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 Powers Ahead While the Rest of the World Reels — China is the only major economy expected to report growth for 2020, helping it close the gap with the U.S. Lifted by its quick recovery from Covid-19, it has also expanded its role in global trade and shored up its position as the world’s factory floor.
- China Denies Entry to Two Members of WHO Covid-19 Mission After Failed Screenings — Members are held up in Singapore after testing positive for Covid-19 antibodies.
- China Exports Boom to Record Year, While Covid-19 Ravages Global Economy — Strong export momentum and the industrial recovery that underpinned it form a pillar of country’s rebound.
- U.S. Bans Cotton, Tomato Imports From China’s Xinjiang Region — Move broadens administration effort to address allegations of forced labor.
- Americans Won’t Be Banned From Investing in Alibaba, Tencent and Baidu — Nine other Chinese companies will be added to Pentagon’s Chinese military companies list.
- Chinese Investors Pour Billions Into Stocks on U.S. Blacklist — Buyers using the Stock Connect trading link have snapped up the equivalent of a net $15.8 billion in Hong Kong shares this year.
- Countries Press On With Chinese Covid-19 Vaccine Despite Efficacy Questions — Indonesia, the Philippines and Turkey plan to use Sinovac inoculation despite disappointing trial in Brazil.
- TSMC to Spend Up to Record $28 billion in Advanced Chips, Capacity — The world’s biggest contract chip maker plans to boost capex by at least 47% in 2021.
The Financial Times
- Hong Kong internet provider blocks pro-democracy website — Move raises fears Beijing will extend ‘Great Firewall of China’ to financial hub.
- The China challenge — In links between domestic and global economy, big is beautiful.
- WHO team arrives in Wuhan to probe origins of coronavirus — Virologists land in China a week later than planned after Beijing delayed approving visas.
- China trade surplus breaks record monthly level — Demand for medical products during coronavirus pandemic boosts exports by 18.1% in December.
- Chinese tech groups set to boost country’s listless CDR market — Lenovo and Megvii to sell shares via system launched by Beijing to fanfare three years ago.
- Alibaba, Tencent and Baidu spared from US investor blacklist — Treasury secretary sees off China hawks in dispute over whether to ban investment in tech groups.
The New York Times
- China Takes the Lead in Demand for Swiss Watches — As the pandemic continues to erode revenue, the Swiss industry scrambles to mine its new No. 1 export market.
- W.H.O. Team in Wuhan to Trace Coronavirus — Beijing has repeatedly impeded the global inquiry into the emergence of the coronavirus. Two scientists on the team remained in Singapore after testing positive for antibodies.
- U.S. Bans All Cotton and Tomatoes From Xinjiang Region of China — The sweeping ban, which was based on concerns about forced labor in the region, could compel companies to reorganize their multinational supply chains.
Caixin
- State Street Reverses Decision to Shun Blacklisted Chinese Companies — Firm that runs Hong Kong’s largest ETF did not explain why it is resuming investment in companies the U.S. accused of having linked to the Chinese military.
- China to Score Consumer Finance Firms for Better Oversight — Banking regulator introduces system to rate lenders on governance, risk, capital and information technology.
- In Depth: Pushback Against China Tech Giants Grows With Accusation of Algorithmic ‘Bullying’ — Consumer rights group says use of personal data-based algorithms squeezes consumers.
- Chip Shortage Will Continue to Disrupt Auto Production in China, Industry Warns — Vehicle output at Volkswagen and Honda’s Chinese joint-ventures hit by semiconductor supply crunch.
- Secret Child Claim Rocks Case of Poisoned Gaming Magnate — Suspected poisoning death of Yoozoo Chairman Lin Qi at the hands of a colleague has captivated China.
- China Carries On Antitrust Drive Targeting Data Monopolies — Chief of State Administration for Market Regulation vows to block tech titans from using their data advantages to disrupt competition.
- Jordan Slams Dunk on Copycat Chinese Sportswear Brand Forcing Them to Change Their Name — Chinese sportswear maker Qiaodan Sports has changed its name to Zhongqiao Sports two weeks after a Shanghai court ruled in favor of legendary basketball player Michael Jordan in a protracted trademark case related to the company’s unauthorized use of the Chinese characters that make up Jordan’s Chinese name, Xinhua News Agency reported on Wednesday.
- EHang Pioneers Self-Flying Drones for Tourists in Greater Bay Area City — Visitors to the gardenlike coastal city of Zhuhai could soon be able to view the “Chinese Riviera” from a bird’s perspective, as EHang pioneers the use of self-flying people-movers for sightseeing trips in China.
