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 Has Become a Strain on Private-Equity Firms — Politics, valuations and exit options all look grim for funds in the country.
- Navy Sailors Charged With Allegedly Spying for China — The two men are the latest cases of U.S. defense and intelligence officials charged with working on behalf of Beijing.
- China Scraps Tariffs on Australian Barley — The Ministry of Commerce said it is no longer necessary to keep imposing antidumping and countervailing duties on barley imports from Australia.
- China’s Central Bank Pledges to Flexibly Use RRR Cuts, Other Policy Tools — The PBOC will guide banks to adjust rates on outstanding mortgages and support lenders to control the cost of liabilities.
- China Set to Impose Mobile Device Limits for Minors — New policy would limit both time and content according to age, and comes on top of already strict videogame restrictions.
- Opinion: China Can’t Seem to Make Friends or Influence People — Even as Xi has doubled down on soft power efforts, global public opinion has become more hostile. By Sadanand Dhume
The Financial Times
- Chinese deal activity in US slumps to lowest level in 17 years — Geopolitical tensions and national security issues curb enthusiasm for merger and acquisition investments
- China crams for World Bank business survey — Officials fear country may perform poorly as scandal-hit survey prepares for relaunch.
- US sailors charged with passing military secrets to China — Two members of the Navy alleged to have taken thousands of dollars in payments.
- White House urged to limit US investment in Chinese stocks and bonds — House panel chair says forthcoming rules on China must curb flows to public markets.
The New York Times
- Anger in China Over Flooding of Towns, in Part, to Save Beijing — A provincial leader set off an outcry by urging cities to serve as a “moat” for the capital, as diverted floodwaters sent scores of residents fleeing.
- 2 U.S. Navy Sailors Charged With Spying for China — Prosecutors said the two sailors in California gave Chinese intelligence officers U.S. military secrets and sensitive information.
- Why TSMC Will Keep Its Roots in Taiwan, Even as It Goes Global — In an interview, the chip maker’s chairman, Mark Liu, explained why TSMC’s top tech would stay in Taiwan, despite growing threats from China and worries from the United States.
- The Chip Titan Whose Life’s Work Is at the Center of a Tech Cold War — At 92, Morris Chang, the founder of Taiwan Semiconductor Manufacturing Company, can no longer stay in the shadows.
Caixin
- Argentina Taps China Currency Swap Line to Help Repay IMF Loan — Argentina has struck a deal with China’s central bank to settle more than half of its $2.7 billion debt due this week to the International Monetary Fund (IMF) in yuan by tapping a currency swap line, its economy minister said on Monday.
- China on Track to Install More New Battery Storage This Year Than in the Past Decade — China is projected to install 15 gigawatts (GW) to 20 GW of battery storage capacity in 2023, exceeding the total amount added in the past decade, said an expert on Wednesday at an industry forum.
- Central Bank Governor Vows More Financial Support for Private Sector — China’s top officials are making another effort to restore business confidence and bolster the economy as the newly appointed central bank governor met with private enterprises and pledged more financial support.
South China Morning Post
- China one of Apple’s best-performing markets in June quarter amid strong iPhone demand, as tech giant’s global sales remain sluggish — Apple’s Greater China region – covering the mainland, Hong Kong, Taiwan and Macau – contributed US$15.8 billion to its total net sales of US$81.8 billion in the June quarter.
- China-Australia trade: Beijing’s barley-tariff removal raises hope that Australian wine will be next — Punitive trade tariffs, in place since April 2020, will go away on Saturday after a month-long delay by China to review the contested measures, and the move reflects how ties are warming with Australia.
- ‘Irreparable mess’: China and France dissolve 19-year scientific partnership in Shanghai — Institut Pasteur of Shanghai’s name quietly changed as organisation described as ‘irreparable mess’.
Nikkei Asia
- Italy seeks off-ramp from China’s Belt and Road — Disappointing economic benefits fuel calls for withdrawing from 2019 deal.
- China deepens military ties with Russia for ‘non-Western’ front — Military diplomacy with joint exercises aims to build counterweight to U.S. camp.
- China again vows policy support for economy as slowdown bites — From food vendors to property sellers, many struggle in absence of fiscal stimulus.
Bloomberg
- China’s Pro-Growth Messaging Blitz Can Only Buoy Markets So Long — China is swarming investors with near-daily announcements of economic support, creating the impression authorities are going full steam to boost growth. But without more specifics, the question is how long the market euphoria can last.
- Xi May Give Work From Home a Break for BRICS — The pandemic is over, but Chinese President Xi Jinping still isn’t really traveling. Instead, he’s making foreign leaders come to him.
- China’s Private Sector Has ‘Promise Fatigue’, EU Chamber Says — China’s efforts to boost its beleaguered private sector are falling short of what’s needed to aid foreign business and support the struggling economy, according to the head of the European Union Chamber of Commerce in China.
- China Relaxes Business Visa Rules in Bid to Further Open Borders — China released a series of measures intended to ease movement across and within its borders, as the country’s post-Covid economic recovery stalls.
Reuters
- Toyota, Pony.ai plan to mass produce robotaxis in China — Toyota and partner Pony.ai are planning to mass produce robotaxis in China, setting up a venture this year which will build cars that employ the startup’s autonomous driving technology and ride-hailing services.
- Exclusive: China, Saudi in talks for ETF cross-listings to bolster financial ties — China and Saudi Arabia’s stock exchanges are in talks to allow exchange-traded funds (ETFs) to list on each other’s bourses, three sources familiar with the matter said, as the countries look to deepen financial ties amid warming diplomatic relations.
- Subpoenas possible for BlackRock, MSCI over China investments, US House panel chair says — The chairman of a U.S. congressional committee on China held out the possibility on Thursday of subpoenas for executives from asset management firm BlackRock and index provider MSCI if they do not provide “fulsome” answers about investments in blacklisted Chinese companies.
- US says no response yet from China on foreign minister invite to Washington — The United States is yet to receive a response from China for the invitation it has extended to newly reappointed Chinese foreign minister Wang Yi to Washington, U.S. Secretary of State Antony Blinken said on Thursday.
Other Publications
- Center for Strategic & International Studies: De-risking Gallium Supply Chains: The National Security Case for Eroding China’s Critical Mineral Dominance — Recent moves by Beijing to restrict the export of gallium have laid bare the need for Washington and its allies to de-risk their critical mineral supply chains.
- The Bureau: Beijing’s control of media in Canada enabled election interference: CSIS documents — Beijing’s ultimate objective is influencing Canadian media to help elect politicians friendly towards the Chinese Communist Party and promoting reporting that favours its interests, the documents say.
- Chemistry World: Scientists of Chinese descent leaving the US at an accelerating pace — nearly 20,000 scientists of Chinese descent who began their careers in the US have left for other countries, including China, between 2010 and 2021, a team at Princeton, Harvard and the Massachusetts Institute of Technology has found.
- The Economist: The West’s de-risking strategy towards China will fail, says Chris Miller — The economic historian reckons Beijing has many cards left to play in the conflict.
- Washington Post: Opinion: America survived the ‘China Shock.’ There’s still the Trump shock. — The United States has seen the rise of a populist demagogue who threatens to destroy any and all American institutions that stand in his way. By Fareed Zakaria
- Foreign Policy: No Water, No Workers, No Chips — TSMC and other tech giants need to take climate into account or risk seeing their investments go up in smoke.
- Semafor: The startup with a plan to defend Taiwan — Anduril Industries has a simple business pitch: When Chinese leader Xi Jinping allegedly says that his military should be prepared to retake Taiwan by 2027, he means it.
