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.
Paid subscribers can have this list emailed directly to their inboxes every day. Subscribe here, and then send us an email at contact@thewirechina.com to opt in for the Daily Roundup email.
The Wall Street Journal
- Jack Ma Makes Ant Offer to Placate Chinese Regulators — Trying to salvage his relationship with regulators in a Nov. 2 meeting, the Chinese billionaire said he was ready to do what the country needed.
- Beijing Tests Joe Biden — Will the President-elect speak up about China’s jailing of Jimmy Lai?
- China’s Liquor Giants Intoxicate Investors — Baijiu makers Kweichow Moutai and Wuliangye Yibin are riding a hot streak thanks to China’s growing thirst for pricier drinks.
- Pompeo Blames Russia for Hack as Trump Casts Doubt on Widespread Conclusion — There is a growing consensus in Washington that Russia is very likely responsible.
- Zoom Executive in China Charged With Disrupting Tiananmen Memorials — U.S. prosecutors say Xinjiang Jin worked with Chinese intelligence in a case highlighting the challenge of operating in the U.S. and China.
The Financial Times
- China’s bargain shopping sites push to build own shipping networks — Ecommerce sites forced to rethink logistics after US struck deal for higher international postage fees.
- ‘Politics come first’ as ban on Australian coal worsens China’s power cuts — Factories and street lights shut down to save energy as embargo contributes to shortages.
- EU should bide its time on China investment deal — Beijing has offered concessions on market access in hurry to seal accord.
- Apple supply chain workers in Asia protest over unpaid wages — Tech group suspends new business with contractor while Shanghai plant is hit by demonstrations.
- Blacklisting of China’s DJI in US threatens to scramble drone industry — Company’s models are popular with consumers, corporates and public sector buyers.
The New York Times
- Zoom Executive Accused of Disrupting Calls at China’s Behest — U.S. prosecutors have charged a company executive based in China with conspiring to terminate online meetings about the Tiananmen Square massacre.
- Chinese Journalist Who Documented Communist History Is Detained in Beijing — Friends of Du Bin said that his detention might have been related to book projects critical of the history of Communism and China’s Communist Party.
- No ‘Negative’ News: How China Censored the Coronavirus — Thousands of internal directives and reports reveal how Chinese officials stage-managed what appeared online in the early days of the outbreak.
Caixin
- Brokerage Involved in Upending China’s Bond Market Punishes Handful of Executives — Haitong Securities fines managers for breaking ‘self-regulatory rules’ after helping state-owned coal miner issue shady bonds.
- Cover Story: How Illegal Online Gambling Launders $153 Billion From China — New industry employing 5 million channels funds through borrowed or leased payment accounts via ‘running points platforms’ and cryptocurrency exchange.
- China Mulls Retaliation After U.S. Blacklists Drone-Maker DJI and Others — DJI could face near-term supply challenges while chipmaker SMIC has longer-term risks.
- Cold Snap, Recovering Economy Drive Record Power Demand — Consumption surge in several Central China provinces came amid plunge in coal imports following trade frictions with Australia.
- Tencent-Led Consortium to Increase Stake in Universal Music Group to 20% — A consortium led by Tencent will buy an additional 10% stake in Universal Music Group (UMG) from French media conglomerate Vivendi, increasing their holding in the record label to 20%, as Tencent aims to dominate the Chinese music streaming market, according to a statement on Friday.
- China’s Premium Electric Car Market Just Got a Little More Crowded — Voyah, a premium electric vehicle brand launched by China’s state-owned carmaker Dongfeng Motor in July, announced on Friday that it has begun accepting pre-orders for its first mass-produced model. The news means Voyah now joins the ranks of automakers such as Tesla and Nio in tapping into the country’s high-end new energy vehicle market.
South China Morning Post
- China’s new data privacy law ‘will state how facial recognition can be used’ — China’s new law on data privacy will include provisions to protect personal biometric information, amid growing concerns in the country over the prolific use of facial recognition technology.
- China says no let-up in Xinjiang crackdown but may shift policy — An official from China’s Communist Party signalled Monday that there would likely be no let-up in its crackdown in the remote Xinjiang region, but said the government’s focus is shifting more to addressing the roots of extremism. China’s policies in Xinjiang, home to the Uygurs and other predominantly Muslim ethnic groups, have become a major point of division with the US and other Western nations over alleged human rights violations.
- How will Ouyang Yujing, Beijing’s new ambassador to Malaysia, handle the South China Sea? — The extensive maritime affairs experience of China’s new ambassador to Malaysia has attracted the attention of analysts, who say Ouyang Yujing’s appointment could mean “more authoritative decisions” over the countries’ South China Sea dispute.
