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.
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The Wall Street Journal
- China Serves Up Pig-Backed Loans for Its Hogtied Farmers — China is so desperate to rebuild pig herds after swine fever that its banks are experimenting with loans to farmers backed by a novel asset: their hogs.
- Disney’s ‘Mulan’ Tops China Box Office Amid Controversy — “Mulan” grossed a solid $23.2 million as it opened this weekend in the world’s second-largest movie market, according to preliminary estimates.
- Can China Turn Europe Against America? — In this week’s summit, Xi seeks to play Nixon, luring new allies with cash and upending trade routes.
- China’s New Financial Rules to Cover Jack Ma’s Ant Group — The People’s Bank of China said firms that operate two or more financial businesses in the country will be classified as financial-holding companies.
- China Injects Hundreds of Thousands With Experimental Covid-19 Vaccines — A Chinese pharmaceutical company administered two vaccine candidates under an emergency-use condition approved by Beijing in July. Western counterparts have warned against mass vaccinations before rigorous scientific studies are complete.
- U.S. Prosecutors Step Up Pressure on North Korea — U.S. prosecutors asked a federal judge to order the forfeiture of funds associated with a former North Korea employee and related front company of Chinese telecom ZTE.
- The New Geopolitics of Energy — Power is shifting from longtime oil giants like Russia and Saudi Arabia to innovators like China—and maybe the U.S.
- China Restricts U.S. Diplomats’ Movements in Latest Tit-for-Tat — Beijing said it has imposed restrictions on American diplomats in China to retaliate against Washington’s recent move to curb activities of Chinese diplomats in the U.S.
The Financial Times
- Reunified Pakistani Taliban threatens China’s Belt and Road project — Factions regroup under an al-Qaeda umbrella with foothold near Xinjiang.
- US-China: Washington revives plans for its rare earths industry — Other nations intend to reduce dependence on Beijing for elements critical to everything from wind turbines to F-35 jets.
- US-China trade war hits passive investors — Calls are growing for the adoption of strategies that exclude China.
- India and China are edging towards a more serious conflict — An understanding reached last week between foreign ministers does not address underlying issues.
The New York Times
- With Tensions High, Trump’s Ambassador to China Is Stepping Down — Terry Branstad, a former Republican governor of Iowa and early supporter of Mr. Trump’s candidacy, will leave his post as the top American diplomat in China.
- The Woman Taking Over TikTok at the Toughest Time — Vanessa Pappas is keeping a focus on the app’s community of creators and users as it deals with pressure from President Trump, Beijing and a possible sale.
- Europe Feels Squeeze as Tech Competition Heats Up Between U.S. and China — As the rapid pace of change mixes with national security issues, Europe’s role as a global regulator is increasingly tested — and may not be enough.
Caixin
- Tokyo-Based SBI Group May Leave Hong Kong Due to Business Environment — More than 80% of Japanese firms operating in the city are concerned about the effects of new security law.
- Carlyle, Warburg Pincus Among Top 20 Private Equity Firms in China, Ranking Shows — Annual awards organized by the Global PE Forum and Caixin Insight Group highlight the best companies working in the world’s second-largest private equity market.
- Chinese Hotelier Huazhu Seeks to Raise $946 Million in Hong Kong — Secondary listing would help ease debt pressures following Steigenberger Hotels purchase and damage to operations from Covid-19 pandemic shutdowns.
- Kai-Fu Lee’s ‘Slip of the Tongue’ Sets Off Firestorm About Facial Recognition — Leading figure in China’s AI industry apologizes after implying Ant Group is sharing users’ data with its business partners.
- Shenzhen Taps China’s Homegrown GPS to Impose Order on Bike Sharing Chaos — BeiDou Navigation Satellite System to power virtually fenced bike parking spots.
- Smaller Watches Show China’s Growing Hold on Luxury Industry — Luxury good makers are retooling themselves to suit Chinese tastes as the Asian nation rebounds post-coronavirus.
- Beijing Eyes Commercialization of Self-Driving Technology with Demonstration Zone Plan — Beijing plans to build what it calls the world’s first high-level autonomous driving demonstration zone in the hope of accelerating the commercial application of self-driving technology, according to a report by state television broadcaster CCTV.
- DCP Capital Invests Over $283m in Shanghai-Listed Insulin Maker — Asia-focused private equity firm DCP Capital has reached an agreement to spend about 1.94 billion yuan (over $283 million) for a 9 per cent stake in Tonghua Dongbao Pharmaceutical, a Shanghai-listed provider of insulin used in the treatment of diabetes.
