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.
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The Wall Street Journal
- In Global Covid-19 Vaccine Race, Chinese Shot Receives First Foreign Approval — The United Arab Emirates has become the first country outside China to approve emergency usage of a Chinese Covid-19 vaccine candidate, in a vote of confidence for a state-backed drugmaker racing global rivals to stop the spread of the coronavirus.
- The Chinese Are Spending Again — China’s consumers have emerged from their protective crouch. That removes one worry about the recovery but could stoke Sino-U.S. tensions.
- Chinese Companies in Pentagon Spotlight Hire Global Banks to Sell Dollar Bonds — ChemChina and Three Gorges, designated by the U.S. Defense Department as “Communist Chinese military companies,” are pursuing bond deals with the help of Western banks.
- German Stocks Show Strength in Europe’s Battered Market — German stocks have outpaced European rivals since the coronavirus-driven market selloff bottomed out in March, reflecting the advantages of strong balance sheets and exports to China.
- China’s Economy Picks Up Speed as Shoppers, Moviegoers Return — China’s economic recovery accelerated in August, with retail sales, the last noncooperative component, returning to pre-coronavirus levels by showing their first month of growth this year.
- Oracle Deal With TikTok to Undergo U.S. National Security Review — The Treasury Department said it would review an agreement for Oracle and others to revamp TikTok’s U.S. operations with the aim of avoiding a ban of the popular video-sharing app because of its Chinese ownership.
- TikTok Strives to Settle Privacy Lawsuit as Oracle Deal Nears — Lawyers for TikTok are pushing to settle a lawsuit in Illinois alleging the video-sharing app improperly collects data from its users, many of them underage, as its Chinese parent company closes in on a deal with Oracle.
- U.S. Blocks Chinese Imports Over Alleged Forced Labor Practices — The Trump administration banned cotton apparel, computer parts and other imports from companies and suppliers that allegedly relied on forced and imprisoned laborers in China’s Xinjiang region.
- GNC Scraps Auction, Going Ahead With Sale to China’s Harbin — The vitamin retailer is moving ahead with a sale to China’s Harbin Pharmaceutical after no other offers emerged, even as the deal drew scrutiny from Sen. Marco Rubio.
- Japan’s Next Leader to Be Thrust Into Clash Over China — Yoshihide Suga, who is expected to replace Shinzo Abe as Japan’s prime minister, will have to balance the country’s U.S. alliance with its business interests in China.
The Financial Times
- Chinese exports benefit from west’s Covid stimulus response — Developed nations’ fiscal policies have increased global demand for ‘Made in China’ products.
- Chinese retail sales grow for first time since coronavirus outbreak — Rise in consumer spending is latest indicator of wider economic recovery.
- Luxembourg strengthens status as offshore renminbi centre — Grand Duchy has become a preferred destination for funds investing into China.
- China’s retraining campaign offers scant prospects for the unemployed — Programme was meant to upgrade skills of millions of workers who lost jobs during the pandemic.
- Arm deal is drawing UK into damaging US-China tech war — Britain needs firm commitments from American buyer.
- Huawei courts app makers despite sanctions threat to its devices — Chinese tech group urges developers to continue working with it as rivals encroach on smartphone market share.
- Reunified Pakistani Taliban threatens China’s Belt and Road project — Factions regroup under an al-Qaeda umbrella with foothold near Xinjiang.
The New York Times
- TikTok’s Proposed Deal Seeks to Mollify U.S. and China — The Chinese-owned app designed a compromise to satisfy U.S. security concerns. The terms are now under review by the Trump administration.
- TikTok Owner’s Big Reason to Strike a U.S. Deal: China Is Slowing — ByteDance’s founder has long urged his employees to think beyond the world’s No. 2 economy, where growth is easing and competition is rising.
Caixin
- Economic Recovery Spurs Yuan to 16-Month High — Chinese currency strengthens against dollar in both offshore and onshore trading.
- In Depth: China Chip Sector Has the Money, Now It Just Needs the Workers — New job postings far outstrip supply in sector flush with cash as Beijing tries to become more self-sufficient in semiconductors.
- Nvidia Confident U.S.-China Tech War Won’t Stop It From Buying Arm — ‘Regulators love to see pro-competitive dynamics,’ chipmaker says of proposed $40 billion deal to buy U.K.-based chip designer.
