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
- Biden, as President, Will Shift U.S. Toolkit on China — President-elect to maintain a tough stance on Beijing, but plans to seek pressure from allies.
- China Exports Roar Ahead; Trade Surplus With U.S., World Widens — The country’s exports, which rose 11% in October from a year earlier, have defied market expectations for seven months straight.
- The Duty-Free Business Must Reroute to China — The pandemic continues to cripple travel-retail companies Lagardère and Dufry. Their next challenge is to get a cut of recovering Chinese spending.
- China Car Sales Keep on Trucking in Pandemic Recovery — Sales increased 8% in October from a year earlier.
- China’s Yuan Surges on Election Relief — The currency hit a level not seen since June 2018.
- Chinese Property Giant Evergrande Drops Unit Listing — Company previously wanted to take its Hengda Real Estate subsidiary public.
- Pfizer Receives Inquiry From SEC Bribery Unit — The request for information follows similar inquiries from regulators and federal prosecutors into the drugmaker’s China and Russia operations.
- Manufacturers Fare Better Than Many Service Providers in Covid-19 Economy — A recent rise in infections in much of the West risks worsening a divide in how countries and industries are weathering the crisis.
The Financial Times
- Ant posed threat to China’s centralised control — IPO suspension may have lasting implications for fintech regulation.
- China expects less volatility but tough relations under Joe Biden — Beijing hopes ties will be more predictable despite hardline approach, say analysts.
- Ant faces tortuous path back to market as Beijing tightens rules — China’s agile fintechs expected to be treated more like closely controlled banks.
- Biden urged to avoid repeating Obama’s mistakes in Asia — Fears rise that problems at home will distract new president from flashpoints in North Korea and Taiwan.
- China demand for Europe’s luxury goods lifts virus-hit economy — Manufacturing and exports rebound in wake of strong Chinese recovery from pandemic.
- China’s export growth hits highest level in 19 months — October data highlights rising role in global trade during Covid-19.
- How Jack Ma lost his spot at China’s business top table — Regulators and rivals have been lobbying against Ant Group’s growing dominance in payments and lending for some time.
- BHP agrees low-carbon steel push with China’s biggest producer — Miner joins forces with Baowu to develop technology to reduce industry’s 10% share of global emissions.
- Australia tells exporters to find other markets after rise in China tensions — Canberra warns businesses that relations with Beijing are unlikely to improve soon.
The New York Times
- Apple Puts Key Contractor on Probation Over Labor Abuses in China — The technology giant said it had suspended future business with the iPhone assembler Pegatron pending corrective actions. The Taiwanese manufacturer broke rules limiting student employee work hours.
- Buffeted by Trump, China Has Little Hope for Warmer Relations With Biden — Many in Beijing believe that the United States will remain hostile to the country’s rise, regardless of who is president.
- Is Xi Jinping Too Strong for China’s Good? — Unlike any Chinese leader since 1949, he has no identifiable rivals and no likely successors.
- China Extends Reach in the Caribbean, Unsettling the U.S. — The region has strategic importance as a hub for logistics, banking and commerce. It is also very close to the United States.
- Chinese State Media Reacts to Biden Victory With Cautious Optimism — Propaganda outlets said a Biden presidency would most likely restore stability to frayed U.S.-China relations, but warned that tensions would continue.
- As Hong Kong Law Goes After ‘Black Sheep,’ Fear Clouds Universities — Campuses have long been hubs of protest in the city. Now, the authorities have promised to root out teachers who bring politics to the classroom.
- Biden to Face Long List of Foreign Challenges, With China No. 1 — President Trump will be handing Joseph R. Biden Jr. a difficult cleanup act in America’s relations with many countries. But it may not take much for Mr. Biden to improve the mood.
Caixin
- Only Four of China’s Hundreds of Online Microlenders Meet New Requirements — Ant Group is not the only firm to take heavy blow from draft regulations governing China’s booming online microlending industry.
- Bank Bailouts Must Be ‘Market-Oriented,’ Central Bank Says — Ideally, the relevant authority should have full knowledge of the risk base of the institution to be disposed of, Peoples Bank of China says in new report.
