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 Evergrande Promises to Play by the Book in Offshore Debt Restructuring — Company says it plans to release initial restructuring plan in six months, asks creditors to hold off on enforcement actions.
- Beijing Steps Up Covid-19 Control Measures Ahead of Lunar New Year, Winter Olympics — Chinese capital conducts mass-testing, locks down some residential compounds as other cities declare victory over outbreaks.
- MIT Professor Gang Chen Says Misunderstanding Lay at Root of U.S. Case — Federal prosecutors dropped charges last week, a year after accusing the professor of hiding ties to China.
- EU Hits Back at China Over Trade Limits, Taking Lithuania Fight Global — Beijing, which has cut imports in political fights, says it plays by WTO rules.
- Chinese Fund Managers Heed State Call to Invest After Stocks Stumble — CSI 300 hits its lowest point since September 2020.
- Jeep Owner Stellantis to Take Majority Stake in Chinese Venture — Deal follows Chinese decision to ease rules on foreign ownership.
- WTO Arbiter Sides With China in Tariff Fight With U.S. — Decision allows China to collect $645 million in retaliatory tariffs in dispute over U.S. levies on Chinese products.
- China Calls for Calm From U.S. on Ukraine — China’s foreign minister warned Washington against doing anything to ‘hype up crisis’.
- Tesla Supplier LG Energy Hits $99 Billion Valuation on Trading Debut — South Korean company trails China’s CATL in EV battery production.
- The Beijing Olympics Has Its First Big Covid-19 Challenge: the Russian Olympic Committee — At least five positive cases are threatening the participation of ROC athletes. Russian officials say their star figure-skating teens are exempt from vaccination and quarantine.
- Hong Kong Dials Back One of World’s Longest Covid-19 Quarantines — Arriving travelers will spend two weeks in isolation from Feb. 5, shortening stays that have been criticized by business groups.
The Financial Times
- Oaktree scuppers Evergrande restructuring plan by seizing ‘Versailles mansion’ plot — Receiver appointed to Hong Kong development that was crucial to draft $20bn bondholder deal.
- Brussels challenges China at WTO over block on Lithuania imports — EU brings case against ‘discriminatory and illegal’ action triggered by dispute over Taiwan.
- Tesla battery maker LG Energy Solution surges on record market debut — Shares in electric vehicle supplier almost double making company South Korea’s second-most valuable.
- Beijing tightens Covid restrictions in parts of capital ahead of Olympics — Officials widen measures ahead of next month’s Games as IOC confirms plans for Peng Shuai meeting.
- Bank of America examines relocating staff from Hong Kong to Singapore — Review begins to identify workers who can be moved as strict quarantine rules stifle territory’s role as regional hub.
The New York Times
- Covid Case in Beijing Olympic Bubble Is Linked to a German Team — A supervisor who tested positive is asymptomatic and is now in a quarantine hotel, the German Olympic Sports Confederation said.
- How the Computer Chip Shortage Could Incite a U.S. Conflict With China — A war game and study by a think tank illustrate how dependent the world is on Taiwan’s semiconductor foundries.
- Vestas, a Danish Wind Giant, Warns of Supply Chain Turbulence — The company, the world’s largest maker of wind turbines, said pandemic delays in China and the rising cost of steel were hindering earnings.
Caixin
- In Depth: The Legacy of Rags-to-Riches Wealth Management Tycoon Xie Zhikun — Xie Zhikun, the founder and controlling shareholder of the sprawling Chinese investment conglomerate Zhongzhi Enterprise Group Co. Ltd., died on Dec. 18, just weeks before his 61st birthday.
- China Telecom to Roll Out Smartphones With 5G-Powered Messaging — China Telecom plans to issue two smartphones onto the market equipped with a 5G-enabled messaging service, making it the first of the major state-owned mobile carriers to bring the technology to market.
- Shenzhen Tightens Entry Rules on Travelers From Hong Kong Due to Covid Concerns — The special administrative region had reported more than 100 confirmed cases for four straight days as of Wednesday.
South China Morning Post
- China has right to impose tariffs on US$645 million of US products, says WTO — The World Trade Organization (WTO) authorised China on Wednesday to impose US$645 million of compensatory tariffs against the United States in a ruling likely to receive a cool reception in Washington.
- Tencent vows to improve work-life balance after fresh 996 criticism over a worker’s 20-hour shift — A Tencent Holdings employee sparked fresh debate online about the 996 overwork culture in China’s tech industry after lambasting in a work group chat his team’s plaudits of a colleague’s recent 20-hour shift, pushing the company to respond that it would seek to improve work-life balance.
- Omicron: Hong Kong to shorten 21-day quarantine requirement for incoming travellers to 2 weeks from February 5 — Flights from Australia, Canada, France, India, Pakistan, the Philippines, Britain and the United States have been banned since the start of the fifth wave of infections, to prevent more imported cases from slipping into the community. The ban will be extended for another two weeks to February 18.
Bloomberg
- China Revamps State Firms Cofco, Sinograin in Food Security Push — China has kicked off a long-anticipated overhaul of its massive state-owned agriculture companies to help secure food supply for the world’s most populous nation.
- China Approves AMD’s $35 Billion Acquisition of Xilinx — Chinese regulators have granted approval for Advanced Micro Devices Inc. to buy Xilinx Inc., clearing the way for one of the largest deals to emerge from the global semiconductor industry.
- China Weighs Dismantling Evergrande to Contain Debt Crisis — Chinese authorities are considering a proposal to dismantle China Evergrande Group by selling the bulk of its assets, according to people familiar with the matter.
- U.S. Investment Review Likely to Impact Firms Already in China — A leading proposal to screen future investment by U.S. companies in China to lower national security risks could significantly slow new transactions and also pressure American businesses to reassess existing operations, according to Rhodium Group.
Reuters
- China’s GAC scolds Stellantis over joint-venture plan — In a statement earlier on Thursday Stellantis said it was planning to increase to 75% its stake in the joint venture with GAC, which produces Jeep-branded vehicles. Stellantis and GAC currently each hold 50% of the joint venture.
- Analysis: Debt fears overshadow China’s infrastructure push to fight economic slowdown — China is counting on revived infrastructure spending to support its slowing economy, but controls over local government debt risks and falling investment returns could hamper the renewed push.
- Exclusive: Tencent plans to take U.S.-listed streaming firm DouYu private – sources — Tencent Holdings Ltd plans to take DouYu International Holdings Ltd private amid disagreements over strategy among executives at the Chinese videogame streaming firm.
Other Publications
- The Economist: Will China dominate the world of semiconductors? — America and its allies are crafting rules to try to prevent it.
- Nikkei Asia: Analysis: If Xi secures just 5 more years, he loses — The leader can only maintain grip if subordinates feel he’ll stay.
- Nikkei Asia: China’s Communist Party expels former boss of Hangzhou for graft — Zhou Jiangyong ‘engaged in familial corruption,’ anti-corruption watchdog says.
- Nikkei Asia: Detention of China’s ‘tobacco fragrance queen’ confounds company — Huabao International ponders how to manage without Zhu Linyao.
