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
- With Baby Steps, Chinese Parents Test Strictness of the Two-Child Policy — While Beijing hasn’t signaled it is ready to give up birth limits altogether, there are signs punishments have become less strict in some places; ‘one eye open, one eye closed’.
- U.S. Puts Tariffs on Chinese Twist-Ties — Commerce Department rules that China manipulated its currency to boost its sales of plastic ties.
- The Truth About Chinese Bonds — Beijing’s latest stab at financial reform is one of its riskiest.
- Europe Doubles Down on Data Protection to Ward Off Silicon Valley, Chinese Influence — New EU proposal aims to offer protections for corporate and public-service data as GDPR covers individuals.
The Financial Times
- Spate of Chinese defaults tests investor confidence — Tremors shed light on weaknesses of world’s second-biggest bond market.
- Arm China chief defends move to seize control of unit — Allen Wu denies conflict of interest over $100m fund and claims chip designer was aware of his plans.
- China slaps tariffs on Australian wine as trade tensions worsen — Beijing imposes duties of up to 212% as coal ships remain blocked from docking off coast.
- The ‘bloodsucking capitalist’ being lauded by Communist China — Entrepreneurs urged to follow Zhang Jian’s example after Jack Ma’s fall from grace.
- The EU plan to live in a raw materials world — China supplies 98% of the bloc’s rare earths, and has exploited that bottleneck.
- The worrying precedent in China’s quarrel with Australia — Democratic countries should co-ordinate responses to pressure from Beijing.
- Chinese media step up campaign to muddy probe into Covid origins — Communist party newspaper tries to undermine belief virus jumped to humans within the country.
- Chinese tech companies write off India — Start-ups face huge losses as New Delhi issues fresh bans on Chinese apps.
- Hong Kong’s independent judiciary braced for Beijing onslaught — Territory’s respected legal system at risk from China’s campaign against dissent.
The New York Times
- They Beat Back the Virus (Again and Again and Again) — Hard-to-trace clusters, along with pandemic fatigue, have forced officials in Hong Kong, South Korea and Japan to keep recalibrating their responses.
- Reports of Hong Kong’s Death Are Greatly Exaggerated — The democracy movement may be quiet. But it is alive and it will survive.
Caixin
- Liu He Calls for China to Get Technologically Self-Reliant, Fast — Vice premier says cultivating innovation will be crucial for the country to meet its economic goals.
- What’s Stopping More Foreigners From Using the Yuan? In Part, It’s China, Experts Say — Progress in promoting the currency has been hindered by Chinese regulations as well as tensions with the U.S.
- Hong Kong to Create 2,000 Jobs for Local Youth in Greater Bay Area — Carrie Lam cites employment potential as jobless rate in HK for those between 20 and 24 years old hovers close to 20%.
- Smart Cars and Internet of Things Face Growing Cybersecurity Risks — China’s ‘cloudification’ is posing growing cybersecurity risks, experts say.
- Fosun Bows Out of Cirque du Soleil as Show Goes on in China — Shanghai-based conglomerate purchased a minority stake of artsy Canadian acrobatic troupe in 2015, aiming to bring the brand to the Chinese mainland.
- China Needs Drastic Action on Coal to Meet Carbon Neutrality Pledge — Country has to stop building coal power stations, slash fuel’s proportion of energy mix, experts say.
- Alibaba’s Healthcare Unit Finds Tonic for Profits — Alibaba’s healthcare subsidiary AliHealth turned a profit in its latest reporting period, as medicine and healthcare product sales at its self-run online store grew significantly.
- Ruhnn, Another U.S.-Listed Chinese Company Looks to Go Private — Ruhnn Holding Ltd., a Chinese company that promotes e-commerce through online influencers, may say goodbye to the Nasdaq just a little more than a year after its listing there, as the U.S. government moves to crack down on Chinese companies on American stock exchanges.
South China Morning Post
- Donald Trump’s mooted China sanctions to throw spanner in the works of C919 passenger jet plans, sources say — China’s plans to roll out the home-grown C919 passenger jet next year could be severely disrupted if the Trump administration restricts US companies from doing business with the state-owned conglomerate developing the plane due to its alleged links with the Chinese military.
