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.
Want this emailed directly to your inbox? Send us an email at contact@thewirechina.com to sign up.
The Wall Street Journal
- U.S. Drops Case Against Chinese Scientist at UVA — Prosecutors abruptly moved to drop criminal charges against Hu Haizhou, who had been arrested on allegations of stealing trade secrets, after the university acknowledged the scientist was authorized to access some of the material.
- One Senator’s Strategy for Containing Chinese Technological Dominance — Democrat Mark Warner, a former telecom executive, sees China’s erosion of the U.S.’s technological advantage as an existential threat to American values at home and abroad.
- The Xinjiang Model Comes to Tibet — Beijing denies ill-treatment but bars unmonitored visitors.
- Xinjiang Is No Disneyland — Students debate the responsibility of Big Business to stand up to China.
- China Backslides on Economic Reform — Under Xi Jinping, Beijing hasn’t liberalized. It’s doubled down on politically directed state capitalism.
- U.S.-China Rift Worries World Leaders at the United Nations — World leaders sounded alarms Tuesday over the widening rift between the U.S. and China, warning that a lack of cooperation could worsen the coronavirus pandemic, slow a global economic recovery or even lead to outright conflict.
The Financial Times
- China’s state media denounce TikTok deal as ‘dirty and unfair’ — Editorials signal Beijing may not approve parent ByteDance’s agreement with Oracle and Walmart.
- China is escalating its punishment diplomacy — Democracies must unite to stop Beijing’s coercive commercial statecraft against other nations.
- Investor buzz builds ahead of Ant Group listing — Public offering is ‘talk of the town’, says one Hong Kong-based wealth manager.
- China has the upper hand in corporate proxy wars with US — Xi was better than Trump at playing the long game during their first tussle involving ZTE and Qualcomm.
- China pledges to be ‘carbon-neutral’ by 2060 — Surprise move at UN by world’s biggest emitter increases pressure on US over climate commitments.
- Donald Trump calls on UN to hold China responsible for Covid-19 — US president focuses on Beijing in brief recorded remarks to general assembly.
- First TikTok then gaming as a crucible of US-China rivalry — Games make for splendid surfaces for online attacks but there is a way to neutralise the fight.
The New York Times
- China’s Pledge to Be Carbon Neutral by 2060: What it Means — Under international pressure to do more to address global warming, Xi Jinping made a surprise commitment to drastically reduce emissions. Now comes the hard part.
- Trump Demands U.N. Hold China to Account for Coronavirus Pandemic — In speeches broadcast at this year’s Covid-compromised General Assembly, the presidents of China and the United States punctuated an intensifying schism between the two superpowers.
- Facebook Takes Down Fake Pages Created in China Aimed at Influencing U.S. Election — The social media campaign was small but targeted all sides of the debate. Officials said Beijing had not decided whether to wade more directly in the American presidential race.
- In Biden, China Sees an ‘Old Friend’ and Possible Foe — Some in China believe Biden, if elected, might do damage to the nation’s ambitions, taking a harder line on human rights and rallying allies to stand up to Beijing.
Caixin
- Exclusive: Former China Everbright Bank Branch Head Falls Under Corruption Probe — Investigators are looking at Zhu Huimin’s tenure at the state-owned lender particularly his time in Shenzhen, sources say.
- Global Financial Giants Battle to Recruit China Bankers in Talent War — After opening of China’s financial sector, Goldman, UBS, JPMorgan, Nomura join the hunt for at least 1,000 top professionals to fill expanding offices.
- Caixin New Economy Index Falls on Drop in Capital Inputs — New economy industries accounted for 30.4% of China’s overall economic input activities in August.
- Jumping on the China IPO Bandwagon, Solar-Panel Maker Plans Unit’s Shanghai Listing — JinkoSolar says it aims to list its Jiangxi Jinko subsidiary on the STAR Market in the coming years.
