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.
Paid subscribers can have this list emailed directly to their inboxes every day. Subscribe here, and then send us an email at contact@thewirechina.com to opt in for the Daily Roundup email.
The Wall Street Journal
- Government Leaders Clash Over Next Step for Trump’s Ban on Chinese Stocks — Fight over Trump’s executive order pits Treasury, Wall Street against State Department, Pentagon.
- Disney’s Chairman Robert Iger Is Game for a New Job: U.S. Ambassador to China — An Iger appointment could roil politicians critical of Disney’s business in China.
- Chinese Companies Win Billions in European Taxpayer-Funded Contracts — European contractors say Beijing-backed conglomerates undercut rivals in the EU’s public-procurement market.
- U.S. Blacklists China’s Top Chip Maker, Escalating Tech Fight — SMIC among more than 60 Chinese institutions added to the entity list restricting access to American technology.
- Five Years On, China’s World Bank Challenger Has Fallen Short of Lofty Predictions — In a little over a month, the Asian Infrastructure Investment Bank will be five years old. Back then, the nascent China-organized multinational lender was described as a challenger to the Asian Development Bank and even the World Bank. But after half a decade in operation, the reality doesn’t quite match the hype.
The Financial Times
- US adds China’s largest chipmaker to export blacklist — SMIC shares fall in Hong Kong as Trump administration moves to tighten screws.
- Gucci targets China’s post-Covid luxury surge with Alibaba tie-up — Luxury brand previously said it would not work with country’s ecommerce groups because of fakes.
- US Treasury seeks to water down Trump’s Chinese securities ban — Pentagon and state department infuriated by attempt to soften impact of executive order.
The New York Times
- How to reset the relationship between the U.S. and China — A group of experts gathered to debate the prospects for cooperation and competition between the world’s most powerful economies.
- Du Bin, Chinese Journalist, Is Detained in Beijing — Friends of Du Bin said that his detention might have been related to book projects critical of the history of Communism and China’s Communist Party.
Caixin
- Foreign-Invested Firms Need Help With Pandemic Fallout Too, China’s Local Governments Told — Banking regulator and commerce ministry issue directive urging more financial support for overseas companies experiencing post-Covid-19 difficulties.
- China Vows ‘No Sudden Turns’ on Economic Policy — At the three-day Central Economic Work Conference, policymakers promised to stay the course with ‘proactive fiscal policy’ and ‘prudent monetary policy’.
- Investors See Opportunities in China’s $2.45 Trillion Private Equity Market — Industry expands 16% from a year ago, led by private securities investment funds, Asset Management Association of China reports.
- China Clears First New National Bad-Loan Manager in Two Decades — China Galaxy Asset Management joins four other national institutions as the country’s banks face greater bad loan risks following pandemic.
- China Tells State Financial Institutions to Focus on Core Businesses — Finance Ministry orders the nation’s state-owned financial companies to ditch side businesses and those with tiny returns.
- Walmart and TikTok to Import Chinese-Style Livestreaming E-Commerce Stateside — Partnership builds on U.S. retailer’s tentative investment stake, seeking to capitalize on hit Chinese practice while lending a new commercial base to TikTok.
- China Three Gorges’ New Energy Arm Approved for $3.8 Billion IPO — Company plans to use 80% of proceeds to maintain its cash-burning offshore wind farm expansion.
- China Eastern, China Telecom Scour the Skies for New Income With Internet Tie-Up — New joint venture will bring together a leading airline with a top wireless carrier, as China pushes for greater coverage aboard its commercial air fleet.
- Chinese Cement Producers Rush to Swap Old Capacity Before New Rules — MIIT issues new regulations jacking up the amount of old capacity producers must retire as they propose new, less-polluting plants.
- Chinese IoT Platform Rootcloud Raises $122m Series C Led by IDG Capital — Guangzhou-headquartered IoT platform Rootcloud announced on Thursday that it has closed a Series C round of financing raising 800 million yuan ($122 million) led by Beijing-based global investment and asset manager IDG Capital.
