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 Economy Continues Broad Recovery Despite Covid-19 Surge Elsewhere — Industrial output, investment and consumer spending all grew at faster paces in November.
- Can Biden Find Clarity on China and Russia? — Shared interests help shape geopolitical rivalries, but they can’t erase them.
- Chinese Stimulus Won’t Do Heavy Lifting in 2021 — The beginning of a global cyclical uptick might seem like a great time to own heavy industrial shares, but that part of China’s recovery is already long in the tooth.
The Financial Times
- China stocks: Darwinian selection — Well-intentioned reforms are fraught with difficulties.
- China suspends top credit rating agency as defaults hit market — Regulator says Golden Credit failed to justify some of its ratings and upgrades.
- China’s industrial production rises at fastest rate this year — Analysts upgrade full-year growth forecasts on rapid coronavirus recovery.
- Australia warns China coal ban will contravene WTO rules — Analysts say boycott heralds widening of economic coercion measures against Canberra.
- Chinese fashion group that controls Lycra maker defaults on $153m bond — Missed payment by Shandong Ruyi comes as conditions worsen in China’s $4tn domestic credit market.
The New York Times
- I.C.C. Won’t Investigate China’s Detention of Muslims — The International Criminal Court’s decision angered rights activists, who had lobbied it to investigate China’s repressive policies against Uighurs.
- Trade With China Roars Back As Americans Are Stuck At Home — Reducing trade with China was supposed to happen in 2020. But demand for Chinese goods has soared amid pandemic lockdowns.
- Pound for Pound, Taiwan Is the Most Important Place in the World — Its excellence in the computer chip market puts it at the center of the battle for global technological supremacy.
Caixin
- In Depth: What’s Next for the Yuan After Crushing the Dollar for Six Months — Chinese currency may still have legs after 8.5% gain against greenback since end-May, analysts say.
- China’s Wave of Corporate Defaults Has Some Investors Seeing Dollar Signs — An increasing number of financial institutions have jumped into junk bonds, hoping for a big payday if issuers end up paying off their debts.
- Boss of Diving-Gear Maker Investigated for Suspected Market Manipulation — Yang Zhihui resigned from his posts as a director of the board and general manager of China Dive on Monday.
- China’s Revised Delisting Rules Blasted as Too Lenient on Financial Fraud — ‘Companies that make false financial statements can be relieved,’ one investment banker writes as mainland exchanges seek comment on draft regulations.
- China’s Latest Economic Buzzword: ‘Demand-Side Reform’ — Top leaders debuted the phrase at a meeting of the Politburo last week, highlighting a renewed focus on boosting consumption.
- Update: China Economic Recovery Picks Up Speed, Indicators Show — Retail sales in November joined major economic indicators in accelerating from the previous month, but unlike the others the figure fell short of expectations.
- China’s Coal Imports Fall for the Seventh Straight Month — Imports of the fossil fuel for the first 11 months of the year were down 10.8% to 260 million tons.
- Nanjing Authorities Intervene in China’s Rental Housing Crisis — In response to Danke Apartment collapse, city’s housing bureau requires that rental intermediaries deposit advance rent payments in supervised accounts.
- Mobike Rides Into History with Shutdown of Its App — Remember scenes of swarms of commuters riding orange Mobike bicycles on China’s streets during rush hours just a couple of years ago? Now, the era of Mobike, once China’s top-funded and biggest shared-bike startup, has finally come to an end.
- Baidu Capital Leads $100m Series C+ Round in Chinese Healthtech Startup Weimai — Weimai, a Chinese startup that offers Internet-based healthcare solutions to hospitals and patients, has raised $100 million in a Series C+ round of financing led by Baidu Capital, the corporate investment platform of search engine giant Baidu.
- China’s EHang Self-Flying Vehicles Set for Take Off in Austria — Chinese flying carmaker EHang has obtained an Austrian trial flight permit for its flagship passenger-grade autonomous aerial vehicle, in the latest step towards its goal of rolling out urban air mobility service worldwide.
South China Morning Post
- China’s first Mars mission Tianwen-1 passes important milestone on journey — China’s first mission to Mars Tianwen-1 has reached what has been hailed as an important milestone on its journey.
- Ant Group’s chairman Eric Jing breaks silence after halt in largest global IPO with a corporate ‘check-up’ and rehabilitation plan — Ant Group has conducted a thorough review of its operations and will fully align itself with national-development priorities across the next five years, said executive chairman Eric Jing in his first public comments since Chinese regulators suspended the firm’s US$37 billion initial public offering.
- Taiwan launches ‘carrier killer’ corvette as it strengthens defences against mainland China attack — Taiwan has launched its first missile corvette designed to take down an aircraft carrier as it seeks to bolster its defences against a possible attack from mainland China.
- China’s wind, solar energy sectors need the right incentives and market reforms to meet Xi Jinping’s carbon neutrality goals — China’s wind and solar power producers need the right incentives and market reforms to increase the contribution of non-fossil fuels to 25 per cent of the total energy consumption mix by 2030, analysts said.
