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.
Want this emailed directly to your inbox? Send us an email at contact@thewirechina.com to sign up.
The Wall Street Journal
- Finance and Foreign Policy Mix When China and Japan Lock Horns — Though discussion about geopolitical influence in Asia centres on U.S.-China conflict, Tokyo is the real financial challenger to Beijing.
- The WTO Couldn’t Change China, so Robert Lighthizer Found Another Way — Trump’s top trade official, long a critic of the WTO and China, has been busy implementing the approach.
- In China, Not All Triple-A-Rated Bonds Are Created Equal — Bonds with top grades make up 57% of all onshore Chinese corporate debt outstanding.
- Carbon Pledge Lifts Wind and Solar Stocks in China — Investors are trying to anticipate winners from whatever policies come out of nation’s next five-year plan.
- China Tops the Box Office but Cinema Stocks Aren’t Blockbusters — With the coronavirus under control and moviegoers returning, China seems very likely to be the No. 1 movie market this year, but challenges remain for cinema stocks.
- Top Universities Took Billions in Unreported Foreign Funds, U.S. Finds — Education Department crackdown yields disclosures by schools including Cornell.
The Financial Times
- China’s Ant gets final approval for world’s biggest-ever IPO — Payments group owned by Jack Ma set to raise about $30bn in Hong Kong and Shanghai offering.
The New York Times
- Vatican Extends Deal With China Over Appointment of Bishops — The agreement calls for China to formally recognize the pope’s authority within the church, while the Vatican in turn recognized the legitimacy of bishops previously appointed by Beijing.
- U.S. Still Seeking Clues to Mystery Illness Afflicting Diplomats and Spies — Secretary of State Mike Pompeo said officials continued to investigate the episodes, which began in 2016, but diplomats and C.I.A. officers have accused the administration of a cover-up.
Caixin
- BlackRock Shakes Up China Business Amid Move Into Mutual Funds — Money manager liquidates private funds as it pushes to expand the scale of its business in the Chinese mainland market.
- Six State-Owned Banks Fined $6.3 Million for Infringement of Personal Information — Branches of China Construction Bank, Bank of China and Agricultural Bank of China lacked awareness and mechanisms for protecting data, PBOC says.
- China Encourages More Domestic Investment Abroad — Expansion of quotas on investment in foreign capital markets may help counter the yuan’s post-pandemic surge against the dollar.
- Rebounding Chinese Economy Will Expand This Year, Top Officials Say — After Covid-19 contraction early in 2020, China is on pace to record full-year growth, vice premier and central bank chief say at forum.
- Investors Hack 15% Off Semiconductor’s Value in Three Days — Market pushes back on China Resources Microelectronics’ plans for a cheap sale of $751 million worth of new shares, and the departure of key technology workers.
- China Unicom Revenue Growth Accelerates Even as Subscribers Fall — China Unicom, one of the country’s three biggest mobile carriers, returned to revenue growth in the third quarter, but profit growth remained flat, according to its latest financial report.
- China Calls Time on Chipmakers With No Experience, No Technology and No Talent — They’ve got no experience, no technology and no talent. But that hasn’t stopped a disparate range of firms from charging into the race to be China’s next chipmaking champion.
- Alibaba-Backed Lender in Credit Frenzy for ‘Double Eleven’ Shopping Fest — Ant Group’s online lender MYbank is launching a flood of credit to provide short-term financing for merchants during Alibaba’s upcoming “Double Eleven” online shopping extravaganza.
South China Morning Post
- Blockchain allowed 17 million people to travel between Guangdong, Macau amid coronavirus pandemic — Even amid a global travel standstill due to the coronavirus, more than 17 million people travelled between Macau and China’s southern Guangdong province since May.
- US’ Panda Express says it’s black and white: eaterie bearing resemblance in China is fake — A restaurant named Panda Express in the southwestern Chinese city of Kunming has been closed for investigation after the American chain of the same name said it was unauthorised and infringed its trademark.
- Taiwan welcomes latest US arms deal, says no intention of weapons race with Beijing — Taiwan says it has no intention of starting an arms race with the Chinese mainland but will further consolidate its defence ties with the US, following Washington approval for the sale of long-range cruise missiles to the self-ruled island.
- China revises national defence law to enhance security — China has issued a draft revision to its national defence law as it seeks to enhance security in key areas like cyberspace, and improve communication between the government and the military.