- Pony.ai Gets Green Light to Test Self-Driving Trucks in Guangzhou — Toyota-backed Pony.ai, which already operates a pilot “robotaxi” service in the U.S. and China, has secured a license from the Guangzhou municipal government to test self-driving trucks on the city’s public roads, a sign that the startup is aiming to apply its technology to autonomous logistics.
- Swedish Appeal Court Deals Blow To Huawei Equipment Being Used in Country’s 5G Network — A Swedish court of appeal gave the green light to a 5G spectrum auction by local telecoms regulators that explicitly prohibits bidders from using equipment from Chinese telecom gear giant Huawei Technologies Co. Ltd.
- Xpeng Delivers First EVs to Norway in Slow-Going Europe Entry — Xpeng Inc., the Chinese electric-vehicle maker that’s surged since its August U.S. stock listing, has started entering the European auto market with an initial batch of deliveries to Norway.
South China Morning Post
- For China’s coronavirus vaccines, public trust is in the detailed data — In the last two weeks, there has been intense public interest in two ordinarily dry technical meetings in the United States. The interest was in meetings of a Food and Drug Administration advisory committee vote on emergency use licensing recommendations for coronavirus vaccines from pharma firms Pfizer/BioNTech and Moderna.
- China’s top policy panel says government will continue ‘necessary support’ for economy — China’s top policymakers have pledged to continue “necessary support” for the nation’s economic recovery and will make “no U-turn” when there are still many outlook uncertainties due to the coronavirus pandemic and the external environment, according to the Central Economic Work Conference that concluded on Friday.
- China’s small exporters see bank accounts frozen amid ‘massive crackdown’ by police across the country — Individual traders in some of China’s export hubs are having their bank accounts frozen in what industry insiders say is collateral damage from the nation’s crackdown on internet crimes and illegal foreign exchange transactions.
- US reaches out to allies amid concerns China and Russia are trying to weaponise space — The US is seeking support from its allies for its space programme amid concerns Russia and China are trying to weaponise the sphere, the head of the US Space Force has said.
- Beijing may refuse entry to Taiwanese visitors with ‘Wuhan coronavirus’ on their test results, Air China says — Taiwanese visitors to mainland China could face problems if their Covid-19 test certificates carry the words “Wuhan coronavirus”, according to flag carrier Air China.
- China aims to upgrade farmland the size of the Republic of Ireland. Here’s why — China has said it aims to upgrade almost 25 per cent more farmland in 2021 than it did this year, in an attempt to boost its food security while the coronavirus pandemic disrupts supply chains.
- Ant Group removes small banks’ online deposit products from its platform as it toes the line with China’s new fintech rules — Ant Group, China’s dominant online payments service provider, has removed the deposit-taking products of several banks from its financial platform, as it falls in line to comply with tightening regulations in the world’s largest fintech market.
- China adds a fifth bad-debt manager to prepare for decade-high dud loans as Covid-19 weighs on banks and borrowers — China has given the green light for the first national asset management company (AMC) to be established in more than 20 years, as the country’s banking system braces for a record spate of corporate defaults and bad loans from the coronavirus pandemic.
- China’s fintech giants led by Ant Group retool and innovate, as they roll with the punches in new regulatory landscape — This final instalment in a five-part series on the future of China’s fintech industry looks at what the largest fintech companies must do to survive and thrive in a harsher regulatory landscape. Earlier instalments are here.
- China urged to ‘expand job market’, provide support for university graduates and migrant workers in 2021 — China must set its sights on expanding the job market next year, especially for university graduates and migrant workers, experts at a labour ministry conference have said, as the country’s top leaders gather in Beijing to set future economic policies.
- China’s market regulator flexes muscles, signalling Wild West era of unchecked Big Tech growth is over — China’s market regulator flexed its muscles this week, slapping fines of 500,000 yuan (US$76,300) each on Alibaba Group Holding, Tencent Holdings-backed China Literature and Shenzhen Hive Box for not properly reporting past acquisitions for clearance.
- China-Australia relations: Rio Tinto makes anti-pollution deal with world’s largest steel producer amid iron ore price controversy — Anglo-Australian miner Rio Tinto has agreed to invest millions of dollars in low-carbon steelmaking projects and research alongside the world’s largest steel producer, China Baowu Steel Group, for the next two years, in a show of partnership as concerns of an iron ore trade rupture continue to froth.
