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
- The U.S. vs. China: The High Cost of the Technology Cold War — The conflict has disrupted the telecom and semiconductor industries in both countries. But the consequences have already begun to spread well beyond those companies.
- In Xi Jinping’s China, Nationalism Takes a Dark Turn — With a push from the government, angry mobs online have swarmed any perceived disloyalty to their country.
- China Economic Rebound Pushes Copper Prices to Multiyear High — The industrial metal, seen as a proxy for global growth, has surged on stronger demand and anticipation that the world’s transition to electric vehicles will drive further consumption.
- China Wants to Be the World’s EV Factory. It May Succeed. — The country has yet to become an export hub for traditional automobiles. But electric vehicles could be another matter.
- Xi Recalls Anti-U.S. Struggle in Korean War: Chinese People ‘Aren’t to Be Trifled With’ — In 70th anniversary speech, Chinese leader whips up nationalist sentiment in defiance of Washington.
- Coca-Cola Expects Growth in China Even as Global Sales Slide — Beverage company’s third-quarter revenue declined 9%.
- Hunter Biden’s Ex-Business Partner Alleges Father Knew About Venture — Former vice president says he had no involvement; corporate records reviewed by The Wall Street Journal show no role for Joe Biden.
- Covid-19 Gives Boost to China’s Telemedicine Industry — The effort could be a model for expansion in other countries.
The Financial Times
- Huawei: stale mate — The Chinese telecoms giant is running out of options in both its handset and network gear businesses.
- Huawei’s revenue growth slows as US tightens sanctions — Chinese tech group’s local smartphone sales drop for first time while inventory fears grow.
The New York Times
- In Xi’s Homage to Korean War, a Jab at the U.S. — China is commemorating the war with a barrage of nationalistic propaganda. “They smashed the myth that the American military was invincible,” China’s leader said.
- Thanks to Trump, Huawei’s Cool New Phones Might Be Limited Edition — The battered Chinese giant won’t say how many of its new handsets it can produce. U.S. restrictions may have curtailed access to essential components.
Caixin
- Chinese Fintech Giant Lufax Aims to Raise $2.36 Billion in New York IPO — Ping An-backed wealth management platform is latest to tap U.S. capital markets despite deteriorating political ties.
- S&P Becomes China’s First Wholly Foreign-Owned Ratings Agency for Exchange-Traded Bonds — Regulators hope foreign competition will strengthen domestic ratings agencies.
- China to Trial Digital Currency and It Doesn’t Matter if You’re Online — Central bank has worked out the technology so its virtual yuan works without an internet connection, official says.
- China Cracks Down on $150 Billion of Cross-Border Gambling — Authorities make more than 60,000 arrests in first nine months, shutting down thousands of illegal online gambling and payment platforms.
- Demand for CICC’s Shanghai IPO Wildly Exceeds Supply of Shares — HK-listed state-owned investment bank set to raise $2 billion in secondary offering it once planned to triple before scaling back.
- There’s No Lasting Shortage Behind China’s Surging Corn Prices, Official Says — Agriculture ministry reassures public that increase is partly due to speculators betting on short-term supply shortfalls.
- Four Things to Watch as China’s Leaders Map Out the Next Five Years — Amid a global pandemic and deepening geopolitical tensions, top Communist Party officials meet next week to decide on policies to drive sustainable economic growth.
- Imitation KFC Launches Imitation Chicken Burgers — Fast food chain Dicos will begin offering Starfield-supplied products at its 2,600 stores China-wide.
- Huawei Debuts Last Premium Phone Series Under U.S. Sanctions — Mate40 smartphones feature advanced Kirin 9000 chipsets that the Chinese tech giant can’t obtain anymore.
- Signs of Stormy Weather Ahead for One of China’s Largest Semiconductor Makers — China Resources Microelectronics, one of China’s largest semiconductor makers, plans to sell $751 million in new shares at an aggressive discount, a signal investors might take to mean the company needs cash and believe its stock is overvalued.
- ‘Double 11’ Shopping Fest Faces Covid-19 Supply Chain Pressures — Alibaba will extend the number of days people can buy goods as part of the “Double Eleven” online shopping extravaganza from the usual one day to four, as some vendors face supply chain pressures related to the Covid-19 pandemic.
- JD.com Expands Robot Delivery Service to New City — JD.com is expanding its use of autonomous delivery robots with the addition of a new Chinese city to its pilot program launched earlier this year.
South China Morning Post
- Huawei says revenue in first three quarters ‘basically met expectations’ amid intense pressure on global supply chain — Huawei Technologies, under fire from the Trump administration, said revenue in the first nine months “basically met expectations” amid the global pandemic and intense pressure on the Chinese technology giant’s supply chain.
- China lifts import ban on scrap metals as coronavirus recovery heaps pressure on domestic metal supply — China has lifted its import ban on some high-quality scrap metals after several years of restrictions, indicating a move towards more recycling to meet a shortage of raw materials caused by the country’s strong economic recovery.