- Loss Making Evergrande’s Electric Vehicle Subsidiary to Raise $516 Million from Investors Including Tencent — China Evergrande New Energy Vehicle Group, a subsidiary of real estate conglomerate China Evergrande Group, is bringing a group of big-name investors including Tencent, Sequoia Capital and Didi Chuxing on board through a share sale which should raise HK$4 billion ($516 million).
- Kai-Fu Lee’s Remarks Set Off Firestorm Over Facial Recognition — Kai-Fu Lee, a renowned investor and artificial intelligence (AI) technology advocate, apologized after stoking public concerns by appearing to say that China’s largest fintech group may share users’ facial data with business partners.
- Tencent’s PUBG Still Highest Earning Game Despite Indian Ban — “PlayerUnknown’s Battlegrounds” (PUBG Mobile), a battle royale title developed by Chinese internet giant Tencent, continues to be the world’s highest-earning mobile game in August despite being banned in India.
South China Morning Post
- China’s economic recovery continued in August, but analysts warn of ‘pent-up demand’ running out of steam — Better-than-expected economic data out of China reaffirms that the world’s second-largest economy is continuing its strong recovery from the coronavirus health crisis, but analysts warn that household demand is likely to taper off in the near-term while tensions with the United States could put a dent in China’s exports.
- US drops sweeping Xinjiang goods ban, China’s cotton sector breathes temporary sigh of relief — Having faced down trade war tariffs, a pandemic that closed factories for months and now a global recession, the Asian apparel industry can breathe a sigh of relief after the United States decided to temporarily shelve a sweeping ban on products containing cotton from China’s Xinjiang province over allegations of widespread forced labour.
- US issues restrictions on import of Xinjiang cotton and apparel products, citing forced labour — The US government has announced new restrictions on the import of products, especially cotton and apparel, from China‘s Xinjiang Uygur autonomous region, citing concerns over the alleged widespread use of forced labour.
- YouTube to launch TikTok-like short-form video feature in India after ban of Chinese app — YouTube will be testing its new short-form video feature in India, where ByteDance-owned TikTok – often credited for popularising the format – has been banned since June.
- Coronavirus: Hong Kong’s third round of relief funding spreads HK$24 billion among Hospital Authority, pandemic-battered businesses, the unemployed — Hong Kong’s struggling businesses are set to get a much-needed lifeline as the government unveiled its HK$24 billion (US$3.1 billion) third round of Covid-19 relief funding on Tuesday, an outlay that will leave the city’s fiscal reserves equal to about one year of public expenditure.
- China extends tariff exemptions on 16 US products for another year at the request of Chinese importers — China has decided to exempt tariffs on a batch of 16 US products, including fish meal, lubricants and cancer medications, for another year, marking a small concession in a much broader trade war with the United States.
- Coronavirus: more bad news for Hong Kong’s battered tourism sector, with August arrivals down nearly 80 per cent from July — Hong Kong tourism declined further in August, with some 78 per cent fewer visitors than the previous month, even as the city’s officials discussed forming travel bubbles with 11 destinations and local coronavirus infections continued to fall.
- China economy’s broad recovery from coronavirus continues, as retail sales grow for first time in 2020 — Industry, retail and investment all showed marked improvements in August, as the Chinese economy continued its broad-based recovery from the ravages of the coronavirus earlier this year, according to new data released by the National Bureau of Statistics on Tuesday.
- Shenzhen to reprise role as vanguard of China’s financial reforms with its pole position in Greater Bay Area — Shenzhen, the policy test bed for China’s reforms and economic liberalisation for over four decades, now finds itself at the forefront to turn the Greater Bay Area (GBA) into the vanguard of the country’s deregulation.
- Hong Kong’s controversial Lantau land-reclamation scheme could wipe out city’s fiscal reserves in less than a decade, economist says — An economist and an environmental group have thrown cold water on Hong Kong’s ambitious plan to build artificial islands off Lantau to serve as a new housing and business hub, saying the project would drain the government’s fiscal reserves within as little as seven years.
- Chinese chip maker SMIC applies to renew licence to supply Huawei: state media — China’s Semiconductor Manufacturing International Corp (SMIC) has asked for approval from the United States to continue supplying Huawei Technologies, state media outlet Beijing News reported on Tuesday, citing the company.
