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
- Biden Plans to Build a Grand Alliance to Counter China. It Won’t Be Easy. — The president-elect wants a coalition of democracies to pressure Beijing to curtail what he sees as unfair practices; Xi Jinping has been thinking along the same lines.
- NYSE Reverses Course Again, Will Delist Three Chinese Telecom Stocks — New guidance from Treasury Department spurs exchange to delist shares to comply with Trump executive order.
- Trump’s Ban on Chinese Apps Falls to Biden to Execute—or Not — Restriction on use of Alipay, WeChat Pay and others wouldn’t kick in until February.
- U.S. Weighs Adding Alibaba, Tencent to China Stock Ban — Agencies debate impact on U.S. financial markets of potential restrictions.
The Financial Times
- Chinese officials and media mock storming of Capitol Hill — Beijing compares chaos in Washington to Hong Kong protests as US allies condemn unrest.
- Alibaba and Tencent shares drop on US investor blacklist report — Trump administration block on US investments into Chinese tech groups could inflame tensions.
- New York Stock Exchange reverses course again on China delistings — Exchange operator will drop 3 Chinese telecoms after criticism from US Treasury for initial backtrack.
The New York Times
- Will the Sudden E.U.-China Deal Damage Relations With Biden? — Pushed by German Chancellor Merkel of Germany near the end of her tenure, the trade deal may complicate agreement on an effective trans-Atlantic policy toward China.
- China Exerts a Heavier Hand in Hong Kong With Mass Arrests — The central Chinese government, which once wielded its power over Hong Kong with a degree of discretion, has signaled its determination to openly impose its will on the city.
Caixin
- China’s Central Bank Lays Out Top Tasks to Tackle in 2021 — PBOC puts bond market reform, green finance and fintech regulation on its list of priorities along with continued lending support for small companies.
- Ex-Boss of China’s Biggest Policy Bank Sentenced to Life for Bribery — Former China Development Bank Chairman Hu Huaibang convicted of accepting $13.2 million in bribes over 10 years.
- Citic Securities Wins Approval to Sell $1.2 Billion of Bonds — China’s largest brokerage last year obtained clearance to raise a similar amount via subordinated debt and corporate bonds.
- China’s Corporate Bond Underwriting Fee Sets Record Low — Despite regulatory efforts to ban price wars, brokerages drive bids for fees as low as 0.007% for giant state-owned borrowers, barely covering costs.
- China’s Top Chipmaker Stops Trading Shares in U.S. After Blacklisting — SMIC no longer welcome on over-the-counter market after order banning investment in firms allegedly linked to Chinese military.
- China’s Seaborne Coal Imports Fell 15% in 2020 — Shipments from Indonesia and Australia both plummeted, but Russia-sourced supplies saw a notable increase.
- China’s Homegrown Electric Vehicle Makers Sales Surge While Tesla Cuts Prices — The three U.S.-listed Chinese electric car startups – Nio, Xpeng and Li Auto – all reported robust gains in deliveries for December, in a demonstration of consumers’ growing demand for homegrown new energy vehicles. The positive figures come as their American rival Tesla cuts prices for some models sold in the country in an attempt to increase its market share.
- Huawei Expected to Fall to Seventh Spot in Global Smartphone Production as U.S. Sanctions Bite — Huawei may soon rank as the world’s seventh-largest smartphone maker as measured by production volume this year, a dramatic fall from third place last year. The drop comes as the Chinese tech giant reels from the fallout of a U.S. campaign aimed at cutting off its access to handset chips made with American technology.
- KFC Rival in China Dicos Adds Faux Eggs to Its Menus — Dicos, one of China’s largest fast food chains, has expanded its range of vegan plant-based options on the menu, as major restaurant chains across the country race to bring artificial meat products to local consumers.
South China Morning Post
- China jails former China Development Bank chief Hu Huaibang for life for graft — A former top official of China’s key policy bank was sentenced to life in prison for taking the equivalent of more than US$13 million in bribes, state media reported on Thursday.
- China cancels Democratic Republic of Congo loans as it joins belt and road — China has cancelled the Democratic Republic of Congo’s interest-free loans that matured in 2020 and promised to fund infrastructure projects as the Central African nation joined the Belt and Road Initiative.
- China one of many gripes for Trump supporters in Capitol siege — For Fredy Burgos, it was the danger of socialism ravaging America. For Jesus Garcia, it was jobs. For Tina Marie Mann, it was about protecting the US from godless heathens.
- China’s fintech platforms face increased scrutiny amid broader regulatory efforts to rein in financial risks — China’s central bank says it will prioritise financial stability this year, vowing to strengthen its regulatory muscle and to put all financial activities under government supervision, in an effort to eliminate risks.
