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 Xi Ramps Up Control of Private Sector. ‘We Have No Choice but to Follow the Party.’ — Push driven by a conviction that markets and entrepreneurs are not to be fully trusted; ‘the market-reform camp is all but gone’.
- House Leaders Clash Over Swalwell’s Role in China Spy Probe — Pelosi defends California Democratic lawmaker from McCarthy’s criticism; no accusation of wrongdoing.
- Two Canadians Held in China Haven’t Been Tried, Contrary to Reports — A Chinese briefing sparked news stories, but Canada says the status of Michael Kovrig and Michael Spavor is unchanged.
- China Detains Bloomberg News Staff Member in Beijing — Haze Fan, a Chinese national, is being held on suspicion of endangering national security, news organization says.
- The Bidens and Beijing — Tax questions about Hunter’s income raise again the question of how he earned it.
- Hong Kong Police Charge Media Mogul Jimmy Lai With Foreign Collusion — Pro-democracy stalwart becomes the highest-profile figure charged under China’s national security law.
- Former Hong Kong Lawmaker Seeks Asylum in the U.S. as Exodus Grows — Activist says he is lobbying in Washington for more support for targets of China’s suppression in the city; ‘everybody in my circle is frightened’.
- U.S. Sanctions Accused Human Rights Abusers in Several Countries — Russian, Chinese, Houthi officials and former officials among figures earning U.S. reproval.
The Financial Times
- Pop Mart/Asian IPOs: go figure — There is little to support the Chinese toymaker’s outsize valuation.
- New Zealand university dismisses complaints against China expert — Anne-Marie Brady co-authored report on links between universities and Chinese military.
- Index providers race to respond to Trump’s Chinese investment bans — FTSE Russell and S&P have already announced exclusions after urgent client consultations.
The New York Times
- Jimmy Lai and a Bloomberg Staffer Face National Security Charges — Mr. Lai’s case was followed hours later by a disclosure that the authorities in China had detained a Chinese citizen working for Bloomberg News.
Caixin
- End Could Be Nigh for Tsinghua Unigroup as Defaults Mount — Bankruptcy reorganization risks grow for Chinese semiconductor designer, analysts predict, as fresh bond defaults weigh on state firms.
- China Toymaker Pop Mart Jumps 80% in Hong Kong IPO — Company plans to use IPO proceeds to create more of its own products as growth starts to rebound from pandemic slowdown.
- Hong Kong Evacuates Apartment Block, Fearing Repeat of SARS Tragedy — After seven infections in neighboring homes, 60 people have been asked to quarantine off-site.
- Solar Powers Its Way to China’s No. 3 Electricity Source — Sun-powered electricity now accounts for more than 10% of the nation’s total energy-generating capacity, with the share expected to accelerate as the technology matures.
- Exclusive: U.S.-listed 111 Raises $153 Million Before Shanghai Flotation — Online health-care platform plans to divest and list its main operating unit on the STAR Market within 3 years.
- Jiahua Energy Co-Launches $458m Fund for M&As in Integrated Circuit Industry — Shanghai-listed chemical products provider Zhejing Jiahua Energy Chemical Industry Co., Ltd said on December 8 that it has co-launched a semiconductor industry fund with a corpus of 3 billion yuan ($458 million).
- GIC Leads $100m Series C Funding Round in Chinese SaaS Developer Huice — Huice, a software-as-a-service (SaaS) developer for the smart retail sector, has secured around $100 million in a Series C round funding led by Singapore’s sovereign wealth fund GIC, according to a company statement on Thursday.
South China Morning Post
- China-made coronavirus vaccine at heart of political showdown in Brazil — Brazil has become a battleground as political factions jostle over which Covid-19 vaccine to roll out for its 212 million citizens – a decision that will have implications for the entire Latin American region.
- China-Russia ties ‘high on Beijing’s foreign policy agenda’ for 2021 — Resetting relations with the US and strengthening strategic ties with Russia will be among the top priorities for China next year, Foreign Minister Wang Yi said on Friday as he outlined the country’s diplomatic agenda for 2021.
- Boeing 737 MAX: plane’s return to China riddled with uncertainty as tensions with US rage on — As Boeing’s troubled 737 MAX took off for its first commercial flight in 20 months this week, the company is still facing challenges getting the passenger jet into the air in the critical Chinese aviation market, where its business has become entangled in tension between Beijing and Washington.
- ‘Fear of China’ pushing Australia and India towards trade pact — Plans for a free-trade pact between Australia and India are gaining ground amid rising fears of Chinese bullying and trade coercion, analysts say, following the latest signal of support for a deal from New Delhi’s top diplomat.
- China-Australia relations: could New Zealand show the way to better ties? — China is looking to New Zealand to strengthen its foothold in the Pacific, touting the ties between the two countries as an example for others as its relations with Australia plunge to their worst in decades.
