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
- China’s Housing Crisis Keeps Brewing in Beijing’s Weak Tea — There are reports of possible bond guarantees but no clear signs of any government action bold enough to revive the property market.
- China’s Scorching Heat Leads to Power Cuts, Factory Disruptions — Foxconn, VW, Toyota plants hit in Sichuan; crop output also affected.
- China to Join Russia Military Exercises as U.S. Rivals Deepen Ties — Moscow plans to hold drills in its Far East region near the border with China and North Korea from Aug. 30 to Sept. 5.
- Tencent Posts First Revenue Drop Since 2004 IPO — Economic woes weigh on Chinese social-media giant’s online-ad revenue, while regulatory scrutiny hits videogame business.
The Financial Times
- China boosts coal usage as extreme heat triggers power shortages — Beijing pledges support for sector as drought in south-west fuels surge in demand.
- Geely Auto earnings squeezed by Covid lockdowns and chip shortage — Pre-tax profit drops 55% in first half of year but Chinese carmaker expects demand to recover.
- China’s largest property group warns of 70% plunge in profit — Country Garden’s plight highlights ‘humongous moral hazard’ for Beijing from cash-strapped developers.
- US and Taiwan to hold trade talks amid China tensions — Move follows flurry of Chinese military manoeuvres after Nancy Pelosi’s visit to Taiwan.
- Tencent hurt by slowing Chinese economy and stalled game approvals — China’s most valuable company posts first quarterly revenue fall after missing analysts’ expectations.
- Toyota and Foxconn hit as drought leads to record low Yangtze River level — Extreme weather in China’s Sichuan province slashes hydropower capacity.
The New York Times
- China’s Heat Wave Strains Its Economy — A severe drought has dented energy supplies and disrupted access to water for hundreds of thousands. Cities order rolling blackouts; farmers rush to save crops.
- Taiwan and U.S. to Begin Formal Trade Talks — The announcement comes amid tensions with China over the self-governing island, which several American lawmakers recently visited.
Caixin
- In Depth: SPACs Appear to Lose Shine in Singapore and Hong Kong — While both Asian financial hubs expected a shot in the arm from approving ‘blank check’ companies, the reception has been lukewarm.
- Exclusive: Guangdong to Kick Off 6.7 Million Kilowatts of Coal Power Projects — Southeastern China’s Guangdong province will kick off five coal-fired power projects with construction to start by the end of September and production by the end of 2024, Caixin learned from sources.
South China Morning Post
- Bizarre clip of medical workers testing live seafood widely ridiculed for insane extent of China’s dynamic zero-Covid rule — A video of medical workers in hazmat suits inserting test swabs into the mouths of live fish and on shellfish has been ridiculed on mainland Chinese social media as authorities fight new Omicron subvariant outbreak.
- China to sell US$230 billion of local debt as fiscal income slumps amid coronavirus, property pressures — Local authorities in China are believed to have room to issue an extra 1.55 trillion yuan (US$229 billion) in special debt and bonds this year to support infrastructure investment.
- China still an investment hotspot for European firms despite rising geopolitical tensions — Despite rising geopolitical tensions, investment from the European Union into China was up 15 per cent in the first half of 2022 compared to a year ago, according to data from Rhodium Group.
Nikkei Asia
- As China’s secretive party conclave ends, rising star vice premier in focus — Hu Chunhua, member of rival power bloc to Xi, seen as potential premier.
- U.N. expert says minorities suffer slavery in China’s Xinjiang — Special rapporteur claims forced labor could amount to ‘crimes against humanity’.
- Hong Kong exchange sees further headwinds after profit dips 27% — But ‘homecoming’ listings by Chinese companies offer optimism.
Bloomberg
- China’s Biggest Builder Warns Core Profit Could Plunge 70% — China’s largest developer Country Garden Holdings Co. warned that first-half earnings probably tumbled as much as 70% amid an escalating property crisis in the country.
- China’s Li Pledges to Keep Favorable EV Policies in BYD Visit — China will continue to adopt policies aimed at spurring the production and purchase of electric cars, Premier Li Keqiang told BYD Co., one of the nation’s biggest automakers, during a tour of the company’s headquarters in Shenzhen on Wednesday.
- Joshua Wong to Plead Guilty in Hong Kong’s Biggest Security Case — Hong Kong activist Joshua Wong will plead guilty in the city’s largest national security case, local media reported, after being detained for more than a year without a trial date under the China-drafted law.
- Opinion: Don’t Believe the Grim Forecast. China Inc. Is Just Fine — Beijing’s poor headline numbers aren’t the only story — and that means investors need to use a new lens to assess the economy. By Anjani Trivedi
Reuters
- Yangtze tributary runs dry as China faces another month of drought — Residents living near a tributary of the Yangtze river in the southwestern region of Chongqing clambered along the dry riverbed on Thursday amid an unprecedented drought across the region that could last another month.
- Canadian lawmakers plan Taiwan trip amid rising China tensions — A delegation of Canadian lawmakers plans to visit Taiwan in October to seek economic opportunities in the Asia Pacific region, Liberal Member of Parliament Judy Sgro said on Wednesday, a move that could further stoke tensions between China and the West.
Other Publications
- Politico: U.S., Taiwan agree on negotiating mandate for trade talks — The first round of negotiations is expected early this fall.
- MIT Tech Review: Inside the software that will become the next battle front in US-China chip war — The US has moved to restrict export of EDA software. What is it, and how will the move affect China?