- China mocks US ‘double standards’ over Capitol chaos vs Hong Kong — A wave of mockery erupted in China over the storming of the US Capitol on Thursday, with Chinese media and commenters comparing it with anti-government protests in Hong Kong and accusing Washington of hypocrisy.
- US ambassador to United Nations will visit Taiwan, Mike Pompeo says — The US ambassador to the United Nations will visit Taiwan, Secretary of State Mike Pompeo said on Thursday, in a move that is certain to rile Beijing.
- China-US tech rivalry: Beijing plans to restructure national labs, boost investment in scientific research — China is planning to realign hundreds of “state key laboratories” with the country’s technology priorities and articulate a 10-year programme to boost spending on fundamental science research, as Beijing rolls up its sleeves in competing for tech dominance against the United States.
- China slaps new curbs on developers to tame runaway home prices by hitting them where they hurt most: bank loans — China’s financial regulators have slapped their most draconian rules yet on the 16 trillion yuan (US$2.5 trillion) real estate industry, hitting the country’s highly leveraged developers where they hurt most: their bank loans.
- How Donald Trump has targeted Chinese companies with executive orders, sanctions — The ongoing saga of the New York Stock Exchange (NYSE) moving to delist three of China’s biggest telecommunications companies is the latest reminder of the rapidly shifting ground Chinese companies have regularly found themselves on as Sino-American relations have soured.
- China’s food security requires local Communist Party members to step up, new agricultural minister says — Beijing must hold provincial Communist Party secretaries and governors personally responsible for adequate grain output, the country’s new agricultural minister said this week, calling this “the most important and necessary step” in ensuring China’s food security.
- China’s home appliance manufacturers left cursing export orders as costs rise, profits vanish amid yuan rally — Faced with a perfect storm of a strong yuan and the rising cost of raw materials, China’s home appliance manufacturers are fearful of booming exports orders caused by the coronavirus as profits decline, leaving some on the verge of bankruptcy.
- With businesses hammered by social-distancing measures, Hong Kong unemployment rate to rise again: government economist — Hong Kong’s unemployment rate, already at a 16-year high, will get worse before it gets better, a government economist predicted on Thursday, though further relief measures for industries slammed by the Covid-19 pandemic were on the way in the administration’s annual budget.
- Huawei spin-off Honor working with Qualcomm on 5G smartphones, report says — Honor, the budget smartphone unit sold by Huawei Technologies Co in November as part of its response to US blacklisting, is working with American chip supplier Qualcomm on 5G devices, according to Chinese media.
- China Telecom launches quantum encrypted phone calls on smartphones in a new pilot programme — Some users of China Telecom, one of the country’s three state-owned telecoms companies, can now make quantum encrypted phone calls using a special SIM card and smartphone app, the company announced last week.
- Alibaba antitrust probe presents new challenges for China’s regulators 12 years after implementation of anti-monopoly law — With all eyes on the antitrust investigation into Chinese e-commerce giant Alibaba Group Holding, Beijing’s record to date in tackling alleged monopolistic behaviour by big business may not shed any light on how the case may end.
Bloomberg
- Wong Questioned, US Lawyer Released in Hong Kong Crackdown — Hong Kong (AP) — Jailed Hong Kong pro-democracy activist Joshua Wong was arrested on a new charge under the national security law on Thursday while an American rights lawyer who was detained in a sweeping crackdown was granted bail.
- China Sentences Ex-State Bank Chief to Life on Bribery — China sentenced Hu Huaibang, a former chairman of the nation’s biggest policy bank, to life imprisonment on charges of corruption, the second harsh punishment doled out this week in a sign President Xi Jinping is escalating a campaign to crack down on lawbreaking state officials.
- Soaring Shipping Costs Could Curb China’s Export Boom — Global demand for Chinese goods has been so strong recently it’s creating a shortage of containers and driving up shipping costs, potentially impeding the nation’s exports in coming months.
- China Uses Capitol Violence to Cast Narrative of U.S. Hypocrisy — China seized upon the chaos at the U.S. Capitol as an opportunity to drive home a narrative of American hypocrisy, with state media casting the incident as “karma” and “retribution” for Washington’s support of global protest movements including those in Hong Kong.
- Alibaba, Tencent Shares Drop as U.S. Weighs Investment Ban — Alibaba Group Holding Ltd. and Tencent Holdings Ltd. led a technology stocks selloff as the Trump administration considers barring investments in China’s two most valuable companies.
- NYSE Reverses Again With Plan to Delist China Telecom Firms — The New York Stock Exchange is proceeding with a plan to delist three major Chinese telecommunications firms, its second about-face this week, after U.S. Treasury Secretary Steven Mnuchin disagreed with its shock decision to give the companies a reprieve.
