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
- Blinken to Stress U.S. Remains Focused on China, Even as War Rages in Ukraine — Chief diplomat’s speech on U.S. China policy comes days after Biden roiled Asia with ‘commitment’ to defend Taiwan.
- U.K. to Probe Chinese-Led Takeover of Chip Maker — Scrutiny is latest sign that countries are becoming more protective over their semiconductor industries.
- Xi Jinping’s First Trip Outside Mainland China in Over Two Years Is Set to Be Brief—or Scrapped — Leader’s visit to Hong Kong to mark 25th handover anniversary likely to be reduced to a single day; could be scuttled by Covid fears.
- Foreign Business Is Falling Out of Love With China — Covid-19 policies and Beijing’s increasingly ideological approach to business are making many companies reassess growth plans.
- Alibaba, Hit by Covid in China, Posts Slowest Revenue Growth Since IPO — The e-commerce giant says it has been significantly hit by Covid-19 outbreaks since mid-March.
- Nvidia Posts Record Sales, Warns of Russia, China Hit — Chip maker’s data-center sales surpass gaming sales for only second time.
- Video: How China Turned the Ukraine War Into a Propaganda Opportunity — Chinese state media has sent reporters to Ukraine and published clips of Vladimir Putin, aligning with Moscow’s war narrative. The war is creating a propaganda opportunity as Beijing officially positions itself as a neutral party.
The Financial Times
- Australia and US move to shore up Pacific support after China’s overtures — Beijing proposes security and economic pact to island nations ahead of foreign minister’s visit.
- China turns a blind eye to labour violations to spur economy — Businesses offered immunity from infractions but initiative threatens Xi’s common prosperity pledge.
- China’s Xiaomi, Vivo and Oppo trim smartphone orders by 20% — Trio hit by lockdowns and inflation woes while Samsung and Google less impacted.
- China’s premier issues stark warning on economy as growth stalls — Li Keqiang urges officials to help companies resume production after Covid lockdowns.
The New York Times
- Concern Grows in China Over Economic Impact of ‘Zero Covid’ — A senior leader announced efforts to bolster growth and urged local leaders do more to keep the economy running.
- Digital Threads Between the U.S. and China — Chinese trends have shaped online experiences for Americans, and U.S. tech companies have inspired those in China.
- ‘Quantum Internet’ Inches Closer With Advance in Data Teleportation — Scientists have improved their ability to send quantum information across distant computers — and have taken another step toward the network of the future.
- China Seeks Sweeping Regional Deal With Pacific Island Countries — Newly obtained documents shed light on how Beijing hopes to win friends and gain influence in an area of strategic importance.
Caixin
- In Depth: As Mass Covid Testing Becomes China’s New Normal, Debate Grows Over Who Pays — National Healthcare Security Administration says local medical insurance funds shouldn’t be used for large-scale programs.
- China’s Premier Puts Greater Emphasis on Growth — Li Keqiang tells State Council China needs to strike a better balance between pandemic control and economic development as Covid measures weigh on GDP.
- More Chinese Logistics Firms Sink Into Red in April — In the first four months, 39% of ‘key’ companies lost money, up from 36% in the first quarter.
South China Morning Post
- China imposes voluntary fishing moratorium in northern Indian Ocean after being linked to illegal catches — Two separate reports suggest Chinese trawlers have been involved in illegal fishing in the Indian Ocean.
- Shanghai’s lockdown will end ‘as scripted’, city’s Commissar says, as fewer than 50 Covid-19 cases show symptoms for second day — The positive turn gave the city’s Commissar Li Qiang enough confidence to begin loosening some of the government’s stranglehold on movement, work and daily lives in the city of 25 million residents.
- UK orders full national security review for Chinese takeover of semiconductor maker Newport Wafer Fab — Assessment of US$79 million acquisition of Britain’s biggest semiconductor maker comes under new powers conferred by National Security and Investment Act and follows criticism of apparent government inaction.
Nikkei Asia
- China carriers scoop up homegrown jets despite travel downturn — Beijing cultivates domestic aviation industry by purchasing planes from COMAC.
- Analysis: Xi envoy Wang Qishan visits Seoul with message for U.S. — Quiet negotiations are underway to secure a summit with Biden.
- Hong Kong developer moves to cash in on COVID ‘donation’ — Sun Hung Kai Properties eyes housing estate on plot lent for city’s virus battle.
Bloomberg
- Xi-Li Discord Paralyzes Officials Responsible for China Economy — The last time a top Chinese leader impromptu addressed thousands of officials in February 2020, President Xi Jinping called for a “people’s war” against Covid-19 at the outset of the pandemic.
- Hong Kong Ends Mutual Accounting Recognition Accord With US — Hong Kong’s accountant body said it failed to reach an accord to prolong an 11-year mutual recognition agreement with the US amid a dispute over local qualifications.
- Sanctioned Chipmaker SMIC Joins Hang Seng’s ESG Indexes — Semiconductor Manufacturing International Corp. has been added to two ESG-focused indexes in Hong Kong, even as China’s largest chipmaker remains a sanctioned entity in the US.
- Rare Ship-to-Ship Transfers Keep Oil Moving From Russia to China — A logistically risky and costly transfer of crude between tankers at sea highlights the steps at least one Chinese buyer is willing to take to ensure the smooth flow of oil from eastern Russia to Asia.
Reuters
- COVID-hit Shanghai heads for lockdown exit but China still lost in economic gloom — Shanghai is set to finally emerge from its lockdown on June 1 after new infections fell sharply.
- China, Australia vie for Pacific influence with duelling visits — China and Australia launched competing Pacific visits on Thursday, with China’s foreign minister expressing hope that ties with the Solomon Islands can be a regional model.
- Chinese tech firms forced into ‘blood listings’ as capital dries up — A growing number of Chinese tech start-ups, once the darlings of equity markets, are willing to list shares publicly in China at valuations lower than during private funding rounds in so-called blood listings.
- UK orders national security assessment of sale of microchip factory to China’s Nexperia — The government, which has the power to intervene, including retrospectively, in acquisitions on national security grounds, has 30 working days to carry out its assessment.
Other Publications
- The Economist: Rumours emerge of disharmony within China’s leadership — But little evidence suggests Xi Jinping faces a challenge.
- The Economist: How Xi Jinping is damaging China’s economy — Inflexible policies are trumping pragmatism.
- The Economist: China is trying to protect its economy from Western pressure — The results are mixed.
