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
- Ahead of U.S. Audit Bill, Chinese Companies Are Finding Their Way Home — Legislation awaiting president’s signature would ban trading in shares of U.S.-listed foreign companies that don’t allow inspection of papers.
- Delisting Chinese Stocks in the U.S. Won’t Sever Their Access to Global Capital — U.S. action against Chinese companies on audit grounds likely won’t do the damage that it would have a decade ago.
- Congress Sets Stage for Exiling Chinese Stocks From U.S. Over Audit Dispute — The U.S. has long battled Beijing’s resistance to overseas inspections of Chinese companies’ audits.
- China’s Covid-19 Comeback Lifts Iron Ore — Iron-ore prices have risen to a seven-year high as China’s economic recovery drives demand for steel.
The Financial Times
- China property/Evergrande: towers of debt — Shares in the heavily indebted titan are down more than 40% from a July peak.
- Chinese app WeChat censors Australian PM Scott Morrison’s post — Tencent-owned company says premier’s conciliatory message ‘contrary to objective facts’.
- China approves first sale of Korean video game in four years — Multibillion dollar gaming industry has been locked out of Chinese market since 2017 missile spat.
- Hong Kong media mogul Jimmy Lai taken into custody — Pro-democracy tycoon to be held until at least April after being denied bail over fraud charge.
- Europe must take sides with the US over China — Beijing’s great power politics are a bigger threat to the EU than to the US.
- Daimler chief hails ‘V-shaped’ recovery in China car sales — Sharp rebound a rare bright spot for global auto industry hit hard by coronavirus.
- US stimulus progress, China invests in US tech, vaccine moves — Top Democrats have expressed support for a bipartisan $908bn stimulus plan from US senators.
- Anxious Taiwan launches US charm offensive to win Biden’s backing — Taipei worries incoming American administration will not maintain Trump’s staunch support.
The New York Times
- U.S. Tightens Visa Rules for Chinese Communist Party Members — New guidelines mean that China’s 92 million party members will be limited to one-month, single-entry U.S. permits — if the State Department can figure out who they are.
- China Poised to Be First to Distribute Virus Vaccine in Latin America, U.S. Official Says — China, which has been expanding its presence in the region, is likely to beat the United States in its own backyard with vaccine diplomacy as Washington looks “at taking care of the U.S. first.”
- Chinese Companies to Face More Scrutiny as Bill Clears House — If they didn’t disclose more information, they could risk removal from U.S. stock exchanges under the legislation, which President Trump is expected to sign.
Caixin
- Authorities Discuss Plan for Mainland Investors to Trade Bonds in Hong Kong — ‘Southbound’ channel in the Bond Connect program could help to expand opportunities for mainland investors.
- Prices for Everyday Goods in China Post First Drop In Five Years — First deflationary period in five years caused by online buying shift, Covid woes, says report by Bain & Co.
- U.S. Component Seller Denies China Military Ties, as Washington Prepares New Blacklist — TTI Electronics, backed by Warren Buffett’s Berkshire Hathaway, issues statement as U.S. reportedly prepares to release list of Chinese and Russian firms deemed ‘military end users’.
- Chinese Businesses See a 2-Year Slog for Full Profit Rebound — Global survey of 10,000 companies by HSBC finds that China’s business recovery from the pandemic will lead the world.
- Baker Bros. Advisors Sells ADSs in BeiGene Just Months After Buying Shares — Baker Bros. Advisors, a major shareholder in Nasdaq-listed Chinese biotech company BeiGene, is offloading about 1.5 million American depositary shares (ADSs) in BeiGene priced at $225 each.
- Tesla Rival Li Auto Plans New Share Sale to Bankroll R&D — Chinese electric vehicle startup Li Auto has announced plans to issue new shares on the back of its business expansion.
- Alibaba Logistics Arm Chills with Ethiopian Airlines to Transport Covid-19 Vaccines — Cainiao, the logistics arm of Alibaba, is launching what it says is China’s first regular cross-border cold chain air route to transport temperature-sensitive medicines including Covid-19 vaccines, the company said on Thursday.
- U.S. Blacklist of Chinese Tech Firms Continues to Grow — Donald Trump’s tenure as U.S. president may be winding down, but he’s making sure to give plenty of parting “gifts” to China in the form of sanctions for more of its high-tech firms.
