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
- U.S. and China Reach Agreement on Chinese Company Audits — Deal could prevent many Chinese companies from being booted off U.S. stock exchanges.
- U.S. and China Put Their Market Divorce on Hold — Both countries are close to a deal that would allow U.S. regulators to inspect U.S.-listed Chinese companies’ audit papers in Hong Kong.
- China’s Scorching Heat and Hydropower Missteps Test Nation’s Power Grid — Documents reveal how officials’ underestimating heat wave led to ‘lights out’ on Shanghai’s Bund.
- China’s New Economic Efforts Fall Short, Economists Say — Stimulus package of $146 billion expected to do little to offset impact from property slump, Covid-19 measures and drought.
- Taiwan Proposes Big Jump in Military Spending Amid Chinese Pressure — Increase of nearly 13% to $13.7 billion would be largest since at least 2007.
- Maersk Drops Sale of Container-Making Unit on Antitrust Issues — Danish shipping giant and China International Marine Containers (Group) Co. cite ‘significant regulatory challenges’ following Justice Department investigation.
- Battery Metals Mining Has a Resource Nationalism Problem — Inflation, competition with China for resources will hand further leverage to metal-rich low-income countries.
The Financial Times
- US and China reach landmark audit inspection deal — Agreement gives US regulators access to Chinese accounts in effort to keep listings on NY exchanges.
- Loss of Chinese tourists forces Europe’s luxury retailers to rethink — Beijing’s Covid travel restrictions mean upscale fashion stores must now adapt to attract pickier locals.
- China’s unseen war for strategic influence — Beijing puts huge resources into influence campaigns to further its foreign policy goals.
- US has ‘no good options’ on Taiwan as China resets status quo — Washington says it will not weaken support for Taipei but Beijing has created a new normal.
- CIMC abandons $1bn deal for Maersk’s refrigerated container arm — US Department of Justice planned to sue to block move over antitrust concerns as it cracks down on Chinese deals.
The New York Times
- U.S. and China Announce Deal to Share Audits of U.S.-listed Chinese Firms — The agreement could prevent Chinese companies from having to depart U.S. stock exchanges, but U.S. officials remain wary of whether China will fulfill its terms.
- The Dugong ‘Sea Cow’ Has Vanished from China’s Waters, Study Says — The study said the dugong, a vegetarian mammal that ranges across Asia and Africa, has essentially vanished from the country’s coastline.
- China’s Record Drought is Drying Rivers and Feeding Its Coal Habit — Dry weather in southwestern China has crippled huge hydroelectric dams, forcing cities to impose rolling blackouts and driving up the country’s use of coal.
- U.N. Report on Xinjiang Human Rights May Be Delayed Again — The high commissioner for human rights has repeatedly postponed its release, reinforcing perceptions that U.N. leadership is reluctant to stand up to China.
Caixin
- What Might Bring Down Shandong Hi-Speed’s Former Chief? — While graft busters haven’t explained the probe of Sun Liang, some clues may lie in the cases of Taiping Insurance and Evergrande executives, Caixin learned.
- China Outlines Internal Control Rules for Wealth Management Companies — Participants in the $4.23 trillion industry must set up comprehensive internal management systems and are barred from directly buying domestic and foreign stocks, CBIRC orders.
- GAC Motor to Invest $1.6 Billion in EV Battery-Making — State carmaking giant plans to set up a lithium-battery subsidiary and start building its first manufacturing plant this year.
South China Morning Post
- China is agreeable to release redacted data for inspection in Hong Kong to resolve US auditing tiff and stave off mass expulsion from New York, sources say — The tentative concessions, still under intense debate, are among China’s latest overtures to relieve some of the tensions that have routed Chinese stocks listed in mainland China, the US and in Hong Kong.
- China’s Party Congress reshuffle under way with central bank deputy Chen Yulu appointed Nankai University president — People’s Bank of China deputy governor Chen Yulu has been appointed as the president of Nankai University ahead of the 20th Party Congress later this year.
- US tariffs on China goods are yesterday’s problem for exporters – it made some even stronger – but now they face a bigger threat — As Biden maintains Trump-era tariffs on Chinese goods, experts in affected industries say the punitive taxes no longer matters like they did, calling them ‘entirely political, not economic’.
Nikkei Asia
- China greenlights $70bn-plus in infrastructure bonds to lift economy — Xi turns focus to spurring growth with eye on third term as Communist Party chief.
- China reins in online backlash against U.S. over Pelosi’s Taiwan trip — Authorities take aim at extreme nationalism as Xi prepares for third term.
- Shipping container suppliers ditch $987m deal after U.S. probe — Proposed Chinese buyout of AP Moeller also drew scrutiny from German watchdog.
- U.S. chip giant Synopsys expands in Vietnam amid China tech war — Design software company to train engineers as U.S. expands export ban.
Bloomberg
- How China Will Spend $1 Trillion on Infrastructure to Boost Economy — To help boost the economy, Beijing is targeting investments in new energy projects, high-speed rail and water tunnels.
- US Suspends 26 Flights by Chinese Airlines in Escalating Dispute — The US Department of Transportation is suspending 26 flights by Chinese airlines next month in a dispute over Beijing’s strict policies when travelers test positive for Covid-19.
- Chinese Copper Giant Maike Seeks Help With Liquidity Issues — One of China’s most influential commodities traders is seeking government aid to shore up its finances, in the latest sign of how a sagging economy is squeezing the country’s private sector.
- Chinese Expats Looking for Safety, Luxury Apartments Turn to Ehomie WeChat App — Facing a decline in potential customers because of fewer student visas, the online brokerage is also branching out with concierge and co-living services.
Reuters
- Analysis: China’s navy begins to erase imaginary Taiwan Strait median line — China has never officially recognised the line that a U.S. general devised in 1954 at the height of Cold War hostility between Communist China and U.S.-backed Taiwan although the People’s Liberation Army largely respected it.
- Exclusive: Chinese defence firm has taken over lifting Venezuelan oil for debt offset – sources — Since November 2020 China Aerospace Science and Industry Corp (CASIC) has been carrying Venezuelan crude on three tankers it acquired that year from PetroChina
- Explainer: The power crunch in China’s Sichuan and why it matters — Sichuan’s accounts for 30% of China’s total hydroelectric generation and it normally delivers a massive power surplus to the rest of the country.
Other Publications
- The Economist: China’s Communist Party says it welcomes complaints — Just don’t go too far.
- The Economist: Most flights into and out of China remain grounded — While the rest of world is flying again
- Politico: The iceman cometh: Biden creates an Arctic ambassador — As climate change warms the Arctic — and Russia and China advance their claims — the region has become embroiled in geopolitics.
- CSIS: Commentary: Why the New Climate Bill Is Also about Competition with China — China has long been perceived as the largest commercial beneficiary of the clean energy transition thanks to its centrality in clean energy technology supply chains. By Ilaria Mazzocco
