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.
The Wall Street Journal
- Hong Kong Skyscrapers Lose Some Sheen — Rents for prime offices could fall 12% to 20% this year in the world’s priciest market, showing the effects of the coronavirus pandemic and U.S.-China tensions.
- Chinese Apps Get the China Treatment in India — U.S. internet giants have been locked out of China for years. Increasingly, Chinese apps may find themselves locked out of the rest of the world.
- China’s Economic Recovery Picks Up Further Momentum — A string of recent signs of improvement points to the world’s second-largest economy recording positive growth for the second quarter.
- India Bans TikTok, Dozens of Other Chinese Apps After Border Clash — India banned dozens of Chinese mobile apps, including widely used TikTok and WeChat, after a border clash between troops from the two countries left 20 Indian soldiers dead this month.
- China Releases American FedEx Pilot After Nine Months in Detention — Chinese authorities freed retired U.S. Air Force colonel Todd A. Hohn, who was under investigation for smuggling ammunition, easing a pressure point on the shipping giant that has been in Beijing’s crosshairs amid disputes between the U.S. and China.
The Financial Times
- US bars arms exports to Hong Kong as it revokes special status — Washington tightens restrictions on Asian financial hub in response to China’s security law
- Taiwan looks to tighten investment rules for China — Taipei is trying to guard against Beijing gaining access to crucial data and technology
- New China security law could stifle research in HK, say analysts — Possible rise in self-censorship prompts concerns over future of Asian finance hub
The New York Times
- With India’s TikTok Ban, the World’s Digital Walls Grow Higher — Censorship and politics are fracturing the global internet, isolating users and industries accustomed to ignoring national borders.
- Business Embraces Hong Kong’s Security Law. The Money Helps. — A flood of investment from China has tempered worries that Beijing’s tightening grip on the Asian financial capital would end its status as a lucrative place to do business.
- Australia Spending Nearly $1 Billion on Cyberdefense as China Tensions Rise — Officials promised to recruit at least 500 cyberspies and build on the country’s offensive capabilities to take the online battle overseas.
- China Passes Security Law Giving It Sweeping Powers Over Hong Kong — The law, approved in Beijing with speed and secrecy and signed off by Xi Jinping, will tighten the Communist Party’s grip on Hong Kong after last year’s protests.
Caixin
- Exclusive: Scandal-Plagued Huarong Appoints New Anti-Graft Head — The appointment of veteran regulator Pang Xuefeng could signal a new phase in the company’s fight to root out corruption
- China’s Biggest Detergent Maker Blue Moon Seeks HK IPO — Hillhouse-backed producer of laundry and hand soaps based in Guangzhou may raise as much as $1 billion after profit surged in 2019
- China to Link Wealth Management Markets in Greater Bay Area — Residents of Guangdong, Hong Kong and Macao will be able to invest in wealth management products from banks across the region as part of a sweeping financial integration plan
- Galanz, Alibaba Bury the Hatchet With ‘Pick Sides’ Lawsuit Settlement — Leading microwave-oven maker had accused e-commerce juggernaut of abusing its market dominance to force online merchants to choose between Alibaba and rival platforms.
- Alibaba-Owned Taobao Live Sacks Former Operating Head for Corruption — Zhao Yang, former head of content operations at Taobao Live, the livestreaming arm of Chinese e-commerce giant Alibaba, has been sacked for violating corporate discipline.
- Tesla Supplier CATL Breaks Ground With New Battery Lab — Contemporary Amperex Technology (CATL) has begun construction of a lab to develop advanced clean energy technologies, as the Chinese battery maker grows to become an integral member of the global supply chain for electric vehicles.
South China Morning Post
- Has Hong Kong’s home market regained its footing? May’s lived-in price index recorded its biggest gain in 13 months — The average price of Hong Kong’s lived-in homes took a tentative step toward recovery in May, as the city’s coronavirus outbreak stabilised, and some property buyers were attracted by a flood of easy financing to enter the fray.
