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 Beat Back Covid-19, but It’s Come at a Cost—Growing Inequality — Fallout from the coronavirus pandemic is widening the gap between haves and have-nots in China, a trend that could bring social tensions and undermine the country’s stronger-than-expected economic recovery.
- More Corporate Bonds Are Rated Triple-A in China Despite Coronavirus Pandemic — China’s credit-rating firms are doling out more triple-A bond ratings, a trend that has continued this year despite the coronavirus pandemic and greater borrowing by companies in the world’s second-largest economy.
- Cathay Pacific Slashes Workforce as Travel Forecasts Remain Bleak — Hong Kong’s flagship carrier will cut its workforce by a quarter and close a subsidiary airline as it seeks to stem losses from a coronavirus-induced downturn that is expected to devastate the aviation industry for years.
- The Bidens and China Business — The story won’t go away without explanation, even if the Veep wins.
- U.S. Spy Agency Warns That Chinese Hackers Target Military, Defense Industry — The National Security Agency warned that Chinese government hackers were taking aim at U.S. computer networks involved in national defense, characterizing the threat posed by Beijing as a critical priority in need of urgent attention.
- U.S. Should Recognize Taiwan as Sovereign — As long as the U.S. continues the absurd One China policy, we cannot make a treaty of defense with the Republic of China.
- Intel Sees Opportunity in U.S.-China Tensions’ Impact on Supply Chains — While China is a big market for the company, CEO Bob Swan said he also aims to expand its role in 5G infrastructure as the U.S. and other countries have limited Huawei’s involvement in their next-generation wireless networks.
- Aluminum Prices Surge as Chinese Demand Accelerates — The price rise comes as investors bet strong Chinese buying and improving industrial demand will see the metal catch up with its base-metal peers.
The Financial Times
- Renminbi’s rise stokes pressure on Beijing to act — Robust economic recovery after virus pandemic fuels Chinese currency’s rapid appreciation to highest in 2 years.
- China-US shipping costs soar on pandemic restocking — American companies seek to rebuild depleted inventories ahead of holiday shopping season.
- China’s Covid-19 vaccine diplomacy steals a march on US — Beijing has promised to help developing world but regulatory and logistical hurdles loom.
The New York Times
- India Returns a Chinese Soldier Who Got Lost Looking for Yaks — After months of tension that turned violent at times, the release signaled a respite in a dispute that has led to a buildup of forces along the disputed mountainous border.
- Trump Records Shed New Light on Chinese Business Pursuits — As he raises questions about his opponent’s standing with China, President Trump’s taxes reveal details about his own activities there, including a previously unknown bank account.
- Elliott Broidy Pleads Guilty in Foreign Lobbying Case — A former fund-raiser for President Trump admitted to a role in a covert campaign to influence the administration on behalf of Chinese and Malaysian interests.
Caixin
- Chasing Individual Investors, Vanguard Ditches Chinese State Clients — U.S.-based asset management giant recently returned $21.6 billion to three state-controlled entities as it shifts its global strategy.
- The Post-Covid Trading Floor Is Here — With Buffet Lunches, No Masks — Shanghai’s financial industry returns almost to normal, offering a possible glimpse into the future for London and New York.
- Chinese Car Dealership Tycoon Ordered to Divest Auto Finance Unit — Billionaire Wang Muqing’s Dongzheng Automotive Finance suspended from dealer loan business because of imprudent business operations.
- China’s Fiscal Revenue Started Growing Again in Third Quarter — Despite overall increase, tax income still shrank 6.4%, far less than the 11.3% drop in the first half-year.
- China’s Large SOEs Return to Normal Level of Revenue Growth — Centrally administered state-owned enterprises post 1.5% revenue growth in third quarter as profits rise 3.4% amid economic rebound from pandemic.
- In Blow to Fosun Pharma, Its German Partner to Make Covid-19 Vaccine for China Market — Chinese company had previously been pushing to produce BioNTech’s vaccine locally.
- Beijing to Inexperienced Companies: Stay Out of Chipmaking — State planner says it will hold heads of failed projects accountable.
- Analysis: Intel’s Memory Sale Leaves China’s Chip Aspirations Out in the Cold — Chinese buyers may have expressed interest in $9 billion deal, but chip giant would have shunned such bids over concerns about a veto from Washington.
