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
- U.S. Stood Up by China at Military Safety Meeting — People’s Liberation Army no-show at scheduled bilateral dialogue is the first in memory, U.S. defense official says.
- China’s Luckin Coffee to Pay $180 Million to Settle Accounting-Fraud Claims — SEC findings tally with Wall Street Journal reporting of firm’s schemes to fake sales and expenses.
- Tesla-Style Rally Puts Chinese Electric-Vehicle Makers on Par With GM, Ford — Chinese EV companies—most of them unprofitable—have seen their valuations soar to levels similar to those of the American auto giants.
- China Moon Mission Ends as Lunar Probe Returns to Earth With Fragments — With a landing in the snow, the Chinese space program executes the final stage of its third trip to explore the moon’s surface.
The Financial Times
- EU and China revive hopes of investment deal this year — Long-delayed accord on market access would represent a diplomatic coup for both powers.
- WHO team set to visit Wuhan in January to probe Covid origins — US has criticised scope and transparency of agency’s planned investigation in China.
- Investment bankers revel in bumper fees from Chinese groups in 2020 — Revenues from record share sales near all-time high despite trade tensions.
- Australia’s ‘amateurish’ China diplomacy sets business on edge — Opposition politicians and analysts warn Canberra’s approach is hurting the economy.
- Luckin Coffee to pay $180m in accounting fraud settlement — US regulator hits delisted Chinese coffee chain with penalty over fabricated accounts.
The New York Times
- A 1958 ’Vette Translated Into Modern Chinese — SongSan’s SS Dolphin is the latest in a long line of Chinese attempts at cloning more prominent vehicles.
- Alibaba’s Software Can Find Uighur Faces, It Told China Clients — The website for the tech titan’s cloud business described facial recognition software that could detect members of a minority group whose persecution has drawn international condemnation.
- China Moon Mission Brings Lunar Rocks to Earth, and New Competition to Space — The Chang’e-5 mission’s success highlights the progress of China’s space program, and growing rivalry with the United States.
Caixin
- What’s In Store for China’s Economy in 2021 — Analysts see stronger growth, tighter monetary and fiscal policy, and less tension with the U.S.
- Mainland Company Listings to Make Up 98% of Money Raised in Hong Kong This Year — City’s bourse expected to come in second in global exchange rankings in 2020, Deloitte estimates.
- Hong Kong Greenlights First Virtual Asset Exchange — BC Technology’s OSL unit wins licenses for securities trading and automated trading services on platform for digital assets.
- China Streamlines Financing Backed by Movable Assets — Central bank will collect registration of movable assets and rights in a measure intended to bolster lending to small and medium-sized businesses.
- Year in Review: China’s Economy Gets Back on Track, but Faces Long Road Ahead — Government stimulus has resulted in accelerating credit growth and high levels of leverage, posing risks to financial stability.
- In Depth: China’s Pandemic-Driven Textile Export Boom Probably Won’t Last — Disruptions in competing countries have prompted a revival of low-end manufacturing for overseas clients.
- China Mulls Tighter Controls on Steel Mill ‘Capacity Swaps’ to Fight Overcapacity — Draft regulations aim to stop new facilities triggering more supply issues.
- Sweden Can Go Ahead With 5G Auction That Bans Huawei Gear, Court Rules — Country’s telecom regulator won its appeal to overturn a lower court’s ruling that blocked order barring bidders from using the Chinese company’s gear.
- What You Should Know About Chang’e 5’s Return to Earth — Lunar probe scooped about 2 kilograms of moon rock samples, set to be analyzed in a Beijing laboratory.
- Boardroom Shakeup Hits Chipmaker SMIC’s Shares — China’s top microchip-maker’s stock sagged more than 10% on reports that one of its co-CEOs was leaving, though they bounced back slightly late Thursday.
- Can JD.com’s AI Make Chinese Cities ‘Smarter’ and Reduce Pollution? — JD iCity, a unit of ecommerce company JD focusing on smart cities, has applied its artificial intelligence-driven control system to a thermal power plant in North China with the aim of improving efficiency and cutting pollution. The latest news rides the wave of ongoing government encouragement to build cities powered by cutting-edge technologies including AI, big data and the internet of things.
- China on Course to Take Top Spots on Global Stock Exchange Rankings — A new report by KPMG has forecast that China is on course to become home to three of the world’s top five stock exchanges, as measured by money generated, for 2020.
- Faraday Joins with Philips, Possible Sign It’s Closer to Mass Production of FF91 Car — Faraday Future, a California-based electric vehicle startup founded by disgraced Chinese tech entrepreneur Jia Yueting, is getting closer to realizing the ambition of mass-producing its first car model with the announcement of a partnership with Philips Intellectual Property & Standards.