- China’s Baidu Said to Pick CLSA, Goldman for Hong Kong Listing — Chinese search engine giant Baidu Inc. has selected CLSA Ltd. and Goldman Sachs Group Inc. for its planned second listing in Hong Kong, which could raise at least $3.5 billion, according to people familiar with the matter.
- Beijing Sends Biden Stark Message with Hong Kong Crackdown — China’s unprecedented arrest of dozens of leading Hong Kong opposition figures illustrates the depth of Joe Biden’s challenges with Beijing. By the time he becomes U.S. president, there might not be much democracy left to save in the Asian financial hub.
- Live Pigs Are Coming to China’s Giant Commodities Futures Market — China will begin trading its hotly anticipated hog futures this week as the industry looks for a safeguard against wild swings triggered by one of the world’s worst animal disease outbreaks.
- Tesla Prolongs Model Y China Delivery Times, Citing Order Intake — Tesla Inc. customers in China wanting to get the new locally made Model Y are facing a longer wait, signaling strong initial demand for the Shanghai-built SUV.
- Xi’s Push Against Jack Ma Sparks New Threat for China Tech — Chinese tech companies did a pretty good job convincing global investors that they operated independently from the Communist Party. Now, Jack Ma has become a case study for the firms’ biggest skeptics.
- China’s Regulators Turn to Communist-style Campaigns to Keep Things in Line. — Staffing and new laws aren’t yet up to speed with the country’s business growth. To cope, antitrust regulators turn to time-honored Communist party strategies for keeping things in line.
- Hong Kong Arrests Are Next Big Test Since National Security Law — The city’s democratic legacy — and ultimately its business —will be tested by a roundup of opposition politicians.
- China ADRs Sink on Report U.S. Eyeing Alibaba, Tencent Bans — Alibaba Group Holding Ltd and Tencent Holdings Ltd. tumbled, pulling down other Chinese stocks that trade in the U.S. after a report the U.S. is considering adding the two internet heavyweights to the China stock ban that has whipsawed some Asian-based companies this week.
- China Wants to Build a $306 Billion Used-Car Market — China, intent on boosting domestic consumption, wants to double the value of secondhand vehicle sales by 2025.
- Treasury Names Three Chinese Telecoms That Exchanges Must Delist — The Treasury Department issued fresh instructions to markets to cut off U.S investment in companies tied to China’s military, explicitly naming three telecommunications firms that exchanges and indexes must delist by the end of the year.
Reuters
- NYSE to delist three Chinese telecoms in dizzying about-face — (Reuters) -The New York Stock Exchange said on Wednesday it will delist three Chinese telecom companies, confirming its latest U-turn on the matter a day after U.S. Treasury Secretary Steve Mnuchin told the NYSE chief he disagreed with an earlier decision to reverse the delistings.
- China central bank reduces leeway for firms to borrow abroad — China’s central bank said on Thursday it had tightened the way it assesses cross-border financing risks to make it harder for domestic firms to raise funds in overseas markets.
- Chinese web firms ‘bullying’ customers with data, algorithms – consumer watchdog — Chinese internet companies have been violating customers’ rights by misusing personal data and “bullying” people into purchases and promotions, a government-backed consumer association said on Thursday.
- China Dec FX reserves rise as economic recovery gathers pace — China’s foreign currency reserves rose more than expected to the highest in more than 4-1/2 years in December, official data showed on Thursday, as the country’s economic recovery boosted the yuan against a weakening dollar.
- Top China adviser among White House resignations after Capitol violence — White House deputy national security adviser Matt Pottinger has resigned, joining a number of officials who are leaving the administration of President Donald Trump following the storming of Capitol Hill by his supporters.
- Factbox: Trump administration measures against Chinese companies — Outgoing U.S. President Donald Trump has toughened his stance towards Beijing in the final months of his presidency with a slew of measures targeting Chinese companies.
- U.S. considering adding Alibaba, Tencent to China investment ban -sources — WASHINGTON/SHANGHAI (Reuters) -The Trump administration is considering adding tech giants Alibaba and Tencent to a blacklist of firms allegedly owned or controlled by the Chinese military, two people familiar with the matter said on Wednesday.
- China says will take necessary measures to safeguard companies’ rights and interests — China said on Thursday that it would take necessary measures to safeguard companies’ rights and interests in response to the United States considering adding Alibaba and Tencent to a China stock ban.
- Breakingviews – A big Chinese backer would be roll of dice for MGM — There’s a new gamble worth taking for MGM Resorts International. One of its Asian investors, Snow Lake, wants the U.S. casino operator to sell a fifth of its $6 billion Macau business to a Chinese partner. Although it would complicate deals at home and elsewhere, the idea has plenty of merit.