Bloomberg
- Oil Rises With China Economic Data Countering Demand Fears — Oil rose as data showed China’s economic recovery from the coronavirus crisis is gathering strength, offsetting a bleak assessment of demand by another top energy organization.
- India’s Defense Minister Says China Border Tensions Serious — India’s defense minister told parliament Tuesday the current border tensions with neighbor China were serious and the result of Beijing’s violations of boundary agreements.
- Saudi Arabia’s Atomic Ambition Is Being Fueled by a UN Watchdog — The United Nations nuclear watchdog has been working in parallel with Chinese officials to help Saudi Arabia exploit uranium — the key ingredient for nuclear power and weapons — despite its inspectors being frozen out of the kingdom.
- U.S. Sanction Risk Hits China State Firm’s $3 Billion Bonds — China National Chemical Corp.’s newly sold offshore bonds are struggling to perform amid unabated concerns over potential U.S. sanctions and the firm’s operating prospects.
- China Says TikTok ‘Coercive Possession’ Shows U.S. ‘Bullying’ — A senior Chinese official accused the U.S., which forced the sale of TikTok on national security grounds, of “economic bullying,” while lambasting European Union restrictions on Huawei Technologies Co., Ltd., in comments highlighting Beijing’s increasing assertiveness against what it sees as unfair treatment from Western governments.
- Autohome Is Said to Plan $1 Billion Hong Kong Second Listing — Autohome Inc., a Chinese online car-sales website, is planning a second listing in Hong Kong that could raise about $1 billion, people familiar with the matter said.
- Hong Kong Injects Fading Economy With Fresh Virus Stimulus — Hong Kong announced HK$24 billion ($3.1 billion) in virus relief stimulus and will lift some social distancing restrictions, including temporarily re-opening bars, as the city’s economy suffers from a recession prompted by protests and Covid-19.
- U.S. Warns Citizens Against Hong Kong Travel Due to Security Law — The U.S. State Department updated its travel advisory on Hong Kong based on China’s implementation of a national security law widely seen as eroding freedom in the once-autonomous city.
- S. Africa’s Stocks Extend Winning Streak to Longest in 15 Months — South Africa’s main stock index rises 0.3% by 9:36 a.m. in Johannesburg, extending gains for a seventh consecutive day, the longest winning streak since June 2019, as miners advance following positive economic data from China.
- China’s Appetite for Oil Is Probably Bigger Than It Looks — A surge in Chinese buying of blending fuels this year means oil demand in the world’s biggest importer is likely bigger than the official figures indicate, according to the trading arm of refining giant Sinopec.
- Chinese Consumers Join Industrial Recovery From Covid-19 — China’s economic recovery from Covid-19 accelerated, spurred by a rebound in consumption as virus restrictions eased and larger-than-expected gains in industrial output.
- Tycoon Dhanin’s CP Foods Soars on $4.1 Billion China Swine Buy — Charoen Pokphand Foods Pcl, the meat producer owned by Thai billionaire Dhanin Chearavanont, posted its biggest gain in three months after announcing a 131 billion baht ($4.1 billion) plan to buy its parent’s Chinese swine business.
- This Upstart Chinese Broker Is Now Bigger Than Credit Suisse — East Money Information Co., founded by a 49-year-old former stock commentator, is one of the big winners in China’s wildest stock frenzy in half a decade.
- TikTok’s Fast-Growing China Twin Has 600 Million Daily Users — Douyin, the Chinese-market version of ByteDance Ltd.’s TikTok video-sharing app, surpassed 600 million daily active users in August, rising from 400 million at the start of the year.
- China’s DIY Traders Are Now Giving Billions to Market Pros — China’s 170 million individual stock traders are doing something unusual in 2020: they’re entrusting their money to the professionals.
- EU Tells Xi That China Must Show Investment Deal Worthwhile — The European Union stepped up demands on China to open its market further to foreign investors, seeking to keep alive a goal for a far-reaching agreement this year even as disagreements over human right issues could fuel uncertainty.
- Virus and Trade Woes Set to Cut Australian Farm Exports by 10% — The value of Australian agricultural commodity exports is expected to slump by 10% in 2020-21, as the Covid-19 pandemic and trade tensions with China hit demand and prices, according to a report from government forecaster Abares.
