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. Moves to Block Telecom Tech From China and Others Deemed Foes — It will be up to Biden administration to pursue the rules, which also name Russia, Iran and North Korea.
- China Holdup Proves Costly for Cisco — Network giant boosts price for Acacia by 64% as slow Chinese approval dragged out deal’s close.
- U.S. Accuses MIT Professor of Hiding Extensive China Ties in Federal Grant Application — Mechanical engineering professor Gang Chen allegedly supported China’s effort to recruit talent to the country.
- A Year On, China Falls Short on Trade-Deal Targets — Purchases of U.S. goods are behind schedule, although some see progress in opening markets to U.S. companies.
- Ant Group Is Moving Quickly to Comply With Regulations, China’s Central Bank Says — The fintech giant has set up a working group to address problems recently flagged by Chinese regulators.
- Trump Order Clarifies Chinese Company Ban, But Questions Linger — Compliance officers are struggling to figure out whether related companies—not just those on the blacklist—are also blocked, lawyers say.
- Americans Banned From Investing in Xiaomi as U.S. Expands Blacklist — Chinese smartphone giant was a surprise inclusion on list of companies U.S. says support China’s military.
The Financial Times
- Shares in China’s Xiaomi tumble after US investment ban — Washington order means US shareholders in smartphone group could be forced to divest.
- Global investors in limbo after Ant IPO torpedoed by Beijing — BlackRock among groups left holding $10.3bn worth of illiquid stakes in Chinese fintech.
- US blacklists Xiaomi and Cnooc in flurry of actions to counter China — Trump administration announces number of moves with just days remaining in office.
- Trump’s final checks on China tech — TSMC profits surge, Tesla recall, Samsung’s new smartphones.
- US development bank strikes deal to help Ecuador pay China loans — ‘Novel’ deal comes in exchange for excluding Chinese groups from the country’s telecoms networks.
- US sets out new powers to block Chinese technology — Commerce department finalises rules for vetting software and hardware imports.
Caixin
- Small-Loan Firms Won’t Be Subject to New Interest-Rate Ruling, China’s Top Court Says — Lenders had worried that the rate cap stipulated in an earlier ruling would hurt their businesses.
- What You Need to Know About Ant Group’s Suspended IPO and the Future of Chinese Fintech — The regulatory storm that has shaken the industry didn’t come out of the blue. But its toughness may have been a surprise.
- Five Things to Know About China’s New National Security Review for Foreign Investment — System to assess risks to national security of certain types of foreign investment will go into effect on Monday.
- Regulators Warn Brokerages Over Bond Underwriting Price War — Securities association and securities watchdog call 12 brokerages on the carpet after cutthroat bids for China Railway and China National Nuclear bonds.
- Winter Chill Leads China’s December Coal Imports to Skyrocket — The government called for greater overseas shipments as heating demand caused power shortages in several regions.
- U.S. Sanctions Chinese Oil Giant CNOOC Over South China Seas Actions — U.S. suppliers banned from doing business with China National Offshore Oil Corp.
- Former Juice King Huiyuan Squeezed off Hong Kong Exchange — Company was once a highflyer courted by global beverage giant Coca-Cola, but later ran afoul of the Hong Kong bourse due to governance issues.
- U.S. Counterfeit Blacklist Sees Return of Baidu, Debut of WeChat Retail Partner — Latest edition of U.S. Trade Representative’s ‘Notorious Markets’ list also includes repeat appearances by Pinduoduo and Alibaba’s Taobao.
- Pinduoduo Doubles Down on Group Grocery Buying — Foray into Shanghai adds heat to a booming but controversial sector as regulators try to keep big tech from wiping out smaller rivals.
- Shanghai-Based Robot Developer Closes $46 Million Funding Round — Shanghai-based collaborative robot maker Jaka Robotics has raised more than 300 million yuan ($46 million) in its series C funding round, as China strives to boost smart manufacturing in various sectors amid a tech race with the U.S.
- Chinese Video Streamer iQiyi Targets U.S. Market With Animation on Nickelodeon — iQiyi said on Thursday that its original computer generated animated series “Deer Squad” will premiere on the child-focused television channel Nickelodeon in the U.S. on January 25, the latest sign that the Chinese online video giant is trying to reach global audiences.
