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 Overcapacity Is Already Backfiring — Excess investment in industry isn’t made up by China’s trading partners, and it has domestic consequences.
- Baidu Says Ernie AI Chatbot Now Has 200 Million Users — The number of users of Baidu’s Ernie Bot, China’s most popular ChatGPT-style chatbot, has doubled in recent months to more than 200 million, according to the company.
- PwC Pushes Back at Evergrande Letter — PricewaterhouseCoopers has responded to a public letter that blamed some of its executives for the global accounting firm’s exposure to China Evergrande, the fallen property giant.
- China’s Factories Drive Uneven Economic Recovery — The world’s second-largest economy grew 5.3% to start the year, but there were familiar signs of weakness in consumption and real estate.
- Fitch Ratings Downgrades Outlook for Chinese State-Owned Banks — Fitch Ratings has downgraded the outlook for six Chinese state-owned banks amid concerns about the government’s ability to support the sector in the event of stress.
- Microsoft Ups Ante in AI Race With China Through Stake in Abu Dhabi Firm — The $1.5 billion deal between the U.S. tech firm and Abu Dhabi-based G42 signals a pivot for the Gulf state toward Washington.
- China’s Air Passenger Numbers Surge in First Quarter — Chinese air passenger numbers surged at the start of the year amid pent-up domestic travel demand and government stimulus to revive cross-border travel.
- Chinese Developer Sinks After HSBC Subsidiary Files Liquidation Petition — A subsidiary of HSBC wants to liquidate debt-troubled Times China, in another instance of creditors seeking to recoup funds from developers amid China’s protracted property slump.
- Germany in New Push to Get China Behind Ukraine Peace Efforts — Chancellor Olaf Scholz will meet Xi Jinping in Beijing amid expectations that Russia could launch a new offensive.
The Financial Times
- Xi says China’s exports are helping ease global inflation — Chinese president warns German Chancellor Olaf Scholz against ‘rise of protectionism’.
- China’s economic growth hits 5.3% — Annual figure for first quarter beats expectations as Beijing seeks manufacturing-led revival.
- Manufacturers need to face up to new wave of Chinese competition — Pace of post-pandemic development a wake-up call for western companies.
- China’s bubble tea brands look to create a stir overseas — ChaPanda, Mixue and Guming eye stock market listings after pioneering mainland boom.
- BNP Paribas gets green light for fully owned Chinese securities venture — Regulatory approval comes as Chinese economic growth slows.
The New York Times
- Why Germany Can’t Break Up With China — China remains one of the most important markets for Germany’s export-driven economy, prompting a three-day visit by the German chancellor, who has stressed the importance of open markets.
- Microsoft Makes High-Stakes Play in Tech Cold War With Emirati A.I. Deal — Microsoft said it would invest $1.5 billion in G42, an Emirati company with ties to China, as Washington and Beijing maneuver to secure tech influence in the Gulf.
- Germany’s Leader, Olaf Scholz, Walks a Fine Line in China — Chancellor Olaf Scholz tried to promote German business interests while delivering warnings from Europe about trade and geopolitical tensions.
- China’s First Quarter Results Show Growth Propelled by Its Factories — China’s big bet on manufacturing helped to counteract its housing slowdown in the first three months of the year, but other countries are worried about a flood of Chinese goods.
Caixin
- Former Deputy General Manager of China Taiping Insurance Prosecuted for Bribery — Xiao Xing abused his power by seeking benefits for others in exchange for huge amounts of bribes, procuratorate says.
- More Overseas Buyers Turn Out for Canton Fair in Strong Sign for Exports — China’s biggest trade fair drew more than 60,000 purchasers from abroad on its opening day.
- Chinese AI Firm Gunning for ChatGPT Hopes to Raise Up to $44.3 Million in Hong Kong IPO — Beijing-based Mobvoi is pricing its shares as high as HK$4.10 each.