- Raab Tells U.K. Diplomats Don’t Get Sucked Into China ‘Cold War’ — Foreign Secretary Dominic Raab has told his officials to work carefully to manage relations with the U.S. and China — and avoid the U.K. becoming trapped in a new “Cold War” between the two countries.
- Hong Kong’s Much-Hated Pedestrian Fences Won’t Die — During pro-democracy protests, demonstrators tore down 40 miles of much-detested sidewalk railings. Now the city is spending $1.9 million to rebuild them.
- U.S.-China Spat Threatens Energy Shift From Oil to Solar, Wind — Beijing was driving the growth of renewables — then Trump’s trade war and the coronavirus hit.
- The Solar-Powered Future Is Being Assembled in China — The supply chain is punishingly cheap, and Longi dominates it like no one else.
- Tencent Picks Singapore as Asia Hub After India, U.S. Bans — Tencent Holdings Ltd. has picked Singapore as its beachhead for Asia, joining rivals Alibaba Group Holding Ltd. and ByteDance Ltd. in the race to build up their presence closer to home after setbacks in the U.S. and India.
- Philippines’ Duterte to Prioritize China, Russia Vaccine Offers — Philippine President Rodrigo Duterte said he would prioritize China and Russia in sourcing a Covid-19 vaccine over Western drugmakers, which require cash advances in exchange for supplies.
- Alibaba Is Said to Be in Talks to Invest $3 Billion in Grab — Alibaba Group Holding Ltd. is in talks to invest $3 billion in Southeast Asian ride-hailing giant Grab Holdings Inc., according to people familiar with the matter.
Reuters
- The bulls get back into China — World stocks rose on Tuesday on the back of upbeat Chinese data and optimism about coronavirus vaccines as a struggling dollar kept the hot streaks for the euro and some of the biggest emerging market currencies sizzling.
- China’s SMIC applies to renew licence to supply Huawei: state media — China’s Semiconductor Manufacturing International Corp (SMIC) has asked for approval from the United States to continue supplying Huawei Technologies Co Ltd, state media outlet Beijing News reported on Tuesday, citing the company.
- China coronavirus vaccine may be ready for public in November: official — Coronavirus vaccines being developed in China may be ready for use by the general public as early as November, an official with the Chinese Center for Disease Control and Prevention (CDC) said.
- Tencent becomes latest Chinese firm to invest in Singapore with new Southeast Asia hub — Gaming giant Tencent Holdings Ltd said on Tuesday it would develop a regional hub for Southeast Asia in Singapore, opening a new office and becoming the latest Chinese tech firm to invest in the city-state.
- China to auction 20,000 tonnes of frozen pork from state reserves on September 18: notice — China will auction another 20,000 tonnes of frozen pork from its state reserves on Sept. 18, the China Merchandise Reserve Management Center said on Tuesday.
- How ByteDance’s CEO balked at selling TikTok’s U.S. business — ByteDance founder and CEO Yiming Zhang’s decision to drop his pursuit of a sale of TikTok’s U.S. operations to Microsoft Corp in favor of a partnership with Oracle Corp was the culmination of pressure from the Beijing-based firm’s investors as it searched for a deal to appease the United States and China, according to people familiar with the deliberations.
- China’s industrial engine gathers speed, consumers open wallets in boost to recovery — China’s industrial output accelerated the most in eight months in August, while retail sales grew for the first time this year, suggesting the economic recovery is gathering pace as demand starts to improve more broadly from the coronavirus crisis.
- China’s domestic travel revenue likely to halve to $394 billion in 2020: report — China’s domestic tourism revenue is expected to fall by 52% to 2.76 trillion yuan ($394 billion) in 2020, according to a report by the China Tourism Academy, as the industry continues to reel from the impact of the coronavirus crisis.
- Fee bonanza on China’s STAR Market IPOs passes by Western banks — A fee bonanza on China’s Nasdaq-style STAR Market, which is set to surge with Ant Group’s mega-listing, is passing Western banks by due to their limited local presence and worries about a unique co-investment rule for managing IPOs.
- China’s foreign trade, foreign investment better than expected: stats bureau — China’s foreign trade and investment performance has been better than expected, the spokesman for China’s statistics bureau said on Tuesday.
- China’s August property investment growth hits 16-month high — China’s real estate investment rose at the fastest pace in 16 months in August, supported by robust sales, as the property market helped underpin the post-COVID economic recovery.
