be held by the IP Business Advisor Matias Zubimendi, who will give a presentation on a successful IPstrategy when transferring technology in China.

FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

Marc Struyvelt, Flemish Economic Representative in Beijing

Eva Verstraelen, Flemish Economic Representative in Guangzhou

Moderator

Gwenn Sonck, Executive Director, Flanders-China Chamber of Commerce

Practical Information:Date and time: 9 July 2020 – 10:00 AM – 11:15 AM CEST

Location: Online (Zoom)

Participant fee: Free of charge

SUBSCRIBE HERE

Webinar: Best IP Practices for Technology Transfer in China15 July, 2020 4:30 p.m. - 5:30 p.m. CST

The Flanders-China Chamber of Commerce / EU-China Business Association, in cooperation with the China IPR SMEHelpdesk, is organizing a webinar on the best practices for technology transfer in China from an IP perspective. Thesession will be held by the IP Business Advisor Matias Zubimendi, who will give a presentation on a successful IPstrategy when transferring technology in China.

FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

The webinar will end with a Q&A session where attendees can raise their questions and interact with the speakers.

Agenda:

10:30 Introduction to the webinar and the services of the China IPR SME Helpdesk by Peter Sczigel (China IPR SMEHelpdesk) 10:35 Presentation of the Flanders-China Chamber of Commerce / EU-China Business Association by Gwenn Sonck,Executive Director10:40 Best IP practices for technology transfer in China by Matias Zubimendi (China IPR SME Helpdesk) 11:15 Q&A session

11:30 Closing remarks

S UBSCRIBE HERE

PAST EVENTSWebinar: Best IP Practices for R&D in China – 17 June 2020The Flanders-China Chamber of Commerce (FCCC) organized in partnership with the China IPR SME Helpdesk awebinar on the best practices for R&D activities in China from an IP perspective. Peter Sczigel introduced the webinarand the services of the China IPR SME Helpdesk. IP Business Advisor Matias Zubimendi gave a presentation on asuccessful IP strategy when investing in R&D in China. The webinar ended with a Q&A session where attendees raisedtheir questions and interacted with the speakers.

Mr Peter Sczigel of the China IPR SME Helpdesk, first introduced the services of the Helpdesk, a EU-funded projectproviding services for EU SMEs working in China and planning on expanding in China. The Helpdesk focuses on the fieldof intellectual property, with an inquiry helpline to help EU SMEs with any IPR related questions they may have regardingbusiness in China. Experts will provide confidential information within three working days. The Helpdesk organizesworkshops and webinars. The website and blog also keeps visitors up to date.

Ms Gwenn Sonck, Executive Director of the Flanders-China Chamber of Commerce and the EU-China BusinessAssociation, introduced both organizations. China is recovering from Covid-19 and things are almost back to normal,although a few days ago a new cluster of cases was detected in Beijing. But China is taking very strict actions and is farahead in efficiency and tracking compared to Europe. What can we learn from China? China has already become a leaderin innovation in several areas, such as the internet industry and artificial intelligence. China became the world leader inpatent filings in 2019, overtaking the U.S. For the third consecutive year in 2019, Huawei topped the global ranking inapplications. A majority of European companies in China said that Chinese firms were equally or even more innovativethan European firms. One of the major drivers of innovation in China is the significant sum spent on R&D. In 2015 Chinasurpassed the EU for the first time in expenditure on R&D, making it the second largest spender after the U.S. It is likely toovertake the U.S. within the next five to ten years. European businesses feel China compares favorably to other countriesin government incentives, low research costs and R&D productivity. In others areas, such as internet access and IPRprotection, China still has a way to go. Negotiations between the EU and China on the investment treaty offer opportunitiesfor increased trade and investment.

The Flanders-China Chamber of Commerce was founded more than 15 years ago by the largest investors fromBelgium in China. Our aim, Ms Sonck said, is to help Belgian companies in China and also Chinese companies to expandin Belgium and Europe. We publish a weekly newsletter and regularly receive trade delegations, but due to Covid-19 wewill also work more in the cloud. The FCCC is a member of the EU-China Business Association, which has 19 memberassociations, representing more than 20,000 European and Chinese companies.

Next, Mr Sczigel conducted a small survey asking whether your enterprise conducts R&D in China? 41% said they doR&D activities in China and 41% do not.

Mr Matias Zubimendi, IP Business Advisor at the China IPR SME Helpdesk, spoke on the topic of “Best IPPractices for R&D in China”. There are different IPRs, the most common ones are innovation patents, which protectinventions that are novel, non-obvious and are industrial applications. Utility models share the same requirements, but areless strict. Design patents protect how the products look, not the innovation or technology. The trademark is basically asign that can identify products or services in a certain market. It can be a name, a picture or a logo. Copyrights protect theexpression of ideas, not the ideas themselves. They also protect software and databases. A trade secret is anyinformation that is valuable and not commonly known by competitors. It could be in the form of a document, a prototype or

FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

The webinar will end with a Q&A session where attendees can raise their questions and interact with the speakers.

Agenda:

10:30 Introduction to the webinar and the services of the China IPR SME Helpdesk by Peter Sczigel (China IPR SMEHelpdesk) 10:35 Presentation of the Flanders-China Chamber of Commerce / EU-China Business Association by Gwenn Sonck,Executive Director10:40 Best IP practices for technology transfer in China by Matias Zubimendi (China IPR SME Helpdesk) 11:15 Q&A session

11:30 Closing remarks

S UBSCRIBE HERE

PAST EVENTSWebinar: Best IP Practices for R&D in China – 17 June 2020The Flanders-China Chamber of Commerce (FCCC) organized in partnership with the China IPR SME Helpdesk awebinar on the best practices for R&D activities in China from an IP perspective. Peter Sczigel introduced the webinarand the services of the China IPR SME Helpdesk. IP Business Advisor Matias Zubimendi gave a presentation on asuccessful IP strategy when investing in R&D in China. The webinar ended with a Q&A session where attendees raisedtheir questions and interacted with the speakers.

Mr Peter Sczigel of the China IPR SME Helpdesk, first introduced the services of the Helpdesk, a EU-funded projectproviding services for EU SMEs working in China and planning on expanding in China. The Helpdesk focuses on the fieldof intellectual property, with an inquiry helpline to help EU SMEs with any IPR related questions they may have regardingbusiness in China. Experts will provide confidential information within three working days. The Helpdesk organizesworkshops and webinars. The website and blog also keeps visitors up to date.

Ms Gwenn Sonck, Executive Director of the Flanders-China Chamber of Commerce and the EU-China BusinessAssociation, introduced both organizations. China is recovering from Covid-19 and things are almost back to normal,although a few days ago a new cluster of cases was detected in Beijing. But China is taking very strict actions and is farahead in efficiency and tracking compared to Europe. What can we learn from China? China has already become a leaderin innovation in several areas, such as the internet industry and artificial intelligence. China became the world leader inpatent filings in 2019, overtaking the U.S. For the third consecutive year in 2019, Huawei topped the global ranking inapplications. A majority of European companies in China said that Chinese firms were equally or even more innovativethan European firms. One of the major drivers of innovation in China is the significant sum spent on R&D. In 2015 Chinasurpassed the EU for the first time in expenditure on R&D, making it the second largest spender after the U.S. It is likely toovertake the U.S. within the next five to ten years. European businesses feel China compares favorably to other countriesin government incentives, low research costs and R&D productivity. In others areas, such as internet access and IPRprotection, China still has a way to go. Negotiations between the EU and China on the investment treaty offer opportunitiesfor increased trade and investment.

The Flanders-China Chamber of Commerce was founded more than 15 years ago by the largest investors fromBelgium in China. Our aim, Ms Sonck said, is to help Belgian companies in China and also Chinese companies to expandin Belgium and Europe. We publish a weekly newsletter and regularly receive trade delegations, but due to Covid-19 wewill also work more in the cloud. The FCCC is a member of the EU-China Business Association, which has 19 memberassociations, representing more than 20,000 European and Chinese companies.

Next, Mr Sczigel conducted a small survey asking whether your enterprise conducts R&D in China? 41% said they doR&D activities in China and 41% do not.

Mr Matias Zubimendi, IP Business Advisor at the China IPR SME Helpdesk, spoke on the topic of “Best IPPractices for R&D in China”. There are different IPRs, the most common ones are innovation patents, which protectinventions that are novel, non-obvious and are industrial applications. Utility models share the same requirements, but areless strict. Design patents protect how the products look, not the innovation or technology. The trademark is basically asign that can identify products or services in a certain market. It can be a name, a picture or a logo. Copyrights protect theexpression of ideas, not the ideas themselves. They also protect software and databases. A trade secret is anyinformation that is valuable and not commonly known by competitors. It could be in the form of a document, a prototype or

FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

encrypted communication.

Mr Zubimendi continued to explain the main principles of IPR: registration and territoriality. In China you need to havea registration to have protection. Protection is valid only in a certain territory where the property right is registered. Acompany needs to develop an R&D strategy, first deciding which markets they want to target. IP should be protected inevery targeted country. This should cover not only the target markets, but also logistics, such as the country of production.If the production is done in China, even if it is not the main market, the IP should also be registered there. The nextquestion is who will develop the technology, the EU SME, a Chinese entity or jointly. Who will be the parties involved: theinventors, but also the partners. On the National Enterprise Credit Information Publicity System of China website you cancheck who is the legal representative of the company, who should be the one to sign contracts. You can also check thescope and capital of the company, which could raise some red flags. A check of the owners of the company will showwhether it is for example a spin-off of a competitor. The company doing R&D should also think about licenses. Thetechnology may be also useful for other companies that are not competitors.

Concerning ownership, the first question is who is going to do the registration. The company would need to havean office in China or an IP agent. Ownership can be solely by the EU SME, by the Chinese business partners or can be inco-ownership. In the case of a co-ownership contract, issues include who is going to obtain licenses and pay registrationfees. It is also important to determine how the enforcement is going to be done. It is advisable that a party who is familiarwith the market should do the surveillance. Moreover it should be stipulated how decisions are going to be made, forexample concerning new potential partners, as the approval of both parties would be necessary.

