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.
Paid subscribers automatically have this list emailed directly to their inboxes every day by 10 a.m. EST. Subscribe here.
The Wall Street Journal
- Xiaomi’s Quarterly Results Beat Estimates but Annual Sales Fall — Xiaomi posted a 51% rise in quarterly profit as higher smartphone sales after the pandemic offset expenses for its first electric car launching next week.
- XPeng Narrows Losses as Revenue Accelerates, Sees More Growth Ahead — Quarterly revenue more than doubled from a year earlier.
- Hong Kong Approves New National-Security Law That Worries Foreign Executives — The city’s officials say domestic legislation covering state secrets and foreign interference is necessary and won’t affect normal businesses.
- China Evergrande Fraudulently Boosted Sales, Regulator Says — The China Securities Regulatory Commission plans to impose a lifetime ban on the property company’s founder, Hui Ka Yan.
- Taiwan’s Tough Call on How to Stop China: Bigger Weapons or Lots of Cheap Ones — Shoulder-fired missiles, drones and sea mines have been pushed by the U.S. as a less-expensive defense against invasion. Now Taipei must figure out if it needs more tanks and jet fighters in the mix.
The Financial Times
- Hong Kong passes tough new security law — Critics say legislation will further erode civil liberties in the Chinese territory.
- Chinese pharma group lobbies against US bill raising national security concerns — The proposed legislation seeks to restrict WuXi AppTec and other biotech companies with large operations in the country.
- Abu Dhabi fund offers to buy out investors fleeing China private equity — Deal with Hong Kong-based PAG could provide exit at a discount for US pension funds.
- Chinese authorities accuse Evergrande of inflating revenues by $80bn — Preliminary decision by regulator marks first detailed allegations against developer and its founder Hui Ka Yan.
- Chinese and western scientists identify ‘red lines’ on AI risks — Top experts warn existential threat from AI requires collaboration akin to cold war efforts to avoid nuclear war.
The New York Times
- Hong Kong Security Law Could Damage City’s Image as Financial Hub — Some firms have already moved staff out of the city since the Chinese government took a heavier hand in 2020.
- What to Know About Hong Kong’s Article 23 Legislation — The legislation marks another significant erosion of freedom in a former British colony once known for its relative autonomy from Beijing.
- Hong Kong Adopts Sweeping Security Laws, Bowing to Beijing — The legislation targets “external interference” and the theft of state secrets, with implications for businesses, journalists, civil servants and others.
- Blinken Warns China Against Armed Attack on Philippines — The secretary of state struck a balance seemingly meant to deter China while avoiding a dangerous escalation with Beijing.
- China Evergrande Founder Accused of Exaggerating Revenue by $78 Billion — China’s securities regulator fined the developer’s founder, Hui Ka Yan, and banned him from participating in the country’s financial markets for life.
- Tesla’s Troubles Raise Questions About Its Invincibility — As the share price plunges, investors wonder whether the company, led by Elon Musk, can withstand intensifying competition.
- Chinese Magnate Admits to Making Straw Donations to N.Y. Politicians — Mayor Eric Adams was among those who received illegal donations from Hui Qin, a Chinese businessman, a person familiar with the federal case said.
Sponsored by WireScreen
Navigate China’s Business Landscape with Confidence — Easily manage complex trade compliance issues like FDPR, UFLPA, EAR & ITAR, and End User Verification.
Caixin
- Hong Kong Has Twice as Many Single-Family Offices as Singapore, Survey Reveals — Hong Kong’s more flexible tax policies make it a formidable competitor in private wealth management, says Deloitte.
- WeChat Pay Operator Approved to Raise Registered Capital to 15.3 Billion Yuan — With the increase, Tenpay’s registered capital will be more than 15 times higher than the current 1 billion yuan.
- Alibaba Shakes Up Freshippo Leadership, Signaling Potential Sale — New CEO’s appointment raises speculation that Alibaba is preparing to sell off its grocery arm Freshippo.
South China Morning Post
- Taiwan’s vice-president-elect Hsiao Bi-khim courts mainland China’s wrath with visit to Czech Republic — Beijing warns Prague to stick by its promise to recognise Taiwan as an ‘inseparable part of China’ and ‘severely restrain’ Czech politicians.
- Chinese tech giant Lenovo boosts AI efforts with new servers, professional computers powered by Nvidia GPUs and software — The Chinese giant has added new Nvidia GPU systems to its ThinkSystem servers and announced new computer workstations pre-installed with Nvidia chips.