- China Mobile’s Performance Improves With 5G Ramp-Up — Nation’s dominant mobile carrier saw revenue growth accelerate to 4.1% in the third quarter, up from just 0.1% in the first half of 2020.
- Alibaba Takes 6.1% Stake in Swiss Duty-Free Retailer Dufry — E-commerce giant’s $179 million investment is part of $900 million Dufry share placement to bolster finances following pandemic setbacks.
- Pakistan Lifts TikTok Ban and the Fans Come Running Back — Pakistan’s recent ban on TikTok services has been far shorter-lived for the Chinese social media app than similar actions taken by the U.S. and India. Some are crediting that rapid reversal at least partly to Islamabad’s long-running ties with Beijing.
- SBCVC-Backed Dingdang Kuaiyao Nets $150m in Series B+ Round — SoftBank China Capital (SBCVC)-backed Chinese online-to-offline medicine platform Dingdang Medicine Express (Beijing) Technology Co., Ltd, also known as Dingdang Kuaiyao, has secured 1 billion yuan ($150 million) in a Series B+ round of financing, according to a company statement on Tuesday.
- Dao Foods Taps Alternative Protein Space, to Back Up to 30 Chinese Startups in 3 years — Cross-border impact investment firm Dao Foods International has invested in four Chinese plant-based startups, as the company joins a rising number of investors seeking to cash in on the nascent yet rapidly-growing alternative protein industry in the world’s largest meat consumption market.
- ‘Honor of Kings’ Reclaims Crown as World’s Highest-Earning Mobile Game, Besting PUBG — “Honor of Kings”, a fantasy multiplayer role-playing battle game developed by Chinese internet giant Tencent, overtook “PlayerUnknown’s Battlegrounds” (PUBG Mobile) as the world’s highest-earning mobile game in September, helped by huge popularity in its home China market.
South China Morning Post
- US will expand arms sales to ‘like-minded nations’ to counter China, Russia, defence chief says — US Defence Secretary Mark Esper says the United States will expand arms sales to “like-minded nations” to counter efforts by China and Russia to take a bigger share of the weapons market.
- US-China relations not doomed for a ‘dead end’ under Biden presidency, says prominent Chinese academic — Relations between China and the United States are not doomed for a “dead end”, despite escalating hostilities between the world’s two largest economies, a prominent Chinese academic has said.
- Vending machines enjoy a boom in Hong Kong as coronavirus drives sales of face masks, instant meals — While traditional retailers are struggling to survive by scaling down or shutting their Hong Kong stores, vending machines are enjoying something of a boom.
- Climate change: China’s goal to be carbon neutral by 2060 will cost US$15 trillion, report says — China will have to invest up to 100 trillion yuan (US$15 trillion) over the next three decades and instigate sweeping technological changes to its energy structure change if it is to achieve its target of being carbon neutral by 2060, according to an industry report.
- Alibaba intensifies China retail rivalry with Tencent on back of US$3.6 billion Sun Art deal — Alibaba Group Holding’s recent US$3.6 billion deal to take control of Sun Art Retail Group, China’s largest hypermarket operator, has intensified its competition with Tencent Holdings to transform the country’s vast trillion-dollar retail market.
- Beijing diplomats brush away K-pop Korean war controversy, saying relations are harmonious — Chinese diplomats have denied reports that Beijing has restricted imports of products related to K-pop band BTS and instead stressed the peace and friendship between China and South Korea.
- China’s US dollar debt market showing cracks from US sanctions and prospect of more — As US-China tensions show no sign of abating, the threat of new Washington-imposed tariffs and sanctions on Chinese firms are starting to reveal cracks in China’s US dollar corporate bond market.
- China’s P2P ‘financial refugees’ face never ending wait to recover lost US$120 billion — An exporting company owner in his 40s in the eastern province of Zhejiang, a public relations manager in her 20s in the southern city of Shenzhen and retired state-owned enterprise executive in eastern-central coastal province of Jiangsu would normally share little in common as they blend into China’s 1.4 billion population.