- JD builds AI control system that can save China’s thermal power plants billions and reduce pollution — JD Digits, the digital technology arm of e-commerce firm JD.
- The US-China neutrino hunt that opened a path to discovery — Scientists will comb through nearly a decade’s worth of data from an award-winning international research project in southern China to analyse an elusive subatomic particle that could be the key to understanding the origins of the universe.
- Chinese tenants, landlords left dismayed by Danke debacle after US-listed firm fails to pay up, leading to evictions — For Henry Wang and thousands of other young tenants across China, the business model pitched by one of China’s largest rental specialists seemed to be exactly what they were looking for – a win-win arrangement in which they were offered a decent place to live at an affordable price in a major city, while increasing the rental profits of property owners.
- China’s average home price rises for 33rd month, defying bank regulator’s warning of ‘grey rhino’ spillover risks — China’s residential property market rose for the 33rd straight month in November, prompting the government to continue its drumbeat of market-cooling measures to stave off the kind of risk that led to the 2008 subprime lending crisis in the United States.
- China FDI up 6.3 per cent in 2020, with November up 5.5 per cent — Foreign direct investment (FDI) into China rose 6.3 per cent in the first 11 months of 2020 year on year to 899.38 billion yuan (US$137.3 billion), the Chinese commerce ministry said on Tuesday.
- China’s economic recovery broadened in November as retail sales, industrial production rose further — China’s economic recovery broadened in November as both retail sales and industrial production growth accelerated, data released on Tuesday showed.
- China-Australia trade deal does not oblige either country to continue buying goods, lawyers say — China and Australia can cut trade ties at any time if either country can justify the action under rules set by the World Trade Organization (WTO), despite signing a free-trade agreement together, lawyers say.
- Hong Kong tourist arrivals slide 99.8 per cent year on year in November amid Covid-19 fourth wave — Arrivals to Hong Kong tumbled 99.8 per cent year on year to fewer than 6,000 in November, continuing a downward trend in recent months amid the fourth wave of Covid-19 infections.
- From blackened bananas to melted sorbet, Hong Kong’s perishable food deliveries fail to make the grade, watchdog says — As online orders soar amid the Covid-19 pandemic, Hong Kong’s grocery delivery services are handling perishable foods poorly, with retailers sending melted sorbet, thawed frozen meats and blackened bananas to customers’ doorsteps, the city’s consumer watchdog has found.
- Dim prospects for new university graduates in Hong Kong, with fewer jobs, lower salaries amid economic slump — More than 20,000 university graduates in Hong Kong this year are facing the biggest drop in starting salaries in half a decade, with the number of vacancies available to them also falling by nearly a quarter compared to 2019, according to a major jobs portal and a joint university information system.
Bloomberg
- Global Fishing Talks Blow 2020 Deadline as China, India Balk — The World Trade Organization announced it will miss a 2020 deadline to secure an agreement prohibiting subsidies that threaten the sustainability of global fishing, as countries including China and India hold out for an exemption.
- China Heads for Strong Growth in 2021 as Recovery Gathers Pace — China pulled further ahead of other major economies in November as industrial output and retail sales strengthened, reinforcing expectations of healthy growth in 2021.
- China’s Tougher Delisting Rules Send Weakest Stocks Plunging — China’s weakest stocks faced another blow after exchange regulators issued tougher rules to weed them out of the market.
- China’s Economy Sustains Covid-19 Rebound as U.S., Japan, Germany Falter — Strong finish to the year comes as recoveries in the U.S., Japan and Germany show signs of faltering.
- China Offers $145 Billion to Banks as Cash Supply Tightens — China injected cash into the financial system by offering medium-term loans, in the government’s latest effort to ensure the country’s banks have sufficient liquidity.
- China Sees New Jump in Pork Prices as 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.
- Australia Close to Taking China to WTO Over Barley Tariffs — Australia says it has built a strong case to challenge anti-dumping duties imposed by China on its barley exports and will announce soon whether it will take the matter to the World Trade Organization.
- Singapore’s GIC Said to Invest $200 Million in Sinopec Green — Singapore’s sovereign fund GIC Pte has invested $200 million in a geothermal heating company backed by China’s biggest oil refiner, people with knowledge of the matter said.
- Apple Supplier, Taiwan’s Wistron, Runs Into Labor Unrest in India — The risks of a more volatile workforce confronts leaders seeking to move away from China.
- Trucks in China Are Watching If Drivers Doze, Speed or Slack Off — Trucks in China connected to G7’s fleet-management network do more than just haul goods across the vast nation.
- Chilean Lawmakers Push for Restrictions on Chinese Buying Spree — A group of Chilean legislators is proposing tighter rules on foreign investment in strategic industries after a Chinese state-owned company agreed to take control of over half of the South American country’s power distribution.
- 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.
Reuters
- Australia PM warns of ‘lose-lose’ in any China coal shift — Australian Prime Minister Scott Morrison said any shift by China away from importing high quality Australian coal would be a “lose-lose” for the environment and their trading relationship.