- Belt and Road Initiative: China ups investment despite coronavirus and doubters — China has increased investment in its flagship Belt and Road Initiative this year and will make digital cooperation along the route a priority, Chinese Foreign Minister Wang Yi said, rebuffing suggestions that Beijing had scaled back the programme during the coronavirus pandemic.
- US law targeting Chinese firms on American exchanges could trigger delistings and hurt investors, finance professor says — Legislation that could see Chinese companies booted from US stock exchanges if they do not comply with auditing standards could lead to a wave of delistings and ultimately hurt American shareholders and the financial industry, a Cornell University finance professor has said.
- China ‘unsurprisingly’ keeps benchmark loan rate unchanged for eighth straight month ahead of ‘hike’ in 2021 — China kept its benchmark lending rate for corporate and household loans unchanged at its December fixing on Monday, as expected, although improving economic fundamentals have raised speculation about a rate hike next year.
- China’s stock exchanges and ‘Millionaire Yang’ mark 30 years of pride, fascination with Communist-style capitalism — Yang Huaiding was an unknown 40-year-old warehouse keeper at a Shanghai steel factory earning 51 yuan (US$7.80) a month in 1990. Today, he is fondly known as “Millionaire Yang” in the folklore of China’s stock market.
- China central bank dismisses criticism of its financial regulation, urges ‘realistic’ appraisal of environment — China’s central bank has called for “realistic” criticism of its performance amid a sharp rise in high-profile domestic bond defaults, following a surprisingly sharp attack from a former finance minister.
- China’s manufacturers forced to up wages to US$1,500 a month, with workers unwilling to return ahead of Lunar New Year — China’s manufacturing recovery, fuelled in part by demand from Covid-constrained consumers abroad, has soared past expectations this year – so much so that factories are now struggling to fill a shortage of blue-collar workers to clear mounting orders.
- What is behind China’s clamp down on Big Tech, and how far will it go? — Beijing’s determination to tame China’s big tech firms is set to have a profound impact on the country’s economic trajectory in coming years.
- Former Chinese finance minister Lou Jiwei attacks regulators for ‘failure’ to act over risk — China’s former finance minister Lou Jiwei has criticised the country’s financial regulators, saying they had ignored systemic risks.
- China strikes triumphal note over economic recovery as it looks to cut reliance on US technology — An economic planning meeting involving China’s top leadership ended on an unusually triumphalist note about the country’s recovery from Covid-19 as Beijing set out a series of policies to boost-self reliance amid its ongoing tensions with the US.
- China outlines system to subject foreign investors to national security review — China published details of a system to review foreign investments for national security risks on Saturday, covering everything from defence to agriculture.
- Hong Kong fourth wave: legislature passes HK$6.4 billion subsidy package for coronavirus-hit industries — Hong Kong’s Legislative Council has passed HK$6.4 billion (US$826 million) in financial aid for businesses hard hit by the Covid-19 pandemic, with a single lawmaker voting against the scheme.
- Beijing’s biggest chipmaking champion SMIC faces uncertain future after US blacklisting — The future of China’s largest chip maker and Beijing’s best hope to catch up with rivals in the critical field of semiconductor manufacturing is under a cloud after the company said it would have trouble developing advanced chipmaking processes after it was put on a US trade blacklist.
Bloomberg
- AP Interview: China Signals Shift But No Let-up in Xinjiang — Chinese officials tout the success of their effort to deradicalize the population and provide job training, saying the region hasn’t had a terrorist attack in four years.
- What It’s Like Living Next to a Belt and Road Project — The real-life environmental and social impact of China’s infrastructure initiative shouldn’t be overlooked
- Trump Downplays Huge Hack Tied to Russia, Suggests China — President Donald Trump downplayed the severity of a massive cyber-attack on the U.S. government and suggested China may have been responsible — even as other U.S. officials are convinced Russia was the perpetrator.
- China Makes Rare Move to Expand Corn Supply as Prices Rally — A rally in Chinese corn prices is spurring the government to action, which includes taking an unusual step of bolstering supply at a time when sales from farmers are poised to expand.
- India May Ease Rules for Non-Chinese Investments From Hong Kong — India may reduce scrutiny of deals by Hong Kong-based investors as long as Chinese firms aren’t involved in the transactions, people with knowledge of the matter said.
- Saudi Arabia Expects to Get Russia, China Virus Vaccines in 2021 — Saudi Arabia is still in talks with Russia and China to source coronavirus vaccines after the kingdom rolled out a program to administer the Pfizer Inc.-BioNTech SE shot.
- Landmark Taiwan Bid Sparks Hope of More Financial Deals to Come — Taiwan’s stalled efforts to consolidate its splintered banking industry received renewed impetus as one of the island’s biggest financial groups announced a milestone bid to buy a smaller rival.
