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
- Shanghai Is Back, but China’s Young Workers Are Still Stuck — China’s economy is struggling to produce enough jobs for its educated workforce, a problem that could persist even after Covid-19 curbs are finally lifted
- China Warns New Zealand Against Squandering Trade Ties — Beijing envoy says economic relationships shouldn’t be taken for granted
- This Tesla-Supplying Battery Maker Has Lost Some of Its Power — The market has cooled on China’s CATL, as high raw-material costs have squeezed profit margins
- Jack Ma’s Ant Group Revamps Its Board — Chairman of Hong Kong’s stock exchange operator is now an independent director of Chinese fintech giant
- Chip Shortages Might Finally Ease. For Asia, That’s a Mixed Bag. — Chip makers and other hardware suppliers have had a banner two years. But the darkening global economic picture is beginning to nibble away at their bread and butter.
- Amazon to Close Kindle Bookstore in China — Move is latest withdrawal for a U.S. tech giant in China, as market declines for e-readers.
- Shanghai’s Covid Lockdown Ends; Time for Haircuts, Dog Walking and Jogging — Residents indulge in the mundane, but return of normalcy for China’s financial hub might prove elusive while zero-Covid policies remain.
The Financial Times
- Amazon to close China Kindle Store after losing out to domestic rivals — Ecommerce giant is the latest western tech group to scale back or retreat entirely from the country.
- Xiaomi-linked companies halt IPOs after Chinese regulator scrutiny — Groups tied to smartphone seller’s ‘ecosystem’ become targets in Beijing’s crackdown on Big Tech.
- China claims Covid victory in Shanghai despite recession risks — Beijing trumpets easing of restrictions even as millions remain under lockdown across the country.
- ‘Revenge bubble tea drinking’: Shanghai awakes from Covid lockdown — Residents of China’s financial capital prepare for shopping spree after months of home confinement.
- Taiwan’s opposition tries to claw back America’s trust — Kuomintang is acutely aware it needs Washington’s approval to return to power.
- China loosens Shanghai restrictions as economic woes mount — EU inflation hits 8.1 per cent, UK travel turmoil, the Queen’s platinum jubilee.
- Electric vehicles accelerate China’s looming dominance as a car exporter — For Japanese and European carmakers, the challenge is that while EVs may be high-tech, they are not complex.
Caixin
- Ant Group Names HKEX Chair as New Director Amid Tightening Regulation — The fintech giant reshuffles board as it ramps up efforts to meet regulatory requirements for a financial holding company.
- Lithium Prices to Resume Rise as China’s Local Governments Roll Out EV Subsidies — After Covid lockdowns hurt electric car sales, stimulus policies will have a knock-on effect on the key ingredient for batteries.
- In Depth: Chinese Consumer Startups Find Taking on Global Titans Is No Easy Task — Investors are becoming more cautious as revenue growth falters, profits remain elusive and international leaders rise to the competition.
South China Morning Post
- Chinese PLA bombers carry out night raid drills around Taiwan and East China Sea — Six-hour drills come as PLA steps up mobilisation and strike practice in the region amid warming Taiwan-US ties it has labelled ‘collusion’.
- Taiwan’s opposition KMT leader heads to US to reconnect with Washington — Kuomintang chairman Eric Chu will reopen the party’s representative office and meet officials, academics and ethnic Taiwanese communities during the 11-day trip.
- Apple, Samsung, Xiaomi left out of Shenzhen’s 100-million-yuan subsidy even as China’s tech hub expands eligible product list — Consumers can now get a 15 per cent subsidy on 9,407 gadgets and appliances as the local government aims to stimulate consumer spending and give a boost to its home-grown manufacturers.
Nikkei Asia
- Analysis: Premier Li’s economic rebuild has a dangerous precedent — The last time a No. 2 corrected the top leader’s policy, it didn’t end.
- China softens blow of U.S. sanctions on military companies — State-backed funds strengthen targeted sector ahead of Friday deadline.
- China’s Renmin University shuns global rankings in inward turn — Xi urges schools to reflect national uniqueness rather than follow foreign models.
- Hong Kong’s Tiananmen candlelight vigil snuffed out — Organizers of annual memorial to 1989 crackdown jailed on subversion charges.
Bloomberg
- China Plans for Years of Covid Zero Strategy With Tests on Every Corner — China is doubling down on mass-testing in a move that’s dashing hopes for a shift away from its costly Covid Zero strategy.
- Chinese mRNA Shot Beat Sinovac as Booster But Caused More Fevers — China’s home grown mRNA vaccine stimulated the production of more protective antibodies than an inactivated shot when given as a booster, though it appeared to cause more side effects, according to study released Tuesday.
- Biden Plans High Bar for Imports From Xinjiang Under US Ban — Biden administration officials signaled Wednesday they’re prepared to take a tough stance enforcing a ban on imported goods from China’s Xinjiang region unless companies provide clear evidence the goods are free of forced labor.
Reuters
- China’s Geely launches first nine low-orbit satellites for autonomous cars — Geely said it expects another 63 to be in orbit by 2025 and eventually plans to have a constellation of 240.
- China’s draft cybersecurity rules pose risks for financial firms, lobby group warns — China’s proposed cybersecurity rules for financial firms could pose risks to operations of western companies by making their data vulnerable to hacking, among other things.
- U.S. is ready to implement ban on Xinjiang goods on June 21 — The law includes a “rebuttable presumption” that all goods from Xinjiang, where Chinese authorities established detention camps for Uyghurs and other Muslim groups, are made with forced labor, and bars their import unless it can be proven otherwise.
Other Publications
- The Economist: Should China spend more on infrastructure? — Such stimulus would be less wasteful than a recession
- The Economist: A curious breed of financing vehicle illustrates a dilemma for China’s policymakers — Local government financing vehicles, once the motor of growth, are under scrutiny
- The Economist: Xi Jinping bans grumbling inside the Communist Party — Party factions were annoying for China’s past rulers, but offered a safe outlet for dissent
- Associated Press: Journalist detained in China denied calls, partner says — The Australian partner of a journalist who has been detained in China for nearly two years said Thursday she is being denied the chance to speak with her family and consular staff, and her health is declining due to a poor prison diet.
- The Washington Post: China’s hold over Tesla raises questions about Musk’s bid for Twitter — Current and former U.S. officials say deal could go against national interest.
- Quartz: China’s measures to boost consumer demand are nowhere near enough — The latest moves to boost consumer demand, including handing out consumption vouchers and distributing free digital yuan, are mere drops in China’s vast economic bucket.
