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
- Trump Says U.S. Should Be ‘Reimbursed’ for TikTok Purchase — Speaking to reporters at the White House, President Trump described the Sunday conversation he had with Microsoft CEO Satya Nadella over the company’s interest in buying TikTok from its Chinese owner, Beijing-based Bytedance Ltd.
- Pompeo Warns New Measures Planned for China Over Human Rights — Secretary of State Mike Pompeo said the U.S. is planning measures to address human-rights violations in China’s Xinjiang region, furthering the Trump administration’s recent confrontation with Beijing.
- Inside the Microsoft Talks to Buy TikTok’s U.S. Business — Covert discussions began weeks ago on a transaction that could reshape the global tech landscape and further strain U.S.-China relations. After the software giant’s CEO and President Trump spoke Sunday, Microsoft said an agreement could include the video app’s operations in Canada, Australia and New Zealand.
The Financial Times
- US wanted TikTok ban not sale, says ByteDance founder — Chinese group had ‘no choice’ but to comply with demands from US regulators and sell app.
- Australia reports record trade surplus on back of China demand — Beijing’s post-coronavirus stimulus efforts drive surge even as tensions rise between the 2 countries.
- Tech cold war comes to India: Silicon Valley takes on Alibaba and Tencent — As political tensions dominate India’s relations with China, US companies see an opportunity.
- China’s new digital currency takes aim at Alibaba and Tencent — Tech giants have outsized role in digital payments in the country because of success of Alipay and WeChat Pay.
- TikTok and the splintering of the global internet — Forced sale of Chinese app in the US marks a turning point.
- Why TikTok owner ByteDance is no Huawei for Beijing — China is unlikely to spend effort on a privately owned social media app.
- China tech stocks rally as investors bet on decoupling with US — Washington’s threat to ban Chinese apps prompts traders to focus on domestic names.
Caixin
- As Ant Group Saturates Its Home Market, Overseas Expansion Becomes Priority — Alibaba-affiliated financial services giant wants to have 1 billion users outside China by 2025
- Bytedance Founder Doubts Probe Intentions as Company Poised to Sell U.S. TikTok Under Duress — In a letter to staff, Zhang Yiming blames “anti-China sentiment” for U.S. government scrutiny over data protection and national security
- Core Parts of China’s Beidou Satellite System ‘100% Made in China’ — The 28-nanometer chips that enable mobile devices to receive signals from Beidou satellite system are in mass production and core components of the navigation system are “100% made in China,” said the national satellite navigation authority on Monday.
South China Morning Post
- Australian university backs tweet deletes after Chinese social media backlash — An Australian university said it deleted tweets linking to an article on human rights in Hong Kong because they did not comply with the institution’s policy.
- No chance of recovery for Hong Kong’s stricken retail sector this year, says operator of Sogo department stores — Hong Kong’s battered retail sector has no hope of recovering in the rest of 2020, according to Lifestyle International Holdings, the operator of the city’s biggest Japanese-style department store chain.
- China is home to four of the world’s five largest unicorns, led by Alibaba’s Ant Group — China is home to four of the world’s five largest unicorns – start-ups valued at more than US$1 billion – as the country recorded 227 such companies at the end of March, despite its protracted tech and trade war with the United States.
- China’s appetite for iron ore prompts Brazilian miner Vale to explore new deep water port — Brazilian iron ore mining giant Vale is in talks with the Alcantara Port Terminal on Brazil’s northern coast to increase iron ore shipments to China – a move that aligns with China’s recent attempts to diversify its sources of the critical steelmaking ingredient amid a surge in domestic demand.
- Coronavirus: China positions itself for ‘vaccine diplomacy’ push to fight Covid-19 — China’s so-called Wolf Warrior diplomats have been in the spotlight this year as Beijing barked back at critics who blamed it for the Covid-19 outbreak. But that narrative may be about to shift as China positions itself as a global leader to fight the disease, saying it will offer loans and priority access for vaccines it is developing.