- China hits out at US ambassador Nicholas Burns for making negative comments ‘on multiple occasions’ — Foreign ministry in Beijing says recent criticisms ‘do not serve the sound and steady growth of China-US relations’.
- Starship rival: Chinese scientists build prototype engine for nuclear-powered spaceship to Mars — Prototype of 1.5 megawatt-class shrinkable fission reactor passes initial ground tests as global race for space intensifies.
- Huawei injects fresh capital into Shenzhen investment subsidiary as US-sanctioned tech giant returns to growth — The capital infusion could be a harbinger for Huawei’s increased pace of new investments this year, as the Chinese tech giant’s sales rose in 2023.
Nikkei Asia
- Nvidia unveils Blackwell GPU for AI as successor to Hopper chip — Nvidia has unveiled its latest graphics processing unit for artificial intelligence computing as the U.S. company looks to further cement its grip on the global market for AI chips.
- Nvidia deepens BYD ties as it taps China EV makers’ demand for AI — BYD, the world’s top EV maker, will use the latest generation of Drive Thor, Nvidia’s next-generation in-vehicle computing chip platform designed for AI and autonomous driving applications.
- Opinion: Global South is moving toward the center of Chinese foreign policy — Beijing’s priorities for 2024 reflect goal of standing up to U.S. pressure. By Yu Jie.
Bloomberg
- China Releases Action Plan To Attract Foreign Investment — China’s State Council released an action plan to further open up the Chinese market to foreign firms after overseas investment fell to record lows last year.
- Xi Touts Industry Policy in Visit to Battery Materials Firm — President Xi Jinping visited a battery materials company in the southern Chinese city of Changsha as he seeks to promote advanced technology sectors as new pillars of the world’s second-largest economy.
- Longi Layoffs Speed Move in Solar Production Away From China — The cuts mark a reversal after years of rapid expansion by Longi and other Chinese firms that made the country the center of global solar manufacturing.
- Startup Offers EV Firms Greener Graphite in Alternative to China — An alternative energy startup in Malaysia is ready to help electric-vehicle makers source a key ingredient outside of China — using agriculture waste to create graphite.
- Opinion: Ships, Not Chips, Could Offer China an Edge — The US should be pragmatic when it comes to rebuilding its maritime capacity, and look to friendly nations like Korea and Japan for help. By Tim Culpan.
Reuters
- Exclusive: Putin to visit China in May — Putin told reporters on Sunday that Russia and China shared a similar global outlook and enjoyed resilient relations in part due to his good personal relations with Xi.
- Many hospitals in China stop newborn delivery services as birth rate drops — The closures come as Chinese policymakers grapple with how to boost young couples’ desire to have children.
- China lags in efforts to achieve 2025 green steel goals, analysts say — The global steel industry is responsible for around 8% of the world’s carbon dioxide (CO2) emissions, and more than half of all production takes place in China.
Other Publications
- Foreign Policy: China Is Selectively Bending History to Suit Its Territorial Ambitions — Beijing’s unwillingness to let go of certain claims suggests there’s more at stake than reversing past losses.
- POLITICO: Trump’s ‘bloodbath’ tirade contained a warning on Chinese cars. Here are the facts — Cheap electric vehicles from China aren’t for sale in the U.S., but Trump isn’t the only one worried about them.
- The Washington Post: Flood of Chinese imports could renew trade tensions, threaten U.S. jobs — Falling prices should help fight inflation, but manufacturing jobs championed by Biden administration could be at risk.
- AP: Detention of 3 teens over the gruesome killing of a 13-year-old classmate sparks a debate in China — The case will be a test of a change in the law in 2021 that lowered the age at which children could be charged with a crime from 14 to 12 years old.
- The Economist: How China, Russia and Iran are forging closer ties — Assessing the economic threat posed by the anti-Western axis.
- The Information: TikTok Spent Years Developing Data Security Plan: Washington Ignored It — In the past couple of years, TikTok has spent $1.5 billion and restructured operations to appease a federal government committee reviewing national security risks. The flaw in that strategy is now apparent.
- The Guardian: In the busy waters between China and Taiwan, the de facto border is being tested — Kinmen-Xiamen is one area where official cooperation has actually managed to continue, but a fatal maritime incident last month has threatened to derail it.
- The Diplomat: The ‘Lost Decade’ of the US Pivot to Asia — Had the United States pivoted to Asia as intended, it would be better able to deter war with China today.
