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
- China to Sanction U.S. Weapons Makers Over Taiwan Sales — Washington last week approved deals totaling $1.8 billion for Lockheed Martin, Boeing and Raytheon.
- U.S., India Expected to Sign Military Pact as China Prompts Closer Ties — Pompeo, Esper to ink agreement with Indian officials, part of Beijing-focused diplomatic push in Asia.
- China Trade War Didn’t Boost U.S. Manufacturing Might — Factory production peaked in 2018, data show; Trump advisers say tariff campaign will yield benefits over time.
- China’s Import Surge Drives Optimism in Dry-Bulk Shipping Demand — China is stocking up on commodities to fuel its recovering economy, ship brokers say, and provide a bulwark against renewed supply-chain disruptions.
- Covid-19 Vaccine Makers See Egypt as Crucial Launchpad — Egypt offers platform to deliver vaccine to hundreds of millions of people across Middle East and Africa.
- Huawei Shows Signs of Strain From U.S. Pressure on Chips — Tech giant reports slowdown in revenue growth as supply-chain challenges loom.
- U.S. Has Authority to Ban TikTok, Government Lawyers Say — Proposed restrictions fall within the president’s authority to act on national security threats, U.S. says in court filing.
- 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.
- Ant Group to Raise More Than $34 Billion in Record IPO — The mammoth initial public offering adds to an already frenetic year for China’s capital markets.
The Financial Times
- China’s Covid triumphalism could be premature — A cult of personality around President Xi threatens to bring bad government in its wake.
- China battles new Covid-19 cluster in Xinjiang — Hundreds of cases in heavily surveilled region is country’s worst outbreak for months.
- African debt to China: ‘A major drain on the poorest countries’ — The biggest bilateral lender to Africa this century is hesitant on debt relief as crisis reveals fragmented nature of loans.
- Xi pledge sparks rally in ‘clean energy’ shares — China’s hopes to become carbon neutral by 2060 a boon to solar and wind producers.
- Chinese leadership meets to set policy direction for next 5 years — Priorities are expected to include boosting self-sufficiency and domestic demand.
- Jack Ma rails against global financial rules ahead of $30bn Ant Group IPO — Basel regulations are not relevant for China’s phase of development, says Alibaba founder.
- US chokehold pushes China chip self-sufficiency up the agenda — Beijing’s plans for sector in spotlight as Communist party develops next five-year plan.
- Don’t be blind to China’s rise in a changing world — Anti-Beijing bias has blinded too many for too long to opportunities.
The New York Times
- China Aims to End Extreme Poverty, but Covid-19 Exposes Gaps — The pandemic has worsened longstanding conditions that have widened inequality, hindering Xi Jinping’s vow to “leave no one behind.”
- How The Epoch Times Created a Giant Influence Machine — Since 2016, the Falun Gong-backed newspaper has used aggressive Facebook tactics and right-wing misinformation to create an anti-China, pro-Trump media empire.
Caixin
- China Mulls More Ways for Foreigners to Invest in Its Capital Market — China will ‘further improve and foster an environment with fair competition for domestic and foreign securities and fund institutions,’ CSRC Vice Chairman Fang Xinghai says.
- Yuan’s Rally Against Dollar Is ‘Relatively Mild,’ Foreign Exchange Official Says — The Chinese currency’s performance is ‘in line with those of major currencies’.
- Authorities Looking to Loosen Rules for Foreign Investment in Chinese Assets — Government mulling reform to Qualified Foreign Limited Partnership to cut red tape, expand range of eligible investments.
- Financial Sector Should Avoid ‘Wrong Paths’ of Speculation, Bubbles and Ponzi Schemes, Vice President Says — Wang Qishan tells Shanghai summit that security is the most important principle for the industry.
South China Morning Post
- An emboldened Beijing emerging from the coronavirus could be good news for investors — The triumphalism is clear among China’s leadership as the Central Committee of the ruling Communist Party gathers for a four-day conference in Beijing this week.
- What will China’s next GDP target be? — China’s economic growth rate should be between 5 and 6 per cent in the next few years, a number of studies published ahead of a key policy meeting have concluded.
- US lodges appeal against WTO ruling in China’s favour over trade war tariffs — The United States has lodged an appeal against a World Trade Organization (WTO) ruling that some of President Donald Trump’s trade war tariffs on China were unlawful, according to a Geneva trade official.