- China’s former central bank chief urges revamp of modern central banking — A former long-standing governor of China’s central bank has backed reforms to the way inflation is defined and measured to reflect new social and economic realities, a proposal that may lead to a wholesale retooling of modern central banking that has been serving the global growth since the early 1990s.
- Japan condemns China’s renewed Diaoyu claim days after Wang Yi’s comments — Japanese Foreign Minister Toshimitsu Motegi on Friday rejected as “totally unacceptable” his Chinese counterpart’s recent public remarks claiming Beijing’s sovereignty over the Tokyo-administered Senkaku Islands in the East China Sea.
- Fists and pig guts fly and opponents hog the floor in Taiwan parliament debate over US pork imports — Legislators from Taiwan’s main opposition Kuomintang (KMT) party threw pig guts and exchanged punches with other lawmakers in parliament on Friday as they tried to stop the premier taking questions, in a bitter dispute over easing US pork imports.
- Hang Seng Index hits nine-month high as Chinese industrial profit report reassures investors mainland recovery is under way — Hong Kong and mainland China stocks both gained, with the city’s benchmark closing at a nine-month high, as an acceleration in profit growth for industrial companies added to evidence that a recovery in the world’s second-largest economy will be sustainable.
- How AI and big data helped China’s tech giants dominate consumer finance — This is the second in a five-part series looking at China’s fintech industry in the wake of the decision by regulators to suspend the initial public offering of Ant Group, which was widely expected to be the world’s biggest capital raising.
- China closing in on declaring initial victory in beating poverty despite turbulent 2020, but concerns remain — China claims to have lifted the last group of over 800 poor counties out of absolute poverty, one of the final steps to eradicating extreme poverty in the country of 1.4 billion people, despite a turbulent 2020.
- China’s industrial giants see profits in October grow at fastest pace in nearly nine years — China’s industrial giants saw their profits grow for a sixth straight month in October, indicating continued recovery from the coronavirus pandemic in the world’s second largest economy.
- China lifts thermal coal import quota by 20 million tonnes, but Australia unlikely to gain — China has increased its import quota for thermal coal by 20 million tonnes to see it through until the end of the year, although Australian shipments of the commodity will not benefit as US$500 million worth of its coal exports remains stuck at Chinese ports amid a blistering row between the two countries.
- US-China relations: Beijing sees chance for thaw in ties under Biden, but keeps expectations in check — China is seeking to open new channels of communication with the incoming White House administration of President-elect Joe Biden, but some Chinese analysts have warned against unrealistic expectations that tensions can be easily resolved.
- Convoy stymies second-largest shareholder’s bid for board seat, repelling boardroom coup as court verdict looms on fraud case — Convoy Global Holdings succeeded in repelling an attempt by its second-biggest shareholder to remake the board and management of the company at the centre of Hong Kong’s biggest fraud case, days before the alleged ringleader is expected to receive a verdict in court.
- Hong Kong’s leader says she hopes opposition councillors will support new Southern district initiative, despite not consulting them on it — Chief Executive Carrie Lam Cheng Yuet-ngor has expressed hope that the opposition-controlled Southern District Council will support her newly announced “Invigorating Island South” initiative, even as she admitted that she had never sought their opinion before publicly announcing the measure.
- Hong Kong home prices to extend decline after October’s 0.6 per cent surprise drop as Covid-19’s fourth wave dents confidence — The fourth wave of coronavirus infections is expected to drag Hong Kong’s home prices down further after they “unexpectedly” fell 0.6 per cent in October.
- Hong Kong leader Carrie Lam warns against anti-mainland China stigma over policy address’ youth job scheme — Hong Kong’s leader has warned against stigmatising the city’s economic integration with mainland China over a new scheme that subsidises the hiring of local university graduates to work over the border, insisting the move is urgently required to tackle youth unemployment.
- Big bang or damp squib? Why Hong Kong leader’s 2020 policy address may not really be the confidence booster a weary city needs — Hong Kong leader Carrie Lam Cheng Yuet-ngor had pinned high hopes on her latest policy address, assuring residents of the central government’s unwavering support to jump-start the city’s sputtering economy as she listed out initiative after initiative over more than two hours on Wednesday.