South China Morning Post
- Chang’e 5: China says it will share its lunar samples with global scientific community — China will share the 2kg (4.4lbs) of lunar samples collected by the Chang’e 5 mission with scientists around the world, a senior official from the national space agency said.
- Coronavirus: China to vaccinate 50 million people for Lunar New Year — China is ramping up to vaccinate 50 million people against the coronavirus before the start of the peak Lunar New Year travel season early next year.
- Boeing jet sales to China ‘highly complicated’ by company’s arms sales to Taiwan, experts say — The outlook for sales of Boeing passenger jets in China is “highly complicated” due to bilateral diplomatic issues, particularly the company’s arms sales to Taiwan, according to analysts.
- China trades rainwater for first time, but analysts say unstable trading system is far from being market-driven — China traded rainwater for the first time on a state-run exchange this week – taking a small step toward reallocating water resources to solve its water crisis – but analysts say the country’s water-trading system still has a long way to go.
- Chang’e 5 moon mission gives China ‘unequalled record’ in lunar landings — Ken MacTaggart popped a Tsingtao beer as he watched the Chang’e 5 re-entry capsule land on the snow-covered grassland of Inner Mongolia on Thursday morning, with its “priceless cargo” of rocks and dust from a young volcano on the moon.
- Australian agriculture firms brace for Chinese government ‘roadblocks’ and job losses from trade row — Australian agriculture companies in China are bracing for job losses and “roadblocks” from the Chinese government, as business ties between the two nations sour, according to a new report.
- US keeps China on currency manipulator watch list as trade surplus grows — The US Department of the Treasury has kept China on its watch list for foreign-exchange manipulation in its final report before the Trump administration leaves office.
- China faces urgent ‘unprecedented challenge’ to develop jet engine as foreign hostility grows — China must be able to produce its own jet engine for commercial use as the world’s second biggest economy can no longer “leverage market access in exchange for technology” due to increasing foreign hostility, a senior engineer from state-owned Aviation Industry Corporation of China (Avic) says.
- Keep tariffs on China and ‘hold their feet to the fire’ says US trade tsar — The incoming Biden administration should keep up the pressure on China to stick to the phase one trade deal and use tariffs as leverage, according to outgoing US Trade Representative Robert Lighthizer.
- China-Australia relations: miner Rio Tinto questioned by China steel association over ‘unreasonable’ iron ore prices — With Beijing questioning major miners on their role in record-high prices that are squeezing steel mill margins, Anglo-Australian iron ore miner Rio Tinto says it expanded its iron ore shipments and on-demand sales to meet increased demand for the steelmaking ingredient in China this year.
- Hong Kong’s financial firms must disclose climate change policies from 2025 under new rules to boost city as ‘green fundraising’ hub — Hong Kong’s financial companies will be forced to declare how their assets and investments have an affect on climate change under new requirements aimed at boosting government efforts to ensure the city becomes a major “green finance” hub.
- Hong Kong jobless rate edges down to 6.3 per cent, but pressure on labour market likely to increase amid fourth wave, official warns — Hong Kong’s unemployment rate declined marginally in November, to 6.3 per cent, but the government has warned that the city’s ongoing fourth wave of coronavirus infections is still putting a strain on job security.
- Bauhinia Party co-founder: we love Hong Kong and should be on front lines to solve problems — The almost secretive establishment of the Bauhinia Party in Hong Kong, led by three mainland-born financiers based in the city, has sent shock waves across the political divide. Questions have been raised about the party’s intentions, its members’ identities, and how it could fit into the city’s political scene following the disqualification of some opposition lawmakers and the subsequent resignations of the rest.
- ‘Made in Hong Kong’ prestige provides springboard for retailers Watsons, Sa Sa to find success in Greater Bay Area — Banking on the prestige of “Made in Hong Kong”, the city’s retailers see big opportunity in the potential of the Greater Bay Area and are aggressively expanding in one of China’s wealthiest regions.
- Hong Kong political newbie Bauhinia Party dismisses fears over mainland China roots, says mission is to mend rifts — Hong Kong’s newest political party, established by three prominent businessmen born in mainland China, wants to steadfastly avoid being labelled a vehicle for such residents as it seeks to occupy the middle ground to offer candidates for Legislative Council and chief executive elections.
- Video games get age-based ratings in China under new guidelines long sought by parents and gamers upset by censorship — China’s video games watchdog has announced a new age-based rating system, the latest sign that China is stepping up regulations on what is now the largest industry in the country’s entertainment sector.
Bloomberg
- Merkel Link to Wirecard Laid Out in Testimony by Former Minister — Less than a year before Wirecard AG went bust, a former minister turned economic adviser briefly spoke with Chancellor Angela Merkel about the payment company’s expansion plans in China and how the government might lend a helping hand.
