Quick Take: China Shortens the 2020 Negative Lists

Yesterday China announced another reduction to its Negative Lists, which are the lists of sectors prohibited or restricted for foreign investment. While there were no surprises and most of the reductions had been included in the Phase One trade deal, the move is important symbolically and in reality. The key, however, will be to monitor approvals of applications submitted under these newly opened sectors. Here's a quick summary of the reductions that were made in this latest round.

NPC Update: What Policy Themes Might Emerge?

The annual National People’s Congress (NPC) meetings – delayed since March due to the pandemic – will begin on May 22 in Beijing. The fact that the session will be held in-person is a milestone in China’s return to normalcy. COVID-19 will dominate the agenda along with how to spur the economy, particularly getting consumer spending back on track and helping the small and medium-sized enterprises. Most closely watched will be the setting of the economic growth target – a centerpiece of this meeting in normal times. We expect to see either a move away from setting the target or a lowering to potentially 3% – from the previous 6% target.

Quick Take: COVID-19 fatigue? Here’s what you need to know this week

This week, we have analysis and insight fatigue with all things COVID-19. This fatigue is one of the lesser-known side effects of this pandemic, and apparently even people in Washington, DC do not have the antibodies to be immune. Even so, the pace of important bilateral developments this week was relentless. Here are a few noteworthy developments summarized below … with limited analysis.

Quick Take: New Low in China Rhetoric - and What it Could Mean for Businesses

There is so much vitriol directed at China and coming from China over the past couple of weeks. In this Quick Take, we take a look at how wild the rhetoric has become, share some thoughts about what this new low could mean, and about the new risk for businesses to navigate.

Quick Take: What's New with China's Latest Roadmap to Marketize Production Factors?

China issues a new roadmap to marketize production factors, including land, labor, capital, and data. While much of these proposed reforms have been debated for decades, the economic impact of the virus may create renewed political will to move forward. If successfully implemented, these changes would be transformational for the Chinese economy. Here is a summary of the guidelines.

Quick Take: The Backlash against China Begins

As a glimmer of hope has appeared in the fight against COVID-19 in the United States as cases start to stabilize in New York, attention is turning to who should pay for the economic harm and loss of life resulting from the spread of the coronavirus. From Capitol Hill to the churches, there are increasing calls for China to take responsibility for the rapid global spread of the virus. The argument is that the world was not prepared for the severity and rapid spread because China withheld scientific information and downplayed the actual numbers of people infected. Here's our latest observations about the growing backlash against China and future implications.

China's Returning Workforce Sector and City Tracking

Based on public sources and briefings, we have compiled a tracking sheet for the percentage of China’s workforce returning in various sectors and in key provinces and cities since the initial shutdowns in China started on January 23, 2020. This document will be updated regularly.

Quick Take: China Shows Signs of Recovery While Virus Hits Rest of the World

With so much of the media coverage shifting attention to the coronavirus turning into a pandemic and the spread in the U.S., here are a few of the developments in China over the past week you might have missed.

Quick Take: Coronavirus Latest – Implications for Business

The coronavirus’ rapid spread is hitting the Chinese – and global – economy during the Lunar New Year celebrations, a major driver of consumer growth. While China has acted swiftly to curb domestic and international travel, cancel holiday celebrations, and extend the Lunar festival holidays, developments are fast-moving. Here's what you need to know about the implications for business.

Quick Take: What Else You Should Know about the Phase One Trade Deal with China

A lot has been written summarizing the phase one deal with China, but there are a few aspects of the agreement that are worth highlighting along with some of the implications now that this agreement has been signed. Here’s our take on what else you should know.

China’s State Councilor Kicks Off Africa Tour with Egypt

This past week, China’s State Councilor and Foreign Minister, Wang Yi, started his annual trip to Africa with his first stop in Egypt. The tradition of making the first foreign trip of the year to Egypt demonstrates the importance China has made relations with the country. Egypt is an essential part of its strategic plan for the Middle East and North Africa as well as a hub for the Belt and Road Initiative (BRI).

Quick Take: What Should be in a Phase Two China Trade Deal?

The phase one trade deal will be signed on January 15, and consideration is being given to what a phase two negotiation should include. Here's our take on what could and should be in the second round.

Quick Take: China's Economic Work Conference

Last month, China held its annual Central Economic Work Conference which lays out economic priorities for the year. Here's what you need to know as you consider your 2020 China market strategy.

PRESS RELEASE: Edelman and Basilinna partner to offer integrated China and Middle East-focused public affairs and communications services

‍New York City, 18 December 2019: Edelman, the world’s leading communications and public affairs firm, and Basilinna, a Washington, D.C.-based strategic consulting company, have entered into an exclusive partnership designed to provide multinational China-and Middle East-based clients of both firms with expanded communications and government relations services in China, the Middle East and the United States.

Quick Take: A Phase One Trade Deal - At Long Last

China and the United States announce a phase one trade deal (at long last), but details will not be available for a few weeks. Based on meetings with the Administration and the Chinese, press reports, and public statements, here is what we have learned.

