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
- U.S.-China Trade Deal on Track, Lighthizer Says — The U.S. Trade Representative says friction over China’s crackdown on Hong Kong’s autonomy and its falling behind on purchases of U.S. goods haven’t weakened the accord.
- John Bolton: The Scandal of Trump’s China Policy — The president pleaded with Chinese leader Xi Jinping for domestic political help, subordinated national-security issues to his own re-election prospects and ignored Beijing’s human-rights abuses.
The Financial Times
- Chinese banks: lending an arm and a leg — Saying no to Beijing is not an option
- EU chides China and others for IP breaches — again — Worst offenders continue to drain European businesses of jobs as well as billions of euros in revenues
- Brussels toughens efforts to level the playing field with China — Pandemic adds to urgency as EU adopts harder-headed approach to commercial dealings with Beijing
- Yum China: winging it — Will a Hong Kong listing be a flight to safety or a homecoming?
The New York Times
- China Lashes Out at U.S.’s Action Against Mass Incarcerations — A new law aimed at punishing Chinese officials involved in mass internments of Uighurs and other minorities in Xinjiang came as John Bolton accused President Trump of supporting Beijing’s crackdown.
- Coronavirus Fears in China Find a New Target: Salmon — Suppliers and restaurants are scrambling after an outbreak in Beijing triggered fears that salmon may have spread it. Officials later absolved the fish of blame, but consumers are avoiding it anyway.
- Europe Takes Steps to Block Chinese Bargain Hunters — Amid fear that companies backed by Beijing will use the pandemic to acquire assets on the cheap, political leaders are putting up legal hurdles.
Caixin
- Insurer China Pacific Debuts in London Via Shanghai Stock Connect — Company’s shares rise 1.1% in first day of trading in the U.K.
- In Depth: Progress and Pitfalls for Foreign Investors in China’s Capital Markets — As regulators have opened up mainland markets, foreign money has been pouring in. But there are still obstacles to be overcome
- Rural Bank Targeted in Regulator’s Crackdown on Risk — Bosses ousted, fine levied for illegal shareholder activity and related party transactions
- Beijing Waives Taxes to Attract Foreign Asset Managers to Capital — City’s financial regulator issues guideline for foreign asset managers to set up shop as part of China’s promised opening-up of the financial sector
- China Cracked Down on $212 Million of Financial Corruption in 2019 — Top graft buster at banking and insurance regulator reports 48% rise in number of investigations and discloses probes of senior Huarong officials
- China Signals Further Reserve Ratio Cut to Spur Bank Lending — China will reduce the reserve requirement ratio and use its relending policy to keep liquidity ample, state television reported Wednesday
- Carmaker Geely Moves Forward With Plan for Secondary Listing in Shanghai — Company’s board approves proposal to enter the city’s Nasdaq-like STAR Market
- Didi President Jean Liu to Help Steer Gucci Owner — Kering SA names Liu as a new board member, alongside British actress Emma Watson and former Credit Suisse CEO Tidjane Thiam
- Alibaba Takes Lead in China’s Cloud Services Market — Alibaba, Huawei, Tencent and Baidu collectively controlled 81% of China’s cloud infrastructure services market in the first quarter of 2020, as demand for telecommuting, online education and digital entertainment cloud services increased during the Covid-19 pandemic.
- JD.com Bumps Up in Hong Kong Trading Debut — And then there were three. That’s how many U.S.-listed Chinese tech giants now have second listings in Hong Kong, following the Thursday trading debut of JD.com’s shares in the former British colony.
- TikTok Copycat Zynn Removed from App Stores — A TikTok lookalike has suffered the double whammy of being pulled from the world’s two biggest app stores in less than a week.
- Trending in China: Former Didi Exec Fired for Corruption But People Want to Know How Deep the Rot Goes — A former senior Didi Chuxing executive surnamed Yu has been fired after an internal investigation found he took “huge bribes,” shopping vouchers and even cars in return for his “help” in securing contracts with external suppliers, both Chinese and non-Chinese.
South China Morning Post
- Oppo cancels livestream launch of new 5G phone in India and opts for YouTube video amid rising tensions — Chinese smartphone brand Oppo cancelled the livestream launch of its flagship 5G smartphone in India on Wednesday, amid calls in the country for a boycott of Chinese products after a violent clash between Indian and Chinese troops along their disputed Himalayas border.
- Hong Kong security law: China backs city’s status as financial hub as it brushes aside G7 concerns — China on Thursday moved to allay investor concerns about the impact of a new national security law on Hong Kong’s status as a financial hub, the same day the national legislature pushed ahead with a review of the bill in the face of G7 concerns.