- China’s 3-Year Crackdown Leaves Just Three P2P Lenders Standing — Top banking regulator vows unified regulation including fintech after abuse-ridden P2P sector’s former 6,000 platforms sticks investors with $115 billion of unpaid debt.
- Bloomberg Launches Index for Chinese Bonds That Foreign Investors Usually Avoid — New Index aims to track highly liquid yuan-denominated bonds issued by companies, local governments and financial institutions.
- Better Than Expected Sales Send Electric-Car Makers’ Valuations Skyward — U.S.-listed Chinese automakers saw their share prices nearly double in the month to early November.
- Tim Hortons Eyes Techie, Mid-Range Coffee Drinkers in Rapid-Fire China Expansion — Well-known Canadian chain has more than 100 stores in China two years after entering the country, with plans for 1,500 by 2028.
- China Inks First Term Deal for U.S. LNG Since Trade War Erupted — Foran Energy said it signed a framework agreement with U.S. producer Cheniere Energy.
- Ikea’s Famous Swedish Meatballs Go Meat-Free in China — Affordable furniture retailer Ikea will start selling a plant-based version of its iconic Swedish meatballs at its China locations later this month as part of ongoing efforts to reduce greenhouse gas emissions.
- TikTok Invites U.K. Lawmakers to Review Content Moderation Over Ties to Beijing — TikTok’s U.K. branch has invited local lawmakers to review its algorithm and how it moderates content in an attempt to earn the trust of British policymakers who believe Beijing exerts influence on the short video app’s content moderation process, according to a report by CNBC.
- Sequoia-Backed Cloud Service Provider Yuntongxun Nets $125m in Series F Round — Beijing-headquartered cloud communication service provider Yuntongxun announced on Thursday that it has raised a total of $120 million in a Series F round led by the state-owned Capital Venture Investment Fund — a 200 billion yuan ($30 billion) fund co-launched in 2016 by China Reform Holdings Corporation, Postal Savings Bank of China, China Construction Bank, and Shenzhen Investment Holdings.
- It’s No TikTok, But China’s No. 2 Short Video App Beats Larger Rival to Market — It may be No. 2 to the better-known Bytedance short video app goliath that owns both Douyin and TikTok. But the company whose Chinese name means “fast hand” is living up to its name by beating its much larger rival to market.
South China Morning Post
- Swire Properties sells Cityplaza One office tower for HK$9.85 billion (US$1.27 billion) after its parent posted first interim loss in half a century — Swire Properties, one of Hong Kong’s largest owners of offices and shopping centres, has sold a 21-storey office building to a consortium of investors led by Gaw Capital Partners for HK$9.85 billion (US$1.27 billion), after its parent posted its first interim loss in half a century.
- China GDP: Xi Jinping says ‘completely possible’ to double size of economy by 2035, despite foreign hostility — President Xi Jinping has said it is “completely possible” for China to double the size of its economy, as well as per capita income, by 2035, painting a bright future for the nation despite an intensifying rivalry with the United States.
- China’s central banker remind the global markets that the yuan’s challenge to the US dollar is still very much on — Investors wondering how China plans to evolve its financial markets in the coming years need look no further than the commentary from the weekend’s Bund Summit in Shanghai for guidance.
- How an avalanche of rules buried Ant Group’s US$39.5 billion stock sale and looks set to reshape China’s fintech landscape — When internet billionaire Jack Ma walked out of a meeting with the top echelons of China’s regulators on November 2, his hopes of dramatically overhauling financial services in the world’s second-largest economy had just taken a heavy blow.
- China’s AI unicorns overcame US tech ban but face bigger challenge: reducing reliance on government surveillance business — When Chinese AI unicorns SenseTime, Megvii and Yitu were sanctioned by the US in October last year, it looked like a major threat to the survival of their business.
- China’s semiconductor industry sees 5G, AI applications driving opportunities for domestic substitutes amid US tech restrictions, says KPMG — China’s semiconductor industry sees opportunities for domestic substitutes to reduce its overwhelming reliance on imports, thanks to growing demand for chips in applications such as 5G, autonomous driving and artificial intelligence, according to KPMG, one of the big four accounting firms.