- Chinese Majority Owned Lotus Announce EV Sports Car Venture With Renault’s Alpine — Lotus, a British sports car brand majority owned by Chinese automaker Geely, has announced a partnership with Renault’s Alpine brand to co-develop an electric sports vehicle, a move that comes as Geely heavily invests in battery-powered car research and production.
- Chinese New Film Materials Maker HIUV on Track to Raise $227m in STAR Market IPO — Shanghai HIUV New Materials Co Ltd, a Chinese manufacturer of new film materials, is on track for an initial public offering (IPO) on the Nasdaq-style STAR Market of the Shanghai Stock Exchange (SSE) to raise up to 1.469 billion yuan ($227.1 million).
South China Morning Post
- China’s economy set to receive ‘necessary support’ for coronavirus recovery this year, central bank says — China’s central bank on Friday played down the urgency of an immediate change in key interest rates and vowed to maintain necessary monetary support for economic recovery from the pandemic, amid growing expectations it will gradually tighten credit conditions this year.
- China shows renewed interest in joining trade pact Trump left in 2017 — Beijing has provided another indication of its interest in joining the Comprehensive Progressive Trans-Pacific Partnership Agreement (CPTPP) by releasing a Chinese translation of its principal documents.
- Rush of US sanctions on China in last days of Trump White House — The US announced a flurry of sanctions and measures against China on Thursday, with the clock counting down to the final days of the Trump administration.
- China National Biotec Group says Covid-19 vaccine will offer protection for at least six months — Covid-19 vaccines developed by China National Biotec Group (CNBG) can offer at least six months of protection, and the manufacturer is still waiting to see whether that can be extended to eight months, state news agency Xinhua reported on Friday.
- China GDP: economy set to confirm recovery from coronavirus, but new cases cloud outlook — China is expected to confirm on Monday that it was the world’s first major economy to overcome the damage caused by the coronavirus pandemic and post positive growth for 2020, although the world’s second largest economy still faces a bumpy road ahead.
- US ‘should get its house in order’ under Joe Biden before any reset with China — On the eve of a historic opportunity to reset the battered US-China relationship, the incoming Biden administration should focus on getting the American house in order and achieving quick results, according to future and past US officials and top China experts.
- China urged to tap RCEP trade deal for future digital payments system as US sanctions loom — China should consider using digital technology to develop an alternative to the SWIFT financial payments system as a way of insulating itself from being cut off from the US-dominated financial messaging service, according to Liu Xiaochun, deputy dean of the Shanghai New Finance Research Institute.
- Ant Group kicks off the overhaul of its fintech operations under the watchful eyes of China’s central bank and financial regulators — Ant Group, controlled by Chinese billionaire Jack Ma, has set up a working group to rectify the business practices of the world’s largest financial technology group, under the close watch of China’s central bank and financial regulators.
- China-Australia relations: imports of some stranded Australian coal could soon be allowed — China is considering accepting some stranded Australian coal cargoes, an effort that would help ease a logjam of vessels that have stacked up off its coast for months.
- US-China trade war deal reaches first anniversary as bilateral mistrust hits ‘all-time high’ — One year after signing the phase one trade deal with the US, China remains far behind in its commitment to buy more American goods, though the agreement has been a vital sticking plaster in a fast deteriorating bilateral relationship, experts said.
- Arbitrator’s eBRAM offers quick mediation of contractual disputes for HK$200 as Covid-19 roils Hong Kong’s small businesses — An arbitrator backed by Hong Kong’s government is preparing for contractual disputes to increase in the new year, as the coronavirus outbreak disrupts business operations and work arrangements in a city that is still struggling with its worst recession on record.
- Pinduoduo loses exclusive partnership with CCTV for China’s Spring Festival Gala — State broadcaster China Central Television (CCTV) has cancelled its exclusive advertising deal with e-commerce giant Pinduoduo for this year’s Spring Festival Gala, the country’s most-watched national network TV broadcast, as the company remains embroiled in a controversy over working conditions, according to people with direct knowledge of the matter.
- Trump’s latest moves against Xiaomi, China tech will have little immediate impact, experts say — In its final days, the Trump administration has increased restrictions on Chinese companies, including smartphone maker Xiaomi, and has created rules that could further curb access to the US market by Chinese software and hardware developers.
