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
- Microsoft Folds LinkedIn Social-Media Service in China — LinkedIn cites challenging operating environment, as retreat marks the biggest departure from China by a major tech company in years.
- China’s Robinhoods Could Be Next in Beijing’s Crosshairs — Beijing’s rising concerns about data security—and overseas listings—put China’s previously highflying online brokers at risk.
- Chinese Telecom Giant ZTE in Dispute With U.S. Court-Appointed Monitor — Dallas lawyer has threatened to use friendship with judge to get longer term in lucrative monitorship, people familiar with the matter say.
- IMF Seeks to Allay Doubts Following Data-Rigging Scandal, Move Forward With New Agenda — Group plans to boost financial support for low-income countries to get past pandemic and has new focus on climate-change financing, but faces questions about its relevance.
- Metals Prices Surge After Gas Crunch Crimps Output — Higher energy bills prompt smelters to cut back on zinc and aluminum production.
The Financial Times
- China’s central bank says spillover from Evergrande crisis ‘controllable’ — Beijing makes first comments on company as Hong Kong probes PwC audit of indebted developer.
- China coal futures post record weekly increase — Rally threatens to compound property sector debt crunch sparked by Evergrande woes.
- LinkedIn closes down China site — Last major US social network to operate in the country cites ‘challenging operating environment.’
The New York Times
- Man Whose Attack on Ex-Wife Was Livestreamed Gets Death Penalty in China — The case riveted the public’s attention in China and spotlighted the patchy enforcement of the country’s law against domestic violence.
- LinkedIn to End Service in China, Citing ‘Challenging’ Environment — The Microsoft-owned service had censored posts in China, in compliance with the country’s laws, to operate there.
Caixin
- Evergrande Hit to Chinese Lenders Is Manageable, Moody’s Says — Global credit rating company finds that while banks’ direct exposure is limited, fallout from the property giant’s crisis could trigger deterioration for the real estate sector.
- In Depth: China’s Struggle to Balance Green Goals With Keeping the Lights On — At the heart of the country’s power shortage is a choice between slashing coal emissions and generating the electricity needed to keep the economy humming.
South China Morning Post
- China Evergrande crisis caused by ‘poor management’, but an exception in healthy property market, central bank says — China’s central bank for the first time on Friday lambasted property giant Evergrande Group for its “poor management”, while saying the potential spillover effects to the financial system from a collapse of the developer are controllable.
- Debt-stricken China Evergrande suffers huge blow as US$1.7 billion deal to sell its Hong Kong headquarters collapses — China Evergrande has failed to sell its single largest asset to state-backed Yuexiu Property, Reuters reported, a huge blow to the debt-stricken developer’s frantic efforts to raise the funds it needs to survive.
- Huawei spin-off Honor should be blacklisted, says US Senator Marco Rubio in appeal to Biden administration — Republican Senators led by Marco Rubio on Thursday called on the Biden administration to blacklist Honor, a former unit of embattled Chinese telecoms giant Huawei, describing the firm as a threat to national security.
Bloomberg
- China Breaks Silence on Evergrande, Says Risks Controllable — China’s central bank broke its silence on the debt crisis at China Evergrande Group, saying risks to the financial system stemming from the developer’s struggles are “controllable” and unlikely to spread.
- China Banks Embrace Derivatives That Burned European Rivals — A trade that’s already snared several European banks is now drawing the attention of regulators in China.
- China Forces Better Cotton Initiative Fashion Brands to Be Quiet Over Xinjiang — Brands suffered when they spoke out over labor concerns. Now China is launching a rival cotton certification program.
- Hong Kong Teachers May Be Ones Taking Tests in New Security Push — Hong Kong teachers might have to pass a test on the city’s national security law, a top government official said, as the local education system is remade to foster greater loyalty to Beijing.
Reuters
- U.N. biodiversity talks end in China’s Kunming with new funding pledges — China, the European Union and Japan were among countries pledging to spend more on slowing down rapid species loss at talks this week in China to prepare for a new global biodiversity pact.
- Germany’s Merkel to hold farewell talks with China’s Li on Monday — German Chancellor Angela Merkel will hold virtual farewell talks on Monday with Chinese Prime Minister Li Keqiang and will also receive European Commission President Ursula von der Leyen, a German government spokesperson said on Friday.
- China looks to lock in U.S. LNG as energy crunch raises concerns — Major Chinese energy companies are in advanced talks with U.S. exporters to secure long-term liquefied natural gas (LNG) supplies, as soaring gas prices and domestic power shortages heighten concerns about the country’s fuel security.
- Senator Cotton delays vote on Biden’s pick for powerful China job at Commerce — Republican Senator Tom Cotton is holding up a vote to confirm Alan Estevez as the U.S. Commerce Department’s undersecretary for industry and security until he gets answers to difficult questions about technology exports to China.
Other Publications
- The Economist: How long can China’s zero-covid policy last? — Unlike Australia, New Zealand and Singapore, it seems determined to keep it up.
- The Economist: How Xi Jinping’s China differs from Mao’s — A crackdown on superstition is about control, not smashing tradition.
- Nikkei Asia: Hong Kong audit watchdog investigating Evergrande and PwC — Real estate giant has been scrambling to divest assets to repay creditors.
- Protocol: What really brought down LinkedIn’s China play — After one compromise too many, the last U.S. social platform to operate under CCP supervision exits the stage with its tail between its legs.
