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 Aids Russia’s War in Ukraine, Trade Data Shows — Despite sanctions, Moscow equips its jet fighters, submarines and soldiers with help of Chinese companies.
- U.S. Weighs Sanctions for Chinese Companies Over Iran Surveillance Buildup — Beijing’s exports of video recorders to Iran more than doubled in 2022 as protests swept the country.
- Farmland Becomes Flashpoint in U.S.-China Relations — Security concerns prompt North Dakota city to turn against plans for a Chinese-owned corn mill.
- Now That Zero-Covid Is Over, China Needs to Show Investors the Money — Chinese shares have rallied, but to keep heading skyward, firms need to demonstrate real earnings growth.
- Essay: Challenging the U.S. Is a Historic Mistake — Like Nazi Germany and Imperial Japan, today’s China is a rising power determined to dominate its region and convinced that American strength is waning. It runs the risk of experiencing a similar fate if it attacks Taiwan. By Robert Kagan
Balloon
- China Confirms Second Balloon Over Latin America — Beijing filed a formal complaint with the U.S. Embassy over military takedown of previous balloon, calling it an overreaction.
- Prior Chinese Balloon Incursions Over U.S. Went Undetected, Officials Say — They say prior intrusions by surveillance craft into the continental U.S. were likely of short duration.
- U.S. Shoots Down Suspected Chinese Spy Balloon, Recovery Under Way — China’s Foreign Ministry protests, saying U.S. overreacted and violated international norms.
- Pentagon Used Its Highest-End Fighter, Reliable Missile to Down Chinese Balloon — To avoid casualties on the ground, the Pentagon had to shoot high-altitude inflatable near the U.S. coast.
- Following U.S. Downing of Suspected Spy Balloon, Beijing Signals Desire to Move On — Chinese defense ministry calls U.S. decision an ‘obvious overreaction’.
- U.S.-China Tension Grows as Suspected Spy Balloon Leads to Postponed Visit — Antony Blinken’s trip is delayed indefinitely, and both sides weigh how much further to escalate the incident.
The Financial Times
- Hong Kong pro-democracy activists go on trial in landmark national security case — Delayed proceedings against 47 defendants could extinguish city’s opposition.
- Investors snap up Wanda bonds in bet on China property revival — Books full for second dollar debt sale in less than a month.
- Disney cuts ‘Simpsons’ episode with China labour camp reference in Hong Kong — Missing programme on streaming platform mentions ‘camps where children make smartphones’.
Balloon
- How much of a threat are Chinese spy balloons? — Diplomatic fallout from incursion over the US appears to be far greater than any military benefit for Beijing.
- China steps up condemnation of balloon shooting by US — Formal protest lodged at embassy in Beijing accuses Washington of ‘indiscriminate use of military force’.
- China’s military keeps rivals on edge with balloon strategy — Data gathered by swelling ‘lighter than air’ programme could have defence applications.
- China sharply rebukes US over decision to shoot down ‘spy’ balloon — Navy begins recovery operation on wreckage of craft that drifted over country for a week.
- How the spy balloon popped a US-China rapprochement — Relations between Washington and Beijing remain trapped in a downward spiral.
- Violent end to spy balloon flight dashes chance of US-China reset — Uncertainty in Washington over whether Xi Jinping was aware of surveillance mission.
- Blinken cancels China trip following discovery of spy balloon — US secretary of state calls it ‘irresponsible act’ as Beijing denies espionage claims and insists it is ‘civilian airship’.
The New York Times
- In Hong Kong, 47 Democracy Leaders on Trial for Security Charges — Forty-seven defendants, including well-known figures like Joshua Wong, are charged with subversion under the national security law that China imposed in 2020.
- The 47 Pro-Democracy Figures in Hong Kong’s Largest National Security Trial — They are the politicians, academics and activists now facing prison sentences.
- What to Know About the ‘Hong Kong 47’ Trial and the National Security Law — Beijing used a national security law to quash dissent. Now another warning is being sent, with the mass trial of what was once Hong Kong’s political opposition.
- Flowers, Fresh Fish and Movies: China Is Spending Again, Cautiously — The outlook for the world’s second largest economy is brighter as consumer spending picked up after “zero Covid” was lifted. But scars remain from the harsh pandemic restrictions.
- In China’s Covid Fog, Deaths of Scholars Offer a Clue — The toll of China’s epidemic is unclear. But dozens of obituaries of the country’s top academics show an enormous loss in just a few weeks.
Balloon
- China’s Balloon Dispute Aims Attention at Xi’s Leadership — The flap with the United States raises concerns about how China wields its power in a climate where one wrong move could set off an accidental conflict.
- Balloon Incident Reveals More Than Spying as Competition With China Intensifies — There is nothing new about superpowers spying on one another, even from balloons. But for pure gall, there was something different this time.
