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
- WeChat Becomes a Powerful Surveillance Tool Everywhere in China — The government is increasingly using the app to monitor and suppress dissenting views.
- Sinovac’s Covid-19 Vaccine Shown Effective in Brazil Trials — Brazil is first country to complete Phase 3 trials of Chinese company’s vaccine; official results due out Wednesday.
- Beijing’s Collision With Christians — As the faith spreads, the Communist Party fears a threat to its political control.
The Financial Times
- UAE rolls out free Chinese vaccines to all citizens and residents — Emirati government wants to inoculate all adults in population of 9m against Covid-19.
- 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.
The New York Times
- A Hong Kong Activist, Nathan Law, Seeks Political Asylum in Britain — The prominent dissident fled to London shortly before a security law was imposed in Hong Kong. Affording him asylum would likely incense China.
- ‘The Whole City Was Dark’: China Rations Electricity for Millions — Warning of coal shortages, officials are trying to curb energy usage by telling residents not to use electric stoves and extinguishing lights on building facades and billboards.
Caixin
- Ex-Finance Minister’s Call for Bond Market Reform Sparks Central Bank Pushback — Lou Jiwei’s criticism of regulators rebutted by PBOC-linked newspaper.
- Province to Raise $2.3 Billion for New Bank Born From Merger of Local Lenders — Shanxi plans to sell special-purpose government bonds to capitalize the as-yet-unnamed bank, as it looks to prop up its scandal-ridden banking system.
- Tencent-Backed Virtual Bank Opens for Business in Hong Kong — Fusion Bank allows WeChat Pay and offers foreign currency trading.
- Former Central Bank Official Investigated for ‘Serious Violations’ — The latest financial sphere probe in China’s ongoing graft campaign shines a spotlight on officials in northwest China’s Gansu province.
- Postal Saving Bank Gets Direct Banking Approval — Youhui Wanjia Bank with initial investment of $765 million will be China’s third independently operated internet-only bank.
- Seeking to Escape Grasp of U.S. Sanctions, Huawei Launches In-Car Screens for Smart Vehicles — Embattled tech giant’s new smart system will run over 30 applications, mostly for maps and navigation.
- JD.com’s Fintech Unit Reshuffles Executives Ahead of IPO — As JD Digits’ planned listing faces new uncertainty, it has chosen JD.com’s chief compliance officer to take over as CEO.
- Commodities Exchange Warns of Bubble as Iron Ore Futures Hit Record Highs — Analysts point out that the recent jump in contract prices far outpaces growth in spot prices, suggesting concern is growing about possible disruption to supplies.
- Embattled Faraday Future Sets Up Car Sales Unit in Zhuhai — New venture signals Faraday’s intention to try to enter the China market with electric cars, which it hasn’t yet started producing.
- Countermeasures Against U.S. Planned as Chinese Chip and Drone Leaders Sanctioned — China pledged to take countermeasures after the U.S. imposed sanctions on domestic chipmaking leader SMIC and global drone giant DJI, among others, as security and trade tensions between the two countries continue their downward spiral.
- Tesla Rival Xpeng Cruises Into Export Lane With First Overseas Sales — U.S.-listed Chinese electric vehicle startup Xpeng has taken a big step toward becoming a global powerhouse by making its first exports to Norway.
- Tencent, Jeneration Capital Lead $305 Million Series E1 Round for Medbanks — Tencent and Asia-based growth capital asset manager Jeneration Capital have jointly led an investment of nearly 2 billion yuan ($305.3 million) in the Chinese oncology medical service platform Medbanks.
- Temasek-Backed Chinese Cancer Biotech Firm Gracell Files for $100 Million US IPO — Gracell Biotechnologies, a venture capital-backed Chinese biotechnology company, has filed to raise up to $100 million in an initial public offering (IPO) in the US.
South China Morning Post
- China launches new Long March-8 rocket in step towards reusable space vehicles — China launched its latest rocket from its southern island of Hainan on Tuesday, as it progresses towards its target of developing reusable launch vehicles.
- China’s new diplomacy normal looks a lot like the old one — 2020 is a watershed year in many ways. The still raging coronavirus pandemic has already plunged us into the worst crisis of global governance since the end of the second world war. And the escalating superpower rivalry between China and the United States has exacerbated the decline of multilateral diplomacy, leaving the world ever more fragmented.
- China to open energy sector to foreign investment as it seeks to balance energy security with carbon neutral pledge — China will open its energy sector wider to foreign investment as part of its plan to ensure security and prioritise the development of renewables, according to a new government white paper, although “efficient” use of fossil fuels will continue.
- China-Australia relations: WTO confirms appeal lodged against Beijing’s tariffs on Australian barley — Australia’s dispute with China over anti-dumping and anti-subsidy duties imposed on its barley exports is under way after the World Trade Organization (WTO) confirmed the complaint on Monday.