It should be determined whether inventors are employees of the company. They need to receive a fair remuneration,which should be at least 2% of the annual profit of the new technology. The company should also consider futuredevelopments, for example if only one of the co-owners will further develop the technology and the other one wouldreceive a license at a lower fee. According to Chinese law, if a technology is improved by a Chinese company it cannot befully owned by a foreign company or compensation should be paid. Certain technologies are not allowed to be owned byforeign companies. It is advisable to check the catalog with an IPR expert. Mr Zubimendi also discussed the principalclauses of a license, such as the territory, duration and content.

As final tips for SMEs, Mr Zubimendi included the implementation of a corporate IP strategy in China, including researchof your partners; an understanding of the Chinese legal framework; adoption of preventive measures; and confronting IPinfringement when discovered.

The China IPR SME Helpdesk blog is at www.youripinsider.eu and the website at www.ipr-hub.eu

NEWS FROM OUR PARTNERS11th Weihai International Food Expo & China-Korea Commodity Expo

The 11th Weihai International Food Expo & China-Korea Commodity Expo will be held from 24 to 27 July 2020 in the formof an online cloud exhibition. We'd like to invite the exhibitors and purchasers from Europe to participate in this onlineExpo.

FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

encrypted communication.

Mr Zubimendi continued to explain the main principles of IPR: registration and territoriality. In China you need to havea registration to have protection. Protection is valid only in a certain territory where the property right is registered. Acompany needs to develop an R&D strategy, first deciding which markets they want to target. IP should be protected inevery targeted country. This should cover not only the target markets, but also logistics, such as the country of production.If the production is done in China, even if it is not the main market, the IP should also be registered there. The nextquestion is who will develop the technology, the EU SME, a Chinese entity or jointly. Who will be the parties involved: theinventors, but also the partners. On the National Enterprise Credit Information Publicity System of China website you cancheck who is the legal representative of the company, who should be the one to sign contracts. You can also check thescope and capital of the company, which could raise some red flags. A check of the owners of the company will showwhether it is for example a spin-off of a competitor. The company doing R&D should also think about licenses. Thetechnology may be also useful for other companies that are not competitors.

Concerning ownership, the first question is who is going to do the registration. The company would need to havean office in China or an IP agent. Ownership can be solely by the EU SME, by the Chinese business partners or can be inco-ownership. In the case of a co-ownership contract, issues include who is going to obtain licenses and pay registrationfees. It is also important to determine how the enforcement is going to be done. It is advisable that a party who is familiarwith the market should do the surveillance. Moreover it should be stipulated how decisions are going to be made, forexample concerning new potential partners, as the approval of both parties would be necessary.

It should be determined whether inventors are employees of the company. They need to receive a fair remuneration,which should be at least 2% of the annual profit of the new technology. The company should also consider futuredevelopments, for example if only one of the co-owners will further develop the technology and the other one wouldreceive a license at a lower fee. According to Chinese law, if a technology is improved by a Chinese company it cannot befully owned by a foreign company or compensation should be paid. Certain technologies are not allowed to be owned byforeign companies. It is advisable to check the catalog with an IPR expert. Mr Zubimendi also discussed the principalclauses of a license, such as the territory, duration and content.

As final tips for SMEs, Mr Zubimendi included the implementation of a corporate IP strategy in China, including researchof your partners; an understanding of the Chinese legal framework; adoption of preventive measures; and confronting IPinfringement when discovered.

The China IPR SME Helpdesk blog is at www.youripinsider.eu and the website at www.ipr-hub.eu

NEWS FROM OUR PARTNERS11th Weihai International Food Expo & China-Korea Commodity Expo

The 11th Weihai International Food Expo & China-Korea Commodity Expo will be held from 24 to 27 July 2020 in the formof an online cloud exhibition. We'd like to invite the exhibitors and purchasers from Europe to participate in this onlineExpo.

FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

The Weihai International Food Expo & China-South Korea Commodity Expo is focusing on and promoting the quality andsafety of exported food and agricultural products. It is taking “based on Weihai, highlighting Japan and South Korea, facingNortheast Asia, radiating the world” as the goal, and “internationalization, marketization, specialization, branding” as theguidance. Based on the advantages of the Weihai food industry, the Expo gathers global food industry resources, and hasbeen successfully held for ten times since 2010. It has gradually grown into a local high-end international exhibition,making due contributions to the transformation and upgrading of the Weihai food industry and the rapid development ofthe modern service industry.

This year, in the context of the normalization of epidemic prevention and control, according to the unified deployment ofthe Weihai municipal party committee and government, in order to further strengthen the popularity and influence of ourcity's brand self exhibition, and innovate and study a new mode of exhibition service, the Food Expo of this year will beheld through the online cloud exhibition mode, guiding, mobilizing and supporting enterprises to participate in onlineexhibition, making full use of 5G, big data and other modern information technology, and promoting “cloud exhibition”,“cloud docking”, “cloud negotiation” and “cloud signing” within and outside the exhibition period. The Expo will build a“cloud” platform for the Weihai food trade and realize the “never ending” Food Expo.

The website of this Expo: http://www.weihaishipin.com/index_expo.htm

The link for overseas promotion: https://weihaifoodexhibition.linkjoint.cn/

Follow the Flanders-China Chamber of Commerce onLinkedIn – Click here

HEALTHBeijing still battling resurgence of Covid-19

At the beginning of last week, about 7,200 residentialcommunities in Beijing entered the “wartimemanagement mode” as the capital city took strictprevention and control measures following the latestoutbreak of a Covid-19 cluster that was first detected at alocal seafood market in Fengtai district. Between 21 and 36new cases were reported in Beijing last week, but expertswere divided whether the outbreak had been brought undercontrol. Facing growing uncertainties, central and local-level officials urged the public to remain on high alert,considering the virus' mutation, unclear origin of theinfection cluster and unknown transmission routes. Localofficials were urged to take resolute and decisive measuresto effectively prevent the spread of the epidemic. Of the

more than 200 new Covid-19 patients, 2 were in criticalcondition and 11 others were severely ill.

By June 22, 103,000 delivery workers of logisticscompanies in Beijing had received nucleic acid tests toensure safe deliveries to residents following the mid-yeare-commerce promotions from June 1 to 16. From June 11to 20, logistics companies in Beijing collected 68 millionpackages, up 22.86%, and delivered 82 million packages,up 25.57% year-on-year. Major online catering platformsalso announced plans to have their delivery workers tested.So far, no Covid-19 case has been reported in the postaland logistics industry in the city.

Beijing now has the capacity to conduct 1 million testsa day. Almost 2.3 million people – about 10% of the city’spopulation – were tested for Covid-19 between June 13and 19. The samples were collected by close to 7,500medical workers at 2,100 sites. China banned imports fromU.S. poultry producer Tyson Foods and ordered a BeijingPepsi factory producing potato chips to close after Covid-19 cases were detected.

Chinese experts differ on when the new outbreak in Beijingbegan and where exactly the virus originated. In the latestspeculation, Gao Fu, Director of the Chinese Center forDisease Control and Prevention (CDC), said the outbreakprobably did not occur in early June or late May, butprobably a month earlier. Different from Gao, Wu Zunyou,Chief Epidemiologist at the CDC, said that the Covid-19

FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

The Weihai International Food Expo & China-South Korea Commodity Expo is focusing on and promoting the quality andsafety of exported food and agricultural products. It is taking “based on Weihai, highlighting Japan and South Korea, facingNortheast Asia, radiating the world” as the goal, and “internationalization, marketization, specialization, branding” as theguidance. Based on the advantages of the Weihai food industry, the Expo gathers global food industry resources, and hasbeen successfully held for ten times since 2010. It has gradually grown into a local high-end international exhibition,making due contributions to the transformation and upgrading of the Weihai food industry and the rapid development ofthe modern service industry.

This year, in the context of the normalization of epidemic prevention and control, according to the unified deployment ofthe Weihai municipal party committee and government, in order to further strengthen the popularity and influence of ourcity's brand self exhibition, and innovate and study a new mode of exhibition service, the Food Expo of this year will beheld through the online cloud exhibition mode, guiding, mobilizing and supporting enterprises to participate in onlineexhibition, making full use of 5G, big data and other modern information technology, and promoting “cloud exhibition”,“cloud docking”, “cloud negotiation” and “cloud signing” within and outside the exhibition period. The Expo will build a“cloud” platform for the Weihai food trade and realize the “never ending” Food Expo.

The website of this Expo: http://www.weihaishipin.com/index_expo.htm

The link for overseas promotion: https://weihaifoodexhibition.linkjoint.cn/

Follow the Flanders-China Chamber of Commerce onLinkedIn – Click here

HEALTHBeijing still battling resurgence of Covid-19

At the beginning of last week, about 7,200 residentialcommunities in Beijing entered the “wartimemanagement mode” as the capital city took strictprevention and control measures following the latestoutbreak of a Covid-19 cluster that was first detected at alocal seafood market in Fengtai district. Between 21 and 36new cases were reported in Beijing last week, but expertswere divided whether the outbreak had been brought undercontrol. Facing growing uncertainties, central and local-level officials urged the public to remain on high alert,considering the virus' mutation, unclear origin of theinfection cluster and unknown transmission routes. Localofficials were urged to take resolute and decisive measuresto effectively prevent the spread of the epidemic. Of the

more than 200 new Covid-19 patients, 2 were in criticalcondition and 11 others were severely ill.

By June 22, 103,000 delivery workers of logisticscompanies in Beijing had received nucleic acid tests toensure safe deliveries to residents following the mid-yeare-commerce promotions from June 1 to 16. From June 11to 20, logistics companies in Beijing collected 68 millionpackages, up 22.86%, and delivered 82 million packages,up 25.57% year-on-year. Major online catering platformsalso announced plans to have their delivery workers tested.So far, no Covid-19 case has been reported in the postaland logistics industry in the city.

Beijing now has the capacity to conduct 1 million testsa day. Almost 2.3 million people – about 10% of the city’spopulation – were tested for Covid-19 between June 13and 19. The samples were collected by close to 7,500medical workers at 2,100 sites. China banned imports fromU.S. poultry producer Tyson Foods and ordered a BeijingPepsi factory producing potato chips to close after Covid-19 cases were detected.