- WeChat ban urged by US gets sceptical review by appeal court — The Trump administration’s attempt to reinstate US restrictions on the Chinese-owned WeChat app was met with scepticism by a judicial panel.
- Beijing sets up satellite internet measures as China aims to build new space infrastructure — Beijing is rolling out a series of policy measures, including financing, to support the country’s development of a satellite internet services industry, according to a notice published on Wednesday by the city’s Municipal Bureau of Economy and Information Technology.
Bloomberg
- Hong Kong Exodus Could Spur $36 Billion in Outflows: BofA — Hong Kong could see capital outflows of as much as $36 billion this year as residents leave the city for the U.K. in response to China’s sweeping security law, keeping the local dollar off the strong end of its trading band with the greenback.
- Trump’s Onslaught on China Inc. Leaves Key Decisions for Biden — A year ago today, President Xi Jinping asked the U.S. to treat Chinese companies “fairly” in a letter read out at the White House to mark the signing of a landmark trade deal between the world’s biggest economies.
- Orban Pressures Hungarian Regulator to Decide on Chinese Vaccine — Hungary’s prime minister piled pressure on the national health authority to decide on approving Covid-19 vaccines from China, saying western versions negotiated by the European Union were too slow to arrive.
- Founder of Trump-Blacklisted Firm Ostracized in China Too — The man who runs a Chinese company put on President Donald Trump’s blacklist because it allegedly poses a threat to national security can’t even buy a high-speed train ticket or stay in a posh hotel, Chinese court rulings show.
- China Mulls Allowing Some Australian Coal Imports Amid Ban — China is considering accepting some stranded Australian coal cargoes, an effort that would help ease a logjam of vessels that have stacked up off its coast for months.
- MIT Professor Is Accused of Hiding Millions in China Grants — An MIT professor and nanotechnology expert was charged with failing to disclose to the U.S. Department of Energy millions of dollars in funding he allegedly received from China, the latest in a slew of similar cases.
- U.S. Blacklists Xiaomi in Widening Assault on China Tech — Xiaomi Corp. plunged a record 10% after the Trump administration blacklisted China’s No. 2 smartphone maker and 10 other companies, broadening efforts to undercut the expansion of the country’s technology sector.
- Trump Blacklisting Jolts China’s Ambitions to Take on Boeing — A U.S. move to increase pressure on Chinese companies could threaten the nation’s ambitions to compete with Boeing Co. and Airbus SE.
- Why South China Sea Is Key to Blacklisted Oil Giant Cnooc — China’s biggest offshore driller is being targeted in the final days of President Donald Trump’s administration for its activity in the South China Sea.
- U.S. Targets Xiaomi, Cnooc in Trump’s Late Anti-China Push — The Trump administration blacklisted Chinese smartphone manufacturer Xiaomi Corp. for alleged military links along with the country’s third-biggest oil company over its drilling in the South China Sea, part of a final push to ratchet up pressure on Beijing before President-elect Joe Biden takes office.
- Investing in China Gets More Complicated After NYSE Delists Companies — The New York Stock Exchange has cut three companies from the Big Board. Will things change in a Biden administration?
- Tencent-backed Yidu Tech Surges 148% in Hong Kong Debut — Yidu Tech Inc., which offers artificial intelligence and big data products to the health-care industry, saw its shares jump 148% in its Hong Kong debut after a HK$4.12 billion ($531 million) initial public offering that met with overwhelming demand from investors.
- Trump’s Move Cost Bosses at China Tech Giant $4.5 Billion — The Trump administration’s surprising blacklisting of Xiaomi Corp. is costing its top executives big bucks.
- China Central Bank Says Ant Is Working on Timetable for Overhaul — China’s central bank said Ant Group Co. is working on a timetable to overhaul its business while ensuring operations continue, offering little clue on how far the financial technology giant needs to go to assuage Beijing.
- China Unexpectedly Drains Cash as Leverage Builds in Bonds — China’s central bank withdrew cash from the financial system for the first time in six months, after excess liquidity had pushed an interbank borrowing cost to an all-time low.
- Russia May Give CanSino Vaccine First Global Approval — CanSino Biologics Inc.’s Russian partner expects local authorities to register the Chinese company’s Covid-19 vaccine soon, potentially marking the first approval for use of the inoculation outside of China.