- Jio’s smartphone push not as big a threat as geopolitics to Chinese brands in India, say analysts — Indian tech giants are gearing up to take lost ground in a smartphone market dominated by Chinese vendors but analysts do not believe they will dethrone the likes of Xiaomi any time soon, with geopolitics remaining the more imminent threat for Chinese brands.
- Valve tightens rules with Steam China amid greater regulatory scrutiny in the country — Gaming giant Valve Corp now requires developers to obtain government approval for their games before they are allowed on its Steam China platform to comply with tighter regulation of gaming content in the country, the industry’s biggest market.
- Top scientist calls for Hong Kong genetic testing firms to be allowed in Greater Bay Area — One of Hong Kong’s most renowned medical scientists has called for the Greater Bay Area to open its doors to genetic testing firms from the city and extend patent protection there.
- Lack of jobs in Hong Kong, more than national security law, main reason for sharp fall in expats arriving, observers say — A sharp drop in the number of foreigners cleared to work in Hong Kong this year appears to reflect the scarcity of jobs in a stricken economy rather than moves by countries such as the United States and Australia to discourage their citizens from travelling to the city.
- China will focus on self-reliance and cutting financial risk, says Vice-President Wang Qishan — Chinese Vice-President Wang Qishan made his first speech in nearly a year on Saturday, sending a message that Beijing will focus more on economic self-reliance and financial risk ahead of a crucial Communist Party gathering.
- China charm offensive wooing investors in Shanghai, with HSBC, Goldman answering — Chinese financial officials have made fresh promises to open up the financial sector and attract international investors to the country’s main financial centre.
- China’s national pension fund keen to play ‘active’ role in Ant Group’s IPO — China’s national pension fund has said it will be “very active” in the world’s biggest initial public offering from Ant Group, the online payments giant.
- German politicians call for US, Europe to form united front on China — Two high-ranking German officials have called on the United States to work together with Europe in response to China, ahead of the US election next week.
- US judge denies new government bid to remove WeChat from US app stores — A US judge in San Francisco on Friday rejected a Justice Department request to reverse a decision that allowed Apple Inc and Alphabet Inc’s Google to continue to offer Chinese-owned WeChat for download in US app stores.
- Will China follow through on green pledge with Antarctica protections? — China will get a chance this week to make good on its commitment to become a leader in ecological governance, with three new marine protected areas in Antarctica up for debate which, if successful, would be the largest environmental protection event in history.
Bloomberg
- China’s Feud With Bondholders Could Reset Debt Workout Rules — The last time Zambia renegotiated its external debt, the well-oiled machine established by institutional lenders and western governments handled it with little trouble.
- China Reminds Markets Yuan’s Challenge to Dollar Is Still On — Investors wondering how China plans to evolve its financial markets in the coming years need look no further than the commentary from the weekend’s Bund Summit in Shanghai for guidance.
- China’s Strong Yuan Fuels Record Foreign Flows Into Bonds — They came for the yield and stayed for the currency: foreigners are buying Chinese bonds like never before even though domestic investors keep dumping the notes.
- Why Mercedes and BMW are the Cars of Choice in a Pandemic — The extra spending power of wealthy consumers is good news for Germany’s luxury carmakers. So is China’s resilience.
- China’s Xi Rankles South Korea With War Anniversary Speech — South Korea accused Chinese President Xi Jinping of distorting history in a speech he made on the Korean War, offering rare criticism of its biggest trading partner over rhetoric seen as anti-American.
- China’s New Growth Plan May Push Economy Past U.S. Within Decade — President Xi Jinping opened a meeting in Beijing this week to map out the next phase of economic development, just days before one of the most contentious U.S. elections in history will produce a president resistant to China’s ascent no matter who wins.
- Chinese Vaccine for Covid-19? Trump Should Agree to Test in U.S. — The biggest cost of the U.S.-China trade war is the lack of cooperation against Covid-19.
- Hong Kong Sept. Exports Recovered on China, Finance Chief Says — Hong Kong’s exports rebounded in September on the back of a recovering Chinese economy, Financial Secretary Paul Chan said his blog post Sunday.
- Bloomberg New Economy: Semiconductors Are China’s Choke Point — The rule of thumb in the semiconductor industry—Moore’s law—states that the number of transistors on a microchip doubles every couple of years.
- CSRC Seeks More Mutual Investment Between Mainland, Hong Kong — There should be more mutual investment between China and Hong Kong to boost local markets’ access to capital, a top official at China’s securities regulator said.
