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 New Securities Chief Meets With Market Participants — The Chinese securities regulator’s newly appointed head has assured market participants that the regulator will respond to market concerns to strengthen the country’s capital markets that have been battered by weak investor confidence.
- Chinese Banks Slash a Key Lending Rate as Economy Falters — China’s longer-term benchmark lending rate was lowered this month after the central bank held its policy rates steady, according to data released by the People’s Bank of China.
- India Frees Accused Chinese Spy—a Racing Pigeon — A feathered intruder sparks a diplomatic flap and months of detective work. But was the bird just a fall guy?
- Ozempic Is Taking Off With the World’s Largest Obese Population — A growing gray market for the weight-loss treatment is posing a regulatory conundrum in a country with a serious obesity problem. (Hint: It isn’t the U.S.)
- Chinese Travelers Hit the Road but Pinch Their Pennies — More Chinese travelers hit the road during the Lunar New Year holiday than ever before, but in a sign of postpandemic caution, many restricted themselves to shoestring budgets.
- One of the World’s Most Expensive Luxury Property Markets Is Becoming a Lot Cheaper — Hong Kong’s superluxury homes have lost more than a quarter of their value. Prices haven’t hit the bottom yet.
- Aboard a U.S. Aircraft Carrier, a Front-Row Seat to China Tensions — Both countries are staging naval exercises east of Taiwan, a vital region that would be prized in any East Asia conflict.
- Chinese Travel Stocks Rise After Lunar New Year Break — China’s travel stocks traded higher after government data showed robust domestic travel during the weeklong Lunar New Year break.
- China Reports Smallest Foreign Investment Increase in Over Two Decades — China reported the smallest amount of annual foreign direct investment since the 1990s last year, amid capital outflow pressure and challenges attracting foreign capital due to tensions with the West.
- FBI Director Says China Cyberattacks on U.S. Infrastructure Now at Unprecedented Scale — Christopher Wray warns that Beijing’s efforts to covertly plant malware could disrupt critical networks in the U.S.
- Even World’s Biggest Electric-Vehicle Market Is Slowing — China’s government is urging carmakers to expand overseas, while EV-maker BYD is ramping up its export targets.
- Trump Foreign Policy 2.0: Fewer Allies, Less Trade, More Loyalists — President Biden and others warn that another term with Donald Trump in the White House would yield global chaos and an emboldened Vladimir Putin.
The Financial Times
- Boeing’s crisis may open gap for Chinese jets to fly through — Demand for air travel is booming in south and south-east Asia, which are less sensitive to US-China tensions.
- China cuts mortgage-linked lending rate by record amount — Five-year loan prime rate reduction unlikely to offer imminent relief to flagging home sales, analysts say.
- Australia to build biggest navy since second world war to meet China threat — Planned upgrade follows defence review that highlighted Beijing’s military expansion in Pacific.
- Chinese companies revive Mao-era militias — People’s Liberation Army mobilisation units reflect Xi Jinping’s focus on security as economy slows.
- Singapore, Hong Kong Spac failures highlight thwarted ambitions — Lack of new listings and stalled mergers dim prospects for ‘blank-cheque companies’.
- Defendant had ‘no idea’ bitcoin funds were proceeds of alleged £5bn fraud, UK court told — Jian Wen has pleaded not guilty to charges of laundering money for her fugitive former boss who is wanted in China.
- China coastguard boards Taiwan tourist boat — Rare inspection raises tensions around Taipei-controlled island of Kinmen just off the Chinese coast.
- China’s new year splurge could give luxury a fresh start — Strong spending data has boosted Chinese stocks as trading resumes after week-long break.
- ‘Strings attached’: Saudi Arabia steps up demands in tech deals with China — Alibaba and SenseTime secure huge joint ventures in Gulf kingdom but agreements come with stringent requirements.
- China’s Xpeng to boost spending to survive ‘bloody sea’ of EV competition — Chief executive says company is hiring thousands of new staff for autonomous driving and AI.
- Foreign direct investment in China falls to lowest level in decades — World’s second-largest economy struggles to recover as investors seek higher yields.
- US warns China against dumping goods on global markets — Western governments fear Beijing may try to ease domestic overcapacity with cheap exports.
- The US needs a better strategic narrative or it will cede influence to China — Department of Defense experts complain it is easier to drop a bomb than get approval to launch ‘information fire’.
- FBI warns Chinese malware could threaten critical US infrastructure — Agency director Christopher Wray says Beijing’s hacking operations have reached a ‘fever pitch’.
- Year of the Dragon opens on high note for China’s economy — Tourist numbers exceed pre-pandemic levels but spending per traveller is down.
- Investors hope for catch-up rally as Chinese stocks reopen — Shanghai and Shenzhen exchanges tipped for gains after 10-day Lunar New Year holiday.
- China’s EV suppliers look to leverage superior tech to recouple with west and drive expansion — Industry says it can help lower costs and enable faster development of electric vehicles in the US and Europe.
- Liquidators for China’s Evergrande prepare to sue PwC over audits — Big Four firm audited the highly indebted developer as it grew fast during China’s real estate boom.
- EU launches anti-subsidy probe into Chinese train maker — A subsidiary of CRRC is accused of undercutting its European rivals for an electric train contract in Bulgaria.
The New York Times
- Low Prices Lure Hong Kongers to China — Hong Kong residents are finding in Shenzhen, the mainland city next door, lower prices, better service and tasty cuisine.
- Volkswagen and BASF Are Reconsidering Ties to Xinjiang, China — Volkswagen and BASF, two German giants, are reassessing their activities in the region, where the Chinese government has cracked down on Muslim minorities.