- Sanctioned dinner guest Wang Chen could give AmCham China a headache in US — A top Chinese legislator sanctioned by the US joined an annual dinner hosted by the American Chamber of Commerce in Beijing to celebrate bilateral trade ties in a move that could lead to criticism of the business group in the US.
- Taiwan launches new coastguard ship to bolster defences against attack from mainland China — Taiwan commissioned the first of a new fleet of coastguard ships on Friday, an advanced catamaran that can be armed with missiles, as the island bolsters its defences in the face of what it sees as a growing threat from Beijing.
- How China’s online microlenders reached a tipping point in world’s biggest mobile internet market — This is the fourth part in a series looking at fintech in China in the wake of regulators’ suspension of Ant Group’s IPO. This article looks at how the microlending industry has grown in the country on the back of high smartphone penetration and rapid adoption of mobile payments.
- China’s economic vulnerabilities to be focus of 2021 work conference amid strong GDP forecast, analysts say — China’s leaders are expected to prioritise fixing social and economic weak links in 2021 – the year the ruling Communist Party celebrates its 100th anniversary – when they gather to take stock of the country’s economic performance in coming days, analysts said.
- China debt: local government default risk grows as authorities struggle to repay credit — China’s regional economies are under growing pressure to meet debt repayments after a years-long spending spree, as trillions of yuan worth of credit is set to mature next year, according to analysts.
- China’s resurgent car sales set to match 2019 levels despite coronavirus, recovery continues in November — China’s vehicle sales are likely to hit 25 million units this year, an industry body said on Friday, as the world’s biggest vehicle market continued to lead the global car industry recovery from lows hit during the coronavirus pandemic.
- China-Australia relations: could wool, honey, fruit, dairy or pharmaceutical products be next in the crosshairs? — Australian wool could be China’s next trade target, given its heavy dependency on the Chinese market, alongside honey, fruit, dairy and pharmaceutical products, according to analysts.
- Traffic to Hong Kong airport could be cut by a fifth with road linking New Territories to north Lantau — A new HK$47 billion (US$6.1 billion) road project connecting the New Territories and north Lantau could divert around one-fifth of rush-hour traffic away from the Lantau Link – the vital artery leading to Hong Kong International Airport – when it fully opens on December 27, transport officials have said.
- US FCC moves against Huawei and China Telecom, citing security — The US Federal Communications Commission has moved against marquee Chinese companies Huawei Technologies Co. and China Telecom, continuing a series of rulings aimed at protecting national security from the Beijing government.
Bloomberg
- Xi Speech to Show If China Will Really Lead World on Climate — After surprising the world in September with a pledge to make China carbon neutral by 2060, President Xi Jinping has an opportunity to assert his global leadership on climate before Joe Biden takes an ambitious green agenda to the White House.
- Tesla’s China Rival Nio Joins Race for Cash with Share Sale — Chinese electric-car maker Nio Inc. joined the rush for fundraising among new-energy vehicle manufacturers, capitalizing on a 11-fold increase in its share price this year to boost its coffers.
- Commodity Traders Need to Wait Longer to See China Tariffs Gone — Commodity traders relying on Joe Biden to remove tariffs on $370 billion of imports from China will have to wait a little longer.
- Investors Are Learning to Live With China’s Corporate Defaults — China’s authorities are increasingly spreading the message: you should get what you pay for when it comes to corporate bonds.
- China Sends Sanctioned Official to AmCham Dinner in Beijing — Beijing sent a top official sanctioned by the U.S. to an AmCham China dinner, in a show of defiance that could feed criticism of the business group in Washington.
- Coal’s Surge Tests China’s Control of Its Cheapest Fuel — At China’s biggest coal event in the mining hub of Shanxi, the industry’s top executives signed deals over three days for more coal than other nations typically use in a year.
- FCC Moves Against China Telecom and Huawei, Citing Security — The U.S. Federal Communications Commission moved against marquee Chinese companies Huawei Technologies Co. and China Telecom, continuing a series of rulings aimed at protecting national security from the Beijing government.
- Pfizer Vaccine Clearance to Be Sought in Hong Kong After FDA — The Chinese company with the rights to market the Pfizer Inc.-BioNTech SE coronavirus vaccine in Hong Kong is preparing to seek approval of the shot soon after the U.S. clears it, according to people familiar with the matter.
- Scrapped China Talks Cast Shadow Over EU Investment Pact — Europe’s top business association pulled out of a meeting with a Beijing think tank after the Chinese side opposed the participation of two perceived China critics, a person familiar with the event said.
- China Stocks Post Worst Week in Two Months as Liquidity Tightens — Chinese stocks suffered their worst weekly decline since September, as concern over high valuations and the tightening supply of cash weighed on the market.
- U.K. Exodus Could Be a Boon for Hong Kong Developer Far East — Hong Kong property developer Far East Consortium International Ltd. is hoping to capitalize on a potential mass exodus of citizens to the U.K., where it is spearheading a huge urban renewal project.