- BMW’s China Electric Vehicles Cast Spotlight on High-Density Battery Costs, Safety — German carmaker plans to use locally sourced ‘8-1-1’ batteries made with nickel, cobalt and manganese for its domestically sold iX3 models.
- Short Seller Accuses Huazhu of Inflating Profits by $295 Million — One of China’s biggest hotel chains underreported the number of hotels it owns and associated costs for 2019, according to findings published by Bonitas Research.
- Alibaba Subsidiary Cainiao Pushes Into Malaysia With Cross-Border Delivery Service — Cainiao, a logistics arm of Alibaba, is partnering with its domestic peer Best to launch a time-efficient delivery service between China and Malaysia, which the duo hailed as a boon for both buyers and sellers as the upcoming “Double 11” shopping extravaganza is expected to drive demand for cross-border e-commerce.
- Chinese Electric Carmaker Li Auto Teams Up With U.S. Chipmaker Nvidia — Chinese electric vehicle startup Li Auto has selected U.S. chipmaker Nvidia as a technology partner to make self driving smart cars.
South China Morning Post
- China-Australia trade ties remain strong for some businesses despite worsening political relations — Trade between China and Australia continues to chug along with some businesses recording stronger sales in spite of the increasingly tense political conflict between the two countries, according to company officials.
- China’s US dollar debt defaults climb as coronavirus, US tensions hit firms’ bottom lines — Defaults by Chinese firms on their US dollar-denominated debt have risen significantly this year as the coronavirus pandemic, a slump in oil prices and deteriorating US-China relations have hurt business and reduced their ability to repay.
- Oil giant Chevron asks global employees to delete WeChat after Trump ban — Chevron Corp has asked its global employees to remove Tencent Holdings’ WeChat from their work phones, making it one of the first US companies to heed the Trump administration’s executive order banning the Chinese social app because of national security risks.
- US pork exports to China surge beyond pre-trade war levels — US pork exports to China have surged beyond pre-trade war levels, led by higher shipments from Brazil’s JBS SA and China’s WH Group, owner of Smithfield Foods, according to Panjiva, the research unit of S&P Global Market Intelligence.
- Chinese riders can now book a trip from Tencent’s map app as internet giant plays catch up — Tencent Holdings has added an aggregated ride-hailing platform to its map app in a partnership with Didi Chuxing, giving users another entry point into ride hailing, although the move lags similar ones made by rivals Alibaba and Baidu.
- Developers eye Guishan Island’s reclamation to augment Lantau plan in easing Hong Kong’s land woes in test for Greater Bay Area — A guild of developers and real estate professionals have proposed to reclaim several islands lying in the sea between Lantau Island and Macau to augment the Hong Kong government’s HK$624 billion (US$80 billion) Lantau Tomorrow reclamation project for alleviating the city’s land shortage.
- Huawei says it has enough chips for equipment businesses but not for its smartphones — Huawei Technologies, the Chinese tech giant at the epicentre of a US-China tech war, said it has enough chips for its communications equipment businesses but not for its smartphones, and is looking to buy new supplies from US companies provided they can gain the relevant licences from US authorities.
Bloomberg
- China Eases Entry Rules for Foreigners for Work, Reunions — China eased restrictions on some foreigners’ entry into the country, almost six months after it nearly sealed its borders to limit the spread of the coronavirus pandemic.
- What Has Trump’s TikTok Drama Achieved? — Concerns about the Chinese video-sharing app are understandable. The president’s haphazard approach is not.
- Ant Plans $17.5 Billion Hong Kong IPO, No Cornerstones — Jack Ma’s Ant Group Co. is aiming to raise $17.5 billion in its Hong Kong share sale and won’t seek to lock in cornerstone investors, confident there will be plenty of demand for one of the largest equity deals in the financial hub, according to people familiar with the matter.
- Duterte Gets Tough on China, Leaning Back to Old Ally America — After years of shifting the Philippines closer to China, President Rodrigo Duterte appears to be leaning back toward the U.S.