- Hong Kong lawmakers bemoan gaps in HK$6.4 billion relief fund as some businesses and employees miss out — Some businesses, as well as many employees, are missing out on the government’s HK$6.4 billion (US$826 million) coronavirus relief package, Hong Kong lawmakers have complained.
- Alibaba says Uygur-tracking facial recognition violates company values, removes software — After withdrawing highly criticised software that could be used to identify Uygurs and other ethnic minorities on Thursday, Alibaba Group Holding denied fresh rumours on Friday that it was under investigation for an unrelated matter.
Bloomberg
- China’s Wang Urges Better U.S. Ties as Biden Prepares for Office — Chinese Foreign Minister Wang Yi called for Beijing and Washington to return to dialogue, while blasting President Donald Trump’s “America first” policies.
- U.S. Blacklists More Than 60 Chinese Firms, Including SMIC — The U.S. Commerce Department announced it’s blacklisting Semiconductor Manufacturing International Corp. and more than 60 other Chinese companies “to protect U.S. national security.”
- China Says EU Investment Deal in Final Stage, Hails Progress — China said talks with the European Union on a bilateral investment deal are in the final stages, citing progress between negotiators as they push for an agreement before a year-end deadline.
- South African Stocks Drop From Early 2018 High as Naspers Slips — South Africa’s main stock index fell 0.5% as of 9:46 a.m. in Johannesburg, retreating from the highest close since January 2018, as fresh U.S.-China tensions and protracted wrangling over a stimulus package in Washington weighed on sentiment toward riskier assets.
- China Plans to Vaccinate 50 Million by Early February — China has kickstarted an ambitious effort to inoculate 50 million people against Covid-19 ahead of the Lunar New Year, using locally developed shots that are moving closer to getting regulatory approval.
- Japan to Step Up Defenses From Chinese, North Korean Threats — Prime Minister Yoshihide Suga signaled to North Korea and China he will bolster Japan’s military to counter threats they pose to security by allocating an estimated $5 billion for sea-based missile interceptors and new anti-ship missiles.
- Foreign Investment Pours Into China Despite Trade War, Pandemic — For all the talk of an economic decoupling between China and the U.S. and its allies, foreign companies continue to pour money into the Asian nation.
- Asia Trounces U.S. in Health-Efficiency Index Amid Pandemic — As a pandemic ravaged the world, Asian economies led by Hong Kong and Singapore topped a ranking of most-efficient health care systems.The Bloomberg Health-Efficiency Index, first conducted in 2013, tracks life expectancy and medical spending to determine which health-care systems have the best outcomes. This year’s results include the impact of Covid-19 on mortality and gross domestic product in 57 of the world’s largest economies.
- China Backsliding on Zero Emissions Could Be Fatal Blow to Planet — Promises of zero emissions by 2060 may be running into entrenched fossil-fuel interests. Xi Jinping must keep his word.
- China’s Attacks on Australian Goods Take Many Different Forms — After a year of steadily worsening relations between Beijing and Canberra, China has imposed a raft of trade measures blocking billions of dollars worth of Australian commodities to its biggest trading partner.
- World Bank Corrects Country Rankings After Probe of Altered Data — The World Bank corrected two recent reports ranking nations by ease of doing business, adjusting the scores for China and three other countries based on an internal audit following staffers’ allegations of “undue pressure” by management to alter ratings.
- U.S. to Limit Use of Chinese Power Equipment on Military Bases — The Trump administration is issuing new prohibitions on the use of Chinese power equipment on military bases, citing the need to protect the U.S. facilities from foreign adversaries, according to two senior Energy Department officials familiar with the matter.
- Chinese E-Commerce Newcomers More Than Double Amid IPO Frenzy — Two Chinese stocks that started trading in New York this week more than doubled Thursday before paring back some gains amid an end-of-year frenzy for newly listed companies.
Reuters
- U.S. blacklists dozens of Chinese firms including SMIC — The United States confirmed on Friday it will add dozens of Chinese companies, including the country’s top chipmaker, SMIC, to a trade blacklist.
