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
- Asian Markets Rise on China’s Property Stimulus Measures — U.S. markets were closed for Labor Day, while Chinese indexes led gains in Asia.
- Italy Seeks to Leave China’s Belt and Road Initiative—Without Angering Beijing — Rome’s disappointment with infrastructure accord comes as Western skepticism grows about China’s global economic ambitions.
- Yes, There Is a Bull Case for Investing in China — Contrarians might have passed over China, but the point of being a contrarian is to venture to places others shun.
- China’s Xi Decides Not to Attend G-20 Summit in India — Beijing is sending No. 2 official instead in a rare move amid tense relations with New Delhi.
- Investors Flock to Battery Recyclers in Hunt for Climate Law Winners — The new investments come despite market turbulence for clean-energy startups.
- In EV Transition, German Carmakers Lag Behind Tesla and China — Chinese upstarts and Elon Musk’s U.S. giant grab spotlight at Munich auto show, highlighting woes of Germany’s flagship industry.
- China’s Country Garden Makes Overdue Dollar-Bond Payments, Avoiding Default — Property company pays $22.5 million in coupons to bondholders just before the end of 30-day grace period.
- China Creates Government Body to Support Private Sector — Beijing’s efforts to undo damage to business confidence unlikely to shift the needle for sputtering economy, analysts say.
- Chinese Gate-Crashers at U.S. Bases Spark Espionage Concerns — Washington has tracked about 100 incidents involving Chinese nationals trying to access American military and other installations.
- EVs Elbow Out Internet Titans as China’s Business Darling — Investors and talent pile into China’s EV and battery industries, increasingly engines of country’s growth.
- The Disappointing Bet That Could Turn Into the Biggest IPO of the Year — SoftBank’s lofty ambitions for chip maker Arm have fallen short. Now the market is about to issue its verdict.
- In New Moon Race, Russian Crash Shows the Chief U.S. Rival Is China — Geopolitical tensions on Earth threaten to drive Cold War-style division in space.
- U.S. Arms Makers Look Overseas to Boost Stockpiles — Amid Ukraine war and China concerns, Pentagon supports ‘friend-shoring’ manufacturing lines abroad.
- China’s Neighbors Shouldn’t Cheer On Its Slowdown — Asian markets have been rallying even as China falters, but that may not last.
- China Is Lashed by Typhoon Rivaling Idalia — Hong Kong issued highest storm alert as Saola bore down on financial center.
- Arm Looks to Target IPO at $50 Billion to $55 Billion Valuation — Arm plans to start meeting with prospective investors as early as Tuesday.
- Where to Find a Deal on Mercedes and BMW — The stocks have rarely been cheaper as investors foresee a deep crisis that may never come.
- Tesla Unveils Refreshed Model 3 With Longer Range—and a Steeper Price Tag — Sleeker version adds a screen for rear-seat passengers but isn’t the cheaper offering that some company watchers had expected.
- Pope Francis Travels to the Doorsteps of Russia, China — Pontiff is set to minister to a flock of fewer than 1,500 Mongolian Catholics.
- Opinion: The Book Banners of Hong Kong — The city is purging libraries on the mainland China model. By The Editorial Board.
The Financial Times
- Russia proposes joint naval drills with North Korea and China — Exercises would be a first for Pyongyang as it tightens ties with Moscow.
- China’s spy agency blasts US for ‘engagement and containment’ approach — Beijing’s state security ministry hints possible meeting between Xi Jinping and Joe Biden in November is at risk.
- China’s battery plant rush raises fears of global squeeze — State subsidies follow steel and solar panel playbook in reinforcing race for market share.
- Chinese developer Country Garden avoids default on dollar bonds — Struggling property group’s shares trim day’s losses as it makes two coupon payments.
- Investors raise questions after Sequoia Capital’s turbulent year — Silicon Valley’s premier venture firm undergoes ‘profound change’ after China splits and soured bets on FTX and Twitter.
- BMW chief warns EU combustion engines ban is stoking price war with Chinese rivals — Zipse sees ‘imminent risk’ to European makers of cheaper cars vying against brands such as BYD.
- Why the electric vehicle battery race needs a recycling revolution — Uncertainty over which cells will power tomorrow’s cars among factors complicating efforts to reuse raw materials.