- CMC’s Fancl Asia Said to Pick Sequoia China, Carlyle to Bid — Sequoia Capital China and Carlyle Group Inc. were picked to participate in the next round of bidding for Japanese skincare brand Fancl’s Asia business outside its home country, people with knowledge of the matter said.
- China Vows to Strengthen Fiscal Support in Key Areas Like Tech — China will strengthen fiscal support in key areas including food, energy, and technology in order to ensure the country’s economic security, the finance minister said.
- China Investors With Triple-Digit Gains Share Tips for 2021 — After a tumultuous year that saw record stock selloffs and a dramatic melt-up, we asked three of China’s top-performing fund managers how they made it through — and what they are buying, selling or holding on to for 2021.
- Australia Excluded From Global Climate Talks as Policies Lag — Around 70 world leaders including China’s Xi Jinping and Pope Francis will use a global climate summit this weekend to outline new pledges to cut greenhouse-gas emissions. Australia’s Prime Minister Scott Morrison, who supports fossil fuels, will be conspicuously absent.
- Hong Kong’s Shop King Struggles to Sell Billions in Property — Hong Kong property tycoon Tang Shing-bor is seeking to offload billions of dollars of real estate after an ill-timed expansion at the top of the market.
- ChemChina’s Syngenta Takeover Is a Failure. Time to Admit It — There’s a way to salvage the $46 billion purchase of agrochemical giant Syngenta.
- Biden Agriculture Pick Boosts Farmer Hopes on Biofuel, Trade — The prospect of Tom Vilsack returning to oversee U.S. agriculture is drawing praise from some farmers who are hopeful the former Democratic Iowa governor will be an ally on everything from biofuels and dairy to China and climate-friendly farming.
- FCC Orders Equipment Removed in Step Aimed at Huawei, ZTE — The Federal Communication Commission ordered carriers to remove network equipment that poses a security risk, taking another step aimed at China’s Huawei Technologies Co. and ZTE Corp.
- China’s Soybean Deal Signals Early Jump Into 2021 U.S. Market — China, the world’s top soybean importer, is getting an early jump on purchases from the U.S. for next year.
Reuters
- China leads auto industry recovery as sales top expectations — BEIJING/SHANGHAI (Reuters) -China’s vehicle sales are likely to hit 25.3 million units this year, an industry body said on Friday, as the world’s biggest vehicle market continued to lead the global auto industry recovery from lows hit during the COVID-19 pandemic.
- Investors swap China holdings from Wall Street to Hong Kong as delisting threat brews — Global fund managers are reducing their holdings in U.S-listed Chinese companies such as Alibaba, Netease and JD.com as risks grow they will be forced off American exchanges, switching instead into shares of the companies listed in Hong Kong.
- China says U.S. claims about national security risks from China Telecom are false — Chinese foreign ministry spokeswoman Hua Chunying said on Friday U.S. claims about risks to national security were completely false, following a U.S. decision to halt China Telecom U.S. operations.
- 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.
- Face value: In China men’s skincare boom, startups, global investors seek rich glow — China’s radiant male skincare market has a fresh shine: A raft of domestic startups is tapping global investors for funds, with ambitions to rival giants like L’Oreal in a billion-dollar business serving image-conscious millennial men like Hou Junru.
Xinhua
- China’s factory-gate prices see narrowed decline in November — China’s producer prices saw a narrowed decline in November amid a steady recovery in industrial activities, official data showed Wednesday.
- 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 Hubei sees foreign trade surge in Jan.-Nov. — Central China’s Hubei Province, once hard hit by COVID-19, saw 10.1 percent growth in foreign trade in the first 11 months of this year, local authorities have said.
- 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.
Other Publications
- CNBC: Fitch upgrades its China growth forecast for 2021 — Fitch Ratings raised its forecast for China’s GDP to 8% growth next year, up from the 7.7% rate predicted in September, according to a report released Thursday.
- Asia Society Policy Institute: The New Geopolitics of China’s Climate Leadership — Since 2014, China has embarked on a new era of confident, independent international policy activism under President Xi Jinping – the origins of which can be traced back to the Chinese Communist Party’s 2014 Central Conference on Work Relating to Foreign Affairs. That conference marked the end of Deng Xiaoping’s 30-year-old dictum of “hide your strength, bide your time, never take the lead.”
- Science: China’s vaccine gambit — With its global campaign to test and promote COVID-19 vaccines, China aims to win friends and cut deals.
- Nikkei Asian Review: China lowers hurdle for overseas money transfers — Shanghai and Beijing among cities looking to reduce government regulations.
- The Economist: China is doubling down in Xinjiang — Our columnist visits factories accused of using forced labour.
- The Economist: The pandemic has changed China’s nightclubs — It has given local DJs a chance to shine.