- China finally waves goodbye to family planning as country gets old, but is the damage already done? — The era of family planning through birth restrictions is ending in China. This was made clear by the fact that the four character Chinese phrase, Jihua Shengyu, was not included in the latest 20,000 character national plan released by the ruling Communist Party.
- China buys US$418 million worth of American poultry products in year through August — China bought 283,183 tonnes of poultry products worth US$418 million from the United States in the first eight months of the year, representing 12 per cent of its exports of the food group in the period, according to an industry group.
- 5G has been heralded as a tech game changer but consumers in China are underwhelmed by spotty coverage and hard sell — As a busy Beijing-based banker, Kelvin Li relies heavily on his smartphone for messaging, email, and video calls during his frequent business trips, but he finds that reception can be spotty on his travels.
- China’s exports surged unexpectedly last month, as pace of import growth cooled off — China’s exports surged unexpectedly last month, as the pace of import growth cooled, data released by the country’s customs agency on Saturday showed.
- Taiwan sees opportunity for world stage push under Joe Biden-led US — US arms sales to Taiwan may slow under a Joe Biden presidency, but the self-ruled island could also get more Washington support for its efforts to counter Beijing and expand its global presence as the US president-elect advocates multilateral and international cooperation, according to analysts.
- China’s inflation rate seen falling sharply on lower pork prices, subdued consumer demand — China’s annual consumer price inflation rate is expected to have slowed to less than 1 per cent in October for the first time in more than three-and-a-half years, thanks to the continued moderation in pork prices combined with protracted weak consumer demand in the wake of the coronavirus pandemic.
- China’s Genshin Impact, TikTok top world’s mobile game, app charts in October — Genshin Impact soared to the top of the charts as the world’s most profitable mobile game in October, as ByteDance-owned TikTok remained the most downloaded app globally in the same month, according to a new report.
- China’s semiconductors: Latest US export controls may hinder ambitions to catch up — Tighter US export controls on emerging technologies will prove a new barrier to China’s goal of catching up to the west in advanced semiconductor manufacturing and a Biden Administration would be unlikely to roll them back, say analysts.
- American business community in Hong Kong expects ‘more comfortable’ conditions under Biden presidency — American businesses in Hong Kong have largely welcomed a Joe Biden presidency as being better for their interests in the city, while analysts predicted he would maintain his predecessor’s tough stance towards Beijing – albeit in a more measured fashion.
- Hong Kong power company unveils HK$160 million worth of subsidies ahead of expected electricity bill increase — One of Hong Kong’s two power companies has unveiled subsidies worth more than HK$160 million (US$20.63 million) ahead of an announcement on how much electricity bills will go up this year, which one expert predicts will be minimal.
- Proud to be ‘Made in Hong Kong’, but factories replace labels to meet Tuesday deadline for Trump’s new rule — Koon Chun Sauce Factory is dropping its “Made-in-Hong Kong” label for one that says “Made in China” to ensure it can continue selling to the United States after Tuesday.
Bloomberg
- China’s Meat Imports Seen Surging to Record on Pork Shortages — China’s meat imports this year are on track to reach the highest ever as the world’s top pork consumer increases purchases to meet demand after African swine fever slashed domestic hog numbers.
- Evergrande Scraps China Listing, Strikes More Investor Deals — China Evergrande Group scrapped plans for a backdoor listing and struck deals with more investors to avoid a wave of repayments, capping a four-year saga that had recently raised fears of cash crunch at the world’s most indebted developer.
- Allies Prepare for U.S. U-Turn as Biden Shifts Priorities — Joe Biden’s election win is being greeted with a sigh of relief by many U.S. allies, whose confidence in Washington was shaken over the four years of President Donald Trump’s combative “America First” approach to the world.
- Here’s What Analysts Say a Biden Win Means for China’s Economy — Analysts are focused on what Joe Biden’s election victory will mean for China’s economy and markets after relations with the U.S. plummeted under President Donald Trump.
- Biden Gets Muted Reaction in China With Trump-Era Rift to Endure — Unlike Donald Trump, whom Chinese officials had little knowledge of before he took office, Joe Biden is well known in Beijing. But that history is unlikely to quickly repair a relationship between the global powers that has fundamentally changed over the past four years.