- Alibaba Diverts from New Retail Push in Strategy Reckoning — Speculation mounts that Freshippo and RT-Mart might be for sale as Alibaba turns it focus back on to core businesses.
South China Morning Post
- Officials promote China-led cyber governance to Belt and Road members during the Digital Silk Road forum in Xian — Officials touted China’s progress in strengthening digital development initiatives for BRI members, calling for countries to work together and ‘oppose technological blockades’.
- Chinese police arrest over 1,500 for online rumours in campaign targeting influencers, bloggers and live-streamers — China shuts down 63,000 illegal accounts in crackdown on social media posts with false information about hot-button issues such as pandemic and disasters.
- Tech war: how Chinese scientists rigged a low-cost AI computer chip to power a hypersonic weapon — Using a Nvidia module widely available online, Chinese researchers overcome significant obstacles to boost the performance of a hypersonic vehicle.
- From consumption to tourism, China’s middle class holds the key to revving up economic engine, but can they turn it? — Ahead of China’s quarterly GDP release, survey figures reflect how difficult times have been for half a billion Chinese people, and where their priorities now lie.
Nikkei Asia
- NATO could be drawn into Taiwan conflict, affiliated report finds — NATO could become involved in a potential Taiwan conflict if fighting reaches U.S. territory in the Pacific, according to a paper from a Rome-based research and education institution, titled “NATO and a Taiwan contingency,”.
- China’s Gen Z turns frugal as economy doubts linger — China’s Generation Z, born between 1995 and 2009, makes up nearly one-fifth of the population and is key for policies aiming to spur spending.
- China’s clampdown on data spreads to real-time stock information — Aligning with ‘international standards’ cited as reason for lowering transparency.
- Opinion: U.S.-China fight over manufacturing subsidies just getting started — Janet Yellen’s visit was noteworthy nonetheless in underscoring the looming collision between the two governments over China’s surplus industrial production. By Stephen Olson.
Bloomberg
- China’s Rising Youth Unemployment Needs Attention, Official Says — China’s rising youth unemployment rate needs more scrutiny, a government official warned, as a weak labor market continues to weigh on growth in the world’s second-largest economy.
- China Air Travel Hits Fresh Record on Lunar New Year Boost — China’s airlines flew a record number of people in the first quarter, amid government efforts to boost the nation’s tourism sector and strong demand for holidays at home.
- China Tells Iran Cooperation Will Last After Attack on Israel — China’s top diplomat told Iran that the nations can work together across a range of areas in the future, signaling their ties remain solid following Tehran’s unprecedented attack on Israel.
- EU Goes on China Trade Offensive After Getting ‘Played’ — European Commission President Ursula von der Leyen is unleashing a barrage of trade restrictions against China as she seeks to follow through on a pledge to make the EU a more relevant political player on the global stage.
Reuters
- China’s cycle of dollar hoarding and weakening yuan gets vicious — Analysts say one of two things needs to happen to end the downward spiral: the Federal Reserve needs to make deep rate cuts or the yuan needs to hit some form of a trough. Both seem distant.
- US trade chief Tai says taking ‘serious look’ at tools to deal with China — In excerpts of testimony, Tai said that China’s policies were causing “dependencies and vulnerabilities in multiple sectors, harming American workers and businesses and creating real risks for our supply chains.”
- How China’s demand for donkey hide is devastating African communities — The e-jiao industry requires an estimated 5.9 million donkey skins annually, which has put unprecedented pressure on global populations.
Other Publications
- The Economist: America hits Chinese biotech—and its own drugmakers — A sweeping bill in Congress could cost patients at home.
- The Washington Post: Biden’s options for retaliating against Iran risk antagonizing China — The president’s aides are considering economic penalties on Tehran amid pressure from GOP lawmakers on Capitol Hill.
- Foreign Affairs: Japan’s China Reckoning — Why Tokyo Must Strengthen Its Ties to Democratic Allies.