- U.S. Navy Divers Work to Recover Debris From Chinese Spy Balloon as Diplomacy Dwindles — The effort off the coast of South Carolina is expected to take days, and Navy and Coast Guard ships have been sent to the scene. U.S. officials are watching for retaliation from China.
- China Finds Itself With Limited Options After U.S. Shoots Down Balloon — Beijing registered “strong discontent and protest.” But there may be little it can do to retaliate.
Caixin
- Cover Story: China’s Economy Appears Headed for Uneven Rebound — China’s economy appears to be on track for a faster-than-expected recovery, but it may not be felt evenly across the country.
- U.S. Hedge Fund Giant Citadel Tries to Tap Into China — An Asian subsidiary of U.S. billionaire Ken Griffin’s hedge fund titan Citadel LLC is seeking to tap into the Chinese mainland.
- China Pushes Ahead With Restructuring of Tomorrow Holding-Linked Insurers — The restructuring and risk disposal work of four insurance companies linked to Tomorrow Holding Co. Ltd. is proceeding orderly, according to China’s top insurance regulator.
- Mortgage Rate Cuts Spread to China’s Wealthier Regions — A number of provincial capitals and other major Chinese cities have temporarily cut mortgage rates for first-time homebuyers as part of broader efforts to revive a real estate market.
South China Morning Post
- Taiwan tells start-ups to shun mainland China and go to Japan instead, amid supply-chain decoupling — The head of a Taiwanese government-backed group says that diversifying supply chains, with an eye on Japan, is being encouraged as ‘one of the new government policies’.
- Why Chinese AI and semiconductors could fall decades behind under US chip ban ‘blitz’ — Washington’s latest move to restrict access to chip-making equipment dims Beijing’s hopes of buying from non-US suppliers such as the Netherlands.
- Top Hong Kong court says in landmark ruling government breached rights of 2 transgender men by preventing them from amending ID cards — Case brought by Henry Edward Tse and ‘Q’ in 2019 against the Registrar of Marriages after official refused to review gender status on identity cards.
Nikkei Asia
- EV battery material suppliers brace for gluts as competition heats up — Lithium, nickel producers expand as U.S. pushes for non-Chinese supplies.
- Australia trade minister to travel to Beijing to meet counterpart — Discussions to include ‘resumption of unimpeded trade’ with China: Farrell.
- ‘Hong Kong 47’ trial starts in city’s biggest national security case — Dozens of pro-democracy activists held for two years since subversion arrests.
Bloomberg
- Hong Kong’s Top Court Rules for Transgender Activists in ID Case — Transgender people in Hong Kong should be allowed to change their gender on their government-issued ID without undergoing sex reassignment surgery, the city’s top court ruled on Monday.
- China’s Mega Railway Project Hits Roadblock in Pakistan — Pakistan plans to speak with China to reduce the cost of its mega railways project by 40% since it can’t afford such a huge loan, according to its minister.
- China Weather Bureau Shake-Up Draws Scrutiny After Balloon Furor — China replaced its national weather chief just after the US revealed the balloon was flying over its territory, fueling speculation that the move was connected to Beijing’s claim it was a climate research vehicle.
- China Says Balloon Over Latin America Was Also Blown Off Course — China said a balloon that the Pentagon spotted over Latin America was blown off course, echoing an explanation for a vehicle seen over US military sites that the Biden administration has rejected.
Reuters
- Senior Taiwan opposition leader to visit China amid continued tensions — A senior leader of the Kuomintang (KMT), Taiwan’s main opposition party, will visit China this week and meet its top Taiwan policy-maker.
- Japan to restrict chip manufacturing machine exports to China, Kyodo reports — Japan’s government will begin restricting exports of advanced semiconductor manufacturing equipment to China in Spring after it amends a foreign exchange law to allow the change.
- Colombian military spots balloon-like object in its airspace — A day before a U.S. military jet shot down a suspected Chinese spy balloon, Colombia’s military confirmed a sighting over its territory of an airborne object similar to a balloon.
Other Publications
- Toronto Star: Canada extends and expands work permits for Hong Kongers — Post-secondary educated Hong Kong residents who completed their studies in Canada or other countries within the past 10 years — instead of five — can now qualify for open work permits in Canada.
- The Economist: China’s ultra-fast economic recovery — The country’s reopening will boost global growth, perhaps uncomfortably.
- Rest of World: What the U.S. can learn from India’s TikTok ban — A permanent split with Chinese apps was less disruptive than many expected.
- The Washington Post: Opinion: The inside story of how the U.S. shot down the Chinese balloon — The administration can claim that it waited for the most opportune moment to destroy the balloon and capture its secret payload — and that the strange affair was a net intelligence plus for the United States. By David Ignatius
