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
- Janet Yellen Missed the First ‘China Shock.’ Can She Stop the Second? — The Treasury secretary heads to China this week with a tough economic message as the Biden administration moves toward raising tariffs.
- China’s Service Economy Expands Further, Adding to Signs of Recovery — A private gauge of China’s services activities notched a 15th straight month of growth, adding to signs of green shoots in the world’s second-largest economy as government stimulus measures kick in.
- Kweichow Moutai 2023 Net Profit Jumped on Stronger Sales — Chinese liquor giant Kweichow Moutai says it is aiming for continuous sales growth this year after posting a 19% rise in 2023 net profit on stronger sales.
- Biden Warns Xi on Aiding Russia’s War in Ukraine — China has found ways to indirectly help Moscow’s military campaign in Ukraine, U.S. officials say.
- Former Taiwan President’s Visit Gives China a Chance to Play Peace Card — Ma Ying-jeou’s itinerary could include a reunion with Chinese leader Xi Jinping in Beijing—with the aim of repairing frayed ties.
The Financial Times
- Lawmakers propose sanctions on US index funds investing in China — Act aims to impose penalties on funds that track indices that include Chinese companies.
- China’s rival to Boeing and Airbus looks to Asia first — Aircraft maker hopes C919 will pick up initial overseas orders in south-east Asia.
- Biden and Xi have ‘candid’ call in first talks since November — US and Chinese leaders discuss Taiwan, TikTok and sanctions among other issues in nearly two-hour long discussion.
- Senators urge White House to investigate Nippon Steel ties to China — Japanese company’s bid for US Steel further complicated by industrial state politicians.
The New York Times
- Canadian Lawmaker Says China Had Chinese Students Vote for Him — Han Dong, a member of Parliament who is accused of benefiting from the Chinese government’s help, testified at a public hearing on foreign interference.
- Yellen to Visit China for Top-Level Economic Talks — The Treasury secretary plans to address a surge of Chinese green technology exports during meetings in Beijing and Guangzhou.
- Biden Talks to Xi About Conflicts, From Ukraine to the Pacific — President Biden aimed to keep relations stable in a call with Xi Jinping of China, but also raised concerns over Beijing’s activities around Taiwan, the South China Sea and Russia.
- Tesla’s Sales Drop, a Sign That Its Grip on the E.V. Market Is Slipping — Sales of the company’s electric cars dropped in the first three months of the year, even as other automakers sold more battery-powered vehicles.
Caixin
- Frugality Bites for China’s Cash-Strapped Local Governments — With growth in fiscal revenue set to remain sluggish this year, officials are cutting back on general spending and scrapping some investments.
- Moscow Closes Auto Export Loophole That Had Been a Boon to Chinese Traders — Under previous rules, middlemen could skirt customs duties by first shipping Chinese-made vehicles bound for Russia to countries in the Eurasian Economic Union.
- Zeekr Upgrades Popular Model as EV Competition Heats Up in China — The carmaker, a subsidiary of auto giant Geely, has added 14-way adjustable front seats, heated rear seats, and a high-end sound system to the 007 sedan’s basic version.
- Nio Offers $138 Million Subsidy Program to Spur Sales — EV maker joins competitive fray as many firms cut prices.
- Two Ex-Executives of CNOOC Fall Amid Anti-Graft Storm — Two more industry veterans face probe as authorities target corruption in sprawling state-owned sector.
South China Morning Post
- Taiwan earthquake disrupts trains in mainland China at start of Ching Ming travel rush — High-speed rail services affected in Shanghai, with suspensions and delays for passengers in Fujian, Jiangxi, Guandong and Zhejiang provinces.
- China doubles subsidies for child, elderly care facilities to deal with demographic decline — To meet the needs of its ageing population, China will offer more in subsidies for new care facilities and expand existing networks to accommodate children and the elderly.
- China’s new data agency plans fast track to powerful national computing network — China – second only to the US in terms of aggregated processing power – sets 2025 deadline to scale up capacity by half.
- Chinese video-sharing platform Bilibili restructures content units, bets on live streaming amid pressure to turn a profit — Chinese video-sharing platform Bilibili has restructured its content units and is doubling down on the live streaming business, as the US and Hong Kong-listed company struggles to make a profit.
- Opinion: China’s property market is at risk of an overcorrection, not oversupply — There is no risk of China’s property sector woes spreading into a financial crisis but there is a policy-induced housing crisis and restrictions must be further eased. By Weijian Shan.