- US-China decoupling: is Beijing ramping up its diversification away from the US dollar? — China may be speeding up the diversification of its foreign exchange reserves away from US dollar assets in response to potential American financial sanctions, but there are clear limits on how far it can go in its de-dollarisation push, according to analysts.
Bloomberg
- China Warns Swedish Companies Could Suffer From Huawei Ban — The Chinese foreign ministry warned Sweden that it should revoke its ban on Huawei Technologies Co. to avoid hurting prospects for Swedish companies.
- U.S. Says Has Evidence of Forced Labor in Chinese Sweetener — The U.S. said it found “conclusive evidence” that a Chinese company used forced labor to make extracts of the sweetener stevia, with American ports now directed to seize any shipments.
- Jack Ma’s Ant Receives China Approval for IPO in Shanghai — Jack Ma’s Ant Group Co. got the green light from China’s securities watchdog for its initial public offering in Shanghai, clearing another hurdle as the Chinese fintech giant tries to complete its share sale before the U.S. election.
- China Central Bank Governor Says Debt Ratio to Stabilize in 2021 — China will likely post positive economic growth for the full year and the leverage ratio is expected to stabilize in 2021 after debt climbed in the wake of the coronavirus pandemic, the central bank governor said.
- Former China Unicorn Backed by Goldman Weighs $1,300 Sale — Renrenche was one of China’s hottest tech unicorns backed by investors including Goldman Sachs Group Inc. and Tencent Holdings Ltd. Now the car website could sell itself for a little over $1,000.
- Strongest Yuan in Two Years Tests China’s Tolerance for Gains — Traders are testing China’s tolerance for a strong yuan, which keeps rallying no matter what officials do to rein in appreciation.
- Ericsson Reports Profit, Market Share Gains After Huawei Ban — Ericsson reported stronger-than-expected profit as the network equipment vendor gained market share, particularly from non-Chinese rivals, after government restrictions on gear from Huawei Technologies Co..
- Bulgari to Focus on Local Customers as Covid Wipes Out Tourism — Bulgari is increasing its focus on sales to locals in the countries where it operates, particularly in China, as the pandemic wipes out the tourist market, Chief Executive Officer Jean-Christophe Babin said.
- Huawei, China Firms Said to Seek Curbs on Nvidia’s Arm Deal — Chinese technology companies including Huawei Technologies Co. have expressed strong concerns to local regulators about Nvidia Corp.’s proposed acquisition of Arm Ltd., people familiar with the matter said, potentially jeopardizing the $40 billion semiconductor deal.
- ‘Five Eyes’ Spy Alliance Trains Focus on Xi in Echo of Cold War — The Western world’s premier spy alliance is finding its mission expanding as nations from the U.S. to Australia clash with China and seek better intelligence on everything from Covid-19 to child trafficking.
- Wheat’s Drought Battle and Surging Demand: Why Prices Are Flying — From Russian farmers literally steamrolling seeds into parched fields to China’s rising demand, the reasons for wheat’s rally to a six-year high keep growing.
- NSA Steps Out of Shadows to Spotlight Where China Hackers Prowl — The U.S. National Security Agency detailed 25 cyber vulnerabilities frequently used by Chinese state-sponsored hackers in an effort to alert computer security officials to update their systems.
Reuters
- UK says China seeking biggest maritime fleet in the world — Britain’s defence minister said on Wednesday that China was seeking to build the world’s biggest surface and subsurface maritime fleet.
- Brazil’s Bolsonaro says his government will not buy China’s Sinovac vaccine — Brazil’s President Jair Bolsonaro said on Wednesday that his government will not buy China’s Sinovac vaccine against COVID-19, one day after the health minister said it would be included in the nation’s immunization program.
- China’s 2020 auto production and sales could return to 2019 levels: government official — China’s 2020 auto production and sales may possibly be close to last year’s levels should they keep growing in the fourth quarter, an official from the country’s state planner said on Wednesday.
- Exclusive: Australian writer detained in Beijing told supporter he was a former Chinese spy — Yang Hengjun, an Australian writer detained in Beijing and facing trial for espionage on behalf of a country China hasn’t publicly named was a former Chinese spy, according to a confidential letter he wrote to a supporter in 2011.
