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 National-Security Law Reaches Into Harvard, Princeton Classrooms — China’s new national-security law means classes at some elite U.S. universities will carry a warning label this fall: Material may be considered politically sensitive by Beijing. And schools are weighing measures to try to shield students and faculty from prosecution by Chinese authorities.
- Trump Administration Shifts Course on Russian Arms Talks, Easing Insistence China Join Now — After months of insisting that China join nuclear arms control talks with the U.S. and Russia, the Trump administration signaled it will seek to negotiate a separate framework with Moscow and see if Beijing can be brought on board later.
The Financial Times
- Emmanuel Macron’s low profile on China is strategic — Like Britain, France’s president is curbing Huawei — but without provoking Beijing’s anger.
- Chip and phone supply chain shaken as Huawei faces mortal threat — New US sanctions bar Chinese telecom equipment maker from buying semiconductors.
- Asia chipmaker stocks dive after Huawei ‘death sentence’ — New US sanctions on Chinese group wipe billions of dollars off tech shares.
- Why China’s economic recovery from coronavirus is widening the wealth gap — A lack of support has left lower-income workers unable to spend even as richer households splash out.
Caixin
- China’s Top Court Issues Guidelines to Deal With IPO Crime on ChiNext — As Shenzhen-based board rolls out new listing mechanism, guidance aims to ensure courts are equipped to deal with illegal activity.
- MSCI Launches Two China Climate Change Indexes — New benchmarks weight stocks by scores measuring movement toward lower-carbon economy in response to investor demand.
- China’s Early-Season Rice Production Rises for First Time in Seven Years — Official data show yields have increased 3.9% year-on-year.
- China Tells Six Banks to Allocate Discount Loans to County-Level Governments — Top economic planning commission moves to ensure funding for urbanization projects such as 5G networks and internet of things projects as cabinet bolsters pandemic-ravaged economy.
- Taiwan Stops Streaming Services From Tencent Video, iQiyi — Commerce regulator bans all Chinese mainland-based providers of TV-style programming over the internet effective Sept. 3.
- Online Payment Platform PayPal Appoints First China CEO — In a sign that PayPal is expected to try and consolidate its reach into China since acquiring a majority stake in locally-based Gopay in December and reaching a deal with UnionPay in January, the third-party payment giant announced on Aug. 17 the appointment of Chinese fintech executive Hannah Qiu to the position of senior vice president and chief of the China region.
- China Telecom’s First-Half Net Profits Up Just 0.3% Despite Expansion in Mobile Subscribers — China Telecom, one of the country’s three biggest telecom companies, has released its 2020 interim earnings report, which showed that the company’s revenues and net profits in the first half of the year were roughly flat from the same period in 2019, despite a sizable increase in its mobile subscribers.
- Chinese online English education firm Palfish raises $120m in Series C round — Online children’s English learning platform Palfish, also known as Banyu in China, has raised $120 million in two Series C funding tranches, the company said in a WeChat statement on Monday.
South China Morning Post
- Hong Kong jobless rate edges down to 6.1 per cent but threats remain, welfare chief warns — Hong Kong’s unemployment rate edged down marginally to 6.1 per cent in July amid a government wage subsidy, but the welfare minister warned on Wednesday that the jobless threat had yet to go away.
- China to power world economy for several years as coronavirus recovery in developed countries lags, miner BHP says — China will be the lone major economy to grow this year, while developed economies will commence a slow recovery in 2021 without any likelihood of returning to pre-pandemic conditions before 2023, Anglo-Australian mining giant BHP said on Tuesday.
- Mainland Chinese hackers attacked government agencies to steal data, Taiwan says — Four mainland Chinese hacking groups have attacked at least 10 Taiwanese government agencies and 6,000 email accounts of officials in a bid to steal important information, according to the self-ruled island.
- Hong Kong’s stock exchange operator posts record first-half profit amid a flurry of mega IPOs, higher turnover — The operator of Hong Kong’s stock exchange reported record first-half and quarterly profit on the back of rising market turnover and a wave of mainland Chinese tech giants seeking listings in the city amid rising political tension between Washington and Beijing.
- Coronavirus, economic slump force mainland Chinese owners to dump their luxury Hong Kong properties at steep losses — Some heavily indebted mainland Chinese owners have been forced to sell their luxury apartments in Hong Kong at huge losses or discounts, as the economic slump at home takes a toll and a fresh wave of coronavirus makes them question the wisdom of holding on to the assets in the city.
- Belarus protests cast shadow over China’s Belt and Road ambitions as Lukashenko refuses to relinquish power — China’s growing influence in Belarus through its Belt and Road Initiative could be derailed as mass demonstrations triggered by a disputed presidential election grip the Eastern European country, analysts say.
- Thousands of crime gangs targeted in China crackdown — More than 3,000 organised crime gangs – including a major Shenzhen-based syndicate with close ties to triads in Hong Kong – have been swept up in a nationwide crackdown, according to China’s top law enforcement body.