Nikkei Asia
- China’s tech workers trapped in jobs by noncompete contracts — Legal experts say a growing number of China’s leading tech companies are using noncompete agreements to retain even junior talent as the U.S.-China tech war heats up.
- China economists flag GDP slowdown despite Beijing’s ‘bright future’ talk — New economic forecasts for China show Beijing’s efforts to promote an optimistic narrative have not shaken predictions of a long-term slowdown, with the growth rate seen sinking well below 5%.
- Country Garden’s monthly sales tumble over 80% again in March — Embattled Chinese property developer Country Garden Holdings reported Tuesday night that contracted sales in March dropped by 83% on the year to $595 million.
- China self-driving truck startup Inceptio eyes Japan tie-ups in global push — The company is in contact with Japanese companies and is exploring the possibility of cooperating in the production of autonomous driving systems for large trucks.
Bloomberg
- China’s Overcapacity Is More About Solar and Batteries Than EVs — In Washington and Brussels, there’s a consensus that China is experiencing a surge of excess capacity that could wipe out overseas industries, spurring protectionist measures to stem the damage.
- Founder Group Bondholders Ask China to Recognize Keepwell Ruling — A Beijing court is being asked to consider a case that may set precedents for the payment protection provided on some bonds — and also the sway of Hong Kong’s judiciary in mainland China.
- Gallium Has More Than Doubled in Price on China Export Curbs — Prices for gallium are close to their highest since 2011 as China’s export restrictions crimp global supply and hurt buyers of the metal used in a swathe of high-tech applications.
- Opinion: China Should Not Repeat History With Taiwan’s Quake — The island — a center for global chipmaking — needs calm cross-strait relations with Beijing so it can focus on rescue and relief operations. By Karishma Vaswani.
Reuters
- China solar industry faces shakeout, but rock-bottom prices to persist — China accounts for 80% of solar module production capacity after years of subsidies, driving oversupply that has triggered a collapse in global prices.
- Philippines prepared to respond to China’s attempts to interfere with re-supply missions — Jonathan Malaya, the spokesperson of the National Security Council, said the Philippines is committed to maintaining its position at the Second Thomas Shoal.
- China eases car loan policy for first time since 2018 to boost demand — Prior to the revision, which takes effect immediately, NEVs were subject to a minimum down payment of 15%, and internal combustion vehicles to a 20% down payment limit.
- Exiled Chinese businessman Guo Wengui must face US fraud indictment — U.S. District Judge Analisa Torres in Manhattan said prosecutors sufficiently alleged that Guo engaged in a pattern of racketeering through four fraud schemes, and that proving it was a matter for trial.
Other Publications
- Foreign Policy: How the United States Lost Niger — Growing Russian, Chinese, and Iranian influence in the Sahel is testing Washington’s clout in an increasingly strategic continent.
- Foreign Affairs: What the TikTok Bill Gets Wrong — Congress Should Regulate All Social Media Apps—Not Just Chinese Ones.
- POLITICO: U.S. states are cutting off Chinese citizens and companies from land ownership — Skepticism about federal protections spurs surge in laws aimed to firewall states from perceived malign Chinese influence through land purchases.
- The Washington Post: DHS report rips Microsoft for ‘cascade’ of errors in China hack — The independent Cyber Safety Review Board’s report knocks the tech giant for shoddy cybersecurity practices, lax corporate culture and a deliberate lack of transparency.
- The Economist: Yu Hua on why young Chinese no longer want to work for private firms — In today’s China stability trumps enterprise, argues the novelist.
- CSIS: Chinese Assessments of AI: Risks and Mitigation Strategies — How Beijing is weighing the risks and challenges of AI, and implications for U.S.-China competition.
- Rest of World: China is betting on battery swaps to tackle EV chargers shortage — Rarely seen globally, there are already thousands of battery swap stations across China.
- National Review: NYC Mayor Eric Adams Skipped Banquet for Taiwan’s President after Lobbying by Chinese Diplomat — The Chinese lobbying sheds light on Chinese Communist Party campaigns to influence key state and local officials.
- The Guardian: Opinion: Netflix’s 3 Body Problem is sci-fi. But beyond the alien threat lies the trauma of modern China — Though Liu Cixin’s revered trilogy has been westernised for TV, it dares to trace the scars of the Cultural Revolution. By Tania Branigan.
