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 Manufacturers Sidestep Trade Barriers by Buying Factories Overseas — Beijing subsidizes state-owned companies that acquire Western rivals or build plants in other countries; ‘appetite for economic conquest’.
- Chinese Consumers Are Opening Their Wallets Again — The country’s exports and imports also rose in April from a year earlier.
- Pandemic Tarnishes China’s North, Strengthens Southern Swing for Jobs — The country’s north-south divide in jobs and housing is sharpening.
- Europe Starts to Come Around on China — By The Editorial Board. Putting business first and alienating the U.S. has backfired.
The Financial Times
- China edges closer to wealth link with Hong Kong — Scheme could results in tens of billions of dollars flowing between markets.
The New York Times
- Long March 5B, a Chinese Rocket, Expected to Tumble Back to Earth — The chances of it hitting a populated area are small, but not zero. That has raised questions about how the country’s space program designs its missions.
Caixin
- In Depth: Regulators Can’t Keep Up With China’s Growing Carbon Financing Market — County lacks clear, unified regulatory standards to guide financiers to the worthwhile projects and assess their carbon-reduction benefits.
- Chinese Lithium Producer to Buy Out Mexican Sonora Project Owner — Ganfeng Lithium’s purchase of Bacanora would help feed China’s growing demand for the key element in making high-storage batteries.
- Analysis: Why Alibaba Retreated From New Property Venture — Mounting pressure from China’s stepped-up antitrust enforcement prompted early exit from Tmall Haofang, which was stuck on square one.
South China Morning Post
- China’s tech hub Shenzhen to invest US$108 billion in R&D over 5 years — Shenzhen is set to invest more than 700 billion yuan (US$108 billion) in hi-tech research and development over the next five years as it seeks to reinforce its position as China’s innovation powerhouse.
- Li Ning shares hit new high as sales surge amid Chinese boycott of Western sports brands over Xinjiang cotton row — Shares of Chinese sportswear maker Li Ning Company hit a historic high as sales during the May day holiday soared fivefold amid a nationalistic buying frenzy following the controversy over cotton produced in the Xinjiang region.
- Xiaomi, Oppo, Vivo, Realme face Indian dilemma as Covid-19 resurgence sinks demand — India’s recent surge in Covid-19 infections, with daily infections at record highs, has turned into bad news for Chinese smartphone makers Xiaomi, Realme, Oppo and Vivo, all of which have been expanding in the country in recent years.
Bloomberg
- Chip Demand Fuels Biggest Jump in Taiwan Exports Since 2010 — Taiwan’s exports beat estimates as surging sales of semiconductors and other electronic components propelled overseas shipments to the fastest growth in more than a decade.
- China Is Said to Mull Tighter Rules for Overseas Listings — China’s securities regulator is weighing tighter rules for companies seeking to list in Hong Kong or overseas, a move that could hit technology firms already smarting from months of clampdowns, according to people familiar with the matter.
- China Huarong’s Journey From Safe Bet to Bad News: A Timeline — It was a turbulent April for China Huarong Asset Management Co.’s dollar-bond holders.
- The World Turns to China for Vaccines After India, U.S. Stumble — The world is fast becoming ever more reliant on China for vaccines, with India’s raging virus outbreak stifling its ability to deliver on supply deals, even as the U.S. tries to position itself as a champion of wider access.
- Biden Team Likely to Proceed With Trump China Investment Ban — The Biden administration is likely to maintain pressure on China by preserving limits on U.S. investments in certain Chinese companies imposed under former President Donald Trump, six people familiar with the matter said, bucking entreaties from Wall Street to ease the restrictions.
Reuters
- China posts rapid trade growth in April as recovery races ahead — China extended its impressive trade performance in April, with exports unexpectedly accelerating and import growth hitting a decade high, in a boost to the world’s second-largest economy.
- EXCLUSIVE India holds up wireless approvals for China-made devices, delaying launches — India has held up approvals for import of wifi modules from China for months, driving companies such as U.S. computer makers Dell and HP and China’s Xiaomi, Oppo, Vivo and Lenovo to delay product launches in a key growth market, two industry sources said.
- Adidas shrugs off China boycott call to raise outlook — German sportswear company Adidas sees only a short-term impact from Chinese calls in March for a boycott of its products, raising its 2021 sales forecast on Friday as it expects a resumption of big sporting events to drive demand.
- China’s April foreign exchange reserves rise to $3.2 trillion — China’s foreign exchange reserves, the world’s largest, increased in April from a month earlier, official data showed on Friday, as the U.S. dollar weakened.
Other Publications
- Economist: China pushes back against critics of its policies in Xinjiang — This time, it’s personal.
- Economist: Joe Biden’s government has not yet committed to a path on trade in technology with China — To understand which way it will jump, watch the hitherto obscure Bureau of Industry and Security.
- Economist: Australia’s debate about China is becoming hot, angry and shrill — The increasingly one-sided discourse helps no one.
- Foreign Policy: As U.S. Hardens Line on Beijing, Taiwan’s Stock Rises in Washington — Taiwan doesn’t have a U.S. embassy. But it’s got plenty of influence—and more to come.
- POLITICO: Treasury confirms Chinese firm’s exemption from Trump ban on stock sales — The temporary injunction means that Nasdaq-listed Luokung Technology Corp. no longer faces delisting activity that was set to take effect this weekend.
- The Diplomat: Ramadan in China: Faithful Dwindle Under Limits on Religion — The tree-lined paths of the Id Kah Mosque’s grounds are tranquil, and it’s easy to miss the three surveillance cameras keeping watch over whoever comes in.
- Brookings: David Dollar: China’s economic future; Political Economy with James Pethokoukis [Podcast] — To what extent can China be understood as a success story of market economics? Once the low-hanging fruit of industrialization has been picked, how successful will the Chinese economy be at generating innovation? How should the United States react to the rise of China as an economic and geopolitical competitor? Today’s episode discusses these questions with David Dollar.
