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
- Taiwan to Ease Limits on American Pork and Beef, Smoothing Path for Trade Talks — Taiwanese President Tsai Ing-wen will ease restrictions on imports of U.S. beef and pork, clearing the biggest obstacle to free-trade talks with Washington.
- State Banks Are the Sin-Eaters of China’s Economic Recovery — As China’s recovery from the pandemic continues, the burden of the country’s economic support measures is increasingly falling on its commercial banks.
- Chinese Covid-19 Vaccine Maker in Talks With Countries on Early Approval — CanSino is in talks with several countries to secure emergency approval for an experimental coronavirus vaccine before large-scale safety and effectiveness trials are completed, according to a company executive.
- The Real China Reshoring Isn’t What You Think — Foreign brands need to retool for more Chinese spending at home.
- Chinese Bond Issuers Bypass U.S. Investors — Chinese companies are borrowing less from U.S. bond buyers, as the deep pools of dollars held by investors in Asia means the region can be more self-reliant for hard-currency funding.
- World Bank Halts Report on National Competitiveness Rankings Amid Concerns of Data Manipulation — The bank is pausing publication of its flagship report on business competitiveness after data related to China, Azerbaijan, the United Arab Emirates and Saudi Arabia appeared to be inappropriately altered.
- China’s Slowing Growth Means PE Firms Must Change to Succeed: Report — Investor appetite for private equity in China remains high but the global economic slowdown is forcing a change in the playbook for firms that have relied on the nation’s growth for strong investment returns, consulting firm McKinsey & Co. said in a new report.
- Xpeng, a Chinese Rival to Tesla, Raises $1.5 Billion in U.S. IPO — The American depositary shares of the electric-car maker leaped 41% on the first day of trading on the NYSE.
- China Coast Guard Seizes Hong Kong Activists Fleeing to Taiwan — China’s coast guard detained a group of Hong Kong activists after intercepting a boat in the South China Sea en route to Taiwan.
- Why TikTok’s CEO Is Quitting After Three Months — Kevin Mayer is leaving the company as the Trump administration has pushed for its Chinese owner to sell its U.S. operations
- TikTok’s Founder Wonders What Hit Him — Zhang Yiming, 37 years old, admired Silicon Valley and always wanted to build a global tech company, not a Chinese one. He succeeded, only to find himself caught in today’s U.S.-China standoff.
- Ant’s Giant IPO Avoids U.S. Markets but Embraces U.S. Banks — When China’s Ant Group, the financial-technology behemoth controlled by billionaire Jack Ma, goes public later this year, it will be a major payday for Citigroup, JPMorgan Chase and Morgan Stanley.
The Financial Times
- Hong Kong activist Joshua Wong says he expects to be arrested at any time — Pro-democracy campaigner fears he will be sent to one of Beijing’s ‘black jails’.
- Chinese military drill ratchets up tension with Washington — PLA launches missiles in South China Sea capable of hitting US warships and military bases.
The New York Times
- Why Does Walmart Want TikTok? Looking to China May Explain — The app’s Chinese version, Douyin, is trying to become a mobile marketplace where video stars promote products. That could be a model for the U.S. retail giant if it acquires TikTok.
Caixin
- China’s Worst Brokerage Isn’t Getting Any Better — N-Securities, which has links to a now-deceased tycoon, gets a D rating from the regulator for the second year running amid concerns over its ability to control risks.
- PetroChina Crashes Into Red in First Half on Plunging Oil Prices, Demand — CNPC listed arm’s revenue plunged 22.3% amid fall in oil prices and slow sales.
- Beijing-Shanghai Rail Operator’s Profit Plunge Accelerates as Riders Stay Away — Operator of one of China’s most traveled routes saw its revenue plunge 44% in the second quarter, more than a 35% drop in the previous quarter.
- National Broadband Firm Takes Shape With $3 Billion From Alibaba, State Grid — The new company will likely offer paid video, broadband and 5G services.
- Gene Giant BGI Profit Jumps Seven-Fold on Virus-Testing Surge — Leader in developing Covid-19 test kits built ‘Fire Eye’ labs in more than 10 Chinese cities and exported tests for 35 million people outside the country.