South China Morning Post
- Climate change: EU proposes green tech alliance with Biden team in US, signalling less reliance on China — The European Union has proposed a “new green tech alliance” with Joe Biden’s incoming administration, amid mounting calls for Brussels to stop treating Beijing simply as a partner on climate change issues and also regard it as a competitor.
- China economy: has the service sector improved enough to start scaling back stimulus? — Better-than-expected Chinese service sector sentiment data for November has strengthened market confidence in the outlook for the country’s economic recovery and, in turn, fuelled discussions over how soon policymakers should start to scale back their stimulus policies, analysts said.
- Australia PM seeks ‘happy coexistence’ with China after war crimes tweet row — A diplomatic war of words between Australia and China over a graphic tweet seemed to finally cool on Thursday as Australian Prime Minister Scott Morrison struck a much more conciliatory tone.
- Coronavirus: Beijing tells Chinese vaccine makers to get ready for mass production — Two Chinese vaccine makers have been told to get ready for mass production and to finish inoculating high-risk groups against Covid-19 this year – even though their experimental drugs are still in clinical trials and efficacy data has not yet been released.
- US debt to China: how big is it and why is it important? — What is the US government debt that China holds? The amount of US debt held by China refers to securities such as bills, notes and bonds issued by the United States Department of the Treasury on behalf of the federal government to fund its annual budget deficit and roll over existing debt.
- China’s FAST is world’s only giant, single-dish radio telescope after Arecibo collapse — After the collapse of the world’s second-largest radio telescope in Puerto Rico on Tuesday, China’s massive 500 metre Aperture Spherical Radio Telescope (FAST) is now the only giant, single-dish telescope in the world – but it will not open to global scientists until next year.
- China’s central bank governor tells local governments, lenders: don’t count on a bail out — China’s central bank chief has said his institution will not bankroll government spending or bail out troubled companies backed by local governments, trumpeting independence when political pressures are mounting on the People’s Bank of China (PBOC) to resolve fiscal and financial risk.
- China-Australia relations: provisional duties on wine imports could be extended for up to nine months — China’s provisional anti-dumping duties imposed on Australian wine imports last month should last no more than four months but could be extended to nine months, the Chinese Ministry of Commerce said on Thursday.
- China-Australia relations: Canberra unwilling to ‘give up ground’ as value of iron ore exports rise — The value of Australian iron ore exports to China rose again in October, but analysts expect overall trade between the two countries to wane over the coming months amid a worsening conflict.
- China’s services sector sentiment surged in November, jumps to second-highest level since April 2010 — Activity in China’s services sector surged in November as the economy continued its strong recovery from the coronavirus outbreak earlier this year, a private survey showed on Thursday.
- China’s ageing population: how the gravity of greying will affect nation’s plans to boost economy — China’s elderly population is on pace to surpass the total population of the United States in 15 years as Chinese baby boomers are set to retire, threatening President Xi Jinping’s pursuit of common prosperity and his goal to catch up with other nations in terms of economic well-being.
- Hong Kong seeks bigger stake in Zhuhai airport to ensure it has say in its future development, officials say — Hong Kong is seeking a bigger stake in neighbouring Zhuhai airport to ensure it has a say in its future development, according to the Airport Authority (AAHK), which hopes to capture the region’s air passengers and cargo potential in the long run.
- Hong Kong’s largest pay TV operator i-Cable apologises over poor handling of lay-offs — Hong Kong’s largest pay television operator has admitted it poorly handled sacking of editorial staff and vowed no further lay-offs or pay cuts would be made for the next two years.
- Asia tech conference RISE ditches Hong Kong for Malaysia — A major Asia-focused technology conference announced on Thursday that it is ditching Hong Kong in favour of Malaysia, in a fresh blow to the Chinese financial hub’s push to attract tech talent.
- Chinese cities target facial recognition to curb abuse of personal data — Several Chinese cities have moved to tighten regulations on the use of facial recognition personal data in line with stricter laws being introduced by the central government to limit the abuse of personal data collection.
Bloomberg
- EU Seeks to Punish Online Lies in Disinformation Crackdown — The European Union is weighing up how to sanction the perpetrators of online disinformation amid suspicions of Chinese and Russian involvement in lies spewed out on internet platforms about Covid-19.As part of its Democracy Action Plan published Thursday, the European Commission said it would explore how to “impose costs on the perpetrators” of harmful disinformation campaigns in the EU. Such campaigns involve the spreading of falsehoods but also other manipulative tactics such as fake profiles
- Trump Keeps Hammering China Just Weeks Before Biden Takes Over — President Donald Trump isn’t letting his election loss stop him from beating up on China.
