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
- U.S. Boosts China Spying Budget to Meet Growing Economic, National-Security Threat — Director of national intelligence said shift involves ‘money and manpower,’ and suggested some analysts focused on counterterrorism would be refocused on Beijing.
- U.S. in Talks With Huawei Finance Chief Meng Wanzhou About Resolving Criminal Charges — Justice Department is discussing an arrangement that would allow her to return to China in exchange for admitting wrongdoing.
- China Is National Security Threat No. 1 — Resisting Beijing’s attempt to reshape and dominate the world is the challenge of our generation.
- China’s Digital Response to Covid-19 Hits a Glitch—Seniors Don’t Understand It — Pandemic deepens digital divide in largely cashless, smartphone-driven society, prompting Beijing to order public services to make exceptions for elderly.
The Financial Times
- Norway’s central bank deputy governor Jon Nicolaisen resigns over China ties — Official with responsibility for sovereign wealth fund denied security clearance renewal.
- Rash of bond defaults tests China’s fixed income fund market — New risks exposed as government retreats from implicit guarantee for debts of risky state-owned companies.
- China aims to shake US grip on chip design tools — Synopsys and Cadence veterans join local start-ups in Beijing tech push.
Caixin
- Update: China Defines Banks That Are ‘Too Big to Fail’ — Measures are latest step in policymakers’ quest to curb risks in country’s financial system.
- Deutsche Bank to Get More ‘Aggressive’ in China as Lender Hunts for Elusive Profits — Bank will build up its local wealth and asset management, bond teams in the country, China chief tells Caixin.
- China Construction Bank Helps Complete Tests on New Blockchain Bond in Malaysia — The project is jointly led by Malaysia’s national stock exchange and a Singaporean fintech firm.
- Alibaba Takes Bite of Mango Excellent Media With $947 Million Stake Purchase — Deal could bring together two of the nation’s leading online video providers, Alibaba’s Youku and Mango’s own Mango TV.
- Huawei, U.S. in Talks to Free Detained CFO Meng If She Admits to Guilt: Report — Wall Street Journal, citing unnamed sources, says talks have recently occurred that could allow executive to return from Canada to China.
- JD Logistics Takes Pitches from Banks for Planned Hong Kong IPO in 2021 — JD Logistics, a subsidiary of Chinese e-commerce giant JD.com, has asked banks to pitch for its Hong Kong IPO of up to $3 billion as part of plans to launch a deal in the first half of 2021, Reuters reported on Thursday, citing sources with direct knowledge of the matter.
- New Rules Derail Mega Livestreaming E-Commerce Deal — New rules that China’s media regulator unveiled last month to tighten its oversight of the livestreaming industry appear to have derailed a share acquisition deal involving a livestreaming e-commerce company that has close connection with debt-ridden tech entrepreneur Luo Yonghao.
- ‘Look, No Hands!’ – AutoX Rolls Out China’s First Self-Driving Fleet Without Safety Drivers — AutoX has rolled out a fleet of completely driverless robotaxis in the downtown area of Shenzhen, making it the first player in China to test autonomous vehicles without safety drivers or remote operators.
South China Morning Post
- Is Indonesia becoming too reliant on Huawei? — China’s telecommunication equipment giant Huawei has solidified its standing in Indonesia, raising concerns that Southeast Asia’s largest economy is becoming increasingly reliant on a telecoms provider that is facing greater scrutiny from the West.
- China’s closer ties with Hong Kong’s bond market to create ‘enormous opportunities’ for city — Discussions have begun to allow Chinese investors to trade bonds in Hong Kong, a move that will “generate enormous opportunities” for the city’s financial services industry and has the potential to strengthen its status as an international financial centre.
- China’s president turns on charm with global business leaders, vowing ‘opportunities’ as nation opens its doors wider — Chinese President Xi Jinping has undertaken a new charm offensive aimed at global business leaders, in a push to instil confidence and cultivate a sense of greater certainty amid a fast-changing international environment.
- China-US relations: Beijing could ‘reopen consulate, let journalists back in’ — China could consider reopening a consulate and allowing American journalists back to the country if the United States is ready, according to China’s ambassador to Washington, Cui Tiankai.