- Hong Kong Wine & Dine Festival moves online for first time as coronavirus pandemic forces event overhaul — The Hong Kong Wine & Dine Festival will be staged almost entirely online for the first time in its 11-year history, as the Covid-19 pandemic forces a drastic redesign of an event previously attracting 180,000 people to the city’s harbourfront.
- US dollar-yuan exchange rate: China sees currency rise as ‘relatively moderate’ despite concerns — The rise of China’s yuan against the US dollar has been relatively moderate and it will still fluctuate around a reasonably balanced level, China’s foreign exchange regulator said Friday, signalling Beijing’s tolerance for the curreny’s recent rise amid escalating trade tensions with Washington.
- Hong Kong, Shenzhen start cross-listing of ETFs, setting a milestone in the financial integration of the Greater Bay Area — Two feeder funds began trading on the Hong Kong and Shenzhen exchanges on Friday , adding to the portfolio of cross-border financial instruments now available to residents of the Greater Bay Area and setting a milestone in the region’s financial integration.
- China’s foreign exchange reserves have been remarkably stable. Puzzled economists wonder why — China’s foreign exchange reserves have shown surprisingly little change in recent years despite volatile economic conditions and exchange rates among its major trading partners.
- iPhone 12 launches in China to strong demand despite stiff competition for Apple in 5G smartphones — When Apple’s new iPhone 12 series smartphones went on sale worldwide on Friday, many people in China were already standing ready. Even by lunchtime, a line snaked outside Apple’s flagship shop in Beijing, located at an upscale shopping centre in Sanlitun.
- Taiwan’s shrinking population forces government to woo overseas talent, retrain workers — With Taiwan’s population set to decline this year for the first time, the government is rolling out a suite of measures to sustain productivity, ranging from importing foreign talent to retraining older workers and boosting childcare subsidies.
- Pinduoduo targets US$150 billion total sales for Chinese brands in new five-year initiative — Social e-commerce giant Pinduoduo has promised to help local manufacturers develop new home-grown brands and achieve 1 trillion yuan (US$150 billion) in total sales over the next five years, as China sharpens its focus on building up its domestic consumer market.
- Cathay pilots union tells Hong Kong-based members not to sign new pay-slashing contracts — After seeking legal advice, Cathay’s pilots union has asked its 2,200 Hong Kong-based members not to sign salary-slashing new employment contracts handed out in the wake of massive job cuts, with the airline’s pilots based outside the city also facing an uncertain future.
Bloomberg
- Ming Dynasty Scroll Sells for Record $77 Million at Auction — A handscroll painting from the Ming dynasty by artist Wu Bin sold for 512.9 million yuan ($77 million), breaking the world record sale price for ancient Chinese calligraphies and paintings, according to Poly Culture Group Corp.
- China’s 2020 Corn Imports Are Already the Highest In 15 Years — China imported more corn in the first nine months of 2020 than in any full year in about 15 years, with the nation boosting purchases on shrinking state stockpiles and to meet its trade commitments with the U.S.
- U.S. Solar Group Calls for Pulling Out of Xinjiang Over Abuses — The leading U.S. solar-trade group is calling on companies to move their supply chains out of a Chinese region, citing reports of human-rights abuses.
- Tesla Is Recalling About 30,000 Imported Vehicles in China — Tesla Inc. is recalling about 30,000 imported Model S and Model X vehicles in China because of suspension problems, a setback for the U.S. electric-car maker just as it faces intensifying competition in the world’s largest auto market.
- Hong Kong Connect Opens China ETF Market to Global Investors — China’s fast-growing $157 billion market for exchange-traded funds became directly accessible to overseas investors Friday, at least four years since the plan was first hatched.
- China Warns on ‘Red Lines’ in Remembering Its Only War With U.S. — China is going all out in remembrance of its participation against the U.S. in the Korean War, sending a message to Washington that it’s not intimidated by American military might.
- A Strong Chinese Economy Makes Up for Many Shortcomings — A strong Chinese economy can make up for many shortcomings.
- Tycoon Who Helped Evergrande Has Debt Challenges of His Own — Hui Ka Yan built China Evergrande Group with support from a tight-knit group of fellow real estate billionaires with a fondness for poker.
- Trump Brings Man Claiming Biden Business Relationship to Debate — President Donald Trump brought a guest to his debate with Joe Biden on Thursday, a man named Tony Bobulinski who claimed without evidence to have discussed a business venture in China with the former vice president and his son.
- 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.
- China Gets Richer as Virus Drags on U.S., Credit Suisse Says — The pandemic that’s led to more than 1 million deaths globally has also led to a decline in individual wealth, yet household wealth largely held up and even increased in China and India.
Reuters
- U.S. says no justification for ‘concentration camps’ in China — The deputy White House national security adviser on Friday denounced China’s treatment of Uighur Muslims, saying there was no justification for the country maintaining “concentration camps” within its borders.