- Chinese PE Fund Manager CICC Capital Secures $649m Second Close of Biomedicine Fund — CICC Capital, the private equity (PE) fund management platform of Hong Kong-listed investment bank CICC, has reached the second closing of its biomedicine fund at over 4.2 billion yuan ($648.7 million), said the firm in a WeChat post on Monday.
South China Morning Post
- China’s trade surplus hits record in December to end year in which it exported 40 masks per person around world — China ended 2020 with exceptionally strong exports and a historically large foreign trade surplus, despite being the first country hit by the coronavirus crisis, and in the face of international criticism of its mercantilist trade practices.
- China looks to boost ties with Philippines ahead of Biden inauguration — Chinese Foreign Minister Wang Yi will be looking to reinforce Beijing’s ties with Manila during a two-day visit to the Philippines this week, observers say.
- China reports first Covid-19 death in 8 months as thousands of Hebei residents are evacuated — China has reported its first Covid-19 death since May as its northern province of Hebei battles an outbreak that also prompted the evacuation of thousands of residents of high-risk areas to a quarantine facility.
- No appeal for China’s jailed coronavirus citizen journalist Zhang Zhan — Citizen journalist Zhang Zhan has given up her right to appeal against the four-year prison term imposed for her reporting from the central Chinese city of Wuhan in the early days of the coronavirus pandemic, according to legal sources.
- US-China tensions: Taiwan a ‘model for the world’, American envoy Kelly Craft says — Taiwan is in “many ways a model for the world”, America’s ambassador to the United Nations said on Twitter on Thursday following her conversation with the president of the self-ruled island.
- China’s Xi Jinping talks of ‘common prosperity’ as the rich get richer, with little indication of how it will reduce inequality — Beijing’s next major economic target after poverty alleviation could be reducing income inequality, based on officials’ speeches and government documents published over the past few weeks.
- IPO-prospect Kuaishou has a big issue – how to bag a profit from the 300 million who use its short video app — Kuaishou, the Chinese short video app operator set for an IPO in Hong Kong as early as this month, has a big issue – how to translate its 300 million daily active users into profits.
- Reform has unleashed Chinese drugs innovation boom, though some pharma firms may not survive under intense price pressure, industry leaders say — China’s drug developers are expected to ride on a surge in the size of the domestic market driven by policy reform, though intense price pressure will see off contenders failing to innovate, according to speakers at an industry conference.
- Debt at China’s state-owned firms in spotlight as credit tightening raises default pressure — China’s big state-owned firms are likely to face growing pressure to make payments on their debt this year as Beijing moves to tighten credit growth, government researchers and analysts said.
- China’s top regulator launches probe into e-commerce platform Vipshop over alleged ‘improper competition behaviour’ — China’s top market regulator has launched an investigation into e-commerce platform Vipshop Holdings over “alleged improper competition behaviour”, as Beijing continues to tighten antitrust regulation in the country’s tech sector.
- China trade: export surge continued in December, pushing surplus to record high — China’s exports continued to surge in December, data released by its customs agency on Thursday showed.
- Buying an electronic lock? Hong Kong’s Consumer Council suggests you check your warranty carefully — Hong Kong’s consumer watchdog has warned city residents to be on guard when installing keyless electronic locks for their homes – at least if they do not want to end up locked outside their own flats.
- Hong Kong pushes WTO to form panel over ‘Made-in-China’ labelling row after ‘disappointing’ US response — Hong Kong has taken further action against the United States at the World Trade Organization in its battle to undo Washington’s unilateral decision to make the city tag its exports “Made in China”.
- Hong Kong Covid-19 fourth wave: vast majority of disinfectant products ‘less effective, far pricier’ than traditional virus-killing methods — Hong Kong’s consumer watchdog has found that 80 per cent of disinfectant products proving popular during the Covid-19 pandemic are less effective in killing bacteria and viruses than the far-cheaper, traditional method of using diluted bleach.
- Guangdong authority orders Tencent, Xpeng, other tech firms to amend apps over cybersecurity concerns — The communications authority in southern Guangdong province has cracked down on the operation of 209 apps, including seven run by internet giant Tencent Holdings and one from electric car maker Xpeng, over privacy and security concerns amid China’s renewed drive against misuse of consumer data.
Bloomberg
- The Ever Longer Arm of China’s Communist Party — Xi Jinping has “drastically extended the reach of the Chinese state into the economy and Chinese firms,” a report says.
