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
- Chinese Regulators Summon Tech Giants, Intensifying Pressure — Popular online group-buying model triggers scrutiny of Alibaba, Tencent and others.
- Canada Vetoes China Gold Deal in Arctic — Prime Minister Justin Trudeau faces growing pressure to take a firmer line with Beijing as China’s influence expands.
- Blacklisting of China’s Top Chip Maker SMIC Comes With Exceptions — U.S. lawmakers want tougher curbs on exports to Chinese semiconductor giant.
- Hunter Biden’s Family Name Aided Deals With Foreign Tycoons — Business dealings of Joe Biden’s son are at the center of a federal tax investigation and loom over the start of his presidency.
- Apple’s China App Store Sheds Games Under Pressure — Thousands of videogames face removal as Beijing tightens control of internet.
- In China, Online Grocery Shopping Gets Political — The pandemic boosted the business of selling vegetables online in the country to the point where it has attracted the attention of regulators.
The Financial Times
- What an EU-China investment treaty would mean for companies — Negotiators rush to complete a limited deal between two giant markets.
- European tech accuses US of using sanctions to shut it out of China — Business says EU groups are losing out on licences to sell to blacklisted Chinese companies.
- Asia’s developing economies shun coal — While traditional lenders cut ties with fossil fuel projects, critics fear China will fill the void.
- Global investors inject momentum into Hong Kong’s biotech craze — Big US funds throw weight behind record $21bn in Chinese healthcare listings.
- Colin Huang, Shanghai’s secretive internet king — Controller of $170bn Pinduoduo founded a web of ecommerce and gaming ventures in the city.
The New York Times
- Hong Kong Media Tycoon Jimmy Lai Is Freed on Bail — Mr. Lai, who was charged under the national security law imposed by Beijing, is not allowed to speak to reporters, use social media or leave his house.
- China-E.U. Talks Hit Another Snag as Biden Camp Objects — Beijing and Brussels were on the brink of an agreement to roll back restrictions on investment. But the deal’s fate is uncertain amid growing animosity toward China and increasingly vocal opposition.
- Ezra F. Vogel, Eminent Scholar of China and Japan, Dies at 90 — A longtime scholar at Harvard, Professor Vogel wrote books that helped shape how the world viewed the two ascendant economic powers.
Caixin
- Exclusive: Stuck in a $10 Billion Hole, Sanpower Hashes Out New Debt Restructuring Plan — Chinese conglomerate that bought department store chain House of Fraser will get $1.2 billion bailout to pay off its debts.
- Regulators Seize Troubled Sichuan Trust and Vow to Force Restructuring — China’s banking regulator steps in after trust fails to resolve a $3.6 billion investment repayment crisis that emerged in May.
- China’s Soy Imports to Top 100 Million Tons as U.S. Supply Jumps — Imports from the U.S. may more than double to 36 million tons amid expectations of lower output from South America, an industry insider said.
- China Extends Virus Relief Measures to Support Small Business Credit — State Council delays year-end expiration of two programs as part of government commitment to maintain economic policies.
- In Depth: Questions Persist Over China’s Vaccine Export Deals — Chinese firms have already committed almost 380 million experimental jabs to countries in Latin America, Southeast Asia, and the Middle East.
- Italian Regulator Takes Up Case Against TikTok for Endangering Kids’ Privacy — TikTok has 30 days to respond, as EU hones in on data security concerns regarding the Chinese video-sharing site.
- Sinopec Hopes Coffee Tie-Up Can Add Buzz to Non-Fuel Sales — Sinopec, operator of nation’s largest gas station chain, expands joint venture with troubled Coffee Box to cash in on China’s soaring thirst for take-out beverages.
- As Winter Tests China’s Power Supplies, Guangzhou and Shanghai Deny Rationing — After much of Central China had to ration electricity during last week’s cold snap, Guangzhou and Shanghai said stoppages this week were unrelated to shortages.
- WeRide Eyes Autonomous Buses with $200 Million Investment — Chinese self-driving startup WeRide has received a $200 million investment from domestic commercial bus maker Yutong Group, in the latest pairing between a tech firm and automaker to co-develop pilotless vehicles.