- Hong Kong keeps its edge as Asia’s air transport hub for DHL and other logistics firms amid rivalry in Greater Bay Area — Hong Kong International Airport, which handles the largest volume of air cargo in the Greater Bay Area, continues to bank on its key strengths to win new investments from global logistics firms amid challenges from surrounding airports.
- China-Australia relations: high iron ore prices may correct on slowing demand, but derivative trading could still keep prices up, analysts say — High iron ore prices are due for a correction in the coming year as Chinese demand for the steelmaking ingredient is expected to ease, though aggressive speculation through iron ore derivative trading could thwart that outcome, according to analysts.
- Punishing Australia through trade also comes at a price for China — China’s decision to punish Australia through trade is the result of both feelings and calculations. Beijing is angry at Canberra and is implementing a plan to inflict pain – making a case to the world that those who dare to offend China will pay the price.
- ICAC to haul trio at the heart of Convoy’s case back to court as it appeals acquittal verdict in Hong Kong’s biggest fraud probes — Hong Kong’s anti-corruption agency plans to haul three central figures in one of the city’s biggest financial fraud cases back to court, attempting to overturn the trio’s acquittal last month of conspiring to defraud HK$89 million (US$11.48 million) from Convoy Global Holdings.
- RCEP deal, China’s dual circulation strategy to strengthen Hong Kong’s status as international trade, finance hub, Victor Fung says — Hong Kong has a vital role in international trade and global supply chains as the world’s biggest free-trade deal reinforces Asia’s status as a global trade and consumption force, according to prominent businessman Victor Fung Kwok-king.
- Huawei’s former budget smartphone unit Honor sets aggressive targets for 2021, but still needs greenlight from US — The former budget smartphone unit of Huawei Technologies, which was sold last month as part of the telecoms giant’s response to US blacklisting, plans to boost its output by 40 per cent in 2021 despite uncertainties over its ability to source critical components from American chip suppliers.
- Apple aims to produce first self-driving car by 2024, eyes ‘next level’ battery technology, sources say — Apple is moving forward with self-driving car technology and is targeting 2024 to produce a passenger vehicle that could include its own breakthrough battery technology, people familiar with the matter told Reuters.
Bloomberg
- Greenback at Risk of Sharp Year-End Drop to Cap a Miserable 2020 — The dollar is heading into the year-end vulnerable to a sharp extension of the bear run that’s shaped global currency markets since March.
- Biden Camp Adds Pressure on EU to Hit Brakes on China Deal — The European Union came under mounting pressure to slow down its push for a major investment deal with China, as opposition grew to any agreement with Beijing that fails to tackle forced labor.
- Google Helps Birth Two Social Media Unicorns in Rapid Succession — Google investments helped create India’s two youngest technology unicorns: a pair of startups that feed personalized news and entertainment to the world’s fastest-growing smartphone population.
- Default Story Far From Over for Virus-Hit Emerging Economies — The drop in the amount of distressed debt across emerging markets has been a barely anticipated bonus for many countries this year.
- Hang Seng Proposes Major Overhaul of Hong Kong Stock Index — Hang Seng Indexes Co. is considering wide-ranging changes to Hong Kong’s stock benchmark that would dilute the influence of its largest companies.
- Ripple Says it Faces SEC Lawsuit as Cryptocurrency XRP Drops — XRP, the world’s third-largest cryptocurrency, slumped after Ripple Labs Inc. said it faces a U.S. Securities and Exchange Commission lawsuit over its affiliated token.
- Mark Zuckerberg Has Another Answer to Bitcoin. It’s Called Diem — Facebook’s Libra has a new name and diminished ambitions, but regulators will still see it as a threat in 2021.
- China Is Set to Reduce Dollar’s Influence on Yuan Trading Basket — The dollar’s influence on how China sets its yuan exchange rate is expected to decrease again this year.
- China Limits Power Supplies as Demand Surges on Cold Weather — China is limiting power supplies in some provinces as cold weather and the country’s industrial recovery boost demand.
- AP Interview: China Signals Shift But No Letup 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.
- Real Oil Price Rally Fades as Asia’s Buying Spree Winds Down — A rally in the physical oil market is losing steam as Asian refiners ease purchases after an earlier-than-usual buying spree.
- Hutch, Ooredoo Said to Near Deal for Indonesia Mobile Merger — Hong Kong’s CK Hutchison Holdings Ltd. is nearing a deal with Qatar’s Ooredoo QPSC about a combination of their telecommunications operations in Southeast Asia’s most populous country, according to people with knowledge of the matter.
- Westerners Grow Wary of China Travel Over Threat of Detention — As the research director of an activist investor, Anne Stevenson-Yang made business trips to China from the U.S. almost monthly before the coronavirus hit. But the J Capital Research co-founder has strong reservations about going back, even after the pandemic subsides.
- Sheldon Adelson’s Singapore Casino Paid Price for Courting China’s High Rollers — Rogue employees at the Marina Bay Sands may have facilitated moving millions of dollars out of prominent accounts.
