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.S. Blocks Imports From 26 More Chinese Companies Over Forced Labor Concerns — The move, which comes amid a broad crackdown, targets Chinese textile companies and sharply increases the list of banned firms.
- Microsoft Asks Hundreds of China-Based AI Staff to Consider Relocating Amid U.S.-China Tensions — The request comes as the Biden administration toughens controls on China’s access to cutting-edge American technology.
- Baidu Posts Quarterly Beat, Helped by AI Pursuits — Chinese search-engine giant Baidu reported a drop in quarterly profit, but beat top- and bottom-line estimates, helped by stable online marketing revenue and rising sales from its AI Cloud business.
- Chinese Retailer Temu Under Fire From European Consumer Groups — Temu, the discount retailing app owned by Chinese e-commerce giant PDD Holdings, is facing consumer complaints that its business practices violate a new online content law in Europe.
- China Property Stocks Rally as More Cities Unveil Rescue Steps — Shares of Chinese property developers surged on rising expectations that government entities in China are helping buy up excess housing in a bid to revive the struggling real-estate sector.
- For China, Russia Is Both a Partner and a Predicament — On his trip to Beijing, Russian President Vladimir Putin will be seeking more support from Chinese leader Xi Jinping to resist Western efforts to isolate Moscow.
- Mystery in the Alps: A Chinese Family, a Swiss Inn and the World’s Most Expensive Weapon — Switzerland agreed to buy F-35 jet fighters to park on a remote runway. Then the U.S. zeroed in on the Wangs, who owned the rustic hotel next door.
The Financial Times
- Microsoft offers staff to relocate from China — Offer comes as tensions rise between Washington and Beijing over sensitive technology.
- Biden to raise solar import tariffs in bid to protect US industry — Move follows sweeping levies on Chinese goods in latest protectionist trade action ahead of November election.
- Putin and Xi hail Russia-China ‘friendship’ on state visit — Russian president seeks further support for wartime economy in face of western sanctions.
- China’s biggest banks launch first sales of special loss-absorbing debt — TLAC bonds are part of push from international regulators to shore up balance sheets.
- Why growing China-Russia military ties worry the west — Closer co-operation forged through joint exercises is forcing Pentagon and allies to react.
- Shein switches focus to London after New York IPO stalls — E-commerce giant’s proposed US listing appears stuck amid trade tensions between Washington and Beijing.
- EU under pressure after US levies tariffs on Chinese goods — Brussels scrambles to avoid being dragged into trade war between Washington and Beijing.
- Tariffs against America — The EU should not be tempted to respond in kind. By Martin Sandbu.
- China must learn from Japan’s ‘lost decades’ — The consequences of the world’s second-largest economy being sucked into a deflationary spiral would be severe. By Takeshi Niinami.
The New York Times
- In Show of Unity, Putin and Xi Hail ‘New Model’ of Ties Between Powers — At a summit with China’s leader, in Beijing, the Russian president called for stronger economic ties between the countries, as he intensifies his war effort.
- Putin-Xi Summit — China’s backing will be crucial to President Vladimir V. Putin as he intensifies his offensive in Ukraine. But his host, Xi Jinping, has other competing priorities.
- Opinion: Don’t Slam the Door on Inexpensive Chinese Electric Vehicles — Electric vehicles shouldn’t be a luxury item, but Biden’s tariffs mean they may remain so. By Gernot Wagner and Conor Walsh.
Caixin
- Former ICBC Vice President Arrested on Bribery Charges — Zhang Hongli also engaged in ‘superstitious activities’ and read books with ‘serious political problems,’ a corruption investigation finds.
- China Rolls Out Stricter Rules for Quant Trading to Curb Market Volatility — Under the new regulations, stock exchanges need to monitor program trading in real time and set up standards to identify ‘abnormal’ moves.
- What’s in China’s Policy Toolbox to Tackle the Ballooning Housing Stocks — The Politburo wants to reduce China’s housing inventory and stimulate home sales. How will they do it?
- EU Wind Power Probe Could Blow Chinese Expansion Plans Off Course — Subsidy investigation adds to the hurdles turbine-makers face, including challenges with funding and certification.
- Fosun’s Hospital Unit Secures $41 Million Funding With IPO Promise — Shanghai Fosun Pharmaceutical Co. Ltd. intends to spin off its hospital business for a separate listing.
South China Morning Post
- China’s murky debt collections get new rules: don’t harass, no late-night operations, don’t enter homes uninvited — With household debt at worrisome levels, curbing consumption and China’s economic recovery, Beijing is interjecting in the largely unregulated process with new guidelines for issuing loans and collecting arrears.