Bloomberg Daybreak: Debt Remains a Key Issue for Chinese Economy

On September 1st 2019, Basilinna CEO Deborah Lehr was featured on "Bloomberg Daybreak Americas" to discuss China's pivot to consumer & SME growth, China’s strategy as they head into trade negotiations with the U.S. next month, the effect of the 2020 candidates on U.S.-China relations, and the impact of events in Hong Kong on U.S.-China trade talks.

Bloomberg: Biggest Issue of Trade Talks Is Enforcement of Commitments

On August 1, 2019, Basilinna CEO Deborah Lehr was featured on "Bloomberg Markets: Asia" discussing the U.S.-China trade negotiations, including the biggest sticking point of the talks, the implications of the coming 2020 election, the Chinese negotiators and agricultural purchases by China.

Quick Take: Belt and Road Forum Attempts to Address Growing Criticism

President Xi Jinping presided over China’s Second Belt and Road Forum last week in Beijing amidst growing international criticism. Here’s our quick take on what you need to know.

Quick Take: Huawei Under Pressure: Implications for Chinese Tech

The developments around the high-profile arrest of Huawei’s CFO has created a media frenzy, launched a range of conspiracy theories and increased speculation about the role of Chinese telecom equipment providers globally. The following is a succinct summary of the salient facts of the case and its potential implications.

Quick Take: U.S.-China Trade Moves Forward: Market Opening, Liu He to DC, and Another Big Xi Speech

China’s Ministry of Commerce (MOFCOM) on Friday quietly announced concrete steps to revise and eliminate restrictions set forth in their centrally administered Negative List on inbound foreign investment. In addition, the Vice President Liu He's upcoming visit to Washington and President Xi's speech in December celebrating the 40th anniversary of opening up and reform both show the intention to bring further market openings.

China-Egypt Tourism surges solidifying bilateral ties

Few nations boast a richer cultural lineage than China or Egypt. To draw a line from their present to their past is to trace the evolution of human civilization. Despite this shared global relevance, until recently the two nations have remained isolated by geographical circumstance. Now that is beginning to change as Chinese tourists flock to Egypt in record numbers.

China has cut back the "negative list" for foreign investment. See an overview of the changes on our infographic.

Faithful Five: Navigating Business During Ramadan

Quick Take: U.S.-China Trade Talks, Where are we this week?

Vice Premier Liu He arrives next week for second round of trade talks, likely late next week Focus will be on reducing the trade deficit through increasing purchases, market access for key products, tech transfer, and intellectual property rights Finding some kind of resolution on ZTE will be a Chinese priority

Implications of the Egyptian Presidential Elections: Interview with Ambassador Yasser Elnaggar

In an interview, Ambassador Yasser Elnaggar, CEO of ENInvestment and Basilinna Senior Advisor, provides insights on the implications of Egypt's Presidential election for its economy and foreign affairs.

Quick Take: Egypt's Presidential elections produces expected results. What does another Sisi term mean?

As expected, President Abdel Fattah El-Sisi secured a second term this past March, receiving 97 percent of the votes but with only 41% voter turn out. Expect to see continued focus on growing the economy, including eliminating government subsidies, opening new sectors to foreign investment, and job creation. On foreign affairs, close ties will continue with the United States and China.

Quick Take: China's new financial "Dream Team" signals opening up

What comes next after China's financial "Dream Team" was announced? Opening up of China's financial sector to foreign firms is a priority of the newly announced leadership coming out of the National People’s Congress. The financial sector leadership announced last week is the most Westernized and technically experienced to date.

NPC Update: At last, the new leadership announced

‍China announced its new state leadership today, with only a few surprises. The most interesting “statement” however, was that in all government-issued organizational charts, Vice President Wang Qishan is ranked as the number two in the government, ahead of Premier Li Keqiang. Totally unprecedented

NPC Update: Slow Start

The 13th session of the National People’s Congress (NPC)—China’s nearly 3,000-delegate parliament—began on Monday, March 5th with an address from Premier Li Keqiang about the state of the economy. In it, he cited a GDP growth target of “about 6.5 percent,” and a commitment to managing macro-level financial risks.

NPC Update: Fact Sheet

Each March, the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC) convene to approve the work plans for the next year in what is commonly known as the “Two Meetings,” or Lianghui. The NPC annual meeting brings together 2,980 deputies from the provinces, the military, and the central government in Beijing. Given the significant personnel changes over the past five years, almost 75 percent of the delegates will be new.

Auspicious Eight: A Chinese New Year primer

Green team results

Five Facts You Didn’t Know About Chinese Tourism: Fact 5

Five Facts You Didn’t Know About Chinese Tourism: Fact 4

"The End Of The Asian Century", by Michael Auslin

Trends across key indicators -- from disparate demographics, slowing economies, military might, environmental degradation and the lack of cohesiveness amongst the Asian countries -- all threaten to undermine the Asian powerhouse.