- U.S. Adds Over 100 Chinese, Russian Companies to Military List — The U.S. Commerce Department added more than 100 Chinese and Russian companies to a new list of firms it says have links to their nations’ militaries, a move that will sharply curtail certain types of exports.
- A Vaping Billionaire Only Got Richer After China’s Online Ban — Since China banned online sales of e-cigarettes about a year ago, the industry has mushroomed offline with not even the coronavirus crisis stopping the expansion.
- Nomura’s China Venture Is Winning More Clients Than Expected — Nomura Holdings Inc. is gaining mainland Chinese clients faster than it expected, a senior executive said, adding to signs of progress in its broader Asian expansion.
Reuters
- S.Korea scrambles jets as Chinese, Russian aircraft enter air defence zone — South Korea said it scrambled fighter jets in response to an intrusion into its air defence identification zone by 19 Russian and Chinese military aircraft on Tuesday.
- U.S. publishes list of Chinese and Russian firms with military ties — (Reuters) -The Trump administration on Monday published a list of Chinese and Russian companies with alleged military ties that restrict them from buying a wide range of U.S. goods and technology.
- China says it opposes U.S. list of firms with alleged military ties — China’s Ministry of Commerce said on Tuesday it firmly opposed a U.S. move placing 58 Chinese companies on a list of firms with alleged military ties, and vowed to take measures to safeguard the rights and interests of Chinese enterprises.
- U.S. issues additional visa restrictions on Chinese officials — The United States on Monday imposed additional visa restrictions on Chinese officials over alleged human rights abuses, taking further action against China in the final month of U.S. President Donald Trump’s term.
- FTSE Russell to remove SMIC and Hikvision from China indexes — SHANGHAI/SINGAPORE (Reuters) -Global index publisher FTSE Russell said on Tuesday it will remove Hangzhou Hikvision Digital Technology Co from its widely tracked FTSE China A50 index citing U.S. sanctions against the Chinese video security firm.
- Tibetan leader welcomes U.S. bill that reaffirms rights, angering China — The political head of Tibetans in exile on Tuesday welcomed legislation passed by the U.S. Congress that reaffirms the rights of Tibetans to choose a successor to their spiritual leader, the Dalai Lama, a move that infuriated China.
- China says it firmly opposes any country or individual harbouring criminals — China firmly opposes any country or individual harbouring criminals, foreign ministry spokesman Wang Wenbin said on Tuesday after news of Hong Kong pro-democracy activist Nathan Law requesting asylum in the United Kingdom.
- China says will take countermeasures in response to U.S. visa bans — China will take countermeasures against those responsible for hurting the Chinese side, the foreign ministry said on Tuesday, in response to additional U.S. visa bans on Chinese officials.
Xinhua
- Spotlight: Energy transition highlighted in turbulent year of 2020 — As 2020 draws to an end, leaders and officials in the energy world do not feel the relief, since uncertainties brought by unprecedented public health crises have kept on unfolding.
- China uses blockchain technology to regulate livestreaming e-commerce — The market regulation authorities in east China’s Zhejiang Province have officially launched a blockchain-powered mobile app to improve regulations of the burgeoning livestreaming market.
- 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.
- Chinese company Kedali to build lithium battery parts plant in Hungary — China’s Shenzhen Kedali Industry, a producer of lithium battery precision components and automotive components, will make an investment of 14.1 billion forints (47.8 million U.S. dollars) in Hungary, said Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto on Monday.
- Chinese shares close lower Tuesday — Chinese stocks closed lower Tuesday, with the benchmark Shanghai Composite Index down 1.86 percent, at 3,356.78 points.
Other Publications
- Nikkei Asian Review: How illegal online gambling launders $150bn from China — Campaign against fraud bars the use of other people’s phone and bank cards.
- Nikkei Asian Review: China to bolster energy security as ties with US and Australia sour — In a move away from LNG and coal imports, Beijing to tap more renewables.
- Foreign Policy: Beijing Ransacked Data as U.S. Sources Went Dark in China — During the 2000s, U.S. intelligence had operated with relative confidence against Beijing. But during China’s biggest political transition in decades, American officials were looking through an increasingly opaque glass.
- The Atlantic: The Risk of John Kerry Following His Own China Policy — Any progress on climate change will be lost if the frame is one of a grand bargain with Beijing.
- Axios: Chinese Communist Party think tank staffer offered to pay for sources — A person on LinkedIn claiming to work for a think tank run by a high-ranking Chinese Communist Party department recently offered financial compensation for the names of my sources and for reports about the incoming Biden’s administration’s views on China.
- Axios: U.S. warns Chinese investments in Israeli tech industry could pose security threat — The Trump administration is concerned Chinese investments in the Israeli tech industry could harm Israeli and U.S. national security, assistant secretary of state for Near East Affairs David Schenker said Monday at a conference organized by the SIGNAL think tank, which focuses on Israeli-Chinese academic cooperation.