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 Unexpectedly Cuts Key Rate as Growth Crumbles — China’s central bank cut a benchmark interest rate, a shift that economists said would likely help the moribund housing market but bring only limited relief to the struggling economy.
- For U.S. Inflation, China’s Slowdown Is a Double-Edged Sword — China’s manufacturing juggernaut is being punished by lockdowns in Shanghai and elsewhere. The impact on prices will spread.
The Financial Times
- Global stocks rally after China unveils new stimulus measures — S&P 500 futures gain 1.3% but Wall Street equities remain on course for longest stretch of weekly losses in 20 years.
- China cuts mortgage lending rate by record as lockdowns hit economy — Five-year loan prime rate slashed by most since before pandemic as government steps up stimulus.
- Canada to ban Chinese telecoms Huawei and ZTE from 5G networks — Trudeau government delivers long-awaited decision on equipment manufacturers targeted by Washington.
The New York Times
- As China Doubles Down on Lockdowns, Some Chinese Seek an Exit — Inquiries to immigration consultants have surged; social media users trade tips on how to get abroad. But the government aims to “strictly restrict nonessential exit activities.”
- Biden Begins Trip to Asia Meant to Reassure Allies of Focus on China — With the administration’s attention having shifted to Ukraine, President Biden plans to emphasize that the United States can counter aggression in both Europe and Asia.
- Chinese Hackers Tried to Steal Russian Defense Data, Report Says — The campaign detailed by a cybersecurity firm highlights Beijing’s increasingly sophisticated tactics to spy on an array of targets, including countries it considers friends.
Caixin
- China Merchants Bank Appoints New President in Wake of Corruption Scandal — Wang Liang was made interim head after the lender’s former president was removed in April due to suspected misconduct.
- CanSino Shares Jump After WHO Gives Nod to Its Covid-19 Vaccine — Tianjin-based company’s stock closes up 12.14% in Shanghai and 9.78% in Hong Kong.
South China Morning Post
- South Korea looks to break China import dependence and establish ‘supply chain alliances’ — South Korea under new president Yoon Suk-yeol wants to diversify trade away from China and boost ties with Indo-Pacific economies, as it looks to bolster supply chain resilience amid an uncertain geopolitical environment.
- Controlling stake in Arm China may shift to little-known entity as chip joint venture’s ownership saga drags on — A Lotcap Group statement did not include any names or specific contact information for the company, apart from an email address.
- China-Australia relations: Canberra’s ‘fear of looking weak’ hints at no relief for exporters — China has used a variety of tools to bar the likes of Australian barley, beef, wine, lobsters and coal from entering its market since 2020, with Saturday’s election result unlikely to change Canberra’s approach to its relations with Beijing.
- Shanghai lockdown: city finds three new community infections even as death toll falls to zero, as path to reopening is lined with risks — Faced with the mixed results, Shanghai’s health authorities are not letting up, even if more manufacturers and public services have been allowed to resume operations.
Nikkei Asia
- As China’s economy slows, Japanese exports take a hit — Cars, chips and other goods suffer biggest decline in 7 years in April.
- China calls for expanding BRICS bloc of emerging economies — Beijing diplomat meets with counterparts from Brazil, Russia, India, South Africa.
Bloomberg
- Taiwan Posts Shock Export Order Fall on China Covid Curbs — Taiwan’s export orders fell in April for the first time since 2020 as Covid lockdowns in China weighed on production capacity for major Taiwanese companies.
- Hedge Fund Forced Liquidations Are Big Risk for China Stocks — China’s almost-trillion dollar hedge fund industry risks worsening the turmoil in its stock market as deepening portfolio losses trigger forced selling by some managers.
- Boeing Max Faces Another China Hurdle as Airline Says Not Ready — China Eastern Airlines Corp. outlined several actions it needs to undertake before operating Boeing Co.’s 737 Max again, including modifications to the aircraft and further pilot training, damping hopes the narrowbody will return to Chinese skies any time soon.
- US Growth Seen Outpacing China’s for First Time Since 1976 — China’s coronavirus lockdowns mean its economic growth may undershoot the US for the first time since 1976, in a role reversal with potential political reverberations in both Beijing and Washington.
- Tesla Wants Staff to Stay in China Factory Until Mid-June — Tesla Inc. plans to keep employees at its Shanghai factory working in a so-called closed loop system — where staff are ferried to and from work and tested for Covid-19 regularly — until mid-June, people familiar with the matter said.
- China Carbon Market Has New Woes With Prices Already Flatlining — Latest emissions allowances haven’t been released as officials tackle issues including data fraud.
Reuters
- China’s international schools hit by exodus of teachers dejected by COVID curbs — After teaching for three years at an international school in Shanghai, Michael is preparing to break his contract and leave, worn down by stringent measures against the coronavirus.
- East Timor’s new president pledges stronger ties with China — East Timorese independence figure and Nobel laureate Jose Ramos-Horta was inaugurated as the country’s fifth president on Friday, pledging to dedicate his time in office to strengthen national unity and forge closer relations with China.
- White House says Biden, China’s Xi may talk in coming weeks — U.S. President Joe Biden may talk with his Chinese counterpart Xi Jinping in the coming weeks, national security adviser Jake Sullivan said aboard Air Force One on Thursday.
Other Publications
- AP: China becomes wild card in Sri Lanka’s debt crisis — China says its initiative to build ports and other infrastructure across Asia and Africa, paid for with Chinese loans, will boost trade.
- The Economist: Covid shows that in China, politics matters more than pragmatism — Why officials are so strangely slow to vaccinate the elderly.
- Washington Post: Why Biden hasn’t killed Trump’s China tariffs and made imports cheaper — Advisers are split, and economists see little immediate gain for consumers.