- China draws comparison between storming of U.S. Capitol, HK protests — China drew a comparison on Thursday between the storming of the U.S. Capitol by supporters of President Donald Trump and last year’s often-violent pro-democracy protests in Hong Kong, but noted that no one had died when demonstrators took over the legislature of the China-ruled city.
- Pompeo angers China with Hong Kong sanctions threat — Washington may sanction those involved in the arrest of over 50 people in Hong Kong and will send the U.S. ambassador to the United Nations to visit Taiwan, Secretary of State Mike Pompeo said, drawing anger and the threat of retaliation from Beijing.
- China says U.S. will pay ‘heavy price’ for interference — China said on Thursday that the United States will pay a “heavy price” for its wrongdoing, after U.S. Secretary of State Mike Pompeo said it may sanction those involved in Hong Kong arrests and that the U.S.’ U.N. ambassador would visit Taiwan.
- Toyota’s sales in China rise 11% in 2020 even as pandemic hits market — BEIJING (Reuters) -Japanese automaker Toyota Motor Corp said on Thursday it sold 1.8 million vehicles last year in China, up 11% from a year earlier, narrowing the gap with Volkswagen AG and General Motors CO in the world’s biggest car market.
- Investment deal expected to bolster European dealmaking in China — European companies are expected to hunt for assets in China, mainly in insurance, healthcare and automobile sectors, after the world’s second-largest economy and the European Union agreed to an investment deal last month, lawyers and bankers say.
- Australia urges China to give access to WHO coronavirus experts ‘without delay’ — China should give access to World Health Organization (WHO) officials investigating the origins of COVID-19 “without delay”, Australia’s Foreign Minister Marise Payne said on Thursday.
- S&P Dow Jones to remove ADRs of Chinese telecom companies after NYSE decision — S&P Dow Jones Indices said on Wednesday it will remove the American Depositary Receipts of three Chinese telecom companies, China Mobile Ltd, China Telecom Corporation Ltd and China Unicom (Hong Kong) Ltd, from its benchmarks.
- U.S. to urge firms comply with China investment ban in new guidance, sources say — The U.S. State Department plans to release as soon as Wednesday a fact sheet urging U.S. investors to comply with an executive order banning investments in alleged Chinese military companies, according to three people familiar with the matter and a copy of the document seen by Reuters.
- Snow Lake urges MGM Resorts International to sell 20% of China business – letter — (Reuters) -Investment firm Snow Lake Capital on Wednesday urged MGM Resorts International to sell 20% of its China business to a strategic partner, calling it a “win-win transaction” for all.
- Trump administration mulls adding Alibaba, Tencent to blacklist of Chinese military cos-sources — The Trump administration is considering adding China’s retail giant Alibaba and Tencent to a blacklist of Chinese companies that are allegedly owned or controlled by the Chinese military, two people familiar with the matter said.
- Britain’s M&S backs call to stop forced labour in China’s Xinjiang — LONDON (Thomson Reuters Foundation) – British retailer Marks & Spencer on Wednesday became one of the first major brands to back a drive to stop forced labour in cotton and garment sourcing from China’s Xinjiang region.
- China plays down WHO concern about delay in coronavirus team’s trip — China played down on Wednesday World Health Organization (WHO) concern about a delay in authorisation for a visit by team of experts looking into the origins of the novel coronavirus, saying arrangements were being worked out.
- UK rebukes China for ‘grievous attack’ on Hong Kong’s rights — Britain on Wednesday rebuked China for the mass arrest of politicians and activists in Hong Kong which it said was a grievous attack on the rights of the former colony.
Xinhua
- Volvo Cars reports strong sales in H2 driven by Chinese market — Driven mainly by the Chinese market, Volvo Cars on Thursday reported the strongest second-half-year sales in the company’s history in 2020, as fast-growing demand for its electrified cars boosted the company’s recovery from the COVID-19 pandemic’s impact.
- FAW-Volkswagen sees strong car sales in 2020 — FAW-Volkswagen Automobile Co., Ltd., a passenger car joint venture between China FAW Group Co., Ltd. and Volkswagen AG, reported strong annual auto sales in 2020, the company said.
- U.S.-listed Chinese firms trade mostly lower — U.S.-listed Chinese companies traded mostly lower on Wednesday with nine of the top 10 stocks by weight in the S&P U.S. Listed China 50 index ending the day on a downbeat note.
Other Publications
- SpaceNews: China gears up for space station, cargo and crewed mission launches — The China Academy of Launch Vehicle Technology (CALT) is finalizing work on rockets which will launch the first space station module, a cargo and refueling craft and a crewed mission.
- MorningStar: China’s Forex Reserves Rose for Second Straight Month in December — China’s foreign-exchange reserves rose for the second straight month in December amid eased capital outflow pressure.