- ByteDance apps Toutiao, Douyin engage Chinese consumers longer than Tencent’s WeChat, survey says — TikTok owner ByteDance is engaging China’s consumers longer through its popular apps Douyin and Jinri Toutiao, compared with rival Tencent Holdings’ multipurpose social media platform WeChat, according to a new survey from analytics firm TalkingData.
- Japanese fishing boats told to look elsewhere for catch as Chinese ships take over traditional grounds — Thousands of Chinese fishing boats have ignored demands that they leave the rich fishing grounds within Japan’s exclusive economic zone off the northwest coast, with the Fisheries Agency in Tokyo forced to recommend that Japanese trawlers operate elsewhere to avoid clashes.
- Donald Trump promised a tough China trade policy, but few think it has worked — When the US-China trade war kicked off in 2018, Xu Yanlin, a senior sales manager for a Guangzhou company selling clothes and household items on Amazon, worried that her US market would collapse. But instead, her online store thrived, as the firm jacked up prices and passed Donald Trump’s trade war tariffs on to customers. “The tariffs were absorbed by American consumers themselves.”
- China-US relations: 300 foreign exchange students ‘interrogated’ as they left America, Beijing says — Hundreds of Chinese foreign exchange students were subjected to harassment and interrogation at American airports as they were leaving the country this summer, Beijing said on Wednesday.“For some time the United States has been using judicial power to wantonly harass and interrogate Chinese students, and even arrest and prosecute them under false allegations,” foreign ministry spokesman Zhao Lijian told a press conference.
- China’s Liu He says foreign hostility spurring nation’s push for hi-tech independence — Foreign efforts to contain Chinese technology development have invigorated the country’s determination to tackle weak links in the economy and accelerate the shift towards innovation driven growth, Chinese Vice-Premier Liu He has said.
- Cathay Pacific job cuts will hit Hong Kong housing market as axed pilots, cabin crew move away or downsize, say analysts — The massive job cuts at Cathay Pacific, Hong Kong’s flagship carrier, are likely to further drag down the city’s flagging property market, with districts close to the airport potentially facing steep cuts in home prices and rents, according to analysts.
Bloomberg
- Saudi Deal With Huawei for Arabic-Specific AI Risks U.S. Ire — Saudi Arabia said it would partner with Huawei Technologies Co. to develop Arabic-language recognition in artificial intelligence and train Saudi experts in the field, potentially putting the kingdom at odds with the U.S., a key partner that’s pushing its allies to avoid the Chinese company.
- India Said to Keep $7 Billion Ready for Vaccine at $2 a Shot — India’s government has set aside about 500 billion rupees ($7 billion) to vaccinate the world’s most populous country after China against the coronavirus, according to people with knowledge of the matter.
- Boeing Max ‘High on China’s Minds,’ But No Clear Return Date — China doesn’t have a clear timetable for when Boeing Co.’s 737 Max can return to service, though it has been holding talks with the company as well as U.S. and European aviation regulators, the head of the country’s civil aviation authority said.
- Hong Kong Consumer Prices in Worst Deflation Run Since 2009 — Hong Kong’s consumer prices contracted for a third month in September, matching the longest deflationary stretch in more than a decade largely because of government relief measures to combat the coronavirus and recession.
- Hong Kong’s Property Market Takes Hit From Cathay Job Cuts — Calls from laid off Cathay Pacific Airways Ltd. pilots began arriving at OKAY Property Agency Ltd. not long after the Hong Kong airline announced one of the biggest job cuts in global aviation.
- Huawei Outhustles Trump by Stockpiling Chips Needed for China 5G — Huawei Technologies Co. quietly spent months racing to stockpile critical radio chips ahead of Trump administration sanctions, ensuring it can keep supplying Chinese carriers in their $170 billion rollout of 5G technology through at least 2021.
- Bolsonaro Slams Chinese Vaccine His Government Agreed to Buy — Brazilian President Jair Bolsonaro blasted a Chinese coronavirus vaccine being tested in the country just a day after his health minister said it would be distributed nationwide.
- U.S. Calls Chinese Visa Offenders Spies Without Showing Evidence — Charges against researchers don’t match prosecutors’ rhetoric.
- State Department Approves $1.8 Billion in Weapons for Taiwan — The State Department approved $1.8 billion in new arms for Taiwan and submitted the package to Congress Wednesday for a final review in a move aimed at improving the island’s self-defense capabilities against a long-threatened invasion by China.