- China’s economy is turning inward, but will weak domestic demand undermine Xi Jinping’s vision? — China’s new strategy of domestic demand-led growth in the face of growing international uncertainty will be an uphill battle due to weak demand at home and heavy state intervention, according to analysts.
Bloomberg
- China Brands Trump’s Demands on TikTok Sale a ‘Smash and Grab’ — China’s state-run media has struck back in the war over TikTok, branding U.S. demands for the sale of the social media app’s American operations to Microsoft Corp. as “theft” and suggesting Beijing may block the transaction.
- China’s Vehicle Sales Rise for Fourth Month With Outbreak Easing — Vehicle sales advanced for a fourth straight month in China, with an easing in the coronavirus pandemic allowing buyers to gradually return to showrooms.
- China’s Expanding Global Footprint Roils a Reluctant NATO — On an overcast morning last month, Serbia’s President Aleksandar Vucic arrived at a military airport near Belgrade to pose with six Chinese-made attack drones.
- HSBC to Hire 3,000 Wealth Planners in China Amid Tension — HSBC Holdings Plc is planning a big boost to its wealth management staff in China in a bid to lift its sagging profits, increasing its presence in the face of mounting political tensions between Beijing and Western governments.
- Hong Kong Stocks Jump Suddenly With Developers Leading Gains — Hong Kong stocks saw a sudden spike in afternoon trading on Tuesday, with property shares leading the advance.
- China’s Hottest Stocks Stumble in Push Toward Five Year-High — China’s soaring technology stocks can’t quite get over the line.
- U.S.-China Policy: Hawks Got It Right, But Don’t Belong in Charge — Are there any China accommodationists left in Washington?
- U.S. Issues Alert About Malware Used by Chinese Government — The U.S. government issued an alert Monday that a type of malware seen frequently by security researchers in the last decade is tied to the Chinese government, the latest in a series of American warnings about China’s cyber capabilities this summer.
- Hedge Fund Boosts Cash on Growing Risk of U.S.-China Armed Clash — As investors grapple with the relentless rise in global coronavirus cases, one Singaporean hedge fund is preparing for another dire event — the possibility of an armed clash between the U.S. and China.
- Microsoft’s Long History in China Complicates Potential TikTok Deal — China hawks like Navarro say the software maker is too close with Beijing, which has also banned Microsoft products.
Reuters
- Sinopec-SK Wuhan Petchem plans Oct-Dec refinery overhaul — Sinopec-SK Wuhan Petrochemical Co, a subsidiary of state oil and gas group Sinopec Corp, plans to shut down its 170,000 barrels per day (bpd) refinery in late October for about 50 days of maintenance, three industry sources said.
- China vows retaliation if any U.S. action against journalists — China vowed on Tuesday to retaliate if the United States persisted with “hostile action” against Chinese journalists who may be forced to leave in coming days if their U.S. visas are not extended.
- China only fulfils 5% of Sino-U.S. energy trade deal in first half of 2020 — China bought only 5% of the targeted $25.3 billion in energy products from the United States in the first half of 2020, falling well short of its trade deal commitments at a time when relations between the two top economies are already sour.
- Chinese investors shift to money market funds as equities turn volatile — Chinese investors are swapping their bets in equities for safe-haven money market funds (MMFs) as stock markets continue to be volatile on the back of concerns about domestic policy tightening and Sino-U.S. tensions.
- China’s hog futures set to make debut, but faces big challenges — China’s long-awaited live hog futures contract is almost ready, offering a vital hedging tool for the world’s largest pork industry, which has been roiled by an African swine fever outbreak that devastated herds and sent pork prices soaring.
Xinhua
- China’s A-share market sees IPO boom in July — Initial public offerings (IPO) in China’s A-share market continued apace last month over advanced capital market reform, Shanghai Securities News reported Tuesday.
- German carmaker BMW fully confident about China’s positive business prospects: spokesman — German carmaker BMW remains fully confident about the positive mid- and long-term business prospects of China, a spokesman of the company told Xinhua in a recent interview.