- Russia May Be First to Register CanSino Vaccine Outside of China — CanSino Biologics Inc.’s Russian partner expects local authorities to register the Chinese company’s Covid-19 vaccine soon, potentially marking the first approval for use of the inoculation outside of China.
- Two WHO Members Denied Entry to China on Failed Virus Tests — The World Health Organization’s mission to trace the origins of Covid-19 got off to a rocky start on Thursday, with two members of the 15-person delegation denied entry to China after failing to clear health-screening procedures.
- ByteDance’s Chief Rival Said to Win HKEX Nod for $5 Billion IPO — Kuaishou Technology, the main rival to ByteDance Ltd., has received approval from the Hong Kong stock exchange for an initial public offering of about $5 billion, according to people familiar with the matter, paving the way for one of the city’s biggest listings of the year.
- U.S. Is Said to Drop Plan for Alibaba, Tencent Investing Ban — U.S. officials deliberated but ultimately decided against banning American investment in Alibaba Group Holding Ltd. and Tencent Holdings Ltd., a person familiar with the discussions said, removing a cloud of uncertainty over Asia’s two biggest corporations.
- UBS Analysts Say Evergrande May Tumble in Dramatic Sell Call — China Evergrande Group was downgraded to sell by UBS Group AG analysts, who said shares of the world’s most indebted developer may lose more than half their value.
- Xi Asks Starbucks’s Schultz for Help Mending U.S.-China Ties — President Xi Jinping called on Starbucks Corp. to help improve China-U.S. ties, striking a business-friendly tone as the Biden administration prepares to take over in Washington.
- Hong Kong Internet Firm Blocked Website Over New Security Law — A Hong Kong internet provider said it’s blocked access to a website in order to comply with the city’s new national security law, in a case that’s fueling concerns about the future of free speech in the former British colony as China tightens control.
- Chinese Stocks Fall Most Since September as Investors Shift Bets — China’s CSI 300 Index fell the most in four months Thursday, pulling back from a 13-year high, as investors rotated into some tech stocks that have lagged the broader market’s recent strength.
- China Ends 2020 With Record Trade Surplus as Pandemic Goods Soar — China’s export boom continued into December, pushing the trade surplus to a record high in the month and bolstering what is already the world’s best-performing major economy.
- China Names New Chief Trade Negotiator Before Biden Takes Office — China has appointed a veteran of trade talks as the Ministry of Commerce’s top negotiator, filling a ministerial-level position that was vacant for two years, as the country prepares for the incoming Biden administration.
- China Made 40 Face Masks for Every Person Around The World — China’s export dominance during the coronavirus pandemic is best reflected by the item that’s become essential in protecting against the virus: face masks.
- China Hitting the Money Accelerator Will Fire Markets — Beijing looks to be easing liquidity. That’s great news for emerging stocks and commodity prices.
- Chinese Lab Adicon Said to Tap Khazanah, Mirae for Pre-IPO Funds — Adicon Clinical Laboratories Ltd., a Chinese lab operator backed by Carlyle Group Inc., is in talks with investors to raise a new round of funding before its planned initial public offering in Hong Kong, according to people familiar with the matter.
- China’s Momentum-Obsessed Traders Push Stocks Near 2007 High — As China’s stock benchmark trades near the highest level in 13 years and commands the loftiest valuations in five, the country’s investors keep throwing money at the same expensive stocks.
- The Ticking Debt Bomb in China’s $15 Trillion Bond Market — Investors in the world’s second largest bond market are facing a reality check.
- Trump Tries to Clarify China Divestment Order for Wall Street — The Trump administration took its latest stab on Wednesday at trying to ease confusion around its push to halt U.S. investment in companies that it says have ties to the Chinese military.
- Hong Kong’s Biggest ETF Resumes Buying Stocks Banned by U.S. — The largest exchange-traded fund tracking the Hang Seng Index will resume buying shares of Chinese companies included in a U.S. investment ban, marking a U-turn by State Street Corp. after it was criticized by Hong Kong’s former central bank chief.
- Alibaba’s Jumbo Bond Deal Goes Quiet With Ma Out of Sight — Investors are beginning to question whether Alibaba Group Holding Ltd. can pull off a jumbo dollar bond in coming weeks given the uncertainty around co-founder Jack Ma and the Trump administration’s crackdown on Chinese companies.
- U.S.-China Decoupling Raises Risks for European Firms — European businesses operating in China are facing rising costs and uncertainty as they grapple with economic decoupling between the U.S. and its Asian rival.
- Vietnam’s Currency Manipulator Label Could Mean Companies Face Tariffs — Many U.S. companies heeded Trump’s call to disentangle their supply chains from China. They may regret that decision.
