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 Xi Jinping Turns 70, but Communist Party Won’t Celebrate — Leader marks birthday quietly, with many years in power likely ahead of him.
- Beijing Must Act to Avoid an ‘L-Shaped’ Future — China’s recovery is losing momentum with remarkable speed. But Beijing still looks focused on security at the expense of growth.
- China Cuts Rates to Prop Up Flagging Recovery — Central bank’s latest move follows disappointing May data and yet another rise in youth unemployment.
- How a Chip Guru Left South Korea and Wound Up Accused of Leaking Tech to China — The former Samsung executive had a renowned career at home before working in China’s chip industry.
- Opinion: Zombie Engagement With Beijing — The Biden administration seems determined to revive an approach to China that has failed for 30 years. By Mike Gallagher.
- Executive of China-Backed Infrastructure Bank Criticizes It After Quitting — AIIB communications chief, a Canadian, says Communist Party dominates its management, allegations the bank calls baseless.
The Financial Times
- Siemens unveils big investments in China and Singapore factories — German conglomerate says it needs to diversify to serve more markets in Asia and tackle supply chain issues.
- Chinese economic data fuels gloom over recovery — Central bank cuts main policy rate as retail sales and industrial production show post-Covid rebound is fading.
- Opinion: Why geopolitical tensions don’t threaten a fresh surge in inflation — Economic globalisation hasn’t done much to hold prices down over the past three decades. By Alan Beattie.
- China to deploy deposit insurance to repay victims of rural banking fraud — Central bank agrees to share cost with local government in precedent for resolving future financial crises.
- China edges closer to embracing green hydrogen — ‘Inflection point’ for the economics of hydrogen versus coal looms in 2030.
- Canada freezes activity at ‘China’s World Bank’ after infiltration claims — Top official resigns and levels accusations that institution is controlled by Communist party members.
- HSBC and StanChart pressed by Hong Kong to take on crypto clients — Regulators are pushing for banks to accept more exchanges as clients in quest to develop digital assets industry.
- China ramps up coal power while pushing for renewables — Concerns over energy security appear to be cutting against Xi Jinping’s net zero ambitions — for now.
- China steps up diplomacy with offer to mediate in Israeli-Palestinian conflict — Beijing seeks to expand Middle East role after brokering Saudi Arabia-Iran deal.
- EU funding Huawei in critical tech projects despite bans on Chinese group — Number of sensitive Horizon Europe research programmes include communications company facing range of curbs.
The New York Times
- Blinken Plans to Meet With Top Chinese Officials in Beijing — Secretary of State Antony J. Blinken, who leaves Friday, could meet with Xi Jinping, China’s leader, during a visit he had postponed because of a Chinese spy balloon.
- Behind a Birthday Message, the Delicate Duet of Putin and Xi — The shows of bonhomie between the two leaders reflect the bond between Russia and China, which could become more fraught as Russian dependence deepens.
- TikTok, Shein and Other Companies Distance Themselves From China — Companies are moving headquarters and factories outside the country and cleaving off their Chinese businesses. It’s not clear the strategy will work.
Caixin
- Guangzhou to Offer REIT Shares in Subway’s ‘Hell Line 3’ — Selling equity in its busiest, $699 million subway line will help the Greater Bay Area city pay the multibillion-dollar tab for 11 other subway lines.
- China Ramps Up Approvals of Developers’ Share Sales — Regulators double down on support for sector, clearing $5.59 billion of private placements by six developers including Poly Real Estate and CCCG.
- Saudi Arabia Wants More Chinese Investment — The kingdom has a young and growing population and is offering attractive tax breaks to lure foreign capital, Deputy Investment Minister Saleh Khabti tells Caixin.
South China Morning Post
- Bill Gates hails China’s potential to cut poverty and improve health overseas as he unveils US$50 million research funds — In Beijing, US billionaire and philanthropist hopeful China can play a bigger role ‘addressing the current challenges, particularly those facing African countries’.
- China gives green light to nuclear reactor that burns thorium – a fuel that could power the country for 20,000 years — Technology has several advantages over uranium reactors, including better safety, reduced waste, improved fuel efficiency and suitability for use in arid areas.
- Li Qiang to make first overseas trip as Chinese premier to France and Germany — Next week’s visit comes at a time when Beijing is keen to improve ties with Europe in the face of growing US pressure.
- No bail for exiled Chinese businessman Guo Wengui — A US appeal court said he should remain in jail while awaiting trial for allegedly defrauding investors of a total of over US$1 billion.
- Xiaomi’s fight against New Delhi’s decision to freeze its funds is set to continue, amid ongoing geopolitical tensions — Xiaomi’s troubles in India have been a cautionary tale for other Chinese firms eyeing the South Asian market, with geopolitical tensions still strained.
Nikkei Asia
- Xi throws Okinawa into East Asia geopolitical cocktail — President speaks of Ryukyu’s history, with emphasis on ties with China.
- China should treat detained Japanese employee fairly: business group — Comment comes as Japan chamber of commerce calls for clarity on data laws.
- China’s hidden local government debt soars to over $8tn — Surge in borrowing, weak land sales leave half of cities struggling to pay interest.
- Palau leader calls on U.S. for help over Chinese ships in its waters — Pacific island nation’s president says he won’t cut Taiwan ties despite tensions.
Bloomberg
- EU Set to Scrap Trade Curbs to Some Chinese Firms On Russia — Companies were seen as supplying banned tech to Russian firms.
- Beijing to Reimburse IVF, Reproductive Costs as China Tackles Drop in Births — Starting July 1, services ranging from sperm optimization to in-vitro fertilization will be reimbursed in 16 medical facilities.
- Top US Chip Gearmaker Accuses China Rival of 14-Month Spy Spree — Applied Materials says Chinese-owned Mattson behind IP theft.
Reuters
- In China’s lithium hub, mining boom comes at a cost — The city of Yichun, China’s most prospective region for lithium, is ground zero in the country’s push to cut its reliance on imports of the metal for its battery industry.
- Audi chief sets sights on China in electric car catch-up — Audi has to speed up development of new models to meet a surge in demand for electric vehicles, especially in China.
- Philippines says China’s Yadea to invest $1 bln in e-motorcycle plant — Yadea is one of several electric vehicle (EV) manufacturers looking at the Southeast Asian nation for expansion of their manufacturing sites.
Other Publications
- Foreign Policy: Let’s Stop Pretending Spying Is a Big Deal — In great-power competition there is no such thing as minding one’s own business.
- Foreign Affairs: What It Will Take to Deter China in the Taiwan Strait — Washington Must Take Difficult Steps to Prevent Catastrophe.
- The Washington Post: Opinion: Can two great powers cooperate to build a safer world? It has happened before. — Just because fundamental and irresolvable differences in values and interests compel the United States and China to be formidable rivals does not mean a hot war is a viable option. By Graham Allison.
- The Economist: A new super-regulator takes aim at rampant corruption in Chinese finance — The crackdown has shown no sign of ebbing as the Communist Party gains a much firmer grip over enforcement.
- CSIS: The Promise of Strategic Shoring: Supply Chain Resilience, Economic Growth, and Development Finance — The United States should adopt a policy of strategic shoring and use its foreign assistance and other forms of development finance to support the shifting of global supply chains away from China.
- PIIE: Why China’s housing policies have failed — Loosening financing restrictions on developers and using housing as a macroeconomic stabilization tool risk reinforcing the boom-bust housing cycle.
