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
- Global Military Spending Hits Record Amid Ukraine War, China Tensions — Military expenditure in Europe rises at fastest rate in 30 years.
- China’s State-Owned Firms, Long Market Laggards, Are Suddenly Stars — Chinese official statements are full of warm feelings for business again, but investors are signaling caution.
- A Satellite Phone That Works Anywhere? The U.S.-China Rivalry Makes That Harder. — Both countries want to dominate the technology, and that makes having one system that works in both countries tricky.
- U.N. Confirms India’s Population Is Overtaking China’s — Demographic shift to occur this month, according to estimates.
The Financial Times
- Asian stocks extend slide as China growth fears rise — Hang Seng Tech index posts largest daily decline since March while European equities also fall.
- Only 10 carmakers will survive global EV battle, says Tesla rival Xpeng — Electric-vehicle group’s vice-chair calls on Chinese producers to expand beyond domestic market.
- UK foreign secretary calls for constructive ties with China — James Cleverly to face down hawkish Tories with speech stressing need to work with Beijing.
- Chip war adds to growing tensions between China and the west — Also in this newsletter: Europe’s first $500bn company, Apple’s move into financial services, fishy business in the south Pacific.
- India passed China as world’s most populous country in April, UN says — Country’s population set to grow for several decades, while the number of people in China declines.
The New York Times
- U.S. Indicts Four Men in Scheme to Launder Cryptocurrency for North Korea — The effort demonstrated the creativity and resolve of an isolated country intent on defying demands that it abandon its nuclear weapons program.
- China Drops Covid P.C.R. Test Rule for Inbound Travelers — It was not clear, however, whether travelers would still be required to take antigen tests.
- Opinion: Hong Kong’s Memory Is Being Erased — The gagging of dissenting voices and editing of the past has happened at warp speed, mirroring the blink-and-you-miss-it modern news cycle. By Louisa Lim
Caixin
- In Depth: China’s Struggle to Unify Localized Health Insurance — China’s health care system is plagued by inequity. The number of top-tier, or tertiary, hospitals is heavily skewed toward eastern regions, and almost half of the country’s top 50 hospitals are in Beijing and Shanghai.
- Private Equity Firm Is Said to Take Over Tomorrow-Linked Huaxia Life Assets — State-owned company forms $4.91 billion fund with 11 insurers to dispose of risk assets of business seized by Chinese regulators.
South China Morning Post
- Apple supplier Foxconn sets up global business base in iPhone city in show of commitment to China — Apple’s biggest contract manufacturer reaffirms its commitment to central China’s Henan province amid increasing moves by the iPhone maker to diversify its supply chain.
- Relief as Chinese firm reaches royalty deal on Congo cobalt mine, but stockpile sparks price fears — Deal between China’s CMOC and state-owned Gecamines over world’s No 2 cobalt mine puts to rest dispute dubbed ‘poster child for the beginning of the end for Chinese miners’ in Congo, analyst says.
- Opinion: China has been in diplomatic overdrive, but has anything changed? — Qin Gang’s first few months as foreign minister have been packed with meetings and overseas trips. By Shi Jiangtao
Nikkei Asia
- China’s planned changes to espionage law alarm foreign businesses — Fears grow of more cases like Astellas employee’s detention.
- Ex-China newspaper editor indicted over info leak to Japan diplomats — Beijing cracking down on suspected espionage amid tense relations with Tokyo.
- U.N. expert warns Hong Kong security law compromising judiciary — Letter comes as city pushes for veto on foreign lawyers, other powers.
Bloomberg
- China Paves Way for National Property Tax With New Network — China has cleared a major technical hurdle for rolling out a national property tax for the first time by setting up a nationwide real estate registration system.
- China Major Chipmaker-Backed Firm Set for Top Asia IPO This Year — A chip foundry backed by China’s top semiconductor firm is set to raise $1.4 billion in Asia’s biggest initial public offering so far this year, as Beijing ramps up efforts to finance its tech race against Washington.
- China to Scrap PCR Test For Inbound Travelers in Latest Easing — China will no longer require travelers to the country to provide a negative PCR test result, scrapping a rule that’s been a major deterrent for visitation since the world’s second-largest economy emerged from Covid isolation in January.
- Ex-Harvard Chemist Should Get 90 Days Over China Ties, US Says — Retired Harvard chemist Charles Lieber, convicted in 2021 of hiding his ties to a Chinese talent recruitment program from the US, should get 90 days in jail, prosecutors said.
Reuters
- China completes landmark national real estate registration system — In 2014, China issued rules requiring real estate owners to register their holdings with authorities but faced heavy resistance from local governments unwilling to open up their books.
- UK warns China secrecy over military expansion risks ‘tragic miscalculation’ — British foreign minister James Cleverly will urge China to be more open about the reasons behind what he called the biggest military build-up in peacetime history.
- Canada’s Ontario Teachers’ fund closes China equity investment team — In a statement to Reuters, OTPP spokesperson Dan Madge confirmed the firm will “no longer have country-focused stock-picking teams based in Asia”.
Other Publications
- The Economist: How to make it big in Xi Jinping’s China — We crunch the numbers on the country’s most valuable startups.
- The Guardian: UK expected to stop funding Chinese state-linked Mandarin teaching schools — Secretive visa scheme has been used to fast-track Chinese staff to promote Communist party values at Confucius Institutes.
- Foreign Policy: America Has Dictated Its Economic Peace Terms to China — By refusing negotiation over China’s rise, the United States might be making conflict inevitable. By Adam Tooze