- China ‘accepts’ Joe Biden will not rush to remove Donald Trump’s US trade war tariffs, analysts say — US President-elect Joe Biden’s decision to keep the Trump administration’s tariffs on Chinese goods for the time being is “acceptable” for China, analysts said.
- Coronavirus: China to have 600 million doses of vaccines ‘ready for use this year’ — China will have 600 million doses of Covid-19 vaccines ready for use this year and will make “a major announcement” soon, a scientist in charge of vaccine development in the country said on Friday.
- China’s Xi Jinping declares victory on poverty alleviation, but warns of ‘unbalanced’ development — Xi Jinping has declared victory in China’s fight against poverty, claiming nearly 100 million people have been lifted out of extreme material deprivation after eight years of struggle.
- China’s grass-roots party members must fall in line to maintain economic stability, President Xi’s top aide says — A top aide to President Xi Jinping says the Chinese Communist Party’s centralised command of the nation’s economic and social development must be improved in an era of turbulence and uncertainty.
- China-Australia relations: import ban sees Australian lobster disappear from Beijing markets, restaurants — In Beijing’s bustling Sanyuanli market, a few Australian rock lobsters swim in tanks as vendors make a last-ditch effort to sell the crustaceans that are fast disappearing from Chinese menus.
- Hong Kong lawmakers kick-start plan for metropolis on artificial islands by approving Lantau Tomorrow Vision feasibility studies funding — Hong Kong’s legislature has approved a HK$550 million (US$71 million) funding request to conduct feasibility studies for building a huge settlement on artificial islands that would be the city’s costliest ever infrastructure project.
- Hong Kong Covid-19 app may get more user-friendly features, official says, allaying concerns over residents’ privacy — More user-friendly features could be added to Hong Kong’s Covid-19 risk exposure app from next week, a senior information technology official has said, admitting that the initial design of a function for residents to record their journey was “overdone”.
- Unions in the dark: suddenness of Cathay’s staff cuts sparks calls for collective bargaining law to protect Hong Kong workers — Veteran flight attendant Julian Yau Chi-hung did not get the chance to say goodbye to his Cathay Pacific colleagues in person when he lost his job in October after almost 23 years with the airline.
- More tech companies likely to list in Hong Kong in next decade, Alibaba’s Joe Tsai says — More technology companies from across the globe – not just those based in China – are likely to list on Hong Kong’s stock exchange in the next five to 10 years, particularly emerging tech leaders in Southeast Asia, according to Alibaba’s executive vice-chairman Joe Tsai.
Bloomberg
- Pompeo Decries Hong Kong ‘Persecution’ as Activists Jailed — U.S. Secretary of State Michael Pompeo accused Hong Kong of using the courts to engage in “political persecution” after prominent activists were detained and a former opposition lawmaker fled to Europe.
- Vaccine Nationalism Mars Fight Against Covid-19 — As the pandemic death toll has climbed inexorably, under-fire politicians have gone from initial denial to the blame game — President Donald Trump’s infamous “China virus” — and now chest thumping.
- Strongest Taiwan Dollar Since ‘97 Shows Central Bank Easing Grip — The Taiwan dollar closed at its highest level since 1997, and more gains are likely on the way as the central bank eases its grip on the currency.
- Virus Fears and Crowded Ports to Slash China’s Meat Imports — China’s vigorous testing of all inbound frozen food shipments for virus risk, as well as the recovery in domestic hog numbers, could cause meat imports to plunge as much as 30% next year.
- Next Digital Soars in Hong Kong After Jimmy Lai’s Arrest — Shares of the media company founded by Hong Kong government critic Jimmy Lai surged on Friday, a day after the stock was halted following his detention on charges related to an earlier arrest under the China-drafted national security law.
- U.K. Grants Hongkongers 5 Passports a Minute as Exodus Looms — The U.K. is granting the most special travel documents to Hong Kong residents since the 1997 handover, bolstering predictions of a mass exodus as China tightens its grip over the former British colony.
- Wall Street Keeps Pushing Into China as Washington Balks — A year into China’s big bang opening of its financial markets, Wall Street has ever more to lose from a growing consensus in Washington over reining in Beijing.
- Xi Declares End to Extreme Poverty in China, Meeting Party Goal — Chinese President Xi Jinping declared victory in an eight-year drive to eradicate extreme poverty in the world’s most populous nation, a key goal of the ruling Communist Party.