- Hong Kong protests: Taiwan announces humanitarian aid plan for people fleeing city — Taiwan has drawn up a plan to provide humanitarian support, including a basic living allowance, to Hongkongers seeking asylum on the island out of fear they will be prosecuted at home for their alleged involvement in the anti-government protests.
- US wants undersea data cable to skip Hong Kong — US Justice Department officials on Wednesday recommended that a high-capacity undersea data cable system proposed by Google and Facebook bypass Hong Kong, citing potential national security concerns following China’s moves to exert greater control in the city.
- Coronavirus: China bans imported pork from German meat plant after more than 650 infected in outbreak — China on Thursday banned imported pork from a German company after its workers became infected by coronavirus, adding to uncertainty over fresh food shipments to the country amid a new outbreak in Beijing.
- Coronavirus: China calls on banks to give up US$212 billion in profits to finance cheap business lending — China’s government is reaching beyond its monetary policy tool box to free up capital and direct funds towards the nation’s cash-starved businesses to help the economy claw its way out of its worst slump in four decades.
- China FDI up 4.2 per cent in May to US$9.87 billion, marking second straight monthly increase — Foreign direct investment into China rose 4.2 per cent from a year ago in May to US$9.87 billion, marking the second straight monthly increase, although the gain narrowed from an increase of 8.6 per cent in April.
- Coronavirus: Beijing outbreak may deal fatal blow to some small businesses in the capital — Beijing resident Gu Jinfeng had spent weeks preparing to reopen her preschool training centre, rolling out nucleic acid tests for teachers, disinfecting classrooms and slogging through red tape to get official approvals.
- China out to offset coronavirus impact with construction boom, but sustainability in doubt — Questions have been raised as to whether China can sustain the strong construction activity drive intended to aid its economic recovery after seemingly turning to tried and tested infrastructure and property construction to bolster growth and jobs.
Bloomberg
- Taiwan Unexpectedly Keeps Rate on Hold On Strong Economy Outlook — The worst economic damage from the coronavirus is behind Taiwan, according to the central bank, which unexpectedly kept rates unchanged and forecast an upturn in the second half of the year.
- China-India Clashes May Spur Companies to Rework Supply Pacts — The first deadly face-off between Indian and Chinese troops in more than four decades adds another layer of uncertainty to companies already reeling from the coronavirus pandemic on both sides of the border.
- Global Appetite for Chinese Assets Resilient Despite Virus — Global appetite for Chinese assets remained resilient despite the coronavirus disruptions and the backdrop of falling outbound investments, according to a research report.
- Drop in Beijing Traffic Highlights Second-Wave Risks for Oil — The volume of traffic on Beijing roads has fallen sharply this week as authorities attempt to quell a new coronavirus outbreak, highlighting the danger for energy demand if it can’t be brought under control.
- China Raises Renewable Power Subsidies 7.5% to $13 Billion — China boosted its budget for renewable power subsidies to 92.36 billion yuan ($13 billion), 7.5% more than it spent last year.
- Border Conflict Does Little to Damp Chinese Phone Sales in India — OnePlus, a China-based smartphone maker, saw its latest model sold off within minutes in India on Thursday, despite growing calls for boycott of Chinese goods following a border conflict between the Asian neighbors.
- China Bitcoin Mining Gear Maker Launches U.S. IPO: ECM Watch — Ebang International has launched a roadshow for its U.S. initial public offering that could raise as much as $126 million, becoming the second Chinese Bitcoin mining machine maker to seek a U.S. listing.
- JD’s $34 Billion Gala Haul Signals Chinese Consumer Rebound — JD.com Inc. has bagged a record $34 billion of sales during the country’s biggest online shopping gala of the post-pandemic era, suggesting China’s nascent consumer spending recovery has legs.
- Goldman Warns of Declines for U.S. Stocks With High China Sales — U.S. stocks with high levels of sales in China have been on a tear in the recent rally — but that may be about to change because of renewed geopolitical tensions, according to Goldman Sachs Group Inc.
- From Savile Row to Swiss Watches, Luxury Rules Have Changed — Brian Duffy says he knew it would be a good day even before Watches of Switzerland Group Plc opened the doors to its flagship store on London’s Regent Street for the first time since March.
- Can Huawei Face European Antitrust Fines Like Google and Apple? — Europe’s top competition cop is getting creative when it comes to tackling foreign-government subsidies.
- China Pledges Faster Credit Growth as Economy Faces Virus Return — China’s central bank wants the total flow of credit to rise by almost a fifth this year, as part of efforts to push the economy out of the coronavirus-induced slump.
- China Weighs Increased Oversight of Troubled Insurer Huaxia — Chinese regulators are mulling additional measures to stabilize closely-held Huaxia Life Insurance Co. after its operations were pummeled by the virus outbreak, according to people familiar with the matter.
