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 Is Finally Getting Serious About a Housing Rescue — Beijing has announced a plan to clear the backlog of unsold and unfinished homes, but questions remain over the scale and financing of the package.
- China Consumption and Investment Slow Unexpectedly — China’s consumption and investment slowed in April, while industrial output beat expectations as Beijing doubled down on its manufacturing drive to spur growth.
- Chinese Regulator Flags Synopsys Acquisition of Ansys — The chip software maker disclosed in a regulatory filing that China’s State Administration for Market Regulation took the position that Synopsys must have the tie-up cleared by regulators before it can go forward.
The Financial Times
- China unveils package to boost property sector — Central bank eases lending requirements and lowers downpayments to ease yearslong slowdown.
- Arup lost $25mn in Hong Kong deepfake video conference scam — UK-based engineering group identified as target of fraud that used digitally cloned CFO to trick staff.
- Xi urged to respond with caution to Biden’s trade tariffs — Beijing advisers call on China’s leader to hold ‘moral high ground’ as spat with US intensifies.
- US defence chief Lloyd Austin to meet Chinese counterpart this month — Singapore meeting would be latest step in reopening communication lines between militaries.
- Opinion: Japanese beauty needs to look beyond China — Chinese shoppers have been increasingly turning to homegrown beauty brands, with sales growing rapidly. By Lex.
The New York Times
- Putin’s China Visit Highlights Military Ties That Worry the West — The Russian leader visited an institute in Harbin known for defense research. President Xi Jinping saw him off with a rare and seemingly deliberate embrace for the cameras.
- China Says It Will Start Buying Apartments as Housing Slump Worsens — Signaling growing alarm, policymakers ramped up their efforts to stem a continued and steady decline in real estate values.
- Taiwan, on China’s Doorstep, Is Dealing With TikTok Its Own Way — The island democracy was early to ban TikTok on government phones, and the ruling party refuses to use it. But a U.S.-style ban is not under consideration.
Caixin
- First ABS Managed by Insurer-Backed Asset Managers Debuts in Shanghai — $174 million issuance will bolster interest among insurance companies and help diversify the group of ABS investors, say experts.
- Li Auto Faces Class Action Lawsuits Over Misleading Outlook for Li Mega MPV — A lukewarm response on its debut, a slowing market and EV makers slashing prices meant sales of the Li Mega MPV were disappointing.
- China’s Capital Loosens Work Permit Requirements to Attract Overseas Talent — Foreigners graduating from universities both home and abroad will no longer need to have two years of job experience to apply in Beijing.
South China Morning Post
- China outlook ‘strongly negative’ for German engineers, with poor demand and overcapacity named as culprits — German industrial engineering firms reported a negative outlook for their China business in a recent survey, with weak demand and overcapacity most frequently mentioned as the cause for their low confidence.
- China says ‘multiple espionage cases’ have been uncovered in space sector — Intelligence agency says it exposed ‘despicable acts of certain countries’ trying to infiltrate and steal secrets, without giving further details.
- Baidu’s public relations head steps down after eye-popping remarks on work culture spark controversy in China — Qu Jing’s comments endorsing an intense workplace culture sparked a public backlash in China, where people have been speaking out against damaging office practices at Big Tech firms.
- Chinese Vice-Premier He Lifeng calls on cities to buy back residential land, unsold homes to aid distressed developers — He Lifeng stressed the need to ‘carry on the battle’ to surmount the risks that unfinished and unconstructed homes represent, as the health of the property market is tied closely to social wellness and economic development.
- For China, be it Donald Trump or Joe Biden at the US helm, the barrage of ‘political’ strikes may only intensify — Analysts say Beijing is preparing ‘for all types of situations’ in a trade war with the US that shows no sign of abating after six years, as the leading presidential candidates vow to turn up the heat.
Nikkei Asia
- China’s cloud service providers are still waiting for AI to make it rain — In China, the buzz over AI models was expected to spur an increase in demand for AI computing and related services, but recent earnings did not paint the expected rosy picture.
- U.S. adds 26 Chinese cotton companies to import ban list — Companies in provinces across China, including Henan, Jiangsu, Hubei and Fujian, have been added to the forced-labor Entity List, the Department of Homeland Security said.
- Opinion: Chinese aircraft carrier’s voyage hints at plan for ‘post-U.S.’ navy — The debut of the ‘Fujian’ marks a new milestone in a military modernization effort the likes of which has not been seen anywhere since World War II. By Sam Roggeveen.
Bloomberg
- China’s Housing Crash Could Set Back Millions of Promising Careers — Professionals who thought they’d won a secure place in the rising middle class are now looking for work and scraping by.
- China International Air Traffic Builds on Back of Visa Tweaks — China’s international air passenger traffic recovered to over 80% of pre-Covid levels in April, reflecting efforts by Beijing to attract more overseas visitors to the nation’s shores.
- Opinion: What Is China’s $138 Billion Bond Bazooka Aiming At? — The impact of a rare sale of ultra-long notes will depend on who buys them and what the funding is meant for. By Shuli Ren.
Reuters
- Musk pushes plan for China data to power Tesla’s AI ambitions — Tesla’s efforts underscore the speed of the electric vehicle maker’s pivot to bet on a breakthrough in AI at a time when EV demand has slowed and its competition has deepened.
- Shanghai eases data-export curbs sought by Tesla, other firms — Under a one-year pilot project, companies registered in the city’s free-trade Lingang Area, where Tesla’s Shanghai factory is located, may transfer data on the list overseas without needing further security assessments.
- China’s factories fire up but consumer slump persists — A mixed set of data on Friday followed other indicators for April that showed a patchy recovery in the world’s second-largest economy.
- Chinese firms invest in ‘green’ jet fuel, anticipating blending rule — Once online, the projects would soak up supplies of used cooking oil (UCO) feedstock that China currently ships out as world’s largest exporter, company executives said.
Other Publications
- Foreign Policy: The U.S. Should Stop Playing the Victim Over China Trade — Washington can accept reality and shift strategies.
- The Washington Post: Opinion: Tariffs against China hamstring the transition to a clean energy future — The new tariffs against Chinese clean energy imports will slow progress against climate change and provide next to nothing in return. By the Editorial Board.
- AP: Taiwan is selling more to the US than China in major shift away from Beijing — The U.S. displaced mainland China as the top destination for Taiwan’s exports in the first quarter of the year for the first time since the start of 2016.
- The Economist: Spies, trade and tech: China’s relationship with Britain — China was once seen as a golden opportunity. It is increasingly viewed as a threat.
- The Economist: China’s youth are rebelling against long hours — The backlash over a series of viral videos says a lot about shifting attitudes.
- ChinaPower: China Is Upgrading Dual-Use Villages Along Its Disputed Indian Border — These villages, often accompanied by military and dual-use infrastructure, are an important “gray zone” tool enabling China to assert and defend its claims near disputed areas.
- Rest of World: The company making Mexico’s EV charging stations compatible with Chinese cars — Vemo is investing in charging infrastructure for BYD and other Chinese EV companies.