- Taiwan Keeps Rate at Record Low as U.S. Turns Up Currency Heat — Taiwan’s central bank left its benchmark interest rate unchanged, as expected, with the focus shifting to the local dollar after the U.S. put the island economy back onto its watch list of potential currency manipulators.
- India Seeks to Mend Bangladesh Ties With Vaccine Diplomacy — India reassured Bangladesh it will prioritize the supply of Covid-19 shots to its South Asian neighbor, part of its vaccine outreach to counter China’s rising influence in the region.
- Imax Doubles Down on China With New Deal as Theaters Buzz Again — Imax Corp. sees the potential to add at least 400 theaters in China by 2023, as the cinema chain operator looks to expand its footprint in a country that’s emerged as the world’s largest movie market this year.
- Trump Spy Chief Stirs Dispute Over China Election-Meddling Views — President Donald Trump’s spy chief won’t meet Friday’s deadline to submit a classified report to Congress on foreign efforts to sway the Nov. 3 election, officials said, because of arguments within the intelligence community over whether China should be cited more prominently for its attempts to influence American voters.
- China to Provide Financial Support to Key Foreign Companies — China’s government said it will provide financial support to some foreign companies to help them offset the impact of the pandemic and resolve funding difficulties, part of its efforts to improve the business environment for overseas investors.
- Didi’s Logistics Arm Said to Seek $400 Million in Debut Funding — Didi Chuxing Inc.’s foray into China’s on-demand trucking services market is seeking a debut funding round, people with knowledge of the matter said.
- Hong Kong Unveils Plan for Climate Disclosures, Stress Tests — Hong Kong’s two main financial authorities outlined a plan for increased climate disclosures and stepped up management of risks linked to climate change for banks and fund managers in the city.
- Branding Vietnam a Currency Manipulator Just Shows It’s Not China — Being branded by the U.S. as a currency manipulator puts the country in some pretty strong company.
- Wrangler Re-Enters China Jeans Market After Lengthy Covid Delay — Wrangler is bringing its jeans back to China, a bit later than planned.
- U.S. Tags Switzerland Currency Manipulator, Keeps China on Watch — The U.S. Treasury Department designated Switzerland and Vietnam as currency manipulators for the first time, while keeping China on a watch list, in the Trump administration’s final foreign-exchange policy report.
- Hong Kong’s Lalamove Said to Seek Funds at $8 Billion Value — Hong Kong’s on-demand logistics and delivery firm Lalamove is seeking a new funding round at $8 billion valuation, about four times the level it raised funds at last year, according to people with knowledge of the matter.
- Australia Says China Challenge at WTO May Take Three Years — Australian Agriculture Minister David Littleproud discusses the government’s decision to challenge anti-dumping duties imposed by China on its barley exports through the World Trade Organization. He speaks with Haidi Stroud-Watts and Shery Ahn on “Bloomberg Daybreak: Australia.” (Source: Bloomberg)
- Has China Mastered Weather Modification? Should We Worry? — Using rockets and pickup trucks, Chinese officials are seeding clouds and bringing the rain. But do they have other uses in mind?
- China’s University Entrance Exam System Has SAT-Like Issues — The biggest overhaul to the gaokao system in decades is not going as planned
- Lego Plans Physical Store Expansion in China — The toymaker’s strategy hinges on hundreds of retail shops to boost sales online.
- Troubled Waters: Where The U.S. And China Could Clash In The South China Sea — The risk of an accidental collision—or even deliberate military action—is rising. And the brinkmanship could soon rise under President-elect Joe Biden.
- Inside the Cutthroat World of China Mutual Fund Livestreaming — Foreign firms are being forced to get hip with social media to break into a $2.8 trillion industry.
- China’s Central Bank Going It Alone Spurs an Influx of Capital — China’s central bank is striking out on its own with signals of tighter monetary policy, widening a divergence with other large economies that will shape global capital and trade flows next year.
- China Web Retailer Soars 400% on Second Day After IPO in U.S. — Wunong Net Technology Co. shares soared as much as 402% on Wednesday as the e-commerce company extended its climb in a second day of trading since its initial public offering, showcasing Wall Street’s recent appetite for newly listed companies.
- Lindsey Graham Wants Special Counsel Named to Probe Hunter Biden — Senate Judiciary Chairman Lindsey Graham said the Justice Department should appoint a special counsel to investigate Hunter Biden, the son of President-elect Joe Biden, for his business dealings in Ukraine and China.
- Brazil Nears Deal to Allow More Corn Sales to Grain-Hungry China — Brazil is close to an agreement that would allow the world’s second-largest corn exporter to boost sales of the grain to China, a move that could threaten the U.S.’s dominance, according to people familiar with the matter.
Reuters
- U.S. navy says China unreliable after meeting no-show; Beijing says U.S. twisting facts — The U.S. military slammed China for failing to appear for virtual, senior-level meetings slated for this week, calling this “another example that China does not honor its agreements”, but Beijing said the U.S. version of events distorted the facts.
