Weblog with daily updates of the news on a frugal, fair and beautiful China, from the perspective of internet entrepreneur, new media advisor and president of the China Speakers Bureau Fons Tuinstra
“When the Chinese get good at something, all of the sudden, the United States says, ‘This is a national security risk’”, says Shanghai-based business analyst Shaun Rein on the tech arms race between China and the US, where Huawei, TikTok, and others got into trouble in the US, in his interview with Ian Bremmer.
Midea has become China’s most valuable home appliances firm, and 5G and Internet of Things are becoming a driving force in the development of the industry, says Rupert Hoogewerf, chief researcher of the Hurun Report on the release of its latest report, according to the China Daily.
The China Daily:
The top 10 ranking, released by Hurun for the first time, was based on market capitalization or valuation of China’s private home appliance companies.
These companies all have their self-developed brands. However, the ranking excluded consumer electronics companies such as Xiaomi, as well as TCL, which sold its smart terminal business in 2018.
Rupert Hoogewerf, chairman and chief researcher of Hurun Report, said 5G, Internet of Things and big data have huge development prospects for the home appliance industry.
The effect of online channels on the home appliance industry is growing, Hoogewerf said, adding that in China’s home appliance market, which has a market size of 900 billion yuan, online sales account for nearly 40 percent and the ratio is increasing. Tmall and JD have become leading enterprises, and the industry is no longer dominated by Gome and Suning.
China’s home appliance industry has become mature, with total accumulated value of the top three companies accounting for 80 percent of the total, Hoogewerf said.
Except for Galanz Group, the remaining nine are all listed companies, which is rare to see in China, he added.
The businesses of the top 10 home appliance enterprises covers air conditioners, refrigerators, washing machines, soybean milk makers, kitchen ventilators, microwave ovens, robot vacuum cleaners and more.
Geographically, the top 10 list includes four companies from the Guangdong-Hong Kong-Macao Greater Bay Area, four companies from the Yangtze River Delta and the remaining from Beijing and Qingdao.
After a first symbolic truce, the world should brace for the next phase in the trade war between China and the US, warns leading economist Arthur Kroeber, according to Barron's. China has stalled its economic reforms and mechanisms to contain the US power fail, and the technology war is likely to resume, he stresses.
Barron's:
What may be a tactical positive for markets and the global economy is viewed as a strategic negative by those who look at the deal through a longer-term policy lens. “The agreement falls far short of achieving the U.S. goal of forcing China to change its state-led economic system,” writes Arthur Kroeber, founding partner of China research firm Gavekal Dragonomics,in a note to clients. “Instead, it cements a pattern of managed trade reminiscent of Japan’s ‘voluntary’ export restraints in the late 1980s. And it will do nothing to stop further escalation of the two countries’ technology war.”...
The U.S.-China technology war is also likely to escalate, playing out over emerging technologies like 5G. Kroeber says the U.S. is upping pressure on European allies to rethink using gear from China’s Huawei Technologies in their 5G networks. Norway’s telecom utility decided to use Huawei rivals, and German legislators are pushing back against chancellor Angela Merkel’s efforts to keep buying Huawei gear. More Chinese companies could also end up on the U.S. export-control or sanctions blacklists—all of which will push China to further re-energize its investments to reduce its dependence on U.S. suppliers, he adds.
And don’t count out another tariff war emerging after the election. With the Trump administration’s efforts to debilitate the World Trade Organization’s dispute resolution mechanism, Kroeber says there is no effective check on the U.S. ability to engage in unilateral trade actions like tariffs, especially after the election. Kroeber is also skeptical about China’s purchase commitments, adding that it is hard to see how these targets can be met in the real world. That suggests tariff wars could resume in 2021 if the targets aren’t met.
While the world is still trying to come to terms with 5G and China's position on the new technology, China itself is deploying 5G on a large scale. Andy Mok, a non-resident fellow at Center for China and Globalization explains for state-owned CGTN what the consumers might still miss on this development.
CGTN:
Andy Mok, a non-resident fellow at Center for China and Globalization, stated that 5G was more than high Internet speed.
"Those '90 percent underwater' part of the 'iceberg' that people didn’t know about 5G would trigger the essential breakthroughs for the industry 4.0," he said.
"All of these applications that are for faster download speed to consumers is sexy, but I think what’s really important is the 90 percent underwater part that people don’t see.
"What 5G is enabling, is hundreds of billions of devices to talk to each other. And that would change every industry, whether we are talking about transportation in driverless cars, health care in telemedicine, urban management with smart cities."
Fintech expert Sara Hsu explains at her YouTube channel why China is eager to speed up the development of its 5G network, and what it means for the rest of the world. How do US and European concerns on cybersecurity relate to China's development, ZTE, and Huawei, and how does it relates to you. Sara Hsu is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers' request form. Are you looking for more fintech experts at the China Speakers Bureau? Do check out this list.