- Timeline: Australian writer faces espionage trial in China — An Australian writer detained in Beijing and facing trial for espionage is a former Chinese spy, according to a confidential letter he wrote in 2011.
- China will improve economic assessment of property finance — China will reveal a list of systemically important banks and detailed related regulations in near term, central bank vice governor Pan Gongsheng said on Wednesday.
- China to balance stable growth and risk prevention: central bank — China will strike a balance between stabilising economic growth and preventing risks, even as debt was allowed to temporarily rise this year to support the coronavirus-hit economy, the head of the central bank Yi Gang said on Wednesday.
- China debt crackdown: regulators asking property developers for more details than expected — Chinese regulators are asking property developers to provide more details about their debts than markets had expected, as authorities look to tackle unbridled borrowing in the real estate sector, according to a document seen by Reuters.
- China’s blueprint to stockpile copper expected in five-year plan — The prospect of China buying copper for its stockpiles is filtering through the market ahead of a meeting of the country’s leaders to discuss its next five-year economic and social development plan.
- China’s fiscal revenues rise 4.7% in third-quarter as economy gains steam — China’s fiscal revenues grew 4.7% in the third quarter from a year earlier, reversing a 7.4% drop in the previous quarter, the finance ministry said on Wednesday, as the country’s economic recovery picked up pace.
- China says environment still grim despite five years of progress — China’s environment conditions are “grim”, falling short of public expectations even after five years of efforts to improve air quality, boost clean energy and curb greenhouse gas emissions, a senior official said on Wednesday.
- Venezuela plans to use Russian and Chinese coronavirus vaccines — Venezuela plans to vaccinate citizens with Russian and Chinese coronavirus vaccines, which could arrive in the South American nation in December or January, President Nicolas Maduro said on Tuesday.
- ‘Genshin Impact’ revenues soar as China gaming goes global — Free-to-play fantasy game “Genshin Impact” from Shanghai-based developer Mihoyo is proving a hit beyond its home market, raking in money with a controversial payment system and creating a potential breakout moment for China’s gaming industry.
Xinhua
- China sees recovering toy export market — China, the world’s biggest toy exporter, has seen a recovering classical toy export market since July, as the country is striving to resume production following its containment of COVID-19.
- UN trade body projects 7-9 pct year-on-year drop in 2020 global trade — A United Nations report on Wednesday forecast a 7 percent to 9 percent year-on-year drop in the value of global trade in 2020, despite signs of a weak rebound in the third quarter led by a recovery in China.
- Economic Watch: China extends economic recovery lead quarter by quarter — China has embraced its best quarterly economic performance of the year in the third quarter (Q3), rendering a 0.7-percent year-on-year expansion for the first nine months as the first major economy to return to growth following the economic fallout of COVID-19.
- Foreign trade rises in first three quarters in China’s Hunan — Foreign trade rose in the first three quarters of the year in central China’s Hunan Province, customs data showed Wednesday.
- China’s central bank injects liquidity into market — China’s central bank pumped cash into the banking system through open market operations to maintain liquidity Wednesday.
- East China province to expand digital economy scale — East China’s Shandong Province plans to ramp up efforts to bring its digital economy to a world-class level by 2030, according to a press briefing held in the capital city of Jinan on Monday.
- Chinese shares close lower on Wednesday — Chinese stocks closed lower on Wednesday, with the benchmark Shanghai Composite Index down 0.09 percent to 3,325.02 points.
Other Publications
- AP: China’s BYD, Japan’s Hino announce electric truck venture — Chinese electric car brand BYD Auto and Japanese truck maker Hino Motors said Wednesday they are jointly setting up a company to develop battery-powered trucks and buses.
- NYMag: China Is Now the Amazon of Geopolitics — The COVID-19 pandemic began in China, but after putting into place harsh lockdown measures in the winter and spring, the country has found its economic footing as most of the rest of the world continues to struggle. On the latest episode of the Pivot podcast, Kara Swisher and Scott Galloway discuss China’s rebound and what Asia’s relative success at controlling the coronavirus means for the global economic future.
- Nikkei Asian Review: China set to keep up 5% growth through 2035, Xi adviser says — Hu Angang expects fast-evolving tech sector to buoy economy.
