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 Stock Market Fever Breaks as Authorities Disappoint — Expectations for a flood of stimulus had run high before a Tuesday morning press conference by Beijing’s economic planner.
- Mexico Wants to Curb Chinese Imports With Help From U.S. Companies — Government seeks to strengthen domestic supply chains amid rising trade tension between Washington and Beijing.
- China’s Ghost Cities Are a Problem for Europe’s Luxury Brands, Too — Chinese consumers watching the value of their homes fall are losing the confidence to spend on designer goods.
- Decision Time for GM in China: Stay, Scale Back or Go — Country’s sharp shift to EVs and stronger local competition have deflated key profit engine for the U.S. automaker.
- European Beverage Stocks Fall After China Imposes Brandy Tariffs — Remy Cointreau fell as much as 7.7%, while Pernod Ricard was down about 3%. LVMH dropped more than 4%.
The Financial Times
- China targets EU brandy imports with anti-dumping penalties — Trade retaliation comes after bloc voted to approve steep tariff increases on Chinese electric cars.
- Chinese stock rally cools after Beijing holds off on fiscal stimulus — Investor disappointment with lack of detailed plans limits gains in CSI 300 and triggers sharp sell-off in Hong Kong.
- India bails out Maldives after president softens tilt towards China — $760mn currency swap lines cement New Delhi ties despite efforts to tilt archipelago towards Beijing.
- A divided EU presents China with easy targets — Member states are failing to show Beijing a united front over electric vehicles
- Goldman raises China stocks forecast after Beijing’s stimulus pledge — Investment bank says equity valuations remain low as market prepares to reopen following buying frenzy
- Casinos are winning big on Chinese stimulus — Whale-spotting in Macau.
- Fade the Chinese market euphoria? — Investors need to see (much) more for this to be sustained.
- Opinion: The old US economic policy is dying and the new cannot be born — Industrial rivalry and tensions with China frame a confused debate about the pressures of globalisation. By Adam Tooze
The New York Times
- So, Are You Pregnant Yet? China’s In-Your-Face Push for More Babies. — The government is again trying to insert itself into women’s childbearing decisions, knocking on doors and making calls with questions some find downright invasive.
- China’s Policy Reversal Sparks ‘Mind Boggling’ Stock Rally — The government has fired up investors by encouraging banks to lend more to buyers of stocks and real estate, but officials refrained on Tuesday from promising more stimulus.
- Russia, China and Iran Intend to Stoke False Election Claims, Officials Warn — Intelligence officials said that foreign adversaries were planning to take advantage of another close U.S. election to undermine trust in the country’s democratic process.
- Growing Cannabis and Opium Poppies May Be Key to U.S. Supply Chains — After supply chain disruptions that made critical medicines scarce, a federal effort is underway to ensure domestic stocks of pharmaceutical ingredients.
- China to Penalize European Brandy Imports, Striking Back at Car Tariffs — Beijing’s action came days after European nations moved toward tariffs on electric vehicles from China, and it included a threat to also hit pork and car imports.
Caixin
- EU’s Approval of EV Tariffs Condemned by Beijing, Chinese and German Carmakers — The tariffs on Chinese electric vehicles have been met with criticism from Beijing and the boardrooms of both Chinese and German carmakers.
- Former Justice Minister Expelled From Party for Alleged Corruption — China’s former Justice Minister Tang Yijun has been expelled from the Communist Party and is facing criminal charges for alleged corruption.
- U.K. Court Accepts Chinese Investor’s Lawsuit Linked to Nearly $4 Billion in Laundered Bitcoin — The court’s decision to hear the case marks the beginning of what is expected to be a long cross-border legal slog after a Chinese company orchestrated a multibillion-dollar fraud that has left around $3.9 billion in Bitcoin out of reach of the scam’s victims in China.
South China Morning Post
- China ‘golden week’ saw spending regain its shine, buoyed by confidence boost — Chinese travellers and tourists spent 700.82 billion yuan during the just-ended holiday week – a 7.9 percent increase from the same period in pre-pandemic 2019.
- Huge potential for jobs in China after stimulus measures, national planners say — Officials pledge to address ‘structural issues’ in job market and ease operational pain for SMEs, following major stimulus from Beijing.
- China’s small but beautiful ‘little giants’ charged with punching above their weight — What types of private enterprises does Beijing strive to support? Little giants and industrial champions.
Nikkei Asia
- China’s latest policy support stops short of long-awaited stimulus splash — Announcement disappoints market counting on trillions of yuan in economic fuel.
- China stocks climb but doubts grow, Hong Kong sinks as much as 10% — Stimulus disappointment restrains mainland’s CSI 300; some investors eye exit.
Bloomberg
- The Great Divide Over China Investing Deepens Post Stimulus — Long-term investors and foreign companies wary about piling in as weak economy, geopolitical tensions, and US election raise risks.
- World Bank Warns China’s Slowdown May Deepen, Pressure East Asia — Deeper slowdown seen ahead for China despite stimulus boost.
- What Really Happens on the Ground When the US Slaps Tariffs on China — Towns in Alabama and Virginia show the surprising consequences of trying to protect American jobs.
Reuters
- Waning China euphoria dents Europe and hammers Hong Kong — European shares dipped and Hong Kong equities tumbled on Tuesday as a lack of details on China’s long-awaited fiscal stimulus caused a rally in Chinese shares to fizzle.
- China confident on growth goal, markets await more stimulus — China said on Tuesday it was “fully confident” of achieving its full-year growth target but refrained from introducing stronger fiscal steps.
- China is oversupplying lithium to eliminate rivals, US official says — Chinese lithium producers are flooding the global market with the critical metal and causing a “predatory” price drop as they seek to eliminate competing projects, a senior U.S. official said.
Other Publications
- Associated Press: Former Taiwan leader Tsai to visit Czech Republic, other European destinations, drawing China’s ire — During Tsai’s two terms, she came under relentless attack from China for her refusal to concede to Beijing’s demands that Taipei recognize China’s sovereignty over it.
- Foreign Policy: The Beijing-Moscow Axis Is Much Stronger This Time Around — The Sino-Russian partnership is much tighter than the Sino-Soviet one, with no reason for a split any time soon.