- Tencent, others to buy $516.12 million worth shares in China Evergrande New Energy Vehicle — China Evergrande New Energy Vehicle Group Ltd said on Tuesday investors including Tencent Holdings Ltd and Sequoia Capital will buy HK$4 billion ($516.12 million) worth of company shares in a share sale.
- Tear down your barriers, EU says after summit with China’s Xi — European Union leaders told Chinese President Xi Jinping on Monday to open up markets, respect minorities and step back from a crackdown in Hong Kong, also asserting that Europe would no longer be taken advantage of in trade.
- Why Walmart still wants in on the TikTok deal — Walmart Inc said it is pressing ahead with its goal to invest in TikTok as Oracle Corp takes the lead in a partnership with the Chinese video-sharing app.
Xinhua
- China’s industrial output growth accelerates amid economic recovery — China’s economic recovery continued picking up steam last month, with major economic indicators further improving as the country’s efforts to boost growth amid the COVID-19 slowdown gradually paid off.
- Economic Watch: China’s economic recovery gains steam, key indicators further improve — China’s economic recovery continued to gather steam with major economic indicators further improving last month as the country’s efforts to boost growth amid the COVID-19 slowdown gradually paid off.
- China Focus: Smart industry expo signals expansion of opening up — A staff member presents an exhibit during the 2020 Smart China Expo Online in southwest China’s Chongqing Municipality, Sept. 15, 2020. The expo serves as a platform to promote global exchanges of smart technologies and international cooperation of the smart industry. (Xinhua/Tang Yi)
- Scale of China’s core AI industry hit 51 bln yuan in 2019: official — The scale of China’s core artificial intelligence (AI) industry had hit 51 billion yuan (about 7.5 billion U.S. dollars) by the end of 2019, with the number of AI enterprises exceeding 2,600.
- Goldman Sachs says U.S. companies moving out of China limited to specific sectors — Only a limited number of U.S. companies in specific industries are moving out of China while few in many other industries are doing so, according to a recent report released by investment bank Goldman Sachs.
- Smart China Expo Online kicks off in Chongqing — A staff member presents an exhibit during the 2020 Smart China Expo Online in southwest China’s Chongqing Municipality, Sept. 15, 2020. The expo serves as a platform to promote global exchanges of smart technologies and international cooperation of the smart industry. (Xinhua/Tang Yi)
- Foreign trade of China’s Henan up 9.5 pct in Jan.-Aug. — Foreign trade of central China’s Henan Province rose 9.5 percent to 323.51 billion yuan (about 47.52 billion U.S. dollars) in the first eight months of this year, local authorities said.
- Chinese shares close higher Tuesday — Chinese stocks closed higher Tuesday, with the benchmark Shanghai Composite Index up 0.51 percent to 3,295.68 points.
- China’s interbank treasury bond index opens higher — China’s interbank treasury bond index in net price opened higher at 977.9 points Tuesday, up from the previous close of 977.83 points, according to the China Foreign Exchange Trade System.
- Chinese yuan strengthens to 6.8222 against USD Tuesday — The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 139 pips to 6.8222 against the U.S. dollar Tuesday, according to the China Foreign Exchange Trade System.
Other Publications
- Foreign Policy: How to Handle WeChat’s Threat Smartly — Targeted responses can achieve more than blanket bans.
- Defense News: Reshoring does not mean ‘Buy America’ only — The solution is not an autarkic “Buy America”-only approach that would be counterproductive to our long-term economic health. Instead, we need to have a laser focus on getting out of the China business with respect to industrial capabilities critical to national security and, in many cases, doing that with a little help from our friends.
- Nikkei Asian Review: China debt trap fear haunts Maldives government — When Ahmed Siyam, a Maldivian business magnate, rushed to service a $127.5 million loan he had received from the state-owned Export-Import Bank of China, he eased fears in the Indian Ocean archipelago about the Maldives falling into a Chinese debt-trap. But the August repayment reminded many of the risk of carrying billions of dollars in Chinese credit shrouded in secrecy.
- Nikkei Asian Review: Chinese listings rush boosts mainland banks and hits US rivals — A looming U.S. threat to ban listings of Chinese companies on American stock exchanges could potentially swing hundreds of millions of dollars in fees toward mainland investment banks as businesses look at Hong Kong and domestic markets to raise capital.