- Vanguard Loses $590 Million Stock Mandate From Taiwan Funds — Vanguard Group Inc. lost a mandate to run at least $590 million in Taiwan government pension and insurance assets due to weak performance, dealing a further blow to the world’s second-largest money manager as it reshuffles its Asian operations.
- Vietnam Asks China to End Tourism Activities on Disputed Islands — Vietnam asked China to end its tourism activities on the disputed Spratly and Paracel islands and called on China to respect the Southeast Asian country’s sovereignty, Ministry of Foreign Affairs spokesperson Le Thi Thu Hang said at a Hanoi briefing.
- WeChat Deletes Australian PM’s Appeal to Chinese Community — Chinese social media platform WeChat has deleted a post by Australian Prime Minister Scott Morrison, accusing him of misleading the public, as the diplomatic spat between the two nations shows no sign of easing.
- China, EU, U.S. Aim to Rein In Alibaba (BABA), Amazon (AMZN), Google (GOOGL) — China, the EU, and the U.S. want to rein in the power of giants like Alibaba, Google, and Facebook.
- U.S. Bans Cotton Imports From Xinjiang Firm on ‘Slave Labor’ — The Trump administration banned cotton imports from a military-linked Chinese firm it accuses of relying on “slave labor,” as the U.S. seeks to ramp up economic pressure on Beijing over its treatment of Muslim ethnic minority groups.
- House Backs Curbs on China Stock Listings, Sends Bill to Trump — The U.S. House of Representatives approved legislation that could ultimately lead to Chinese companies — including behemoths like Alibaba Group Holding Ltd. and Baidu Inc. — getting kicked off American exchanges if regulators aren’t allowed to review their financial audits.
- Ex-PBOC Official Says China Shouldn’t Rush to Tighten Policy — China’s economy isn’t ready yet for monetary policy tightening and authorities should delay any action until at least the second half of 2021, a former central bank official said.
- Aussie Is Soaring Despite Australia-China Trade Dispute — Despite strained diplomatic ties, Australia’s relationship with its biggest trading partner is only set to strengthen.
- China Set to Allow Australian Coal Cargo Ashore Amid Ban — China is set to allow a shipment of Australian coal into the country, according to a person familiar with the matter, despite a ban on such imports remaining in place as tensions between Beijing and Canberra escalate.
- Korean Dollar Bonds Rally as Investors Switch Out of China — Bonds from South Korean issuers are benefiting from their safe haven status as some investors turn away from Chinese debt after a spate of defaults.
- HSBC’s Loyal Hong Kong Investors Find Redemption in 55% Rally — Fear of owning HSBC Holdings Plc shares is turning into a fear of missing out on a major rally.
Reuters
- China’s approval of South Korean game lifts hopes of better ties — China has granted a license to a South Korean mobile game, the presidential office in Seoul said on Thursday, raising hopes of an improvement in the two countries’ relations and pushing up shares in games and entertainment firms.
- Chinese air freight firm Apex up for sale after coronavirus boost: sources — Apex Logistics has been put up for sale by MBK Partners, which hopes to lock in a valuation of more than $1 billion after the coronavirus crisis boosted the Chinese freight forwarding company’s business, people close to the matter said.
- Special Report: Burner phones and banking apps: Meet the Chinese ‘brokers’ laundering Mexican drug money — Early next year, a Chinese businessman named Gan Xianbing will be sentenced in a Chicago courtroom for laundering just over $530,000 in Mexican cartel drug money.
- Sao Paulo state gets 1 million doses of China candidate vaccine — Brazil’s Butantan Institute biomedical center on Thursday received 1 million doses of a Chinese vaccine developed by Sinovac Biotech that is undergoing late-stage testing by the institute in Sao Paulo state.
- Factbox: Step by step – How Chinese ‘money brokers’ launder cash for Mexican drug cartels — Chinese “money brokers” have emerged as vital partners for Latin American drug cartels, becoming key cogs in their multi-billion-dollar empires and upending the way narcotics cash traditionally has been laundered, according to U.S. authorities.