- Watch Out Telcos and Internet TV Providers: A Major New Competitor is Coming — A big new kid is coming to China’s telecoms block, with the imminent formation of a national company that could offer 5G wireless, broadband and paid TV services.
- Telecom Operator Bouygues To Dismantle 3,000 Huawei Antennas in France by 2028 — French telecom operator Bouygues Telecom will dismantle 3,000 Huawei-made mobile antennas in France’s highly populated areas by 2028, the latest blow to the besieged Chinese tech giant which is the target of countries labeling its 5G equipment as a potential national security threat.
- U.S. Firms in China Want Clarity on Trump WeChat Ban — Three-and-a-half weeks before it is set to come into effect, U.S. businesses still have no idea whether President Donald Trump’s looming WeChat ban will apply to their China operations.
South China Morning Post
- Hong Kong’s Octopus aims to spread tentacles with contactless card for paying fares in mainland China — Hongkongers will for the first time be able to use contactless Octopus cards to pay for most public transport fares in mainland China by as early as next year, according to the company’s outgoing CEO.
- Why China’s diplomatic push may not be enough to secure EU investment deal — Despite a recent charm offensive by senior Chinese diplomats, the chances of wrapping up a landmark investment deal with the European Union remain uncertain, analysts said.
- China’s economic future is being influenced by nine economists, but what did they tell Xi Jinping this week? — President Xi Jinping this week assembled a group of nine economists as part of the process for the development of Beijing’s strategy for the next five years, with a new approach to urbanisation, addressing the rapidly ageing of the population and moves to catch up to the west in technological areas seen to be high on the list of economic and social priorities.
- Hong Kong is the key to unlock China’s stocks, where global funds may in time own 25 per cent of market value, Charles Li says — Global investors may eventually hold as much as one fifth, or even up to a quarter, of China’s stock market value over time, and Hong Kong will be the vital link for that access, said the architect of the cross-border investment channel known as the Stock Connect.
- New F-16 fighter jet maintenance centre gives Taiwan an edge in defence and striking ability: President Tsai — The first F-16 fighter jet maintenance and service centre in the Indo-Pacific has opened in Taiwan in collaboration with a major US defence contractor, a move certain to infuriate mainland China.
- Mystery lawyer set to bail out Chinese scientist Tang Juan accused of visa fraud in US — A Chinese researcher jailed in California is on the cusp of being released because an anonymous benefactor stepped up to post bail and offered to house her. Her case was also helped by the judge handling it, who on Thursday rejected the prosecutors’ argument that she was part of a “grand conspiracy” of international espionage.
- Taiwanese chip designer MediaTek seeks licence to supply Huawei amid US sanctions — Semiconductor designer MediaTek has applied with the US government for a licence to continue supplying chips to Huawei Technologies after new US sanctions take effect on September 15, the Taiwan-based company said on Friday.
- Bouygues to remove 3,000 Huawei mobile antennas in France by 2028, in line with government decision — Bouygues will replace 3,000 Huawei-made mobile antennas in France by 2028 following a decision by the country’s authorities to remove equipment made by the Chinese company from highly-populated areas, Bouygues’s deputy CEO said on Thursday.
- Property agent Midland posts worst interim results in four years as Hong Kong market hammered by coronavirus, social unrest — Midland Holdings, one of Hong Kong’s largest property agents, lost HK$24.3 million (US$3.1 million) in the first half, a reversal of the HK$94 million profit it reported a year ago and its worst interim results since 2016.
- ByteDance tells TikTok to draw up US shutdown contingencies as Donald Trump’s ban on Chinese app looms — China’s ByteDance told engineers of its popular short-video app TikTok this week to make contingencies should it need to shut down its US operations, even as it works toward divesting them, people familiar with the matter said on Thursday.
- China’s semiconductor drive stalls in Wuhan, exposing gap in hi-tech production capabilities — At an idle construction site in western Wuhan, China’s steep climb to semiconductor independence is clear for all to see.
Bloomberg
- Yum China Said to Win Nod for Mega Hong Kong Second Listing — Yum China Holdings Inc. has received the green light from the Hong Kong stock exchange for its proposed second listing, people familiar with the matter said, adding to the list of billion-dollar share sales in the Asian financial hub.
