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
- Meet the Shirt Maker Who Loves U.S. Tariffs — While American importers are decrying the levies on Chinese goods, U.S. manufacturers say they level an uneven playing field.
- North Korea’s Fiery Spy-Satellite Test Shows More Than Failure — Pyongyang makes a debut attempt to use propellant technology used by space powers like the U.S. and China.
- Shein’s Quest to Win Over America Gets Stuck in U.S.-China Tensions — The fast-fashion giant aimed to bridge the divide between Beijing and Washington, but hopes for a splashy U.S. public offering have faded.
- China Courts U.S.’s Top Asian Allies on Trade, but Will It Succeed? — Despite Beijing’s calls to avoid protectionism, the three countries didn’t reach any concrete initiatives.
- China Raises $48 Billion for Semiconductor Fund — Beijing is aiming to increase its chip-making capabilities in the face of an escalating technology competition with the U.S.
- America Is Getting Ready for Space Warfare — Pentagon officials are opening up about potential threats as China’s presence in orbit grows and Russia shows interest in gear that can destroy satellites.
- China Evergrande’s EV Unit Shares Soar on Potential Investor Support — Shares of China Evergrande Group’s electric-vehicle unit surged, fueled by optimism that some businesses may survive despite the property giant’s liquidation.
- China’s Industrial Profit Rose as Stimulus Measures Kicked In — Industrial profit rose in April, reversing a decline from the previous month, as Beijing’s stimulus measures started to kick in and foreign demand for Chinese products improved.
- America’s New Island Fighters Are Preparing for Conflict—a Stone’s Throw From Taiwan — Marines are preparing for a potential real-world conflict, fine-tuning a strategy they see as critical to fighting China in its neighborhood—from strings of islands close to it.
The Financial Times
- Uniqlo confronts China’s newly thrifty middle class — Japanese fast-fashion retailer has slowed store openings in world’s second-largest economy.
- China raises $47bn for chip industry in drive for self-sufficiency — ‘Big Fund’ completes its largest round to date with makers of equipment for chip factories expected to be main beneficiaries.
- China hails ‘new beginning’ at summit with Japan and South Korea — Beijing, Seoul and Tokyo agree to revive talks on free trade deal.
- Taiwan president calls on US lawmakers for help to strengthen defences — Request follows Chinese military exercises days after new leader’s inauguration.
- Chinese industrial profits return to growth — April rise underlines authorities’ efforts to boost manufacturing.
- China warns South Korea against politicising trade before Japan talks — Supply chains are ‘deeply intertwined’, says Premier Li Qiang ahead of summit.
- Taiwan in political turmoil as China steps up military intimidation — Opposition seeks to curb new president’s administration while Beijing sends fighters, bombers and navy to patrol around island.
- China’s online ‘Kim Kardashian’ banned for being too ostentatious — Beijing cracks down on social media influencers known for extravagant outfits and displays of wealth.
- Western companies drive Chinese biotech licensing deal blitz — Merck, GSK and AstraZeneca have all signed deals.
- Pentagon chief seeks to woo Cambodia from China with Phnom Penh visit — Meeting with Prime Minister Hun Manet comes as Washington hopes US-educated leader will distance country from Beijing.
- British-Chinese bitcoin money launderer jailed for over 6 years — UK case centres on one of the biggest bitcoin hauls by a law enforcement agency in the world.
- Opinion: China needs to look beyond real estate for sources of growth — There is still substantial unmet demand in sectors such as education and healthcare. By Xu Qiyuan.
- Opinion: How Chinese EV makers will respond to steep US tariffs — Manufacturers are likely to target expansion in Europe with luxury models that offer new features to consumers. By June Yoon.
- Opinion: No, trade surpluses aren’t caused by comparative advantage — Revisiting Ricardo. By Michael Pettis.
The New York Times
- Business-First Hong Kong Now Comes With a Catch: Beijing Politics — The city, promised some autonomy by China, is trying to move on from a security law imposed by Beijing. Companies are learning that’s not always possible.
- Biden Doesn’t Want You Buying an E.V. From China. Here’s Why. — The president wants to shift America’s car fleet toward electric vehicles, but not at the expense of American jobs or national security.
- U.S. Lawmakers Visit Taiwan and Vow Support in Face of Chinese Military Drills — A bipartisan delegation promised to stand by the island’s newly elected president, Lai Ching-te, after Beijing surrounded the self-governing island with naval vessels and aircraft.
- China, Japan and South Korea Hold Talks Overshadowed by U.S. — In the first trilateral meeting since 2019, the neighbors sought common ground in trade and cultural exchange while tiptoeing around thorny security issues.
- How China Pulled So Far Ahead on Industrial Policy — The United States and Europe are trying to catch up to a rival skilled in using all the levers of government and banking to dominate global manufacturing.
- Spying Arrests Send Chill Through Britain’s Thriving Hong Kong Community — Tens of thousands of Hong Kongers have resettled in the U.K. since 2021, among them prominent pro-democracy activists. China has not forgotten them.
- G7 Finance Ministers Aim to Use Russia’s Frozen Assets to Help Ukraine — Western economic officials projected a united front, and braced for retaliation, as they prepped tougher sanctions and tariffs.
- Xi Jinping’s Recipe for Total Control: An Army of Eyes and Ears — Reviving a Mao-era surveillance campaign, the authorities are tracking residents, schoolchildren and businesses to forestall any potential unrest.
