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
- Alibaba and Tencent Kick the Tires on a New Idea—Keeping China’s Jalopies on the Road — China’s big tech companies are circling the auto-repair business in a bid to capture the boom in vehicle maintenance as the country’s vast car fleet begins to age.
- Trump’s U.S. WeChat Ban — Beijing uses the all-purpose app to censor and eavesdrop.
- WeChat Ban Rattles Chinese Communities in U.S. — Many Chinese-Americans and U.S. businesses with a largely Chinese clientele say they rely on WeChat as their primary tool for keeping in touch with people in China and in Chinese communities throughout the world.
- Soybean Prices Hit Two-Year High, Buoyed by Chinese Demand — A key cash crop for U.S. farmers, soybeans fell 16% to start the year before heavy Chinese buying spurred a rebound. Soybean prices have risen more than 15% since the start of August.
- U.S. Shouldn’t Improvise Way Out of TikTok Jam — The Trump administration has turned up the heat on the popular Chinese apps WeChat and TikTok. What it hasn’t done is lay out how information security challenges should be addressed.
- Australian Probe of Possible Interference Fueled Tensions With China — China released new details about an investigation in Australia and searches of Chinese journalists, shedding light on the mounting tensions between the two countries.
The Financial Times
- Beware the long arms of American and Chinese law — A rules-based order is giving way to something that feels more like 19th-century imperialism.
- ByteDance adamant it will retain majority ownership of TikTok in US — Chinese company contradicts assertions of Donald Trump, Oracle and Walmart.
- China’s pork reserves running out as prices soar, analysts say — Beijing sells down frozen meat after African swine fever causes supply shortfall.
- China’s export machine comes roaring back to life — Big economies may be struggling but their appetite for Chinese electronics is growing.
- Trump suffers blow after California judge blocks WeChat ban — Order for Apple and Google to remove Chinese messaging platform from app stores put on hold.
- CSOP aims to scoop huge foreign investment with China bond ETF — Fund will start trading ahead of anticipated inclusion of China in WGBI bond index.
- Trump’s TikTok dance: the politicisation of American business — A messy sale process triggered by national security concerns reflects the growing tech rivalry between the US and China.
The New York Times
- Trump Approves Deal Between Oracle and TikTok — The approval delays President Trump’s threat to block a popular Chinese-owned social media app, while the American software giant, Walmart and others try to complete a deal to take control.
- After Trump’s TikTok Ban, China Readies Blacklist of Foreign Companies — Beijing issued rules that could allow it to halt exports, imports and investments by businesses accused of endangering national security.
- TikTok Deal Exposes a Security Gap, and a Missing China Strategy — Technological progress has outpaced the political debate again. What will happen when the next TikTok arrives in the United States?
Caixin
- Size Now Matters for Chinese Brokerages as Foreign Competition Looms — Guolian Securities is buying bigger rival Sinolink to turn itself into a top 10 player as the industry comes under attack from foreign rivals.
- China Further Cuts Red Tape to Smooth Cross-Border Yuan Payments — The move follows a pilot program last year to make it easier for firms to make yuan settlements on cross-border trade and investment in 18 free-trade zones.
- Chief Accountant of China’s State Asset Regulator Joins CICC — Bai Yingzi, an expert in restructuring state-owned companies, will be managing director overseeing CICC cooperation with state enterprises.
- China Adds Three Areas to Its Ever-Expanding List of Free-Trade Zones — Beijing, Hunan and Anhui to host new zones trialing economic reform measures.
- Young Chinese Save More Amid Pandemic Uncertainties — Monthly deposits jump 34% among those 18–34 years old, survey finds, as more than half of respondents say they’re preparing for future financial needs.
- China Eastern Halts Two Routes That Brought In Covid-19 — Airline suspends its MU211 and MU212 flights between Shanghai and Manila after eight people test positive.
- Exclusive: Americans to Control TikTok Global Board, While China Keeps Majority Ownership — U.S. President Trump has said he would accept deal that would keep Chinese-owned company’s data on millions of U.S. users firmly in control of Americans.
- China’s Natural Gas Imports Set to Slow, Cutting Dependence on Foreign Sources — Asian giant stepping up efforts to boost domestic output while Covid-19 dampens demand growth.
- Evergrande New Energy Vehicle Plans STAR Market Listing — Hong Kong-traded electric auto maker doesn’t disclose fundraising target after earlier saying it aims to raise $516 million in HK from big investors.
- China’s Second-String Drone-Maker Files for $60 Million IPO — Jouav looks to list on STAR Market, but prospects dim amid tech decoupling, DJI’s dominance and shrinking customer base.