- China fast-tracks approval of large batch of ETFs — Move coincides with flurry of measures aimed at stimulating stock market.
- Xi Jinping puts China’s security ahead of tackling its economic woes — Leadership wary of enacting stimulus that adds to government debt or risks financial instability.
- Chinese lenders extend billions of dollars to Russian banks after western sanctions — Beijing has pushed renminbi as alternative global currency to dollar.
- The looming succession battle over the Dalai Lama — The passing of Tibet’s spiritual leader could spark one of the most extraordinary stand-offs in global politics.
- Billionaire founder of Foxconn leaves board to pursue Taiwan presidential bid — Terry Gou still largest shareholder of world’s biggest iPhone maker.
- China’s economic slowdown reverberates across Asia — South Korea mired in longest manufacturing slump since 1970s.
- Tech suppliers in China skip seasonal hiring rush amid weak demand — Lack of usually lucrative temp work this summer also blamed on shifting supply chains.
- Xi Jinping’s absence challenges G20 status as global leadership forum — China’s president will send his deputy to next week’s summit in New Delhi.
- Making space for India — Chandrayaan-3 has big implications for the rocket leagues.
The New York Times
- When It Comes to China, Pope Francis Keeps Criticism in Check — Francis called relations with Beijing “very respectful,” though few clergy or Catholics from China went to see him during a visit to Mongolia, seemingly fearing reprisals.
- Chinese Cars Star at Munich Auto Show, Underscoring German Economic Woes — China, an electric-vehicle juggernaut, will have at least seven brands on display, while Germany’s automakers are now a drag on their home economy.
- Country Garden Makes $22.5 Million Payment, With $15 Billion To Go — The embattled Chinese property giant is said to have avoided default by meeting a deadline to pay interest on small loans. But it must repay billions within the next year.
- Caught Between China and the West, a Pacific Island Nation Ousts Its Leader — The prime minister of Vanuatu lost his job after he was criticized for veering too close to the West. He accuses his successor of being too cozy with China.
- China’s Leader Looks Set to Skip G20 Summit in Snub to India — Xi Jinping has never missed the annual Group of 20 gathering since taking power in 2012. Beijing would not explain his apparent decision to forgo the event in New Delhi.
- Faced With Evolving Threats, U.S. Navy Struggles to Change — A new generation of cheaper and more flexible vessels could be vital in any conflict with China, but the Navy remains lashed to big shipbuilding programs driven by tradition, political influence and jobs.
- China’s Biggest Homebuilder Reels as Economy Slows — Once considered a survivor of China’s real estate turmoil, Country Garden is now at the center of the crisis and threatens the broader economy.
- China to Its People: Spies Are Everywhere, Help Us Catch Them — As Beijing tries to enlist the “whole of society” to guard against foreign enemies, the line between vigilance and paranoia fades.
- How Xi Returned China to One-Man Rule — For decades, China built guardrails to prevent another Mao. Here’s how Xi Jinping has dismantled them and created his own machinery of power.
- Opinion: America Is an Empire in Decline. That Doesn’t Mean It Has to Fall. — In responding to the inevitability of China’s rise, the United States needs to ask itself which threats are existential and which are merely uncomfortable. By John Rapley.
- Opinion: Will Tensions With China Suck the Fun Out of American Movies? — Since the end of my active-duty Navy service, I’ve performed in, executive produced and advised dozens of Hollywood depictions of military life. Congress, however, may soon complicate that work. By Kaj Larsen.
Caixin
- Beijing Passes Law Allowing Foreign States to Be Sued in China — The 23-article law, approved by the National People’s Congress (NPC) Standing Committee, will take effect starting Jan. 1, 2024.
- New Huawei Handset Selling Fast in China as Chip Speculation Swirls — Chinese consumers have been buying Huawei’s latest flagship smartphone faster than stores can keep up with online and in some parts of the country.
- China Creates New Agency to Support Private Sector — China is creating a new government entity to assist private businesses in a fresh effort to bolster the economy and reinvigorate business confidence.
- Cover Story: Are Chinese Solar Giants Flying Too Close to the Sun? — China’s solar panel makers, who already account for up to 95% of global manufacturing capacity, are doubling down on their investment in the booming segment.