- Microsoft, Walmart Offer Joint TikTok Bid, Vying With Oracle — Microsoft Corp. is teaming up with Walmart Inc. in a contest against Oracle Corp. to buy the U.S. assets of the popular video-sharing app TikTok from China’s ByteDance Ltd.
- Xiaomi’s Stock Surge a Big Reversal After Post-IPO Struggles — Everything now appears to be going right for Xiaomi Corp., the Chinese smartphone maker whose stock failed to gain traction following its 2018 initial public offering.
- China’s IPO Mania Creates Three New Billionaires in One Week — The pace of wealth creation in China just reached a whole new level.
- Fosun Chief Sees Profit Rebound to ‘Normal’ Levels Next Year — The billionaire founder of one of China’s biggest conglomerates said profit at his insurance, drugs, tourism and leisure group will rebound strongly next year from a 2020 plunge caused by the pandemic.
- China’s Missiles Warn U.S. Aircraft Carriers to Stay Away — China’s latest volley of missile launches into the world’s most hotly contested body of water served as a warning to two key U.S. targets: aircraft carriers and regional bases.
- Hong Kong’s Battered Dividend Investors Go For Growth Stocks — Dividend investors are having to rethink their strategies in Hong Kong’s stock market, as companies mired in a pandemic-driven recession are slashing payouts more than before.
- Nippon Steel Warns China to Tighten Grip on Global Market — China is set to strengthen its grip on the global steel market as its economy recovers from the coronavirus pandemic faster than rivals and domestic mills expand into higher-quality products, according to Japan’s top producer.
- The U.S. and China Both Know How to Weaponize Trade — Here are two notable numbers from this week: $300 billion of semiconductors and 40 million tons of soybeans.
- Single People Will Make Up 30% of Car Buyers in China by 2030 — Almost one third of people shopping for a car in China by 2030 will be single, changing how automakers frame everything from advertising to design.
- U.S. Top Farm Negotiator Tones Down Approach to China Trade Deal — When it comes to measuring China’s compliance with promises to buy more American farm goods as part of a landmark trade pact between the world’s two biggest nations, the U.S. top agriculture negotiator seems to have mellowed out.
- China’s Huge Floods Ramp Up Climate Change Pressure on Economy — Beijing is failing to keep up with the more frequent and devastating floods that climate change is bringing.
- China’s Local Officials Cut Color-Printing, Travel to Save Cash — Don’t expect a pay raise or bonus. No color printing. Turn off the lights when leaving the office. Travel less.
- China’s Economic Rebound Picks Up Speed on Car and Home Sales — China’s economy picked up speed in August as a strong industrial sector and stock market, better business confidence and home and car sales combined to boost the first economy globally to emerge from the Covid-19 slump.
- Facebook Allows Ads to Be Served to Mainland China Users — Facebook Inc. has been allowing advertisers to target users in mainland China, despite a ban on the company’s social networks there that prohibits citizens from accessing the apps.
Reuters
- Europe and China must keep conversation going: Merkel — Europe and China should keep the conversation going on topics on which they can cooperate, such as climate change, but also on difficult topics on which they do not agree, such as Hong Kong, German Chancellor Angela Merkel said on Friday.
- Defying trade tensions, Chinese buyers snap up Indian steel — India’s steel exports more than doubled between April and July to hit their highest level in at least six years, boosted by a surge of Chinese buying in defiance of tensions between Beijing and New Delhi.
- Nestle says will sell China water business to Tsingtao Brewery Group — Nestlé SA said on Friday it had agreed to sell its China water business to Tsingtao Brewery Group as part of a strategic cooperation agreement with the Chinese beer maker.
- Sinovac’s coronavirus vaccine candidate approved for emergency use in China- source — Sinovac Biotech Ltd’s coronavirus vaccine candidate CoronaVac was approved in July for emergency use as part of a programme in China to vaccinate high-risk groups such as medical staff, a person familiar with the matter said.
- China says beef imports suspension unrelated to China-Australian relations — China said on Friday the suspension of beef imports from an Australian firm is an individual case and has nothing to do with relations between the two countries.