Chinese experts differ on when the new outbreak in Beijingbegan and where exactly the virus originated. In the latestspeculation, Gao Fu, Director of the Chinese Center forDisease Control and Prevention (CDC), said the outbreakprobably did not occur in early June or late May, butprobably a month earlier. Different from Gao, Wu Zunyou,Chief Epidemiologist at the CDC, said that the Covid-19

FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

cluster centered at Beijing Xinfadi Market may have begunas early as late May. Wu has said the outbreak in XinfadiMarket is similar to the epidemic in Wuhan's Huananseafood market. The common feature of these markets isthat they are cold and wet places, which are very suitablefor viruses to survive.

“We’re trying to control the outbreak, it’s better to keeppeople on their toes,” Zeng Guang, Chief Scientist at CDC,said. “Controlling the outbreak is not the end. Theconditions that breed epidemics still exist.” His commentscame a day after Wu Zunyou, the CDC’s ChiefEpidemiologist, said Beijing’s recent Covid-19 outbreakhad been brought under control, although more cases wereexpected to be detected as a result of mass testing in thecity. Wu later clarified his statement, saying the outbreakwas under control and that the conclusion was based onscience, but warned that “prevention and control measurescannot be relaxed”.

Major seafood markets in China have launched massivenucleic acid tests for their working staff and tookenvironmental samples. Although there is no proof thatsalmon was the source of the sudden spike in Beijing,the latest research shows that the virus “came fromEurope,” and virologists believe the epidemic was mostlikely caused by contaminated food. Industrial insidersnoted that the incident in Xinfadi market will have a huge –although temporary – impact on the imported seafoodmarket across China and on the world supply chain. Theynoted that the latest outbreak is also a reminder to majorseafood exporters to China to strengthen their healthquarantine and product quality. Many supermarkets andrestaurants in China have taken salmon off their shelvesand sealed them for further inspection.

The China Aquatic Products Processing and MarketingAlliance (CAPPMA) said that Russia, the U.S., Norwayand Argentina are the top four seafood exporters toChina. In 2019, Russia exported 1.7 million metric tons ofseafood, with 70.5% going to China. Seafood exports fromNorway to China are steadily rising. In 2019, Norway'sexports reached 168,503 tons. Eason Li, China GeneralManager of Hofseth International, a Norway-based seafoodproducer, told the Global Times that Beijing Customs hasstopped imports of all seafood products, while Shanghaihas raised quarantine requirements for imported salmon.The company exported about 100,000 tons of salmon to

China in 2019, the Global Times reports. The virus couldsurvive for months on contaminated seafood or meat intemperatures between -10ºC and -30ºC, but there is noevidence that the virus can replicate in fish, so salmon isnot a viral carrier.

Beijing has now become a "no-go zone" for other partsof China, as many places strengthened health checks onarrivals from Beijing. Many Beijing residents now prefer notto leave the city over fears of the strict quarantinemeasures they may face in other places. The city of Daqingin Heilongjiang province imposed a 21-day quarantine forpeople returning from Beijing. A government employeefrom Jinan, capital of Shandong province, told the GlobalTimes that even people from low-risk Beijing districts willonly be allowed to stay in hotels after they have providedvalid nucleic acid test results.

Authorities said that with a sound prevention andsupervision procedure in place, cross-border personnelexchanges – such as bilateral fast-track arrangementswith South Korea, Singapore and Germany – need not bestopped or suspended in the wake of Beijing's newcoronavirus infections. Flights to and from Beijing werelargely canceled shortly after Beijing raised the emergencyresponse to Level II, under which Beijing residents whowant to leave the city are required to show a negativenucleic acid test result in the past 7 days.

Testing the whole population of Beijing has been ruled outfor now. A total of 300 asymptomatic patients were foundafter 9,899,828 residents were tested in Wuhan during a10-day citywide test period from May 14, with no confirmedcases. The tests cost CNY900 million, paid by the Wuhancity government.

The new Covid-19 outbreak in Beijing is likely to deal ablow to the revival of its tourism sector, with an analystpredicting a 30% to 40% year-on-year drop in revenueduring the three-day Dragon Boat Festival holiday thisweek. Group tours from other provinces to Beijing havebeen suspended. China saw a total of 95.98 milliondomestic tourist trips during the Dragon Boat Festival in2019, up 7.7% year-on-year. National tourism revenuestood at CNY39.3 billion, up 8.6% year-on-year.

This overview is based on reporting by the Global Times,China Daily, South China Morning Post and ShanghaiDaily.

FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

cluster centered at Beijing Xinfadi Market may have begunas early as late May. Wu has said the outbreak in XinfadiMarket is similar to the epidemic in Wuhan's Huananseafood market. The common feature of these markets isthat they are cold and wet places, which are very suitablefor viruses to survive.

“We’re trying to control the outbreak, it’s better to keeppeople on their toes,” Zeng Guang, Chief Scientist at CDC,said. “Controlling the outbreak is not the end. Theconditions that breed epidemics still exist.” His commentscame a day after Wu Zunyou, the CDC’s ChiefEpidemiologist, said Beijing’s recent Covid-19 outbreakhad been brought under control, although more cases wereexpected to be detected as a result of mass testing in thecity. Wu later clarified his statement, saying the outbreakwas under control and that the conclusion was based onscience, but warned that “prevention and control measurescannot be relaxed”.

Major seafood markets in China have launched massivenucleic acid tests for their working staff and tookenvironmental samples. Although there is no proof thatsalmon was the source of the sudden spike in Beijing,the latest research shows that the virus “came fromEurope,” and virologists believe the epidemic was mostlikely caused by contaminated food. Industrial insidersnoted that the incident in Xinfadi market will have a huge –although temporary – impact on the imported seafoodmarket across China and on the world supply chain. Theynoted that the latest outbreak is also a reminder to majorseafood exporters to China to strengthen their healthquarantine and product quality. Many supermarkets andrestaurants in China have taken salmon off their shelvesand sealed them for further inspection.

The China Aquatic Products Processing and MarketingAlliance (CAPPMA) said that Russia, the U.S., Norwayand Argentina are the top four seafood exporters toChina. In 2019, Russia exported 1.7 million metric tons ofseafood, with 70.5% going to China. Seafood exports fromNorway to China are steadily rising. In 2019, Norway'sexports reached 168,503 tons. Eason Li, China GeneralManager of Hofseth International, a Norway-based seafoodproducer, told the Global Times that Beijing Customs hasstopped imports of all seafood products, while Shanghaihas raised quarantine requirements for imported salmon.The company exported about 100,000 tons of salmon to

China in 2019, the Global Times reports. The virus couldsurvive for months on contaminated seafood or meat intemperatures between -10ºC and -30ºC, but there is noevidence that the virus can replicate in fish, so salmon isnot a viral carrier.

Beijing has now become a "no-go zone" for other partsof China, as many places strengthened health checks onarrivals from Beijing. Many Beijing residents now prefer notto leave the city over fears of the strict quarantinemeasures they may face in other places. The city of Daqingin Heilongjiang province imposed a 21-day quarantine forpeople returning from Beijing. A government employeefrom Jinan, capital of Shandong province, told the GlobalTimes that even people from low-risk Beijing districts willonly be allowed to stay in hotels after they have providedvalid nucleic acid test results.

Authorities said that with a sound prevention andsupervision procedure in place, cross-border personnelexchanges – such as bilateral fast-track arrangementswith South Korea, Singapore and Germany – need not bestopped or suspended in the wake of Beijing's newcoronavirus infections. Flights to and from Beijing werelargely canceled shortly after Beijing raised the emergencyresponse to Level II, under which Beijing residents whowant to leave the city are required to show a negativenucleic acid test result in the past 7 days.

Testing the whole population of Beijing has been ruled outfor now. A total of 300 asymptomatic patients were foundafter 9,899,828 residents were tested in Wuhan during a10-day citywide test period from May 14, with no confirmedcases. The tests cost CNY900 million, paid by the Wuhancity government.

The new Covid-19 outbreak in Beijing is likely to deal ablow to the revival of its tourism sector, with an analystpredicting a 30% to 40% year-on-year drop in revenueduring the three-day Dragon Boat Festival holiday thisweek. Group tours from other provinces to Beijing havebeen suspended. China saw a total of 95.98 milliondomestic tourist trips during the Dragon Boat Festival in2019, up 7.7% year-on-year. National tourism revenuestood at CNY39.3 billion, up 8.6% year-on-year.

This overview is based on reporting by the Global Times,China Daily, South China Morning Post and ShanghaiDaily.

FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

IT & TELECOMU.S. to allow companies to work with Huawei on setting 5G standards

The United States authorities amended a prohibitionon U.S. companies doing business with China’sHuawei to allow them to work together on settingstandards for next-generation 5G networks. The U.S.Commerce Department and other agencies signed off onthe rule change, which was published in the FederalRegister. “The United States will not cede leadership inglobal innovation,” U.S. Commerce Secretary Wilbur Rosssaid. “The Department is committed to protecting U.S.national security and foreign policy interests byencouraging U.S. industry to fully engage and advocate forU.S. technologies to become international standards.” TheCommerce Department noted that U.S. participation instandards-setting “influences the future of 5G, autonomousvehicles, artificial intelligence and other cutting-edgetechnologies.” 5G networks are expected to powereverything from high-speed video transmissions to self-driving cars.

Analysts observed this did not signify an easing of the U.S.assault on Huawei. Last year, the United States placedHuawei on the Commerce Department’s so-called entitylist, which restricted sales of U.S. goods and technology tothe company, citing national security. Industry andgovernment officials said the Huawei entity listing put theUnited States at a disadvantage in standards settings.The new rule came in response to concerns from U.S.companies and lawmakers. “Confusion stemming from theMay 2019 entity list update had inadvertently sidelined U.S.companies from some technical standards conversations,putting them at a strategic disadvantage,” said NaomiWilson, Senior Director of Policy for Asia at the InformationTechnology Industry Council, as reported by the ShanghaiDaily.