- Brazil’s VP lauds Huawei’s 5G-building capacity — Brazilian Vice President Hamilton Mourao on Monday defended Chinese technology company Huawei’s participation in the bidding process to build Brazil’s 5G internet network, arguing that Huawei is well positioned for the task.
- Chinese shares close mixed Tuesday — Chinese stocks closed mixed on Tuesday, with the benchmark Shanghai Composite Index up 0.11 percent, at 3,371.69 points.
- China’s central bank skips reverse repos — The People’s Bank of China (PBOC), the country’s central bank, skipped open market operations via reverse repos Monday.
- China moves to cut costs for enterprises — Chinese authorities have issued a circular to further cut costs for enterprises to help them tide over the COVID-19 pandemic.
- China’s green loans see rapid growth in H1 — China has seen a rapid increase in loans extended to clean energy, environmental protection and other green sectors in the first half of this year (H1) as the country puts more emphasis on green development, central bank data showed.
- China’s oil, gas exploration investment hits record high in 2019 — China’s investment in oil and gas exploration set a record high of 82.13 billion yuan (about 11.76 billion U.S. dollars) in 2019, up 29 percent year on year, according to the Ministry of Natural Resources.
- Central China’s Hunan to have 22,000 5G base stations by year end — Central China’s Hunan Province has built 13,586 5G base stations since 2019, and the number is expected to hit 22,000 by the end of this year, local authorities said Sunday.
- Chinese sedan brand Hongqi sales up 108 pct — China’s leading automaker First Automotive Works (FAW) Group Co., Ltd. saw a 108-percent year-on-year growth in the sales of its Hongqi brand cars in the first seven months, said a corporate source.
- Turnover tops 975 mln USD at motor expo in SW China — A total of 38,907 orders worth 6.8 billion yuan (975.1 million U.S. dollars) were placed during the 23rd Chengdu Motor Show that concluded Sunday in Chengdu, capital of southwest China’s Sichuan Province.
- Chinese firm to construct wastewater drainage system in Zambia — A Chinese firm, Chambishi Copper Smelter (CCS), has embarked on the construction of a drainage to improve the movement of wastewater in Zambia’s Kalulushi district to help restrict on the outbreak of water-borne diseases.
Other Publications
- Business Insider: Tesla competitor Nio surges 13% after reporting July deliveries skyrocketed (NIO) — The company announced Monday that it delivered 3,533 vehicles in July, a more than 322% increase from the same month a year ago. So far in 2020, Nio has delivered 17,702 vehicles, a more than 111% increase from last year.
- POLITICO: The Pentagon wants to end its reliance on China for rare earth minerals. But can it be done? — The Pentagon is funding projects at two U.S. mines and one magnet manufacturing company that could offer a fix to America’s dependence on rare earth minerals from China. But uncertainty hangs over whether the mines can deliver enough material, and how soon.
- Nikkei Asian Review: China’s robust factory activity masks economic risks — A measure of Chinese factory activity surged last month to its highest level in nearly a decade, according to a private-sector survey, but official data and the job market tell a different story.
- Nikkei Asian Review: China’s ride-hailing king DiDi faces uphill battle in Russia — China’s ride-hailing giant DiDi Chuxing is preparing to make its debut in Russia, the latest step in the company’s ambitious global expansion — but one that experts say is unlikely to be easy, citing established local competitors and protectionist attitudes.
- Foreign Affairs: Boris Johnson’s Remarkable U-Turn From Sinophile to China Hawk — China’s ambassador to the United Kingdom, Liu Xiaoming, could hardly have been clearer. “We want to be your friend,” he told reporters in early July, not long before British Prime Minister Boris Johnson announced plans to ban equipment purchases from the Chinese telecommunications group Huawei on espionage concerns. “But if you want to make China a hostile country, you will have to bear the consequences,” Liu ominously warned.
- Global Times: US Embassy auction in Beijing raises speculation of ‘scaling down’ — As China-US relations spiraled toward the lowest point since diplomatic relations were established in 1979, an auction held by the US Embassy in Beijing on Tuesday attracted a curious crowd.