- Apple Cable Supplier Said to Start Mass Production in India Soon — Cheng Uei Precision Industry Co., a Taiwan-based cable and connector maker, will start mass production for Apple Inc. later this year from its new plant in India, according to a person familiar with the matter, the latest sign of the U.S. company’s increasing presence in the South Asian country.
- PBOC’s Yi Says China to Continue Easing Financial Market Access — China’s central bank governor reiterated the nation’s commitment to further opening up its financial sector and lowering market barriers to foreign investors.
- China’s Development Model Will Spur Reform, Vice President Says — China’s new development model will help further the nation’s reform and opening up, with a bigger focus on domestic demand, Vice President Wang Qishan said.
- Philippines Halts Expat Retirement Visas on Senators’ Concern — The Philippines suspended processing retirement visas for foreigners after senators said they were worried about the high number of people in their 30s arriving from China.
- Why China Could Lose Its War on Pollution — The country has a much harder time tackling big problems than its reputation would suggest.
- China’s Appetite for Beef Is Insatiable, Brazil Producer Says — China will need more beef imports as its demand continues to grow, according to the world’s second-largest producer.
- Brazil Approves Import of China’s Sinovac Vaccine — Brazil’s health regulator authorized the import of a Chinese-produced vaccine after claims from President Jair Bolsonaro that the country lacked the creditability to develop a cure for the coronavirus.
- U.S. and EU Start Dialog on China in Bid for a Shared Approach — The U.S. and European Union have initiated a series of regular diplomatic exchanges on China, highlighting efforts to forge a common transatlantic approach toward its growing geopolitical assertiveness.
- China Loading Up on Sorghum Gives Century-Old Trader a Boost — Eight months after the phase-one trade deal entered into force, China is loading up on American sorghum, with the cereal giving a 128-year-old trading company a boost.
- Top White House Official Criticizes ‘Totalitarian’ Xi in Chinese — A senior White House official delivered a speech in Mandarin attacking Xi Jinping’s “totalitarianism” and calling on the Chinese people to research the “truth” about the country’s oppression of Uighur Muslims.
Reuters
- Column: China’s new international copper contract comes at the right time – Russell — Next month’s launch of an international copper contract in China comes at an opportune moment, as the world’s largest importer and consumer of the industrial metal shows once again just how much it dominates the market discourse.
- Xi’s carbon neutrality vow to reshape China’s five-year plan — Chinese leaders will discuss ambitious new measures to tackle climate change on Monday at a government plenum to finalise a new five-year national development plan, after Chinese President Xi Jinping pledged to make the country “carbon neutral” by 2060.
- Apple supplier Luxshare unnerves Foxconn as U.S.-China feud speeds supply chain shift — Apple’s top iPhone assembler, Taiwan-based Foxconn, has set up a task force to fend off the growing clout of Chinese electronics manufacturer Luxshare, which it believes poses a serious threat to its dominance, three sources with knowledge of the matter said.
- Brazil soars to China’s No. 3 crude oil supplier in September — Brazil jumped to China’s third-biggest crude oil supplier in September, import data showed on Sunday, as China’s independent refiners scooped up cheap supplies of the South American exporter’s relatively high quality oil.
- 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 will improve yuan flexibility, central bank governor says — China will seek to improve the flexibility of its yuan currency and will reduce restrictions on cross-border use of the yuan, the country’s central bank governor Yi Gang said on Saturday.
- China’s purchases of U.S. farm goods at 71% of target under trade deal: U.S. — China has substantially increased purchases of U.S. farm goods and implemented 50 of 57 technical commitments aimed at lowering structural barriers to U.S. imports since the two nations signed a trade deal in January, the U.S. government said on Friday.
- Exclusive: China eyes more corn imports as shipments surge, set to become top buyer — China’s government is discussing permits for millions of tonnes of additional corn imports over the next year, three industry sources told Reuters, amid a surge in animal feed demand and after storms and drought damage tightened domestic supplies.
- Italy vetoes 5G deal between Fastweb and China’s Huawei: sources — Italy has prevented telecoms group Fastweb from signing a deal for Huawei [HWT.UL] to supply equipment for its 5G core network, three sources close to the matter said, the clearest sign yet Rome is adopting a tougher stance against the Chinese group.
- Global steel output rises in September, lifted by Chinese rebound — Global steel output edged up 2.9% year on year in September, the second consecutive month of gains after five months of declines as the coronavirus pandemic depressed industrial activity, data showed on Friday.
