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, U.S. Trade Barbs at First High-Level Talks Under Biden — Blinken reads a list of Washington’s issues with Beijing, China delegation tells U.S. to examine its problems with racism.
- China to Restrict Tesla Usage by Military and State Personnel — People familiar with the effort cite concerns Tesla cars could be source of national security leaks.
- China Buys More Iranian and Venezuelan Oil, in a Test for Biden — Increased sales and higher prices are helping Tehran and Caracas resist U.S. pressure.
- India Beats China at Vaccine Diplomacy — By Sadanand Dhume. But New Delhi’s massive success is a function of collaboration with the West, not ‘self-reliance.’
- China’s Espionage Trial of Canadian Citizen Ends, Verdict Awaited — Michael Spavor is the first of two Canadians standing trial on spying charges; the cases are seen as retaliation for Canada’s arrest of a Huawei executive at the behest of the U.S.
- JPMorgan to Buy $410 Million Stake in Chinese Bank’s Wealth Business — The agreement marks the first time a Chinese bank has opened up its wealth-management subsidiary to a foreign strategic investor.
- Biden’s CIA Director Pick Is Approved by Senate — Veteran diplomat William J. Burns wins confirmation after Sen. Ted Cruz lifts a hold on nomination.
- Nike Gets Tripped Up by Shipping Woes — A global container shortage and congestion in U.S. ports delayed inventory by more than three weeks in latest quarter. North American revenue declined 11%, while revenue in Greater China grew 42%.
The Financial Times
- Two Canadians held in China over arrest of Huawei CFO go on trial — Diplomats denied access to hearing of men detained since 2018 under harsh conditions.
- US and China hurl accusations at start of Alaska meeting — Officials trade barbs over Hong Kong, Taiwan and Xinjiang in first high-level talks of Biden presidency.
- Taiwan’s #FreedomPineapple campaign gathers pace after China ban — In a few days, pineapple orders surpassed total cross-strait shipments in 2020.
- UK spy agencies push for curbs on Chinese ‘smart cities’ technology — Intelligence chiefs fear Beijing could use it for espionage or the collection of sensitive data.
- EU’s investment deal will give it limited inroads into China — European businesses should not expect a bonanza even if the treaty is ratified.
- Chinese economy: Beijing’s war on the credit boom — A campaign led by vice-premier Liu He to reduce the danger of uncontrolled lending could strangle the private sector.
The New York Times
- Mr. Biden, Enough With the Tough Talk on China — Modest measures can reverse the dangerous decay in relations.
- China’s Sharp Words in Alaska Signal its More Confident Posture — The Biden administration’s strategy to curb Beijing’s behavior faces a stiff challenge as China uses its economic, diplomatic and military might to deflect criticism.
- Michael Spavor, Canadian Accused of Spying, Stands Trial in China — The trial of Michael Spavor escalates China’s punitive campaign against Canada over the arrest of a top executive of Huawei.
- In First Talks, Dueling Accusations Set Testy Tone for U.S.-China Diplomacy — U.S. officials said the two days of discussions would continue, but accused the Chinese delegation of violating the format for meetings that had sought to find common ground between the superpowers.
- The U.S.-China Talks: A Meeting of Friends and Foes — What, exactly, are the political stakes? We asked our correspondent David Sanger for a rundown.
- China Punishes Microsoft’s LinkedIn Over Lax Censorship — Officials said the social network had failed to block objectionable political content, a sign of the sacrifices it must make to remain in the vast but difficult market.
- Canadians Kovrig and Spavor to Stand Trial in China: What We Know — Secrecy and politics will likely hang over the cases involving two Canadian men, who have been held largely in isolation for more than two years.
- North Korean Threat Forces Biden Into Balancing Act With China — Washington’s recent attempts to communicate with Pyongyang were rebuffed, leaving American officials to appeal to countries in the region to help pressure North Korea.
- As Biden and Xi Begin a Careful Dance, a New American Policy Takes Shape — Top administration officials will meet with their Chinese counterparts for the first time on Thursday as the United States shifts to a more competitive posture with Beijing.
Caixin
- Trust Companies Tap Green Finance Amid China’s Carbon Neutrality Push — State Grid unit raises $270 million in commercial paper and AVIC Trust sets up $7.7 million trust as world’s largest green finance market expands.
- Didi Revs Up Guangzhou Robotaxi Testing with Local Government Deal — The autonomous driving subsidiary of Didi Chuxing, the largest ride-hailing company in China, has signed an agreement to invest in the research and development of smart internet connected vehicles in Guangzhou, paving the way for the possible future commercial use of its robotaxis in the southern Chinese megacity.
- Tencent Eyes Cloud Gaming with Ubitus Investment — Chinese social media and gaming giant Tencent has participated in a new funding round of Tokyo-based cloud gaming technology and services provider Ubitus, augmenting its investment in cloud gaming that technically allows people to play games anywhere if they are connected to the internet.
