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
- China’s Plan to Conquer the Moon, Mars and More — This summer the planets favorably align for spacecraft to reach Mars with the least amount of fuel. China is among the countries undertaking the mission while working on bigger ambitions that could one day challenge the U.S.’s leadership in space.
- Hong Kong’s Main Airline Expects $1.3 Billion Loss — Like the rest of the industry, Cathay Pacific Airways has been plunged into crisis by the coronavirus pandemic, which has grounded demand for travel and prompted official restrictions.
- The $52 Trillion Bubble: China Grapples With Epic Property Boom — The Chinese real-estate surge eclipses the one in U.S. housing in the 2000s. Desperate buyers are undeterred by the Covid pandemic, fearing other investments will suffer from the global economic slowdown.
- Barr Warns Company Executives on Pushing Policies at Behest of China — The Attorney General took aim at a range of American companies and industries for what he described as a willingness to accede to authoritarian demands from the Chinese government.
- Some VPN Providers Pull Hong Kong Servers Over Security-Law Fears — At least three providers of virtual private networks, which let internet users circumvent censorship and protect their privacy, are suspending their Hong Kong operations, citing concerns over Beijing’s new national-security law for the city.
The Financial Times
- VW to focus on electric vehicle production in China — German group looks to take advantage after Beijing’s subsidy cuts hit domestic carmakers.
The New York Times
- Be Wary of TikTok, Just Don’t Ban It — There’s good reason to remain skeptical about the Chinese-owned company, but for now it’s one of the best social media platforms.
- China’s Swimwear Capital Can’t Wait for You to Go Back to the Beach — When the pandemic shut down pools and resorts around the globe, life slid to a halt in the seaside town of Xingcheng, a major producer of bikinis and trunks.
- In Coronavirus Vaccine Race, China Strays From the Official Paths — Beijing is offering several vaccine candidates to employees of state-owned companies and the armed forces, while also conducting clinical trials in other countries.
Caixin
- 18 Regions Get Nod to Help Smaller Funding-Starved Banks Replenish Capital — China has allowed these provincial-level authorities to fund recapitalizations by selling special-purpose bonds.
- China’s Banking Regulator Tells Everyone Again That Trust Returns Are Not Guaranteed — In wake of Anxin Trust scandal, CBIRC reiterates that companies cannot even imply that clients will get a set return.
- Credit Suisse Revamps Management of China Venture — Swiss banking giant puts its own people in top positions as it moves toward taking 100% control of partnership that now includes Founder Securities.
- Chinese Banks’ Loan Risks Are Under Control, CBIRC Official Says — Banking regulator moves to defuse rising concerns after bad loans jumped 12.5% this year and commission earlier warned of ‘significant rebound.’
- U.S.-Listed Qutoutiao Dropped From App Stores After Illegal Ad Claim — Company’s stock plummets after report from national broadcaster accuses it of allowing false advertising.
- State Plants $12.7 Billion ‘Green Fund’ on Banks of the Yangtze — Finance Ministry is the biggest stakeholder in the new initiative, with Shanghai also set to play a major role in investment vehicle for environmental projects.
- Central State-Owned Enterprises See 37.7% Drop in Profits in First Half of Year — Profits saw a 5% increase in June, fixed asset investment rose 7.2% in the first six months of 2020.
- TuSimple, Navistar Team to Produce ‘Highly Autonomous’ Trucks by 2024 — Chinese autonomous truck startup TuSimple has reached a strategic agreement with U.S. truck maker Navistar to co-develop self-driving trucks outfitted with Level 4 technology that allows a vehicle to run almost completely independent of human intervention, TuSimple said in a WeChat post on Thursday.
South China Morning Post
- Coronavirus: e-commerce sales of China goods help pick up export slack amid pandemic — Sales of Chinese products to Europe, the United States, Australia, and New Zealand continue to grow through e-commerce channels despite a push by these countries to decouple from China economically.
- China’s regulator seizes control of six insurers, trust firms in a mass nationalisation of private firms to enforce financial discipline — China’s regulator has seized control of six insurers and trusts after finding them in violation of various rules, in the country’s biggest nationalisation of financial companies in decades, as it steps up the enforcement of corporate discipline amid the world’s biggest stock market rally.
- Is China’s second quarter GDP as rosy as it seems? — China has painted a rosy picture of the country’s economic outlook after reporting a stronger-than-expected 3.2 per cent growth rate in the second quarter, but some analysts have said the sum of all official data for the period does not reconcile with the growth figure.
- China in renewed crackdown on app developers for overzealous collection of private data — China has launched a renewed crackdown on smartphone apps that collect user data illegally and has ordered a number of tech companies, including big names such as Alibaba Group Holding and Tencent Holdings, to remove non-compliant apps as soon as possible.
- China promises to strengthen Central Asia ties amid struggle with US for influence — China’s Foreign Minister Wang Yi has promised to enhance strategic ties with Central Asian countries and help them tackle economic and security challenges in the wake of the coronavirus pandemic.
- Battered by Covid-19 and trade war, Hong Kong’s exporters brace for impact as US strips city of trade privileges — The United States’ decision this week to terminate Hong Kong’s preferential status and sanction officials deemed to be obstructing the city’s democratic development is already prompting exporters to look for alternative markets to mitigate their risks.
