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 Covid-19 Cases Hit Two-Month High — Infections jump in less-developed regions while authorities keep a lid on the virus in major export and commercial hubs.
- China Evergrande Prepares to Shed Light on Restructuring as Creditors’ Patience Wears Thin — The embattled property giant has yet to reach an agreement with bondholders, but still plans to release an update on restructuring talks in July.
- Tesla Poised for Earnings Hit From China Factory Shutdown — Investors are watching for any revision to Tesla CEO Elon Musk’s forecast that the company is likely to produce more than 1.5 million vehicles in 2022.
- Manolo Blahnik Says It Won a 22-Year Legal Fight Over Its Name in China — Luxury shoemaker, propelled into popular culture by ‘Sex and the City,’ had fought Chinese rival over trademark.
The Financial Times
- Chinese city Zhengzhou sets up bailout fund as mortgage boycott spreads — The homebuyer revolt over stalled projects is aggravating a property sector crisis.
- China property: refusing to pay mortgages is a powerful political weapon — Unrest could mark a bad start to president Xi Jinping’s third term.
- Neil Shen’s Sequoia China seeks ‘politically correct’ investment strategy — Billionaire founder of powerful VC firm raises $9bn tech fund with a plan aligned to Beijing’s policy goals.
- China’s Comac reliant on ‘captive domestic market’ for sales — New C919 is less fuel efficient than Boeing and Airbus jets and may struggle to attract international buyers.
- China’s zero-Covid policy risks economic damage spiralling — Global growth rests on Beijing’s vaccine and stimulus strategies.
- Corporate jitters over Taiwan and China on the rise — Companies have rushed to assess the likelihood of Chinese invasion since the war in Ukraine began.
- Semiconductors: US subsidy vote more about fate of Chinese chipmakers — Strict new standards could mark the beginning of another round of financial woes for China’s producers.
The New York Times
- Local Chinese Officials Apologize for Entering Homes in Search of Covid Cases — Community workers in the city of Guangzhou were looking for people who had tested positive for the virus and close contacts of patients.
Caixin
- China Debuts $3 Billion State Iron Ore Giant — China Mineral Resources Group consolidates investments in foreign resources and global purchases of steelmaking materials.
- In Depth: China Doubles Down on Infrastructure to Spur Growth — Renewable energy, technology and water management projects are set to be among the largest beneficiaries of China’s latest infrastructure investment boom, the likes of which has not been seen since the global financial crisis.
- Executives of Matchmaking Giant Arrested in Embezzlement Probe — Controlling shareholder Fosun says its anti-graft department detected criminal activity at Baihe Jiayuan and blew the whistle.
South China Morning Post
- Chinese car chip start-up SiEngine raises US$148 million in new funding as private equity firms invest in semiconductors — SiEngine’s successful fundraising reflects venture capitalists’ renewed optimism in China’s semiconductor self-sufficiency drive.
- Senate ‘test vote’ shows support for bill providing $52 billion to US semiconductor industry to out-compete China — America’s status as ‘number one economy and innovator in the world’ at stake, says Senate Majority Leader Chuck Schumer as he urges passage.
- China’s Fujian aircraft carrier doesn’t have radar and weapon systems yet, photos show — Warship was launched a month ago and military analysts expect the process to get it ready for active service could take several years.
Nikkei Asia
- China’s JAKA Robotics raised $148m from SoftBank, Temasek — Collaborative robots safe enough to work alongside humans in high demand.
- ‘Hidden cost’ of China’s Belt and Road is forced labor: U.S. report — Host governments must ensure citizens are not exploited, document says.
Bloomberg
- China’s Covid Outbreak Has Residents Trying to Flee Lockdowns — New Covid-19 cases in China surged to almost 1,000, as social media posts showed residents in previously hard-hit areas literally climbing fences and running through the streets to try to escape renewed lockdowns.
- China’s Spending on Russian Energy Jumps to $6.4 Billion in June — China spent 72% more on Russian energy purchases in June from a year earlier, as higher prices due to the war in Ukraine raised its import bill for oil, gas and coal.
- China’s Tsinghua University Punishes Students for LGBTQ Flags — Two students at one of China’s most prestigious universities were issued warnings for distributing LGBTQ rainbow flags, highlighting how the nation’s increasing intolerance for sexual diversity is extending further into campuses.
Reuters
- Exclusive: China seeks to stop UN rights chief from releasing Xinjiang report – document — China is asking the United Nations human rights chief to bury a highly-anticipated report on human rights violations in Xinjiang, according to a Chinese letter seen by Reuters and confirmed by diplomats from three countries who received it.
- Analysis: China’s mortgage boycott spurs shakeout among strapped developers — Many private-sector developers, already gasping for funds and facing an uncertain future, have stoked the unrest as they delayed projects.
- U.S. Senate votes to move ahead on chip bill to compete with China — The Senate backed by 64 to 34 a procedural measure setting the stage for potential votes to pass the legislation in the Senate and House of Representatives by the end of next week.
Other Publications
- The Economist: A new subvariant is the latest challenge to China’s zero-covid policy — Omicron BA.5 has several cities on edge
- Associated Press: Researchers: Chinese-made GPS tracker highly vulnerable — A report by the Boston cybersecurity firm BitSight says the flaws could let attackers remotely hijack device-equipped vehicles, cutting off fuel to them and otherwise seizing control while they travel.
- Foreign Affairs: Rivals Within Reason? — U.S.-Chinese Competition Is Getting Sharper—but Doesn’t Necessarily Have to Get More Dangerous. By Kevin Rudd