- Poland Court Mulls Sending Falun Gong Follower to Trial in China — The Polish Supreme Court will rule whether to send a Falun Gong practitioner to China for trial, in a case that could spur fresh debate over Europe’s attention to human rights issues in the world’s most populous country.
- Tesla Shares Worth $1,250 in Bull-Case Scenario, Dan Ives Says — Tesla Inc.’s stock could touch $1,250 in a bull-case scenario as consumer demand for greener cars surges in China, Wedbush analyst Dan Ives wrote in a Jan. 14 note.
- Trump’s China Trade War Won’t End Quickly Under President Biden — Donald Trump will have left the White House by this time next week, but his trade war with China will be sticking around.
- China Set to Topple U.S. as Biggest Economy Sooner After Virus — China’s economic ascent is accelerating barely a year after its first coronavirus lockdowns, as its success in controlling Covid-19 allows it to boost its share of global trade and investment.
- Hong Kong Internet Firm Blocked Website Over Security Law — A Hong Kong internet provider said it’s blocked access to a website in order to comply with the city’s new national security law, in a case that’s fueling concerns about the future of free speech in the former British colony as China tightens control.
- Xi Asks Starbucks’s Schultz for Help Mending U.S.-China Ties — President Xi Jinping called on Starbucks Corp. to help improve China-U.S. ties, striking a business-friendly tone as the Biden administration prepares to take over in Washington.
- Biden and Xi Must Stabilize U.S.-China Relationship Quickly — To prevent relations from hardening beyond repair, Joe Biden and Xi Jinping need to act fast.
- First Jack Ma Vanishes, and Now China’s AAA Curve With Alibaba Debt Silence — Silence around Alibaba’s plans to sell $8 billion of debt undermines a key risk benchmark.
- WeChat Ban Urged by U.S. Gets Skeptical Review by Appeals Court — The Trump administration’s attempt to reinstate U.S. restrictions on the Chinese-owned WeChat app was met with skepticism by a judicial panel.
- Trump’s Gone But Europe Needs Self-Defense Against Russia, China — Biden’s good manners won’t change the fact that the liberal international order is sundered for good.
Reuters
- Trump administration takes final swipes at China and its companies — The Trump administration took another swipe at China and its biggest firms on Thursday, imposing sanctions on officials and companies for alleged misdeeds in the South China Sea and imposing an investment ban on nine more firms.
- Trump’s China tech war backfires on automakers as chips run short — Automakers around the world are shutting assembly lines because of a global shortage of semiconductors that in some cases has been exacerbated by the Trump administration’s actions against key Chinese chip factories, industry officials said.
- Azerbaijan to begin vaccinations next week, to use Chinese shot: govt — Azerbaijan will begin vaccinating its population against COVID-19 next week using a vaccine developed by China, government spokesman Ibrahim Mammadov said.
- Exclusive: International COVID-19 vaccine poll shows higher mistrust of Russia, China shots — People across the world are generally likely to say yes to getting a COVID-19 vaccine, but would be more distrustful of shots made in China or Russia than those developed in Germany or the United States, an international poll showed on Friday.
- BlackRock sells $200 million China Telecom stake after U.S. ban — BlackRock has sold almost all its stake in China Telecom, a company subject to a new ban on U.S. investment, a stock market filing on Friday showed.
- China bans banks from selling deposit products on third-party internet platforms — China’s banking and insurance regulator on Friday banned commercial banks from using third-party internet platforms to sell deposit products, including those relating to fixed-term deposits.
- China’s monetary policy to support 2021 economic recovery: PBOC vice governor — China’s monetary policy will provide the support needed for its continued economic recovery in 2021, a vice governor at the People’s Bank of China (PBOC) said on Friday.
- Hyundai Motor Group to build first overseas fuel cell system plant in China — Hyundai Motor Group has signed an investment pact with the government of China’s southern province of Guangdong to build its first overseas fuel cell system production plant in the country, the South Korean firm said on Friday.
- China cenbank official asks Ant to maintain service quality as it works to fix business — Chinese financial regulators have asked Ant Group Co Ltd to ensure the quality of financial services to the public as it works on rectifying its business, the central bank’s vice governor Chen Yulu said Friday.
