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
- Secretary of State Pompeo on What the World Needs to Do About China — He says there can’t be one set of rules for most nations, and another set for China.
- An Old Friendship and a Communist Crackdown — Beijing’s dictatorship takes aim at political dissent and economic liberty.
- Henry Paulson: How to Fix Our Relationship With China — The former Treasury secretary says if the U.S. can defeat Covid-19 and fix its economy, it will be a dominant world power no matter what China does.
- The U.S.-China Tech War Won’t End Under Biden — A softer touch is likely, but Democrats and Republicans share concerns about the threat to core American industries and China’s techno-authoritarian ambitions.
- Gen. Mark Milley: The Biggest Security Challenges for the U.S. — The Chairman of the Joint Chiefs of Staff talks about the risks posed by China and Russia.
- George Shultz Helped Democracy Flourish in Asia — Reagan’s secretary of state also worked to restore balance to the American relationship with China.
The Financial Times
- To the moon and back, Chinese R&D is leaving the US behind — It’s telling that the same day a Chinese rocket collected lunar rocks, a key US radio telescope collapsed.
- China to prosecute rating agency manager over ‘massive’ bribes — People’s Bank of China has pledged to improve its supervision of the sector.
- Global investors place Rmb1tn bet on China breakthrough — Bonds, stocks and currency draw in buyers in a year when everything unexpectedly came together.
- Beijing racks up the points in its great game against Washington — Recent exploits, including moon mission, recall cold war rivalry rather than effort to court Biden.
- China lays out steps towards climate targets at UN summit — US president-elect Biden tweets that his administration will ‘rally the world’ to tackle crisis.
- China pulls back from the world: rethinking Xi’s ‘project of the century’ — Chinese overseas lending has fallen sharply amid a reassessment of the Belt and Road Initiative.
The New York Times
- China’s Combative Nationalists See a World Turning Their Way — China’s Communist Party is pushing the narrative that the pandemic has proved the superiority of its authoritarian model. The muscular message is finding fans at home.
- China, in Nudge to U.S., Makes a New Promise to Tackle Global Warming — Speaking at an online summit on the fifth anniversary of the Paris climate agreement, Xi Jinping said that China would reduce its carbon intensity by over 65 percent by 2030.
Caixin
- After Four-Year Hiatus, China Hands Out Another Independent Direct Banking License — China Merchants Bank and JD Digits get approval for joint venture to offer online-only financial services.
- Cash-for-Ratings Probe Nets Former Executives at State-Run Credit Ratings Agency — Investigators are looking into whether managers took payoffs to inflate ratings as China takes a harder tack against corruption in the scandal-scarred financial sector.
- Chinese Dairy Giant Realizes Cheesy Ambitions — Mengniu increases stake in cheese producer Shanghai Milkground from 5% to 23.8% to meet growing domestic demand.
- China Attempts to Cap Soaring Coal Prices as Imports Tumble — NDRC directs top power utilities to put a 640 yuan per ton ceiling on prices as restrictions on Australian shipments and lagging Mongolian supply drive prices higher.
- Meituan Exposes Grocery Executive for Suspected Corruption — Disclosure of bribery case involving mid-level manager in Northeast China comes as company prepares to aggressively expand its new community-based grocery service.
- Solar on Track to Become China’s No. 3 Power Source — Things are looking bright for solar power in China, which is on track to edge past wind to become the nation’s third largest electricity source by the end of this year.
- HK’s Shop King Struggles to Sell Billions in Real Estate — 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.
- China’s Yonghui Superstores’ Fresh Food Unit Raises $153m from CICC, Tencent, Others — Yonghui Fresh Food, the fresh produce-based business-to-business (B2B) platform of Chinese leading supermarket group Yonghui Superstores, has secured a corpus of 1 billion yuan ($153 million) in a strategic investment jointly led by Chinese tech giant Tencent and CICC Capital’s sub-fund CICC Qizhi, per a company filing with the Stock Exchange of Shanghai on Friday.
- Chinese EV Startups in Fundraising Frenzy on Bullish Sentiment — U.S.-listed Chinese electric vehicle (EV) startups have embarked on a fundraising spree to expand their business, banking on bullish market sentiment over the prospects for new energy vehicles.