- Exclusive: U.S. warns Pacific islands about Chinese bid for undersea cable project – sources — The United States has warned Pacific island nations about security threats posed by a Chinese company’s cut-price bid to build an undersea internet cable, two sources told Reuters, part of an international development project in the region.
- China, on U.S. utilities import ban, says it opposes U.S. smearing it without evidence — China said on Friday it firmly opposes the United States smearing China without evidence, in response to Washington banning utilities that supply electricity to U.S. defense facilities from buying power grid equipment from China.
- China urges U.S. to stop crackdown following company blacklist report — China’s foreign ministry on Friday urged the United States to stop its “unjustified” crackdown on Chinese companies, after Reuters reported that Washington plans to add dozens of Chinese companies to a trade blacklist.
- China to levy anti-dumping duties on rubber product from U.S., South Korea, EU — China will impose anti-dumping duties on a rubber product from the United States, South Korea and the European Union starting Dec. 20, the commerce ministry said on Friday.
- Gucci joins Alibaba’s luxury e-commerce site to woo Chinese consumers — Fashion label Gucci will open two flagship stores on Alibaba’s online luxury shopping platform, underscoring the importance of the Chinese market for high-end brands seeking to reverse a revenue slide due to the coronavirus pandemic.
- Australian cabinet reshuffle sees new trade minister and China critic in defence — Australia’s Prime Minister Scott Morrison reshuffled his cabinet on Friday, naming a new trade minister and appointing a high-profile critic of China, previously barred from visiting Beijing, as assistant defence minister.
- Draft guidance on China investment ban spurs tensions in Trump administration -sources — A debate is raging within the Trump administration over guidance the Treasury Department is seeking to publish to clarify a recent directive banning U.S. investors from buying shares of some top Chinese companies, people familiar with the matter said.
- U.S. EXIM board changes rules to help boost U.S. competitiveness vs. China — The Export-Import Bank of the United States said its board voted on Thursday to lower the domestic content threshold required for projects it backs from 85% to 51% for 10 sectors seen as critical to boosting U.S. competitiveness versus China.
Xinhua
- Key meeting sums up China’s experience in developing economy amid severe challenges — The annual Central Economic Work Conference that concluded on Friday summarized China’s experience in developing economy in the face of severe challenges.
- China to formulate action plan for peaking carbon dioxide emissions before 2030: key meeting — China will seize time to formulate an action plan for peaking carbon dioxide emissions before 2030, a key meeting said.
- China to build more independent, controllable industrial, supply chains — China will make efforts to build more independent and controllable industrial and supply chains, according to a statement released after the annual Central Economic Work Conference that concluded Friday.
- China to solve prominent housing problems in big cities: key meeting — China will work to solve prominent housing problems in big cities as one of its key economic tasks for 2021, a key meeting said Friday.
- China to safeguard food security by addressing seeds, farmlands problems: key meeting — China will strive to tackle problems related to seeds and farmlands next year as part of its efforts to ensure food security, a key meeting said Friday.
- Across China: Health, wellness tourism a boon for forested county — Featuring red cliffs, cloud-wrapped peaks and homestays in forests, east China’s Taining County, in Fujian Province, is endowed with all the advantages for developing tourism.
- China’s Canton Fair to massively expand exhibition area — The China Import and Export Fair held in south China’s Guangdong Province will expand its total exhibition construction area by 40 percent, according to local authorities on Friday.
- China’s global luxury market share nearly doubles in 2020: report — Following a slow start due to COVID-19, China’s luxury spending has rebounded strongly as global travel restrictions have pushed Chinese consumers to make more purchases domestically rather than from abroad.
- Chinese shares close lower, coal-related share prices surge — Chinese shares closed lower Friday, despite the price surge seen in shares related to coal, mining and electricity enterprises.
Other Publications
- The Atlantic: China’s Rebel Historians — Defiant researchers chronicle a past that the Communist Party grows ever more intent on erasing.
- Foreign Policy: China Won’t Rescue Iran — Despite reports of a major Chinese-Iranian trade deal, Beijing won’t jeopardize the possibility of better relations with Washington in order to cozy up to Tehran.
- Nikkei Asian Review: Chinese province turns to highway operator to bail out Yongcheng — Henan Transport takes minority stake in coal company that missed bond payments.