South China Morning Post
- Hong Kong, China markets rise as jump in August money supply underscores growth, giving confidence to bargain hunters — The stock markets of Hong Kong and China ended Friday higher, as traders shrugged aside the overnight rout on Wall Street to hunt for bargains among stocks that have lagged the technology boom of recent months, while China’s growth in money supply underscored the country’s economic recovery.
- Baidu launches robotaxi services in Beijing as China accelerates along the road to a self-driving future — Chinese internet giant Baidu launched a public robotaxi service in Beijing on Thursday as the country accelerates the commercial application of self-driving technologies across the country.
- Several Cathay Pacific businesses to forgo Covid-19 wage relief from Hong Kong government, paving way for lay-offs: source — The Cathay Pacific Group will apply for a limited amount of help from the Hong Kong government’s wage subsidy scheme, the Post has learned, in a closely watched move indicating how soon it can lay off staff during the coronavirus pandemic.
- Siemens’ CEO criticises Beijing’s Hong Kong, Xinjiang policies, but firm ‘still committed’ to China — German industrial giant Siemens’ commitment to China “remains unchanged”, the company said in a statement published by a Chinese state newspaper just days after its chief executive spoke out about Beijing’s hardline policies in Hong Kong and Xinjiang.
- China should seize the moment to free up controls on the yuan to expand its international use — For the last five years, China’s central bank has been fighting to defend two key numbers: seven and three. Seven refers to the exchange rate between yuan and the US dollar – if the yuan weakens too much beyond seven to the US dollar, it would be regarded as a dangerous sign. Three refers to the level of China’s stockpile of foreign exchange reserves – if reserves dip below US$3 trillion, it would be seen as a sign of weakness.
- TikTok’s algorithm not for sale, ByteDance tells US: source — ByteDance, the Beijing-based parent company of TikTok, will not sell or transfer the algorithm behind the popular video-sharing app in any sale or divestment deal, according to a source briefed on the Chinese company’s boardroom discussions.
- Temasek’s holdings in China surpass investment in home market of Singapore for first time — Temasek’s holdings in China surpassed its home market of Singapore for the first time following gains in companies including Alibaba Group, according to the state investor’s annual report.
- China’s August new home prices rise at a faster pace as consumer demand shows sign of picking up amid economic recovery — New home prices in China rose at a slightly faster monthly pace in August, as consumer demand showed signs of picking up in a boost to an economy recovering from the coronavirus crisis.
- China’s digital sovereign currency tests put it ahead of the global pack in push to adopt digital money — China’s central bank is moving closer to a full roll-out of its sovereign digital currency, with tests having already been conducted in pilot cities, though the formal launch date for the nation’s new digital money remains unknown.
- Wellcome among the employers taking part in second round of wage subsidies, as number of applicants drops by 57 per cent — One of Hong Kong’s biggest supermarket chains, Wellcome, will participate in the latest round of HK$81 billion (US$10.3 billion) wage subsidies, conceding to government demands to offer discounts in return, the Post has learned, even as the total number of applications for the scheme dropped significantly.
- China to revive international yuan drive along belt and road countries — China aims to use the yuan “as much as possible” in its Belt and Road Initiative to try to expand its use as a reserve currency, a senior Chinese government adviser said on the weekend.
- China’s container traffic grows in early September as export orders recover from coronavirus supply chain shock — The slump in China’s worldwide trade showed further signs of recovery in the first two weeks of September as activity at major ports grew despite weaker global demand and the pressure of the relocation of supply chains, according to data from the China Ports & Harbours Association.
- Why this flexible work platform is seeing a boom in sourcing riders for delivery giants like Meituan and Ele.me — As a courier in Beijing delivering fresh produce, 40-year-old Yan Zhaojun works around 14 hours per day, delivering 40 to 60 orders on average.
- Construction on China’s ‘city of the future’ highlights Beijing’s renewed zeal for ambitious state planning — The Xiongan New Area, blessed by Beijing’s top brass and showered with resources, has become the new zenith of China’s building spree.
Bloomberg
- Xiaomi Vice Chair Seeks Up to $1 Billion in Stake Sale — Xiaomi Corp. Vice Chairman Lin Bin is seeking as much as $1 billion from the sale of a stake in the Chinese smartphone maker, capitalizing on a stock surge that sent its shares to all-time highs.
- India Parliament Resumes With Modi Bracing for Virus Debate — Indian lawmakers returned to the nation’s parliament for the first time since the start of the pandemic with Prime Minister Narendra Modi’s government bracing for a tumultuous session as the country sets new global records in coronavirus infections, and with a tense border standoff with China dominating the headlines.