- Top Meteorologist ‘Ashamed’ of Hong Kong Climate Policy — Lam Chiu-ying spent half his life working for the Hong Kong government. Late last month, the 71-year-old meteorologist quit his job as the head of an expert group advising policy makers on combating global warming.
- Renault’s Made-in-China Electric SUV Stirs Labor Unrest at Home — Renault SA unions are raising hackles about the French carmaker producing a new electric mini-SUV in China and selling it in Europe, a clash that could become more common given how many companies have similar plans.
- Hong Kong Hub Puts Cathay in Tighter Spot Than Singapore Air — They’re both pillars of their economies, highly regarded by customers and totally reliant on international travel. They’re also in deep financial strife and shedding thousands of jobs because of the virus crisis.
- China’s PBOC Governor Says Debt Ratio to Stabilize in 2021 — China will likely post positive economic growth for the full year and its debt ratio is expected to stabilize in 2021 after climbing in the wake of the coronavirus pandemic, the central bank governor said.
- Alibaba Will Buy a Fifth of Shares in Ant Group’s Mega IPO — Alibaba Group Holding Ltd. has agreed to subscribe to more than a fifth of Ant Group’s imminent initial public offering, propping up its part-owned fintech giant’s potentially $35 billion debut.
- Citigroup Beefs Up China Expansion With Investment Bank Plan — Citigroup Inc. is planning to include an investment banking unit in China to take advantage of an expected steady stream of big stock deals as the nation opens up and liberalizes its financial markets, a person familiar said.
- China to Bump Capital Outflow Quota by $10 Billion, Caixin Says — China is preparing to grant additional quota for funds to invest in securities overseas, Caixin reported, a move that would allow more capital to flow out of the country.
- Wool Price in Australia Climbs as China Demand Rebounds — Wool prices in Australia have surged more than 30% from a September low, with Chinese processors boosting purchases to meet an expected jump in apparel demand after a coronavirus-related slump.
- Wuhan Boiler Said to Weigh Buying GE’s Stake in China Venture — Wuhan Boiler Group Co. is considering acquiring General Electric Co.’s controlling stake in a steam power business in China, according to people familiar with the matter.
- Copper’s Flying Like a FANG Stock on China’s Economic Recovery — Green prospects are likely to keep supporting the red metal, even after post-pandemic stimulus fades.
- IMF Says Asia Faces Long Recovery Slog Even as China Grows — The Asia Pacific region is likely to see economic output remain below pre-pandemic trends over the medium term, even as China’s recovery leads the rest of the world, according to the International Monetary Fund.
- China Wealth Link With H.K. to Be Capped at $23 Billion Each Way — China’s plan to allow investments for private wealth across the border between Hong Kong and its increasingly affluent southern region will be capped at 150 billion yuan ($23 billion) in each direction.
- U.S.-China Semiconductor Conflict Is About to Get Even Uglier — The ability to make semiconductors for everything from artificial intelligence to smartphones has become a national security issue, and the U.S. election won’t change that.
- Huawei’s Biggest Rivals Should Be Happy They’re Not American — Swedish telecoms supplier Ericsson has been able to retain access to the Chinese market. That’s been a boon for sales.
- China Has a Few Things to Teach the U.S. Economy — Fiscal austerity is a relic of the past. Time to spend.
- Pentagon’s New Plan to Fight China and Russia in the Gray Zone — The U.S. military has to walk a tricky line: preparing for war with other great powers while making peacetime efforts to ensure that war never happens.
- Turkish Conglomerate Joins Bid for Israeli Port as U.S. Watches — A Turkish industrial conglomerate is joining a consortium that includes an American shipping company to bid for Israel’s largest seaport, after the U.S. raised concerns over Chinese influence and security implications involved in the sale of the strategic facility.
Reuters
- China threatens retaliation over new U.S. arms sales to Taiwan — China threatened on Thursday to retaliate against the latest U.S. arms sale to Chinese-claimed Taiwan, as the island welcomed the weapons package but said it was not looking to get into an arms race with Beijing.
- Breakingviews – Cox: China addiction looms as big corporate risk — “Nice business you have got here, it would be a shame if something happened to it.” What sounds like a bad line from a mafia television sketch is pretty much the dilemma facing Western multinationals in China.