- Biden, Like Trump, Will Deepen Integration With China — Over the past four years, economic ties between Beijing and the rest of the world have only strengthened. That’s likely to continue.
- Hong Kong’s Opposition to Quit if China Disqualifies Any Members — Hong Kong’s pro-democracy politicians said they would quit en masse if Beijing moves to disqualify any individual members of the Legislative Council.
- China Car Sales Go From Strength to Strength as Virus Eases — Car sales continued to recover in China last month as the coronavirus pandemic eased in the country and electric vehicles won more users.
- A Preview of Biden’s Foreign Policy — The biggest differences between the new president and the old one? Experience, civility and appreciation of allies.
- Biden Gets Muted Reaction in China With Trump-Era Rift to Endure — Unlike Donald Trump, whom Chinese officials had little knowledge of before he took office, Joe Biden is well known in Beijing. But that history is unlikely to quickly repair a relationship between the global powers that has fundamentally changed over the past four years.
- China Has a Clever Plan to Keep Its Citizens Spending at Home — Why let consumer cash escape to other nations?
- The Speech That Sunk the World’s Biggest IPO — Jack Ma had some eyebrow-raising words for Chinese regulators, but they should probably be listening to him instead of dressing him down.
- U.S. Goes Nuclear to Compete With Russia, China in Europe’s East — The former Cold War frontier of eastern Europe is becoming a battleground in the $500 billion business of building nuclear power plants.
- China Crop Futures Tumble as Biden Election Spurs Import Hopes — Chinese crop futures retreated for a second day after Joe Biden’s election as the new U.S. president spurred expectations of more farm imports from America under a bilateral trade deal to meet domestic needs. Corn prices fell to the lowest in more than five weeks.
- How Biden’s Win Affects Commodities Hit by Trade Wars, Tariffs — It’s been a tumultuous four years for U.S. commodity industries that found themselves a key focus of the White House through its aggressive trade policy agenda.
- China’s Yuan Extends Best Week Since 2017 on Biden’s Victory — The yuan extended its recent rally as the dollar weakened following Joe Biden’s presidential victory in the U.S.
- China’s Commodities Imports Decline as Seasonal Slump Weighs — China’s purchases of key commodities fell in October from the prior month, mainly because of seasonal factors including an extended holiday at the start of the month in the world’s biggest buyer of raw materials.
- China Solar Giant Plunges After Billionaire Chairman Detained — JA Solar Technology Co., one of the world’s largest solar panel producers, plunged after announcing its billionaire chairman is under investigation by Chinese authorities.
Reuters
- China holds off on sending congratulations to Biden — China, which has held off on congratulating U.S. presidential election winner Joe Biden even as leaders of other countries have done so, said on Monday it would follow custom in responding to the result.
- China’s tech industry relieved by Biden win – but not relaxed — China’s technology industry, one of President Donald Trump’s main targets in Washington’s tussles with Beijing, hopes Joe Biden can create a more constructive relationship – but few think the rivalry will deescalate, executives and analysts say.
- China private refiner Hongrun to expand mega crude oil tank farm — East China-based private refiner Shandong Hongrun Group plans to further expand its mega crude oil tank farm by another 20% next year to meet growing demand from external parties, a company official told Reuters on Monday.
- Biden win opens door for improved predictability in China-U.S. relations: state media — Chinese state media struck an optimistic tone in Monday in editorials reacting to Democrat Joe Biden’s win of the U.S. presidential elections, saying relations could be restored to a state of greater predictability and could start with trade.
- China crude oil imports are likely weaker than data suggests: Russell — China’s imports of crude oil slipped as expected in October, but while a 12.2% drop appears significant, the actual state of demand was probably even weaker.
- Taiwan says not invited to WHO meeting after China’s ‘obstruction’ — Taiwan is yet to receive an invite to a key World Health Organization (WHO) meeting this week expected to focus on the COVID-19 pandemic due to “obstruction” from China, the island’s foreign ministry said, expressing its displeasure.
