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
- The Big-Tech-Monopoly Crackdown Hits China — Recent events indicate Beijing will take on the overreaching power of its technology giants.
- Vaccines Are China’s Golden Opportunity to Regain Global Trust on Health Exports — Hundreds of millions of people are likely to be inoculated by a Covid-19 vaccine produced in China.
- A Big Chinese Bank Is Selling Bonds That Can Be Bought With Cash or Bitcoin — China Construction Bank says the bond is the ‘first publicly listed debt security on a blockchain’.
- ‘Toxic Politics’ Review: Can Xi Jinping Clean House? — China aspires to geopolitical hegemony, but the Communist government may first need to deal with its waste and filth.
- TikTok Asks Court to Extend U.S. Government’s Divestiture Deadline — Parent company ByteDance’s petition calls Washington’s decision to force deal ‘arbitrary and capricious’.
- Hong Kong Opposition Resigns From Legislature Over Latest Beijing Crackdown — Departures set to turn city’s legislature into effective rubber stamp, as Beijing moves to crush dissent.
The Financial Times
- Alibaba: trust issues — Investors would do well to heed the growling from tech watchdogs.
- China’s banking regulator signals tougher fintech antitrust laws — Stocks of Alibaba and other online groups tumble on concern over crackdown.
- China’s ‘recolonisation’ of Hong Kong could soon be complete — For Beijing it makes sense to crush the things that former colonists think made the city successful.
- China tech stocks tumble after regulators step up antitrust pressure — Sector loses almost $290bn in value as banking watchdog takes aim at fintech monopolies.
- Chinese tensions put Australian businesses under pressure — Canberra’s political fight in wake of Covid-19 pandemic highlights cost of angering Beijing.
The New York Times
- On Singles’ Day in China, Couriers Clamor for More — The country’s booming e-commerce sector relies on millions of delivery workers, some of whom are protesting low wages and grueling working conditions.
- In Brazil’s Halt of Chinese Vaccine Trial, Critics See Politics — The government offered little explanation as to why it had stopped testing a promising coronavirus shot; an institute involved in the trial said a participant’s death was unrelated to the vaccine.
Caixin
- Exclusive: Major Commercial Lender’s Chief Named as Newest Central Bank Deputy Governor — Liu Guiping is president of state-owned lender China Construction Bank.
- Huawei to Sell Budget Honor Smartphone Brand — Chinese tech giant would struggle to make a profit from cheap handsets without being able to use its own chips.
- Natural Gas Prices Surge as Winter Bites — Non-residential natural gas prices in multiple northern Chinese cities have increased 10% to 20% compared to a month earlier.
- China Drafts New Guidelines to Rein in Internet Platforms — With first overhaul of antitrust law in 11 years on the way, market regulation administration issues rules to block anticompetitive practices.
- Alibaba-Backed Cainiao Joins Group Buying Stake in Air China Cargo — China National Aviation sells 31% of cargo unit for $733 million as part of restructuring of state-controlled industry.
- Alibaba Stockholders Convert 1.3 Billion Shares From ADRs to HK Ordinary Shares — Single-day move was the largest since Chinese tech giant’s HK offering a year ago, though shareholders involved haven’t been identified.
- Rihanna and Justin Bieber Help Tencent Music’s Profits Reach Higher Notes — Tencent Music Entertainment Group (TME), a part of Chinese internet giant Tencent, reported an uptick in both profit and revenue in the third quarter of 2020, as it ramped up efforts to expand its music library.
- Taiwan’s MediaTek Launches New 5G Mobile Chip — Taiwan’s semiconductor manufacturer MediaTek has unveiled a new 5G smartphone chip in its latest move to bring 5G connectivity to a larger audience.
South China Morning Post
- China’s makers of lockdown goods eyeing next windfall as coronavirus shutdowns return to the West — As they churn out goods being consumed around the world, manufacturers in China are licking their chops at the prospect of an end-of-year windfall amid fresh coronavirus outbreaks and economic upheaval in Europe and America.
- US-China relations: Pentagon changes could create fresh uncertainty on military issues, observers say — The sudden resignation of three senior officials from the US defence department a day after the departure of their former boss, Mark Esper, is likely to create more uncertainty between China and the United States on military affairs, observers say.
- China’s hi-tech direction for the next five years — China fleshed out some of its plans for new technology with the release of a summary of its next five-year plan, which covers the period until 2025.
- China’s firms sign US$73 billion worth of deals at flagship Shanghai import expo — China’s flagship imports expo concluded with more deals signed this year than last, although foreign companies remain unconvinced about Beijing’s commitment to creating a level playing field for them in the domestic market.