- Big-spending Hong Kong Tourism Board slammed over mega events that failed to attract many visitors — Hong Kong’s tourism promoter splashed hundreds of millions of dollars on mega events to entice visitors in the years before the economic downturn, only to receive a lukewarm response, according to the government audit watchdog.
- China rebukes internet companies for weak user data protection in their apps — Chinese regulators have reprimanded some of the country’s biggest technology companies for weak protection of user data, about a year after the government cracked down on a large batch of apps for breach of personal information.
- China tops world in AI patent filings, surpassing the US for the first time — China now leads the world in artificial intelligence patent applications, surpassing the United States for the first time, a development seen bolstering the country’s position as the second-largest market for AI amid Beijing’s tech and trade war with Washington.
- Alibaba Health stock jumps on earnings report as Covid-19 fuels health care spending — Alibaba Health Information Technology’s stock surged jumped by the most in four months after the company reported a profitable first half, as the coronavirus pandemic raised awareness and fuelled demand for its goods and services.
- China’s ‘wild era’ of internet may be ending as new personal data protection law seeks to curb Big Tech’s control over user data — China’s new data privacy laws could see the beginning of the end of the country’s “wild era” of internet development where platforms have been free to collect and use citizens’ personal information.
- Britain commits US$333 million to help carriers replace Huawei 5G — Britain will spend £250 million (US$333 million) to diversify its sources of 5G wireless equipment after banning China’s Huawei Technologies Co. from supplying the next-generation technology.
Bloomberg
- China Display Maker Ditches U.S. to Seek $1.8 Billion Local IPO — Chinese flexible display maker Royole Corp. is seeking to raise as much as 12 billion yuan ($1.8 billion) in an initial public offering on Shanghai’s Star Market board after its U.S. listing plan was shelved, according to people familiar with the matter.
- U.S., Taiwan to Push an Alternative to China’s Belt and Road — An informal U.S.-led alliance to provide an alternative to China’s Belt and Road Initiative will provide greater transparency to countries seeking funding to develop their infrastructure, Taiwan’s finance minister said.
- Taiwan Raises GDP Forecast on Better-Than-Expected Exports — Taiwan raised its forecast for growth this year as stronger-than-expected international demand for technology products shielded the economy from the global slowdown fueled by Covid-19.
- China Seeks to Import Jet Fuel Ahead of Lunar New Year Holidays — Lunar New Year may be more than two months away but one Chinese fuel supplier is already gearing up for an expected surge in air travel.
- Suning.com Is Said to Mull E-Commerce Business Stake Sale — Suning.com Co., one of the largest retailers in China, is considering selling a stake in its e-commerce business as it aims to ease financing pressures, according to people familiar with the matter.
- China’s Set to Import More U.S. Corn and Squeeze Global Prices — China is set to import more U.S. corn, with volumes for next year seen hitting the top end of market expectations and squeezing global grains prices.
- India Steps Up Efforts to Draw Neighbors Closer to Counter China — India has stepped up efforts to mend strained ties with its South Asian neighbors as it seeks to wrest back its waning regional influence from China.
- China’s Industrial Profits Surge at Fastest Pace in Nine Years — Profits at Chinese industrial enterprises surged at the fastest pace in a single month in almost nine years in October, a further sign the economic recovery is gathering pace.
- Evergrande’s Spinoff No Windfall for Chairman Hui’s Poker Pals — China Evergrande Group was able to pull off the spinoff of its property-management arm, but for Chairman Hui Ka Yan and his long-time allies, there will be no fireworks, champagne or celebratory handshakes.
- Hong Kong Integration With China a ‘Great Thing,’ Lam Aide Says — A top adviser to Hong Kong’s leader said integration with mainland China was a “great thing” for many people in the city, days after Chief Executive Carrie Lam spoke of a future tied to Beijing in her annual policy address.
- Evergrande Unit Is Said to Raise $1.84 Billion in Hong Kong IPO — China Evergrande Group’s property management arm has raised about HK$14.3 billion ($1.84 billion) after pricing shares in its Hong Kong initial public offering at HK$8.80 each, according to people familiar with the matter.