- Significant Obstacles Face the Roll Out of Any Successful Covid-19 Vaccine — Last week, a vaccine developed by China’s state-owned pharmaceutical giant Sinopharm was reported to have protected 86% of people against Covid-19 in trials conducted in the United Arab Emirates, winning approval for full public use in the Mideast country. The vaccine is based on using an inactivated version of the coronavirus to stimulate human immune systems.
- China Reduces Metric for Overseas Borrowing to Rein In Capital Inflow — Central bank and foreign exchange regulator reverse easing move from March after strengthening yuan results in foreign debt surge.
- China 2021 New-Energy Car Sales to Surge 40% as Tesla Ramps Up Local Output — Overall auto sales seen rising for first time in four years.
South China Morning Post
- Is the US behind India’s ‘anti-China games’? Russia thinks so — Russian Foreign Minister Sergey Lavrov has created a geopolitical stir with his claim that India is being manipulated by Western countries into “anti-China games” and turning its back on Moscow.
- Busy year ahead for Chinese Tesla challengers Nio, Xpeng, as industry body forecasts 40 per cent rise in deliveries — China’s new-energy vehicle (NEV) manufacturers can expect to be busy next year if an industry forecast of a 40 per cent sales increase proves accurate.
- EU and China set for further investment talks as end-of-year deadline for deal looms — China and the European Union will hold a new round of negotiations this week as both sides aim to hammer out a landmark investment treaty by the end of the year.
- China’s yuan to continue rise against US dollar in short term, but when will Beijing say enough? — China’s yuan is expected to continue appreciating against the US dollar in the early part of next year due to strong growth of the Chinese economy and weakness in the American currency due to a coronavirus-induced slowdown in the United States, analysts said.
- Taiwan aims to be eligible to join CPTPP before Beijing, but ‘must revisit Japan food ban’ — Taiwan may have a better chance of joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) than mainland China, given the requirements for entering the Pacific Rim deal, according to analysts and Taiwanese officials.
- Xi Jinping’s new economic focus on China’s demand reform borrows ideas from Marx more than Keynes — The Politburo of China’s Communist Party coined a new term, “demand-side reform”, at its latest meeting, intending to complement Beijing’s ongoing “supply-side reform” to better balance the national economy, as the official line goes.
- ‘Star’ Chinese banker jailed for life for stealing US$400 million from clients in Ponzi scheme — A “star” bank manager from Beijing has been jailed for life for stealing the equivalent of US$400 million from clients and using the money to finance her lavish lifestyle.
- China’s digital currency no threat to global monetary systems, former central bank chief says — China’s new sovereign digital currency could be a boon for cross-border trade while also supporting Beijing’s efforts to promote the yuan as an international currency, the former head of the country’s central bank said on Sunday.
- US Treasury takes no action on major banks in Hong Kong crackdown, providing relief for Citi, HSBC and other lenders — The United States government said it had not identified any global banks that “knowingly” did business with several officials on a US sanctions list over the Chinese government’s enactment of the national security law for Hong Kong.
- China looks to carbon capture and hydrogen to push aviation, shipping, power plants, heavy industries towards 2060 target — The fourth part of a series on China’s carbon neutrality goal examines the heavy lifting that must be done by the country’s biggest carbon dioxide emitters to reach that target by 2060. Earlier instalments of the series are here, here and here.
- 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.
Bloomberg
- China Regulators Review Huya’s $6 Billion Deal to Buy DouYu — China’s regulators said they are reviewing Huya Inc.’s proposal to acquire game-streaming rival DouYu International Holdings Ltd., part of a crackdown on anti-competitive behavior in the country’s technology industry that throws the $6 billion transaction into question.
- China Sees New Surge in Pork Prices With Imports Under Scrutiny — Pork prices have rebounded in China as demand strengthens before a major holiday season and supply tightens because of a virus-linked crackdown on imports.
- China Fines Alibaba, Tencent Unit Under Anti-Monopoly Laws — China’s antitrust watchdog fined Alibaba Group Holding Ltd. and a Tencent Holdings Ltd. unit over a pair of years-old acquisitions and said it’s reviewing an impending Tencent-led merger, signaling Beijing’s intention to tighten oversight of internet sector deals.
