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 Leaders Point to Economic Threats but Show No Sign of Changing Tack — Xi Jinping and top officials offer rare nod to risks, without pointing to major overhauls.
- Chinese Migrants Tap Extensive Networks to Join the U.S. Economy — Historic enclaves help recent migrants, as more enter U.S. without visas.
- Volvo Car Warns of Sales Hit From EU Duty on Chinese EVs — The group now expects retail sales to grow by 12% to 15%, compared with the previous target of at least 15%.
The Financial Times
- PwC loses two-thirds of accounting revenues from clients listed in mainland China — Firm tells partners to ‘stay calm’ as exodus of companies prompts lay-offs and cost cuts.
- Chinese official calls for ‘proactive’ stimulus to distribute growth across economy — Communist party’s deputy director for economic affairs points to ‘divergence’ between regions and low consumption.
The New York Times
- Are China’s Greenhouse Gas Emissions Plateauing? — Analysts are seeing promising signs from the world’s biggest emitter of greenhouse gases.
Caixin
- Global Beauty Giants Smell Opportunity in China’s Fragrance-Makers — Global beauty giants are increasing their investments in high-end Chinese perfume brands as they eye a luxury segment that has become a bright spot amid a broader slowdown.
- TSMC Chairman Rules Out Joint Venture in U.S. Amid Rising Geopolitical Tensions — The chairman of Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) has confirmed that the company will not be establishing a joint venture in the United States but will maintain its current overseas expansion and operational plans.
- EU Non-Binding Vote on Chinese EV Tariffs Shows Members Are Divided — Only 10 of the 27 members of the European Union voted to support provisional tariffs on electric vehicles (EVs) shipped from China in a non-binding vote, the China Chamber of Commerce to the EU confirmed from several sources Wednesday.
South China Morning Post
- Microsoft outage leaves China largely untouched as tech self-sufficiency campaign pays off — The Microsoft Windows outage that affected foreign businesses and luxury hotels in China on Friday left the country’s key infrastructure unaffected.
- Chinese team’s solar-powered drone is lighter than paper plane, offers sustained flight — Article in Nature cites breakthrough by Beihang University team as capable of forging ‘a path to new kinds of tiny aerial vehicles’.
- What do investment banks think of the Chinese Communist Party’s long-overdue third plenum? — The stock market was let down in its search for short-term fixes, as the benchmark index declined in Hong Kong after the communique. The yuan extended the deprecation against the US dollar and the yield on China’s government bonds drifter lower.
Nikkei Asia
- China listed developers with 100bn yuan in 1st-half sales dwindle to 5 — Evergrande, Country Garden sink; military-backed Poly rises with state peers.
- China plenum met with falling Hong Kong stocks, mixed mainland shares — Key policy meeting receives lukewarm response as some rue ‘missed opportunity.’
- Delistings outnumber IPOs by value in Hong Kong so far this year — China slowdown is factor cited by companies with plans to go private.
Bloomberg
- China Stock Traders Move on From Plenum With Few Reasons to Buy — A twice-a-decade conclave that’s often heralded major policy shifts in China has this time left stock buyers with few catalysts, setting back hopes of a rebound in the world’s second-largest equity market.
- Copper Set for Worst Week Since 2022 as China Plenum Disappoints — Copper headed for its worst weekly loss since 2022 and iron ore extended a slump toward $100 a ton as a policy meeting in China failed to lay out more stimulus to shore up metals demand.
- Chinese Investors Dump Record Amount of US Stocks and Bonds — Chinese investors sold a record amount of US stocks and bonds in May as diplomatic tensions remained elevated between the world’s largest economies.
- Trump Welcomes China to Build Cars in US in Departure From Biden — Former President Donald Trump has reiterated an openness for Chinese automakers to build cars in the US as a way to boost the economy, signaling a potentially different approach from a Biden administration that has sought to keep out vehicles with links to the country.
Reuters
- Chinese officials expect bumpy ride for economy after policy meeting — Chinese officials acknowledged on Friday the sweeping list of economic goals re-emphasised at the end of a key Communist Party meeting this week contained “many complex contradictions,” pointing to a bumpy road ahead for policy implementation.
- China’s stubborn savers ignore inducements to spend as growth slows — Chinese consumer spending has failed to respond to government measures even though household deposits are slowing and banks have slashed interest rates, a sign risk-averse residents prefer to repay debt and buy wealth management products.
- China likely to maintain lending rates even as economy slows — China is expected to leave benchmark lending rates unchanged on Monday, while more market participants project further monetary easing to aid the economy following weaker-than-expected second-quarter economic data, a Reuters poll showed.
Other Publications
- The Economist: China’s ruling party sets out its vision of economic reform — The party sees no need for a decisive break with the past.
- The Atlantic: Trump Signals Weakness to Xi Jinping — He’s all but said he wouldn’t defend Taiwan from a Chinese invasion. What else would he give up to Beijing?
- Associated Press: The winner in China’s panda diplomacy: the pandas themselves — China’s panda diplomacy may have one true winner: the pandas themselves.
- Foreign Policy: Into the Minds of China’s Military AI Experts — Beijing faces challenges in deploying new technology.
- Quartz: Nvidia could find a key part of its China business blocked — The H20 chip, which Nvidia designed to not require an export control license, could be banned, Jeffries analysts said.
- CNBC: China’s cooking oil scandal prompts residents to buy oil presses amid food safety concerns — China’s authorities have launched an investigation after a local report revealed that a major state-owned company had been employing tankers used for carrying fuel to transport cooking oil.
- POLITICO: Von der Leyen vows to stop China from invading Taiwan — The US warned of Beijing’s readiness to invade by 2027, which would be during the five-year mandate the Commission president is seeking.