- Hong Kong’s BEA Starts Process of Selling Life Insurance Arm — Bank of East Asia Ltd. agreed to start a process of selling its life insurance unit in a bid to boost profitability and lift its shares.
- China Taps Brakes on Yuan’s Rally With Another Weaker Fixing — China’s yuan fixing was weaker than expected for a second day, reinforcing speculation that the central bank wants to slow the currency’s biggest quarterly rally since 2008.
- Hong Kong Traders Chased 1,600-1 Odds to Buy IPO That Flopped — One of Hong Kong’s most-popular initial public offerings among retail investors fell in its debut, pouring cold water on the city’s red-hot sentiment over new listings.
- China Threatens to Kill TikTok Deal Over ‘Dirty’ Trump Tactics — Just a few days ago, the TikTok deal looked like a win for China. Now its state-run media are denouncing it as “an American trap” and a “dirty and underhanded trick.”
- Japan’s Ruling Party Looks to Draw Companies from Hong Kong — Japan’s ruling Liberal Democratic Party is looking to submit a proposal to the cabinet next week that would help lure firms and financial professionals looking to relocate from Hong Kong due to its political uncertainty.
- Chevron Asks Global Employees to Delete WeChat After Trump Ban — Chevron Corp. has asked its global employees to remove Tencent Holdings Ltd.’s WeChat from their work phones, making it one of the first U.S. companies to heed the Trump administration’s executive order banning the Chinese social app on alleged national security risks.
- China State Media Blasts U.S. for ‘Extortion’ in TikTok Deal — Chinese state media blasted Oracle Corp.’s proposed deal with the hit video app TikTok, calling the agreement hammered out under pressure from the Trump administration a “dirty and underhanded trick.”
- China Traders Eyeing Ant IPO Will Get More Access With New Funds — Chinese investors hoping to get a slice of Ant Group Co.’s massive stock debut can boost their chances by buying into new funds that are kick-starting sales this week.
- Carson Block Launches Internet TV Channel for Short Selling — Carson Block, a short-seller famous for mounting attacks on Chinese companies, is launching an internet video channel to share ideas on his short calls and the research behind them.
- China’s Blacklist of U.S. Tech Firms Would Show Its Own Weakness — A ban of American companies will likely backfire.
- China’s Battered Banks Are Dodging Bailouts With Stealth Mergers — China jolted markets in 2019 with three high-profile bank rescues that imposed losses on some investors. The appetite for experimenting with greater market discipline has been crushed by the coronavirus pandemic.
- China’s Unspent Stimulus Pile Primed to Fuel Economic Recovery — China’s government has amassed trillions of yuan in unspent money, handing it fiscal firepower to stimulate an economic recovery that’s already leading the world’s rebound from the Covid-19 shock.
- Macron Tells the UN to Wake Up With Swipe at the U.S. and China — The coronavirus pandemic must serve as an “electric shock” that wakes up the United Nations, French President Emmanuel Macron said in a speech Tuesday, which included veiled attacks on the U.S. and China.
Reuters
- China will allow more foreign investors to invest in listed firms: state media — China’s cabinet said on Wednesday it will allow more qualified foreign investors to make strategic investment in Chinese listed companies, state television reported.
- Ninebot’s IPO highlights Beijing’s eagerness to lure home listings — Chinese e-scooter maker Ninebot Ltd will launch a domestic initial public offering soon with a listing structure that shows how eager Beijing is for Chinese tech companies to list at home amid rising tensions with Washington.
- Chinese brokerages set for consolidation as holding firms meet tighter rules — China’s securities broking sector is set for consolidation as stricter regulations covering opaque financial holding firms force owners of mid-sized brokerages to divest, analysts and industry participants said.
- TSMC warns China-U.S. deleveraging will drive up costs — The deleveraging of China-U.S. supply chains and protectionism on both sides of the Pacific will only drive up costs and limit the flow of ideas, the chairman of Taiwan Semiconductor Manufacturing Co Ltd said on Wednesday.
