Good Morning. Welcome to The Wire’s daily news roundup. Each day, our staff gathers the top China business, finance, and economics headlines from a selection of the world’s leading news organizations.
The Wall Street Journal
- Businesses to Slash Overseas Investment Amid Pandemic Risks — New overseas investments will fall by 40% this year and as much as 10% next year, according to new United Nations forecasts, as disruptions from the coronavirus push multinationals to bring production closer to home.
- U.S. Further Loosens Restrictions on Chinese Airline Flights — The Trump administration further eased plans to restrict passenger flights by mainland Chinese airlines to the U.S. after China said it would permit more passenger flights by the US. airlines.
- Huawei CFO’s Lawyers Say She Is Falsely Accused by U.S. — Lawyers for Huawei finance chief Meng Wanzhou told a Canadian court that the U.S. has wrongly accused her of lying to banks about the Chinese company’s business ties to Iran.
- When China’s Aggressive Debt Collectors Come Knocking: ‘You Committed a Sin’ — In China, banks and internet lenders trying to collect on a growing pile of overdue credit-card bills and personal loans are resorting to sometimes aggressive tactics to get borrowers to repay.
The Financial Times
- Huawei/trade war: dialling it back — The US has mounted a global campaign to rid telecoms networks of equipment made by Huawei, which it accuses of spying. Now, it is tempering its hostility, tweaking rules to let US companies work with the Chinese group in setting standards for 5G networks. The move is belated and any benefits to investors would be limited.
- Shares in China telecoms groups rise as US eases Huawei sanctions — Shares in Chinese telecoms companies jumped on Tuesday after the US watered down some of its biting sanctions on Chinese technology giant Huawei, over fears it was inadvertently excluding itself from global talks shaping future technologies.
- Commodity exporters look to demand from China to boost recovery — Commodity traders are counting on China for a further recovery in natural resource markets. The country accounts for 30 per cent of the world’s key commodity imports, is two months ahead of the west in easing lockdowns and has used weak prices to stockpile through the crisis.
The New York Times
- As Meat Plants Stayed Open to Feed Americans, Exports to China Surged — While lobbying to keep operating during the pandemic, the U.S. industry sent a record amount of pork to a country vital to its growth.
- China Reports Progress in Ultra-Secure Satellite Transmission — Chinese scientists report new progress in building what appears to be the first unbreakable information link between an orbiting craft and its terrestrial controllers, raising the odds that Beijing may one day possess a super-secure global communications network.
Caixin
- China’s Former Top Insurance Regulator Sentenced to 11 Years in Prison for Bribery — What’s new: Xiang Junbo, a former chairman of the now-defunct China Insurance Regulatory Commission (CIRC), has been sentenced to 11 years behind bars and fined 1.5 million yuan ($211,477) for taking bribes, a court ruled Tuesday.
- Sichuan Trust Mobbed by Investors Demanding Their Money Back — Hundreds of investors descended on the headquarters of Sichuan Trust Co. Ltd. in southwestern China on Monday to demand their money back after the company failed to repay principal and interest on investment products that matured last month, Caixin has learned.
- BYD Raises Extra $113 Million To Boost Semiconductor Unit Output — The semiconductor unit of electric-car giant BYD Co. Ltd. has raised another 800 million yuan ($113 million), just weeks after it raised 1.9 billion yuan, as it seeks to expand its client base beyond its own use.
- Chart of the Day: China’s Steel Output Hits Record High in May — China churned out more steel in May than in any month since records began in 1986, according to data from the National Bureau of Statistics, as some segments of the economy bounce back from the pandemic.
- Chinese Ride-Hailing Giant Didi to Launch Cargo Delivery Service — Didi Chuxing will launch an intra-city cargo delivery service in the Chinese cities of Chengdu and Hangzhou as part of efforts to push into the already crowded on-demand logistics market.
- NEV Battery Maker BAK Show Signs of Stalling as Customers Fail to Pay — China’s new energy car sector may be running out of juice, with cracks appearing throughout the supply chain as Beijing tries to wean the group from state support.
South China Morning Post
- Could the China-US conflict evolve into two competing spheres of economic influence? — The increasingly contentious relationship between China and the United States is putting pressure on countries to choose sides, with the Covid-19 pandemic accelerating the process of nations stepping away from each other rather than tackling the crisis together.
- US tech firms to remain involved with Huawei on 5G standards as Washington eases hard line — Major US companies will remain engaged in developing a global 5G mobile standard, as Washington seeks to keep them in the same room as Huawei Technologies, which is already ahead in drawing up the specifications.
- China-US close encounters ‘raise conflict risk in South China Sea’ — China and the US are running the risk of conflict and should come up with a way to manage such crises as their warships engage in close encounters in the South China Sea, according to maritime strategy specialists.