- Traders at Odds With China Import Ban Keep Coal Cargoes in Limbo — Seafarers stuck for months on vessels carrying Australian coal off China’s coast are trapped between authorities who won’t let them unload their cargoes and buyers who won’t let them leave.
- Japan Cabinet Oks Record Defense Budget in Face of China Threats — Japan’s cabinet approved a record defense budget plan of about $51.6 billion for the coming year, in what will be the ninth consecutive increase in annual spending amid threats from China and North Korea.
- Biden Will Inherit a Strong Hand Against Xi, Thanks to Trump — Joe Biden will take office next month wielding more leverage over Beijing than he would have ever sought. He can thank Donald Trump and Xi Jinping for that.
- Workers Flocking to China’s Silicon Valley Can’t Afford to Buy Homes — Shenzhen’s boom has led to the highest property prices and lowest home ownership rates in China.
- China’s Online Shopping Addiction Is Killing Its Green Packaging Drive — The e-commerce industry is trying to reduce plastic waste from the millions of packages it ships every day.
- China’s Planning Body Vows to Prioritize Risk Prevention in 2021 — China’s top planning body vowed to maintain economic stability and prevent risks in 2021, while enhancing internal demand to create a robust domestic market.
- China Ex-Minister Sees Curbing of Fintech, Bank Tie-Ups: Report — China should consider further tightening control over fintech giants by restricting the number of banks they can partner with, the Securities Times cited a former finance minister as saying.
- China Targets ‘Reasonable’ Monetary Policy as Economy Recovers — China said it will implement “reasonable” monetary policy next year and ensure fiscal plans are “sustainable,” signaling it will limit its stimulus measures as the economy continues to recover.
- Ex-Zoom China Employee Faces U.S. Dissident Censoring Charge — A former Zoom Video Communications Inc. executive working in China has been charged by the U.S. with conspiring to censor Chinese dissidents and disrupt a video conference commemorating the anniversary of the June 4, 1989, Tiananmen Square crackdown.
- Zoom Says It’s Being Probed by SEC, Two U.S. Attorneys Offices — Zoom Video Communications Inc. said it has provided information to multiple U.S. prosecutors and regulators regarding interactions with China and other overseas governments, as well as security and user privacy matters.
- Nike Gains After China and E-Commerce Fuel Return to Growth — Nike Inc. gained in late trading after second-quarter revenue and profit topped Wall Street’s expectations, bolstered by e-commerce sales and rebounding growth in China.
- Trump Signs Bill That Could Remove Chinese Stocks From U.S. — President Donald Trump on Friday signed legislation that could kick Chinese companies off of U.S. exchanges unless American regulators can review their financial audits, a move likely to further escalate tensions between the two countries.
- An Epic Year of Market Events Shook China, Hong Kong, Taiwan — China, Hong Kong and Taiwan’s economies were among the first to suffer from the virus pandemic. They were also home to some of the most dramatic events in global financial markets this year.
Reuters
- China says firmly opposes U.S. bill that could remove Chinese firms from U.S. exchanges — China said on Monday it firmly opposed U.S. President Trump signing a bill that would kick Chinese companies off U.S. stock exchanges unless they adhere to U.S. auditing standards, saying it contains discriminatory provisions against Chinese companies.
- China to abolish access restrictions on foreign investment in energy sector – white paper — China will fully lift access restrictions on foreign investment in coal, oil, gas, power generation, excluding nuclear, as well as the new energy businesses, according to a sector white paper released on Monday.
- Energy China plans $3.6 billion investment on integrated energy project in Erdos — China Energy Engineering Group (Energy China) has signed a framework agreement with Erdos city government in Inner Mongolia to set up an integrated energy base with total investment of 23.8 billion yuan ($3.63 billion) in the region.
- China’s stunning export comeback has factories scrambling for workers — China’s manufacturing recovery, fuelled in part by demand from COVID-constrained consumers abroad, has soared past expectations this year, so much so that factories are now struggling to fill a shortage of blue-collar workers to clear mounting orders.
- China leaves lending benchmark LPR unchanged but rate hike expectations grow — China kept its benchmark lending rate for corporate and household loans unchanged at its December fixing on Monday, as expected, although improving economic fundamentals have raised speculation about a rate hike next year.
- PetroChina strikes big gas find in China Xinjiang’s Junggar basin: state media — PetroChina,Asia’s largest producer of oil and gas, has struck a large natural gas discovery in northwest China’s Xinjiang region with an initial estimated reserve exceeding 100 billion cubic meters, China’s state news agency Xinhua reported over the weekend.
- China says aircraft carrier group on way to South China Sea for drills — An aircraft carrier group led by China’s newest carrier, the Shandong, has sailed through the Taiwan Strait on its way to routine drills in the South China Sea, China’s navy said on Monday, after Taiwan mobilised its forces to monitor the trip.