- Analysis: Investors resigned to Trump’s China ban, with Biden seen changing little — Financial executives are settling in for the long haul over the Trump administration’s investment ban on Chinese securities, expecting the rules to be lasting but hoping to have more clarity after President-elect Joe Biden takes office.
- Biden picks Clinton adviser Rosenberger as White House China director — Laura Rosenberger, a State Department and White House veteran who was a foreign policy adviser to Hillary Clinton’s unsuccessful 2016 presidential election campaign, will serve as senior director for China in Joe Biden’s White House.
- China air quality improved in 2020 on lockdowns, tougher quality control — China’s air quality improved last year, benefiting from COVID-19 related shutdowns as well as tougher industrial controls, government data showed.
- U.S. commission says China possibly committed ‘genocide’ against Xinjiang Muslims — China has possibly committed “genocide” in its treatment of Uighurs and other minority Muslims in its western region of Xinjiang, a bipartisan commission of the U.S. Congress said in a report on Thursday.
- U.S.-China trade war has cost up to 245,000 U.S. jobs: business group study — U.S. President Donald Trump’s trade war with China has caused a peak loss of 245,000 U.S. jobs, but a gradual scaling back of tariffs on both sides would boost growth and lead to an additional 145,000 jobs by 2025, a study commissioned by the U.S.-China Business Council (USCBC) shows.
- Exclusive: Trump administration adds China’s Comac, Xiaomi to Chinese military blacklist — The Trump administration on Thursday added nine Chinese firms to a blacklist of alleged Chinese military companies, including planemaker Comac and mobile phone maker Xiaomi, according to a document seen by Reuters.
- U.S. unlikely to add more Chinese firms to military blacklist until Jan. 20: U.S. official — The Trump administration is unlikely to add more companies to its blacklist of alleged Chinese military companies in its final days in office after Thursday’s designation of nine firms by the Department of Defense, a senior official at the State Department said.
- Canada’s Trudeau urges unified front against China detentions, says all nations vulnerable — Canadian Prime Minister Justin Trudeau urged nations around the world to maintain a unified front against Chinese detentions of foreign citizens, saying every country was vulnerable.
Xinhua
- China central bank vows consistent policies to keep housing prices stable — China’s central bank will keep its regulation on the real estate sector consistent to promote the sector’s healthy and stable development, an official said Friday.
- China to prioritize stability in monetary policy, avoid sudden shifts in 2021 — China will prioritize stability in its monetary policy and avoid making sudden shifts in 2021, said Chen Yulu, vice governor of the People’s Bank of China, the country’s central bank, on Friday.
- China mulls strengthening regulation over rare earth industry — China’s Ministry of Industry and Information Technology on Friday started to solicit public opinion on a set of draft rules to further strengthen regulation over the rare earth industry.
- China invests big in civil aviation infrastructure over 2016-2020 — China has been enhancing its civil aviation infrastructure sector over the past five years, with big investment and significant progress achieved, according to the country’s civil aviation authorities.
- China to raise retail fuel prices — China will raise the retail prices of gasoline and diesel from Saturday, the country’s top economic planner said Friday.
- China remains Namibia’s top export destination in November 2020 — China remained Namibia’s largest export market in November 2020, accounting for 41.3 percent of the the southwestern African country’s total exports, according to data released by the country’s statistics agency on Friday.
- Jiangsu sees booming China-Europe freight train service in 2020 — A total of 1,273 China-Europe cargo train trips from or to east China’s Jiangsu Province were made in 2020, a rise of 36.4 percent compared with the previous year, Nanjing customs said Friday.
- China’s agricultural product wholesale prices edge up — The wholesale prices of China’s agricultural products edged up Friday, according to the Ministry of Agriculture and Rural Affairs.
Other Publications
- Economist: Kuaishou takes on TikTok and its Chinese sibling — China’s short-video wars are heating up.
- Nikkei Asian Review: Trump falls short on China trade goals, but Biden unlikely to make radical shift — China purchases only 60% of US goods pledged in year-old ‘phase one’ agreement.
- Axios: Chinese annual rare earth exports fall to 5-year low — China exported around 35,400 tons of rare earth minerals and metals in 2020 — a roughly 23% drop from 2019’s total, according to data from China’s customs authority and records maintained by Reuters.