- EU Urges China to Give Bloomberg News Staffer Legal Access — The European Union called on Chinese authorities to allow a Bloomberg News staffer who was detained last week in Beijing to have access to a lawyer, medical care and contact with her family.
- Rapid China Inflows Spur Call for Strongest Yuan Since 1993 — The unrelenting pace of inflows heading for China’s bonds and stocks has one yuan bull predicting the currency could strengthen to a level not seen in nearly three decades.
- Iron Ore Rattled as Crackdown Plea From China Mills Spurs Slump — Iron ore futures in Singapore tumbled from the highest since 2013 after a leading mills’ group in China stepped up its push for authorities in the top importer to investigate the raw material’s blistering rally.
- Bank of China Sues BP, Lim Family for $313 Million on Oil Deals — Bank of China Ltd. has sued BP Plc in Singapore over its alleged role in fabricating oil deals with collapsed trader Hin Leong, in the latest effort by a creditor to recover losses after one of the biggest trading scandals in decades.
- Investors Are Learning to Live With China’s Credit Defaults — China’s authorities are increasingly spreading the message: you should get what you pay for when it comes to corporate bonds.
- China’s and Russia’s Covid Vaccines Could Use a Shot in the Arm — China and Russia came roaring out of the gate in the race to stop Covid-19 but have got little credit. Transparency might help.
- Families Despair at How Hong Kong Keeps Flunking Covid-19 — Hong Kong keeps getting it wrong on Covid-19 and closing classrooms. It’s well beyond time to adapt.
- Kuwait Approves Pfizer-BioNTech, Bahrain Registers Sinopharm — Bahrain has approved Chinese-made Sinopharm Group Co.’s vaccine for widespread usage on Sunday while neighboring Kuwait authorized the use of Pfizer Inc. and BioNTech SE’s vaccine.
- Chinese Capsule With Moon Rocks Begins Return to Earth — A Chinese space capsule bringing back the first moon rocks in more than four decades started its three-day return to Earth on Sunday.
- China’s Love Affair With Australian Wine Ends in a Messy Breakup — China’s assault on Australia’s wine industry is becoming quite the buzzkill.
- China’s Xi Takes Small Step to Boost Emission Reduction Goals — Chinese President Xi Jinping announced incremental increases to the world’s biggest emitter’s climate goals at a global summit where he was expected to build on his ambitious pledge to be carbon neutral by 2060.
Reuters
- In Latin America, a Biden White House faces a rising China — Donald Trump was clear with Latin America during his four-year administration: don’t do business with China. The message failed to hit home.
- New World Development’s investment in mainland China may surpass HK -CEO — New World Development said its land investment in mainland China may exceed that in Hong Kong in the near future, as a new Chinese policy gives it an edge over indebted peers in the hunt for premium land in the “Greater Bay Area”.
- China urges U.S. to stop abusing state power to crack down on foreign firms — China on Monday urged the United States to stop abusing state power to crack down on foreign companies, after Nasdaq said it will remove four Chinese companies’ shares from indexes in response to a U.S. order.
- China’s new home prices slow in November as market-cooling steps take hold — China’s new home prices grew in November at their slowest monthly pace since March, official data showed on Monday, as policymakers wary of financial risk in the highly leveraged sector continued to pursue market-cooling measures.
Xinhua
- In a year like no other, Chinese economy emerges stronger from unprecedented virus test — China’s economy, the first jolted by COVID-19, has bounced back from epidemic fallout with resilience on effective virus control and targeted stimuli, as a pandemic depression continues to threaten the world.
- Economic Watch: New development philosophy to lead China through middle-income trap — China is determined to evade the so-called “middle-income trap” and become a high-income economy in the next 15 years, with its “new development philosophy” guiding the way.
- China’s housing prices remain stable in November — China’s housing market remained stable in November, with slower month-on-month growth in home prices in major cities, official data showed Monday.
- China’s central bank conducts 20 billion yuan of reverse repos — China’s central bank on Monday conducted 20 billion yuan (about 3.06 billion U.S. dollars) of reverse repos to maintain reasonably ample liquidity in the banking system.
