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
- German Carmakers Report Sales Drop and Diverging EV Fortunes — Mercedes-Benz, BMW and Volkswagen all posted declines in overall vehicle sales and saw demand drop in China in the second quarter, but experienced diverging fortunes in the hotly contested electric-vehicle market.
- Alibaba Leans Into AI to Draw Shoppers Beyond China — China’s e-commerce juggernaut Alibaba Group is reigniting a yearslong effort to expand overseas as it seeks to offset a weakened grip on online retail at home.
- Tesla’s Full Self-Driving Rivals Are in China — Fierce competition to attract wealthier customers with the latest technology is driving rapid advances in Chinese self-driving systems.
- Russia Seeks to Boost Trump in 2024 Election, U.S. Intelligence Officials Say — Other foreign-influence operations in the U.S. include attempts by Iran to covertly encourage protests against the war in Gaza, officials say.
- China Consumer Inflation Stays Tepid, Factory-Gate Prices Continue to Fall — The figures are coming as no surprise for many economists, who are expecting inflation to stay low throughout the year.
- China Vanke Expects to Post Losses in First Half — China Vanke expects to report a loss in the first half as the continuing crisis in the country’s real-estate sector continues to weigh on developers.
- Modi’s Moscow Visit Spotlights India’s Tricky Balancing Act on Russia — Indian prime minister posts pictures hugging Putin while also publicly chastising Russian leader over attack on children’s hospital in Kyiv.
The Financial Times
- China’s consumer price growth weakens ahead of Communist party economic meeting — Factory deflation eases but Beijing’s reliance on exports and industrial output is stoking trade tensions.
- China’s central bank arms itself for rare bond market intervention — People’s Bank of China tries to stem rush into sovereign debt amid weakening economy.
- Shein to launch €200mn fund to tackle fashion waste as it awaits IPO approval — Fast-fashion group faces allegations over its supply chain and lack of sustainability.
- Opinion: Baidu’s robotaxi growth could be clipped by human rivals — Chinese group’s Apollo has drawn strong opposition from local taxi drivers. By Lex.
The New York Times
- As Violence Surges, Can Pakistan Protect Its Chinese Projects? — China has invested billions in megaprojects across Pakistan. But a resurgence in militant violence is threatening to derail badly needed investment.
- WADA Clears Itself in Chinese Doping Case — A special prosecutor said the decision not to pursue punishments against a group of Olympic swimmers was “indisputably reasonable,” even though agency scientists had expressed doubts.
Caixin
- Global Investors in Mainland Swap Market Permitted to Use Onshore Bonds as Collateral — Authorities expect move will reduce the cost of trading in China’s derivatives market.
- Mass IPO Retreat in China as Stricter Listing Standards Come Into Force — Companies seeking a main board listing must show annual profits of $13.75 million to qualify.
- Tourists Flood Into China on Expanding Visa-Free Scheme — Trips by foreigners to the country jumped 153% to 14.6 million in the first six months of this year, more than half of which were visa-free.
- AI’s Impact on China’s Music Business Has Yet to Top the Charts — Chinese companies are using the tech in more of a supporting role, as AI-generated hits remain out of reach.
- Why China Needs a New Green Power System and How it Could Work — Renewables are reshaping China’s power generation, but its pricing system is designed for fossil fuels. Things must change.
South China Morning Post
- Why China ties will hold firm under Iran’s new reformist president — Balancing act more likely under Masoud Pezeshkian, observers say, given sanctions-hit Iran’s trade and geopolitical dependence on China.
- Are EU trade barriers on China fair? Beijing’s new probe demands answers after bloc action — An investigation is underway, and Chinese authorities will get answers with questionnaires, public hearings and field inspections in the months to come.
- ByteDance, Alibaba, SenseTime lead generative AI infrastructure services market in China — High demand for these infrastructure services providers reflects how mainland China has swiftly become a world leader in the adoption of generative artificial intelligence.
Nikkei Asia
- Central Asian railway to offer new link between China, Europe — China, Uzbekistan and Kyrgyzstan signed an agreement last month on a railway project connecting the three countries, with construction slated to begin in October.
- China cooking oil scandal sparks a scramble to reassure consumers — An undercover report alleged that it is an “open secret” that “to save costs,” tankers used to transport fuel and chemicals are also used to move cooking oil and syrup without any cleaning.
- Chinese lithium majors sink into red despite EV growth — Tianqi Lithium and Ganfeng Lithium, two of the major Chinese producers of the indispensable metal, separately announced that they slipped deep into the red in the first six months of this year.
Bloomberg
- US Favored Over China in Dozens of Countries, Pew Survey Says — The US had a largely more favorable image than China in 35 high- and middle-income countries surveyed by the Pew Research Center, showing Beijing’s effort to win hearts and minds globally still has a ways to go.
- PwC Starts Mass China Layoffs After Losing Dozens of Clients — PricewaterhouseCoopers LLP is cutting staff across its China operations, according to people familiar with the matter, after an exodus of corporate clients diminished the accounting firm’s revenue prospects in the country.
- Beijing Legislates for Robotaxis Amid Growing Backlash — Beijing will support the introduction of robotaxis in ride hailing and car rental fleets in the city as advanced driver assistance systems become more commonplace in China.
Reuters
- China dials up scrutiny of Big Four audit firms — The tighter scrutiny, which has not been previously reported, is mainly focused on Deloitte, EY, PwC, KPMG and their audits of some financial firms as well as highly leveraged companies, said sources.
- Beijing eyes more investments from Saudi sovereign wealth fund — Beijing’s diplomatic push to court U.S. ally Saudi Arabia comes amid its frustration over what it sees as Washington’s weaponisation of economic policies.
- China’s exports seen rising more quickly in June amid fresh tariff fears: Reuters poll — Imports likely grew 2.8% last month, faster than the 1.8% gain seen in May, suggesting factory owners are buying more parts to be turned into finished goods for export.
Other Publications
- AP: China’s landfills brim with textile waste as fast fashion reigns and recycling takes a back seat — Textile waste is an urgent global problem, with only 12% recycled worldwide, according to fashion sustainability nonprofit Ellen MacArthur Foundation.
- The Washington Post: Biden wants to cut U.S. need for Chinese cranes; ports fear higher costs — A state-owned Chinese manufacturer is dominating U.S. and global markets.
- The Atlantic: China’s New Great Wall — Xi Jinping’s nationalist and security-led policies are isolating the country from the world. That benefits no one—least of all his own people.
- MIT Technology Review: The Chinese government is going all-in on autonomous vehicles — While other countries hold back over safety concerns, it’s going full steam ahead.