- China CNOOC says to raise gas’ share to half of output by 2035 — China’s national offshore oil and gas producer CNOOC Ltd said on Thursday it aims to raise the share of natural gas to make up half of its total output by 2035 to contribute to a national carbon neutral target by 2060.
- If you can’t fly, you can’t buy: Chinese U.S. homebuying sinks — U.S. home sales to Chinese buyers may plunge as much as 60% this year, according to a U.S. real estate industry body, as the travel curbs imposed to thwart the coronavirus counter the impact of a surge in the yuan against the dollar.
- China wants to take active role in WHO reform process: foreign ministry — China’s foreign ministry said Beijing wants to take an active role in the World Health Organization reform process.
- Elevator maker Kone profit meets forecasts on improved China demand — Finland’s Kone reported an expected rise in third-quarter profit on Thursday, mainly due to demand for elevators and escalators picking up in China.
- Hungary looking at Russian and Chinese COVID-19 vaccines: PM aide — Hungarian Prime Minister Viktor Orban’s government has asked local health experts to look into the efficacy of COVID-19 vaccines developed by Russia and China for possible later purchases, Orban’s chief of staff said on Thursday.
- China commits to share year-round water data with Mekong River Commission — China on Thursday signed an agreement with the Mekong River Commission (MRC) to share year-round data on the flow of its portion of the vital waterway amid concern that Chinese dams may be causing drought downstream in Southeast Asia.
- China says Taiwan arms sales will have major impact on ties with U.S — China’s Foreign Ministry said on Thursday that the United States’ approval of a potential $1.8 billion arms sale to Taiwan would have a major impact on Sino-U.S. ties, and China will make the necessary response as the situation develops.
- Analysis: China struggles to fill Trump’s ‘America First’ leadership void — As Donald Trump has pulled the United States inward under his “America First” presidency, China has had only halting success at capitalising on a global leadership vacuum, presenting openings for a more internationalist Joe Biden administration if he wins next month’s election.
- Spurred by reform, China’s niche LNG buyers to pour in investments, double imports — A group of niche Chinese gas firms is set to make waves in the global market with plans to invest tens of billions of dollars and double imports in the next decade as Beijing opens up its vast energy pipeline network to more competition.
- Fujifilm partners Shanghai firm to seek China COVID-19 approval for Avigan — Japan’s Fujifilm Holdings Corp said on Thursday it has partnered with Shanghai-based Carelink Pharmaceutical Co to seek approval in China for Avigan to treat COVID-19 and influenza.
- Chinese online tutoring start-up Yuanfudao raises $2.2 billion, values firm at $15.5 billion — Beijing-based education technology startup Yuanfudao said on Thursday that it has secured $2.2 billion from major Chinese and international investors in two recent rounds of financing that it said lifts the company’s valuation to $15.5 billion.
- Analysis: China and U.S. economies diverge over coronavirus response — The United States and China dealt with the spread of the devastating coronavirus pandemic in vastly different ways, and that split is reshaping the global battle between the world’s two leading economies.
- Pompeo says U.S. designates six more Chinese media firms as foreign missions — U.S. Secretary of State Mike Pompeo announced on Wednesday the State Department was designating the U.S. operations of six more China-based media companies as foreign missions, a move he said was aimed at pushing back against communist propaganda.
- China says will maintain ban on outbound tours due to virus risk — China will continue to suspend outbound group tours and ban travel agencies from allowing inbound tours due to the risk of a resurgence in coronavirus cases this winter, authorities said.
- Trump’s reported Chinese bank account raises security concerns: Pelosi — U.S. President Donald Trump’s bank account in China raises serious national security concerns, U.S. House of Representatives Speaker Nancy Pelosi said on Wednesday following a New York Times report revealing the previously undisclosed account.
- Trump’s security adviser says: China is the threat of the century — President Donald Trump’s national security adviser accused China on Wednesday of trying to steal COVID-19 vaccine research from the West, casting it as a malign rival that was seeking to monopolise every important industry of the 21st Century.
- China to expand several outbound investment schemes amid yuan strength: state media — China plans to expand several outbound investment schemes, state news agency Xinhua said on Wednesday, following a steady strengthening in the yuan currency against the dollar.
- Column: China’s rise and U.S. fears about decline – Kemp — In his landmark study of the history of economic growth, Joel Mokyr observed “the best predictor of the living standard that a newborn baby can expect to enjoy is the accident of where he or she is born”. (“The Lever of Riches”, 1990).