- Welcome to Wolf-Warrior Diplomacy — For those who hadn’t noticed the increasingly assertive style with which China has pressed its interests around the world, this week offered a blunt introduction to wolf-warrior diplomacy.
- China Budget Store King Takes on Toys ‘R’ Us With New Chain — Miniso Group Holding Ltd., the newly New York-listed Chinese budget retailer, is making its first foray into the $86 billion global toy market as it tries to take on heavyweights like Toys “R” Us Inc. on its home turf and beyond.
- China State Firms Once Deemed ‘Safe’ Now Rocked by Defaults — Rising defaults by China’s state firms are showing the need for bond investors to be much savvier about those borrowers — no easy feat in a country where government decisions and business operations lack transparency.
- Cnooc Among Four China Firms Cited by U.S. for Military Ties — The Pentagon added four more Chinese companies to a list of firms it says are owned or controlled by China’s military, exposing them to increased scrutiny and potential sanctions by the U.S.
- Singapore’s Richest Family Clashes Over China Investments at a Critical Time — The unity of the clan behind one of the most influential conglomerates broke when a family member quit CDL’s board
- Chinese Scientists Claim Breakthrough in Quantum Computing Race — Chinese scientists claim to have built a quantum computer that is able to perform certain computations nearly 100 trillion times faster than the world’s most advanced supercomputer, representing the first milestone in the country’s efforts to develop the technology.
- Trump Delisting Chinese Stocks Will Energize Hong Kong Markets — Delisting Chinese companies won’t be a bad thing. It’s time for them to come home.
- Bloomberg Australia: The Perils of Standing Up to China — Welcome to our weekly newsletter — a fresh, global perspective on the stories that matter for Australian business and politics. This week: How wolf-warrior diplomacy is backfiring, Australia’s economic recovery and new hope for our barley exporters.
- Thai Developer Says Sales to Rebound With Pent-Up Chinese Demand — WHA Corp., Thailand’s largest industrial estate developer, expects sales to rebound next year with a likely easing of travel restrictions and strong demand for land from companies seeking to relocate factories from China.
- Viya, China’s Livestream Shopping Queen: Bloomberg 50 2020 — One of the country’s most popular media personalities, she hit record numbers this year with her shopping broadcasts, averaging 20 million views in April—double the figure in late 2019—as consumers opted to transact from the safety of their sofas.
- Wang Xing’s Meituan Had 15 Million Food Deliveries a Day: Bloomberg 50 2020 — Meituan, which became a lifeline when restrictions were imposed across China, has seen its share price surge more than 180% since the beginning of the year, swelling Wang’s fortune to over $20 billion.
- Zeng Yuqun, Friend to Tesla’s Elon Musk in China: Bloomberg 50 2020 — A February deal to supply batteries to Tesla helped cut the price of its Model 3 to about $37,000 in China, cheaper than anywhere else.
- Facebook’s Clegg Says Biden, Allies Must Unite Against China — Nick Clegg, Facebook Inc.’s vice president of global affairs, called on U.S. President-elect Joe Biden to unite the internet’s “regulatory planets” of India and the European Union against the influence of China.
- China Punctuates More Market Freedoms With Tough Crackdowns — China’s loosening of control over capital markets is being accompanied by tougher oversight of companies that previously faced little regulation.
- Chinese Firms Scour Latin America for Bargain Deals After Slump — Chinese firms and Canadian pension funds are on the prowl in Latin America, looking to scoop up assets at rock-bottom prices and make further inroads to the region’s biggest industries following the worst economic downturn in more than a century.
- China Inc. Extends Cobalt Grip With Bigger Glencore Deal — Glencore Plc, the world’s biggest supplier of cobalt, has extended its supply agreement with battery maker GEM Co., allowing the Chinese company to secure supply of the crucial metal until the end of the decade.
- Alaska Oil Exports Soar as China Picks Up Slack From West Coast — China’s appetite for energy is saving oil producers in Alaska from a pandemic-driven collapse in demand on the U.S. West Coast, with shipments from the Last Frontier to the Asian nation on a tear.
- 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.
Reuters
- United States adds China’s SMIC and CNOOC to Defense blacklist — The Trump administration on Thursday added China’s top chipmaker, SMIC, and oil giant CNOOC to a blacklist of alleged Chinese military companies, drawing condemnation from Beijing as President-elect Joe Biden prepares to take office.