- Industrial Drone-Maker Jouav Navigates Tech Tensions With IPO Plans — China’s second-biggest industrial drone-maker is set to go public on Shanghai’s Nasdaq-like high-tech STAR Market, but faces a high risk of being caught in the middle of escalating Sino-U.S. tensions.
South China Morning Post
- Ex-ABC bureau chief gives details of threats, interrogations before he left China — The Australian Broadcasting Corporation’s former China bureau chief has revealed details of the threats and interrogations from Chinese security officials that led to his departure from the country nearly two years ago.
- Hong Kong bans Cathay Dragon flights from Kuala Lumpur and Air India after positive Covid-19 tests — Hong Kong has temporarily barred Cathay Dragon’s Kuala Lumpur service and Air India from flying passengers to the financial hub after a number of passengers originating from India tested positive for Covid-19.
- Coronavirus: Chinese drug firm aims to roll out US$88 vaccine this year — Two coronavirus vaccines developed by a Chinese state drug firm are being assessed for “conditional approval” to be administered on the general public, with corporate plans for universal vaccination.
- China told to save its overseas investments at risk from foreign protectionism, global recession — China should protect its massive overseas investment interests with more sophisticated and better coordination as protectionism by other nations escalated and global industrial chains were affected by the coronavirus pandemic, said Xiao Gang, a former head of the country’s securities watchdog.
- China’s ‘unreliable entity list’ sounds dire, but that doesn’t mean it will bite foreign firms any time soon — China has finally released details of how its “unreliable entity list” will be implemented, giving Beijing a new legal weapon to sanction foreign businesses it dislikes.
- Coronavirus: Hong Kong government to give one-time handout of HK$10,000 to non-permanent residents in need — About 203,000 underprivileged non-permanent residents in Hong Kong will be given a one-off HK$10,000 cash handout as the city’s economy continues to sag under the Covid-19 pandemic, a move the welfare minister stressed was appropriate as the immigrants were “bona fide” city residents.
- China keeps benchmark loan rate steady for fifth straight month, but could increase early next year — China kept its benchmark lending rate for corporate and household loans steady for the fifth straight month at its September fixing on Monday, as expected.
- No visitors, no buzz: Hong Kong’s food truck operators see the end of the road amid Covid-19 pandemic — Hong Kong’s experiment with food trucks is dying. Four years after they burst on the scene, with a competition to select vendors on wheels, they are now rolling off into the sunset.“The operators are losing millions of dollars this year alone,” said Gordon Lam Sui-wa, chairman of the Hong Kong Food Truck Federation.
- Australia has ‘painted itself into a geopolitical corner’ with China, but what is Beijing’s trade endgame? — Australia’s over-reliance on the goodwill generated by its free trade agreement with China to shield it from the ramifications of its political alliance with the United States could result in problems with Beijing for years to come, trade and foreign affairs experts said.
- China’s overseas graduates return in record numbers into already crowded domestic job market — Over 800,000 Chinese students who recently graduated from overseas universities have returned home this year, more than ever before, adding to an already crowded domestic job market.
- China’s middle-class dream of a second home in Malaysia dashed by coronavirus and geopolitical tensions — Patricia Li is dismayed and saddened by the exodus of Chinese people she is witnessing in Johor, the southernmost state in Malaysia.
Bloomberg
- China’s War Rhetoric Pushes Taiwan to Boost U.S. Economic Ties — It’s hard to find a world leader who’s had a better 2020 than Taiwan President Tsai Ing-wen.
- China Ride-Hailing Giant Didi to Partner With BYD for EVs — Chinese ride-hailing giant Didi Chuxing is partnering with automaker BYD Co. to produce customized electric vehicles for its transport business, according to people familiar with the matter.
- HSBC Shares Fall to 25-Year Low on China Fears, Banks Report — HSBC Holdings Plc slumped below its financial crisis low set more than a decade ago as pressures mount on several fronts, including a potential threat to its China expansion plans and increased scrutiny of money laundering controls.
- Chinese Hotel Giant Eyes Foreign Deals as Global Brands Languish — China’s biggest hotel operator is looking to acquire foreign hospitality chains as the rapid recovery of the country’s domestic travel market puts it at an advantage to ailing global peers.
- China’s Rejection of Taiwan Buffer Zone Raises Risk of Clash — China is ratcheting up the risk of military confrontation in the Taiwan Strait, as Beijing seeks to deter Taipei from continuing to deepen ties with the U.S. and other like-minded democracies.
