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 AI Engineers Are Secretly Accessing Banned Nvidia Chips — Brokers are making overseas computing power available and offering a high degree of anonymity.
- IBM Shuts China R&D Operations in Latest Retreat by U.S. Companies — Jobs to be added in India, employees are told.
- China’s Central Bank Keeps Key Policy Steady as Expected — Authorities are downplaying the role of MLF and its rate and elevating the importance of the seven-day reverse repos rate.
- In Beijing’s Quest for Control of the South China Sea, a New Flashpoint Emerges — China is showing a growing willingness to escalate in the David-and-Goliath fight with the Philippines over the vital trade route.
- XPeng Stock Jumps After Chief Executive Boosts Shareholding — Shares were trading up 5.9% at HK$28.75 early on Monday in Hong Kong.
- The West’s Next Challenge Is the Rising Axis of Autocracies — U.S. and its allies consider whether to confront all rivals at once, or seek accommodation with some.
The Financial Times
- The inside story of the secret backchannel between the US and China — Top officials Jake Sullivan and Wang Yi met quietly to stabilise relations in ‘cloak and dagger’ summits around the world.
- IBM slashes China research team as it shifts work to other regions — US tech group faces tougher competition as Beijing favours homegrown rivals amid tensions with Washington.
- Big Tech in China doubles AI spending despite US restrictions — Alibaba reports artificial intelligence servers running at full capacity, while ByteDance buys limited-power Nvidia chips in bulk.
- What Shein’s supply chain says about the future of Chinese manufacturing — Factory workers are deserting the garment industry as the population ages.
- Top private equity firms put brakes on China dealmaking — Activity dries up amid Beijing’s listings crackdown and planned US investment curbs.
- China mutual funds reel from crackdown — The $4.4tn industry has become latest target of Xi Jinping’s clampdown on finance.
- Starmer tells Xi he wants closer UK-China relations — Britain has been alarmed by Beijing’s curbing of civil freedoms in Hong Kong and its neutral stance over Ukraine conflict.
The New York Times
- Hong Kong Defends Sex Ed Advice That Includes Playing Badminton — Top officials in the Chinese territory have defended new sex education guidance that critics call regressive. Young people are amused.
- Nippon Steel’s $15 Billion U.S. Steel Takeover Bid Is in Peril — The proposed merger of Japanese and American industrial giants, which proponents say would benefit both countries, is ensnared by political and labor opposition.
- Is Taiwan Ready for War With China? A Show Has People Asking. — Some think the drama, “Zero Day,” helps Taiwan confront an increasingly plausible scenario. Others say the show is alarmist and a tool of the government.
- Jake Sullivan, Biden’s National Security Adviser, Will Visit China Next Week — A final meeting between President Biden and China’s leader, Xi Jinping, is also likely to come up.
Caixin
- Cover Story: Chinese Brokerages’ Dual Roles in Bond Market Sparks Concern for Conflicts of Interest That Raises Systemic Risk — China’s securities brokerages are thriving in the bond market, but a surge in the fixed-income sector has sparked concerns over regulatory loopholes and conflicts of interest.
- China Extradites ‘Godfather’ of Asian Pyramid Schemes From Thailand — China extradited a man touted as “Asia’s godfather of pyramid schemes,” who allegedly swindled $14 billion from unsuspecting victims, from Thailand this week, marking the first economic crime suspect to be transferred since a bilateral extradition treaty between the two nations came into effect in 1999.
- Two Children Among Five Chinese Nationals Killed in Thai Plane Crash — Five Chinese nationals were among nine people killed when a small passenger plane crashed in Thailand this week, state-run Xinhua News Agency reported Saturday, quoting the Chinese Embassy in Thailand.
South China Morning Post
- US scientist convicted for China ties considering jobs in Hong Kong, mainland — Ex-Harvard professor Charles Lieber, targeted under now-axed China Initiative, says he is exploring opportunities at ‘several institutions.’