- China economy steadied further in June, as slow recovery from coronavirus continued — China’s economic activity steadied in June, with manufacturing and services both stabilising as the long way back from the coronavirus lockdowns continued.
- Cathay Pacific: 90 per cent of staff agree to second round of unpaid leave as Hong Kong’s flag carrier braces for slow recovery amid pandemic — Cathay Pacific Airways has won the backing of 90 per cent of staff who are agreeable to taking unpaid leave in a second round of cost-saving measures, with management saying the company’s recovery from the coronavirus pandemic would be a “slow” one.
- China’s tech sector quietly assesses India’s ban on TikTok, 58 other apps — Most of China’s technology sector appeared to take a collective pause on Tuesday to assess India’s decision to ban 59 popular Chinese apps over security concerns, as tensions rise between Asia’s two biggest economies.
- Chinese smartphone giant Vivo is latest to splurge on tech tower — China’s No 2 smartphone brand Vivo Mobile Communications has broken ground on a high-rise office in Shenzhen to house its future headquarters, highlighting a construction boom from the country’s burgeoning technology sector.
- Goodbye seems to be the hardest word for Europe’s manufacturers when it comes to China’s low-cost labour force and supply chain — European leaders talk of shortening supply chains and curbing China’s “Belt and Road” plan. But on the ground in Italy, Gimmi Baldinini says his designer footwear company is in no position to cut ties with the Chinese.
- National security law: US export controls will ‘hammer Hong Kong re-exports’ and tighten the screw on China — Washington’s move to restrict Hong Kong’s access to “sensitive US technology” is seen as the first in a potentially long line of steps towards removing the city’s special trading privileges, and a further tightening of the screw on China’s access to hi-tech goods.
- Hong Kong’s role in funding Chinese tech firms could be cemented by US-China rivalry, analysts say — The rivalry between China and the United States, including Washington’s increased scrutiny over Chinese companies, could cement Hong Kong’s role as the primary location to raise money for mainland technology firms, analysts said.
Bloomberg
- Investors Slam ‘Flawed’ Vote in Battle for Iconic Taiwan Brand — A power struggle for control of one of Taiwan’s favorite household-appliance brands descended into acrimony after the company’s chairwoman avoided being ousted in a controversial shareholder vote.
- China Halts Meat Imports From More Plants Amid Virus Tumult — China suspended meat imports from more plants as the Asian nation continues to sow confusion in global agriculture markets by suggesting a potential link between the spread of coronavirus and food.
- Chinese Electric-Car Startup Byton Halts Operations on Virus — Byton Ltd., the Chinese electric-vehicle startup that plotted a U.S. entry for years but never sold a car, is suspending all domestic operations and furloughing staff after the coronavirus pandemic made it tougher to get its business off the ground.
- China’s Pork Prices Rally on Deadly Pig Disease and Import Halts — Concerns in China over reemerging outbreaks of a deadly swine disease at a time when pork imports are expected to slide have pushed prices of the meat to their highest level in two months.
- China’s Playing Out Its End Game in Hong Kong — Does “One Country, Two Systems” still exist?
- China Imports Stuck at India Ports Show Standoff Casualties — Imports from China have been piling up at Indian ports pending government clearances, causing concern that a recent border standoff between the two nations could have an economic fallout that will disrupt supply chains.
- U.S. Hong Kong Sanctions Risk $1.1 Trillion in China Funding — China’s largest banks have $1.1 trillion in dollar funding at stake and face potentially steep fines from U.S. legislation that targets penalizing lenders doing businesses with Chinese officials involved in Hong Kong’s controversial security law, according to Bloomberg Intelligence.
Reuters
- Britain urgently needs to see China law on Hong Kong, says UK PM’s spokesman — Britain urgently needs to see the legislation China passed regarding Hong Kong to determine whether it has breached the joint declaration and then will set out its next steps, a spokesman for Prime Minister Boris Johnson said on Tuesday.