- Jack Ma’s Ant Mulls Lifting IPO Fund Target to $35 Billion — Jack Ma’s Ant Group is seeking to raise at least $35 billion in its initial public offering after assessing early investor interest, people familiar with the matter said, putting the Chinese fintech giant on track for a record debut sale.
- China’s Policy Makers Will Tolerate a Stronger Yuan For Now — Its economy is recovering and policy makers have avoided open-slather stimulus. This all makes sense, for now.
- TikTok Owner Is Said to Seek $60 Billion Value in U.S. Deal — China’s ByteDance Ltd. is seeking a valuation of $60 billion for TikTok as Oracle Corp. and Walmart Inc. take stakes in the short-video app’s business to address U.S. security concerns, according to a person familiar with the matter.
- Hong Kong Democrats Face Choice: Engage Beijing or Give Up Seats — Following China’s delay of Hong Kong’s legislative elections, opposition lawmakers face a defining choice: Keep playing by Beijing’s rules? Or quit and join the radicals in the streets?
- China’s Hikvision Tries a Makeover out of Spy Tech. It Will Cost — Hikvision is trying to pull itself out of the Washington-Beijing cold war. It needs to hurry.
- Indonesia Fish Exports Continue to China After Virus Discovered — Indonesia continues to sell fish to China after the coronavirus was discovered on the packaging of a local seafood exporter’s products, the Marine Affairs and Fisheries Ministry said.
- Indonesia’s Palm Oil Exports Rise on Higher Shipments to China — Indonesia’s palm oil exports increased in July on higher shipments to China and the Middle East, according to the Indonesian Palm Oil Association.
- India Needs to Choose the Economy It Wants: Toyota or Pakora? — The country should be supplanting China in manufacturing. Taxes of up to 50% on cars show how wrong things have gone.
- China Reveals Punishment for Firms on Unreliable Entity List — China revealed how it will manage the so-called “unreliable entity list” that aims to punish firms, organizations or individuals that damage national security, but didn’t announce details of who is on the list.
- Trump Told Ellison, McMillon He Wants U.S. Paid in TikTok Deal — President Donald Trump, nearing a decision on whether to approve an alliance between Oracle Corp. and the Chinese-owned video app TikTok, spoke by phone Friday with Oracle’s chairman, Larry Ellison, according to people familiar with the matter.
Reuters
- Trump says U.S. won’t approve TikTok deal if China maintains control — U.S. President Donald Trump on Monday said his administration would not approve the sale of TikTok to Oracle Corp and Walmart Inc if China’s ByteDance maintains any control.
- China’s ByteDance says TikTok will be its subsidiary under deal with Trump — China’s ByteDance said on Monday that TikTok’s global business will become its subsidiary, even as Oracle Corp and Walmart Inc said over the weekend that they and U.S. investors would own the majority of the video app following a deal with U.S. President Donald Trump’s administration.
- China’s cabinet unveils steps to spur new forms of consumption — China’s cabinet on Monday issued guidelines to boost new types of consumption, including online shopping and payments, in a bid to support the recovery of the economy.
- China needs first mover advantage in digital currency race: PBOC magazine — China needs to become the first nation to issue a digital currency in its push to internationalise the yuan and reduce its dependence on the global dollar payment system, a commentary published by the country’s central bank said.
- Exclusive: China to lose access to Australian space tracking station — China will lose access to a strategic space tracking station in Western Australia when its contract expires, the facility’s owners said, a decision that cuts into Beijing’s expanding space exploration and navigational capabilities in the Pacific region.
- China outlines policy for new storage bases for energy, agri imports — China is directing authorities in East China’s Zhejiang province to start planning to build stockpiling bases for energy and agricultural products, part of a push to develop regional free-trade zones (FTZs), a government document said on Monday.
- Explainer: Why is Taiwan-China tension rising and what are the risks? — China sent numerous aircraft close to Taiwan during two days of drills from Friday, causing the island’s air force to scramble, as Beijing expressed anger at the visit of a senior U.S. official to Taipei.
- China rolls out fresh policies to boost hydrogen vehicle sales — China, the world’s biggest automobile market, rolled out fresh policies to support hydrogen fuel cell vehicles to improve the industry’s supply chain and technologies, the finance ministry said on Monday.
- China keeps lending benchmark LPR steady for fifth straight month — China kept its benchmark lending rate for corporate and household loans steady for the fifth straight month at its September fixing on Monday, as expected.
- China’s Guolian Securities to acquire Sinolink Securities — Guolian Securities Co said on Sunday it would acquire Sinolink Securities Co through a share swap and stake purchase, a move that accelerates the consolidation of Chinese brokerages.