“This is not a friendly gesture by the U.S., but simply areflection on its part that it is too late and too expensive forany country to develop its own 5G standard,” JefferiesEquity Analyst Edison Lee said. He added that feedbackfrom U.S. tech companies likely convinced the Trumpadministration that it is not realistic for the U.S. to create itsown version of 5G. Large U.S. firms, including Intel Corpand Qualcomm, have already contributed plenty to 5Gstandards under the 3rd Generation Partnership Project(3GPP). In a statement, Huawei said it wants “to continueholding sincere discussions in relation to standards for new

technologies with our counterparts, including those in theU.S.”, the South China Morning Post adds.

The Global Times reported that on a global basis, Huaweihas the highest number of declared 5G patents at 2,386patent families, followed by LG with 1,388 patent familiesand Samsung with 1,353 patent families, according toGreyB Services and Amplified AI. Huawei overtookSamsung to become the world's largest smartphonemaker in April, despite the double challenges of the U.S.government’s tightened restrictions and the Covid-19outbreak's economic fallout. Huawei accounted for 21%of the global smartphone market in April, thanks toreviving smartphone shipments in China. In comparison,Samsung saw its market share stand at 19%, amid Covid-19-related lockdowns in markets such as India, accordingto market research company Counterpoint. This is the firsttime Huawei has surpassed Samsung, after the companyexpressed in 2016 its aim to be the world's No 1smartphone maker within five years.

Experts said Huawei's ascent against all the odds reflectsthe company's popularity among Chinese consumers, butchallenges still exist for its overseas businesses. It remainsto be seen whether Huawei can occupy the top spot for theupcoming months, they said. Peter Richardson, VicePresident and Research Director of Tech Strategies atCounterpoint, said, “Huawei is leading the China market,which started to recover relatively quickly at almost thesame time when many other markets around the worldunderwent lockdowns,” the China Daily added. It is worthnoting that China's smartphone market failed to maintainstrong growth momentum in May. The latest data from theChina Academy of Information and CommunicationsTechnology, a government think tank, showed that over32.66 million smartphones were shipped out of factories toretailers in China in May, a year-on-year decline of 10.4%.

Meanwhile, the lawyers of Huawei Chief Financial OfficerMeng Wanzhou raised new arguments in her extraditioncase before Canadian courts. A PowerPoint presentationthat Meng gave to an HSBC banker in Hong Kong in 2013has been cited as key evidence against her. In thatpresentation, Meng said that Skycom Tech Co – a firm thatoperated in Iran and was subject to U.S. sanctions – was“a business partner of Huawei,” while the United Stateshas described it as an unofficial subsidiary. Meng’s lawyersargued the prosecutors omitted key disclosures Mengmade in the presentation, thereby presenting a misleadingpicture. The lawyers also said that a USD900 million creditfacility that the U.S. said HSBC had extended to Huaweidid not exist. Rather Huawei was in a USD1.6 billion creditarrangement with 26 banks, and HSBC’s total contributionwas limited to USD80 million, they argued.

New documents also show that Canada’s spy servicesworked together with the FBI prior to Meng’s arrest at onDecember 1, 2018, which indicated that the case waspolitical rather than legal, violating Meng’s rights andinvalidating the U.S. extradition case, the lawyers argued.

FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

IT & TELECOMU.S. to allow companies to work with Huawei on setting 5G standards

The United States authorities amended a prohibitionon U.S. companies doing business with China’sHuawei to allow them to work together on settingstandards for next-generation 5G networks. The U.S.Commerce Department and other agencies signed off onthe rule change, which was published in the FederalRegister. “The United States will not cede leadership inglobal innovation,” U.S. Commerce Secretary Wilbur Rosssaid. “The Department is committed to protecting U.S.national security and foreign policy interests byencouraging U.S. industry to fully engage and advocate forU.S. technologies to become international standards.” TheCommerce Department noted that U.S. participation instandards-setting “influences the future of 5G, autonomousvehicles, artificial intelligence and other cutting-edgetechnologies.” 5G networks are expected to powereverything from high-speed video transmissions to self-driving cars.

Analysts observed this did not signify an easing of the U.S.assault on Huawei. Last year, the United States placedHuawei on the Commerce Department’s so-called entitylist, which restricted sales of U.S. goods and technology tothe company, citing national security. Industry andgovernment officials said the Huawei entity listing put theUnited States at a disadvantage in standards settings.The new rule came in response to concerns from U.S.companies and lawmakers. “Confusion stemming from theMay 2019 entity list update had inadvertently sidelined U.S.companies from some technical standards conversations,putting them at a strategic disadvantage,” said NaomiWilson, Senior Director of Policy for Asia at the InformationTechnology Industry Council, as reported by the ShanghaiDaily.

“This is not a friendly gesture by the U.S., but simply areflection on its part that it is too late and too expensive forany country to develop its own 5G standard,” JefferiesEquity Analyst Edison Lee said. He added that feedbackfrom U.S. tech companies likely convinced the Trumpadministration that it is not realistic for the U.S. to create itsown version of 5G. Large U.S. firms, including Intel Corpand Qualcomm, have already contributed plenty to 5Gstandards under the 3rd Generation Partnership Project(3GPP). In a statement, Huawei said it wants “to continueholding sincere discussions in relation to standards for new

technologies with our counterparts, including those in theU.S.”, the South China Morning Post adds.

The Global Times reported that on a global basis, Huaweihas the highest number of declared 5G patents at 2,386patent families, followed by LG with 1,388 patent familiesand Samsung with 1,353 patent families, according toGreyB Services and Amplified AI. Huawei overtookSamsung to become the world's largest smartphonemaker in April, despite the double challenges of the U.S.government’s tightened restrictions and the Covid-19outbreak's economic fallout. Huawei accounted for 21%of the global smartphone market in April, thanks toreviving smartphone shipments in China. In comparison,Samsung saw its market share stand at 19%, amid Covid-19-related lockdowns in markets such as India, accordingto market research company Counterpoint. This is the firsttime Huawei has surpassed Samsung, after the companyexpressed in 2016 its aim to be the world's No 1smartphone maker within five years.

Experts said Huawei's ascent against all the odds reflectsthe company's popularity among Chinese consumers, butchallenges still exist for its overseas businesses. It remainsto be seen whether Huawei can occupy the top spot for theupcoming months, they said. Peter Richardson, VicePresident and Research Director of Tech Strategies atCounterpoint, said, “Huawei is leading the China market,which started to recover relatively quickly at almost thesame time when many other markets around the worldunderwent lockdowns,” the China Daily added. It is worthnoting that China's smartphone market failed to maintainstrong growth momentum in May. The latest data from theChina Academy of Information and CommunicationsTechnology, a government think tank, showed that over32.66 million smartphones were shipped out of factories toretailers in China in May, a year-on-year decline of 10.4%.

Meanwhile, the lawyers of Huawei Chief Financial OfficerMeng Wanzhou raised new arguments in her extraditioncase before Canadian courts. A PowerPoint presentationthat Meng gave to an HSBC banker in Hong Kong in 2013has been cited as key evidence against her. In thatpresentation, Meng said that Skycom Tech Co – a firm thatoperated in Iran and was subject to U.S. sanctions – was“a business partner of Huawei,” while the United Stateshas described it as an unofficial subsidiary. Meng’s lawyersargued the prosecutors omitted key disclosures Mengmade in the presentation, thereby presenting a misleadingpicture. The lawyers also said that a USD900 million creditfacility that the U.S. said HSBC had extended to Huaweidid not exist. Rather Huawei was in a USD1.6 billion creditarrangement with 26 banks, and HSBC’s total contributionwas limited to USD80 million, they argued.

New documents also show that Canada’s spy servicesworked together with the FBI prior to Meng’s arrest at onDecember 1, 2018, which indicated that the case waspolitical rather than legal, violating Meng’s rights andinvalidating the U.S. extradition case, the lawyers argued.

FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

Foreign tech companies join building of new infrastructure

Foreign tech companies are joining China's efforts toaccelerate construction of new infrastructure,including cloud computing, 5G and artificialintelligence as they continue seeing robust local demandfor their cutting-edge products and services. Mark Gibbs,President of SAP China, said the new infrastructureinitiative “reflects China’s long-term view and willingness toinvest ahead of the curve. Compared with traditionalinfrastructure investment, the new infrastructure programhas a strong technology focus. For instance, 5G willrevolutionize the way business and people interconnectaround the world,” Gibbs said, adding that the companywill align its strategies to the initiative. Currently, theGerman software and cloud services provider is alreadyseeing growing local demand for its cloud computingservices amid the Covid-19 pandemic. In the first quarter,SAP inked a deal with Anta, a leading Chinese sportswearcompany, which was broadcast live on SAP S/4HANA, anext-generation, intelligent enterprise resource planningbusiness suite. “In challenging times, technology needs tobe viewed as a business enabler to improve agility andresponsiveness. Successful companies of tomorrow wouldbe the ones that have invested and will keep investing intechnologies to stay agile,” Gibbs said.

The concept of new infrastructure has also for the first timebeen included in China’s Government Work Report for

2020, which vowed to develop next-generation informationnetworks and expand 5G applications, build more EVcharging facilities, promote the wider use of new-energyautomobiles, stimulate new consumer demand, andpromote industrial upgrading. Wu Hao, Director of theDepartment of High-Tech Industry at the NationalDevelopment and Reform Commission (NDRC), said thatunlike traditional infrastructure such as railways, highwaysand airports, the new type of infrastructure projects includenew infrastructure for digital transformation, intelligentupgrades, and innovative development. “Led by newdevelopment concepts, the new infrastructure is driven bytechnological innovation and is based on informationnetworks to meet the needs of high-quality development,”Wu said. Xiang Ligang, Director General of the InformationConsumption Alliance, said new infrastructure will bringopportunities not just for domestic companies, but also forforeign tech enterprises which have long-termdevelopment plans in China.

Yang Xu, President of Intel China, said the country'semphasis on new infrastructure will help the nation betterupgrade its industries from large-scale manufacturing tovalue-added services. He said the company's chip plantsin Dalian, Liaoning province, and Chengdu, Sichuanprovince, have been working nonstop amid the outbreak.

