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’s EV Champion Bets Big on a Different Flavor of Battery — Auto maker BYD is betting on older battery technology, re-engineered for better range, to undercut competitors
- China’s Stock Bulls Spark a Decoupling in Market Prices — Some mismatch between a company’s shares listed on China’s mainland and their counterparts in Hong Kong isn’t unusual. But the growing gulf is creating a strange situation where companies can simultaneously have two radically different valuations.
- Platinum, Palladium Prices Diverge as Car Makers See Uneven Recovery — A strong rebound in Chinese car sales is helping to widen the price gap between palladium—already the most expensive of the major precious metals—and platinum.
- Oracle, Walmart Aim for Big Stakes in TikTok — Backers of plans for Oracle to join with TikTok to create a new U.S. company for the video-sharing app are working on a new ownership structure aimed at alleviating U.S. concerns over Chinese control.
- Judge Clears China’s Harbin to Buy Bankrupt Vitamin Seller GNC — Vitamin seller GNC won court approval to sell itself to its largest shareholder, China’s Harbin Pharmaceutical Group, despite national-security concerns raised by Sen. Marco Rubio.
- This Group of Nations Is a Few Brics Short of a Load — With China and India’s border dispute, the five-member club makes less sense than ever.
- The Dangers in a New Era of Territorial Grabs — Russia, China, Turkey and other countries are making claims on their neighbors’ territory, and the consequences could be dire.
The Financial Times
- China’s assertiveness is against its economic interests — Beijing has stoked a series of flashpoints on the country’s borders.
- Why China’s recovery is not what it seems — Michael Pettis argues imbalances will continue to set China back unless retail sales once again begin to outpace industrial production..
- Forced labour is the price of a cheap cotton T-shirt — Human rights abuses in China and other countries are encouraged by our shopping habits.
The New York Times
- Trump Administration to Ban TikTok and WeChat From U.S. App Stores — The Trump administration issued new rules Friday morning that will cripple the operation of two popular Chinese-owned apps in the United States.
- China Sends Warning to Taiwan and U.S. With Big Show of Air Power — Beijing sent 18 aircraft into the Taiwan Strait as a senior American diplomat held meetings on the island.
- U.S. Pushes Large Arms Sale to Taiwan, Including Jet Missiles That Can Hit China — The administration is proposing the packages as President Trump’s strategists try to paint him as being tough on China despite soft actions earlier.
- China, Seeking a Friend in Europe, Finds Rising Anger and Frustration — Beijing’s hopes of using Europe as a counterweight to the United States have faltered as country after country confronts China over trade, Hong Kong, human rights and other issues.
- China’s Communists to Private Business: You Heed Us, We’ll Help You — Party leaders have pledged to increase their influence over entrepreneurs even as they promise greater aid, reflecting Xi Jinping’s greatest — and sometimes conflicting — challenges.
Caixin
- Largest Chinese Government Bond ETF to List in Singapore — Launch highlights growing international interest in China’s $15.4 trillion onshore bond market.
- Thank the Fed for the Yuan’s Strength, Analysts Say — A broadly depreciating U.S. dollar is the primary reason why the Chinese currency hit a 16-month high this week.
- China’s Biggest Bank Falls Short in Bid to Replenish Capital — ICBC slashes borrowing via risky bonds to $2.9 billion from planned $4.4 billion amid increased competition for fewer investor dollars.
- Japanese Firms in China Buffeted by U.S. Tensions, Pandemic, Survey Finds — More than half of the companies polled expect their profits to fall more than 10% this year.
- Alibaba Launches New Online Housing Platform — Partnership with E-House may set off price war with rival service backed by Tencent as internet giants pile into China’s booming property market.
- China Shouldn’t Set Timeline for Ditching Conventional Vehicles, Experts Say — Advisers developing transportation industry blueprint argue a diversified fleet will better serve China’s complex needs than mandating switch to electric vehicles too soon.
- Alibaba Unveils Delivery Robot to Meet ‘Last-Mile’ Demand — Chinese e-commerce giant Alibaba has unveiled an autonomous logistics robot which will be used by its logistics affiliate Cainiao in an attempt to meet the logistical demands associated with the last-mile of any delivery.
- Alibaba Launches Palm-Sized Cloud Computer With ‘Almost Unlimited Computing Resources’ — Alibaba has unveiled a new computer that it says is as “light as an egg” but has “almost unlimited computing resources”.
South China Morning Post
- US ruling on China’s alleged yuan undervaluation could stoke further rift in relations — As the Trump administration intensifies its economic pressure on China, analysts are wondering if the yuan’s exchange rate will be dragged back into the middle of the dispute.