- Burger King Joins Fake Meat Race in China with Launch of Plant-Based Burger — Burger King will sell a plant-based burger at its China restaurants, as food and beverage companies race to bring synthetic meat products to local consumers, Reuters reported on Wednesday.
- Logistics Firm Lalamove Bags $515 Million in New Funding — Hong Kong-based logistics startup Lalamove, backed by Chinese mainland investors including smartphone maker Xiaomi, has raised $515 million in its series E funding round led by Sequoia Capital China.
South China Morning Post
- Covid-19: fifth Chinese vaccine to reach final trials ‘produces antibodies’ — An experimental coronavirus vaccine developed by the Chinese Academy of Sciences has been found to be safe and trigger an immune response in early and mid-stage clinical trials, researchers said on Tuesday.
- China-Australia relations: trade minister torch passes to Dan Tehan as bilateral feud enters ninth month — Former Australian trade minister Simon Birmingham has called on Beijing to give his replacement, Dan Tehan, the courtesy of a phone call – a gesture toward resolving the two country’s political differences – as it was announced that Australia’s merchandise trade surplus fell to a two-year low in November, hit by a slump in exports to China.
- On brink of China-EU investment deal, eleventh-hour pressure comes from US and within Europe — The European Union started facing opposition from within – and from US president-elect Joe Biden’s team – just as it is trying to push through a controversial investment agreement with China.
- China-Russia bomber patrol a day after US sanctions upsets Seoul, Tokyo — Chinese and Russian bombers took part in a joint patrol over the western Pacific on Tuesday, a day after the two countries were hit with fresh sanctions from the United States, but sparking concern in South Korea and Japan.
- China to lower import tariffs on 883 products including aviation equipment, logs, paper and IT products — China will lower import tariffs on 883 products from the start of January, including some aviation equipment, logs and paper products, the finance ministry said on Wednesday.
- China extends loan help for coronavirus-hit small businesses in bid to maintain economic recovery — China will extend two credit policy tools for its smallest businesses into next year, as it tries to consolidate its economic recovery and counter external changes.
- China’s carmakers are beating internet start-ups in the battle for supremacy in the world’s largest electric vehicle market — Beijing’s encouragement has fired up China’s new energy vehicle sector, pitting start-up electric vehicle (EV) makers against its more established conventional carmakers.
- China food security: Beijing calls for biotech breakthrough to improve seed industry — Some 3,000 years after Chinese farmers domesticated soybeans, the government is calling for another biotechnology breakthrough in the seed industry to improve food security.
- Oppo launches first overseas 5G lab in India, a country still waiting for mass roll-out of the next generation mobile network — Chinese smartphone maker Oppo has launched a 5G innovation lab in India, its first outside China, at a time when relations between New Delhi and Beijing have been in the doldrums after a violent border dispute earlier this year.
Bloomberg
- Hong Kong Sells Prime Residential Site for $1.5 Billion to Wharf — Hong Kong awarded a premium residential site to Wharf Development Ltd. for a higher-than-expected HK$12 billion ($1.5 billion), in a sign of early recovery for the city’s real estate market.
- Internet Freedom Will Be an Uphill Battle for Joe Biden — The U.S. and China pitch the rest of the world on very different visions of the web.
- China Pipeline Giant to Buy Kunlun Assets for $6.3 Billion — China’s pipeline network behemoth inked a $6.3 billion asset purchase in the latest step to bolster the nation’s energy security and break down market barriers. Kunlun shares surged on the news.
- Xiaomi’s Market Value Tops $100 Billion, Reaching 2018 IPO Goal — Xiaomi Corp. founder Lei Jun can finally rejoice after the Chinese smartphone maker’s market value swelled past the $100 billion mark, a figure his company fell far short of when it listed two years ago.
- U.S. Urges American Firms to Shun Chinese Data Service Companies — The Department of Homeland Security warned U.S. firms against using data services and equipment from firms linked to China because of cyber security and other risks.
- Trudeau Shuts Out China Again by Rejecting Arctic Gold Deal — Prime Minister Justin Trudeau’s government rejected a plan by China’s Shandong Gold Mining Co. to acquire a gold miner that operates in the Canadian Arctic, potentially inflaming a diplomatic feud.