- Daimler lifts profit forecast as China snaps up luxury cars — Daimler raised its profit outlook for 2020 on Friday after a record 24% jump in Chinese demand for its Mercedes-Benz cars boosted margins in the third quarter, though it warned that a spike in COVID-19 infections made forecasting hard.
- China, HK exchanges discussing adding hot STAR shares to Stock Connect — Stock exchanges in mainland China and Hong Kong are discussing adding the Nasdaq-style STAR Market to a scheme connecting the two markets, the Chinese securities watchdog said on Friday, which would give foreign investors access to some of the country’s hottest shares.
- U.S. urges Sri Lanka to make ‘difficult’ choices over China ties — The United States will urge Sri Lanka to make “difficult but necessary choices” on its economic relations when Secretary of State Mike Pompeo visits there next week, a senior U.S. official said on Thursday, apparently referring to China’s deepening influence over Colombo.
- In Asia, Pompeo expected to bolster allies against China — U.S. Secretary of State of Mike Pompeo is flying to India next week to strengthen strategic ties with a nation that is locked in a military standoff with China, in Washington’s latest effort to bolster allies against Beijing.
- China says honours its obligations over North Korea sanctions — China said on Friday it honours its obligations on sanctions, after a U.S. justice official accused China of helping North Korea launder money from massive cyber thefts that Pyongyang has carried out to raise funds in the face of international sanctions.
- China reserves right to take more steps over UK visas for Hong Kong citizens — China reserves the right to take additional steps over Britain’s visa policy for some Hong Kong citizens, China’s foreign ministry spokesman Zhao Lijian told a news briefing on Friday.
- Cambodia breaks up protest over alleged China military base — Cambodian security guards broke up a small protest on Friday near the Chinese embassy opposing alleged plans to boost Beijing’s military presence in the country, as police detained some demonstrators for questioning.
- Exclusive: China likely to issue more corn import quotas, buy millions of tonnes of crops – sources — China’s government is expected to issue more import quotas and buy millions of tonnes of additional corn in the new crop marketing year, three industry sources said, amid a surge in animal feed demand and tightening supplies.
- China to set five-year plan for steering economy through choppy waters — China’s top leaders will chart the country’s economic course for 2021-2025 at a key meeting starting on Monday, seeking to balance growth and reforms to avoid stagnation amid an uncertain global outlook and deepening tensions with the United States.
- Chinese low-cost carrier Spring soars amid COVID downturn — Chinese budget carrier Spring Airlines is leveraging its low-cost position to attract customers with cheap fares as the country’s domestic aviation market recovers, pursuing an aggressive expansion strategy that could soon turn profitable.
- China imposes anti-dumping measures on U.S., South Korea, EU rubber imports — China’s Ministry of Commerce said on Friday that it will impose temporary anti-dumping measures on some rubber imports from the United States, South Korea, and the European Union from Oct. 28.
- Senior U.S. official accuses China of aiding North Korea cyber thefts — A senior U.S. justice official accused China on Thursday of helping North Korea launder money from massive cyber thefts it has carried out to raise funds in the face of international sanctions.
- China and Germany heading for superpower status as U.S. influence wanes, says Putin — The era when the United States and Russia decided the world’s most important questions is in the past, President Vladimir Putin said on Thursday, saying China and Germany were now heading for superpower status.
Xinhua
- China’s Shanxi sees GDP up 1.3 pct in first three quarters — The gross domestic product (GDP) of north China’s Shanxi Province totaled around 1.25 trillion yuan (about 187 billion U.S. dollars) in the first three quarters of this year, up 1.3 percent year on year, the provincial statistical bureau said Thursday.
- Chinese banks report forex settlement surplus in September — China’s commercial banks saw a net forex settlement surplus of 26.9 billion yuan (about 4 billion U.S. dollars) in September, the country’s forex regulator said on Friday.
- China’s Shaanxi sees robust foreign trade in first three quarters — The total value of imports and exports of northwest China’s Shaanxi Province was 279.07 billion yuan (about 41.8 billion U.S. dollars) in the first three quarters of the year, an increase of 7.2 percent over the same period last year, customs figures showed Friday.
- Chinese shares close lower on Friday — Chinese stocks closed lower on Friday, with the benchmark Shanghai Composite Index down 1.04 percent to 3,278 points.
Other Publications
- The Diplomat: Why China Needs an Arctic Policy 2.0 — It is time for China to shed light on which kind of order it would like to construct in the Arctic using its rising power.
- Nikkei Asian Review: China meets 5G base station target 3 months early — Government push gives Huawei a boost as total surges to 690,000.
- Nikkei Asian Review: Taiwan’s UMC nears settlement on leaking Micron secrets to China — Proposed deal shows US values ties with Taiwanese chip industry, analysts say.
- Nikkei Asian Review: Tesla rides high on cost savings from China’s Gigafactory — Global electric vehicle leader on track to generate profit from carmaking.
- The Economist: Apparatchiks and academics alike struggle to take China’s pulse — Pollsters have to use roundabout ways to find out what people are thinking.