- Trump targeted both WeChat and TikTok with US bans – why then is Tencent’s app getting an easier ride to date? — With the date of a proposed US ban on Chinese social apps TikTok and WeChat rapidly approaching, and with the former scrambling to put together a deal with Oracle Corp, it looks like WeChat is being given an easier ride by the Trump administration to date.
- US ban on China’s Xinjiang cotton ‘would wreak havoc’, leading apparel group says — The head of a major apparel industry group told US lawmakers on Thursday that blanket import bans on cotton or other products from China’s Xinjiang region over forced labour concerns would “wreak havoc” on legitimate supply chains.
- Hong Kong employers who did not use Covid-19 wage subsidies to retain or pay staff ‘should face higher penalties’ — Penalties should be increased for Hong Kong employers as nearly a fourth of those joining the government’s wage-subsidy scheme have sacked staff or failed to use all the aid to pay workers, unions have urged.
- Ray Dalio book reveals top negotiator Liu He feared ‘tit-for-tat escalations’ before US-China trade war began — When China’s top trade negotiator, Vice-Premier Liu He, walked into the Oval Office to meet US President Donald Trump in May 2018, he was not concerned so much with the outlook of trade negotiations as he was with the potential for escalating disputes between the world’s two largest economies.
- China protests after US envoy to UN meets Taiwanese official in New York — China has protested over a historic meeting between US ambassador to the United Nations Kelly Craft and the head of Taiwan’s de facto consulate in New York, as Washington ramps up support for Taipei despite Beijing’s objections.
- China has more reason to block Nvidia’s Arm deal than approve it, say analysts — The proposed marriage between US graphics chip giant Nvidia and UK-based chip design specialist Arm might face the same fate as Qualcomm’s failed bid for European chip maker NXP if Chinese regulators have their way, according to analysts.
- Beijing’s South China Sea talks with Asean are worse off than it’s letting on, experts say — China may be sounding optimistic notes over an early conclusion of its ongoing talks with Asean for a code of conduct in the disputed South China Sea, but regional scholars of the row say they are far less buoyant that the accord is within reach.
- Xinjiang: China’s white paper may point to forced labour claims, experts say — China’s white paper aiming to defend its so-called vocational training programme in Xinjiang has instead further highlighted the negative impact of its security campaign in the region, according to researchers.
- China coronavirus criticism and Britain’s Huawei 5G ban should not affect WTO bid, says Liam Fox — Liam Fox, the British candidate to lead the World Trade Organisation (WTO), said his vigorous criticism of China’s trade policy and its handling of the coronavirus pandemic should not be a disqualifying factor for his candidacy in the eyes of Beijing.
- China’s military: Beijing promises more troops for UN peacekeeping missions — China says it will increase the number of troops it provides for United Nations peacekeeping missions, as the People’s Liberation Army marks 30 years of involvement in such operations.
- Ant Group gets the green light for mega IPO in Shanghai’s Star Market as China pulls out all stops to help tech champions raise funds — Ant Group, China’s largest digital payments provider by volume, received the green light on Friday to proceed with its blockbuster listing on Shanghai’s Nasdaq-style stock market just four weeks after filing, as regulators showed off their keenness to pull out all stops to help national champions raise capital.
Bloomberg
- Covid Pandemic: Why Indonesia Became Testing Ground for China’s Covid-19 Vaccine — The country is home to Asia’s second-worst Covid-19 outbreak, and it’s eager to take the risks.
- U.S.-China Trade War: How Volvo Became Collateral Damage for the Trade Spat — The Swedish automaker’s South Carolina plant was built to export cars to China. Now the company is waving the stars and stripes.
- Wall Street Struggles to Keep Up in China Mutual Fund Boom — From BlackRock Inc. to Vanguard Group, global asset managers have been dazzled by the promised riches of China’s $3.4 trillion mutual fund industry. However, they’re now learning just how fierce the local competition will be.
- JD Health Is Said to Pick Banks for $1 Billion Hong Kong IPO — JD Health has selected banks for its planned Hong Kong initial public offering, which it could file for as soon as this month, according to people familiar with the matter.
- TikTok Owner Is Gaining Confidence Beijing to Okay U.S. Deal — TikTok-owner ByteDance Ltd. is getting more confident its envisioned alliance with Oracle Corp. will pass muster with China’s regulators, a critical step in the political clash over the popular video app, people familiar with the matter said.
- UBS Mulls China Expansion, New Hires for Asset Management — UBS Group AG is exploring options to expand its asset-management business in China, taking advantage of relaxed rules to defend its leading position among foreign players in the 100 trillion yuan ($14.8 trillion) market.
- China Bans Seafood From Indonesian Exporter After Virus Found — An Indonesian seafood exporter has become the latest in a string of companies to be slapped with a ban by China after product packaging tested positive for the coronavirus.
