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.K. Arrests Parliamentary Researcher in China Spy Probe — Arrest marks latest setback for relations amid allegations of broader Chinese influence operation.
- Xi’s Tight Control Hampers Stronger Response to China’s Slowdown — While officials become more worried about growth, they can’t act without top leader’s approval.
- Biden Seeks Stronger Vietnam Ties in Bid to Counter China — President is visiting Hanoi after attending a gathering of G-20 leaders in India.
- Alibaba’s Former Chairman Daniel Zhang Steps Down From Last Executive Role at Company — In a surprise move, Zhang, who was handpicked by co-founder Jack Ma as successor, resigns as head of cloud computing unit.
- Apple’s China Dependency Spooks Investors After Ban — The iPhone maker has overcome several crises in China, but being dragged into a geopolitical fight could be its toughest yet.
- China’s Top Diplomat to Skip U.N. Assembly, Raising Doubts About Possible Xi Visit to U.S. — Beijing’s surprise decision to dispatch its ceremonial vice president to the U.N. sends mixed signals over efforts to stabilize U.S.-China ties.
- How the U.S. Stumbled Into Using Chips as a Weapon Against China — Export restrictions on semiconductors and other cutting-edge tech have become an important foreign-policy tool, but the long-term consequences could be dangerous for America and the world.
- Chinese Consumer Inflation Returns in Reprieve for Economy — Economists say more stimulus is needed to revive sluggish growth.
- Xi’s Absence at G-20 Points to Growing Rift Over Global Leadership — China shuns what it sees as U.S.-dominated forums as it focuses on groupings in which it holds greater sway, such as the Brics bloc.
The Financial Times
- UK parliamentary researcher denies China spying claims — MPs call for Beijing to be designated a ‘threat’ after police say two men have been arrested on espionage allegations.
- China issues strong warning against bets on renminbi depreciation — Currency rebounds from 16-year low as Beijing releases positive lending data earlier than usual.
- Former Alibaba chief Daniel Zhang steps down from cloud unit — Leadership shake-up comes as ecommerce group starts breaking up its empire.
- China accused of interfering in UK ‘parliamentary democracy’ — Rishi Sunak’s comments come after arrest of parliamentary researcher on suspicion of spying for Beijing.
- Vietnam and US upgrade relations in move to counter China — Biden signs deal between former foes during Hanoi visit in response to Beijing’s assertiveness.
- Meloni calls for ‘mutually beneficial’ China trade as Belt & Road decision looms — Italy seeks to extricate itself from Beijing’s flagship foreign policy initiative without provoking its wrath.
- Opinion: Have we reached peak pessimism on China? — The consensus now sees the country stagnating long term, but is missing more dramatic short-term scenarios. By Ruchir Sharma
- China opposed plans for US to host G20 in 2026 — Officials say Beijing unsuccessfully sought to delete reference to America’s presidency from this year’s declaration.
The New York Times
- Chinese Warnings on iPhones Tap Deep Strain of Security Concerns — For years, officials in China have been told to shun foreign devices. Now reports of renewed curbs have unnerved Apple’s investors, heightening geopolitical tensions.
- China May Ban Clothes That Hurt People’s Feelings. People Are Outraged. — A proposal evokes memories of 1980s China, when opening up to the world set off a debate over flared pants and men with long hair, what the party called “weird attire.”
- Biden Forges Deeper Ties With Vietnam as China Mounts Ambition — Visiting Hanoi, the president cemented a new strategic partnership that puts the memories of the past behind them and focuses on mutual concerns over Beijing’s assertiveness in the region.
- Daniel Zhang Steps Down From Alibaba — Daniel Zhang, who had been expected to give up his chief executive and chairman roles this month, is also leaving as head of the company’s cloud division.
- Wang Fang Criticized for Mariupol Performance — The singer Wang Fang drew criticism after she performed “Katyusha,” a Soviet-era patriotic song, at the ruins of a theater in Mariupol.
- China Is Full of Risks. So Why Can’t Corporate America Leave? — Doing business in China, once seen as a can’t-miss opportunity, poses a troubling quandary: Reasons to stay can be as compelling as the reasons to retreat.
Caixin
- Cover Story: Chinese Battery Makers Gird for Price War in Competition to Supply EV Producers — China, the world’s biggest maker of electric vehicles, is poised to become a battleground for a price war between the two largest producers of the batteries that power EVs.
