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’s Wolf Warriors Try Wine Coercion — New tariffs against Australia send a menacing message.
- U.S. Blacklists Chinese Defense Firm for Sales to Venezuela — Trump administration says China National Electronics Import & Export Corp. sold goods that aided repression by Maduro regime.
- NATO Should Expand Its Focus to Include China, Report Says — Alliance to update strategy document that predates Russia’s seizure of Crimea and China’s military buildup.
The Financial Times
- China’s move on Ant makes the fight on Big Tech global — Powerful companies are impinging on the norm-setting roles of governments themselves.
- Belt and Road pollution blacklist discourages fossil fuel investments — Study urges Chinese banks to steer clear of projects that damage the environment.
- How 2020 turmoil will reshape the future of Hong Kong financial hub — Pandemic, protest and paused Ant IPO hit hard but the territory still has a refashioned role.
- China state-owned group caught in default storm owes banks billions — Revelation that Huachen borrowed $5.1bn could prompt concerns over credit system.
The New York Times
- The World in a Vise: Sounding the Alarm on China, Then Running for Shelter — When Australia’s leader demanded an apology for a tweet by a Chinese official, his response reflected the insecurities facing many countries in dealing with China.
- ‘Trump Is Better’: In Asia, Pro-Democracy Forces Worry About Biden — The president-elect’s aim of returning normalcy to foreign policy has spooked human rights defenders in Asia, who see President Trump as someone who confronted dictators.
- NATO Needs to Adapt Quickly to Stay Relevant for 2030, Report Urges — After France’s president said NATO was suffering “brain death,” the alliance sought advice on how to stay vibrant as it faces new challenges from Russia and China.
Caixin
- In Depth: China’s Digital Currency Ambitions Lead the World — The future of money is electronic and Beijing wants to own it.
- Container Shortage Shows China’s Export Dominance During Pandemic — Shipping containers have piled up elsewhere in the world as Chinese exports continue to outpace their foreign competitors.
- Alibaba-Backed Easyhome Finds Cash Cushion With $546 Million Placement — Company sold new shares at a 20% discount to group of 23 investors, and will use funds to revamp stores and shore up its capital.
- Display-Maker BOE Seals $1.1 Billion Deal to Buy 35% of Smaller Rival — Purchase of money-losing company in the city of Chengdu marks the latest step in consolidation of China’s panel-making industry.
- Meituan Gains $88 Million From Investment in Li Auto — Chinese food delivery giant beats estimates for third-quarter revenue and profit as net income excluding investment gains rises 5.8%.
- Britain Bans Installation of New Huawei 5G Equipment from September 2021 in Major U-Turn — The British government said on Monday that its telecoms operators will be banned from installing new 5G equipment made by Huawei after September 2021, a move that came four months after the decision to completely remove the Chinese company’s gear from its 5G network by 2027, Reuters reported.
- Chinese Investors Bullish About Space as Satellite Startup Pockets $375 Million in Pre-IPO Funding Round — Chang Guang Satellite Technology, a Jilin-based startup that develops commercial remote sensing satellites, has raised 2.46 billion yuan ($375 million) in its pre-IPO funding round, becoming the latest Chinese satellite firm to gain financial support from investors bullish on China’s space-related prospects.
- Fashion E-Retailer Mogu Gets Livestreaming Lift in Otherwise Dismal Quarter — Despite suffering a dramatic revenue drop in the third quarter, Chinese fashion e-commerce firm Mogu posted solid growth in sales linked to its livestreaming business.
- Chinese-Focused Food Delivery App HungryPanda Raises $70m — HungryPanda, a food delivery app that focuses on Chinese customers living abroad, has raised $70 million in its Series C funding round led by Swiss investment firm Kinnevik AB, according to an announcement.
South China Morning Post
- China’s trade pivot from US could be a boon for South Korea, Japan and Taiwan — China’s effort to cut its reliance on US imports – especially for advanced technologies – by shifting demand to other Asia nations is likely to make big winners out of South Korea, Japan and Taiwan, analysts said.
- Australia and US to take on China and Russia in game-changing hypersonic missiles — Australia will jointly develop hypersonic cruise missiles with the United States in a bid to counter joint development of the highly destructive, game-changing technology by China and Russia.
- Chinese cryptocurrency scam ringleaders jailed in US$2.25 billion Ponzi scheme involving PlusToken platform — A Chinese court has sentenced ringleaders of a multinational cryptocurrency-based pyramid scheme to up to 11 years in prison after they defrauded investors out of 14.8 billion yuan (US$2.25 billion) worth of cryptocurrencies, according to court documents from the eastern province of Jiangsu.