- Exclusive-China search giant Baidu considers making own electric vehicles — China’s Baidu Inc is considering making its own electric vehicles and has held talks with automakers about the possibility, three people with knowledge of the matter said, the latest move in a race among tech firms to develop smart cars.
- Indonesia says China’s CATL plans to invest $5 billion in lithium battery plant — China’s Contemporary Amperex Technology (CATL) plans to invest $5 billion in a lithium battery plant in Indonesia, Indonesia’s deputy minister at the coordinating ministry of maritime and investment affairs said on Tuesday.
- China’s factory recovery steps up as export, consumer demand grows — BEIJING (Reuters) -China’s factory output grew at the fastest pace in 20 months in November, as revived consumer spending and a gradual easing of COVID-19 restrictions in major trading partners lifted demand for the country’s manufactured goods.
- Chinese professor, despite no remorse, to return home after guilty plea in Huawei theft case — A Chinese professor accused of stealing American technology to benefit China’s Huawei Technologies Co plans to return to his home country after being sentenced on Monday for lying to the FBI.
Xinhua
- Xinhua Headlines: Containers in short supply as Chinese exports surge — China’s latest index of export container transport hit a record high, reflecting a supply shortage of containers, mainly due to the nation’s fast-growing exports.
- China’s fixed-asset investment up in first 11 months — China’s fixed-asset investment went up 2.6 percent year on year in the first 11 months of the year, 0.8 percentage points higher than the rise in the first 10 months, data from the National Bureau of Statistics showed Tuesday.
- Factbox: Data highlights of Chinese economy in Jan.-Nov. period — Unveiled on Tuesday, China’s key economic indicators for November presented the latest signs of strengthening recovery, as consumption and investment return to normal levels and the country heads toward world-leading positive growth.
- China’s industrial output further expands in November — China’s industrial output maintained expansion for eight straight months as factories activities keep recovering under the government’s effective COVID-19 control measures.
- China’s surveyed urban unemployment rate drops in November — China’s surveyed urban unemployment rate stood at 5.2 percent in November, 0.1 percentage points lower than that of October, data from the National Bureau of Statistics (NBS) showed Tuesday.
- China’s fiscal revenue down by 5.3 pct — China’s fiscal revenue totaled about 16.95 trillion yuan (2.59 trillion U.S. dollars) in the first 11 months of this year, down by 5.3 percent year on year, official data showed on Tuesday.
- China launches online platform to facilitate foreign investment — China has launched a new online platform to facilitate investment into the country, according to a trade and investment promotion agency.
- China’s FDI inflow scores 8-month growth streak — Foreign direct investment (FDI) into the Chinese mainland, in actual use, expanded 5.5 percent year on year to 98.7 billion yuan (14.38 billion U.S. dollars) in November, the Ministry of Commerce said Tuesday.
- Massive Xinjiang oil field sees annual production over 2 mln tonnes — A new conglomerate oil field in northwest China’s Xinjiang Uygur Autonomous Region with an estimated total reserve of 1 billion tonnes saw its oil production this year surpass 2 million tonnes, according to the PetroChina Xinjiang branch.
- China develops new middle-to-low-speed maglev train — Chinese train maker CRRC Changchun Railway Vehicles Co., Ltd. on Tuesday rolled out a new type of middle-to-low-speed magnetic-levitation train.
- China’s Tianjin foreign trade up 12.1 pct in October — North China’s Tianjin Municipality saw robust foreign trade growth in October as its economy further recovers from the COVID-19 epidemic.
- Foreign trade of east China’s Jiangxi up 14.9 pct in Jan-Nov — The foreign trade of east China’s Jiangxi Province rose 14.9 percent to 366.3 billion yuan (about 56 billion U.S. dollars) in the first 11 months of 2020, expanding nearly 4.4 percent from last year’s total volume, according to Nanchang customs.
- China’s FDI inflow up in November — Foreign direct investment (FDI) into the Chinese mainland, in actual use, expanded 5.5 percent year on year to 98.7 billion yuan (14.38 billion U.S. dollars) in November, the Ministry of Commerce said Tuesday.
- China’s agricultural product wholesale prices edge up — The wholesale prices of China’s agricultural products edged up Tuesday, according to the Ministry of Agriculture and Rural Affairs.
- China’s hog production to fully recover in H1 next year — The hog production in China is expected to fully recover in the first half of 2021, said the Ministry of Agriculture and Rural Affairs on Tuesday.
Other Publications
- Nikkei Asian Review: China’s Fosun to import 7.2m doses of BioNTech-Pfizer COVID vaccine — Company working with airlines to start shipments in January.
- Defense News: Report estimates Chinese nuclear stockpile at 350 warheads — A paper published by the Chicago, Illinois-based Bulletin of the Atomic Scientists has estimated that China has 350 nuclear warheads, significantly more than that estimated by the U.S. Defense Department.