Alain Crozier, Chairman and CEO of Microsoft China, saidthe Covid-19 outbreak has affected the company'splanning and strategy to a certain extent, but it stillmaintains confidence in the Chinese market in 2020. Theurgent demand for remote working solutions during theoutbreak has caused many enterprises and organizationsto take notice of Microsoft Teams, which is a key elementof Microsoft 365, Crozier said. “During the outbreak, wesaw so many great examples of schools continuing theirclasses during quarantine using technology, doctorshelping patients via video conferencing, and companiescontinuing to operate with employees working from homein China using our technology,” Crozier added. “Obviously,China is leading the modern workplace evolution, and italso provides a valuable reference for companies in othercountries and regions fighting the pandemic,” he said, asreported by the China Daily.

FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

Foreign tech companies join building of new infrastructure

Foreign tech companies are joining China's efforts toaccelerate construction of new infrastructure,including cloud computing, 5G and artificialintelligence as they continue seeing robust local demandfor their cutting-edge products and services. Mark Gibbs,President of SAP China, said the new infrastructureinitiative “reflects China’s long-term view and willingness toinvest ahead of the curve. Compared with traditionalinfrastructure investment, the new infrastructure programhas a strong technology focus. For instance, 5G willrevolutionize the way business and people interconnectaround the world,” Gibbs said, adding that the companywill align its strategies to the initiative. Currently, theGerman software and cloud services provider is alreadyseeing growing local demand for its cloud computingservices amid the Covid-19 pandemic. In the first quarter,SAP inked a deal with Anta, a leading Chinese sportswearcompany, which was broadcast live on SAP S/4HANA, anext-generation, intelligent enterprise resource planningbusiness suite. “In challenging times, technology needs tobe viewed as a business enabler to improve agility andresponsiveness. Successful companies of tomorrow wouldbe the ones that have invested and will keep investing intechnologies to stay agile,” Gibbs said.

The concept of new infrastructure has also for the first timebeen included in China’s Government Work Report for

2020, which vowed to develop next-generation informationnetworks and expand 5G applications, build more EVcharging facilities, promote the wider use of new-energyautomobiles, stimulate new consumer demand, andpromote industrial upgrading. Wu Hao, Director of theDepartment of High-Tech Industry at the NationalDevelopment and Reform Commission (NDRC), said thatunlike traditional infrastructure such as railways, highwaysand airports, the new type of infrastructure projects includenew infrastructure for digital transformation, intelligentupgrades, and innovative development. “Led by newdevelopment concepts, the new infrastructure is driven bytechnological innovation and is based on informationnetworks to meet the needs of high-quality development,”Wu said. Xiang Ligang, Director General of the InformationConsumption Alliance, said new infrastructure will bringopportunities not just for domestic companies, but also forforeign tech enterprises which have long-termdevelopment plans in China.

Yang Xu, President of Intel China, said the country'semphasis on new infrastructure will help the nation betterupgrade its industries from large-scale manufacturing tovalue-added services. He said the company's chip plantsin Dalian, Liaoning province, and Chengdu, Sichuanprovince, have been working nonstop amid the outbreak.

Alain Crozier, Chairman and CEO of Microsoft China, saidthe Covid-19 outbreak has affected the company'splanning and strategy to a certain extent, but it stillmaintains confidence in the Chinese market in 2020. Theurgent demand for remote working solutions during theoutbreak has caused many enterprises and organizationsto take notice of Microsoft Teams, which is a key elementof Microsoft 365, Crozier said. “During the outbreak, wesaw so many great examples of schools continuing theirclasses during quarantine using technology, doctorshelping patients via video conferencing, and companiescontinuing to operate with employees working from homein China using our technology,” Crozier added. “Obviously,China is leading the modern workplace evolution, and italso provides a valuable reference for companies in othercountries and regions fighting the pandemic,” he said, asreported by the China Daily.

FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

CHINA NEWS ROUND-UP22nd EU-China bilateral summit held via videoconferenceOn June 22, the EU and China held their bilateralsummit for the first time by videoconference. Inattendance were President of the European Council,Charles Michel, President of the European Commission,Ursula von der Leyen, High Representative Josep Borrell,and Chinese Prime Minister Li Keqiang, while ChinesePresident Xi Jinping also made an appearance. Accordingto the press release by the EU Delegation in Beijing,President Michel said: “EU-China relations have evolved inrecent years. Our economic interdependency is high, andwe must work together on global challenges like climateaction, meeting the Sustainable Development Goals ordealing with Covid-19. Engaging and cooperating withChina is both an opportunity and necessity. But, at thesame time, we have to recognize that we do not share thesame values, political systems, or approach tomultilateralism. We will engage in a clear-eyed andconfident way, robustly defending EU interests andstanding firm on our values.”

President von der Leyen added: “The Covid-pandemic anda number of major bilateral and multilateral challengesshow clearly the EU-China partnership is crucial, be it interms of trade, climate, technology, and the defense ofmultilateralism. But for our relations to develop further, theymust become more rules-based and reciprocal, in order toachieve a real level playing-field.” The EU recalled theimportant commitments made at the 2019 EU-ChinaSummit and stressed the need for the implementation ofthese commitments in a dynamic and result orientedmanner as progress today is limited. The EU stronglyemphasized the need to advance negotiations for anambitious EU-China Comprehensive InvestmentAgreement that addresses the current asymmetries inmarket access and ensures a level playing field. Urgentprogress is needed in particular on behavior of State-Owned Enterprises, transparency on subsidies and rulestackling forced transfers of technology. On Hong Kong, theEU reiterated its grave concerns at steps taken by China toimpose national security legislation and considers thosesteps not in conformity with the Hong Kong Basic Law andChina’s international commitments. At a press conferenceafter the summit, von der Leyen said: “we also conveyedthat China risks very negative consequences if it goesforward with imposing this law.” But she sidesteppedquestions as to the exact measures the EU would take.

Chinese President Xi Jinping stressed that there is nofundamental conflict between China and the EU, andcooperation outweighs competition, so does consensusthat exceeds divergences. China is a partner to the EUrather than being a rival. The Chinese President urged thetwo sides to become major forces of safeguarding globalpeace and stability. Chinese Premier Li Keqiang reaffirmedthat both sides were committed to concluding the China-EU Comprehensive Investment Agreement in 2020. The30th round of negotiations on the investment treaty isscheduled to be held between June 29 and July 3, theGlobal Times reports.

Cargo helping airlines tide over hard times Air cargo is playing an increasingly important role inthe fight against Covid-19, as a substantial number ofpassenger aircraft have been grounded due to thepandemic. Cargo flights have been growing in number andfrequency between China and 84 international destinationsin 51 nations and regions, according to VariFlight, aChinese aviation data and solutions services provider. InMay, the number of outbound cargo flights from theChinese mainland reached 4,910, surging 113.66% year-on-year. The number of inbound cargo flights came in at4,383, jumping 93.42% year-on-year, said VariFlight. Thedata only included designated freighters and didn't includecargo aircraft that have been converted from passengeraircraft.

In late May, the Ministry of Finance and the Civil AviationAdministration of China (CAAC) said they will providefinancial support for both Chinese and foreign carriers whocarry out cargo deliveries using commercial aircraft in orderto cushion them from the Covid-19 impact. Airlines canreceive 80% compensation for costs involved in convertingpassenger aircraft into freighters, and they will receivefinancial incentives for flying international cargo flightsbetween April 1 and June 30. “The policy itself is moresymbolic than substantive. Although the cost compensationcan hardly make up for the loss in passenger flights, themeasures are sending signals that the governmentsupports airlines' international cargo operations. Thesupportive measures will help streamline and strengthenglobal freight transport capacity,” said Aviation IndustryAnalyst Lin Zhijie. “At this stage, international cargo flightsare more profitable”, he said.

Meanwhile, China's domestic air travel market is graduallypicking up after being ravaged for months by the Covid-19pandemic. In May, 25.8 million people traveled by air bothdomestically and overseas, down 52.6% year-on-year,while the decline was 15.9 percentage points less than thatrecorded in April. The transportation volume by freightersreached 228,000 metric tons, growing 21.8% year-on-year,according to CAAC. Eastern Air Logistics Co, the freightunit of Shanghai-based China Eastern Airlines, will convert14 wide-body passenger aircraft into cargo carriers, thuscreating the largest passenger aircraft-converted wide-body fleet in the domestic market. Chengdu, Sichuanprovince-based Sichuan Airlines, has adjusted its flightnetwork. In the first four months, sales revenue at SichuanAirlines were only 30% of the amount recorded a yearearlier. At its worst point during the coronavirus pandemic,the carrier suffered reduced revenue of CNY70 milliondaily, the China Daily reports.

Online sales rebound, aided by discountsOnlIne merchants and brands have seen a rebound inspending on consumer goods and electronic gadgetsafter offering big discounts. Among them is homeappliance vendor JD, which marked the anniversary of its

FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

CHINA NEWS ROUND-UP22nd EU-China bilateral summit held via videoconferenceOn June 22, the EU and China held their bilateralsummit for the first time by videoconference. Inattendance were President of the European Council,Charles Michel, President of the European Commission,Ursula von der Leyen, High Representative Josep Borrell,and Chinese Prime Minister Li Keqiang, while ChinesePresident Xi Jinping also made an appearance. Accordingto the press release by the EU Delegation in Beijing,President Michel said: “EU-China relations have evolved inrecent years. Our economic interdependency is high, andwe must work together on global challenges like climateaction, meeting the Sustainable Development Goals ordealing with Covid-19. Engaging and cooperating withChina is both an opportunity and necessity. But, at thesame time, we have to recognize that we do not share thesame values, political systems, or approach tomultilateralism. We will engage in a clear-eyed andconfident way, robustly defending EU interests andstanding firm on our values.”