- Column: China’s imports are soaking up the world’s excess copper – Andy Home — The refined copper market is on course to register a supply-demand shortfall this year, according to the International Copper Study Group (ICSG).
Xinhua
- Spotlight: China’s economic recovery offers encouraging precedent for world — China’s accelerating economic recovery from the COVID-19 pandemic could continue in the fourth quarter and provide encouraging insight into the post-COVID-19 economic picture, according to investment advisory experts.
- China pledges to build open, transparent capital market system: regulator — China will put in place an open and transparent capital market system, keep its hands off matters that are not subject to regulation, and foster a healthy market ecosystem, the head of the country’s securities regulator said Wednesday.
- China’s Hainan sees GDP rise 1.1 pct in Jan.-Sept. period — China’s southern resort island province of Hainan reported more than 384 billion yuan (about 57.7 billion U.S. dollars) of gross domestic product in the first three quarters, up 1.1 percent year on year, according to official data Thursday.
- GDP of China’s Chongqing up 2.6 pct — Southwest China’s Chongqing Municipality saw its gross domestic product increase 2.6 percent year on year to 1.77 trillion yuan (around 265 billion U.S. dollars) in the first three quarters of this year, official data showed.
- China ready to extend IPO reform throughout capital market: regulator — China stands ready to extend the reform of registration-based initial public offerings (IPOs) system to all parts of its capital markets, a senior official with the country’s securities regulator said Thursday.
- China vows to forestall systemic financial risks: regulator — China’s top banking and insurance regulator will continue to act against systemic financial risks with a long-term mechanism in risk prevention and control, an official said Thursday.
- China’s 5G development showing promising results: MIIT — China’s 5G network development has achieved good results, according to the Ministry of Industry and Information Technology (MIIT).
- China’s solar industry to embrace faster growth amid carbon neutrality goal — China’s solar industry is expected to embrace faster growth as the country aims to have CO2 emissions peak before 2030 and achieve carbon neutrality before 2060.
- Beijing’s foreign trade rises in September — Beijing Municipality saw its foreign trade grow 5.6 percent month on month to nearly 209.5 billion yuan (31.45 billion U.S. dollars) in September, the fourth consecutive month of growth, customs data showed Thursday.
- Macao holds exhibitions to facilitate seeking business opportunities — Three exhibitions kicked off concurrently Thursday in China’s Macao Special Administrative Region (SAR), being aimed partly at facilitating seeking business opportunities.
- China to raise retail fuel prices — China will raise the retail prices of gasoline and diesel from Friday, the country’s top economic planner said Thursday.
- China to improve export control list: spokesperson — The Ministry of Commerce will further improve the country’s export control list and release it in due course, an official said Thursday.
- Interview: China’s import expo showcase of “immense consumption potential”: Brazilian trade expert — The upcoming China International Import Expo (CIIE) is an important platform for global trade and an ideal venue for Brazilian companies to see the “immense consumption potential” of China, Kevin Tang, executive director of the Brazil-China Chamber, has said.
- Japan’s Fujifilm to partner with China’s Carelink to market COVID-19 drug — Japan’s Fujifilm Holdings Corp. will partner with China’s Carelink Pharmaceutical Co. to market the former’s anti-viral drug Avigan to treat COVID-19 cases in China, the Japanese firm said Thursday.
- Chinese shares close lower on Thursday — Chinese stocks closed lower on Thursday, with the benchmark Shanghai Composite Index down 0.38 percent to 3,312.5 points.
- Market exchange rates in China — Oct. 22 — The following are the central parity rates of the Chinese currency renminbi, or the yuan, against 24 major currencies announced on Thursday by the China Foreign Exchange Trade System:
Other Publications
- Defense News: China’s provocations propel decision to include Australia in upcoming Malabar exercise — India announced on Monday that the Australian Navy would join the November 2020 Malabar exercise — an annual, high-end joint exercise conducted predominantly at sea that has included only American, Indian and Japanese forces in recent years.
- The Hill: China could cut our access to critical minerals at any time — here’s why we need to act — By Sen. Ted Cruz and Gov. Mike Dunleavy. The challenge before us remains enormous.
- Nikkei Asian Review: With an eye on China, India gifts submarine to Myanmar — Taking their bilateral defense cooperation to new heights, India is giving a Soviet-era Kilo-class submarine to Myanmar, a move that many analysts see as an attempt by New Delhi to counter China’s clout in the region.