- Take It From Tesla. The Road to an Apple Car Runs Through China. — A growing part of the electric and autonomous vehicle supply chain is in the mainland. Just ask Tesla.
- NASA Scientist Admits to Lying in China Trade Secrets Case — A senior NASA scientist admitted to lying to authorities about his participation in a program the U.S. says is designed to siphon intellectual property to China.
- No Sign of China’s Bond Quota as Government Looks to Curb Debt — China’s government has been slow to announce plans on special local bond sales this year, another sign that it’s seeking to rein in debt.
- China’s Huawei Develops Smart Roads That Talk to Driverless Cars — The abstract concept of connected vehicles becomes easier to grasp at a test site in eastern China.
- U.S. Bans Xinjiang Cotton Products, Tomatoes on Forced Labor — The U.S. will bar entry of all cotton products and tomatoes from China’s Xinjiang region, where it says Beijing is oppressing Muslim-minority Uighurs.
Reuters
- Hungary reaches deal to buy China’s Sinopharm vaccine, PM aide says — Hungary’s government said on Thursday it has reached a deal with China’s Sinopharm to buy its coronavirus vaccine, the country’s latest move to break away from Brussels as it tries to speed up inoculations to lift curbs on the economy.
- Trump administration shelves planned investment ban on Alibaba, Tencent, Baidu: sources — The Trump administration has scrapped plans to blacklist Chinese tech giants Alibaba, Tencent and Baidu, four people familiar with the matter said, providing a brief reprieve to Beijing’s top corporates amid a broader crackdown by Washington.
- ASML CEO sees U.S.-China trade antagonism outlasting Trump — ASML CEO Peter Wennink expects further antagonism between the United States and China over semiconductor technology, even as a new administration is set to take over in Washington, he told the Reuters Next conference on Thursday.
- Indonesia says spots Chinese research vessel in its waters, tracker off — A Chinese research vessel has been identified in the waters of Indonesia with its tracking system turned off, authorities said on Thursday, amid concerns in the region about Beijing’s maritime conduct.
- Analysis: Sanctions-hit Chinese firms surge as global buyers swoop in — Asian and European investors are snatching up discounted Chinese stocks hit by a U.S. investment ban, finding bargains as giant American funds bail out and shrugging off concerns that the sanctions could hurt the companies’ prospects.
- Chinese COVID-19 vaccine Ad5-Ncov shows high antibody levels at Russian trial -Ifax — Russian pharmaceutical company Petrovax on Thursday said 92.5% of Russian volunteers in trials of the Chinese Ad5-Ncov vaccine against COVID-19 had shown high levels of antibodies, the Interfax news agency reported.
- Uniqlo owner’s profits boosted by China, stay-at-home fashions — Clothing brand Uniqlo’s Japanese owner on Thursday said operating profits were higher than pre-pandemic levels in its first quarter, boosted by China’s resurgence and strong demand for stay-at-home jogging pants and other comfortable styles.
- China growth recovery seen quickening in fourth quarter on policy support: Reuters poll — China’s economic recovery likely accelerated in the fourth quarter, driven by stronger demand at home and abroad and policy stimulus which is expected to provide a solid boost into 2021.
- China’s export growth beats expectations on resilient global demand — Chinese exports grew more than expected in December, customs data showed on Thursday, as coronavirus disruptions around the world fuelled demand for Chinese goods even as a stronger yuan made shipments more expensive for overseas buyers.
- China urges U.S., others to stop wrongdoings after import ban on Xinjiang products — China urged the United States and other countries to immediately stop wrongdoings, the commerce ministry said on Thursday, after Washington announced an import ban on some imports from the Xinjiang region over forced labour allegations.
- Column: China’s commodity imports saved 2020, this year may be different: Russell — There is both a history lesson and a warning in the latest Chinese data on imports of major commodities.
- China COVID-19 cases surge to high in over 10 months; WHO team arrives — China reported its biggest jump in COVID-19 cases in more than 10 months as infections in northeastern Heilongjiang province nearly tripled, underscoring the growing threat ahead of a major national holiday when hundreds of millions of people usually travel.
- WHO’s COVID-19 probe team arrives in China’s Wuhan, state TV says — A global team of scientists led by the World Health Organization arrived in China’s central city of Wuhan, where COVID-19 first surfaced in late 2019, to investigate the origins of the pandemic, state television said on Thursday.
- Trump bolsters ban on U.S. investments in China — President Donald Trump has signed an order strengthening a November ban on U.S. investments in alleged Chinese military companies, the White House said on Wednesday, curbing Chinese access to U.S. capital markets days before he leaves office.