- IPhone Makers Said Among Winners in $6.6 Billion India Plan — Apple Inc.’s major iPhone assemblers are among the companies expected to win approval to participate in a $6.6 billion stimulus program to bring manufacturing to India, according to people familiar with the matter, a potentially seismic shift as the world’s most valuable company diversifies beyond China.
- Alibaba Is Said to Be in Talks to Invest $3 Billion in Grab — Alibaba Group Holding Ltd. is in talks to invest $3 billion into Southeast Asian ride-hailing giant Grab Holdings Inc., according to people familiar with the matter.
- CLSA’s Five-Year Plan Shows Communist China Is in Charge — Before CLSA Ltd. was acquired in 2013, the Hong Kong brokerage’s research division issued a warning to investors in Chinese financial companies: beware of “high-frequency interference” from the Communist Party.
- Does Questioning the U.S. Vote Benefit Russia? — A debate over whether China or Russia poses the biggest external threat to the November elections is hampering efforts by U.S. intelligence and national security agencies to protect the vote.
- Trump’s Top China Envoy to Leave Beijing for Campaign Trail — The top U.S. diplomat in China, Terry Branstad, is retiring, the American Embassy confirmed Monday, after President Donald Trump touted the former Iowa governor’s expected campaign help in a key swing state.
- China’s German Pork Ban to Cement U.S. as Top Overseas Supplier — China’s ban on German pork is set to cement the U.S. as the top overseas supplier of the nation’s staple meat.
- Condo Butler Service Demand in China Sparks 400% Stock Gain — Surging demand for butler-like concierge service at the millions of condominiums in China is creating one of the hottest sectors in the nation’s stock market.
- Growing Distrust of China Brings $38 Billion Taiwan Windfall — Taiwan sits squarely in the middle of the worsening dispute between Beijing and Washington, with many of its companies operating factories in China manufacturing for American companies.
- China’s Xi Looks to Firm Up Europe Ties in Talks With Merkel — Chinese President Xi Jinping is set to hold talks with German Chancellor Angela Merkel and European leaders, as Beijing seeks to keep the continent from aligning more closely with the U.S. on disputes ranging from market access to human rights.
- U.S.-China Trade War: How Volvo Became Collateral Damage for the Trade Spat — The Swedish automaker’s South Carolina plant was built to export cars to China. Now the company is waving the stars and stripes.
- China’s 40-Year, Billion-Tree Project Is a Lesson for the World — Its successes and failures provide an invaluable model for today’s reforestation efforts.
- China Home Price Growth Accelerates as Credit Growth Jumps — China home-price growth accelerated in August after a brief slowdown the previous month as credit growth rebounded and wider property curbs did little to damp buyer enthusiasm.
- China’s Biggest Carmaker to Accelerate Push Into Hydrogen Autos — China’s biggest vehicle maker is accelerating a push into alternative energy, targeting a lead in hydrogen cars as it moves beyond gasoline and electric autos.
- Smaller Watches Show China’s Growing Hold on Luxury Industry — Luxury watch maker Officine Panerai-Firenze SA is famed for its big and bulky World War II-era wrist pieces. But its best sellers are now becoming smaller and smaller, largely due to the might of Chinese buyers.
- Trump’s Candidate to Lead Latin America Development Bank — President Donald Trump’s candidate Mauricio Claver-Carone won the election to lead the Inter-American Development Bank, placing an American at the head of the important lender as he looks to counter China’s influence in the hemisphere.
- Europe Is Fed Up With China’s Transgressions — Though EU countries won’t go as far as the U.S. in decoupling from China, they’re sending a strong message.
Reuters
- Nvidia acquisition of Arm throws company into tech spat between U.S. and China — Nvidia Corp’s $40 billion acquisition of chip designer Arm is set to catapult it into the fray of geopolitical tensions between Beijing and Washington, analysts and lawyers say.
- EU, China sign food protection deal ahead of challenging summit — The European Union and China signed a deal on Monday to protect each other’s exported food and drinks items from feta cheese to Pixian bean paste ahead of challenging discussions on trade, climate change and human rights at an online summit.
- ByteDance picks Oracle as partner to try to save TikTok U.S.: sources — Oracle beat Microsoft in the battle for the U.S. arm of TikTok with a deal structured as a partnership rather than an outright sale to try to navigate geopolitical tensions between Beijing and Washington, people familiar with the matter said.
- ByteDance won’t sell TikTok U.S. operations to Oracle or Microsoft: CGTN — ByteDance will not sell TikTok’s U.S. operations to Oracle Corp or Microsoft Corp and will not give the source code for the video platform to any U.S. buyers, China’s state-run English television channel CGTN reported on Monday, citing sources.