- China bank loans down to lowest in a year, but broader credit growth quickens — China’s new bank loans fell more than expected in October to their lowest in a year, but the drop was likely seasonal and policymakers are expected to maintain solid support for the economy as the global pandemic drags on.
- China’s coronavirus recovery continues as car sales rise for seventh straight month in October — Vehicle sales in China rose 12.5 per cent in October from the same month a year earlier, the seventh straight monthly rise as the world’s biggest vehicle market leads the global industry in recovering from lows hit during the coronavirus pandemic.
- China targets trademarks violations in effort to improve IP protection, but unlikely to satisfy US demands — More than 850 violations relating to the malicious squatting and hoarding of trademarks have been identified under a campaign started in China last year in an effort to improve intellectual property protections.
- Does Joe Biden’s pick as the next US trade chief need to be a China hand? — In his three years as US ambassador to China under then-president Barack Obama, Max Baucus says he was often surprised by the lack of understanding about China among senior government colleagues in Washington.
- Hong Kong launches a Silver Bond with generous payouts to protect senior citizens’ investments amid recession — Hong Kong’s government has launched a special bond with the most generous payout in years for senior citizens, as it extends a financial lifeline to one of the world’s fastest greying population amid the city’s worst recession on record.
- Travel bubble: Hong Kong tourism firms upbeat but cautious over scheme with Singapore — With Hong Kong slated to open a travel bubble with Singapore in less than two weeks, the city’s beleaguered tourism industry is preparing to roll out packages to entice visitors, although companies remain cautious in their business outlook due to the uncertainty caused by the Covid-19 pandemic.
Bloomberg
- Saudi Aramco Proposes Selling Gas to China to Build on Oil Ties — Saudi Aramco wants to sell natural gas to China to help its biggest customer for oil make the transition to cleaner fuels, Chief Executive Officer Amin Nasser said.
- Down $290 Billion, China Tech Investors Mull Nightmare Scenarios — With 22 pages of vaguely worded edicts, China has cast doubt on the future of its biggest internet companies and ignited a $290 billion equity selloff.
- China Vows Escalation in Clampdown on Fintech’s Dominance — China’s top banking watchdog doubled down on a push to rein in financial technology companies such as Ant Group Co., promising to eliminate monopolistic practices and strengthen risk controls in the industry.
- What Five Alibaba Investors Are Doing With Their Plunging Shares — China’s clampdown on internet and fintech giants has pummeled shares of Alibaba Group Holding Ltd., erasing $165 billion of market value and prompting some investors to reassess their holdings.
- Chances of China’s Financial Decoupling From U.S. Are Low: Chart — Confrontations in trade, technology and geopolitics are threatening to spill over into the financial system, with the U.S. pondering sanctions against Chinese banks and China weighing the possibility of selling down its U.S. Treasury holdings.
- Alibaba Leads Chinese Internet Selloff Nearing $290 Billion — Chinese technology giants from Alibaba Group Holding Ltd. to Tencent Holdings Ltd shed almost $290 billion of market value over two days of frantic selling, as investors scrambled to assess the fallout from Beijing’s broadest attempt to rein in its most powerful private-sector firms.
- China Credit Growth Slows on Holidays, Drop in Bond Sales — China’s credit growth slowed after a strong rebound in recent months, reflecting both the declining issuance of government bonds and seasonal factors in October when businesses were shut because of public holidays.
- China Dollar Bond Orders Hit 7-Month Low Before U.S. Polls — Demand for Chinese dollar bonds dropped for a second month to the weakest level since the pandemic-induced selloff in March, as U.S. election jitters amid an issuance boom overwhelmed investor appetite.
- Deep-Freeze Hurdle Makes Pfizer’s Vaccine One for the Rich — When Pfizer Inc. and BioNTech SE’s Covid-19 vaccine rolls off production lines, Shanghai Fosun Pharmaceutical Group Co. will be waiting to distribute it through a complex and costly system of deep-freeze airport warehouses, refrigerated vehicles and inoculation points across China.
- China Issues 37 Directives in One Day to Cool a Wild Market — Unprecedented volume, dozens of trading suspensions and daily circuit breakers: China’s convertible bond market turned so chaotic that regulators released 37 new directives in a day just to calm it down.
- China’s Antitrust Rules Will Threaten Alibaba, Tencent, Rivals — Alibaba, Tencent and their peers have reason to fear anti-monopoly regulation.
- Oil Demand’s Shaky Recovery Revealed in Global Traffic Data — From the number of cars crossing San Francisco’s Bay Bridge to the traffic jams in Berlin and air pollution on the streets of Beijing, everything suggests that a recovery in global fuel demand is wobbling.