South China Morning Post
- China to ‘tap policy brakes’ amid global commodity price rebound, but will look to ‘avoid a policy cliff’ — The run-up in commodity prices, sparked in part by China’s strong economic recovery from the coronavirus pandemic last year, is entering a new phase. Iron ore, copper and oil are among commodities recording steep price gains this year as abundant liquidity worldwide and the US$1.9 trillion stimulus plan in the United States buoy optimism over a robust global rebound.
- American Rescue Plan: China increasingly concerned by US economic policy after Fed maintains loose stance — Moves by the United States to maintain its loose monetary policy until at least the end of 2023 to support its economic recovery and labour market have reinforced concerns in Beijing as it tries to reduce the risk of domestic asset bubbles by gradually tapering off stimulus policies enacted last year.
Bloomberg
- Didi Is Said to Accelerate IPO Plans as Business Rebounds — Chinese ride-hailing giant Didi Chuxing Technology Co. is accelerating plans for an initial public offering to as early as next quarter to capitalize on a post-pandemic turnaround, people familiar with its plans said.
- Record Defaults Hit Weak Chinese Firms as Liquidity Tightens — It’s becoming clearer which parts of China’s corporate sector are most at risk of credit-market stress as Beijing pulls back liquidity: property firms, local government financing vehicles and energy producers.
- China Stocks Slump as Sino-U.S. Talks Show Gap Remains Wide — China’s stocks slumped, with the benchmark gauge capping its longest weekly losing streak since early 2016, after U.S. equities tumbled and high-level Sino-American talks in Alaska descended into bickering and recriminations.
- China’s Geely Plans New Electric-Car Brand to Take On Tesla — Chinese automaker Zhejiang Geely Holding Group Co. plans to launch a new brand of electric cars, according to people familiar with the matter, as the owner of Volvo seeks to become more competitive in a segment of the EV market dominated by Tesla Inc.
- Why Big Tech Should Worry: Next China — Alibaba, Tencent, ByteDance, Baidu and Didi — a panoply of big tech in China — have all been punished in recent months for anti-monopoly violations. The events of this past week suggest there’s more to come.
- Li Ka-shing’s CK Hutchison Sees First Profit Drop Since 2015 — CK Hutchison Holdings Ltd. posted its first annual profit decline since 2015, as the flagship firm of Hong Kong billionaire Li Ka-shing got battered by the coronavirus pandemic.
- Tuya Up After Second-Biggest 2021 U.S. IPO by Chinese Firm — Tuya Inc., a Chinese software company backed by New Enterprise Associates and Tencent Holdings Ltd., rose 19% in its trading debut after raising $915 million in a U.S. initial public offering priced above its marketed range.
Reuters
- FTSE Russell nudges China toward further market opening — FTSE Russell is in active talks with Chinese regulators about reform measures that could help increase the weighting of Chinese onshore shares in its global indexes, a senior executive told Reuters.
- Concerns over steel output in China’s Tangshan hit coke, iron ore prices — A notice circulating in China’s steel industry that threatens output cuts between 30% and 50% for pollution defaulters in the top steelmaking city of Tangshan spurred concerns on Friday over demand for raw materials, pushing down prices.
- Column: U.S. corn market unfazed by flurry of Chinese corn bookings — After a several-week hiatus, huge U.S. corn sales to China, which has recently become the largest buyer of the American grain, are once again being verified. But the news has failed to boost Chicago corn futures as the bookings are likely unsurprising to the market.
- Top China brokerage CITIC posts 21.9% rise in 2020 profit on stock gains — CITIC Securities Co, China’s biggest brokerage, reported on Thursday a 21.9% rise in profit in 2020, led by strong gains in securities investments.
Other Publications
- Nikkei Asian Review: China tariff on Australia’s barley reshapes global trade — Surging price hits brewers and livestock farmers while exporters shift to new markets.
- Nikkei Asian Review: China wins high marks from Russians, scoring 74% favorability — Young Russians in particular view economic powerhouse positively, research finds.
- Nikkei Asian Review: China’s digital yuan ambitions face a bubble tea test — E-currency trials in several cities are also part of economic stimulus.
- The Economist: China and India take opposite approaches to a crisis in Nepal — China is meddling, whereas India is taking an uncharacteristic step back.
- Foreign Policy: Will Biden’s Approach to China and Russia Work? — The new administration’s interim national security guidance gets many things right—but it has its shortcomings.
- Foreign Affairs: Decoupling Won’t Kill a Green Future — A Smart Trade Policy Could Spur Climate Action.
- Axios: Beijing hopes for tactical reset with Biden, but prepares for long struggle — By Kevin Rudd. After the tumult of the Trump administration, Chinese diplomats have gone into the meeting openly calling for the re-establishment of “strategic dialogue” and a more cooperative relationship. But the chances of that look slim.
- The Diplomat: US, China Spar in First Face-to-Face Meeting Under Biden — The contentious tone of the two sides’ public comments suggested their private discussions will be even more rocky.
- The Diplomat: The Strategic Implications of the China-Russia Lunar Base Cooperation Agreement — With their agreement, the partners are signalling an alternative to a U.S.-led order in space.