- Exclusive: China comfortable with yuan rises for now as economy recovers, sources say — Chinese policymakers are comfortable with the yuan’s rise to two-and-a-half-year highs as a rebound in the world’s second-biggest economy accelerates and the central bank gives the market greater leeway in setting the currency’s value, sources said.
- China’s Clover says its COVID-19 vaccines trigger ‘strong immune responses’ in early trial — Two coronavirus vaccine candidates developed by China’s Clover Biopharmaceuticals triggered strong immune responses in an early-stage human trial and appeared to be safe, the company said on Friday.
- China says U.S. should stop abusing the concept of national security — China said on Friday it firmly opposes the United States’ wanton oppression of its companies and asked America to stop abusing the concept of national security, after the Trump administration added China’s SMIC and CNOOC to a defense blacklist.
- Amid tensions with China, Australian wheat exporters pull back from key market — China’s wheat buyers are scrambling to source low-gluten wheat for the country’s booming fancy bakery market, traders said, as exporters in key supplier Australia shy away from striking sales deals amid escalating trade tensions.
- Taiwan says trade deal would show U.S. support in face of China pressure — A bilateral trade deal between Taiwan and the United States would reinforce U.S. support for the democratic island in the face of “unrelenting intimidation” from China, Taiwan President Tsai Ing-wen said on Friday.
- China’s exports, imports seen expanding at faster pace in November: Reuters poll — China’s exports and imports are expected to rise at a faster pace in November, helped by strong demand and coronavirus-related disruptions at factories in other countries, a Reuters poll showed on Friday.
- China to start ambitious rail line to link city clusters in five years — China will start construction of 10,000 kilometres (6,213.7 miles) of intercity and urban railway over the next five years in Yangtze River Delta, Greater Bay and Beijing-Tianjin-Hebei areas, the state planner said on Friday.
- Breakingviews – China’s Xi has precious opportunity to clean up — China is seizing an opportunity to clean house. From property to cars to chips, officials are pushing new rules and regulations to defuse risks and reallocate capital. It echoes the forceful effort to deleverage the economy in 2017 and, this time, President Xi Jinping may be willing to endure more disruption.
- 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.
- 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.
Xinhua
- Chinese shares close higher Friday — Chinese stocks closed higher on Friday, with the benchmark Shanghai Composite Index up 0.07 percent to 3,444.58 points.
- China’s private business hub sees surging IP filings at customs — Chinese private business hub Zhejiang Province saw 2,547 new intellectual property (IP) records set up in the first 11 months, up nearly 30 percent from the same period last year, local authorities said Friday.
- Factbox: Latest progress of China-developed ARJ21 regional jetliner — China has seen remarkable progress of the independently-developed ARJ21 regional jetliner with continuous deliveries and expanded commercial operations.
- China’s agricultural product wholesale prices edge up — The wholesale prices of China’s agricultural products edged up Friday, according to the Ministry of Agriculture and Rural Affairs.
- Guangdong carbon market closes higher — Carbon emissions allowances closed at 28.19 yuan (4.31 U.S. dollars) per tonne on Friday, up 1.22 percent from Thursday, at China Emissions Exchange (Guangzhou), the largest local carbon market in China.
Other Publications
- Nikkei Asian Review: China set to roll out its COVID-19 vaccination — Beijing prepares to approve 600m inactivated doses by end-December.
- Nikkei Asian Review: China helps fuel Australian economic recovery despite trade feud — Hunger for iron ore offsets Beijing’s clampdown on other commodities for now.
- Nikkei Asian Review: China’s billionaires set to dominate the world’s art market — Asian buyers becoming more sophisticated as fortunes pile up.
- Foreign Policy: How China Is Buying Up the West’s High-Tech Sector — Chinese acquisitions of Western firms are only part of the problem. Secret venture capital is handing power to Beijing under the radar.
- Foreign Affairs: The Party That Failed — An Insider Breaks With Beijing, by Cai Xia.
- Defense News: Compromise defense bill confronts a rising China — Eyeing China’s rise as a global military and economic power, lawmakers unveiled a compromise defense policy bill Thursday that targets China on multiple fronts, with $6.9 billion prescribed for a new Pacific Deterrence Initiative over two years.