Xinhua
- China’s local gov’t debt within official limit by end of September — The total outstanding debt of China’s local governments stood within the official limit at 25.58 trillion yuan (about 3.84 trillion U.S. dollars) at the end of September, according to the Ministry of Finance.
- Bloomberg chairman sees rapid growth in China’s bond market — Bloomberg LP chairman Peter Grauer said Sunday that China’s bond market has grown rapidly and is an increasingly important and vibrant part of global markets.
- Beijing’s financial sector sees positive growth in H1 — Overcoming the adverse effects of COVID-19, Beijing’s financial sector achieved added value of 343.35 billion yuan (around 51.5 billion U.S. dollars) in the first half of this year, up 5.7 percent year on year, data shows.
- China’s Hainan sees more market entities — Southern China’s island province of Hainan saw an increase in the number of market entities in the first three quarters of this year, particularly after the release of a master plan for the Hainan free trade port.
- China unveils new measures to boost private businesses — Chinese authorities have rolled out new measures to beef up support for private enterprises.
- China’s central bank boosts liquidity via reverse repos, treasury deposits — China’s central bank on Monday pumped 100 billion yuan (about 14.99 billion U.S. dollars) into the interbank system, via two liquidity tools of reverse repos and fixed-term treasury cash deposits.
- Hong Kong’s GDP decline will narrow markedly in Q3: financial chief — The decline in Hong Kong’s GDP in the third quarter should narrow significantly from the roughly 9-percent decline in the first two quarters of this year, Paul Chan, financial secretary of the Hong Kong Special Administrative Region (HKSAR) government, said Sunday.
- China’s passenger, cargo transport recovers further — China’s transportation industry further recovered in September as economic rebounds continued amid effective epidemic control, industry data showed.
- Chinese yuan weakens to 6.6725 against USD Monday — The central parity rate of the Chinese currency renminbi, or the yuan, weakened 22 pips to 6.6725 against the U.S. dollar Monday, according to the China Foreign Exchange Trade System.
- ADB approves 420-mln-USD loans for China-Mongolia border ports — The Asian Development Bank (ADB) has approved up to 420 million U.S. dollars for a multi-tranche financing facility to improve economic opportunities and living conditions along the border between China’s Inner Mongolia Autonomous Region and Mongolia, according to Inner Mongolia’s development and reform commission.
- China’s ‘new third board’ sees lower weekly turnover — China’s National Equities Exchange and Quotations (NEEQ), also known as the “new third board,” saw a lower turnover last week.
- China’s agricultural product wholesale prices edge down — The wholesale prices of China’s agricultural products edged down Monday, according to the Ministry of Agriculture and Rural Affairs.
- China’s alcohol-making industry sees profits up 1.3 pct — China’s major alcohol enterprises saw their profits increase by 1.3 percent year on year to reach 103.31 billion yuan (about 15.48 billion U.S. dollars) in the first eight months of 2020, according to data released by the Ministry of Industry and Information Technology.
- China sees surge in medical device manufacturers — China had a total of 26,456 medical device manufacturers at the end of August, up 40 percent year-on-year, official data showed.
- China’s postal industry reports robust revenue growth — China’s postal industry has maintained robust expansion since 2016, with revenues soaring and business volumes hiking.
- China’s coal output edges down from Jan.-Sept. — China’s raw coal output declined 0.1 percent year-on-year to 2.79 billion tonnes in the first nine months of 2020, official data showed.
- China to launch trading of international copper futures — China’s top securities regulator said it had given the green light to the trading of international copper futures.
- Foreign trade of China’s Guangdong rebounds in Q3 — South China’s Guangdong Province saw its foreign trade rise 8.2 percent year on year to 2.03 trillion yuan (around 304 billion U.S. dollars) in the third quarter of this year, customs data said 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 mixed Monday — Chinese stocks closed mixed on Monday, with the benchmark Shanghai Composite Index down 0.82 percent, at 3,251.12 points.
Other Publications
- Nikkei Asian Review: China moves to make digital yuan legal tender — Beijing looks to cement trailblazer status in virtual currencies.
- CNBC: Companies plan to continue shifting supply chains out of China under Biden or Trump, says PwC exec — The beneficiaries of exits from China, home to the world’s second-largest economy, are likely to be countries in Southeast Asia, Mexico and the United States, according to Ryan.
- Nikkei Asian Review: ByteDance weighs listing Chinese unit Douyin — Owner of TikTok involved in talks with investment banks, sources say.