- China doubles down on criticising Australia over Afghanistan — China has doubled down on its criticism of Australia after refusing to remove a tweet featuring a digital illustration of an Australian soldier appearing to murder a child in Afghanistan and accusing the Australian government of using the row to divert attention from alleged “atrocities” by Australian soldiers.
- How China is pushing forward its plan for a powerful, modern military — As regional tensions rise, a more assertive China has set a goal of turning its vast People’s Liberation Army into a modern fighting force by 2027, and a world-class military by 2050 – but how far has it come, and where is it headed?
- Is China ripe for a subprime crisis? Regulator sees bank property loans as ‘biggest grey rhino risk’ for financial system — Chinese banks’ excessive exposure to property is now the “biggest grey rhino risk” facing the stability of the financial system, a top financial regulator has warned.
- China manufacturing sentiment hits highest level in 10 years in November — China’s manufacturing activity extended its strong growth in November, according to data released on Tuesday.
- China pivots to state-corporate partnerships in drive for technology self-reliance — As Beijing doubles down in its contest with the US for technological leadership, it is looking to Chinese industrial champions to drive the country’s innovation programme – and even basic research in science and technology – once dominated by the state sector.
- Slump in Hong Kong retail sales eases but outlook remains downbeat as Covid-19 fourth wave takes hold — Hong Kong’s retail sales declined by a lesser extent in October, slumping 8.8 per cent year on year, but the consumption outlook remained downbeat as the city battled another surge of coronavirus infections.
- Hong Kong, Singapore put brakes on travel bubble until 2021, will reassess Covid-19 fourth wave situation in late December — Hong Kong and Singapore postponed the launch of quarantine-free flying until 2021 on Tuesday, dealing a heavy blow to hard-hit industries banking on travel bubbles to salvage a recovery from the coronavirus pandemic.
- Workforce in turmoil at Hong Kong’s largest pay TV operator i-Cable as lay-offs, resignations hammer news department — Hong Kong’s biggest pay TV operator, i-Cable, has laid off or reassigned some 100 staff in a bid to survive the economic downturn sparked by the Covid-19 pandemic, with the losses particularly heavy in the broadcaster’s editorial department.
- Hong Kong restaurateurs predict a bitter winter for city’s eateries, as new Covid-19 rules could cost sector estimated HK$6 billion — Hong Kong’s restaurant sector will lose an estimated HK$6 billion (US$774 million) in revenue next month and face a very chilly winter without additional wage subsidies, an industry head warned on Monday, as Covid-19 restrictions on diners per table were set to be tightened to two people.
- Hong Kong’s MPF needs an overhaul to keep up with living costs even as it tops HK$1 trillion in value — Hong Kong’s Mandatory Provident Fund (MPF) has a long way to go in meeting the retirement plans of its 4.5 million members, even after it surpassed HK$1 trillion (US$129 billion) in July as one of the world’s 20 largest schemes.
- Two years on, Huawei still fighting for survival as CFO extradition case ongoing — On December 1, 2018 Meng Wanzhou, Huawei Technologies’ CFO and daughter to founder Ren Zhengfei, was arrested at Vancouver airport as she changed planes en route to Mexico. Infuriating Beijing, which retaliated by arresting two Canadian nationals, the arrest also marked a turning point in Huawei’s fortunes.
- Bilibili, Weibo remove Ma Baoguo videos amid state media criticism of tai chi ‘master’ — Streaming-media platform Bilibili and microblogging site Weibo have removed user-generated videos of a 69-year-old tai chi master, Ma Baoguo, who state media accused of “poisoning” China’s values.
Bloomberg
- China’s Wolf Warriors Diplomats Slam Australia, Win Fans at Home — Australian Prime Minister Scott Morrison demanded Beijing apologize for a provocative tweet depicting one of his nation’s troops holding a bloody knife to an Afghan child’s throat. Instead, the Chinese Foreign Ministry’s top spokeswoman shot back, asking whether Morrison lacks “a sense of right and wrong.”
- Xiaomi Seeks Up to $4 Billion in Shares, Convertible Bonds — China’s No. 2 smartphone maker Xiaomi Corp. is seeking to raise as much as $4 billion from a combined share placement and sale of convertible bonds, adding to a war chest aimed at expanding its market share from competitor Huawei Technologies Co.
