|Bid||45.95 x 0|
|Ask||45.96 x 0|
|Day's Range||44.80 - 46.30|
|52 Week Range||27.00 - 50.07|
|Beta (5Y Monthly)||1.31|
|PE Ratio (TTM)||33.04|
|Earnings Date||Oct 24, 2020|
|Forward Dividend & Yield||0.70 (1.52%)|
|Ex-Dividend Date||May 29, 2020|
|1y Target Est||38.26|
(Bloomberg Opinion) -- For Chinese technology companies, January can't come soon enough.Giants from Huawei Technologies Co. to TikTok owner ByteDance Ltd. can have no doubt left: There will be no let-up in the Trump administration's efforts to entrench its China policy before leaving office. That's undermining hopes that a change of U.S. president might lead to an easing in the technology cold war.The Securities and Exchange Commission's decision to push ahead with a plan that could lead to the delisting of Chinese companies from U.S. stock exchanges is just the latest salvo. Last week, Trump issued an executive order barring investments in Chinese companies that are owned or controlled by the military. Since the Nov. 6 election, the State Department also slapped sanctions on more people accused of undermining Hong Kong's autonomy.U.S. officials have made no secret of their strategy: “Future U.S. presidents will find it politically suicidal to reverse President Trump’s historic actions,” John Ullyot, a spokesman for the National Security Council, said this week. Shifting the goalposts will make it harder for Joe Biden to move them back, assuming the president-elect even wants to.The SEC’s action was unusual. Most agencies stop issuing major new policies after a presidential election, particularly when power has changed hands, as Robert Schmidt and Ben Bain of Bloomberg News reported. The issue of allowing U.S. regulators access to the audits of Chinese companies listed on American markets is a longstanding one. The new regulations have been discussed since at least August and it’s unlikely they will be finalized before Donald Trump’s term ends on Jan. 20. That means completing the task would be left to an SEC chief picked by the incoming president.It may have been fanciful to imagine that the pressure would ease up on China’s technology companies in any case. Global leaders recognize that the core message of Trump’s China policy — that the country is a strategic threat — is here to stay.“It will be very difficult for any administration, whether it’s Biden or on the outside chance, Trump, to disregard that and just proceed as if the last few years had not taken place,” Singapore Prime Minister Lee Hsien-loong said in an interview with Bloomberg Editor-In-Chief John Micklethwait at the New Economy Forum. (That event is organized by Bloomberg Media Group, a division of Bloomberg LP, the parent company of Bloomberg News and Bloomberg Opinion.)Chinese companies may need to wait a long time for embargoes to ease and must face the reality that some will stay forever. Huawei, which has been barred from buying U.S. semiconductors, might be allowed to once again procure chips made with American technology but under still-restrictive terms. A ban on selling telecommunications gear to American firms will probably remain.It’s possible that the Trump administration’s efforts to split video-service TikTok from its Chinese parent will peter out, and a vague attempt to stop the use of Tencent Holdings Ltd.’s WeChat app in the U.S. may be suspended. Other measures, such as the long list of companies placed on the Commerce Department’s entity list, are likely to remain because there’s no political impetus in the U.S. to unwind them. As a result, sanctions on surveillance and artificial intelligence companies such as Hangzhou Hikvision Digital Technology Co., Iflytek Co. and Megvii Technology Ltd. are likely to remain. More names may be added in the coming two months.For China’s technology companies, two months of a lame-duck Trump administration could turn out to be as damaging as the first 46. The best they can hope for is to stay under the radar and not be noticed at all. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The investment ban is the latest effort by the Trump administration to restrict the flow of capital to Chinese companies.