President von der Leyen added: “The Covid-pandemic anda number of major bilateral and multilateral challengesshow clearly the EU-China partnership is crucial, be it interms of trade, climate, technology, and the defense ofmultilateralism. But for our relations to develop further, theymust become more rules-based and reciprocal, in order toachieve a real level playing-field.” The EU recalled theimportant commitments made at the 2019 EU-ChinaSummit and stressed the need for the implementation ofthese commitments in a dynamic and result orientedmanner as progress today is limited. The EU stronglyemphasized the need to advance negotiations for anambitious EU-China Comprehensive InvestmentAgreement that addresses the current asymmetries inmarket access and ensures a level playing field. Urgentprogress is needed in particular on behavior of State-Owned Enterprises, transparency on subsidies and rulestackling forced transfers of technology. On Hong Kong, theEU reiterated its grave concerns at steps taken by China toimpose national security legislation and considers thosesteps not in conformity with the Hong Kong Basic Law andChina’s international commitments. At a press conferenceafter the summit, von der Leyen said: “we also conveyedthat China risks very negative consequences if it goesforward with imposing this law.” But she sidesteppedquestions as to the exact measures the EU would take.

Chinese President Xi Jinping stressed that there is nofundamental conflict between China and the EU, andcooperation outweighs competition, so does consensusthat exceeds divergences. China is a partner to the EUrather than being a rival. The Chinese President urged thetwo sides to become major forces of safeguarding globalpeace and stability. Chinese Premier Li Keqiang reaffirmedthat both sides were committed to concluding the China-EU Comprehensive Investment Agreement in 2020. The30th round of negotiations on the investment treaty isscheduled to be held between June 29 and July 3, theGlobal Times reports.

Cargo helping airlines tide over hard times Air cargo is playing an increasingly important role inthe fight against Covid-19, as a substantial number ofpassenger aircraft have been grounded due to thepandemic. Cargo flights have been growing in number andfrequency between China and 84 international destinationsin 51 nations and regions, according to VariFlight, aChinese aviation data and solutions services provider. InMay, the number of outbound cargo flights from theChinese mainland reached 4,910, surging 113.66% year-on-year. The number of inbound cargo flights came in at4,383, jumping 93.42% year-on-year, said VariFlight. Thedata only included designated freighters and didn't includecargo aircraft that have been converted from passengeraircraft.

In late May, the Ministry of Finance and the Civil AviationAdministration of China (CAAC) said they will providefinancial support for both Chinese and foreign carriers whocarry out cargo deliveries using commercial aircraft in orderto cushion them from the Covid-19 impact. Airlines canreceive 80% compensation for costs involved in convertingpassenger aircraft into freighters, and they will receivefinancial incentives for flying international cargo flightsbetween April 1 and June 30. “The policy itself is moresymbolic than substantive. Although the cost compensationcan hardly make up for the loss in passenger flights, themeasures are sending signals that the governmentsupports airlines' international cargo operations. Thesupportive measures will help streamline and strengthenglobal freight transport capacity,” said Aviation IndustryAnalyst Lin Zhijie. “At this stage, international cargo flightsare more profitable”, he said.

Meanwhile, China's domestic air travel market is graduallypicking up after being ravaged for months by the Covid-19pandemic. In May, 25.8 million people traveled by air bothdomestically and overseas, down 52.6% year-on-year,while the decline was 15.9 percentage points less than thatrecorded in April. The transportation volume by freightersreached 228,000 metric tons, growing 21.8% year-on-year,according to CAAC. Eastern Air Logistics Co, the freightunit of Shanghai-based China Eastern Airlines, will convert14 wide-body passenger aircraft into cargo carriers, thuscreating the largest passenger aircraft-converted wide-body fleet in the domestic market. Chengdu, Sichuanprovince-based Sichuan Airlines, has adjusted its flightnetwork. In the first four months, sales revenue at SichuanAirlines were only 30% of the amount recorded a yearearlier. At its worst point during the coronavirus pandemic,the carrier suffered reduced revenue of CNY70 milliondaily, the China Daily reports.

Online sales rebound, aided by discountsOnlIne merchants and brands have seen a rebound inspending on consumer goods and electronic gadgetsafter offering big discounts. Among them is homeappliance vendor JD, which marked the anniversary of its

FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

founding in Beijing on June 18, 1998 with its deepestdiscounts of the year. It extended its promotional campaignto cover June 1 to June 20 in recent years, and manymajor online retailers also leveraged the occasion. Tmallsaid sales in the first hour of June 18 doubled from thesame period last year. Close to one million caterers andfood vendors have joined Alibaba’s local services affiliate,eleme. Suning staged a five-and-a-half-hour entertainmentshow with transactions made during the live-streamingsessions totaling CNY5 billion. Apple, Midea, Gree, Haierand Huawei were among the top-selling brands. JD-backed Dada Group, which operates the JD Daojia onlinegrocery platform, said sales from June 6 to June 14 hadincreased 138% over last year. The number of onlineorders dispatched by its Dada delivery unit jumped 73%over that period, as it offers delivery for JD as well asonline orders from supermarkets and physical stores.Sales of outdoor touring and camping equipment jumpedon Tmall, with sales on June 16 surpassing CNY100million.

Kantar Worldpanel said in the four weeks ending May 15,China’s overall fast-moving consumer-spending valueachieved growth of 4.6%. From mid February to midMay, e-commerce sales increased 42%, while salesthrough hypermarkets, supermarkets and conveniencestores dipped 1%. “It’s never been so important tostimulate consumption given the coronavirus outbreak, andbrands that usually don’t actively participate in such eventssigned up for the event to reboot sales and make up forlosses during the epidemic,” said Chen Wen, OliverWyman’s principal. Online channels have become anessential platform for new launches and to compensate forthe loss of physical store sales. Adidas said it expectssecond-quarter sales in China to be about the same as lastyear, with the decline in foot traffic offset by an increase inonline spending. Delivery companies promised to put moreeffort into speed and efficiency, the Shanghai Daily reports.

China’s overall retail sales still dropped 2.8% lastmonth from a year earlier, but the decline narrowed from7.5% in April and 20.5% in January and Februarycombined. Revenues for catering enterprises also fell18.9%, but this was better than the fall of 31.1% in April.Car-related sales revenue rose 3.5% from a year earlier inMay, as many cities, including Beijing, relaxed purchaserestrictions. But with temperature and contact trackingchecks returning to shopping districts in Beijing,uncertainties over China’s growth prospects continue.Beijing, which contributes around 3.6% of the nationaleconomic output, reported its gross domestic product(GDP) fell by 6.6% in the first quarter this year – roughly inline with the national decline of 6.8%, the South ChinaMorning Post adds.

Number of weekly flights between U.S.and China increased The United States and China have announced they willeach allow four weekly flights between the twocountries, easing travel restrictions in the midst of thecoronavirus pandemic. The U.S government still hopesChina will agree to restore full U.S. flight rights under theirbilateral aviation agreement, the U.S. Transportation

Department said in its revised order on China flights. “Asthe Chinese government allows more flights by U..Scarriers, we will reciprocate,” it said. The United States hadthreatened to bar Chinese passenger flights on June 16due to Beijing’s curbs on U.S. airlines, and has raisedconcerns about the number of charter flights Chinesecarriers want to fly. Among U.S. airlines, Delta Air Linesand United Airlines had each sought to restart dailypassenger flights to China in June, but changed their plansin the absence of government approval. Following China’sagreement to allow four U.S. flights in total, Delta said itwould operate two flights to Shanghai from Seattle thisweek and one weekly flight from Seattle and Detroitbeginning in July, all via Seoul. United said it was aiming torelaunch service to China in the weeks ahead, theShanghai Daily reports.

Other airlines also announced plans to resume flightsto China. Air France announced it will resume services toShanghai with one flight a week and gradually increase thefrequency of passenger flights pending governmentapproval, travel restrictions and customer demand. AirFrance currently operates 27 cargo flights per week toChina. Air New Zealand also resumed its Auckland-Shanghai route, using a Boeing 787-9. Lufthansa, VirginAtlantic and other airlines have received approvals toresume flights to Shanghai. According to the Civil AviationAdministration of China (CAAC), from June 8, foreignairlines can choose a port city with reception capability andfly one flight per week, but they must first obtain an accesscertificate from the local airport. However, the regulator haswarned that the policy has a circuit-breaker mechanismthat means if all passengers on one airline route testnegative for three consecutive weeks, the airline will bepermitted one additional flight. If five passengers on a flighttest positive, the airline in question will be required to haltoperations for a week, and if 10 test positive it mustsuspend operations for four weeks, the Global Timesreports. The CAAC said passenger traffic in May was25.83 million, an increase of 54.54% from the previousmonth.

New home prices increase faster in May China’s new home prices climbed at a faster pace inMay due to the unleashing of pent-up demand thatbuilt up during the coronavirus outbreak, according tothe National Bureau of Statistics (NBS). In the fourgateway cities, new home prices rose by 0.7% from amonth ago, accelerating from April’s 0.2% gain. Shanghailed with an increase of 0.8%, while Beijing, Guangzhouand Shenzhen recorded month-over-month increases of0.5%, 0.3% and 0.6% respectively, according to theBureau, which monitors housing prices in 70 majorChinese cities. In the pre-occupied housing market, pricesin the four top-tier cities jumped 1.1% on average,unchanged from a month ago. They rose in Beijing andShenzhen by 1.8% and 1.6%, while Shanghai andGuangzhou experienced milder gains of 0.6% and 0.4%.

In 31 second-tier cities and 35 third-tier cities, new homeprices increased an average of 0.6% and 0.7%, both up by0.1 percentage point from April. Prices of existing homes insecond-tier cities advanced 0.4%, unchanged from April,

FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

founding in Beijing on June 18, 1998 with its deepestdiscounts of the year. It extended its promotional campaignto cover June 1 to June 20 in recent years, and manymajor online retailers also leveraged the occasion. Tmallsaid sales in the first hour of June 18 doubled from thesame period last year. Close to one million caterers andfood vendors have joined Alibaba’s local services affiliate,eleme. Suning staged a five-and-a-half-hour entertainmentshow with transactions made during the live-streamingsessions totaling CNY5 billion. Apple, Midea, Gree, Haierand Huawei were among the top-selling brands. JD-backed Dada Group, which operates the JD Daojia onlinegrocery platform, said sales from June 6 to June 14 hadincreased 138% over last year. The number of onlineorders dispatched by its Dada delivery unit jumped 73%over that period, as it offers delivery for JD as well asonline orders from supermarkets and physical stores.Sales of outdoor touring and camping equipment jumpedon Tmall, with sales on June 16 surpassing CNY100million.

