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
- As China’s Economy Falters, the Rest of World Looks Resilient — China’s shaky economy, and teetering property giants like Evergrande, are shaping up as major concerns for 2022. A full-scale meltdown may be avoided, however—if only just.
- U.A.E. Shut Down China Facility Under U.S. Pressure, Emirates Says — Construction rattled relations between Washington and Gulf ally over concerns that Beijing was building military facility.
- U.S. to Bar Investment in Chinese AI Giant, Considers Banning Key Exports to Top Chip Maker — Focus on SenseTime and SMIC is part of broader Biden administration effort against China’s tech firms.
- China’s Treatment of Uyghurs Amounts to Genocide, U.K.-Based Panel Finds — Beijing pursues a “deliberate, systematic and concerted policy” to reduce the population of Uyghurs and other ethnic minorities, says panel of lawyers, academics and activists.
- China’s Central Bank Is Under Pressure, but to What End? — A recent policy change probably doesn’t spell an end to priorities like curbing the growth of bad debt.
- Nicaragua Breaks Off Ties With Taiwan, Switching Allegiance to Beijing — The Central American country’s decision cuts Taiwan’s diplomatic partners to 14 as the island pushes to boost its global stature.
- China Pushes Back Against Yuan Rally — The surge is unusual because it comes while the dollar is also gaining ground.
The Financial Times
- SenseTime: US blacklist threatens to stunt growth of China’s biggest AI company — International investors may be reluctant to associate with a start-up embroiled in geopolitical controversy.
- Chinese markets slip after Fitch downgrades Evergrande to default — Mainland regulators seek to reassure investors that property sector fallout will be contained.
- Nicaragua cuts diplomatic ties with Taiwan and recognises Beijing — US blasts Managua’s decision while Taipei says it will halt all co-operation and aid projects.
- Beijing derides Biden’s summit and insists China is a great democracy — Communist party official accuses US of weaponising democracy and inciting division.
- Xi faces the dilemma of China’s imperial rulers — Western critics need to understand the flaws in the Beijing regime’s model and the history of its elites. By James Kynge
The New York Times
- Despite Risks, Watch Brands Are Fixated on China — Xi discourages displays of wealth and there are risks of cultural misunderstanding — but the country has millions and millions of prospective buyers.
- Taiwan Loses Nicaragua as Ally as Tensions With China Rise — The nation switched diplomatic allegiance to Beijing, leaving 13 nations and the Vatican still recognizing Taiwan as a sovereign nation.
Caixin
- China Raises Reserve Requirement for Banks’ Forex Deposits Amid Yuan’s Surge — Central bank bumps reserve ratio to 9% from 7% in the second increase this year after 14 years of no change as authorities try to rein in currency’s rise.
- China Approves First Neutralizing Antibody Therapy for Covid-19 — Brii Biosciences’ shots are the first treatment of their type to be approved in China after showing an 80% reduction in hospitalizations and deaths.
- China Bars 106 Apps From New Downloads Over Data Violations — Affected apps include review platform Douban, karaoke provider Changba, used-goods trading site Aihuishou and Kankan News.
South China Morning Post
- Lenovo defends 2009 equity stake deal after storm of online attacks — Lenovo, the world’s largest personal computer manufacturer, has defended a sale of equity stakes in the company made by China’s top science academy in 2009, after weeks of unsubstantiated online allegations questioning the deal’s legitimacy and accusing it of causing heavy losses in state assets.
- Chinese state media flags volatility, money laundering as risks in metaverse land sales — The Chinese Communist Party’s mouthpiece newspaper has issued a fresh warning about the metaverse, this time targeting speculators who engage in virtual property sales, saying they risk “getting burnt”.
- Biden administration reviewing app security recommendations ordered after dropped WeChat and TikTok bans — The Biden administration is holding talks among federal agencies about the security of Americans’ data and whether the US government has adequate tools.
Bloomberg
- H.K. Announces Most Stringent Quarantine Rules for U.S. Visitors — Hong Kong will implement what the city calls its most stringent quarantine and testing requirements for inbound travelers from the U.S. after an imported omicron case was detected from there.
- SenseTime Said to Delay Hong Kong IPO After U.S. Ban Report — Chinese artificial intelligence firm SenseTime Group Inc. is delaying its Hong Kong initial public offering, according to people familiar with the matter, as tensions with the U.S. government ratcheted higher at the last minute.
- Evergrande’s Hui Forced to Trim Stake in Defaulted Developer — China Evergrande Group Chairman Hui Ka Yan was forced to sell pledged shares in the company, according to disclosures that came a day after the developer was officially labeled a defaulter for the first time.
- China Tries to Manage Global Message on Evergrande Collapse — A barrage of commentary from China’s top institutions shows authorities are stepping up efforts to manage the international message on China Evergrande Group’s collapse — even if the developer itself is staying silent about its default status.
Reuters
- China’s chip conglomerate Unigroup gets state-backed investors, Alibaba out of deal — A consortium led by Beijing Jianguang Asset Management and Wise Road Capital will become a strategic investor in Chinese chip conglomerate Tsinghua Unigroup, the company said on Friday.
- China Evergrande chairman’s stake drops to 59.8% on forced selling – filing — Chairman Hui Ka Yan’s shareholding in embattled China Evergrande Group has dropped to 59.78% from 61.88%, Hong Kong stock exchange filings showed, in a forced selling by a third party with whom the shares were pledged.
Other Publications
- The Economist: China wants Macau to break its gambling addiction — Officials are trying to stop the mainland’s high rollers from visiting.
- The Economist: Beijing’s Winter Olympics may hasten China’s break with the West — Diplomatic boycotts over human rights, plus draconian covid controls, spell trouble.
- The New Yorker: Enes Kanter Freedom’s Political Awakening — The N.B.A. star, who has been outspoken about human rights in China, discusses his embrace by the right and his harsh words for LeBron James.
- Protocol: Who’s behind this mysterious Chinese tech publication? — Dot Dot Stand says little about its origins. But Tencent’s fingerprints are all over it.