- Weekend Long Read: Why Adapting to Climate Change Has Become a Necessity — From July 29 to Aug. 1, the Beijing-Tianjin-Hebei region suffered historically heavy rains. According to the National Climate Center, it rained in Beijing for 83 straight hours.
South China Morning Post
- Shadow agents in China’s talent war help recruit outstanding overseas scientists to boost self-reliance — A growing number of talent agencies are using low-key methods that stay firmly out of the spotlight in their global search for scientists.
- China’s big cities promise incentives to retain foreign research centres, talent as ‘uninvestable’ spectre haunts outlook — Beijing and Shanghai roll out packages to make it easier on expats who continue to see China’s problematic regulatory and geopolitical environment as a deterrent.
- Police in China and Myanmar detain 269 in cyber scam crackdown — Joint operation brings down 11 criminal bases in northern Myanmar in one of biggest stings on cybercrime gangs in Southeast Asian country.
- Baidu teases Ernie 4 large language model after China approves ChatGPT-style chatbots for public use — The Beijing-based search giant will soon launch a new version of its large language model, founder and CEO Robin Li says.
- Opinion: In calling it a great power contest, the US is whitewashing its aggression towards China — The US-China conflict is a struggle between an aggressor and a resisting party. Casting it as a geopolitical contest suggests both parties share equal responsibility. By Zhou Xiaoming.
Nikkei Asia
- Analysis: Xi reprimanded by elders at Beidaihe over direction of nation — G20 absence hints at turmoil in Chinese domestic politics.
- ASEAN summit begins as China’s new territorial map fuels tensions — Biden skips regional platform; Cambodia’s Hun Manet makes diplomatic debut.
- U.N. labor group makes low-profile visit to Xinjiang — Uyghur activists say trip serves Communist Party’s interests.
- Opinion: China does not feel like an economy in crisis — Amid talk of high youth unemployment, trains, cinemas and concerts are full. By Zhou Xin.
Bloomberg
- Why China Is Avoiding Using ‘Bazooka’ to Spur Economy — Much of the reluctance lies in a drive by President Xi Jinping’s government to control the growth of debt in the country.
- Alibaba Cloud Eyes State Firms for Up to $3 Billion Funding — Selling stakes to China’s so-called national team ahead of the spin-off could alleviate Beijing’s security concerns around the business.
- Huawei Teardown Shows Chip Breakthrough in Blow to US Sanctions — The company’s Mate 60 Pro is powered by SMIC’s 7nm chips, according to analysis that TechInsights conducted for Bloomberg News.
Reuters
- Exclusive: China to launch $40 billion state fund to boost chip industry — It is likely to be the biggest of three funds launched by the China Integrated Circuit Industry Investment Fund, also known as the Big Fund.
- China’s Moutai, Luckin launch alcohol-tinged latte to woo young Chinese consumers — The launch comes amid a slowing economy and as Kweichow Moutai, whose alcohol sells at an average market guide price of 1,499 yuan, has been looking for ways to be more accessible and pull in a new generation of users.
- German suppliers welcome Chinese EV makers’ European plans — Major German auto suppliers are eager to expand on existing partnerships in China and provide those rising manufacturers with European-made parts.
Other Publications
- Quartz: Keeping forced-labor cotton out of the US is proving nearly impossible — Small-batch customs seizures barely scratch the surface of how deeply cotton from Xinjiang is embedded in the global supply chain.
- Foreign Policy: U.S. Deterrence Against China Is Not Working — With U.S. military superiority in Asia no longer a given, defense planners need a different strategy.
- The Washington Post: In China’s shadow, U.S. rushes back to neglected Indian Ocean island — In the 27 years since the United States pulled out, China has built schools, hospitals, houses for low-income families and public amenities, winning sympathy among Seychellois who felt abandoned by the U.S. departure.
- The Economist: Meet Ernie, China’s answer to ChatGPT — Baidu’s bot is catapulting its maker back to stardom.
- Rest of World: Apple suppliers are scrambling to fill over 40,000 jobs in Vietnam — Foxconn and Luxshare slashed workers. But under pressure to expand away from China, they suddenly need them back.