- What’s the buzz with China’s low-altitude economy, and what is propelling its development? — From drone deliveries and surveillance to flying cars and tourism, technology for manned and unmanned aviation applications is being rapidly embraced across China.
- Hilton to maintain breakneck China expansion pace, targets 100 new hotels per year — The operator, which expanded 367 per cent since late 2018, says it will focus on niche brands to cater to individual needs and preferences.
Nikkei Asia
- Chinese surveillance plane breaches Japanese airspace for first time — Japan’s defense ministry says fighters were scrambled to warn off Y-9.
- Taiwan’s $8.9bn plan for more submarines meets political resistance — Opposition criticism highlights risks to new government’s first budget.
- China has turned to South America since banning Japan seafood a year ago — Beijing adopted policy in response to release of wastewater from Fukushima plant.
Bloomberg
- Din Tai Fung to Close China Outlets Amid Weak Consumer Spending — Taiwanese dumpling chain Din Tai Fung will close more than a dozen stores in mainland China, a market that’s seen a brutal price war among restaurants to lure increasingly frugal Chinese consumers.
- China’s Budget Spending Shrinks as Land Sales Suffer Record Fall — China’s broad budget expenditure contracted and income from land sales for local governments fell at a record pace, a sign of fiscal weakness that may further increase calls on Beijing to add stimulus to support the $17 trillion economy.
- China’s ‘Wukong’ Hit Sells 10 Million Copies in Three Days — Black Myth: Wukong, a Chinese-made video game backed by Tencent Holdings Ltd., took just 83 hours to sell 10 million copies, one of the fastest debuts in industry history.
- China EV Maker’s Tepid Reply to EU Proves Costly in Tariff Spat — SAIC Motor Corp.’s harsh treatment by European Union negotiators is becoming a cautionary tale of Chinese companies being ill-equipped to operate in Western business and political domains.
Reuters
- US industry seeks easing of steep Biden-Harris China tariff hikes — The Biden-Harris administration this week is expected to announce final implementation plans for steep tariff increases on certain Chinese imports, and if U.S. industry gets its way, many of the planned duties would be softened.
- Exclusive: China’s Didi in talks to sell smart auto assets to state-backed NavInfo’s unit, say sources — China’s Didi Global is in advanced talks to sell its smart driving and cockpit assets to state-backed digital mapping firm NavInfo’s, opens new tab unit, as the ride-hailer focuses on its core business after a bruising regulatory crackdown, three sources said.
- China robots conference spotlights the changing face of humanoids — As China seeks to race ahead in humanoid robot development, its supply chains showcased cheaper and innovative parts at the world robot conference in Beijing, but some executives warn the industry has yet to improve product reliability.
Other Publications
- Associated Press: China opposes US sanctions on firms over alleged ties to Russia’s war efforts — China on Sunday expressed its opposition to the latest U.S. sanctions on Chinese companies over their alleged ties to Russia’s war in Ukraine, saying it will adopt necessary measures to safeguard the rights and interests of the country’s businesses.
- Foreign Policy: Xi Prefers Fleet Power to Street Protest — Nationalist protesters are no longer a staple of Chinese crisis diplomacy.
- The Guardian: ‘As long as we’re here, it’s ours’: the island fishing community on the frontline of South China Sea tensions — Intensifying struggles with China are playing out on the doorstep of the almost 400 Philippine civilians on remote Thitu Island.
- Toronto Star: Trudeau government to match U.S. tariffs on Chinese EVs: sources — Canada’s tariffs on Chinese EVs will match the U.S. level, which quadrupled in May, at 100 percent, the Star has learned.
- MIT Technology Review: Inside the long quest to advance Chinese writing technology — Two books on Chinese writing illustrate how tumultuous technological evolution can be.
- BBC News: Blockbuster Chinese video game tried to police players – and divided the internet — An anthropomorphic monkey and a campaign against “feminist propaganda” set the video gaming community alight this week, following the release of the most successful Chinese title of all time.