- Biden Stimulus Could Ease Asian North-South Divide if It Comes — A chasm has opened up between tech exporters such as China and South Korea, and laggards like Indonesia.
- Jack Ma’s Halted Ant IPO Doesn’t Close China’s Future on Digital Banking — Even after the Ant IPO upheaval, innovative digital banking has a lucrative future in China.
- Brainard Faces China Questions If Biden Picks Her for Treasury — Lael Brainard may face scrutiny over her dovish comments about China as a top Obama administration official if President-elect Joe Biden chooses her to be Treasury Secretary, but people familiar with her work said she took a more aggressive approach in private.
- Biden Can Fix U.S. Trade Policy with China and Asia — Stopping the tariff-war madness with allies is something the new president could do right away with executive powers.
- Bridgewater Expands China Assets With 22% Annual Return — Ray Dalio’s Bridgewater Associates is doing far better in China than in the rest of the world.
Reuters
- China’s Rhodiola set to sell and test Russia’s Sputnik-V vaccine — China’s Tibet Rhodiola Pharmaceutical Holding announced a deal on Wednesday to manufacture, sell and test Russia’s COVID-19 vaccine in China, hours after interim results showed it was 92% effective at protecting people from the disease.
- Trudeau says Canada will not bow to China’s ‘coercive diplomacy’ — Canadian Prime Minister Justin Trudeau said on Wednesday that his country would not cave in to pressure from China over the case of Huawei Chief Financial Officer Meng Wanzhou who was arrested in Canada on a U.S. warrant almost two years ago.
- Uzbekistan to carry out late-stage trial of Chinese COVID-19 vaccine candidate — Uzbekistan will carry out a phase III trial of a coronavirus vaccine candidate developed by China’s Anhui Zhifei Longcom Biopharmaceutical Co., the Central Asian nation’s ministry of innovative development told Reuters on Wednesday.
- Exclusive: TikTok-owner ByteDance to rake in $27 billion in ad revenue by year-end – sources — TikTok-owner ByteDance is on track to generate at least 180 billion yuan ($27.2 billion) in advertising revenue in China this year, which will cement its no. 2 spot in China’s digital ad market, two people with knowledge of the matter said.
- Nissan’s prospects brighten as China rebounds, but struggle ahead for weakened car maker — Nissan Motor Co could trim its forecast for a full-year loss when it reports quarterly results on Thursday, analyst estimates show, as a recovery in China marks a rare bright spot for the Japanese automaker weakened by scandal and the pandemic.
- China urges U.S. to stop increasing ties with Taiwan — China urged the United States on Wednesday to stop boosting ties with Taiwan, after Washington and Taipei announced they would hold economic talks this month that Taiwan’s government described as a “major milestone” in relations.
- Asian leaders to sign China-backed trade deal amid U.S. election uncertainty — Southeast Asian leaders start meetings on Thursday that are expected to lead to an ambitious China-backed trade deal at a time the still uncertain election result in the United States leaves questions over its engagement in the region.
- Bridgewater’s Dalio supports Ant IPO suspension, bullish on China — Ray Dalio, founder of Bridgewater Associates, expressed support on Wednesday for China’s abrupt decision to suspend Ant Group’s record $37 billion listing, citing the need to curb risks from financial innovation.
- China says Hong Kong legislators endangering national security can be disqualified — China’s top decision-making body decided on Wednesday to allow for immediate disqualification of Hong Kong legislators who endanger national security, seek the city’s independence or seek foreign interference, the official Xinhua News Agency reported.
- Suicide halts Brazil trial of Chinese vaccine attacked by Bolsonaro — Brazil’s health regulator suspended a clinical trial of China’s Sinovac coronavirus vaccine due to a severe adverse event, delighting President Jair Bolsonaro, who has repeatedly criticized the vaccine’s credibility and said it would not be purchased by his government.
- Dining with Biden: Beijing restaurant recalls visit from U.S. president-elect — A Beijing restaurant owner congratulated her “old friend” and one-time customer Joe Biden on Monday after the U.S. Democratic candidate emerged victorious in a tightly fought U.S. presidential election, and invited him back to try some pork liver.
- Alibaba moves deeper into offline with Chinese smart apparel factory — Robots whirr around, shifting fabrics and clothing, on the evening before Singles’ Day at the Hangzhou site for Xunxi, Alibaba’s first wholly-owned smart factory.
Xinhua
- China’s leading automaker FAW reports growth in sales — First Automotive Works (FAW) Group Co. Ltd., China’s leading automaker, sold more than 3.01 million vehicles in the first 10 months of this year, an increase of 7.8 percent year on year, the company said.