- Hong Kong leader says national security law won’t undermine autonomy — Hong Kong leader Carrie Lam told the main U.N. human rights forum on Tuesday that China’s national security legislation for Hong Kong would fill a “gaping hole” and would not undermine its autonomy.
- China ‘does not share our values’, NATO chief says — NATO Secretary-General Jens Stoltenberg on Tuesday joined international outcry at China’s security law for Hong Kong, saying China was undermining Hong Kong’s autonomy.
- China central bank to cut re-discount, relending rates from July 1: sources — China’s central bank will cut the re-discount and re-lending rates by 25 basis points as of July 1, two sources with direct knowledge told Reuters on Tuesday, in a move that will reduce funding costs for smaller firms and rural sectors.
- India’s Chinese app ban seen jolting $1 billion expansion of ByteDance — An Indian ban on dozens of Chinese apps following a border clash between the two nations has possibly derailed a $1 billion India expansion plan of China’s ByteDance, while also sparking an uproar from users of its popular TikTok video app.
- Four European countries have only Chinese gear in 4G networks, researcher says — Four European countries, including Belgium, use only Chinese gear in their 4G mobile networks and in many large countries more than 50% of equipment comes from China, Danish telecoms research firm Strand Consult said on Tuesday.
- China’s factory activity quickens, but pandemic drags on exporters and recovery — China’s factory activity expanded at a stronger pace in June after the government lifted lockdowns and stepped up investment, but persistent weakness in export orders suggests the coronavirus crisis will remain a drag on the economy for some time.
- China to keep issuing scrap import quotas till end-2020: environment ministry — China’s environment ministry said on Tuesday it would keep up its system of approving import quotas for solid waste, including scrap metal, until the end of 2020, in a move that will soothe concerns over imminent disruption to supply.
- China’s giant Wudongde hydro project begins power generation — China’s massive Wudongde hydropower plant has begun generating power after a trial run, its owner announced, marking the launch of the latest in a series of costly and controversial giant dams on the upper reaches of the Yangtze river.
- China service sector grows at fastest pace in seven months in June: official PMI — Activity in China’s services sector expanded at its fastest pace in 7 months in June, official data showed on Tuesday, suggesting consumer confidence is rapidly recovering even as Beijing ramps up coronavirus curbs after a resurgence in infections in the capital.
Xinhua
- China’s non-manufacturing PMI rises in June — The purchasing managers’ index (PMI) for China’s non-manufacturing sector came in at 54.4 in June, up from 53.6 in May, the National Bureau of Statistics said Tuesday.
- Chinese brands post stronger global presence in 2020: report — Chinese firms are making great strides in brand value on the global playing field, a market report showed Tuesday.
- U.S. video game company to establish Asia-Pacific headquarters in Shanghai — U.S. company Riot Games, one of the world’s leading video game developers and e-sports operators, will locate its Asia-Pacific headquarters in Shanghai, local authorities confirmed.
Other Publications
- AP News: China cuts Uighur births with IUDs, abortion, sterilization — The Chinese government is taking draconian measures to slash birth rates among Uighurs and other minorities as part of a sweeping campaign to curb its Muslim population, even as it encourages some of the country’s Han majority to have more children.
- Barron’s: China’s Electric Car Market Is Struggling. Investors Are Still Bullish. — The industry has welcomed revived sales and several international car makers are seeing the bulk of their revenue come from China while U.S. and European markets remain stagnant. But for domestic and overseas sellers alike, the boomlet in the world’s largest vehicle market is presenting a range of strategy questions in a time with scant precedent.
- CNN: From the Qing Empire to the People’s Republic, China’s worries about separatism run deep — Concerns over separatism can be seen in the hardline policies adopted by Beijing in Xinjiang, Tibet and Hong Kong, as well as an increasingly aggressive stance towards the self-ruled island of Taiwan, which Xi has vowed to unify with the mainland — by force, if necessary. Yet such policies can often backfire. In Hong Kong, in particular, resentment towards Beijing has grown in recent years.