- Chinese Billionaire Accused of Fraud Didn’t Need the Money, Lawyers Say — Prosecutors put Guo Wengui on trial in New York for defrauding investors of $1 billion. His lawyers told jurors he was building an anti-Communist movement.
- Are These Drones Too Chinese to Pass U.S. Muster in an Anti-China Moment? — U.S.-based Anzu Robotics is selling drones using technology from DJI, a Chinese firm that is the target of efforts by lawmakers to limit Chinese technology in America.
Caixin
- It’s Curtains for China’s Local Financial Asset Exchanges — The trading platforms have become too much of a risk to financial stability, with many degenerating into channels for illegal financing.
- Pakistan to Revive Belt and Road Initiative Projects — The nation is looking at joint ventures for renewable energy projects, agriculture collaboration and possibly enticing Chinese companies to relocate to Pakistan.
- China’s Pension Plan Faces Prospect for Change or Going Bust — Demographic shifts make current system unsustainable as numbers of retirees climb.
- How China Is Overhauling Regulations on Genetic Resources — Amid rising global competition, the government moves to lift restrictions threatening to strangle the biotech industry.
- Chinese Foreign Ministry Promotes Long-Time Spokesperson to Vice Minister — Hua Chunying, director-general of the ministry’s press department, is the youngest of the five vice foreign ministers.
South China Morning Post
- China’s Xi Jinping issues call to arms: cultivate new sources of employment, quell ‘chaos’ in job market — President urges the record batch of upcoming graduates to seek employment in grass-root organisations, rural areas and small businesses, as greater emphasis is placed on supporting the private sector.
- Alibaba taps David Beckham as global brand ambassador for international e-commerce platform ahead of Euro 2024 — The English footballer will be featured in AliExpress commercials during the European Football Championship, which kicks off in mid-June.
- China’s C919, after a year of domestic flights, preps its pitch for Western endorsement — The C919, China’s home-grown commercial jet, has completed a year of passenger flights. Will it receive airworthiness certification from the Western countries currently sanctioning trade and tech in other fields?
- Tencent’s WeChat Pay expands coverage to the Maldives amid rebound of Chinese holidaymakers heading overseas — The Chinese internet giant aims to expand the coverage of WeChat Pay in the Maldives to 8,000 merchants by the end of this year.
- ByteDance and Kuaishou see exodus of top AI experts to new ventures as China’s unicorn boom looks for next OpenAI — The departure of AI experts from these Big Tech firms reflects increased investor interest in start-ups that could become the next OpenAI.
Nikkei Asia
- China’s BOE chases South Korean rivals in OLEDs with new factory — Construction began in late March on the B-16 site an hour’s drive northwest of downtown Chengdu, where prefabricated houses are arrayed for the roughly 10,000 workers scrambling to finish the project.
- Leading Asia in an age of tension: Premiers urged to skirt U.S.-China duel — Former Malaysian Prime Minister Mahathir Mohamad said Southeast Asian leaders would be better served largely ignoring China’s competing claims to most of the South China Sea, rather than taking a confrontational approach.
- Ex-China central bank chief ‘optimistic’ on ending property slump — Zhou expressed confidence that policy adjustments will end the crisis in the property sector. “We are going to overcome the existing difficulties,” he said.
- The line from Asia’s animation industry to North Korea — Sources in Asia’s animation industry say it is not unheard of for some studios, often subcontractors themselves, to outsource work to animators in North Korea to cut costs and save time.
Bloomberg
- China’s Falling Emissions Signal Peak Carbon May Already Be Here — China is spewing less carbon into the atmosphere for the first time since the pandemic ended, signaling that the world’s biggest polluter may have peaked emissions more than half a decade before its own deadline.
- Russian Firms Turn to Crypto for China Commodities Trade — Russian commodities firms struggling to execute financial transactions with Chinese counterparts have started tapping a new method for settling deals — stablecoins.
- Porsche Tries to Assure Chinese Dealers as EV Sales Falter — Porsche AG is in talks with Chinese dealers to smooth out relations as weaker sales of electric vehicles force the auto industry to rethink the transition away from combustion-engine cars.
- Opinion: America Needs More Attack Submarines to Stop China — The Pentagon says budget constraints are forcing it to buy only one Virginia class attack boat per year. By James Stavridis.
Reuters
- Post-COVID, China is back in Africa and doubling down on minerals — While new Chinese investment in Africa increased 114% last year, according to the Griffith Asia Institute at Australia’s Griffith University, it was heavily focused on minerals essential to the global energy transition.
- In China, Starbucks tries to avoid price war but gets dragged into discounting — Analysts, Reuters checks and Chinese consumers posting on social media point to an increase in discount coupons being offered by Starbucks through its own mini-programs, as well as via the coffee-maker’s livestreams on Douyin.
- ‘Asset famine’ in China curbs central bank’s bond trading ambitions — A scarcity of low-risk assets in China’s financial sector is obstructing the central bank’s plans to make its monetary policy toolkit more efficient.
Other Publications
- Foreign Policy: Can a U.S.-China Military Hotline Stop the Downward Spiral? — New communications channels between the superpowers are a hopeful sign.
- Foreign Policy: China Is Trying to Remake Uyghur Kitchens — Traditional food is painted as backward and dirty—except for tourists.
- The Guardian: Last major Arabic-style mosque in China loses its domes — Experts say changes to Grand Mosque of Shadian mark completion of five-year sinification campaign.
- POLITICO: Is the EU already in a trade war with China? — Even if they aren’t yet, things could soon get nastier as Brussels’ investigation into Chinese electric vehicles nears its conclusion.