- Chinese researchers quit U.S.; agents target Biden team – U.S. officials — More than 1,000 Chinese researchers have left the United States amid a U.S. crackdown on alleged technology theft, top U.S. security officials said on Wednesday, adding that Chinese agents had already been targeting the incoming Biden administration.
- Analysis: More U.S.-listed Chinese firms seen seeking backup listings as new audit law looms — The rush by U.S-listed Chinese companies to secure a secondary listing in Hong Kong or China is only set to intensify as the United States readies a new law allowing it to kick firms off its exchanges if they do not comply with U.S. auditing rules.
- Japan, China, South Korea summit postponed due to COVID-19 – media — A trilateral summit between Japan, China and South Korea has been postponed until next year as the countries prioritize their COVID-19 response, Japan’s Nikkei newspaper reported on Thursday.
- China completes lunar sample collection ahead of schedule — China’s Chang’e-5 lunar vehicle has finished collecting samples of lunar rocks and soil more than a day ahead of schedule in the first lunar sample retrieval mission since the 1970s, the country’s space agency said on Thursday.
- China’s fur farms see opportunity as countries cull mink over coronavirus fears — As millions of mink are culled in Europe amid fears they could spread the novel coronavirus, struggling Chinese suppliers are defying calls for their business to be banned and taking advantage of a surge in global prices for the prized fur.
- Chinese firms on U.S. exchanges threatened by bill headed to Trump’s desk — The U.S. House of Representatives passed a law to kick Chinese companies off U.S. stock exchanges if they do not fully comply with the country’s auditing rules, giving President Donald Trump one more tool to threaten Beijing with before leaving office.
- Breakingviews – China delisting plan sinks teeth into wrong places — U.S. legislators are sinking their teeth into the wrong parts of Chinese corporate problems. A proposal to boot foreign companies off New York and other local exchanges if they don’t comply with auditing oversight is on its way to becoming law. It’s a fair demand, but targeting Chinese Communist Party members misses the mark, as does giving a free pass to domestic market participants.
- Australia approves tough new veto powers over foreign agreements amid China row — Australia’s parliament on Thursday passed legislation giving the federal government power to veto any agreement struck with foreign states, a move likely to anger China and intensify a bitter diplomatic spat between the two countries.
- China could fall short on smog targets as industry surges: study — Major industrial areas in northern China are at risk of falling short of their winter pollution targets after surges in the production of steel and cement, the Helsinki-based Centre for Research on Energy and Clean Air (CREA) said on Thursday.
- Growth in China’s services sector soars on stronger consumer demand: Caixin PMI — Growth in China’s services sector accelerated in November as new business rose at the fastest pace in over a decade, a private survey showed on Thursday, pointing to a further recovery in consumer demand after the country curbed its coronavirus outbreak.
- China vows to beef up ‘weather modification’ capabilities — China wants to boost its ability to modify the weather and will extend an artificial rain and snow programme to cover at least 5.5 million square kilometres of land by 2025, the country’s cabinet said late on Wednesday.
Xinhua
- Ukraine-China trade ties continue to grow amid COVID-19, says trade leader — Despite the COVID-19 pandemic, trade between Ukraine and China has seen positive dynamics this year, a Ukrainian trade leader said Wednesday.
- China-Mongolia border port sees surge in China-Europe freight trains — A total of 2,158 China-Europe freight trains passed through the border port of Erenhot in north China’s Inner Mongolia Autonomous Region in the first 11 months of this year, an increase of 53.4 percent year on year, according to the local railway operator.
- 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’s agricultural product wholesale prices edge up — The wholesale prices of China’s agricultural products edged up Thursday, according to the Ministry of Agriculture and Rural Affairs.
- Chinese shares close mixed — Chinese stocks closed mixed on Thursday, with the benchmark Shanghai Composite Index down 0.21 percent, at 3,442.14 points.
Other Publications
- Foreign Policy: Why China Just Doubled Down on Australia — Facing increasingly hostile diplomacy, Canberra is more likely to strengthen defense ties with Washington than cave to Beijing.
- Nikkei Asian Review: Canceled $10.5bn Malaysia port project plays down China role — Melaka Gateway faced scrutiny amid rising number of Belt and Road deals.
- China Daily: 5G, industrial internet changing production — Factories in China are increasingly going digital, internet-connected and smart, thanks to growing application and integration of 5G and industrial internet technologies, government officials, company executives and experts said.