- U.S. Fears Russia Might Put a Nuclear Weapon in Space — American spy agencies are divided on whether Moscow would go so far, but the concern is urgent enough that Secretary of State Antony J. Blinken has asked China and India to try to talk Russia down.
- Some Authors Were Left Out of Awards Held in China. Leaked Emails Show Why. — When some books, including best sellers, were conspicuously absent from the science fiction Hugo Awards last year, writers and fans became suspicious.
Caixin
- China’s Bond Funds Outshine Equity Peers Amid Stocks Slump — Rising popularity of bond funds gives the mutual fund industry a much-needed boost as it grapples with stock market rout.
- Former BOC Chief Charged for Bribery, Illegal Loan Issuance — Former bank chairman accused of taking huge amounts in bribes is the latest financial veteran caught in anti-corruption net.
- Cover Story: Summers on Secular Stagnation and Lessons for China — In a recent visit, the former U.S. Treasury Secretary Lawrence Summers said China and the U.S. must find a way to work together to address global stagnation.
- Analysis: Property Slump, Weak Confidence Loom Over Stellar China Lunar New Year Travel Data — The boom is likely short-lived, as fundamental issues of weak consumer confidence and the struggling property market remain, analysts say.
South China Morning Post
- Chinese start-up Moonshot AI raises US$1 billion in funding round led by Alibaba and VC HongShan amid strong interest for OpenAI-type firms — Beijing-based Moonshot AI, known in Chinese as Yuezhi Anmian, was valued at about US$2.5 billion in its latest funding round.
- China launches nationwide survey on data resources, from AI firms to police — Related entities are being asked how they produce, store, circulate, trade, develop and use data, and also about data security.
- African donkey trade ban to slash China’s supply of traditional medicine ejiao — Chinese demand for the hides accounts for the slaughter of more than 5 million animals each year, many from Africa.
- Chinese start-up EmdoorVR counts on Apple Vision Pro lookalike to break into consumer headset market — Shenzhen-based headset maker EmdoorVR is hoping to leverage the interest around Apple’s Vision Pro to survive a slowdown in the VR and AR industry.
- Chinese smartphone vendors from Meizu to Oppo step up AI integration in their devices amid expected industry recovery in 2024 — Increased artificial intelligence integration in Chinese handsets shows how a new tech arms race in the smartphone industry is heating up, as the global market is poised for a recovery in 2024.
Nikkei Asia
- U.S. trade curbs spur China business for Japan chip industry — Japan’s semiconductor equipment makers are enjoying strong demand from China, in part due to trade controls imposed by Washington and to Beijing stepping up efforts to boost the local chip industry.
- China foreign minister courts Europe in wake of Trump’s NATO taunt — Chinese Foreign Minister Wang Yi on Saturday urged European countries to deepen cooperation with China as Beijing seeks to cement its position as a major player in global diplomacy.
- China’s smaller cities face yearslong housing glut as sales languish — Smaller regional cities are dealing with the worst effects of China’s housing market woes, as years’ worth of excess inventory weighs heavily on the private developers that have focused on those areas.
Bloomberg
- China Protests Over Labor, Property Issues Rise, Report Says — Some 952 “dissent events” were recorded in the fourth quarter, the most in any such period of 2023, according to Freedom House’s China Dissent Monitor project.
- US Bid to Loosen China’s Grip on Key Metals for EVs Is Stalling — Washington’s efforts have so far had limited success, and some mining executives complain of a lack of coherent strategy at a time when metal prices are falling.
- China’s Premier Urges ‘Forceful’ Action to Boost Confidence — Chinese Premier Li Qiang called for “pragmatic and forceful” action to boost the nation’s confidence in the economy, underscoring the government’s concern with a struggling recovery and stock rout.
- China Exerts Grip on Tech as Beijing Expands Economy Control — China’s ruling Communist Party will play a bigger role in steering its vast technology industry, the latest sign that Beijing intends to exert more influence over swathes of the world’s No. 2 economy.
Reuters
- In unusual move, China offers to back Hungary in security matters — During a visit to Budapest, Wang said he hoped such efforts would be “a new highlight of bilateral relations” in areas such as combating terrorism and trans-national crimes.
- How Elon Musk’s SpaceX was boosted in Indonesia by a Chinese rocket failure — A senior government official and two industry officials in Jakarta familiar with the matter told Reuters the malfunction marked a turning point for Indonesia to move away from Chinese space contractors in favour of companies owned by Musk.
- Australian writer Yang Hengjun won’t appeal suspended death sentence in China – family — A pro-democracy blogger and spy novelist, Yang is an Australian citizen born in China who was working in New York before his arrest at Guangzhou airport in 2019.
Other Publications
- Rest of World: Want to stop livestreaming? That’ll be $42,000 — Chinese livestream agencies promise influencers fame and money, but end up trapping them in multi-year contracts.
- CSIS: Redefining the Nuclear Equation: Modernization and Strategic Wisdom in India-China Dynamics — A longstanding assumption about numerical superiority being an effective deterrent can prove to be obsolete in the context of nuclear dynamics between India and China.
- The Economist: Does the US Army’s future lie in Europe or Asia? — It could not wage wars in both at the same time.
- AP: US rivalry with China expands to biotech. Lawmakers see a failure to compete and want to act — The Chinese Embassy said those behind the bills have an “ideological bias” and seek to suppress Chinese companies “under false pretexts.”
- Foreign Affairs: The Next Tripartite Pact? — China, Russia, and North Korea’s New Team Is Not Built to Last.
