Business
US Farm Deals With South Korea and Japan to Limit China Trade War Retaliation
News Analysis
The Trump administration’s new farm deal with South Korea and the passage of Japanese agricultural import legislation undermine China’s trade war retaliation strategy.
China’s trade war retaliation strategy, which is aimed at economically targeting President Donald Trump’s rural voting base, took two huge hits this month. South Korea ended its four-year rice ban on Nov. 19 and agreed to allow rice imports of at least 132,304 tons annually. Shortly thereafter, Japanese Prime Minister Shinzo Abe overcame opposition in the Lower House for a potentially huge American beef, pork and corn import deal.
China has employed a sophisticated U.S. voter targeting methodology to maximize the economic pain of its retaliatory trade war tariffs in so-called U.S. “battleground” counties that President Trump will need to win in the 2020 elections, according to a study by the U.S. Bureau of Economic Research.
There has been an uptick in farm bankruptcies, mostly due to weather issues, but the U.S. Department of Agriculture forecasts 2019 farm income will increase by $4 billion, or 4.8 percent, to $88 billion in 2019, after rising in both 2017 and 2018. The USDA report added that 2019 farm income will be in the top 30 percent after inflation.
The Chinese strategy has inflicted substantial economic pain on its own households, with China food inflation rising from 11.2 percent in September to 15.5 percent in October, the highest since January 2008. Bloomberg warned that China’s monthly consumer inflation surged past 3 percent in September and could exceed 4 percent in early 2020 on the back of surging pork and other meat prices.
The ratio of Chinese household debt to gross domestic product rose by 2.1 percentage points in the first six months of 2019 to 55.3 per cent, according to Beijing think tank National Institution for Finance and Development. With China accounting for 15 percent of global debt, NIFD warned the strain of heavy debt and high inflation is hurting consumption.
Domestic inflation is credited with forcing China on Nov. 13 to lift its…
Business
BRICS: China Classifies Crypto as Property and Prohibits Business Ownership
China’s Shanghai court ruled cryptocurrencies are property, boosting optimism in the crypto industry while maintaining a ban on business transactions. This may signal a shift in future regulations.
China’s Ruling on Cryptocurrency
In a pivotal decision for the nation and its BRICS alliance, China has officially classified cryptocurrency as property while maintaining prohibitions against business transactions involving digital assets. A notable ruling from the Shanghai Songjiant People’s Court affirmed cryptocurrencies as property, sparking optimism within the crypto industry regarding future regulations.
Implications for the Crypto Industry
As cryptocurrencies gain significance globally, the Chinese ruling is viewed as a potential-positive shift amidst ongoing restrictions. While individuals can hold virtual currency, businesses remain barred from engaging in investment transactions or issuing tokens independently. This decision has generated anticipation for more accommodating regulations in the future.
Future Prospects for Cryptocurrency in China
Experts like Max Keiser believe this ruling indicates China’s growing acknowledgment of Bitcoin’s influence. As BRICS nations explore increased cryptocurrency utilization in trade, this legal shift could enhance market demand and lead to greater acceptance of cryptocurrencies as a legitimate asset class, setting the stage for potential developments in 2025.
Source : BRICS: China Rules Crypto as Property, Bars Business Holdings
Business
Wegovy: The Popular Weight-Loss Drug Now Available in China
Novo Nordisk launched Wegovy in China after approval, competing with Eli Lilly’s upcoming weight-loss drug. The treatment, costing 1,400 yuan, targets obesity but has potential side effects and isn’t covered by healthcare.
Wegovy Launch in China
Novo Nordisk recently launched its weight-loss drug, Wegovy, in China after obtaining approval from local health authorities in June. The introduction of Wegovy is expected to increase competition with Eli Lilly, which has also received approval for its weight-loss treatment, although it has not yet been released in China’s significant pharmaceutical market.
Cost and Accessibility
In China, a set of four Wegovy injections will be priced at 1,400 yuan (approximately $194), significantly lower than the drug’s U.S. price. However, patients will need to pay the full amount out of pocket since Wegovy is not yet covered by the national healthcare insurance plan.
Benefits and Side Effects
Research indicates that Wegovy can help users lose over 10% of their body weight. The drug contains semaglutide, which assists with appetite control and satiety. While Wegovy has been gaining traction globally, it may cause side effects like nausea. Concerns have emerged about its misuse among individuals who are not obese, prompting medical professionals to remain vigilant.
Source : Popular weight-loss drug Wegovy goes on sale in China
Business
China’s Golden Rooster Film Festival Kicks Off in Xiamen – Thailand Business News
The 2024 China Golden Rooster and Hundred Flowers Film Festival began in Xiamen on Nov 13, featuring awards, cultural projects worth 31.63 billion yuan, and fostering international film collaborations.
2024 China Golden Rooster and Hundred Flowers Film Festival Opens
The 2024 China Golden Rooster and Hundred Flowers Film Festival commenced in Xiamen, Fujian province, on November 13. This prestigious event showcases the top film awards in China and spans four days, concluding with the China Golden Rooster Awards ceremony on November 16.
The festival features various film exhibitions, including the Golden Rooster Mainland Film Section and the Golden Rooster International Film Section. These showcases aim to highlight the achievements of Chinese-language films and foster global cultural exchanges within the film industry.
On the festival’s opening day, a significant milestone was reached with the signing of 175 cultural and film projects, valued at 31.63 billion yuan ($4.36 billion). Additionally, the International Film and Television Copyright Service Platform was launched, furthering the globalization of Chinese film and television properties.
Source : China’s Golden Rooster film festival opens in Xiamen – Thailand Business News
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