- Cloud computing adoption accelerates in China as economy recovers from coronavirus pandemic — China’s cloud service spending soared amid the economic disruptions caused by Covid-19 and the strong growth will continue as the economy regains momentum in the post pandemic era, according to a report.
Bloomberg
- China Starts Intensive Testing of Imported Meat for Coronavirus — China’s customs authorities have started testing all shipments of imported meat for the coronavirus, while officials in some major cities are also checking the products at domestic markets, after a fresh outbreak of the pathogen was linked to a wholesale seafood and meat market in Beijing.
- Not With a Bang, China Loses Landmark WTO Dispute Against EU — China spent four years fighting for market-economy status, a designation that would give it stronger footing with commercial partners while also curtailing their ability to retaliate over trade disputes.
- CNPC, Petronas Risk Halt to South Sudan Exports on Pollution — A human-rights group in South Sudan is seeking an injunction to stop companies including China Petroleum Corp. and Petroliam Nasional Bhd. exporting oil — the lifeblood of the nation’s war-ravaged economy.
- Hong Kong Jobless Rate Hits 15-Year High Amid Virus, Unrest — Hong Kong’s unemployment rate rose to the highest level in 15 years in May, in the wake of the coronavirus shutdowns and renewed anti-government protests.
- Banks Face $300 Million Shortfall on Luckin Margin Loans — Banks including Credit Suisse Group AG and Morgan Stanley face a $300 million shortfall on margin loans to the embattled founder of Luckin Coffee Inc.
- China Likely to Ease Coal Mine Closures to Meet Rising Needs — China will likely ease the pressure on local governments to shut older, inefficient coal mines as it seeks to meet rising demand of the most-polluting fuel to spur its economic recovery.
Reuters
- China’s COVID-19 vaccine candidate shows promise in human trials, CNBG says — China National Biotec Group (CNBG) said on Tuesday its experimental coronavirus vaccine has triggered antibodies in clinical trials and the company plans late-stage human trials in foreign countries.
- China’s Sinopec starts up new Zhanjiang refinery complex — Top Chinese state refiner Sinopec Corp said on Tuesday it had started up a $6 billion new refinery and petrochemical plant in south China, making it the country’s third integrated complex to start operations in the past 18 months or so.
- China’s economy may grow 3% in 2020, government researcher says — China’s economy may grow 3% this year as the government ramps up policy support, said Zhang Ming, a researcher at the Chinese Academy of Social Sciences, a top government think tank.
- Chinese capital and provinces impose travel curbs as coronavirus cases mount — The Chinese capital banned high-risk people from leaving and curbed public transport on Tuesday to stop the spread of the most serious coronavirus flare-up since February, which has stoked fears of a second wave of infections.
- Breakingviews – China’s $9 bln classifieds buyout is an easy sale — The largest buyout of a U.S-listed Chinese company looks like an easy sale. A group including private equity firms Warburg Pincus and General Atlantic is leading an $8.7 billion deal for classifieds site 58.com. The 20% premium is decent for a business that has fallen out of favour and provides a clean exit from an inhospitable market.
Xinhua
- China’s economy to continue recovery in H2: analysts — China’s economy will see continued recovery in the second half of this year amid a rebound in both investment and consumption, analysts said.
- China’s consumer inflation expected to further moderate: spokesperson — China’s consumer price index (CPI), a main gauge of inflation, is expected to further narrow later this year, an official said Tuesday.
- China to issue 3rd batch of special bonds for COVID-19 control — China will issue the third batch of special government bonds for COVID-19 control amid efforts to balance epidemic control with economic and social development, the Ministry of Finance said Tuesday.
- China launches first hydrogen-powered 5G smart tractor — China’s first hydrogen fuel-cell electric tractor was launched Tuesday by the National Institute of Agro-machinery Innovation and Creation (CHIAIC) in Luoyang in the central province of Henan.
- China’s issuance of enterprise bonds top 193 bln yuan — China had issued 193.03 billion yuan (about 27.28 billion U.S. dollars) worth of enterprise bonds as of June 12, up 38.9 percent year on year, strengthening support to its real economy, country’s top economic planner said Tuesday.
- Chinese company launches new wearable chip — Chinese technology company Huami unveiled its new generation of wearable chip Huangshan 2, Beijing Daily reported on Tuesday.
Other Publications
- Nikkei Asian Review: Japan’s MUFG Bank obtains bond settlement agent license in China — Japan’s MUFG Bank has received a license from the People’s Bank of China to act as a settlement agent in the country’s interbank bond market
- Politico: China hawks eye a new target: Airport jet bridges — A Chinese company once found guilty of stealing information from a U.S. company that manufactures airplane boarding bridges is making a fresh push into American airport markets — and becoming the newest target for anti-China hawks in Congress.
- The Atlantic: Don’t Believe the China Hype — When it comes to assessing Chinese power, things aren’t always as they seem.
