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
- Xi Jinping Visits Hong Kong to Mark Anniversary, Capping Crushing of Dissent — Twenty-five years after city’s handover from Britain, Chinese leader’s visit bolsters his bid for a third term.
- U.S. Blacklists Five Chinese Firms for Allegedly Helping Russia’s Military — The five firms were added to an ‘entity list’ that restricts their access to U.S. technology.
- China Eases Regulatory Restraints on Two Tech Platforms — Full Truck Alliance Co. and Kanzhun Ltd. resume registering new users after yearlong cybersecurity probe.
- U.S., Key Allies Close Ranks Against China — NATO’s new guiding document singles out China for the first time as a shared security challenge.
- Tencent, ByteDance Implement Fresh Layoffs Amid China’s Economic Pains — Latest round of job cuts at Chinese tech giants comes even as Beijing signals easing of its regulatory campaign against the sector.
- Chinese AI Champion SenseTime’s Stock Tanks as Investor Lockup Ends — SoftBank-backed company listed in December despite being added to U.S. blacklist.
- Chinese Lithium Giant Targets Up to $1.7 Billion in Hong Kong IPO — Tianqi Lithium is already listed in Shenzhen, where its stock has roughly doubled over the past 12 months.
- China’s Economy Returns to Growth Mode as Covid Lockdowns Lift — Services and construction activity rebounded in June, while weak export orders weighed on manufacturers, surveys showed.
- Video: China’s Xi Jinping Arrives in Hong Kong for 25th Handover Anniversary — Chinese President Xi Jinping took a train to Hong Kong ahead of the 25th anniversary of the city’s handover from Britain. It’s his first trip outside of the mainland in more than two years.
The Financial Times
- The Big Read: The reinvention of Hong Kong — After three stormy years, Xi Jinping hails a ‘new era’ for the city. It is likely to be less international and closer to mainland China.
- China clamps down on Hong Kong as Xi ventures outside mainland — Military garrison reaffirms combat readiness as 25th anniversary of handover approaches.
- China lured graduate jobseekers into digital espionage — FT investigation reveals student translators were targeted by front company for Beijing-backed hacking group APT40.
- SenseTime shares fall almost 50% after lock-up expires — China’s most valuable AI company has been blacklisted by Washington over its facial recognition technology.
- Hello Kitty parent company Sanrio’s shares surge on Alibaba deal — Five-year licensing agreement comes as Japanese group works to introduce characters to new markets.
- Putin’s rupture with the west turns Russia towards China — Beijing is emerging as the chief winner from the unfolding confrontation between Moscow and the democratic world.
- Chinese stocks set for largest monthly rise since 2020 — Investor demand boosted by end of Shanghai and Beijing lockdowns and hopes of tech crackdown easing.
The New York Times
- A More Muscular NATO Emerges as West Confronts Russia and China — It is a fundamental shift for a military alliance born in the Cold War and scrambling to respond to a newly reshaped world.
- Xi Leaves Mainland China for First Time Since 2020 — Xi Jinping is in Hong Kong for the 25th anniversary of the city’s return to Chinese rule. This is the leader’s first visit since Beijing imposed an crackdown that smothered dissent in the city.
- China’s Leader Hails a Hong Kong ‘Reborn from Ashes’ Amid Crackdown — Before Xi Jinping’s tightly controlled appearance, Hong Kong sent officials, diplomats and others to hotels for days of isolation and Covid tests.
Caixin
- In Depth: How SoftBank Wrestled Back Control of Arm China — The Japanese conglomerate had to win over the Shenzhen government to finally boot CEO Allen Wu from the top job.
- Tianqi Lithium Rolls Out $1.98 Billion Hong Kong Share Sale — Offering will be the biggest of the year in HK as the Chengdu-based company moves to pay off debt from SQM deal, expand capacity and built up working capital.
- Chinese Electric Vehicle Maker Li Auto to Sell $2 Billion of New Shares — ‘At-the-market’ offering in U.S. will raise funds for EV technologies, new-model design and replenishing working capital.