- TikTok competitor Instagram Reels to debut in US in early August as part of app’s Stories feature — Facebook will soon debut its competitor to TikTok’s popular short-video format to US Instagram users as the Trump administration weighs a countrywide ban on the viral Chinese app.
- US extends Huawei and ZTE clampdown with list of suspect telecoms gear – but government must help small carriers, says Democrat — The US Federal Communications Commission has begun the process of drawing up a list of telecommunications equipment deemed to pose a security risk as the agency continued efforts to limit the reach of Huawei Technologies and ZTE.
- Hong Kong textile giant Esquel, supplier of Nike and Hilfiger, suspends operations at spinning mill as new coronavirus cases spark lockdown of Xinjiang’s capital — Esquel, one of the world’s largest cotton shirt makers, says it will close a mill in Urumqi as the city of 3.5 million people in western China shuts down amid the return of coronavirus.
- TikTok expected to operate as a US company, White House adviser says — A top White House adviser said on Thursday that he expects TikTok to separate from its Chinese owner and operate as an American company amid growing US concerns about the security of the data handled by the short video app.
Bloomberg
- Apple to Gain a New Chinese IPhone Maker During a Trade War — Luxshare Precision Industry Co. is acquiring Wistron Corp.’s iPhone production business in China via a $472 million deal, potentially becoming the first mainland company to win a coveted role assembling Apple Inc.’s device during U.S. trade tensions.
- Nestle Said to Narrow Bidders for Yinlu Foods Unit in China — Nestle SA has narrowed the list of bidders for its Chinese unit Yinlu Foods Group, which could fetch at least $400 million, according to people with knowledge of the matter.
- Hong Kong Gives Nod to Asia’s Biggest Healthcare Listing in 2020 — Chinese clinical research service provider Hangzhou Tigermed Consulting Co. has won approval from the Hong Kong stock exchange for its second listing, which could raise about $1 billion in what would be Asia’s largest health-care listing this year, according to people familiar with the matter.
- IPhone Assembler Joins Wave of Tech Investment in India — Apple Inc. assembly partner Pegatron Corp. is making preparations for its first plant in India, adding to a large influx of foreign tech investments in the country this year.
- Trump’s Hong Kong Action Will Hurt U.S. Businesses, AmCham Says — President Donald Trump’s move to end Hong Kong’s special status under U.S. law will hurt the country’s business interests and deepen pessimism about the Asian financial hub’s future, the American Chamber of Commerce’s local branch said.
- Tesla Keeps Adding China Users With Registrations Hitting Record — Tesla Inc. kept gaining users in China last month, with registrations of its electric vehicles jumping to a record in the world’s largest market as the coronavirus outbreak receded.
- Three Gorges Said to Lead Bidding for X-Elio Spanish Assets — China Three Gorges Corp. is emerging as the leading bidder for Spanish solar park assets owned by X-Elio Energy SL, in what could become one of the few Chinese acquisitions in Europe this year, people familiar with the matter said.
Reuters
- Volkswagen expects single-digit sales decline in China this year — Volkswagen AG said on Friday it expects its China sales to fall a single-digit percent this year as new sport-utility vehicles and premium models help it recover from a sales slide in the world’s biggest auto market.
- China to levy anti-dumping duties on U.S. propanol from July 18: commerce ministry — China will impose anti-dumping duties on imported propanol, used as a printing ink solvent for food packaging and to make antibiotics, from the United States starting July 18, the commerce ministry said on Friday.
- China to keep benchmark lending rate unchanged for 3rd straight month in July: Reuters poll — China is expected to keep its benchmark lending rate steady for the third straight month at its July fixing on Monday, a Reuters survey showed, encouraged by a stronger-than-expected rebound from the coronavirus crisis.
- Burger King, GM venture criticised on China consumer rights show — U.S. fast food chain Burger King and a car manufactured by a General Motors (GM) joint venture were picked out for criticism on Thursday by China’s state television station in its high-profile annual show on consumer rights.
Xinhua
- China to become “export destination country number one” for Germany: IW — China was on its way to become “export destination country number one” for the German economy as the COVID-19 crisis was hitting global trade, according to a study published by the German Economic Institute (IW) on Thursday.
- China’s Hunan sees rising foreign trade in H1 — Central China’s Hunan Province saw its foreign trade rise 13.4 percent year on year to over 208 billion yuan (about 29.7 billion U.S. dollars) in the first half of this year, local customs said Friday.
- China’s retail sales down 3.9 pct in Q2 — China’s retail sales of consumer goods declined 3.9 percent year on year in the second quarter of this year, the National Bureau of Statistics said Thursday.
Other Publications
- National Post: Chinese government-owned firm wins $6.8M contract to supply security equipment to Canada’s embassies — The contract for conveyor-style X-ray machines was awarded to Beijing-based Nuctech Company, a company owned by the Chinese government and founded by the son of former General Secretary of the Chinese Communist Party, Hu Jintao.
- Cnet: How China is trying to create a new internet in its own image — The New IP plan’s promised improvements may never arrive, but China could reshape the internet in other ways that today’s tech powers don’t like.
- The Economist: How big is China’s economy? Let the Big Mac decide — Our index reckons China’s GDP is bigger than the World Bank thinks.
- The Economist: China v America — Nineteen years ago an unknown Chinese company set up its first European sales offices, in a suburb of Frankfurt and an English commuter town, and started bidding to build telecoms networks. Today Huawei symbolises the daunting rise of China Inc—and a global trading system in which trust has collapsed.
