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-Based Auditors Pose Risks for U.S. Companies, Study Shows — The probability that accounting problems will occur increases as Chinese firms perform a larger share of an audit, say three professors.
- China Evergrande’s International Bondholders Threaten Legal Action Against Developer — Property company allegedly withheld crucial information about its liabilities and failed to engage with offshore creditors, bondholders’ advisers say.
- China Cuts Benchmark Rates to Bolster Flagging Economy — Move follows raft of economic data released by China that showed slowing growth in final months of 2021.
- Chinese Stocks Rally in Hong Kong After Beijing Cuts Key Rates — Shares of developers gain after central bank lowers mortgage-lending benchmark.
The Financial Times
- China needs a new growth model, but that requires serious reform — The government must clearly define its role in the economy and financial markets.
- Evergrande offshore bondholders warn of legal action over lack of engagement — Investors complain of ‘opaque decision-making’ at heavily indebted Chinese property group.
- China cuts mortgage lending rate for first time in two years — Beijing introduces measure amid property sector liquidity crisis and consumption slowdown.
- Singapore’s largest ETFs to be excluded from China connect scheme — Focus will initially be on equities ETFs, rather than the popular Asia high yield and Reit products.
- Kazakhstan crisis challenges Beijing’s reticence to interfere abroad — China’s growing influence in the world is making it more difficult to simply step aside.
- Luckin Coffee plots relisting in US two years after $300m fraud — Chinese chain’s return to market could come as soon as the end of this year.
The New York Times
- Lockdown Made Their Second Date Last Weeks. Would Romance Bloom? — Sparks didn’t fly on their first blind date. Then the city shut down while she was visiting.
Caixin
- Huawei Investment Arm Registers as Private Fund Manager — The move highlights the telecommunications equipment giant’s ambition to expand its footprint in the advanced manufacturing investment sector.
- China Carbon Tax Needed to Mitigate Impact of EU’s Carbon Border Levies, Experts Say — Export cost can be cut if Chinese exporters can show they’ve paid their dues at home.
- Internet Watchdog Casts Doubt on Document Apparently Outlining Tough New Rules for Tech Investment — Document spread online said the planned new rules would require some companies to get approval for new investment.
South China Morning Post
- China plans expansion of high-speed railway equal to combined length of next 5 largest countries by network size by 2025 — China will extend its high-speed rail network nearly 32 per cent by 2025, roughly equal to the combined length of the next five largest countries by network size, amid an emerging consensus that Beijing is again leaning on infrastructure investment to curb an economic slowdown.
- U.S.’ Xinjiang law puts Chinese businesses in crosshairs, forcing them to take sides in political maelstrom — Ever since US President Joe Biden signed the Uygur Forced Labour Prevention Act into law last month, the apparel industry in China’s manufacturing hub of Guangdong province has been engulfed in a haze of uncertainty and, for some, panic.
- China’s internet watchdog says it has not issued a policy requiring vetting of investment deals at Big Tech firms — China’s powerful internet watchdog has denied it has issued guidelines for vetting major investment deals by the country’s largest internet firms, after a screenshot of discussions about such a policy was shared on social media.
Bloomberg
- Biden Says ‘Uncertain’ Whether China Tariffs Will Be Lifted — President Joe Biden said that he’s not ready to lift tariffs his predecessor imposed on Chinese imports, despite calls from U.S. businesses to relieve the duties.
- Chinese Lithium Giant Said to Pick Banks for Hong Kong Listing — Tianqi Lithium Corp., a Chinese supplier of the key material used in batteries, has selected banks for a share offering in Hong Kong that could take place as soon as mid-2022, according to people familiar with the matter.
- China Widens Testing Blitz After Mail Suspected for Covid — China is ramping up its coronavirus testing regime after linking at least two omicron cases at opposite ends of the country to international parcels.
- China Crackdown Leads to HK Journalist Layoffs After Apple Daily, Stand Close — Security probe stigma left some struggling to find jobs, while others changed profession, emigrated or embraced “lying flat.”
Reuters
- Biden says ‘not there yet’ on possible easing of tariffs on Chinese goods — China has fallen far short of its pledge under the two-year Phase 1 trade agreement to buy $200 billion in additional U.S. goods and services during 2020 and 2021, and it remains unclear how the shortfall will be addressed.
- Beijing migrant worker’s search for son sparks outrage, sympathy — The story of a migrant worker in Beijing who caught COVID-19 while searching for his missing son provoked shock and sympathy on social media on Thursday, drawing attention to the hardships faced by the floating population in China’s big cities.
- TikTok owner ByteDance’s revenue growth slowed to 70% in 2021 – sources — TikTok owner ByteDance saw its total revenue grow by 70% year-on-year to around $58 billion in 2021, according to two people familiar with the matter, slower growth than a year earlier as China tightens its regulation of big tech companies.
Other Publications
- The Economist: Can China create a world-beating AI industry? — Don’t hold your breath.
- Nikkei Asia: Analysis: From leader to students, overconfidence clouds China — Reckless policies hurt economy and delay Xi Jinping’s goal to overtake U.S.
- The Washington Post: ‘China will be China:’ Why journalists are taking burner phones to the Beijing Olympics — Journalists covering the Winter Olympics next month say they’ll do their work in Beijing on brand-new cellphones and laptops. When the games are over, they’ll simply leave them behind or throw them away.
- The Washington Post: Hong Kong hamster massacre: Residents resist ‘zero covid’ city’s pet project — An underground operation is emerging to save abandoned hamsters, with foster carers taking them in and concealing them. Pet owners are in uproar at the government’s plan to kill the hamsters, which experts say is rooted in knee-jerk panic rather than science.
- CSIS: Will America Squander Its New Sputnik Moment? — America faces a new Sputnik moment: It is being outdone in strategy, technology, and manufacturing by another authoritarian superpower—China. This time, though, it is not clear if the current setbacks will galvanize the United States into strategic action, or if Washington will cede superiority to Beijing.