- China Is Lagging in EV Parts Competitiveness, Think Tank Warns — China’s carmakers risk falling behind global rivals because the country trails in the production of advanced components like chips and software that are crucial for modern vehicles, a prominent industry adviser warned.
- Tencent’s Gaming Stakes Draw U.S. National Security Scrutiny — The Trump administration has asked gaming companies to provide information about their data-security protocols involving Chinese technology giant Tencent Holdings Ltd., people familiar with the matter said.
- Hong Kong Urged to Boost Stimulus Using Fiscal War Chest — Hong Kong’s government is drawing fresh criticism from economists and business advocates who say a third round of virus relief stimulus doesn’t go far enough.
- Singapore Worried About Growing U.S.-China Divide Beyond Trump — U.S. political and economic interests in Southeast Asia will not change regardless of who wins the presidential election in November, Minister for Trade and Industry Chan Chun Sing said on Thursday evening.
- Trump’s WeChat Ban May Face Temporary Halt by U.S. Judge — President Donald Trump’s executive order that could ban Chinese-owned WeChat in the U.S. may face a delay as a judge is considering putting it on hold temporarily.
- China Is Becoming Loss-Making Nissan’s Last Line of Defense — As Nissan Motor Co. struggles to recover from a boardroom scandal surrounding Carlos Ghosn and a sales slump that threatens its alliance with Renault SA, China is emerging as its best bet for a turnaround.
Reuters
- China aims to operate regular space flights by 2045, official says — China aims to set up a space programme operating thousands of flights a year and carrying tens of thousands of tons of cargo and passengers by 2045, state news agency Xinhua quoted an official as saying on Friday.
- China’s Tencent rebrands WeChat work app ahead of Trump ban — Chinese tech giant Tencent Holdings has changed the name of its WeChat Work office collaboration app to WeCom, setting it up as a potential alternative to its messaging app WeChat ahead of a U.S. ban.
- Chinese researchers to test double doses of CanSino’s coronavirus vaccine candidate — Researchers plan to start a clinical trial for an additional dose of a coronavirus vaccine candidate co-developed by China’s CanSino Biologics Inc and a military-backed research unit, clinical trial registry data showed.
- Pandemic to trim China’s 2020 gas demand growth to 4.2%: government report — China’s natural gas consumption is expected to grow at 4.2% in 2020, the slowest pace in five years, a government research report said, after the coronavirus pandemic slowed economic activity and dented demand for energy.
- ASEAN, China, Japan, South Korea vow to use all policy tools to combat pandemic — Finance ministers and central bank governors from 10-member ASEAN nations and China, Japan and South Korea pledged on Friday to use “all available policy tools” to sustain recovery from the COVID-19 pandemic, they said in a joint statement on Friday.
- U.S.-China investment flows slide to nine year-low as bilateral tensions escalate — Investment between the United States and China tumbled to a nine-year low in the first half of 2020, hit by bilateral tensions that could see more Chinese companies come under pressure to divest U.S. operations, a research report said.
- U.S. House resolution opposes anti-Asian coronavirus rhetoric, including Trump’s ‘China virus’ — The U.S. House of Representatives passed a resolution on Thursday denouncing anti-Asian rhetoric related to the coronavirus pandemic, including expressions like “China virus” frequently used by President Donald Trump.
Xinhua
- China’s non-financial ODI down 2.6 pct — China’s non-financial outbound direct investment (ODI) went down 2.6 percent year on year in the first eight months of the year, data showed Thursday.
- China’s central bank injects liquidity into market — China’s central bank on Friday continued to pump cash into the banking system via reverse repos to maintain liquidity.
- Chinese yuan extends gains against USD to 16-month high — The central parity rate of the Chinese currency renminbi, or the yuan, extended gains Thursday to hit a new high in 16 months against the U.S. dollar.
- Shanghai’s foreign trade up 5.9 percent in August — Shanghai’s foreign trade grew by 5.9 percent year on year to reach 312.51 billion yuan (around 46.25 billion U.S. dollars) in August, with its exports and imports both registering robust increases, the city’s customs said on Friday.
- Cargo throughput at China’s major ports continues to recover — Cargo throughput at China’s major ports has continued to recover as economic activities have normalized amid effective epidemic control measures, data from the China Ports Association showed.
Other Publications
- TechCrunch: China’s vaping giant Relx gears up for US entry — The backlash against vaping in the United States has not deterred a Chinese challenger from entering the world’s largest vaping market.
- CNBC: German chipmaker Infineon prepared to handle increased competition from China, CEO says — Geopolitical tensions between Washington and Beijing remain a concern for German chipmaker Infineon and the company preparing for increased competition in the semiconductor space out of China, CEO Reinhard Ploss said. Infineon is one of the largest semiconductor companies in the world and is a top player in automotive, power and security chips.