- Climate Ranking for China’s Belt and Road May Limit Coal Plants — Coal-fired power plants and metal smelters would require more stringent supervision and face tougher financing under a plan to improve evaluation of the environmental and climate impact of projects in China’s Belt and Road Initiative.
- Hong Kong Retail Slump Eases as New Virus Wave Threat Looms — Hong Kong’s subdued retail environment showed signs of improvement in October, though a new wave of virus cases threatens that progress as the city tightened social-distancing rules again.
- China State Grid Sees New Coal Plant Restrictions After 2026 — New coal power plants in China will face severe restrictions after 2026 as the country pivots to a carbon-neutral future, according to a researcher with the nation’s main grid operator.
- Hong Kong Virus Surge Scuttles Travel Bubble, Sends Bankers Home — A resurgence of the virus is scuppering hopes of a return to normalcy in Hong Kong.
- Sino Biopharm Shares Sink 12% in Hong Kong After Earnings Shock — Chinese drugmaker Sino Biopharmaceutical Ltd. plunged nearly 12% in Hong Kong after its third-quarter earnings missed expectations, partly due to the impact of a centralized drug procurement program on prices.
- Cash Squeeze at Small China Banks Is Warning Sign for Market — Some of China’s smaller banks are finding it increasingly difficult to borrow from each other, another sign that rising corporate defaults are starting to infect the financial system.
- Beer Craze May Boost Australian Barley Shipments to India — Australian barley growers could soon be raising a glass to India’s swelling cohort of beer drinkers, who are being eyed as a potential market for some of the country’s excess stocks of the grain, after its biggest buyer China all but halted imports this year.
- The Year Australia’s Central Bank Was Dragged into QE Fold — As the coronavirus ricocheted from China through South Korea, Iran and Italy in late February, Reserve Bank of Australia Chief Philip Lowe knew his economy wouldn’t be spared.
- China’s Regulators Vow ‘Special’ Oversight of Fintech Giants — China plans to impose “special and innovative regulatory measures” on financial technology behemoths such as Jack Ma’s Ant Group Co. to eliminate monopolistic practices and strengthen risk controls.
- China Lithium Giant Gets Breathing Room as Loan Extended for Now — Tianqi Lithium Corp. got some relief from lenders, who granted a last-minute extension on a major loan payment that was due Sunday.
- China’s Aluminum Bonanza May Have More to Offer Investors — China’s aluminum sector has been oversupplied and unloved by investors for years. The biggest-ever rally in the nation’s top smelter is flipping that assumption on its head.
- China Beats U.S. as Top Market for Asia-Pacific Firms, HSBC Says — China has overtaken the U.S. as the top foreign market for companies across Asia-Pacific, according to a new survey that underscored several ways the pandemic is accelerating tectonic shifts in the global economy.
- Biden and Blinken Want Alliances to Confront China. But Friends Have Changed — There are limits to forging alliances because, as Australia is learning, Beijing is both more integrated into the global economy and aggressive about throwing its weight around.
Reuters
- Column: Don’t mention iron ore – China and Australia dance around the big issue — Amid the latest ugly flare-up of harsh words and lowbrow politics between China and Australia, the main trade between the two countries of iron ore sails on seemingly unaffected.
- India plans dam on Brahmaputra to offset Chinese construction upstream — India is considering a plan to build a 10 gigawatts (GW) hydropower project in a remote eastern state, an Indian official said on Tuesday, following reports that China could construct dams on a section of the Brahmaputra river.
- Mirae Asset wins U.S. lawsuit against China’s Anbang on scrapped $5.8 billion hotel deal — South Korean investment bank Mirae Asset Daewoo Co Ltd and affiliates won a U.S. court case against Anbang Insurance Group, a court document showed, after Mirae scrapped a $5.8 billion deal after the start of the pandemic to buy 15 U.S. hotels from Anbang.
- U.S. imposes sanctions on Chinese firm accused of undermining democracy in Venezuela — The United States imposed sanctions on Monday on Chinese firm China National Electronics Import & Export Corporation (CEIEC), accusing it of supporting Venezuelan President Nicolas Maduro’s efforts to undermine democracy.
- China urges U.S. to correct mistake on Venezuela-related sanctions — China urged the United States on Tuesday to correct its mistake and lift all illegal sanctions, after Washington imposed Venezuela-related sanctions targeting a Chinese firm.
- China says ready to talk to NATO, urges correct outlook — China hopes NATO will adopt the correct outlook toward the country and stands ready to engage in dialogue with the group, foreign ministry spokeswoman Hua Chunying said during a regular briefing on Tuesday.