(Bloomberg Opinion) -- As a Biden presidency takes shape in the U.S., it’s worth wondering to what extent the hardline Trumpian stance on China will persist. While a fraying relationship is to some extent priced in, there’s now more to consider.China’s labor market could become a key lever. For all of Beijing’s talk about boosting innovation and productivity to achieve so-called quality growth, little gets said of the hundreds of millions of working people who would actually fulfill President Xi Jinping’s ambitions. They may be the ones holding up the sky.Days before the U.S. election, Beijing unveiled its latest blueprint for the coming five years. It envisions an upgraded economy rooted in technical progress — fifth generation networks, automation, smart factories — and a turn inward, driven by domestic consumers and output. To reach their goals, state planners will need to boost productivity.Yet a larger challenge looms: Can the labor market adapt? If it doesn’t, the quality growth that Xi’s hopes are pinned to won’t materialize, regardless of the heaps of cash thrown at it. Beijing doesn’t want to be held hostage to an unpredictable, volatile or even hostile U.S. This is the backdrop confronting Joe Biden’s presidency over the next four years. How the new U.S. administration understands and navigates China’s own challenges matters.If this isn’t the China of 2016, it’s not the same America, either. The last four years saw President Donald Trump try to reverse job losses in traditional domestic industries. But the U.S. labor market now faces long-term changes because of Covid-19. More than 40% of American jobs lost due to the pandemic will eventually be gone, according to Brookings Institution researchers. China’s focus is on “dual circulation” — a plan to create domestic supply and demand. One effect would be to reduce vulnerability to the kind of powers Trump flexed to choke Chinese tech giants through blacklists and trade restrictions. The likes of Huawei Technologies Co. and Hangzhou Hikvision Digital Technology Co. are trying to cut reliance on American technology. They’ll end up creating jobs at home and overseas in the process.Read More: Can China's Spy-Tech Company Recreate Itself?In China, Covid-19 worsened a slowdown that had already been gathering pace and pushed up unemployment. Manufacturing and sectors that had previously boosted growth were hard hit. As household incomes fell and people started feeling the pain earlier this year, jobs and social stability moved to the top of Beijing’s agenda. Employment was one of the most mentioned words in the 2020 Government Work Report to help navigate the year.There are signs of a turnaround, but does China actually need traditional manufacturing jobs to come back? Something more may be required. Official data suggest that Beijing is close to hitting its employment targets, creating nearly 9 million new urban jobs in the first three quarters. It isn’t clear what kind of work was generated, but state media continues to tout pro-employment measures. Last month, at the State Council’s executive meeting, Premier Li Keqiang noted that the jobless rate “of certain groups of populations and regions remains high.” It’s no longer about the number of jobs, though. What increasingly counts is the type, and how productive they’ll be. The five-year plan’s big push for innovation won’t happen with a shortage of skilled workers. A study in July found that while real gross domestic product has expanded at an average growth rate of 10.5% since 2000, labor efficiency has fallen every year by 0.53%. That implies a negative impact of 2.52% on economic growth. The decline has been geographically uneven, but the researchers conclude “the deterioration in labor efficiency is a comprehensive problem for China’s whole economy.” For now, subsidies and incentives have kept people in jobs and forced companies to retain headcount, but reskilling and upgrading needs to happen. Growth in coming years will depend on how productive each Chinese worker is. High-tech industries depend on that as much as increasing capital. So-called total factor productivity from advanced industries plays a large role in China. The country needs this kind of investment from foreign employers. Last year, a survey found that new jobs offered by overseas companies dropped by 25%.Over the next decade, more than 20% of China’s workforce is expected to be re-employed in high-end manufacturing. Workers will need clearer direction in this new environment on jobs, incomes and benefits. Already, state media is publicizing a host of new jobs like artificial intelligence trainers as officially recognized occupations that can bring big increases in pay. Xi needs a not-too-hostile U.S. president who doesn’t hit China where it could really hurt — social stability. Biden will obviously want to protect American jobs, but also has to take an interest in the global companies creating new ones in the U.S. Being shut out of China’s transformation — if it really happens — would be a big mistake.Ultimately, U.S. policy will have a marginal impact, but would be more effective if Beijing’s priorities are understood. China will look out for its own people. Without jobs, higher incomes and greater corporate competence, Xi’s promises to stay ahead in advanced manufacturing and industrial heft won’t amount to much. Biden needs to contend with this to manage the world’s most important relationship.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Anjani Trivedi is a Bloomberg Opinion columnist covering industrial companies in Asia. She previously worked for the Wall Street Journal. For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.