- Hong Kong says it will not interfere with China’s arrest of 12 at sea — Hong Kong’s government will not intervene in the case of 12 city residents who mainland Chinese authorities arrested as they tried to flee by boat to Taiwan, despite pleas from their relatives for help, saying it was a mainland matter.
- Bank of America hires Zhang for China business, memo says — Bank of America China has hired Wenjie Zhang as managing director and president, according to a memo seen by Reuters.
- China issues new rules to tighten control over financial holding firms — China has issued new rules to regulate financial holding companies, in its latest move to prevent systematic risks to the nation’s vast financial sector.
- China’s Ming Yuan launches up to $800 million Hong Kong IPO: term sheet — Chinese property software company Ming Yuan Cloud on Monday launched an IPO in Hong Kong to raise as much as HK$6.17 billion ($798 million), a deal term sheet showed, as the city gears up for its second busiest week for equity offerings this year.
- China opens anti-subsidy probe on some U.S. glycol ethers imports — China’s commerce ministry said on Monday it launched an anti-subsidy investigation on some glycol ethers imports from the United States starting from Sept. 14.
- China’s new home prices growth steady, supports economic recovery — New home prices in China rose at a slightly faster monthly pace in August, as consumer demand showed signs of picking up in a boost to an economy recovering from the coronavirus crisis.
- U.S. lawmakers quiz Disney CEO over Xinjiang connection to ‘Mulan’ — A group of bipartisan U.S. lawmakers urged Walt Disney Co CEO Bob Chapek to explain the company’s connection with “security and propaganda” authorities of China’s Xinjiang region during the production of live-action war epic “Mulan”.
Xinhua
- China’s Guangxi to build SME demonstration zones — South China’s Guangxi Zhuang Autonomous Region will build three demonstration zones of innovation and entrepreneurship for small and medium-sized enterprises (SMEs) in the cities of Nanning, Liuzhou and Guilin.
- China pumps net 34 billion USD into markets — China’s central bank pumped a net 230 billion yuan (about 33.63 billion U.S. dollars) of liquidity into the country’s banking system via open market operations during the last week to maintain liquidity at a reasonable and ample level.
- Chinese banks see rising asset custody business — China’s banking industry has seen a rise in asset custody services, with banks seeking to expand the business and maintain profitability, according to the China Banking Association.
- China’s financial institutions see rising assets — Assets of financial institutions in China rose to 340.43 trillion yuan (about 49.77 trillion U.S. dollars) at the end of the second quarter, up 10 percent year on year, the central bank said on Monday.
- China approves four new IPO applications — China’s top securities regulator has approved the initial public offering (IPO) applications of four companies.
- Chinese banking sector’s new yuan loans up in first 8 months — The Chinese banking industry’s new yuan-denominated loans hit 14.4 trillion yuan (about 2.11 trillion U.S. dollars) in the first eight months of the year, according to the China Banking and Insurance Regulatory Commission.
- China’s housing prices see slight month-on-month growth in August — China’s housing market remained generally stable in August, with slight month-on-month growth in home prices in major cities, official data showed Monday.
- China’s rural tourism rapidly recovering: ministry — Data from China’s Ministry of Culture and Tourism shows that the number of tourists and total income of rural tourism in July and August have recovered to more than 90 percent of that of the same period in previous years.
- China initiates anti-subsidy probe on glycol ethers from U.S. — The Ministry of Commerce (MOC) on Monday launched an anti-subsidy probe into imports from the United States of certain monoalkyl ethers of ethylene glycol and propylene glycol, or glycol ethers.
- China’s used car sales rise in July — China’s used car sales climbed 4 percent year on year in July as the market continued to recover, industry data showed.
- China’s Chongqing sees foreign trade up — Southwest China’s Chongqing Municipality saw its foreign trade volume rise by 10.3 percent year on year to 398.4 billion yuan (about 58.3 billion U.S. dollars) in the first eight months of 2020, the local customs said Saturday.
- China’s housing prices report slight month-on-month growth in August — China’s housing market remained generally stable in August, with slight month-on-month growth in home prices in major cities, official data showed Monday.
Other Publications
- Washington Post: How former Trump adviser Steve Bannon joined forces with a Chinese billionaire who had divided the president’s allies — When federal agents arrested former chief White House strategist Stephen K. Bannon off the coast of Connecticut on Aug. 20, he was relaxing on a 150-foot yacht belonging to a flashy Chinese billionaire whose efforts to obtain asylum in the United States have divided top allies of President Trump.
- The Diplomat: China Has Built a Massive Global Database for Hybrid Warfare, International Media Reports — The revelations that Chinese tech firm Zhenhua has built a database of 2.4 million individuals for intelligence operations are significant though unsurprising.