- Chinese embassy says Australia ‘misread’ offending social media post — China’s embassy in Australia said politicians there had “misread” a tweet showing a digitally-altered image of an Australian soldier holding a bloodied knife to the throat of an Afghan child, and were trying to stoke nationalism.
- South Koreans, Chinese clash on social media over Chinese-style Kimchi winning international certificate — China’s efforts to win an international certification for Pao Cai, a pickled vegetable dish from Sichuan, is turning into a social media showdown between Chinese and South Korean netizens over the origin of Kimchi, a staple Korean cuisine made of cabbage.
- Exclusive: LG Chem to double China battery capacity to meet Tesla demand – sources — South Korea’s LG Chem Ltd plans to more than double production capacity of battery cells it makes in China for Tesla Inc electric vehicles (EV) next year, sources said, to keep up with its U.S. client’s growth in the biggest car market.
- New Zealand raises concerns with China over Australian soldier image — New Zealand’s prime minister, Jacinda Ardern, said on Tuesday that her government has raised concerns with China about its using an image of an Australian soldier holding a knife to the throat of an Afghan child.
- China’s November factory activity growth hits decade high: Caixin PMI — Activity in China’s factory sector accelerated at the fastest pace in a decade in November, a business survey showed on Tuesday, as the world’s second-largest economy recovers to pre-pandemic levels.
- Red-hot white-goods demand stokes China manufacturing, metals use — Booming sales of fridges, toasters and microwaves to households across the locked-down world have helped propel China’s mammoth manufacturing engine back to life, super-charging demand for key metals like steel, copper and aluminium.
Xinhua
- China’s agricultural fair sees trade volume reach 41.8 bln yuan — The 18th China International Agricultural Trade Fair concluded Monday in southwest China’s Chongqing Municipality, with the trade volume amounting to 41.8 billion yuan (about 6.35 billion U.S. dollars).
- Italy’s fashion companies building on “Made in Italy” brand in China — Italy’s fashion industry is working hard to ensure it remains in fashion in China, the world’s fastest-growing major market for high-end clothing and accessories.
- SCO plans to enhance financial cooperation, continue consultations on establishing SCO Development Bank — The Shanghai Cooperation Organization (SCO) on Monday announced plans to further enhance financial cooperation, and expressed willingness to continue consultations on the establishment of the SCO Development Bank and the SCO Development Fund (Special Account).
- Beijing sees booming cybersecurity industry — Beijing’s cybersecurity industry is booming, with its industrial scale hitting 64.52 billion yuan (about 9.8 billion U.S. dollars) last year.
- Taiwan’s leading bookstore Eslite expands e-commerce — Taiwan-based major bookstore chain Eslite launched its new e-commerce platform Eslite Online Tuesday, extending its online business from books to general merchandise.
- China’s iconic sedan brand Hongqi posts strong sales — Sales of Hongqi, a car brand under China’s leading automaker FAW Group Co., Ltd., have more than doubled in the first 11 months of the year to 178,100 units, the company said Tuesday.
- Guangdong carbon market closes higher — Carbon emissions allowances closed at 27.71 yuan (4.22 U.S. dollars) per tonne on Tuesday, 0.87 percent up from Monday, at China Emissions Exchange (Guangzhou), the largest local carbon market in China.
- Chinese shares close higher Tuesday — Chinese stocks closed higher Tuesday, with financial heavyweights leading the gain.
- China’s agricultural product wholesale prices edge up — The wholesale prices of China’s agricultural products edged up Tuesday, according to the Ministry of Agriculture and Rural Affairs.
Other Publications
- Nikkei Asian Review: China’s new export law takes effect, putting global businesses on edge — Uncertainty hangs over supply chains that rely on Chinese factories.
- U.S.-China Economic and Security Review Commission: 2020 REPORT TO CONGRESS of the U.S.-CHINA ECONOMIC AND SECURITY REVIEW COMMISSION — The Report includes 19 recommendations for congressional consideration. The Commissioners agreed that ten of these recommendations, which appear on page 22, are the most important for congressional action.
- PanDaily: Is Alibaba’s Music Streaming Platform Xiami Shutting Down? — On Nov.29, a post on Sina Weibo, Chinese largest microblogging platform, claimed that Alibaba’s music streaming platform Xiami Music（虾米音乐) is going to close down permanently in January 2021. The author was reportedly Universal Music Marketing Director Xiang Zheng and the post went viral in a few hours with official accounts retweeting it.