- Vietnam Imposes as Much as 25.22% Tariffs on Steel From China — Vietnam will impose tariffs of between 4.43% and 25.22% on imports from 16 Chinese steel producers, according to a decision by the Ministry of Industry and Trade, describing the move as anti dumping.
- China Struggles to Keep the Lights On Amid Sky-High Demand — China’s roaring industrial rebound from the pandemic has an unforeseen consequence — the surge in power demand has left factories, office buildings and street lights in some areas straining under an electricity shortage.
- How China’s Top Chipmaker Can Evade Trump’s Newest Crackdown — Donald Trump’s latest headline-grabbing action against China is aimed at negating the Asian power’s push toward self-sufficiency in the $400 billion semiconductor industry.
- Chinese Robocar Maker Plans Hunt for Fresh Capital in New Year — Beijing Idriverplus Technology Co. plans a fresh fundraising round in the new year and may eye an initial public offering in China, founder Zhang Dezhao said.
- China Shouldn’t Withdraw Stimulus Rapidly, World Bank Warns — China should maintain accommodative monetary policy and avoid any “significant contraction” in fiscal policy next year to keep its economic recovery from the Covid-19 pandemic on track, according to the World Bank.
- China Regulators Intervene at Another Troubled Shadow Lender — Chinese authorities will move to strengthen management of the troubled Sichuan Trust Co. after its shareholders allegedly refused to return misappropriated funds, marking another instance where risks in the nation’s $3.2 trillion trust sector have forced regulators to step in.
- 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.
- Hong Kong Survived Many Doomsayers but 2020 and China Are Unravelling It — There have been many prophecies of doom for the free-wheeling former British colony but 2020 has imposed its own finality on a city like no other.
- Hong Kong’s Courts Are the Last Check on Beijing’s Growing Power — For decades, Jimmy Lai has embodied the spirit of defiance in Hong Kong. He fled Communist China at the age of 12 to work in a garment factory, launched a pro-democracy media empire after the 1989 Tiananmen Square crackdown and became one of the world’s best known critics of Beijing.
- Jack Ma’s Empire in Crisis After China Halts Ant Group IPO — While the sudden cancellation of his Ant Group IPO shocked many investors, Ma’s fall from grace had been years in the making.
- China’s Soy Imports to Top 100 Million Tons as U.S. Supply Jumps — China’s soybean imports will probably surge above 100 million tons in 2020-21, smashing the previous high set in the last marketing year, as local crushers ramp up capacity to take advantage of the country’s burgeoning demand for animal protein.
Reuters
- Unilever expands Burger King tie-up to launch plant-based Whopper in Latin America, China — Unilever Plc said on Wednesday it had expanded its partnership with Burger King to supply its plant-based meat patties for Whopper burgers at restaurants in Latin America, China and the Caribbean.
- China’s Ant cuts credit limits for some young Huabei users — China’s Ant Group is lowering borrowing limits for some young users of its Huabei virtual credit card product, the company said on Wednesday, a month after China suspended the fintech giant’s $37 billion public listing plan.
- Senators Cruz, Rubio warn Pacific ally on Chinese bid for undersea cable project — Prominent U.S. lawmakers warned a Pacific ally that China risked undermining the security of a sensitive undersea cable project if a cut-price, state-backed bid wins a tender process overseen by development agencies, a letter reviewed by Reuters shows.
- ‘Good riddance,’ China says as Germany leaves U.N. Security Council — Germany’s U.N. envoy, during his last scheduled U.N. Security Council meeting, appealed to China to free two detained Canadians for Christmas, prompting China’s deputy U.N. envoy to respond: “Out of the bottom of my heart: Good riddance.”
- 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.
- Exclusive: Venezuela resumes direct oil shipments to China despite U.S. sanctions — Venezuela has resumed direct shipments of oil to China after U.S. sanctions sent the trade underground for more than a year, according to Refinitiv Eikon vessel-tracking data and internal documents from state company Petroleos de Venezuela (PDVSA).
