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 Keeps Benchmark Lending Rates Unchanged — China’s benchmark lending rates were kept unchanged, as expected, following a hold of policy rates earlier this month.
- Thought the U.S. Office Market Was Bad? Try China — World’s No. 2 economy has a huge oversupply of unneeded office space, in latest sign of country’s weak growth.
- German Industry Defies Rising Pressure to Limit China Exposure — Several large manufacturers scramble to insulate their Chinese businesses from possible Western sanctions.
- Opinion: Why Aren’t the Presidential Candidates Debating China? — Biden plays down the Communist Party threat, and Republicans, including Trump, are noncommittal on Taiwan. By Gabriel Scheinmann and David Feith.
The Financial Times
- BYD: China’s cheap EVs charge up Japanese market — Release of Dolphin model will test loyalty to domestic carmakers.
- Huawei makes processor breakthrough in flagship smartphone — Facing US sanctions, Chinese company emulates Apple by using its own designs in chips for Mate 60 Pro.
- Can Europe go green without China’s critical minerals? — The EU’s increasing demand for rare earths is causing problems for policymakers.
- Is China exporting deflation to the rest of the world? — Profit margins in supply chains will limit the spread of downward pressure on prices through exports.
- EU companies warn China on EV overcapacity — Business group says concerns Europe’s automotive sector could be swamped are ‘understandable’.
The New York Times
- Biden, in U.N. Speech, Calls for Action on Ukraine and Other Crises — As other major leaders skipped the annual opening session of the General Assembly, Mr. Biden used his address to try to counter war fatigue both at home and abroad.
Caixin
- Chinese Appliance Giant Midea Plans Hong Kong IPO — Foshan-based company frames offering as part of its globalization strategy but warns of uncertainties and doesn’t disclose a fundraising target.
- Ex-Public Security Vice Minister to Oversee Discipline at Party’s Complaints Department — Liu Zhao has been named to head the discipline inspection group at the newly established Social Work Department (SWD) of the party’s Central Committee.
- Opinion: Is China Heading for a Japan-Like Period of Economic Stagnation? — Chinese people have been socking more of their savings away in banks, but their spending has remained weak. By Vincent Chan.
South China Morning Post
- China’s top memory chip maker YMTC forges closer ties with domestic supplier to replace US parts, sources say — The company is working with Chinese suppliers to make replacements for parts made by US firm Lam Research, according to two sources.
- Chinese video gaming powerhouse miHoYo shuffles chairman role and reduces registered capital — The change in leadership at miHoYo comes at a time when the Shanghai-based firm has become the main challenger to Tencent Holdings and NetEase.
- Huawei heir-apparent Meng Wanzhou sets AI as the Chinese giant’s business focus in the next decade despite US sanctions — The executive says the telecoms giant will embrace an “all intelligence” strategy to transform itself into a key provider of computing power to support China’s AI development.
- US spy bureau NSA ‘hacked Huawei HQ’: China confirms Snowden leak — Chinese Ministry of State Security report acknowledges cyberattacks detailed in internal papers revealed by former contractor.
Nikkei Asia
- China’s GAC Group to build EV parts with Apple supplier Luxshare — Automaker ramps up electric push with $400m facility to fully launch in 2024.
- China walks fine line with eye on summits with Biden, Putin — String of high-level meetings lays groundwork for possible fall meetings.
- Vegan-friendly EVs drive animal-free leather boom in China — Japan’s Toray doubles sales of high-end upholstery material.
Bloomberg
- China Helps Japan Tourism Edge Toward Pre-Pandemic Levels — The number of foreign visitors to Japan recovered to 86% of pre-pandemic levels in August with Chinese tourists adding a boost, according to Japan’s National Tourism Organization.
- Paraguay’s Leader Defends Ties With Economic Role Model Taiwan — Paraguay’s leader defended his nation’s diplomatic ties with Taiwan and held up the Asian economy’s shift from agriculture to manufacturing as a model to follow, resisting domestic pressures to align with China instead.
- Opinion: The Fed Is a Bigger Problem Than China for Asia — Asian central bankers worry about the nation’s problems, but not as much as they do about the Fed. By Daniel Moss.
Reuters
- Exclusive: German investment in China eases in H1 after record high — The data underscores concerns that German firms continue to invest heavily in China despite the government’s pleas for companies to reduce their exposure.
- Exclusive: Huawei unit ships Chinese-made surveillance chips in fresh comeback sign — The shipments to surveillance camera manufacturers from the company’s HiSilicon chip design unit started this year, according to one of the sources.
- Germany weighs curbs on Huawei, sparking telco backlash — The ministry wants to impose the changes to 5G networks after a review highlighted Germany’s reliance on the Chinese supplier.
Foreign Policy
- China’s Defense Budget Is Much Bigger Than It Looks — The actual number could be more than double the current Western estimate.
- Why Europe Will Struggle to ‘De-Risk’ From China — The Europeans have far more to lose than the United States from curbing ties.
- How China Uses Shipping for Surveillance and Control — Beijing’s global maritime operations double as intelligence-gathering outposts.
- Does the BRI Increase China’s Influence? — Beijing’s extensive infrastructure projects don’t seem to be translating into political clout.
Other Publications
- Foreign Affairs: Why the New Cold War Will Split Africa — And How America Can Win Over the Continent.
- POLITICO: U.K. Chancellor Jeremy Hunt defends China’s invitation to AI summit — Hunt begins a multi-day visit to major U.S. tech companies on Wednesday as the country aims to expand its own artificial intelligence and life sciences industries.
- The Economist: China’s “demographic dividend” appears to be a myth — If youth didn’t drive past growth, is ageing bound to be disastrous?
- The Economist: As America’s influence wanes, Asian economies are integrating — How the continent at the heart of globalisation is reinventing itself.
- Brookings: A big-picture look at the India-China relationship — Ambassador Vijay Gokhale and Ambassador Shivshankar Menon share their views on India-China competition, the potential for cooperation or crisis, and what it means for India’s partners.
- Semafor: Africa’s biggest city is nervous about a Chinese-built metro system — The Blue Line, built by China Civil Engineering Construction Corporation, has been used by 20,000 passengers since launch on Sept. 4.