Bloomberg
- Trump Cancels China Talks, Raising Questions About Trade Deal — President Donald Trump said he called off last weekend’s trade talks with China, raising questions about the future of a deal that is now the most stable point in an increasingly tense relationship.
- China Stocks Post Biggest Loss in Three Weeks on U.S. Tensions — Chinese stocks slumped, led by biotech shares, amid growing concern over U.S.-China relations.
- H.K. Jobless Rate Unexpectedly Fell in July Amid Virus Wave — Hong Kong’s unemployment rate fell in July to halt nine straight months of increases as more people returned to the workforce even as the city’s economy grappled with a resurgent third wave of coronavirus infections and renewed social-distancing measures.
- Billionaire’s Group Loses Cirque du Soleil Stake in New Blow — Fosun International Ltd. is poised to lose its 20% stake in Cirque du Soleil Entertainment Group, the latest in a series of failed overseas deals for the Shanghai-based insurance, health care and tourism conglomerate.
- China Plans to Boost Cobalt Reserves as Virus Spurs Supply Risks — China’s state stockpiling agency has drawn up plans to buy 2,000 tons of cobalt after the coronavirus pandemic highlighted the fragility of supplies of the strategic mineral.
- U.S. Warns Colleges to Divest China Stocks on Delisting Risk — The U.S. State Department is asking colleges and universities to divest from Chinese holdings in their endowments, warning schools in a letter Tuesday to get ahead of potentially more onerous measures on holding the shares.
- Iron Ore’s Strength Seen Facing Challenge as Supply Risks Fade — Iron ore’s stunning rally this year, underpinned by China’s demand for the steel-making raw material, risks slowing as miners ramp up output.
- How Huawei Landed at the Center of Global Tech Tussle: QuickTake — China’s biggest tech firm, Huawei Technologies Co., has risen to global prominence as a leader in 5G, the much ballyhooed, next-generation wireless technology.
- Hong Kong Bourse Rides Trading, IPO Surge to Record Profit — Hong Kong Exchanges & Clearing Ltd. posted a 1% gain in profit, benefiting from a spate of high-profile Chinese stock listings and a pick up in trading as the pandemic and political tensions stoked volatility.
- U.S. Curbs on Huawei May Impact South Korea’s Recovery via Chips — New U.S. restrictions against Huawei Technologies Co. threaten to weigh on South Korea’s economy, which is counting on chip exports to China to drive its rebound from the coronavirus pandemic.
- China’s Tahoe Is Said to Mull $300 Million Health Care Unit Sale — China’s Tahoe Investment Group Co. is weighing a sale of its U.S. health care unit that could fetch $300 million to $400 million, according to people with knowledge of the matter.
- State Parent of BMW’s China Partner Faces Mounting Debt Woes — There’s mounting scrutiny over the state-owned parent of BMW AG’s joint venture partner in China, Brilliance Auto Group Holdings Co. Investors are increasingly concerned about the Liaoning-based firm’s capacity to juggle its debt load as the pandemic weighs on profits.
- China’s Huawei Prospers in Africa Even as Europe, Asia Join Trump’s Ban — Even as Europeans and Asians join Trump’s ban, the Chinese company continues to prosper from the continent’s move toward 5G.
- Chinese AI Giant Blacklisted by Trump Thrives in Virus Era — The future of China’s largest artificial intelligence company was thrown into question last year when it was blacklisted by the Trump administration. Today, SenseTime is thriving with growing demand for its facial recognition software, especially as local governments in China adopt its technology to battle the coronavirus.
- Speculation Spurs 400% Gains in Chinese Duty-Free Stocks — A frenzy for Chinese stocks linked to tax-free shopping has been sparked by international travel curbs and a drive to direct luxury spending back home.
- Chinese Buy Up Real Estate But Hold Off on Dining Out, Gambling — Chinese households are putting more of their savings into property but still holding back on discretionary spending, as a slow and fragile economic recovery keeps confidence in check.
- Beauty Giant Natura Eyes China Expansion as Online Sales Surge — Brazilian cosmetics maker Natura & Co Holding SA is looking to increase its exposure to China after purchasing Avon Products Inc. earlier this year, according to its chief executive officer.
Reuters
- GM says over 40% of new China launches in next five years will be EVs — General Motors Co is planning an electric car offensive in China with more than 40% of its new launches in the country over the next five years set to be electric vehicles (EVs), the U.S. carmaker said on Wednesday.
- China CNOOC’s interim profit tumbles, cuts costs further — China’s national offshore oil and gas producer CNOOC Ltd said first-half profit slumped by nearly two-thirds to the lowest since December 2017, as the coronavirus pandemic battered energy demand and sent oil prices to historical lows.