- China October exports surge, imports rise amid global recovery — China exports grew at the fastest pace in 19 months in October, while imports also rose, official data showed on Saturday, as the world’s second largest economy continued to recover after being hit hard by the coronavirus crisis earlier this year.
Xinhua
- Beijing customs exempt enterprises from 6 mln yuan overdue fine — Beijing customs have exempted enterprises from overdue fines of nearly 6 million yuan (about 907,800 U.S. dollars) in order to ease financial difficulties during the COVID-19 epidemic in 2020, data from Beijing customs showed.
- China’s food industry posts strong profit growth — China’s major food processing companies recorded strong profit growth in the first nine months of the year, data by the Ministry of Industry and Information Technology showed.
- Innovation drives high-quality growth of Beijing’s tech hub — High-tech companies in Beijing’s Zhongguancun, better known as China’s Silicon Valley, are spearheading innovation as the country continues to advance high-quality development.
- CIIE highlights deals in high-end equipment — A group of state-owned enterprises from Shanghai signed 16 deals on Saturday during the ongoing third China International Import Expo (CIIE).
- Spotlight: China boosts multinational firms growth as COVID-19 plagues global economy — As the world economy is grappling amid the COVID-19 pandemic, those deeply afflicted multinational firms are getting a boost in China, one of the world’s largest consumer markets, which has helped instill hope into the recovery of global economy.
- Alliance for Green Commercial Banks launched in Hong Kong — International Finance Corporation (IFC), a member of the World Bank Group, signed a new partnership with the Hong Kong Monetary Authority (HKMA) on Monday to encourage commercial banks in Asia to adopt strategies and targets to become greener, the Hong Kong Special Administrative Region (HKSAR) government said.
- China’s Tianjin Port sees robust growth of cargo throughput — Tianjin Port in north China’s Tianjin Municipality saw its cargo throughput rise 4.3 percent year on year to 336 million tonnes in the first three quarters of 2020, according to Tianjin Port (Group) Co., Ltd.
- China’s 2020 box office tops 15 bln yuan — China’s 2020 box office revenue has exceeded 15 billion yuan (about 2.27 billion U.S. dollars), with the top three earners contributing almost half of the earnings.
- Beijing’s self-driving vehicle road test mileage tops 2 mln km — The safe driving mileage of autonomous vehicle road tests in Beijing exceeded 2 million km by the end of October, according to the Beijing Innovation Center for Mobility Intelligent.
- China’s building materials sector reports growth in first three quarters — China’s building materials sector saw positive growth in the first three quarters, according to the Ministry of Industry and Information Technology (MIIT).
- China’s Hainan free trade port opens air freight route — The free trade port in south China’s Hainan Province launched its first intercontinental air freight route, linking the provincial capital of Haikou with the Netherlands’ capital Amsterdam.
- China Focus: Small countries score big success at import expo — Though covering only nine square meters, the booth of Timor Media Solution is one of the busiest at the ongoing third China International Import Expo (CIIE).
- Global diabetes care giant to expand footprint in China — Leading pharmaceutical company Novo Nordisk of Denmark has signed an agreement to invest 200 million yuan (about 30.3 million U.S. dollars) in China.
- Tutoring giant New Oriental surges on Hong Kong market debut — New Oriental Education & Technology Group, a Chinese tutoring, test preparation and private school operator, surged on its Hong Kong market debut on Monday, and became the first stock of over 1,000 Hong Kong dollars on the market.
- Bank of China reports growth in revenue, drop in profit — The Bank of China (BOC), one of the country’s four big state-owned lenders, saw its revenue expand slightly in the first three quarters of the year, while its net profit fell.
Other Publications
- Nikkei Asian Review: Who stopped Ant’s IPO? In China, one can only speculate — Nikkei’s China bureau chief offers snapshots of politics amid the pandemic.
- Nikkei Asian Review: Foreign companies eye China’s post-COVID domestic demand — Volkswagen and Sanofi showcase products at expo to capture robust consumption.
- Axios: Another central bank easing cycle begins — Central banks already have started priming their collective money printers and in the coming months are poised to crank them up to 11, buying up more bonds and delivering more liquidity to markets.
- The Diplomat: Is China a New Colonial Power? — How well do the claims of neocolonialism stand up?