- Top Philippine diplomat recommends scrapping deals with blacklisted China firms — The Philippines’ foreign minister said on Friday he would recommend the government terminates deals with Chinese firms blacklisted by the United States for their roles in constructing and militarising artificial South China Sea islands.
- China’s factory activity likely grew at slightly faster pace in August: Reuters poll — China’s factory activity likely expanded at a slightly faster pace in August, fuelled by rising infrastructure spending and improving global demand, a Reuters poll showed on Friday, as the Chinese economy continues to recover from the coronavirus crisis.
- Crime networks profit from China plastic trash import ban: Interpol — Criminal networks are smuggling plastic trash from the West to illegal recycling plants in Asia, profiting from a 2018 ban on waste imports in China where the bulk of used plastic was previously processed, Interpol said on Friday.
- China halts beef imports from Australian firm over banned substance: customs — China has suspended imports of beef from Australian firm John Dee Warwick after it detected a banned substance in some of the company’s products, the country’s customs administration said.
- BioNTech, China’s Fosun to potentially supply 10 million doses of COVID-19 vaccine — German drug developer BioNTech SE on Thursday announced a potential deal with Shanghai Fosun Pharmaceutical Group Co Ltd to supply 10 million doses of their COVID-19 vaccine candidate to Hong Kong and Macau.
- Exclusive: Indian state refiners halt oil imports from Chinese cos, sources say — Indian state refiners have stopped buying crude oil from China-linked companies, three sources said, after New Delhi’s recent regulation aimed at restricting imports from countries that it shares a border with.
- Exclusive: Argentine barley rushes to China as Australia spat reshuffles global trade — Argentine barley shipments have started streaming toward China after a three-year lull as a trade conflict between Asia’s top buyer and main supplier Australia changes global supply flows of the grain used for livestock feed and beer.
Xinhua
- Huawei to complete technology park in Angola by end of 2021 — Huawei Angola expects to complete a technology park worth 60 million U.S. dollars by December 2021, the Chinese telecom company said here Thursday.
- Economic Watch: China nurtures fertile ground for foreign investors — Despite a coronavirus-triggered recession looming large for the world, China remains a gold mine for global investors amid the country’s unswerving efforts to create a better business environment with easier market access, more benefits, and improved services.
- Chinese automakers’ profits down 5.9 pct in Jan-July — China’s auto manufacturing sector saw the decline in its profits narrow in the first seven months of 2020 as the auto market maintained recovery momentum, industry data showed.
- SF Airlines opens Wuhan-Osaka int’l air cargo route — SF Airlines, China’s leading air cargo carrier, opened a new international cargo route linking central China’s Wuhan and Japan’s Osaka Friday, the company said.
- Tianjin Container Freight Index up 1.63 pct — China Tianjin Container Freight Index (TCI), an indicator of northern China’s international container freight rates, stood at 581.78 points on Friday, up 1.63 percent compared with the previous working day.
- V-shaped recovery underway in China: BHP Group CEO — A “pretty solid V-shaped recovery” is underway in China, BHP Group CEO Mike Henry has said on CNBC’s “Squawk on the Street” business show.
Other Publications
- Foreign Policy: Big Tech Embraces New Cold War Nationalism — China’s rise has pushed Silicon Valley away from the values it once claimed to hold.
- POLITICO: Trump’s tough talk on China faces harsh trade realities — Even the president’s allies say an economic divorce isn’t in America’s interests. A President Biden would likely reach the same conclusion.
- The Economist: Meet Guo Wengui, Steve Bannon’s Chinese-exile friend — On August 20th, shortly after Steve Bannon was arrested aboard a yacht in Long Island Sound in connection with an alleged charity fraud, the owner of the yacht, a property developer named Guo Wengui, posted a video online intimating that the Chinese Communist Party (CCP) had orchestrated the downfall of the former White House adviser. Mr Guo, who fled China in 2014, has established a formidable online persona as an outspoken dissident who, in his telling, will bring down the CCP.
- Nikkei Asian Review: China’s banks expect biggest profit drop in over 10 years — Faster provisions against pandemic loan losses seen cleaning up balance sheets.
- Nikkei Asian Review: China’s local governments ride to the rescue of EV startups — While Nio takes bailout to relocate, Xpeng and Li Auto IPOs raise billions.