- Asia’s Office REITs Prove Resilient in Hong Kong and Singapore — The office may never reach its past heights in the post-pandemic world but the outlook for Singapore and Hong Kong offices is promising.
- Chinese State Media Signals No Interest Rate Hike Soon — China is very likely to exit from some of its stimulus measures as the economy improves, but there won’t be any interest rate hike soon, a leading state newspaper said on its front page Thursday.
- China Reaches Out to Long-Time U.S. Allies South Korea, Japan — China’s top diplomat wound down a trip to Japan and South Korea aimed at boosting ties with the U.S. allies, as the region prepares for the Trump administration to end.
- Boris Johnson’s Conservatives Are Burning Bridges With China — As a prominent China critic and advocate of Hong Kong’s freedoms, Benedict Rogers is used to unwanted attention. But even he was surprised when he found out that the Chinese embassy in London had attempted to persuade members of the British Parliament to warn him off.
- Covid Vaccine Rush in China Raises Fears of Booming Black Market — Before a planned trip to the U.S., Cheng wanted to get vaccinated against Covid-19. To do so, he asked a friend working at a cold-chain logistics company in southeast China to pretend he was employed by the firm, allowing Cheng access to one of the country’s experimental shots.
- China’s Fintech Giants Scramble to Rethink IPOs, Raise Cash — Jack Ma’s vision of the future of finance in China is being upended by regulators, along with the ambitions of conglomerates that followed his lead.
- Nintendo Adds Sharp as Assembler of Popular Switch Console — Nintendo Co. has added Sharp Corp. as an assembler of its Switch console, according to people directly involved in the matter, as it works to stabilize production and hedge against U.S.-China trade tensions.
- Xi Seeks to ‘Manage Differences’ as He Congratulates Biden — China’s President Xi Jinping broke his silence on Joe Biden’s election victory, sending the U.S. president-elect a message that he hopes to “manage differences” and focus on cooperation between the world’s two largest economies.
- Australia Seeks to Break China Coal Stalemate as Tensions Rise — Prime Minister Scott Morrison said he’s appointed his “best people” to work on breaking a stalemate that’s seen more than 50 ships laden with Australian coal stranded off Chinese ports, as tensions between the trading partners increase.
- Carrie Lam’s Speech Provides Little Solace for a Protest-Free Hong Kong — The fourth policy address from the city’s chief executive clocked in at roughly 24,000 words. It still contained little solace for a bruised financial hub.
- TikTok Granted One-Week Extension of Forced-Sale Deadline — The Trump administration has given TikTok’s Chinese owner another week to complete a sale of its popular video-sharing app in order to resolve U.S. national security concerns.
- India Risks Losing to Trade Bloc Defeating Very Reason It Exited — India’s key manufacturing exports may lose market share to a China-backed Asian trade bloc, from which Prime Minister Narendra Modi walked away last year to protect the interests of local farmers and industry.
- China’s Recovery Stabilizes as Exports, Markets Continue to Boom — China’s economic recovery stabilized in November, underpinned by solid global demand for exports ahead of the Christmas period and the stock market’s gain to its highest since 2015.
- Copper Hovers Near Six-Year High on Chinese Demand Outlook — Copper closed near its highest price since 2014 as investors weighed robust demand from China against U.S. jobless data and the long-term effects of the pandemic.
Reuters
- China’s Shandong Gold says Canada extends review of its bid for Arctic mine — China’s Shandong Gold Mining Co said on Friday it had been notified by the authorities in Canada that they would extend a security review into the company’s bid to acquire an Arctic gold mine by at least 45 days.
- Steak out: China’s coronavirus testing chokes beef trade — In a supermarket in downtown Beijing, refrigerator shelves normally filled with steak from around the world sit empty as tougher testing for the novel coronavirus creates supply bottlenecks and raises prices for importers.
- China’s factory growth likely edged up in November: Reuters poll — China’s factory activity likely expanded at a slightly faster pace in November, a Reuters poll showed on Friday, as the world’s second-largest economy steadily recovers from the coronavirus crisis.
- How parent of BMW’s China partner drove to the brink of bankruptcy — In October 2003, the first China-made BMW 325i sedan rolled off a new production line owned by the German luxury brand and its joint venture partner, Brilliance, a subsidiary of provincially owned automaker Huachen Group.