- Daniel Zhang Quits Alibaba’s Cloud Unit in Surprise Exit — In an announcement Sunday, Alibaba said new chairman Joseph Tsai and CEO Eddie Wu had assumed Zhang’s former dual roles, while Wu had also taken over as the cloud unit’s acting CEO and chairman.
- China’s Efforts to Bolster Stock Markets Fall Flat With Offshore Investors — Almost two weeks after the Chinese government released a series of measures to encourage stock trading, the reaction from overseas investors has been less than enthusiastic.
South China Morning Post
- Chinese ride-hailing giant Didi Global sees second-quarter revenue rise and losses narrow on strong domestic demand, regulatory easing — Didi posted a 52.6 per cent year-on-year jump in second-quarter revenue to US$6.6 billion on the back of strong demand at both its core mainland China and international operations.
- PLA aircraft carrier Shandong makes Taiwan ‘show of force’ days after US, Canadian warships cross strait — The Shandong sailed just 60 nautical miles off Taiwan’s southernmost tip, island’s defence ministry says in statement on Monday.
- China wants metaverse firms with ‘global influence’ and plans for up to 5 industrial clusters by 2025 — A new blueprint issued by five national Chinese agencies aims to develop the domestic metaverse for industrial use through technologies like blockchain and AI.
- Apple faces tough test with iPhone 15 launch in China amid government use ban and as Huawei fights back with Mate 60 Pro — Apple is facing new competition from Huawei and a govenment use ban on iPhones as it prepares to launch its latest model in China.
Nikkei Asia
- Taiwan cultural rise on world stage threatened by China: minister — Beijing’s arrest of publisher Fucha sparks backlash, tests ‘cultural resilience.’
- Huawei releases 5G foldable phone ahead of Apple’s big launch event — Device introduced with little fanfare follows new Mate 60 Pro in using in-house chips.
- Biden talked with China’s Li Qiang about ‘stability’ at G20 — U.S. president says Xi Jinping ‘has his hands full’ with economy.
Bloomberg
- Hunt Says UK Need to Talk to China Trumps Espionage Dispute — Jeremy Hunt said the UK takes any attempt to subvert its democratic processes “very seriously,” but that an escalating espionage dispute with China underscored the need for diplomatic dialog with Beijing.
- China’s Premier Urges Biden to See His Nation as an Opportunity — China said that Premier Li Qiang used a meeting with President Joe Biden at the recent Group of 20 summit to urge the US to see the possibilities that his nation’s advances offer.
- China Shows Signs of Stability as Credit, Inflation Improve — China’s credit demand improved, deflationary pressures eased and the yuan rallied, adding to a recent trickle of signs that the economy and financial markets may be stabilizing after a sharp downturn.
Reuters
- Exclusive: China’s central bank to scrutinise bulk dollar purchases – sources — China’s central bank is tightening its scrutiny of bulk dollar purchases by domestic firms, three sources with direct knowledge of the matter said on Monday, at a time when the Chinese currency faces mounting depreciation pressure.
- Western sanctions to sustain surge in China auto exports to Russia-CAAM — Western sanctions against Russia are boosting demand for China-made cars, and this surge could continue as long as these sanctions remain in place, an executive with China’s auto association said on Monday.
- Franklin Templeton CEO says China pessimism is overhyped — The idea that investment opportunities in China have met their demise is probably overhyped, said Jenny Johnson, president and chief executive officer at global investment management firm Franklin Templeton.
Other Publications
- The Guardian: Chinese academic raided by Australian police and offered $2,000 for information during trip — Sino-Australian relations expert had phone confiscated and was asked to provide information during ‘heavy-handed’ and ‘counterproductive’ episode
- Associated Press: Thailand’s LGBTQ+ community draws tourists from China looking to be themselves — LGBTQ+ people from China, frequently scorned and ostracized at home, are coming to Thailand in droves, drawn by the freedom to be themselves.
- CNBC: Long visa wait times are holding back a rebound in China’s international travel — Long wait times for visa applications are keeping people in China from traveling internationally as much as they’d like to, Jane Sun, CEO of travel booking site Trip.com Group, told CNBC.
- The Economist: Does China face a lost decade? — Xi Jinping has the tools to escape Japan’s fate. He should use them.