- China, EU hold 35th round of investment treaty negotiations — China and the European Union (EU) held the 35th round of negotiations on a bilateral investment treaty from Dec. 6 to 11, the Ministry of Commerce said Monday.
- Platform to safeguard cybersecurity in China’s financial sector takes shape — China’s financial sector has preliminarily established a platform for cybersecurity situation sensing and information sharing, according to the country’s central bank.
- Complaints against China’s banking sector rise in Q3 — Consumer complaints against China’s banking sector rose 26.5 percent quarter on quarter in the July-September period of this year, with 85,097 cases received by the China Banking and Insurance Regulatory Commission and its local bureaus.
- China’s whole-year power use to grow 3 percent — China’s electricity consumption, a key barometer of economic activity, is expected to grow by about 3 percent year on year in 2020, according to an estimate from the State Grid Energy Research Institute.
- Beijing’s tech hub aims high in digital economy — Beijing’s Zhongguancun, better known as China’s Silicon Valley, is eyeing new digital economy growth in its roadmap for the next five years.
- China’s Henan sees foreign trade cross 100 bln yuan in Nov. — Central China’s Henan Province saw its foreign trade cross 100 billion yuan (about 15.3 billion U.S. dollars) in November, a monthly record, local authorities said.
- China remains most attractive offshore supplier location: report — For many companies considering changing suppliers in the wake of supply-chain disruptions during the COVID-19 pandemic, China remains the most attractive outside their main country of location, according to a latest survey by credit insurer Euler Hermes.
- E-commerce boosts Uruguayan beef sales in China — Uruguayan beef is increasingly being sold via e-commerce transactions in China, where it seeks to position itself as a premium product.
- China Molybdenum buys 95 pct stake in DRC copper-cobalt mine — China Molybdenum Co., Ltd. has acquired a 95-percent stake in the Kisanfu copper-cobalt mine in the Democratic Republic of Congo (DRC) from U.S.-based Freeport-McMoRan Inc. for 550 million U.S. dollars.
- Nissan China to recall defective Infiniti vehicles — Nissan (China) Investment Co., Ltd. will recall 236 vehicles over a drive shaft defect, China’s top quality regulator has said.
- China’s SMEs report steady improvement in November — China’s small and medium-sized enterprises (SMEs) have seen moderate recovery and improved vitality as the country continues its robust overall recovery, the latest industry data shows.
- Chinese companies, Argentina further railway cooperation with four new deals — The contracts worth some 4.7 billion U.S. dollars represent “extremely important investments and an auspicious start for the country in the matter of railway development,” Argentine Minister of Transport Mario Meoni said in an interview with Xinhua and other local media.
Other Publications
- CNN: Peter Humphrey was once locked up in China. Now he advises other prisoners and their families how to take on Beijing — Since his release and return to the United Kingdom, Humphrey has transformed himself into an antagonist of those he blames for putting him behind bars, and an unpaid adviser and lobbyist for those still there. Despite ongoing health problems, which Humphrey said had been exacerbated by his time in prison, this has become something of a mission for the 64-year-old, a second act he never expected.
- AP News: Trump raises China concerns as reason to veto defense bill — President Donald Trump offered a new rationale Sunday for threatening to veto the annual defense policy bill that covers the military’s budget for equipment and pay raises for service members: China. He did not outline his concerns.
- Nikkei Asian Review: China claims milestone in quest for ‘quantum supremacy’ — It is called “quantum supremacy,” the ability to harness quantum technology to achieve computational power that cannot be achieved by a conventional computer. So far, only Google has laid claim to reaching that milestone, but now a team of researchers in China say they too conquered that level.
- Nikkei Asian Review: China reshuffles stock indexes in favor of high-tech companies — China’s stock indexes took on a fresh cast Monday, with new economy shares taking the place of financials and energy companies to better reflect the country’s increasingly high-tech market and help lure new passive funds.
- Foreign Policy: China’s Drive to Make Semiconductor Chips Is Failing — The stunning success of U.S. efforts to hobble Huawei shows the fragility of Beijing’s highly centralized tech sector.
- Defense News: An Ignored Canary in an Unknown Coal Mine: The Caribbean’s Economic Engagement with China — The Caribbean provides some of the earliest signs of the problems that would later dog China’s Belt and Road Initiative.