- China’s Ant takes another step towards $35 billion IPO with registration move — China’s Ant Group submitted documents to the securities regulator for registration of the Shanghai portion of its IPO, the city’s bourse said late on Tuesday, moving a step closer to a planned dual-listing expected to be worth about $35 billion.
- NBA-China engagement is positive for United States – Commissioner — The NBA’s long-standing engagement in China continues to have a “net positive” impact on the mutual understanding between the United States and the Communist nation, Commissioner Adam Silver told CNN on Tuesday.
- China’s BGI wins 1.5 million coronavirus test kit order from Ethiopia — Ethiopia has agreed to purchase 1.5 million coronavirus testing kits that will be manufactured at a factory in the African country that has been newly built by China’s BGI Group, China’s state media agency Xinhua said late on Tuesday.
- Baillie Gifford registers Shanghai unit for onshore China funds — Scottish asset manager Baillie Gifford said Wednesday it had registered its new wholly-owned China unit to manage non-retail funds, becoming the latest foreign manager to target domestic investors in the world’s second-largest economy.
- PetroChina’s Daqing refinery begins processing first Russian crude oil — PetroChina Co Ltd’s subsidiary refinery in northeast China’s Daqing has started processing its first Russian crude oil transported via pipeline, after completion of plant upgrade, according to a company report posted on its social media platform on Tuesday.
- China will boost investment in strategic industries: state planner — China said on Wednesday it will boost investment in strategic industries including core tech sectors such as 5G, artificial intelligence and chips.
- U.S. House passes China forced labor bill near unanimously — The U.S. House of Representatives on Tuesday voted near unanimously to pass legislation to restrict imports of goods made using forced labor from China, as lawmakers look to address the treatment of Uighur Muslims in China’s Xinjiang region.
- Surge in U.S. pork exports to China led by Brazil’s JBS, China’s WH Group — U.S. pork exports to China have surged beyond pre-trade war levels, led by higher shipments from Brazil’s JBS SA and China’s WH Group Ltd , owner of Smithfield Foods, according to Panjiva, the research unit of S&P Global Market Intelligence.
- Morgan Stanley ups chance of China WGBI bond index inclusion to 90% — Morgan Stanley has hiked the chance of China being added to one of the world’s top government bond indexes later this week to 90% after the country made some additional improvements to its market practices and plumbing.
Xinhua
- China’s role in global economy not weakened amid geopolitical tensions: investment banker — China’s role in the global economy has not been weakened amid escalating geopolitical tensions, and companies worldwide saw growth opportunities in Asia led by China, Douglas Flint, chairman of global investment firm Standard Life Aberdeen, has said.
- Across China: Agreement on geographical indications promotes China-EU trade — Chinese consumers are expected to gain access to genuine European specialties such as Irish whiskey, Bayerisches Bier, Prosciutto di Parma in a more reliable way from next year, thanks to the signing of a China-EU agreement on product origins.
- U.S.-listed Chinese firms trade mostly higher — U.S.-listed Chinese companies traded mostly higher on Tuesday, with seven of the top 10 stocks by weight in the S&P U.S. Listed China 50 index ending the day higher.
Other Publications
- Forbes: Ivanka’s Trademark Requests Were Fast-Tracked In China After Trump Was Elected — The Chinese government granted a total of 41 trademarks to companies linked to Ivanka Trump by April of 2019—and the trademarks she applied for after her father became president got approved about 40% faster than those she requested before Donald Trump’s victory in the 2016 election, according to a new book by Forbes’ senior editor Dan Alexander.
- The Intercept: Films Financed by Steven Mnuchin Were Tailored to Appeal to China — Trump administration officials often criticize Hollywood for appeasing Chinese censors, but the treasury secretary’s voice is conspicuously absent.
- Phys.org: Researchers claim long-term exposure to air pollution in China killed 30.8 million people between 2000 and 2016 — To learn more, the researchers studied satellite images from NASA to help them gage the level of pollution in different parts of China over the years 2000 to 2016.
