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 Financial Times
- The Big Read: Taiwan: preparing for a potential Chinese invasion — Xi Jinping’s ambitions and the modernisation of China’s military are prompting growing fears about an attempt to annex the island.
- China offers Covid vaccine insurance to win over jab sceptics — Despite lack of evidence, some people have claimed they developed leukaemia after being inoculated.
- BYD pollution probe heaps pressure on China’s stuttering electric vehicle sector — Carmaker under investigation after claims residents near factory suffered nosebleeds and breathing problems.
- China allows tech trio to resume business after cyber probe — Shares in Didi, Full Truck and Kanzhun jump amid signs Beijing’s crackdown may be easing.
The New York Times
- China Tries to Keep Covid Out of Its Grueling College Entrance Exams — Some students have to travel from locked-down areas to testing sites in special vehicles, while others might be isolated for the exam.
Caixin
- Caixin Explains: Why Newly Listed Chinese Stocks Fall Below Their IPO Prices — Shares of 62 of the 107 companies that went public on the Chinese mainland this year as of April 20 were trading below their offer prices that day.
- Another Promising Sign for Lithium: Rising Leveraged Bets on Miners — Investors have been buying up shares of the companies with borrowed money over the past two weeks, with Tianqi Lithium topping a recent margin trading list.
South China Morning Post
- US coffee giant Starbucks faces more backlash in China over expired products — US coffee chain Starbucks has been thrust into the social media spotlight again in China after one of its outlets was found to be stocking expired coffee powder. The company has faced a series of scandals over the past year.
- ‘Please don’t forget’: Taiwan appeals to US for free-trade deal — Top trade negotiator John Deng says Taipei is ‘very realistic’ and knows this is not something that can happen in the short term.
- China’s forex reserves climb for the first time in 2022, but yuan depreciation pressure remains — China’s foreign exchange reserves – the world’s largest – rose to US$3.13 trillion last month from US$3.12 trillion in April, the first increase this year, despite a ‘complex and severe’ external environment, regulators say.
- Opinion: Lockdowns and Tiananmen amnesia – why Beijing isn’t ready for the Chinese century — Shutdowns in the country’s biggest cities chip away at the already low international confidence in China’s economy. By Shi Jiangtao
Nikkei Asia
- U.S. gave investors ‘green light’ on blacklisted Chinese companies — Last-minute clarification allows retention of stocks and bonds after trading ban.
- Biden move on China investment blacklist draws fire in Washington — U.S. politicians demand divestment, not just trading ban.
- Cost of China’s zero-COVID push stokes growing frustration — Tests, vaccines and quarantines cut into funds for local government employees.
- Mexican president eases pressure on China’s Ganfeng Lithium — Obrador says mining concession ‘will be respected’ if it passes review.
Bloomberg
- US Trade Deficit Narrows Most on Record on Muted China Imports — The US trade deficit shrunk in April by the most on record in dollar terms, reflecting a drop in the value of imports amid Covid lockdowns in China while exports climbed.
- Hong Kong Resists New Virus Curbs Despite Talk of Xi Visit — Hong Kong won’t tighten Covid curbs before the city’s July 1 handover anniversary, Chief Executive Carrie Lam said, despite speculation President Xi Jinping will attend the celebrations.
- China Fears Wind Is Blowing Covid Virus in From North Korea — Officials in a Chinese city on the border with North Korea say they can’t figure out where persistent new Covid-19 infections are coming from — and suspect the wind blowing in from their secretive neighbor.
- German Factory Orders Unexpectedly Plunge Amid China Lockdowns — German factory orders unexpectedly sank in April as harsh lockdowns in China pressured global supply chains, adding to disruptions caused by Russia’s invasion of Ukraine.
Reuters
- Analysis: China’s consumers keep their wallets in lockdown as COVID curbs ease — China’s sputtering economy has a lot riding on its consumers, who are just now emerging from lockdowns in Shanghai and other big cities.
- We need to talk about Gucci: Kering sets plan to boost brand in China — Investors are closely watching the Chinese market, set to become the biggest for the luxury sector by 2025, to gauge how much the strict pandemic containment measures since March have impacted demand for high end fashion and accessories.
- China issues 60 new video game licenses, none for Tencent or NetEase — It also did not include any foreign titles, extending the dry spell for imported video games to 12 months.
Other Publications
- Associated Press: China, Cambodia breaking ground on joint port project — Cambodia denied again Tuesday that it will allow any Chinese military presence at a port where it and China are beginning an expansion this week that has prompted concern in the United States and elsewhere.
- The Washington Post: China’s university entrance exams are already stressful. Now add covid. — To ensure an outbreak wouldn’t derail college hopes, Zhu’s school and others across the country sealed themselves off weeks before the gaokao, with students and teachers alike barred from leaving campus.
- Politico: Biden moves to ease trade turmoil threatening his solar energy ambitions — The moves come as the solar energy industry has been roiled by a Commerce Department probe into whether companies in four Southeast Asian countries have circumvented the tariffs on Chinese shipments of solar equipment to the U.S.
- The National Interest: Opinion: The Case for Applying Global Magnitsky Sanctions Against Hikvision — The United States and its allies should levy Magnitsky sanctions on Hikvision and convey that they are prepared to add more Chinese companies if the Xinjiang surveillance state continues to operate unabated. By Dahlia Peterson