South China Morning Post
- Overseas flights in high demand as Shanghai resumes international travel after lockdown — Shanghai’s Pudong airport was crowded with students and expats, as it opened to a handful of overseas flights this week after a two-month lockdown and an easing of quarantine rules.
- China’s Communist Party nears 97 million, with more younger and educated members — Less than a third are female and the blue-collar and agriculture segment is falling.
- Fewer billionaires in mainland China as ultra-wealthy feel pain of Beijing’s tech, property crackdowns, study says — The ranks of the ultra-wealthy in mainland China slipped slightly last year as wealth creation was subdued by Beijing’s crackdowns on the technology and property sectors, according to a study by New York-based Wealth-X.
Nikkei Asia
- Analysis: New carrier’s name, Fujian, mirrors Xi’s Taiwan obsession — Leader spent 17 years in province of same name closely watching the island.
- Under-$5,000 Chinese EV hits speed bump after price hike — Hongguang Mini sales fall for two straight months as competition moves upmarket.
- Opinion: China is steadily wiping out German industry — National strategy that defined Angela Merkel era has run its course. By Diana Choyleva
Bloomberg
- Volkswagen Pulls Out All the Stops to Address China Challenges — The German manufacturer long dominated the world’s biggest car market, but local rivals are catching up fast.
- China AI Giant SenseTime Dives as Much as 51% as Lockup Expires — Chinese artificial intelligence software maker SenseTime Group Inc. slumped as much as 51% in Hong Kong on Thursday, after a lock-up of its shares expired following its December initial public offering.
- Hedge Funds Spawned by Hillhouse Burned in China Rout — For years, it’s been one of the best calling cards that hedge fund startups in Asia could ask for: getting support from billionaire Zhang Lei or gaining experience at his Hillhouse Capital Group.
- Samsung Is First to Start Mass Production of 3nm Chips — Samsung Electronics Co. kicked off mass production of 3-nanometer chips that are more powerful and efficient than predecessors, beating rival Taiwan Semiconductor Manufacturing Co. to a key milestone in the race to build the most advanced chips in the world.
- Solar Products Detained Under New US-China Law, Analyst Says — New US powers to detain imports tied to China’s Xinjiang region have been used to halt products from a major solar company, according to a key industry analyst.
Reuters
- Fans take BYD to task as recall confusion clouds Chinese EV maker’s image — Customers of China’s BYD Co Ltd , the world’s biggest electric vehicle (EVs) maker by sales, have taken the unusual step of urging regulators to expand a battery replacement recall to safeguard the reputation of a national champion.
- New Zealand PM says China more assertive, more willing to challenge rules — “We must stand firm on the rules-based order, call for diplomatic engagement and speak out against human rights abuses at all times when and where we see them,” Ardern said.
WIRED
- The Rise and Precarious Reign of China’s Battery King — Zeng Yuqun is China’s most prolific battery billionaire. His ascent has major implications for a world increasingly reliant on electric vehicles.
- China Is Racing to Electrify Its Future — The country wants electric vehicles to make up 40 percent of new cars sold by 2030—but first it has to figure out how to keep them charged.
- The World Can’t Wean Itself Off Chinese Lithium — China dominates the global supply chain for lithium-ion batteries. Now rival countries are scrambling for more control over “white oil.”
Other Publications
- The Economist: The battle between Asia’s financial centres is heating up — Hong Kong, Singapore and Shanghai each bring different advantages—and costs.
- The Economist: The pandemic is boosting sellers of traditional medicine — Whether or not they work, herbal remedies are a healthy business.
- Axios: Schumer’s CHIPS Act gambit — Senate Majority Leader Chuck Schumer (D-N.Y.) summoned a dozen Senate Democrats to his office last week with firm marching orders: Call your closest CEOs and ask them to press Republican senators on the China competition bill.
- Grid News: China has a PR problem — and it’s not just over Hong Kong. Here’s why in three charts. — A new survey shows more and more people in advanced economies hold unfavorable views of China.