- S&P Dow Jones Indices to remove oil giant CNOOC due to sanctions — S&P Dow Jones Indices said late on Wednesday it will remove oil giant China National Offshore Oil Corp’s (CNOOC) securities due to U.S. sanctions.
- China’s Xi asks Starbucks’ Schultz to help promote U.S.-China cooperation: state media — Chinese President Xi Jinping encouraged Starbucks’ former chairman Howard Schultz and the coffee company to play an active role in promoting U.S.-China trade cooperation and bilateral ties, state media reported on Thursday.
- Chinese drone firm DJI builds team to work on self-driving tech: job posts, sources — China’s SZ DJI Technology Co, the world’s largest drone maker, is building an engineering team to work on self-driving technologies, according to job posts and people familiar with the company’s strategy.
- EU companies in China should ‘prepare for the worst’ in digital decoupling: report — Digital decoupling between China and the United States could severely impact EU businesses in China and they should “prepare for the worst” and may be forced into a costly separation of their international operations, European business groups said.
- U.S. bans imports of all cotton, tomato products from China’s Xinjiang region — The Trump administration announced an import ban on all cotton and tomato products from western China’s Xinjiang region on Wednesday over allegations that they are made with forced labor from detained Uighur Muslims.
- NASA scientist pleads guilty to lying about China ties — A senior NASA scientist pleaded guilty on Wednesday to lying about his ties to a program that encourages researchers to develop relationships with China in exchange for grants, the U.S. Department of Justice said on Wednesday.
- U.S. Chamber expects high-level Chinese visit early in Biden administration — The U.S. Chamber of Commerce sees “every indication” that a high-ranking delegation of Chinese officials will visit Washington early in the administration of President-elect Joe Biden, a top Chamber official said on Wednesday.
- UK must be vigilant about China role in infrastructure, says PM — Prime Minister Boris Johnson said on Wednesday Britain had to be vigilant about China’s involvement in the country’s critical infrastructure but added the government should not become Sinophobic.
- Philippines’ Duterte defends purchase of Chinese COVID-19 vaccine — Philippine President Rodrigo Duterte defended his government’s decision to purchase Chinese-made coronavirus vaccines, saying they are as good as the shots developed by the Americans and the Europeans.
- Human Rights Watch slams China’s ‘appalling year’ of violations — China had an “appalling year” for human rights in 2020, a leading advocacy group said on Wednesday, with a crackdown on dissent in Hong Kong, repression of Muslim Uighurs and the silencing of people reporting on the coronavirus outbreak.
Xinhua
- China to accelerate green packaging in courier services — China will make courier delivery services more accessible and convenient and speed up the transformation to green packaging, the State Post Bureau said Thursday.
- China’s ARJ21 jetliner to expand commercial operation in overseas market — China’s ARJ21 regional jetliner is expected to expand commercial operation in the overseas market, according to its developer Commercial Aircraft Corporation of China (COMAC).
- Geely, Foxconn team up for auto joint venture — Chinese automaker Zhejiang Geely Holding Group (Geely Holding) and Foxconn Technology Group (Foxconn) have signed a strategic cooperative agreement to establish a joint venture company providing original equipment manufacturer (OEM) production and comprehensive customized consulting services.
- China’s SMEs continue robust recovery — China’s small and medium-sized enterprises (SMEs) registered stable recovery in the fourth quarter of 2020 (Q4) as the country’s economy demonstrated strong resilience and vitality, said the country’s top economic planner.
- Chinese electric-car maker Zhiji Motor debuts smart NEVs — Zhiji Motor, a high-end smart electric-vehicle company in China, has debuted two smart new-energy vehicle (NEV) models in Shanghai.
- Chinese shares close lower Thursday — Chinese stocks closed lower Thursday, with the benchmark Shanghai Composite Index down 0.91 percent, at 3,565.90 points.
- China’s agricultural product wholesale prices edge up — The wholesale prices of China’s agricultural products edged up Thursday, according to the Ministry of Agriculture and Rural Affairs.
Other Publications
- Nikkei Asian Review: US must ‘puncture’ China’s Asian dominance, declassified plan says — Trump administration’s Indo-Pacific strategy vows to defend Taiwan.
- Economist: Beijing’s approach to business grows increasingly muscular — From Jack Ma to extraterritorial laws, the government is throwing its weight around.
- Foreign Policy: Biden Makes His First Bold Move on Asia — The appointment of Kurt Campbell as Biden’s right hand on Asia will supercharge the incoming administration’s policy to counter China.