- China ‘mines’ ice from river to build frozen castles, pagoda — For more than 300 “ice miners” in Harbin, work begins in the numbing cold before dawn every day on the frozen Songhua, a broad river that winds its way through the northeastern Chinese city.
- Two lawmakers urge U.S. to further tighten restrictions on China’s SMIC — Two key Republican lawmakers on Tuesday urged the Trump administration to strengthen new rules adopted Friday aimed at preventing China’s biggest chipmaker SMIC from getting access to advanced U.S. technology.
- China visa centres in England close as new coronavirus variant spreads — China’s two visa-application centres in England said on Tuesday they would temporarily close as a new variant of the coronavirus spreads rapidly in Britain.
Xinhua
- Chinese tech company ECARX establishes EU headquarters in Sweden — ECARX, a Chinese company focusing on automotive intelligence and networking, announced Tuesday the establishment of its EU headquarters and product development center in Sweden.
- China’s central bank injects liquidity into market — China’s central bank on Wednesday conducted 110 billion yuan (about 16.78 billion U.S. dollars) of reverse repos to maintain stable liquidity in the banking system.
- China’s central bank issues 10 bln yuan of bills in Hong Kong — China’s central bank on Wednesday issued 10 billion yuan (about 1.53 billion U.S. dollars) worth of bills in Hong Kong.
- Beijing-Shanghai high-speed trains introduce flexible pricing — Starting Wednesday, high-speed trains running between Beijing and Shanghai with a speed range from 300 kph to 350 kph will have flexible ticket prices.
- World’s first 350 km/h freight train off assembly line — Photo taken on Nov. 30, 2020 shows a bullet freight train with a maximum operational speed of 350 km per hour on trial. A bullet freight train with a maximum operational speed of 350 km per hour was rolled out in Tangshan, north China’s Hebei Province, on Wednesday morning. Delivered by Chinese train maker CRRC Tangshan Co., Ltd., it is the first freight train in the world to reach the 350 km/h speed threshold, according to the company.
- Big data indicates recovery in China’s nighttime economy — Nighttime consumption in China has almost returned to last year’s level, an index based on big data has shown.
- First cargo train from Turkey to China reaches Xi’an — The first cargo train from Turkey to China has arrived in the northwestern Chinese city of Xi’an. All goods completed customs clearance, according to local authorities.
- China adjusts tariffs on imported commodities — China will adjust import tariffs on a range of products starting Jan. 1, 2021 to support fostering the new development paradigm and promoting high-quality development, according to the Customs Tariff Commission of the State Council.
- First cargo train from Turkey to China reaches Xi’an — The first cargo train from Turkey to China has arrived in the northwestern Chinese city of Xi’an, with all goods finishing customs clearance, according to local authorities.
- China’s benchmark power coal price edges up — China’s benchmark power coal price rose slightly during the past week.
- Chinese shares close higher on Wednesday — Chinese stocks closed higher on Wednesday, with the benchmark Shanghai Composite Index up 0.76 percent to 3,382.32 points.
- Chinese shares open higher Wednesday — Chinese stocks opened higher Wednesday, with the benchmark Shanghai Composite Index up 0.17 percent to open at 3,362.47 points.
Other Publications
- CNBC: China extends stimulus measures for small businesses — a sign the recovery is not yet complete — China’s top executive body, the State Council, announced late Tuesday that small and micro-sized enterprises can defer loan repayments past the first quarter of next year as needed.
- Foreign Policy: Tech Giants Are Giving China A Vital Edge in Espionage — U.S. officials say private Chinese firms have been enlisted to process stolen data for their country’s spy agencies.
- Beijing Review: China considers anti-food-waste law to ensure food security — Chinese lawmakers on December 22 began deliberating a draft law on preventing food waste to ensure food security. The 32-article draft was submitted to the ongoing session of the Standing Committee of the National People’s Congress for its first reading.
- Nikkei Asian Review: Resist China and stop abuses: US aid to Cambodia has conditions — US budget bill includes $85 million for nation if it complies with terms.
- The Diplomat: How Will China Manage the Post-Pandemic Economic Recovery? — Interpreting Beijing’s 2020 Central Economic Work Conference offers hints of the path ahead.