Kantar Worldpanel said in the four weeks ending May 15,China’s overall fast-moving consumer-spending valueachieved growth of 4.6%. From mid February to midMay, e-commerce sales increased 42%, while salesthrough hypermarkets, supermarkets and conveniencestores dipped 1%. “It’s never been so important tostimulate consumption given the coronavirus outbreak, andbrands that usually don’t actively participate in such eventssigned up for the event to reboot sales and make up forlosses during the epidemic,” said Chen Wen, OliverWyman’s principal. Online channels have become anessential platform for new launches and to compensate forthe loss of physical store sales. Adidas said it expectssecond-quarter sales in China to be about the same as lastyear, with the decline in foot traffic offset by an increase inonline spending. Delivery companies promised to put moreeffort into speed and efficiency, the Shanghai Daily reports.

China’s overall retail sales still dropped 2.8% lastmonth from a year earlier, but the decline narrowed from7.5% in April and 20.5% in January and Februarycombined. Revenues for catering enterprises also fell18.9%, but this was better than the fall of 31.1% in April.Car-related sales revenue rose 3.5% from a year earlier inMay, as many cities, including Beijing, relaxed purchaserestrictions. But with temperature and contact trackingchecks returning to shopping districts in Beijing,uncertainties over China’s growth prospects continue.Beijing, which contributes around 3.6% of the nationaleconomic output, reported its gross domestic product(GDP) fell by 6.6% in the first quarter this year – roughly inline with the national decline of 6.8%, the South ChinaMorning Post adds.

Number of weekly flights between U.S.and China increased The United States and China have announced they willeach allow four weekly flights between the twocountries, easing travel restrictions in the midst of thecoronavirus pandemic. The U.S government still hopesChina will agree to restore full U.S. flight rights under theirbilateral aviation agreement, the U.S. Transportation

Department said in its revised order on China flights. “Asthe Chinese government allows more flights by U..Scarriers, we will reciprocate,” it said. The United States hadthreatened to bar Chinese passenger flights on June 16due to Beijing’s curbs on U.S. airlines, and has raisedconcerns about the number of charter flights Chinesecarriers want to fly. Among U.S. airlines, Delta Air Linesand United Airlines had each sought to restart dailypassenger flights to China in June, but changed their plansin the absence of government approval. Following China’sagreement to allow four U.S. flights in total, Delta said itwould operate two flights to Shanghai from Seattle thisweek and one weekly flight from Seattle and Detroitbeginning in July, all via Seoul. United said it was aiming torelaunch service to China in the weeks ahead, theShanghai Daily reports.

Other airlines also announced plans to resume flightsto China. Air France announced it will resume services toShanghai with one flight a week and gradually increase thefrequency of passenger flights pending governmentapproval, travel restrictions and customer demand. AirFrance currently operates 27 cargo flights per week toChina. Air New Zealand also resumed its Auckland-Shanghai route, using a Boeing 787-9. Lufthansa, VirginAtlantic and other airlines have received approvals toresume flights to Shanghai. According to the Civil AviationAdministration of China (CAAC), from June 8, foreignairlines can choose a port city with reception capability andfly one flight per week, but they must first obtain an accesscertificate from the local airport. However, the regulator haswarned that the policy has a circuit-breaker mechanismthat means if all passengers on one airline route testnegative for three consecutive weeks, the airline will bepermitted one additional flight. If five passengers on a flighttest positive, the airline in question will be required to haltoperations for a week, and if 10 test positive it mustsuspend operations for four weeks, the Global Timesreports. The CAAC said passenger traffic in May was25.83 million, an increase of 54.54% from the previousmonth.

New home prices increase faster in May China’s new home prices climbed at a faster pace inMay due to the unleashing of pent-up demand thatbuilt up during the coronavirus outbreak, according tothe National Bureau of Statistics (NBS). In the fourgateway cities, new home prices rose by 0.7% from amonth ago, accelerating from April’s 0.2% gain. Shanghailed with an increase of 0.8%, while Beijing, Guangzhouand Shenzhen recorded month-over-month increases of0.5%, 0.3% and 0.6% respectively, according to theBureau, which monitors housing prices in 70 majorChinese cities. In the pre-occupied housing market, pricesin the four top-tier cities jumped 1.1% on average,unchanged from a month ago. They rose in Beijing andShenzhen by 1.8% and 1.6%, while Shanghai andGuangzhou experienced milder gains of 0.6% and 0.4%.

In 31 second-tier cities and 35 third-tier cities, new homeprices increased an average of 0.6% and 0.7%, both up by0.1 percentage point from April. Prices of existing homes insecond-tier cities advanced 0.4%, unchanged from April,

FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

and gained 0.3% in third-tier cities, accelerating fromApril’s 0.2% growth. “The country’s residential propertymarket remained generally stable last month withinsignificant price increases recorded along with acontinuous, orderly resumption of work and production inmajor cities across the country,” said Kong Peng, ChiefStatistician at the Bureau. Nationwide, new home prices inYinchuan in the Ningxia Hui Autonomous Region jumped2.1% in May, the largest month-on-month increase.

On a year-on-year basis, prices of new homes rose by2.9%, 5.4% and 4.8% respectively in first-, second- andthird-tier cities, compared to growth of 2.9%, 5.6% and5.1% recorded a month earlier. In the pre-occupied market,they rose 4.1%, 2% and 2.1% in first-, second- and third-tier cities, compared with 3%, 2.2% and 2.4% respectivelyin April. The improving momentum came with a nationwiderecovery in sales. Between January and May, more thanCNY4.12 trillion worth of new homes, excludinggovernment-subsidized affordable housing, were soldaround the country, a year-on-year drop of 8.4%, butcontinuously improving from the 16.5% decreaseregistered in the first four months, the Shanghai Dailyreports.

U.S.-China trade increases amid calls forlowering of tariffsTrade between China and the United States rosesharply in April from the previous month amid the Covid-19 pandemic, making China its largest trading partner.Trade between the two countries increased to USD39.7billion in April, up over 40% from March, surpassingMexico and Canada. Overall U.S. imports fell by 13.7% toUSD200.7 billion in April while exports fell by 20.5% toUSD151.3 billion, with the deficit widening by 16.7% toUSD49.4 billion in the month, according to data from theU.S. Commerce Department. The World Bank has saidthe global economy is on track to shrink by 5.2% this year,while expecting the Chinese economy to grow by 1%.“China looks like it could be the biggest engine of globalGDP growth in 2020 and maybe 2021,” according to CraigAllen, President of the U.S.-China Business Council, theShanghai Daily reports.

There are rising calls in China for the U.S. to furtherremove higher tariffs on Chinese products, as part ofefforts to create better conditions for both sides toimplement the phase one trade agreement. U.S. officialshave reportedly rejected requests from U.S. businesses fortariff exemptions on Chinese supplies. The U.S. TradeRepresentative has rejected 66% of the nearly 53,000requests from American businesses asking for tariffexemptions. The U.S. has maintained tariffs on aboutUSD360 billion worth of Chinese imports, despite itspledge to remove the tariffs gradually as part of the phaseone deal.

Chinese Vice Premier Liu He, who heads the Chinese sidein trade negotiations with the U.S., hinted in remarks to afinancial forum in Shanghai that both sides should do moreto carry out the deal. “Conditions and an environmentshould be created, and disturbances should be eliminated

to jointly implement the China-U.S. phase one tradeagreement," Liu said. In Washington, U.S. TradeRepresentative (USTR) Robert Lighthizer defended thephase one deal, saying that China was still carrying out thetrade agreement despite the Covid-19 pandemic. “Everyindication is that in spite of Covid-19, they are going to dowhat they say,” he told U.S. lawmakers, adding that Chinahas purchased USD10 billion worth of U.S. agriculturalproducts.

Meanwhile, Chinese State Councilor Yang Jiechi met U.S.Secretary of State Mike Pompeo for about seven hours inHawaii. The Chinese side characterized the discussions as“constructive”.

Shanghai's Hongqiao simplifies work and residence permits procedureExpats in Shanghai’s Hongqiao area will be able toapply for the work and residence permits via a singleservice window at the city’s first community-level foreigntalent service center. The service will be available soon atthe Hongqiao Foreigner Talent Service Center at GubeiCivic Center, 99 Fugui Road E, Changning district, as oneof the new measures to serve professionals working in thedowntown district. Currently, expats in Gubei have to go tothe Hongqiao One-stop Service Center of Overseas Talenton Jinzhong Road to apply for the work and residencepermits, which is 10 kilometers by car and about an houron public transport. The service center in Gubei also plansto open the first community-level site for the HSK test forChinese language proficiency among non-native speakers,said Executive Deputy Director Qin Yiwen. Since it openedin October 2018, the center has issued work permits for180 expats along with temporary residence registration for2,200 people from overseas. It has also offeredconsultation services on entry, taxation and law for 880people, Qin said.

Over 32,000 residents from 50 countries and regions live inGubei’s Ronghua neighborhood, one of the city’s earliestand biggest international communities. Changning districthas released a set of 20 policies to better serve and attractprofessionals, mainly related to the scientific innovationsector. Changning aims to become a gathering place forscientific innovation professionals, and a high-qualityinternational urban district. The new measures will mainlyserve and attract talent in key industries such as seniormanagement and R&D officials of the headquarters ofmultinational companies as well as in aviation services,fashion innovation, internet plus life services, artificialintelligence (AI) and the finance industry. Newly hired staffwith master’s or doctor’s degrees, for instance, can receiveadditional subsidies and preferential housing policies fromthe district government. An internship program will belaunched to allow young professionals to be trained atgovernment bodies and companies with subsidies.

To better serve foreign talent, Changning also plans toestablish a startup base. Those who want to base theirstartups in Changning are entitled to discounts on rents,housing subsidies, subsidized loans, maker spaces andfast administrative approvals, the Shanghai Daily reports.

FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

and gained 0.3% in third-tier cities, accelerating fromApril’s 0.2% growth. “The country’s residential propertymarket remained generally stable last month withinsignificant price increases recorded along with acontinuous, orderly resumption of work and production inmajor cities across the country,” said Kong Peng, ChiefStatistician at the Bureau. Nationwide, new home prices inYinchuan in the Ningxia Hui Autonomous Region jumped2.1% in May, the largest month-on-month increase.

On a year-on-year basis, prices of new homes rose by2.9%, 5.4% and 4.8% respectively in first-, second- andthird-tier cities, compared to growth of 2.9%, 5.6% and5.1% recorded a month earlier. In the pre-occupied market,they rose 4.1%, 2% and 2.1% in first-, second- and third-tier cities, compared with 3%, 2.2% and 2.4% respectivelyin April. The improving momentum came with a nationwiderecovery in sales. Between January and May, more thanCNY4.12 trillion worth of new homes, excludinggovernment-subsidized affordable housing, were soldaround the country, a year-on-year drop of 8.4%, butcontinuously improving from the 16.5% decreaseregistered in the first four months, the Shanghai Dailyreports.

U.S.-China trade increases amid calls forlowering of tariffsTrade between China and the United States rosesharply in April from the previous month amid the Covid-19 pandemic, making China its largest trading partner.Trade between the two countries increased to USD39.7billion in April, up over 40% from March, surpassingMexico and Canada. Overall U.S. imports fell by 13.7% toUSD200.7 billion in April while exports fell by 20.5% toUSD151.3 billion, with the deficit widening by 16.7% toUSD49.4 billion in the month, according to data from theU.S. Commerce Department. The World Bank has saidthe global economy is on track to shrink by 5.2% this year,while expecting the Chinese economy to grow by 1%.“China looks like it could be the biggest engine of globalGDP growth in 2020 and maybe 2021,” according to CraigAllen, President of the U.S.-China Business Council, theShanghai Daily reports.

There are rising calls in China for the U.S. to furtherremove higher tariffs on Chinese products, as part ofefforts to create better conditions for both sides toimplement the phase one trade agreement. U.S. officialshave reportedly rejected requests from U.S. businesses fortariff exemptions on Chinese supplies. The U.S. TradeRepresentative has rejected 66% of the nearly 53,000requests from American businesses asking for tariffexemptions. The U.S. has maintained tariffs on aboutUSD360 billion worth of Chinese imports, despite itspledge to remove the tariffs gradually as part of the phaseone deal.

Chinese Vice Premier Liu He, who heads the Chinese sidein trade negotiations with the U.S., hinted in remarks to afinancial forum in Shanghai that both sides should do moreto carry out the deal. “Conditions and an environmentshould be created, and disturbances should be eliminated

to jointly implement the China-U.S. phase one tradeagreement," Liu said. In Washington, U.S. TradeRepresentative (USTR) Robert Lighthizer defended thephase one deal, saying that China was still carrying out thetrade agreement despite the Covid-19 pandemic. “Everyindication is that in spite of Covid-19, they are going to dowhat they say,” he told U.S. lawmakers, adding that Chinahas purchased USD10 billion worth of U.S. agriculturalproducts.

Meanwhile, Chinese State Councilor Yang Jiechi met U.S.Secretary of State Mike Pompeo for about seven hours inHawaii. The Chinese side characterized the discussions as“constructive”.

Shanghai's Hongqiao simplifies work and residence permits procedureExpats in Shanghai’s Hongqiao area will be able toapply for the work and residence permits via a singleservice window at the city’s first community-level foreigntalent service center. The service will be available soon atthe Hongqiao Foreigner Talent Service Center at GubeiCivic Center, 99 Fugui Road E, Changning district, as oneof the new measures to serve professionals working in thedowntown district. Currently, expats in Gubei have to go tothe Hongqiao One-stop Service Center of Overseas Talenton Jinzhong Road to apply for the work and residencepermits, which is 10 kilometers by car and about an houron public transport. The service center in Gubei also plansto open the first community-level site for the HSK test forChinese language proficiency among non-native speakers,said Executive Deputy Director Qin Yiwen. Since it openedin October 2018, the center has issued work permits for180 expats along with temporary residence registration for2,200 people from overseas. It has also offeredconsultation services on entry, taxation and law for 880people, Qin said.

Over 32,000 residents from 50 countries and regions live inGubei’s Ronghua neighborhood, one of the city’s earliestand biggest international communities. Changning districthas released a set of 20 policies to better serve and attractprofessionals, mainly related to the scientific innovationsector. Changning aims to become a gathering place forscientific innovation professionals, and a high-qualityinternational urban district. The new measures will mainlyserve and attract talent in key industries such as seniormanagement and R&D officials of the headquarters ofmultinational companies as well as in aviation services,fashion innovation, internet plus life services, artificialintelligence (AI) and the finance industry. Newly hired staffwith master’s or doctor’s degrees, for instance, can receiveadditional subsidies and preferential housing policies fromthe district government. An internship program will belaunched to allow young professionals to be trained atgovernment bodies and companies with subsidies.

To better serve foreign talent, Changning also plans toestablish a startup base. Those who want to base theirstartups in Changning are entitled to discounts on rents,housing subsidies, subsidized loans, maker spaces andfast administrative approvals, the Shanghai Daily reports.

FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

Your banner at the FCCC website or newsletterCompanies interested in posting a banner/anadvertisement on the FCCC website or FCCC weeklynewsletter are kindly invited to contact the FCCC at:info@flanders-china.be

Organisation and founding members of theFlanders- China Chamber of CommerceChairmanMr. Stefaan Vanhooren, President Agfa Graphics,Member of the Executive Committee of the Agfa GevaertGroup, NV THE AGFA-GEVAERT GROUP SA

Vice-ChairmenMr. Bart De Smet, Chief Executive Officer, NV AGEAS SAMr. Philippe Van der Donckt, Director Government AffairsAsia, NV UMICORE SA

Secretary and TreasurerWim Eraly, Senior General Manager, NV KBC Bank SA

Executive DirectorMs. Gwenn Sonck

Members of the Board of Directors and FoundingMembers:Mr. Stefaan Vanhooren, President Agfa Graphics, Memberof the Executive Committee of the Agfa Gevaert Group, NVTHE AGFA-GEVAERT GROUP SAMr. Carl Peeters, Chief Financial Officer, NV AHLERS SAMr. Filip Pintelon, Senior Vice President, GM Healthcare, NV BARCO SAMr. Philip Eyskens, General Counsel, Senior Vice

President Legal IP GRC, NV BEKAERT SAMr. Philip Hermans, General Manager, NV DEME SAMr. Bart De Smet, Chief Executive Officer, NV AGEAS SAMr. Wim Eraly, Head of Corporate and Transaction Banking, KBC Bank SAMr. Johan Verstraete, Vice-President Marketing, Sales &Services Weaving Solutions, NV PICANOL SAMr. Philippe Van der Donckt, Director Government AffairsAsia, NV UMICORE SA

Membership rates for 2019 (excl. VAT)● SMEs: €405 (€490.05 incl. VAT)● Large enterprises: €1,025 (€1,240.25 incl. VAT)

ContactFlanders-China Chamber of CommerceOffice: Ajuinlei 1, B-9000 Gent, BelgiumNew telephone and fax numbers:T ++32/9/269.52.46F ++32/9/269.52.99E info@flanders-china.beW www.flanders-china.be

Share your storyTo send your input for publication in a future newslettermail to: info@flanders-china.be The FCCC Newsletters are edited by Michel Lens,who is based in Beijing and can be contacted by e-mailmichel.jc.lens@gmail.com

Disclaimer: the views expressed in this newsletter are notnecessarily those of the FCCC or its Board of Directors.

FCCC-VCKK – CHINA BUSINESS WEEKLY 25 JUNE 2020

Your banner at the FCCC website or newsletterCompanies interested in posting a banner/anadvertisement on the FCCC website or FCCC weeklynewsletter are kindly invited to contact the FCCC at:info@flanders-china.be

Organisation and founding members of theFlanders- China Chamber of CommerceChairmanMr. Stefaan Vanhooren, President Agfa Graphics,Member of the Executive Committee of the Agfa GevaertGroup, NV THE AGFA-GEVAERT GROUP SA

Vice-ChairmenMr. Bart De Smet, Chief Executive Officer, NV AGEAS SAMr. Philippe Van der Donckt, Director Government AffairsAsia, NV UMICORE SA

Secretary and TreasurerWim Eraly, Senior General Manager, NV KBC Bank SA

Executive DirectorMs. Gwenn Sonck

Members of the Board of Directors and FoundingMembers:Mr. Stefaan Vanhooren, President Agfa Graphics, Memberof the Executive Committee of the Agfa Gevaert Group, NVTHE AGFA-GEVAERT GROUP SAMr. Carl Peeters, Chief Financial Officer, NV AHLERS SAMr. Filip Pintelon, Senior Vice President, GM Healthcare, NV BARCO SAMr. Philip Eyskens, General Counsel, Senior Vice

President Legal IP GRC, NV BEKAERT SAMr. Philip Hermans, General Manager, NV DEME SAMr. Bart De Smet, Chief Executive Officer, NV AGEAS SAMr. Wim Eraly, Head of Corporate and Transaction Banking, KBC Bank SAMr. Johan Verstraete, Vice-President Marketing, Sales &Services Weaving Solutions, NV PICANOL SAMr. Philippe Van der Donckt, Director Government AffairsAsia, NV UMICORE SA

Membership rates for 2019 (excl. VAT)● SMEs: €405 (€490.05 incl. VAT)● Large enterprises: €1,025 (€1,240.25 incl. VAT)

ContactFlanders-China Chamber of CommerceOffice: Ajuinlei 1, B-9000 Gent, BelgiumNew telephone and fax numbers:T ++32/9/269.52.46F ++32/9/269.52.99E info@flanders-china.beW www.flanders-china.be

Share your storyTo send your input for publication in a future newslettermail to: info@flanders-china.be The FCCC Newsletters are edited by Michel Lens,who is based in Beijing and can be contacted by e-mailmichel.jc.lens@gmail.com

Disclaimer: the views expressed in this newsletter are notnecessarily those of the FCCC or its Board of Directors.