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 Wants to Be the World’s Banker — The U.S. is in danger of losing its dominant leadership position in global financial services.
- U.S. Sanctions Gangster Known as ‘Broken Tooth’ for Corruption in China’s Belt and Road — Penalties levied on a Chinese convict come amid Trump administration pressure campaign against China.
- Pompeo Urges U.S. Campuses to Track China-Related Activities — In speech at Georgia Tech, he suggests institutions monitor students, disclose funding from foreign sources.
- Chinese Chip Maker in Default on $2.5 Billion of Dollar Bonds — Default by Tsinghua Unigroup unit triggers series of cross-defaults; nearly $2.5 billion of international bonds affected.
- Biden to Name Katherine Tai U.S. Trade Representative — Tai was top U.S. Trade Representative lawyer on China issues in Obama administration.
- China Responds in Latest Sanctions Tit-for-Tat With U.S. Over Hong Kong — China is revoking visa exemptions for U.S. diplomatic passport holders in Hong Kong and Macau.
- Climbing Asian Currency Reserves Will Revive Manipulation Debates — Upward pressure on the Chinese, Taiwanese and South Korean currencies leaves them at greater risk of becoming the targets of the incoming Biden administration.
- A Chinese WeWork for Apartments Is in Distress, Leaving Renters Out in the Cold — Protests by aggrieved renters have prompted local housing authorities to work with Danke Apartment to resolve its financial crisis.
The Financial Times
- China ends visa-free access for US diplomats to Hong Kong — Move marks an escalation of tit-for-tat sanctions as Beijing tells US to ‘stop meddling’.
- Chinese state investors sound alarm on cash crunch after defaults — Entities behind hundreds of billions of dollars in investment struggle to raise capita.l
The New York Times
- For Canadians Held in China, Two Years of Isolation and Uncertainty — The fates of Michael Kovrig and Michael Spavor appear tied to a Chinese technology executive detained in Canada on a U.S. warrant. Some hope the new Biden administration could hasten their release.
- U.A.E. Approves a Chinese Coronavirus Vaccine, but Doubts Swirl — The announcement by the United Arab Emirates that it approved a Chinese vaccine was met with silence from China, and raised more questions.
Caixin
- China’s November Credit Growth Shows Signs of Slowing — Total social financing expands 13.6% after jump of 13.7% in October as analysts see a peak in borrowing growth amid economy’s rebound.
- Brazil Joins Asia Infrastructure Investment Bank as Founding Member — Participation means bank can support projects in Brazil while Brazil will play a role in governance of the China-led institution.
- Chinese Fund Companies Submit Applications for Cross-Market Bond ETFs — Funds to be traded on Shanghai and Shenzhen exchanges advance a pilot program for interconnecting the country’s segmented, $13 trillion bond market.
- Chinese E-Cigarette Firm Relx Technology Picks Citigroup for Planned IPO in the U.S. — Chinese e-cigarette maker Relx Technology has picked Citigroup Inc. for its planned initial public offering in the U.S., people with knowledge of the matter said.
- China Is Nintendo’s Secret Weapon in War With PlayStation, Xbox — On the first anniversary of its official launch in China, Nintendo Co.’s Switch can already count itself the sales champion in a gaming arena that’s historically shunned consoles from powerhouses like Sony Corp. and Microsoft Corp.
South China Morning Post
- Biden’s US trade chief pick, Katherine Tai, ‘unmatched’ on China trade issues and would not be soft on Beijing, sources say — As America’s chief enforcement lawyer on China trade issues during the Obama administration, Katherine Tai was charged with corralling partners to join the United States in a trade dispute against China on restrictions involving exports of rare earth elements – a market dominated by China.
- China-EU relations: Xi tells Macron he hopes Europe can be positive about Beijing — Chinese President Xi Jinping told his French counterpart Emmanuel Macron on Wednesday that he hopes Europe will be positive in its approach to China, while the two leaders agreed to cooperate on tackling the Covid-19 pandemic and exploring space.
- China tariffs: what are they and how are they used? — Tariffs are extra customs duties imposed on imported goods, usually paid by importers. Tariffs are generally designed to make imported goods more expensive than similar products produced domestically. And because they are designed to protect the domestic industry, they are often described as “protectionist”.
- South China Sea: Beijing ‘ready to work with Asean’, defence chief says — China’s defence minister pledged to work with Southeast Asian nations to safeguard peace and stability in the South China Sea, ahead of talks with 17 regional counterparts, including from the US, on Thursday.
- Chinese e-commerce platforms to be held responsible for safety of food products, Supreme Court says — E-commerce platforms in China can be held legally responsible for food safety issues related to products purchased on their platforms, China’s top court said on Wednesday, as online food purchases continue to rise in popularity due to the coronavirus pandemic.