- Timeline: Tension between China and Australia over commodities trade — Australia’s ties with top trade partner China soured in 2018 when it became the first country to publicly ban China’s Huawei from its 5G network, and worsened after Canberra called for an enquiry into the origins of the coronavirus.
- China’s industrial profits grow at quickest monthly pace since early 2017 — Profits at China’s industrial firms grew in October for a sixth consecutive month and at their quickest pace since early 2017, pointing to a steady recovery in the manufacturing sector after it was hard hit by the COVID-19 pandemic.
- China’s first Hualong One nuclear reactor starts operations — China National Nuclear Corp(CNNC) said on Friday its first Hualong One, a third-generation pressurised water nuclear reactor, has started operations and is connected to the grid.
- Exclusive: Venezuela resumes direct oil shipments to China despite U.S. sanctions — Venezuela has resumed direct shipments of oil to China after U.S. sanctions sent the trade underground for more than a year, according to Refinitiv Eikon vessel-tracking data and internal documents from state company Petroleos de Venezuela (PDVSA).
- China wields patriotic education to tame Hong Kong’s rebellious youth — Cua Chiu-fai is on a mission to rid Hong Kong’s classrooms of what he sees as poisonous anti-China bias. His soldiers: mainly parents. He has recruited hundreds of mothers and fathers to monitor and report on teachers deemed guilty of filling their students with hate for China and urging them to take to the streets in protest.
- South Korea, China agree on early Xi visit, North Korea talks — South Korea and China agreed on Thursday to prepare for a visit to South Korea by Chinese President Xi Jinping and to cooperate on stalled talks on North Korea’s nuclear programme and on tackling the novel coronavirus.
- China senior diplomat Wang says dialogue must persist on Korean peninsula issue — China’s State Councillor Wang Yi on Thursday told South Korean President Moon Jae-in the two countries must persist in trying to resolve the Korean peninsula issue through dialogue, according a statement from China’s Ministry of Foreign Affairs.
- With frozen food clampdown, China points overseas as source of coronavirus — As global COVID-19 infections surge, China is pushing a narrative via state media that the virus existed abroad before it was discovered late last year in the central city of Wuhan, where it was traced to a seafood market.
- Tesla plans to produce electric car chargers in China — Tesla Inc said on Thursday it planned to start making electric vehicle (EV) chargers in China in 2021, part of the U.S. carmaker’s push to boost sales in the world’s biggest car market.
- Exclusive: Foxconn to shift some Apple production to Vietnam to minimise China risk — Foxconn is moving some iPad and MacBook assembly to Vietnam from China at the request of Apple Inc, said a person with knowledge of the plan, as the U.S. firm diversifies production to minimise the impact of a Sino-U.S. trade war.
- China’s largest wholesale market suspends sales, storage of frozen goods as COVID precaution — China’s biggest wholesale food market has suspended the sale and storage of chilled and frozen meat and seafood as the government ramps up inspections of cold-chain goods after several new cases of coronavirus infections.
- China hits 26% of 2020 target for U.S. energy imports under trade deal — China has accelerated imports of crude oil, propane and liquefied natural gas (LNG) from the United States since July, but total energy product purchases through October remain far short of targets for 2020 set out in the Phase 1 trade deal with Washington.
- South Korea’s Moon vows to work with China to end war, build peace on Korean peninsula: Blue House — South Korea’s President Moon Jae-in said on Thursday that he will continue to work with China to end war and build lasting peace on the Korean peninsula, his office said.
- China says lodged stern representations with the U.S. over Iran-related sanctions — China said on Thursday it has lodged stern representations with the United States after Washington announced fresh Iran-related sanctions on four entities.
- Column: China’s crackdown on Australian coking coal hurts its steel industry – Russell — China’s unofficial restrictions on coal imports from Australia are having more than just an impact on miners down under, it’s hurting steel producers in China and helping those elsewhere.
- Breakingviews – Trump could box Biden into a corner on China — Donald Trump has only two more months to lash out at China as U.S. president. But his successor, Joe Biden, will also feel the impact of whatever blows the outgoing commander in chief decides to land before he departs in January. The risk is that the president-elect will be left with little room to make his own mark.
