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
- A Smarter Way to Play ‘China Bailout Roulette’ — Chinese stocks are surging on a big reserve ratio cut and rumors of an impending bailout. Tread with care.
- China Moves to Boost Bank Lending in Effort to Prop Up Growth — The central bank made an early move in what is expected to be a broad but restrained campaign to prop up growth this year after a lackluster 2023.
- He Hunted Corrupt Chinese Officials. Now He’s Set to Be Foreign Minister. — A party loyalist and an English speaker, Liu Jianchao has been called “a wolf warrior in sheep’s clothing.”
- Opinion: Xi Jinping Stars as King Canute With Chinese Stocks — Beijing may try to rescue failing share prices with $280 billion. Good luck. By The Editorial Board.
The Financial Times
- US urges China to help curb Red Sea attacks by Iran-backed Houthis — Diplomatic pressure on Beijing has not yet yielded results, say officials.
- China cuts bank reserve ratio to boost growth as sentiment sours — People’s Bank of China promises ‘good monetary and financial environment for the economy’ amid stock market rout.
- China tightens access to offshore investment funds as domestic market founders — Curbs on funds that allow retail investors to bet on foreign securities come amid sell-off in Chinese equities.
- Are we making a mountain out of a snowball? — Shanghai can’t hear you knock-in.
- Myanmar military losing grip near Chinese border — Fighting reportedly persists despite Beijing-brokered truce with armed rebel groups.
The New York Times
- Shih Ming-teh, Defiant Activist for a Democratic Taiwan, Dies at 83 — He spent 25 years in prison for campaigning for Taiwan’s independence and democratization. After his release, he led protests to oust one of its presidents.
- Why China Has Lost Interest in Hollywood Movies — Chinese moviegoers who once flocked to Hollywood films have been steadily disappearing.
Caixin
- Analysis: Will China’s Relaxed Share Buyback Rules Help or Hinder the Market? — The amended regulation is meant to encourage the practice, which in theory is positive for stock prices, but skeptics warn the changes may amplify risks, deter investment, and enable more self-serving repurchases.
- China Partnership Driven by Business Not Politics, Saudi Minister Says — China has a lot to offer the oil-rich kingdom in terms of investment and expertise, Minister of Industry and Mineral Resources Bandar Alkhorayef tells Caixin in an interview in Davos.
- In Depth: Luxury Brands’ Strategies Diverge Amid Weak Economic Recovery in China — Swankiest global brands are building bigger in the biggest cities to cater to VIPs, while their more accessible competitors are refocusing further afield and deeper online.
South China Morning Post
- China’s ethnic affairs officials urged to promote integration of minority groups — Senior policy directors gather for meeting to outline goals for Beijing’s ethnic affairs policies for this year, including addressing ‘hidden dangers’ and launching cultural initiatives that ‘reflect the commonality of the Chinese nation’.
- China smartphone maker Oppo ends protracted legal battle with Nokia, agrees to pay 5G royalties — The two firms had been engaged in multiple patent lawsuits, including one that resulted in Oppo being banned from selling smartphones in Germany.
- Jack Ma, Joe Tsai replace SoftBank as Alibaba’s largest shareholders by scooping up tech giant’s tumbling shares in Hong Kong, New York — The combined stakes of the two co-founders eclipsed SoftBank Group, which has reduced its shares in Alibaba through a series of forward contracts.
- Between China and Russia, landlocked Mongolia eyes summit to enhance ties as geopolitical pressures mount — Mongolian Prime Minister Luvsannamsrai Oyun-Erdene says interconnectivity is being prioritised to enhance resource trade and investment flows, and his country is ready and waiting for its two neighbours to act.
Nikkei Asia
- Tesla cars face more entry bans in China as ‘security concerns’ accelerate — Sources told Nikkei that a growing number of government affiliates, local authority agencies, and highway operators have restricted Teslas from entering their premises since last year.
- Made-in-Asia generative AI race heats up amid U.S. dominance — Vietnam has joined the race in Asia to develop generative AI programs that cater to local languages and cultures, as well as shedding dependency on services offered by U.S. tech groups.
- Asia Inc. heads to Washington as focus turns to trade, tariffs and Trump — Amid sanctions, a tech war with China and an ongoing presidential election campaign, the U.S.’s next trade moves are becoming harder to predict for companies in Asia and across the world.
Bloomberg
- When China’s Stock Market Tanks, the ‘National Team’ Rides into Action — It rose to prominence when China’s stock market imploded in 2015, spending billions of dollars on equities as the authorities hurried to stem the losses. Now, with more than $6 trillion wiped off the value of Chinese and Hong Kong shares since a peak in 2021, there’s high anticipation that the “national team” will ride to the rescue once more.
- German Firms in China Say Economy Is on ‘Downward Trajectory’ — Most German companies in China think the Asian nation’s economy is declining and will take at least a year to rebound.
- China’s Europe Envoy Shrugs Off Qin Gang Removal as ‘Not Uncommon’ — One of Beijing’s most senior diplomats dismissed concern over the ouster of former Foreign Minister Qin Gang, in rare public comments from a Chinese official about the mysterious episode.
- Opinion: China Economy: Hong Kong Faces Repeat of 1998 Asia Financial Crisis — China’s unwillingness to tackle its debt crisis is forcing rapid stock selloffs. People are worried. By Shuli Ren.
Reuters
- Exclusive: China Evergrande offshore bondholder group to join liquidation petition – sources — A winding-up ruling of the developer with $300 billion of liabilities and $240 billion of assets would likely send shockwaves through already fragile Chinese capital and property markets.
- China central bank acts to support markets, economy — The People’s Bank of China would cut the reserve requirement ratio for all banks by 50 basis points, thereby freeing up 1 trillion yuan ($139.45 billion) to the market.
- What investors are saying about China’s market meltdown — Stock markets in China and Hong Kong have slumped to multi-year lows this week as confidence in the world’s second-biggest economy has evaporated and foreign money has fled.
Other Publications
- Foreign Policy: The Reason China Can’t Stop Its Decline — The conventional wisdom on China has shifted but still misses the bigger picture.
- Foreign Affairs: Myanmar’s Rebels Are Gaining Ground — As the Ruling Junta Reels, the Country Faces a Perilous Tipping Point.
- AP: China formally restores diplomatic relations with Nauru after Pacific island nation cut Taiwan ties — Wang Yi said the resumption of ties “once again demonstrates to the world that adherence to the one-China principle is an irresistible historical trend.”
- The Economist: Few countries are better placed than Vietnam to get rich — Yet political paralysis could slow it down.
- Brookings: Tibet, Taiwan, and the India-China-US triangle — While India has remained careful about how it addresses China’s “sovereignty concerns,” since 2020 New Delhi has been less deferential to Beijing’s sensitivities on issues such as Tibet and Taiwan.
- CSIS: China’s Unification from Within: Dismantling Local Protectionism — Xi Jinping persists in advancing the reforms aimed at overcoming localism and constructing a “unified national market” (全国统一大市场) with significant momentum.
- CSIS: Morocco, an Unexpected Winner of China’s Strategy to Circumvent the U.S. Inflation Reduction Act — With China’s latest strategic move, the biggest winners will be countries like Morocco, with its solid industrial landscape, and stable political and economic environment
