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.
Paid subscribers automatically have this list emailed directly to their inboxes every day by 10 a.m. EST. Subscribe here.
The Wall Street Journal
- Lawmakers Make Bipartisan Push for New Government Powers to Block U.S. Investments in China — Draft measure in Congress intends to limit U.S. involvement in China’s technology sector, rebuild supply chains.
- One American CEO Argues for Mending Fences With China — ‘Engagement is in our interest,’ says Chubb’s Evan Greenberg, pushing for an ‘interest-based approach to our economic relationship.’
- U.N. Human-Rights Chief to Step Down, in Wake of China Visit — Michelle Bachelet has been criticized over her visit to assess claims of abuses of Muslim minorities in Xinjiang region, but cites personal reasons for her departure.
- Chinese Tech Stocks Will Struggle to Buck Global Blues — The worst of the regulatory assault may finally be over. But a sustainable bull run faces several new, and nearly as dangerous, obstacles.
- Beijing Investigates Bar Staff as Covid-19 Outbreak Worsens — Mass-testing continues in the capital and entertainment venues are shut, just a week after many businesses reopened.
- What Do Chinese Consumers Want? Walmart Can’t Figure It Out. — The hypermarket model is losing ground, local rivals do better on fast delivery, and geopolitics gives the company headaches.
- Video: U.S. vs. China: The Rules and Design Shaping the Metaverse — Beijing’s tough tech regulations that already affect China’s gaming industry are expected to be carried over into the metaverse.
The Financial Times
- Pentagon bankrolls rare earths plant as US plays catch-up to China — Australia’s Lynas will build facility in Texas with $120mn of funding from Washington.
- Hong Kong fund managers plead with officials to reopen border — Lobby group representing $52tn in assets says city could ‘be put in an uncompetitive position.’
- Chinese banks cut investment banking staff in Hong Kong during IPO drought — A flood of expected listings diverted from New York has yet to materialise.
- Alibaba and Tencent’s darkening clouds — Chinese tech giants lag behind pace of US rivals as Beijing favours state vendors.
- Investment banking: when in China, pay as the Chinese do — The order to curb salary levels marks a shift in Beijing’s position towards foreign banks.
The New York Times
- For Its Next Zero Covid Chapter, China Turns to Mass Testing — Residents in many cities must show negative P.C.R. tests to go shopping or use public services. The policy may hamper efforts to revive the economy.
- As China Rattles Sabers, Taiwan Asks: Are We Ready for War? — Ukraine’s stubborn resistance to invasion, and the help that has poured in as a result, has both inspired Taiwan and made it rethink its own military strategy.
- U.N. Human Rights Chief Decides Not to Seek a Second Term — The announcement by Michelle Bachelet, the U.N. high commissioner for human rights, came a month after she was criticized by rights groups for traveling to China.
Caixin
- Shanghai Tries New Tactics to Stamp Out Crypto Mining — Companies running data centers are required to conduct self-checks and pledge not to engage in the power-hungry activity.
- Hong Kong Experiences Financial Brain Drain Amid Covid Restrictions — Monetary authority and securities commission report doubling of staff turnover in 2021 as pandemic control policies hobble recruiting.
- China’s Efforts to Prop Up Property Market Fall Short — While local governments have taken steps to stimulate the ailing sector, both supply and demand remain weak.
South China Morning Post
- Chinese AI giant Megvii’s chief scientist Sun Jian dies at age 45 of sudden illness — Megvii scooped up the star research scientist from Microsoft in 2016, but Sun’s death comes at a delicate time for the company, which remains under US sanctions and is seeking an IPO in Shanghai.
- Nearly 11 billion Covid tests seen giving economy a US$26 billion boost in second quarter — Widespread outbreaks across China since April have racked up a coronavirus-testing bill the size of a small country’s annual GDP, according to Chinese researchers.
- HKEX hoped alchemy would turn acquisition of century-old London Metal Exchange into ‘super-connector’ gold. What went wrong? — Hong Kong Exchanges and Clearing acquired the 145-year old London Metal Exchange in 2012, extending its role as a ‘super-connector’ by linking China’s commodity markets with the world. It has not gone according to the script.
Nikkei Asia
- Hong Kong judicial independence fears threaten city’s business case — Under security law, doubts grow over finance hub’s key selling point.
- China’s military expansion is ‘opaque’: Australia defense minister — Marles warns buildup is the biggest since WWII; concerned about Solomon deal.
- Nearly 150 U.S.-traded Chinese companies at risk of delisting — Congress pushes for 2023 deadline in audit inspection dispute.
Bloomberg
- China Has Released Bloomberg News Staffer Haze Fan on Bail — Haze Fan, a member of Bloomberg News’s bureau in Beijing, was released on bail in January, according to the Chinese embassy in Washington, more than a year after she was detained on suspicion of national security law violations.
- UK Option on Sizewell-Plant Stake Puts China’s Role in Focus — The UK government purchased an option to take a 20% stake in Electricite de France SA’s Sizewell C nuclear power plant, a move that potentially eases the way to removing China from the project.
- China’s Massive Hydro Energy Storage Goals May Be Getting Bigger — PowerChina says construction will soon start on 270 gigawatts of pumped hydro plants to complement renewable power.
- Hedge Funds Spawned by Hillhouse Burned in China Tech Crash — For years, it’s been one of the best calling cards that hedge fund startups in Asia could ask for: getting support from billionaire Zhang Lei or gaining experience at his Hillhouse Capital Group.
Reuters
- China investment curbs gain momentum in U.S. lawmaker talks — A bipartisan group of U.S. lawmakers said on Monday they had agreed on a proposal to give the government sweeping new powers to block billions in U.S. investment into China, though the measure is part of a broader bill with an uncertain future.
- China regulator denies it asked foreign banks for executive pay details — China’s securities regulator on Tuesday denied that it and its securities association had asked foreign investment banks for senior executives’ pay details or suggested they implement pay curbs, rejecting media reports.
Other Publications
- New York Magazine: The Dismantling of Hong Kong — Since 2019, my hometown has slowly transformed into a brutal, unrecognizable place. Then came Omicron. By Karen Cheung
- BBC: Africa Eye: Racism for sale — In February 2020 a shocking video began to circulate on Chinese social media. A group of African children are being instructed, by a voice off-camera, to chant phrases in Chinese. The kids repeat the words with smiles and enthusiasm — but they don’t understand that what they’re being told to say is ” I am a black monster and my IQ is low.”
- The Intercept: Toxic Tiles — How Vinyl Flooring Made With Uyghur Forced Labor Ends Up at Big Box Stores. By Mara Hvistendahl
- Council on Foreign Relations: China and the Belt and Road Initiative in South Asia — To support its allies and partners in South Asia, the United States should assist South Asian countries in assessing Belt and Road Initiative risks and benefits.