- China hits back at US diplomats, Congress members over sanctions — China is revoking visa exemptions for US diplomatic passport holders visiting Hong Kong and Macau, and imposing sanctions on some US Congress members, the Chinese foreign ministry said on Thursday.
- ‘State secrets’ no more: Hong Kong regulator gains access to HKEX-listed Chinese firms’ audit papers in breakthrough — Hong Kong’s accounting watchdog agency has gained access to the audit papers of Chinese companies listed on the city’s stock exchange for the first time, in a breakthrough that may serve as a template for cooperation between the financial regulators of the United States and China.
- EU ambassador to China hits out at ‘wolf warrior diplomacy’, urges Beijing to cherish ‘Deng Xiaoping legacy’ — European Union ambassador to China Nicolas Chapuis said on Thursday the bloc will seek common ground with the United States to stand up to Beijing’s bullying, intimidation and “wolf warrior diplomacy”, while recommending the government revisit “Deng Xiaoping’s legacy” to seek goodwill in Europe.
- Australian wine faces duties of up 218.5 per cent as China says subsidies caused ‘substantial damage’ to domestic industry — Australian wine now faces total temporary duties of up to 218.5 per cent after the Chinese Ministry of Commerce imposed temporary countervailing duties on Australian wine on top of provisional anti-dumping duties announced two weeks ago.
- China’s C919 commercial jet aspirations are overblown and no threat to Boeing or Airbus, Washington think tank finds — Beijing’s plan to make its own commercial aircraft to break up the duopoly of Boeing and Airbus remains a costly pipe dream, according to a Washington-based think tank.
- China chip maker Tsinghua Unigroup to default on US$450 million bond as concerns mount over debt levels on mainland — Chinese chip maker Tsinghua Unigroup said that it cannot repay the principal on a US$450 million bond due on Thursday, the latest default by the company and a blow to Beijing’s efforts to build a self-sufficient semiconductor industry.
- China’s big data policing platform ‘arbitrarily’ targets Uygurs in Xinjiang based on age, family relations, HRW says — Members of China’s Uygur minority are being targeted by a predictive policing system for a number of different legal activities and characteristics, according to a new report from the NGO Human Rights Watch (HRW).
Bloomberg
- Iron Ore Is This Year’s Hottest Commodity on China-Fueled Surge — A surge in demand in China, the world’s key growth engine, risks a shortage of iron ore that’s pushed prices past $150 a ton and crowned it this year’s best-performing major commodity.
- Steven Major, HSBC’s Famed Bond Bull, Quits London for Hong Kong — Steven Major, HSBC Holdings Plc’s global head of fixed-income research, has relocated to Hong Kong from London to boost the firm’s Asia business.
- A $2.5 Billion Default Shows China’s Lack of Mercy for Firms — China will almost certainly let a high-flying chipmaker default on $2.5 billion worth of dollar debt, the strongest signal yet that foreign investors shouldn’t count on Beijing to bail them out.
- China to Sanction U.S. Officials, Curb Some Diplomat Travel — China said it will sanction more U.S. officials and place new travel restrictions on American diplomats in retaliation for measures taken by the Trump administration over Hong Kong.
- World’s Biggest Investors Split China Bets From Emerging Markets — The widening economic gulf between China and other emerging markets is prompting some of the world’s largest investors to change how they allocate money to the asset class.
- Hong Kong Gets Chinese Audit Papers the U.S. Is Demanding — Hong Kong has received the first access to financial audits from mainland Chinese companies, an issue that has vexed relations between the U.S. and China and threatens to lead to the delisting in New York of giants such as Alibaba Group Holding Ltd.
- Japan Vice Defense Minister Keen to Hear Biden Policy on Taiwan — Japan’s vice defense minister said he’s eager to hear details of the new Biden administration’s policies toward Taiwan, adding that Biden’s stance on China-Taiwan frictions would be a focus for him in 2021.
- HNA to Sell Ingram Micro for $7.2 Billion in Its Biggest Sale — Debt-laden HNA Group Co. will sell Ingram Micro Inc. for about $7.2 billion, representing the biggest asset sale for a company that had one of the biggest corporate downfalls in Chinese history.
- China Censors Viral Boast of Influence Over Wall Street, Biden — A Chinese professor’s speech boasting about Beijing’s influence over President-elect Joe Biden was removed from the country’s social media platforms after going viral in the U.S., underscoring how sensitive ties between the world’s two biggest economies are after strife under Donald Trump.
- ADB Sees Shallower Asia Slump Amid Better China, India Prospects — Developing Asia’s economy will contract this year by less than previously estimated as it begins recovering from the coronavirus pandemic, according to the Asian Development Bank.
- Electric-Car Startup Xpeng Raises $2.2 Billion in Share Sale — Chinese electric-vehicle maker Xpeng Inc. raised $2.16 billion from an upsized share sale, joining a rush of fundraising by companies in the sector seeking to capitalize on a rally in stock prices.