- Export of dairy products from Poland to China up 70 pct YoY in H1 — The European Union (EU) is one of the largest milk suppliers to Chinese market, with Poland accounting for a share of 12.7%, according to Director of Polish Milk Chamber Agnieszka Maliszewska.
- Italian dairy makers eye Chinese market as Shanghai food show gets underway — The head of one of Italy’s leading dairy sector groups predicted Tuesday that China will be an increasingly important area of focus for the sector going forward.
- China Focus: China’s import expo seals record deals despite COVID-19 pandemic — Despite the COVID-19 pandemic raging globally, the third China International Import Expo (CIIE) saw a record total value of deals signed, outperforming the past two events, official data showed Tuesday.
- China’s securities regulator to improve quality of listed companies — China’s top securities watchdog on Tuesday pledged more efforts to improve the quality of listed companies, vowing better corporate governance and exit mechanism, as well as harsher punishment for illegal acts.
- China’s consumer inflation further eases amid falling food prices — China’s consumer inflation eased for a third straight month and hit an 11-year low in October as food prices tumbled, official data showed Tuesday.
- China’s new yuan loans rise in October — China’s new yuan-denominated loans hit 689.8 billion yuan (about 104.4 billion U.S. dollars) in October, a year-on-year increase of 28.5 billion yuan, data from the central bank showed Wednesday.
- China Focus: Global 5G innovations shine at third CIIE — With full 5G network coverage in its pavilion, the third China International Import Expo (CIIE) is a dazzling platform for the world’s most cutting-edge 5G applications.
- Hi-tech fair kicks off with over 3,300 exhibitors — The 22nd China Hi-Tech Fair (CHTF) kicked off on Wednesday in southern China’s tech hub Shenzhen, with more than 3,300 exhibitors from home and abroad participating both online or offline and showcasing some 10,000 mind-boggling technology products.
- China’s first domestically built large cruise ship under assembly — China’s first domestically built large cruise ship has been transferred to the docks in Shanghai for assembly and is expected to be delivered in 2023, according to the Shanghai Waigaoqiao Shipbuilding Co., Ltd, a subsidiary of China State Shipbuilding Corporation Limited.
- China port handles over 200,000 TEUs via China-Europe freight trains since 2014 — The border port of Erenhot in north China’s Inner Mongolia Autonomous Region has handled over 200,000 twenty-foot equivalent units (TEUs) via China-Europe freight trains since 2014, the local railway operator said Wednesday.
- China’s agricultural product wholesale prices edge down — The wholesale prices of China’s agricultural products dipped Wednesday, according to the Ministry of Agriculture and Rural Affairs.
- China’s SMEs see stable recovery in October — Vitality and recovery of China’s small and medium-sized enterprises (SMEs) kept improving in October as the country’s relief policies generated more tangible benefits, the latest industry data showed.
- China’s benchmark power coal price edges up — China’s benchmark power coal price rose slightly during the past week.
Other Publications
- Axios: The U.S. war on terror made life worse for China’s Uighurs — The U.S. war on terror and its vague, overexpansive definition of terrorism have allowed authoritarian leaders around the world, and especially in China, to attack domestic groups under the guise of fighting terrorism, argues a George Washington University scholar in a new book.
- The Diplomat: How China’s Legal System Enables Intellectual Property Theft — China’s recent improvements in IP protection can’t overcome the fact that its legal system will never offer a level playing field.
- Nikkei Asian Review: Chinese chipmaker Tsinghua Unigroup’s bonds crash after debt warning — Beijing tech flagship strained by credit-fueled capacity buildup.
- Nikkei Asian Review: Japan and Taiwan companies to gain from China’s quick recovery — Market’s pull still strong in many industries despite talk of ‘exit’.
- Nikkei Asian Review: Nissan drives deeper into last resort China with 30% capacity rise — Automaker to dispatch engineers from Japan as it goes all-in on electrics.
- Macro Polo: Yes, China Will Adjust Course — As the world fixated on the US presidential election on November 3, China dropped its 14th Five-Year Plan (FYP) on the same day, all but ensuring that virtually no attention was paid to it. Those who did pay attention mainly focused on the “dual circulation” concept. But equal attention should be devoted to the one refrain that continues to stand out among the flurry of official explainers and documents centered on the 14th FYP: “getting China’s own house in order (办好自己的事)”.
- Forbes: Tesla’s Market Share Is Sliding In China And Has Cratered In Europe — What’s the problem for Tesla? It’s Volkswagen.
- China Daily: Nation begins assembling first large cruise ship — The first large cruise ship to be built by China starts to be assembled at a shipyard in Shanghai on Tuesday.
