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 Lopsided Economy Loses Steam — Slowdown shows drag from real estate and consumer spending as party leaders gather in Beijing to discuss economic reform.
- Trillions in Hidden Debt Drove China’s Growth. Now It Threatens Its Future. — Local governments racked up as much as $11 trillion in off-the-books debt to build industrial districts, resorts, transit systems and housing projects, including many that failed.
- U.S.-China Trade Strains Are Hitting the Mattress Market — U.S. manufacturers say Chinese sellers are dumping cheap bedding in the country, sometimes by shipping through third countries.
- Rare-Earth Prices Are in the Doldrums. China Wants to Keep Them That Way. — Overproduction keeps rare-earth prices low, challenging Western efforts to reduce their reliance on Chinese supplies.
- A Young Chinese Dissident Finds a Less Lonely Life in Exile — Growing diaspora of Chinese activists gives voice to defiance against Beijing; ‘I’ve found a fuller life.’
- Swatch Group Posts Sales Decline on Weak Demand in China — Shares of watchmaker retreat after it said its watch and jewelry businesses suffered and European retailers are being reluctant placing orders.
The Financial Times
- China’s economic growth slows in second quarter — Weaker data release comes as Communist party leadership launches economic policy meeting.
- Can Xi keep a lid on China’s mounting social strains? — The authorities are increasingly concerned about rises in unemployment, mental illness and crime linked to the economic slowdown.
- Malaysia’s king bids to revive Chinese-backed ‘dream paradise’ — Development of vast Forest City complex in Johor has languished as Country Garden’s debt problems mount.
- Chinese EV laser maker fights back against Pentagon blacklisting — Hesai says it has been forced to sue US government after allegations of military links.
- Chinese groups take centre stage in Euro 2024 advertising drive — Move underlines global pulling power of football and live sport to help companies boost sales and profits.
- China’s Transsion sued by Qualcomm and Philips as IP woes mount — Western companies press smartphone maker over alleged patent infringements.
The New York Times
- China Is Holding a Major Meeting on the Economy That You Can’t Watch — President Xi Jinping is presiding over a conclave to draft a new economic program. The stakes are high, but expectations for big changes are modest.
- China’s Economy Slows Sharply as Housing Troubles Squeeze Spending — After a strong start to the year, spending has slumped as a real estate downturn weighs on consumers. Communist Party leaders are meeting this week to discuss what to do about it.
- How China Rebuilt a Cambodian Naval Base — Before and after satellite images show how China transformed one Cambodian navy base.
Caixin
- Cover Story: China’s Once-Booming Online Healthcare Sector Sees Its Vital Signs Sink — After almost a decade marked by booms and busts, China’s internet medical service providers now face a soul-searching moment that will determine their future fortunes.
- China’s Waterborne Cooking Oil Tankers Also Shipping Chemicals, Fuel, Sources Say — China’s waterborne vessels that transport cooking oil are also used to ship chemicals and diesel fuel, a Caixin investigation has found, after revelations that tanker trucks also engaged in the practice, sparking public uproar about food safety.
- China’s GDP Grew 4.7% in Second Quarter, Missing Expectations — China’s GDP grew 4.7% year-on-year in the second quarter, official data showed Monday.
South China Morning Post
- China expands visa-free access as foreign visitor numbers begin rebound — Policy covers 144-hour visits to Henan province and several tourist hotspots in Yunnan, including Dali, Lijiang and Xishuangbanna.
- Paris Olympics will use Alibaba’s AI-powered energy-saving tool to cut venue emissions — Alibaba’s Energy Expert will analyse power usage at 35 locations to help optimise energy demand and minimise waste, according to Alibaba, as Paris Olympics organisers aim to produce the first carbon-neutral Games.
- Beijing’s retailers rebel against rent hikes, stalling any return to pre-pandemic levels — Many retailers are sensitive to the slightest hike in rents in a stalling economy, putting pressure on landlords to to cut prices, said Sun Tin, director and head of research at CBRE North China.
Nikkei Asia
- China asks WTO to set up panel for U.S. EV subsidies dispute — Beijing objects to Inflation Reduction Act’s barriers to its products.
- Ping An Insurance to raise $3.5bn in bond deal, document shows — Convertible bonds increasingly popular with Chinese companies for funding.
- China’s Zara challenger Urban Revivo ramps up global growth plans — With focus on brick-and-mortar stores, parent eyes $13bn sales goal and IPO.
Bloomberg
- China’s Economic Growth Comes in Worse Than Expected, Adding Pressure on Xi — China’s growth unexpectedly slowed to the worst pace in five quarters as faltering consumer spending undermined an export boom, putting pressure on policymakers to step up support at a twice-a-decade economic meeting this week.
- ‘Trump Wins Big’ Meme Stock Surges in China — Shares of a Chinese company whose local-language name sounds like “Trump Wins Big” soared Monday, in the latest example of growing bets on the former US president’s election victory after an assassination attempt.
- Apple’s India Sales Surge 33% to Record in Shift From China — Apple Inc.’s annual sales in India hit a record of almost $8 billion, underscoring a rapidly growing market where the iPhone maker now assembles more of its devices and operates two flagship stores.
Reuters
- Italy to offer defunct Stellantis brands to Chinese automakers, report says — Italy’s government is considering taking over by decree defunct auto brands owned by Stellantis (STLAM.MI), and offering them to Chinese companies to encourage them to set up factories in Italy, Il Sole 24 Ore daily reported on Friday.
- China new home prices fall at fastest pace in 9 years, more support needed — China’s new home prices in June fell at the fastest clip in nine years while property sales and investment slumped, increasing pressure on policymakers for more stimulus to prop up the battered sector as it struggles to find a bottom.
- Swatch sales, profits slump on weak China demand, hammering shares — Swatch Group, the world’s biggest watchmaker, reported a steep drop in first half sales and earnings on Monday as demand for luxury goods in China remained weak, but forecast business would improve significantly later in 2024.
Other Publications
- ABC News Australia: A contaminated cooking oil scandal in China has provoked outrage and raised fears over safety — The Department of Agriculture has confirmed a company alleged to have cross-contaminated cooking oil with petrol and other chemicals has been exporting to Australia.
- Associated Press: China’s Communist Party will signal its approach to the country’s challenges at a meeting this week — China’s ruling Communist Party started a four-day meeting Monday that is expected to lay out a strategy for self-sufficient economic growth in an era of heightened national security concerns and restrictions on access to American technology.
- Washington Post: Opinion: China was home for 25 years, but I can’t go back. Here’s why. — Foreigners are frequently detained in the country over a commercial dispute or debt. By Anne Stevenson-Yang
- Foreign Policy: The Winners From U.S.-China Decoupling — From Malaysia to Mexico, some countries are gearing up to benefit from economic fragmentation.
- Tom’s Hardware: Huawei officially opens its 2,600-acre R&D center in Shanghai, will accommodate over 35,000 scientists and engineers — This facility is larger than Apple Park and Microsoft’s Redmond Campus, combined.