- China’s Global Power Tops the U.S.? New Measures Say No — GDP and military spending matter, but so do networks of allies and “resilience.”
Reuters
- S&P DJI removes Chinese firms from indexes after U.S. order — S&P Dow Jones Indices on Thursday became the second major index provider to remove some Chinese companies from its index products following a Trump administration executive order, in the latest market disruption from persistent Sino-U.S. tensions.
- Boxed out: China’s exports pinched by global run on shipping containers — China’s world-beating economic rebound from the coronavirus pandemic is being blunted by a global shortage of shipping containers, sending cargo costs to record highs and hampering manufacturers in filling fast-recovering global goods orders.
- Europe, U.S. should say ‘no’ to China’s ‘wolf-warrior’ diplomacy – EU envoy — The European Union and the United States should work together to stand up to coercive Chinese diplomacy and coordinate with other countries in the region on the disputed South China Sea, the EU ambassador to China said on Thursday.
- Chinese mystery box maker Pop Mart rakes in millions from millennial fans — BEIJING/SHANGHAI (Reuters) -Taking pride of place in 28-year-old Beijing lawyer Wu Ge’s bedroom are dozens of small figurines displayed on clear plastic shelves with designs ranging from cherubic dolls to characters from Japan’s Pokemon series.
- U.S. blacklists Chinese crime boss, others in anti-corruption sanctions — The United States on Wednesday slapped sanctions on Wan Kuok Koi, a leader of China’s 14K Triad organized crime group, and three entities “owned or controlled” by him, the U.S. Treasury said in a statement.
- World indoor championships in China postponed again until 2023 — The World Athletics Indoor Championships in Nanjing, China have been pushed back again to March 2023 due to the COVID-19 pandemic, the sport’s global governing body said on Thursday.
- Speculative buying lifts China iron ore futures to contract high — Benchmark iron ore futures in China surged more than 7% on Thursday to hit a contract high, as speculative buying was fuelled by expectations that a recovering economy would lead to strong demand for the steelmaking ingredient.
- China says Wan Kuok Koi is not a member of CPPCC — China said on Thursday Wan Kuok Koi is not a member of China People’s Political Consultative Conference (CPPCC), in response to the United States imposing sanctions on Wan.
- China imposes temporary anti-subsidy charges on Australian wine imports — China will temporarily impose anti-subsidy fees on some Australian wine imports from Dec. 11, the commerce ministry said on Thursday, ramping up pressure on the industry amid rising tensions between the two nations.
- China to sell 80 million internal combustion engines a year in next five years — China is expected to sell 80 million internal combustion engines annually in the next five years, in line with previous years, an engine industry association said on Thursday, amid a broader industry transformation toward electrification.
- China’s Great Wall plans new electric, smart vehicle brand – sources — China’s Great Wall Motor plans to launch a new standalone brand for electric and smart vehicles, sources familiar with the plan said, as automakers in world’s biggest car market pursue growth in the new segment.
Xinhua
- Economists expect Chinese GDP to grow 10 pct in 2021 — China’s gross domestic product (GDP) would increase 10 percent and its economy would continue to be a global outperformer in 2021 while Chinese central bank will start to hike lending rates next year, according to a recent research note by international economic research firm Capital Economics.
- China’s central bank conducts 10 billion yuan of reverse repos — China’s central bank on Thursday conducted 10 billion yuan (about 1.53 billion U.S. dollars) of reverse repos to maintain reasonably ample liquidity in the banking system.
- China’s central bank injects liquidity into market — China’s central bank injected liquidity into the banking system through open market operations on Tuesday.
- China gains stronger global trade position amid COVID-19 crisis: leading U.S. media — China has gained a stronger global trade position while the COVID-19 crisis continues to hamper the economies of the United States and Europe, said Fortune magazine on Wednesday.
- U.S.-listed Chinese firms trade mostly lower — U.S.-listed Chinese companies traded mostly lower on Wednesday, with eight of the top 10 stocks by weight in the S&P U.S. Listed China 50 index ending the day on a downbeat note.
Other Publications
- The New Yorker: The Next Stage of the Ideological Struggle Between the U.S. and China — Isaac Chotiner interviews John Pomfret, author of “The Beautiful Country and the Middle Kingdom: American and China, 1776 to the Present.”
- Nikkei Asian Review: China to overtake US economy by 2028-29 in COVID’s wake: JCER — The Chinese economy is likely to surpass that of the U.S. in either 2028 or 2029, as the Asian giant emerges from the coronavirus pandemic in a position of strength, a new study by the Japan Center for Economic Research shows.
- Forbes: Hong Kong IPO Makes This 33-Year-Old Chinese Toy Tycoon A Billionaire Several Times Over — Chinese toy billionaire Wang Ning saw his wealth surge almost three fold this year, thanks to strong investor demand for the initial public offering of his Pop Mart International Group.