- China’s economy remains resilient despite external risks, says Xi — China’s economy remains resilient and there are ample policy tools at Beijing’s disposal despite rising external risks, President Xi Jinping said in remarks published on Saturday.
Xinhua
- China’s catering industry to achieve restorative growth — As dinnertime approached, food aficionados began to form a long line at the entrance of a popular crayfish restaurant in Changsha, capital of central China’s Hunan Province.
- China expected to consume more natural gas in 2020: report — China’s natural gas consumption is expected to increase in 2020 amid the country’s efforts to step up exploration and development of the energy source, according to an industry report.
- China injects 210 bln yuan liquidity into market — China’s central bank pumped a net amount of 210 billion yuan (about 31.1 billion U.S. dollars) into the country’s banking system via open market operations during the last week to maintain liquidity at a reasonable level.
- China approves investment projects worth 13 bln USD in August — China’s top economic planner approved six fixed-asset investment projects with combined investment totaling 88.2 billion yuan (about 13 billion U.S. dollars) in August, official data showed.
- TikTok hopes three-party agreement between ByteDance, Oracle, Walmart to resolve U.S. concerns — Video-sharing social networking platform TikTok on Saturday voiced hope that an agreement reached by its Chinese parent company ByteDance with Oracle and Walmart will “resolve the security concerns of the U.S. administration and settle questions around TikTok’s future in the U.S.”
- China approves investment projects worth 13 bln USD in August — China’s top economic planner approved six fixed-asset investment projects with combined investment totaling 88.2 billion yuan (about 13 billion U.S. dollars) in August, official data showed.
- China’s loan prime rates remain unchanged — China’s one-year loan prime rate (LPR), a market-based benchmark lending rate, came in at 3.85 percent on Monday, unchanged from the previous month.
- Economic Watch: China enhances logistics, manufacturing synergy to support ‘dual circulation’ — China is looking to enhance the efficiency of its logistics industry and promote its integration with the manufacturing sector under efforts to support the dual circulation development pattern.
- China’s trust assets shrink in second quarter — The assets of China’s trust industry have been shrinking amid tightened financial regulation to defuse risks, data shows.
- China’s Sichuan to bolster hog industry — Southwest China’s Sichuan Province has announced a plan to bolster its hog industry, aiming to increase the output value of the entire industrial chain to more than 390 billion yuan (around 57.7 billion U.S. dollars) in 2022, local authorities said.
- North China port city sees 19 mln cross-border e-commerce orders in Jan.-Aug. — The north Chinese port city of Tianjin saw over 19 million foreign trade orders via cross-border e-commerce in the first eight months, according to the municipal commission of commerce.
- 18 apps receive security certificates for personal data protection — A total of 18 mobile apps from 10 companies have received security certificates on personal data protection from China’s internet authorities on Sunday.
- TikTok expects three-party agreement between ByteDance, Oracle, Walmart to resolve U.S. concerns — Video-sharing social networking platform TikTok on Saturday voiced hope that an agreement reached by its Chinese parent company ByteDance with Oracle and Walmart will “resolve the security concerns of the U.S. administration and settle questions around TikTok’s future in the U.S..”
- China to see more balanced pork demand and supply in Q4 — China’s pork demand and supply will become more balanced in the fourth quarter, as pig production continues to recover, according to an agricultural official.
- China greenlights three sci-tech innovation IPOs — China’s securities regulator has approved the initial public offering (IPO) registration of three companies on the science and technology innovation board.
- China greenlights two ChiNext IPOs — China’s top securities regulator has approved the registration for the initial public offerings (IPOs) of two companies on the ChiNext, China’s Nasdaq-style board of growth enterprises.
- Turnover of “new third board” tops 94 bln yuan — China’s National Equities Exchange and Quotations (NEEQ), also known as the “new third board,” has seen a turnover of 94.14 billion yuan (about 13.9 billion U.S. dollars) so far this year.
Other Publications
- Nikkei Asian Review: China government bond fund to launch on Singapore Exchange — ETF to let investors tap Chinese onshore bond markets using new fund structure.
- Forbes: China Increases Imports Of US Oil Ahead Of November Election — Relations between the United States and China may be at an all-time low, but the trading of energy commodities between the two powers remains active—at least for crude oil.
- Buzzfeed News: The FinCen Files — A huge trove of secret government documents reveals for the first time how the giants of Western banking move trillions of dollars in suspicious transactions, enriching themselves and their shareholders while facilitating the work of terrorists, kleptocrats, and drug kingpins.