- Pompeo, China’s Yang Pledge Cooperation After Hawaii Meeting — U.S. Secretary of State Michael Pompeo stressed the need for full transparency and information-sharing during the global Covid-19 pandemic and future outbreaks as he met his Chinese counterpart, Yang Jiechi.
Reuters
- U.S. Chamber urges China to accelerate purchases of U.S. goods — The U.S. Chamber of Commerce on Thursday underscored the importance of functional U.S.-China ties and urged Beijing to step up its purchases of U.S. goods and services as agreed under a Phase 1 trade deal despite delays caused by the coronavirus.
- Chanel warns virus impact will linger on luxury sector — The luxury industry will feel the fallout from the coronavirus crisis for the next two years if not longer, Chanel’s chief financial officer said on Thursday, warning the French fashion label’s 2020 revenues and profit would be significantly hit.
- India tells two state firms not to use China telecoms gear, source says — India has told two state-run telecoms firms to use locally-made rather than Chinese telecom equipment to upgrade their mobile networks to 4G, a senior government source said on Thursday.
- U.S.-China tech war bigger risk than coronavirus, EU chamber chief says — The coronavirus has disrupted supply chains and demand across the global economy, but it is the prospect of Europe becoming a casualty in the U.S.-China tech war that keeps the president of the European Chamber in China “awake at night”.
- Chinese interest in Australian property shrinks as diplomatic rift grows — Chinese buyer enquiries for Australian homes fell to their lowest in almost three years in May, according to independent data, suggesting multi-billion dollar housing demand could be another casualty of a diplomatic spat between the two countries.
- China stocks firm as Beijing pledges reforms, liquidity — China stocks firmed on Thursday as policymakers assured investors that the economy is gradually recovering from the coronavirus crisis, while pledging more reforms and liquidity to bolster capital markets.
- U.S. trade chief vows to push for ‘broad reset’ at WTO — The Trump administration will push for a broad reset of “outdated tariff determinations” at the World Trade Organization to fix what it sees as years of unfair treatment of the United States, a top trade official told U.S. lawmakers on Wednesday.
- JPMorgan gets China’s nod for first fully foreign-owned futures business — China on Thursday approved JPMorgan’s application to operate the first fully foreign-owned futures business, as the world’s second-largest economy pushes ahead with opening its multi-trillion-dollar financial market.
Xinhua
- ADB slashes growth forecast for developing Asia to 0.1 pct in 2020 — Developing Asia will barely grow in 2020 as containment measures to address the COVID-19 pandemic hamper economic activity and weaken external demand, according to an updated Asian Development Bank (ADB) report released on Thursday.
- China’s central bank vows ample liquidity to support coronavirus-hit economy — China’s central bank vowed Thursday to keep financial liquidity at a reasonable and adequate level in the second half of the year, amid efforts to tackle the impact of COVID-19 on the economy.
- China’s fiscal revenue falls 13.6 pct in Jan-May period — China’s fiscal revenue declined in the first five months of the year, down 13.6 percent from one year earlier, official data showed Thursday.
- China reports rising inflow in foreign direct investment — Foreign direct investment (FDI) into the Chinese mainland, in actual use, expanded by 7.5 percent year on year to 68.63 billion yuan in May, said Gao Feng, spokesperson for the Ministry of Commerce, at a press conference on Thursday.
- Israeli exports to China up 9.8 pct during January-May despite COVID-19 — Israeli exports to China rose 9.8 percent year on year during the first five months of 2020, despite the COVID-19 pandemic, Israel’s Central Bureau of Statistics said on Thursday.
- China’s overnight Shibor interbank rate increases Thursday — The overnight Shanghai Interbank Offered Rate (Shibor), which measures the borrowing cost of China’s interbank market, increased 7.5 basis points to 2.123 percent Thursday.
Other Publications
- The Atlantic: The Leader Who Killed Her City — Carrie Lam has been a unique failure. Yet she is merely a symptom of Hong Kong’s ills.
- DefenseNews: Pentagon releases its Defense Space Strategy to counter Russia and China — The Pentagon has put forward a new Defense Space Strategy designed to maintain U.S. military superiority in space amid growing counter-space efforts in Russia and China.
- Quartz: Video-sharing, photo editing, e-commerce: 52 Chinese apps that Indian intelligence wants banned — The India-China border conflict has taken an online turn. Yesterday, Indian intelligence agencies reportedly asked the Narendra Modi government to block or issue advisories against the use of 52 mobile apps that are linked to China.
- Quartz: Zambia has become the poster child for the good, bad, and ugly of the China-Africa — many analysts, this southern African country of 15 million people has become the ground zero for examining the relationship between the continent and its largest trading partner.