- China’s top diplomat to visit South Korea amid stalled North Korea talks, coronavirus outbreaks — South Korea said China’s top diplomat plans to visit for talks with new national security adviser Suh Hoon this week, amid the coronavirus pandemic that undercut bilateral exchanges and stalled denuclearisation negotiations involving North Korea.
- Taiwan says China behind cyberattacks on government agencies, emails — Taiwan said on Wednesday hacking groups linked to the Chinese government had attacked at least 10 government agencies and some 6,000 email accounts of government officials in an “infiltration” to steal important data.
- Exclusive: GM bets on electric Cadillacs and micro-vans to reverse China slide — General Motors is overhauling its Chinese line-up with a greater emphasis on electric cars and smart-driving technology to stem a slide in sales after more than two decades of growth in a country that contributes nearly a fifth of its profit.
- China seen keeping benchmark LPR unchanged for fourth straight month: Reuters survey — China is widely expected to keep its benchmark lending rate steady for the fourth month in a row at its August fixing on Thursday as the economy continues to recover from the coronavirus crisis, a Reuters survey showed.
- No new U.S.-China trade talks scheduled: White House chief of staff — No new high-level trade talks have been scheduled between the United States and China but the two sides remain in touch about implementing a Phase 1 deal, White House Chief of Staff Mark Meadows told reporters aboard Air Force One on Tuesday.
- China government-backed class actions take aim at corporate fraud – with limits — China wants its army of mom-and-pop investors to take corporate fraudsters to task with landmark class action lawsuits, but heavy government involvement means they are not likely to be as common as in other legal systems, lawyers and investors said.
- BHP falls short of expected profit, warns of slowing growth outside China — BHP Group on Tuesday said it expects most major world economies except China to bear the brunt of a coronavirus-led downturn this year, reporting a 4% drop in annual profit that missed analysts’ estimates.
Xinhua
- Xinhua Headlines: New port opens to boost interconnectivity in Greater Bay Area — A new port to facilitate travel between Macao and Zhuhai, south China’s Guangdong Province, was officially put into use Tuesday, a new step to boost development of the Guangdong-Hong Kong-Macao Greater Bay Area.
- China’s fiscal revenue declines in Jan.-July — China’s fiscal revenue in the first seven months of the year came in at 11.47 trillion yuan (1.66 trillion U.S. dollars), down 8.7 percent year on year, official data showed Wednesday.
- Japan’s trade surplus rebounds in July, increased demand from China helps balance sheet — Japan posted its first goods trade surplus in four months in July, as while exports remained largely hamstrung owing to the global coronavirus pandemic continuing to zap demand, a sharp rise in those to China helped the balance sheet, the government said in a report on Wednesday.
- Uniqlo opens 19 chain stores in China — Uniqlo, a clothing brand under the Japan-based Fast Retailing Group, opened 19 chain stores in China on Friday, marking a further step into the Chinese market.
Other Publications
- Forbes: Shoppable Livestreaming Is The Rage In China. Will It Take Off In The U.S.? — The pandemic has brought new attention to Shoppable livestreaming because it offers the ability for discovery, browsing, sharing of opinions and experiences with friends while still protecting hygiene and safety that consumers care so much about right now.
- Washington Post: China’s Thirst for Coal is Economically Shortsighted and Environmentally Reckless — Carbon emissions have fallen in recent months as economies have been shut down and put into hibernation. But whether the world will emerge from the pandemic in a stronger or weaker position to tackle the climate crisis rests overwhelmingly on the decisions that China will take.
- Foreign Policy: It’s Time for Western Universities to Cut Their Ties to China — In their crass hunger for Chinese money, universities have become China’s fifth column in the West.
- Nikkei Asian Review: Huawei and ZTE slow down China 5G rollout as US curbs start to bite — Huawei Technologies and ZTE, China’s two largest telecom equipment providers, have slowed down their 5G base station installation in the country, the Nikkei Asian Review has learned, a sign that Washington’s escalating efforts to curb Beijing’s tech ambitions are having an effect.
- Nikkei Asian Review: China reignites coal project in Pakistan after Australia spat — As tensions grow between China and Australia, the superpower’s main coal supplier, work is being stepped up in Pakistan’s largest coalfield on a project conceived to feed local power plants, but which some experts believe might provide Beijing with an option for an alternative source of coal.
- The Diplomat: Will China Change Its Lebanon Strategy? — As Lebanon reels, China’s emphasis on befriending a corrupt elite risks alienating it from the local population.
- POLITICO: Tencent hires its first lobbyist — Tencent, the Chinese company behind the popular app WeChat, has hired its first Washington lobbying firm as the Trump administration moves to crack down on the company. Tencent hired Roberto Gonzalez, a former Treasury Department deputy general counsel during the Obama administration who’s now a partner at Paul, Weiss, Rifkind, Wharton & Garrison, the day after the administration announced new restrictions on the company earlier this month, according to a newly filed disclosure. It’s the first time Gonzalez has registered to lobby.