- WHO says Beijing welcomes COVID-19 investigators trip to China — Beijing will welcome an international team of COVID-19 investigators due to travel to China in January, said the World Health Organization (WHO), which is leading the mission.
- China’s primary energy use to peak in 2035 – CNPC research — China’s total primary energy consumption is expected to peak around 2035, at 5.6 billion tonnes of standard coal equivalent, under Beijing’s recently announced carbon-neutral goal, China National Petroleum Corp’s (CNPC) research arm said on Thursday.
- Exclusive: U.S. warns Pacific islands about Chinese bid for undersea cable project – sources — The United States has warned Pacific island nations about security threats posed by a Chinese company’s cut-price bid to build an undersea internet cable, two sources told Reuters, part of an international development project in the region.
- China, on Pacific cable warning, says U.S. is smearing Chinese companies — The United States is smearing Chinese companies, China’s Foreign Ministry said, after sources told Reuters that Washington had warned Pacific island nations about security threats posed by a Chinese company’s bid to build an undersea internet cable.
- Column: Will China boost corn output or become a permanent importer? – Braun — China in recent years has been notoriously absent from global corn trade, particularly when compared with its consumption rates, in its efforts to bolster food security and maintain self-sufficiency.
- Exclusive-U.S. trade czar Lighthizer’s advice for Biden on China: “Hold their feet to the fire” — President-elect Joe Biden should keep pressing China to stick to the “Phase 1” trade deal and use tariffs as leverage, U.S. Trade Representative Robert Lighthizer told Reuters, adding that Beijing has done a “reasonably good job” implementing parts of the deal.
- China regulator says should consider digital data tax for tech firms — China should consider imposing a digital tax on technology companies that hold copious amounts of user data, a securities watchdog official was quoted as saying by Beijing News, in the latest sign of widening government scrutiny of the sector.
- MSCI says investors do not expect Biden to change China share restrictions quickly — Investors don’t expect the new administration of U.S. President-elect Joe Biden to act quickly to change new rules that bar new investment in some Chinese companies, an executive for index provider MSCI Inc told Reuters on Wednesday.
- Moncler bets on twentysomethings, Chinese shoppers for post-virus recovery — Luxury puffer jacket maker Moncler is betting heavily on younger consumers and the Chinese market to help sales bounce back from the coronavirus crisis, its boss told Reuters, seeing scope for a recovery from the second half of 2021.
- Canada PM hopes for good news soon about fate of two detainees in China — Canadian Prime Minister Justin Trudeau said on Wednesday he hoped for good news soon about two citizens who have been held in China for the last two years in what Ottawa has described as a case of hostage diplomacy.
Other Publications
- CNBC: China rental company’s shares have cratered 76% this year as the shine of debt-fueled growth fades — New York-listed Phoenix Tree Holdings, which owns Danke, has seen its share price collapse more than 76% since its IPO in January.
- NPR: China Has A Theory About Its New COVID-19 Cases. Many Scientists Are Skeptical — China now reports few to none domestically transmitted COVID-19 cases — only 12 cases were reported on Dec. 15. But a flurry of recent cases has Chinese public health officials worried. They claim that the cases stemmed from workers who had contact with imported food and packages.
- Nikkei Asian Review: China shipping logjam chokes Christmas in US and Europe — Pandemic leaves containers in wrong places and ports under strain.
- Nikkei Asian Review: Analysis: Xi sees Alibaba and Tencent as rising threats to power — Politburo goes on crusade against ‘disorderly expansion of capital’.
- Foreign Affairs: Competition With China Could Be Short and Sharp — In foreign policy circles, it has become conventional wisdom that the United States and China are running a “superpower marathon” that may last a century. But the sharpest phase of that competition will be a decadelong sprint. The Sino-American contest for supremacy won’t be settled anytime soon. Yet history and China’s recent trajectory suggest that the moment of maximum danger is just a few years away.
- Axios: House Armed Services is paying more attention to cybersecurity — after big hack — House Armed Services Committee Chairman Adam Smith has outlined a plan for his body to improve its oversight of cybersecurity, although experts say suspected Russian cyberattacks show the focus is late in coming.
- Defense News: How President-elect Biden can reinvigorate defense innovation — President-elect Joe Biden and his team must do what Trump promised and failed to do: Disrupt national defense. To his credit, Biden has acknowledged that the United States’ decline in military technology is a threat to our national security. But while recognition is a crucial first step, the Department of Defense needs a new innovation playbook. As Air Force Chief of Staff Ge. C.Q. Brown said: “We must accelerate change, or lose.”
- The Diplomat: China’s Digital Silk Road Initiative: A Boon for Developing Countries or a Danger to Freedom? — Some observers worry that it will equip authoritarian governments with next-generation surveillance technologies.