- Chinese foreign minister arrives in South Korea amid talk about Xi visit — Chinese Foreign Minister Wang Yi arrived in South Korea for talks on Wednesday amid talk of a trip to Seoul by Chinese President Xi Jinping.
- Japan’s Suga calls for stable ties with China in first high-level meeting — In his first high-level meeting with Beijing, Japanese Prime Minister Yoshihide Suga said stable ties with China were important, as his country pursues a balancing act with its neighbour.
- China’s imports of U.S. soybeans surge in October — Chinese imports of U.S. soybeans surged almost three-fold in October on a year-on-year basis, customs data showed on Wednesday, as cargoes booked following a Phase 1 trade deal between the United States and China arrived in the country.
- Exclusive: India import hurdles hit Apple iPhone, Xiaomi devices from China, say sources — India’s tight control of quality clearances for electronic goods from China slowed the import of Apple’s new iPhone model last month and held up other products made by companies like Xiaomi, according to two industry sources.
Xinhua
- Economic Watch: Opening up, tech cooperation essential to China’s new development paradigm — Further opening up and strengthening international cooperation in technological innovation are essential to China’s pursuit of a new development paradigm, according to economists from a Chinese government think tank.
- Profits of China’s SOEs continue to climb in October — Profits and revenues of China’s state-owned enterprises (SOEs) continued to post year-on-year growth in October, data showed on Thursday.
- China expands domestic route airfare reform — The Civil Aviation Administration of China (CAAC) said Thursday that it would liberalize airfares of domestic routes operated by at least three airlines from Dec. 1.
- Interview: China’s economic recovery has great importance for world, says OECD expert — The full recovery of the Chinese economy is of great importance for the world, Margit Molnar, head of the China Desk of the Organization for Economic Co-operation and Development (OECD), told Xinhua in a recent interview.
- China conducts this year’s 11th central bank bills swap — The People’s Bank of China, the central bank, said it would conduct this year’s 11th central bank bills swap (CBS) operation on Friday to improve the liquidity of perpetual bonds issued by commercial banks.
- China’s industrial profits up 28.2 pct in October — Profits of China’s major industrial firms totaled 642.91 billion yuan (about 97.77 billion U.S. dollars) in October, increasing by 28.2 percent year on year, data from the National Bureau of Statistics (NBS) showed Friday.
- Across China: Tourism whips up blissful life for Tibetan herders — Snowflakes running along the ground and shades of green and yellow trees decorate the picturesque Zhagana Mountains, northwest China’s Gansu Province, into a palette, attracting throngs of tourists despite the cold weather.
- Malaysia’s October exports up 0.2 pct year-on-year — Malaysia’s exports rose 0.2 percent to 91.05 billion ringgits (22.36 billion U.S. dollars) in October from a year ago, largely due to increased exports to the United States, China, India and Britain, official data showed Friday.
- Tesla recalls 870 vehicles in China — U.S. electric car maker Tesla has launched a recall of 870 vehicles in China, citing defective parts that could increase the risk of accidents, China’s top quality watchdog said Friday.
- First batch of China-made Tesla sedans arrives at Belgium’s Zeebrugge port — After roughly one-month at sea, the vessel carrying the first batch of made-in-China Tesla Model 3 exporting to Europe has arrived at Zeebrugge port in Belgium on Thursday evening, according to the Automatic Identification System (AIS) data of the vessel.
- China Southern Airlines’ subsidiary announces restructuring — China Southern Airlines General Aviation Limited announced ownership restructuring on Thursday as the country pushes mixed-ownership reform of state-owned enterprises (SOEs).
- China’s tech giant Xiaomi opens first store in El Salvador — China’s tech giant Xiaomi, known for its smartphones, opened its first store in El Salvador on Wednesday, also the brand’s largest shop in the Central American region.
Other Publications
- Nikkei Asian Review: China slips in COVID-19 vaccine race on doubts over effectiveness — Xi made inoculation diplomacy a key part of global strategy.
- Nikkei Asian Review: Suga’s diplomacy faces harsh test under pressure from China — Japan’s leader needs to display clear vision of the world in promoting Indo-Pacific strategy.