- China could restrict bank tie-ups with fintech platforms, official suggests — China’s former finance minister Lou Jiwei suggested that China could restrict the number of banks a single fintech platform can partner with, to prevent any platform from gaining too much market share, state media reported on Sunday.
- Chinese drone maker says products to remain on sale despite U.S. restriction — Chinese drone manufacturer SZ DJI Technology Co Ltd, which was added by the United States along with dozens of Chinese companies to a restricted trade list on Friday, said its products will remain on sale despite the move.
- China issues new rules to review foreign investment on national security grounds — China has drawn up new rules that will allow authorities to review foreign investment on national security grounds, the country’s state planning agency said on Saturday.
- China signals GM, biotech push in key policy statement — China will industrialise biotech breeding as part of a campaign to improve food security, top leaders said in a policy statement late on Friday, signalling Beijing could soon take a further step towards commercialising genetically modified (GM) crops.
Xinhua
- China approves FAI projects worth 370 bln yuan in November — China’s top economic planner approved 26 fixed-asset investment (FAI) projects in November, with combined investment totaling 370.4 billion yuan (about 56.7 billion U.S. dollars), official data showed.
- China sees solid progress in modernizing seed industry: agriculture ministry — China has made solid progress in the modernization of its seed industry in recent years, an agriculture official said.
- China releases rules on foreign investment security review — Chinese authorities on Saturday released rules on foreign investment security review to safeguard national security while spurring foreign investment.
- Key meeting sums up China’s experience in developing economy amid severe challenges — The annual Central Economic Work Conference that concluded on Friday summarized China’s experience in developing economy in the face of severe challenges.
- China’s loan prime rates remain unchanged — China’s one-year loan prime rate (LPR), a market-based benchmark lending rate, came in at 3.85 percent on Monday, unchanged from the previous month.
- China’s financial institutions register rising total assets — The total assets of Chinese financial institutions rose 11.2 percent year on year to 347.32 trillion yuan (about 53.18 trillion U.S. dollars) at the end of the third quarter, central bank data showed.
- China’s central bank to issue 10 bln yuan of bills in Hong Kong — China’s central bank plans to issue 10 billion yuan (about 1.53 billion U.S. dollars) worth of bills in Hong Kong on Wednesday.
- China’s Bond Connect program sees record-high trading volume — The trading volume under China’s Bond Connect program in November hit a record high, reaching 485 billion yuan (about 74.26 billion U.S. dollars), according to a report released by Bond Connect Co., Ltd.
- China’s Tarim oilfield registers 30-mln-tonne oil & gas output — The Tarim Oilfield of China National Petroleum Corporation (CNPC), China’s leading oil and gas producer, on Monday saw its 2020 output surpass 30 million tonnes of oil equivalent.
- Guangdong carbon market closes lower — Carbon emissions allowances closed at 28.26 yuan (4.32 U.S. dollars) per tonne on Monday, 0.35 percent down from Friday, at China Emissions Exchange (Guangzhou), the largest local carbon market in China.
- China’s courier sector handles over 80 bln parcels this year — China’s courier sector this year handled more than 80 billion parcels until Monday, setting a record, the State Post Bureau said.
- China’s service outsourcing industry maintains steady expansion — China’s service outsourcing industry reported stable growth in the first 11 months of 2020, according to the Ministry of Commerce.
- China’s used car sales continue double-digit growth in November — China’s used car sales scored a four-month streak of double-digit expansion in November as the recovery of the domestic market sped up and demand further increased, official data showed.
- BMW recalls 936 defective vehicles in China — German auto brand BMW is recalling 936 vehicles in the Chinese market due to defective on-board diagnostics (OBD) system, according to China’s market regulator.
- China to solve housing problems in big cities through rental market — China will determinedly develop rental housing in 2021 under efforts to solve prominent housing problems in big cities, the country’s housing regulator said on Monday.
- China’s agricultural product wholesale prices edge up — The wholesale prices of China’s agricultural products edged up Monday, according to the Ministry of Agriculture and Rural Affairs.
Other Publications
- Foreign Policy: CHINA USED STOLEN DATA TO EXPOSE CIA OPERATIVES IN AFRICA AND EUROPE — The discovery of U.S. spy networks in China fueled a decadelong global war over data between Beijing and Washington. This series, based on interviews with over three dozen current and former U.S. intelligence and national security officials, tells the story of China’s assault on U.S. personal data over the last decade—and its consequences.
- Nikkei Asian Review: China powers Tesla’s surge into S&P and gives Musk a golden 2020 — EV maker’s inclusion in stock index comes as it nears half-million delivery goal.