- Central Chinese province Hunan to play big role in helping boost African farming and industrial gains — Hunan vice-governor Cao Zhiqiang leads delegation of officials and company representatives to trade show in Nairobi where nearly US$300 million in deals are signed.
- Chinese EV maker Nio pledges to avoid price war to maintain premium aura, even after launching mass-market brand Onvo — Chinese electric vehicle (EV) maker Nio plans to stay on the sidelines amid a bruising price war in the sector, even after it launched a new mass-market brand to target budget-conscious consumers.
- Vibrant? Food and shopping paradise? Hong Kong should identify its target audience before fulfilling Beijing’s calls for treating every corner as tourist hotspot, experts say — Clear repositioning will be more helpful in boosting tourism instead of holding monthly fireworks shows, university assistant professor says.
- ByteDance appoints new CEO for Moonton studio as it consolidates video gaming business — ByteDance, which has been scaling back its video-gaming operations in recent months, has named a new CEO for Moonton Technology, the creator of Mobile Legends: Bang Bang.
Nikkei Asia
- China would have reason to monitor Wyoming ICBM base, experts say — Analysts told Nikkei Asia that China had every reason to try to observe up close the historic modernization of land-based strategic nuclear weapons that the U.S. is about to undertake.
- China asks carmakers to use up to 25% local chips by 2025 — The Chinese Ministry of Industry and Information Technology has asked automakers including SAIC Motor, BYD, Dongfeng Motor, GAC Motor and FAW Group to increase their local procurement of automotive-related chips to 20% or 25% by next year.
- Baidu launches robotaxi that costs less than half of earlier model — An RT 6 costs Baidu 200,000 yuan ($27,702) to procure, down more than 50% from the fifth-generation model co-developed with Beijing-based BAIC Group.
- Eisai to offer Alzheimer’s drug in China from July — Co-developed by Eisai, lecanemab is the first drug shown to be effective in slowing the progression of symptoms of Alzheimer’s disease.
- Opinion: China is burning all its bridges with Israel — Desire to be seen as champion of Global South drives policy tilt. By Derek Grossman.
Bloomberg
- China Sells Record Sum of US Debt Amid Signs of Diversification — Beijing offloaded a total of $53.3 billion of Treasuries and agency bonds combined in the first quarter, based on Bloomberg calculations of the latest data from the US Department of the Treasury.
- JD.com Sales Quicken After Dangling Perks to Woo China Shoppers — JD.com Inc. reported a 7% rise in revenue after it slashed prices and ramped up shopper perks to counter fierce market competition and a Chinese downturn.
- China’s Top Coal Province to Raise Output to Boost Local Economy — Major miners in China’s biggest coal hub plan to raise output to rescue the local economy, which could help reverse this year’s rare drop in national production, according to the industry’s top association.
Reuters
- As US hikes China tariffs, imports soar from China-reliant Vietnam — The Southeast Asian country last year posted a surplus with Washington close to $105 billion – 2.5 times bigger than in 2018.
- What is Putin and Xi’s ‘new era’ strategic partnership? — Russian President Vladimir Putin and Chinese President Xi Jinping agreed on Thursday to deepen their “strategic partnership” while scolding the U.S. for a series of moves that they said threatened their countries.
- Opinion: China iron ore imports likely at peak, demand composition to shift — While China will remain the biggest buyer of seaborne iron ore, its dominance will slip somewhat as other steel producers emerge in Asia, especially in India and Southeast Asia. By Clyde Russell.
- Opinion: China goes on a $1 trln apartment-buying spree — It’s an ambitious undertaking that represents a shift from earlier piecemeal efforts to prop up housing prices. By Chan Ka Sing.
Other Publications
- Foreign Affairs: How Will Taiwan’s New President Handle China? — Lai Ching-te’s Precarious Balancing Act.
- AP: China and Cambodia begin 15-day military exercises as questions grow about Beijing’s influence — About 1,315 Cambodian military personnel and 760 Chinese are participating in the regular “Golden Dragon” ground and sea maneuvers.
- The Economist: The property firm that could break China’s back — If Vanke collapses, so might confidence in the state’s management of the economy.
- The Economist: Xi Jinping is subtler than Vladimir Putin—yet equally disruptive — How to deal with Chinese actions that lie between war and peace.
- CSIS: Mineral Demands for Resilient Semiconductor Supply Chains — The Role of the Western Hemisphere.
- Semafor: How China is building the next big green industry — Chinese companies are racing to turn “black mass” into black gold, but the market remains largely unregulated and lessons are still being learned.
