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
- Pelosi Travels With Delegation to Asia Amid Chinese Warnings Not to Visit Taiwan — The possibility of stopover on the island presents a dilemma for the Biden administration.
- China’s Economy Tested by Strained City Finances — Government entities could face a nearly $900 billion funding shortfall in 2022, weighing on Beijing’s plans to revive growth.
- China Home Sales Plunge in July, as Mortgage Revolt Deters Buyers — Sales fell on the year and from the previous month, ending a budding recovery.
- China’s Manufacturing Sector Unexpectedly Contracts Amid Weak Demand, Covid Lockdowns — Just 10 of the 21 sectors tracked by China’s statistics bureau expanded in July, versus 13 in June.
- China’s Stumbling Manufacturing, Property Sectors Show Long Road to Recovery — Pressure isn’t expected to ease as data for two key sectors came in negative for July.
- Evergrande Told to Cough Up $1.1 Billion for Previously Undisclosed Guarantees — Chinese property developer says its shares in a regional bank were pledged to an unnamed entity.
- Zambia Restructuring Offers Clues on China’s Willingness to Ease Debts of Poor Countries — China committed to join other government creditors in providing relief on African copper producer’s $17 billion foreign-currency debt load.
- Debris From Chinese Rocket Falls Into Sea After Uncontrolled Re-Entry — NASA’s administrator called on China to share more information about how its rocket bodies return to Earth.
- HSBC Pledges to Restore Pre-Covid Dividends as Profit Jumps — British lender’s results were lifted by higher interest rates.
The Financial Times
- India to surpass China as world’s biggest buyer of minerals — Dambisa Moyo warns Beijing’s debt and population challenges will affect resources companies.
- Alibaba to ‘strive’ to keep New York listing despite addition to SEC watchlist — Chinese tech group was added to a US register of companies facing delisting in 2024.
- HSBC pledges to restore dividend to pre-pandemic levels — Executives reject calls from Ping An to split business between east and west amid rising geopolitical tensions.
- Beijing fears social unrest from property crisis — Bank of England considers biggest rate rise for more than 25 years.
- How foreign money is still fuelling abuses in Xinjiang — Plus, the world reacts to the ISSB’s draft standards.
- Investors pressure UV protective gear maker Beneunder to downsize HK listing — Company is under scrutiny over its advertising spending for products protecting ‘whiter’ skin.
- Chinese anger over Taiwan visit grows after Pelosi departs on Asia tour — Stop at self-ruled island unconfirmed as US House Speaker jets off for Singapore, Malaysia, South Korea and Japan.
- UG Investment steps outside greater China as risks of Taiwan conflict grow — $4bn hedge fund’s new base will offer haven against invasion and tap south-east Asia markets.
- China’s ‘dim sum’ bond sales surge on demand from domestic investors — Scheme allowing mainland funds to access offshore renminbi debt in Hong Kong spurs new issuance.
- Evergrande misses deadline for $300bn debt restructuring plan — Chinese real estate developer’s update lacks concrete proposal for investors on liabilities.
- Esprit bets on economic rebound with ambitious global comeback — Chief executive says the worst may be over for fashion retailers despite soaring inflation.
- UK plc is cutting ties to China, says CBI boss — New alliances will be needed in post-Brexit Europe to offset souring trading links with Beijing, warns Tony Danker.
The New York Times
- A Pelosi Trip to Taiwan Would Test China’s Appetite for Confrontation — Xi Jinping has long vowed to answer any challenge to China’s claim to Taiwan. But current economic and political forces may make him unlikely to court a crisis.
- Nancy Pelosi Headed to Singapore, Silent on Taiwan — President Biden’s aides said the speaker was expected to proceed with a plan to visit Taiwan, the prospect of which has jangled nerves in both Beijing and Washington.
- Debris From Uncontrolled Chinese Rocket Falls Over Southeast Asian Seas — Space watchers had tracked the 23-ton rocket stage’s path in Earth orbit this week because of the slight possibility that it could come down over a populated area.
- Climate Bill ‘Transformative’ for Auto and Energy Industries — The Senate’s proposal aims to accelerate electric car sales and promote domestic battery manufacturing at China’s expense.
Caixin
- Cover Story: Why Southeast Asia Is a Battleground in the Global China-U.S. Rivalry — The vast, diverse region of emerging markets is shaping up as a key geopolitical and economic battleground, but it may also offer opportunities for Sino-U.S. collaboration, analysts said.
- Exclusive: Chinese Insurer PICC Set to Promote Tech Head to Vice President, Sources Say — Zhang Jinhai, who was recently appointed to the state-owned insurer’s Communist Party committee, is currently chief of the company’s tech division.
- China’s Nio to Open First Overseas Plant in Hungary — The EV-maker is building a facility for producing power charging and battery swap stations.
South China Morning Post
- China’s foreign businesses adapt by looking inward for talent as zero-Covid keeps expats away — Even in cities without major coronavirus lockdowns, including Hong Kong, ‘trust issues’ are rife among foreigners, and many do not intend to return until zero-Covid restrictions are eased.
- For America’s next generation of China experts, the challenges go beyond language and country access — Sagging interest in studying ‘most serious competitor’ impedes Biden administration’s goals amid tense bilateral relations.
- Thousands of Shanghai’s small businesses struggle to survive as virus curbs remain a stumbling block — Several small businesses in China’s most developed city are looking at alternatives to deal with Covid-19 pandemic curbs that continue to affect their livelihood.
Nikkei Asia
- Satellite photos show China’s new nuclear test site in Xinjiang — Experts ask whether a nuclear arms race with the U.S. is underway.
- China’s top tech groups on track for worst-ever quarterly results — Alibaba, Tencent expected to post negative revenue growth in virus-hit economy.
- China touts ‘live-fire’ exercise amid Pelosi’s possible Taiwan visit — PLA drill near Pingtan islands follows Beijing’s warning to U.S. House speaker.
Bloomberg
- Tesla Inks Battery Materials Deals With Two China Suppliers — Tesla Inc. has signed new long-term deals with two of its existing Chinese battery-materials suppliers, the latest move by automakers to secure supplies amid intensifying competition.
- China’s Huge Trade Surplus Counteracts Outflow Pressure from Fed — China’s massive trade surplus helped to offset capital outflows in the first half of the year, anchoring its balance of payments even as the Federal Reserve’s aggressive interest rate hikes fuel outflows from developed and emerging markets alike.
- China Banks May Face $350 Billion in Losses From Property Crisis — China’s banks face mortgage losses of $350 billion in a worst-case scenario as confidence plunges in the nation’s property market and authorities struggle to contain deepening turmoil.
Reuters
- British businesses turning away from China, industry group says — British businesses are cutting ties with China due to concerns about political tensions, a shift that is likely to stoke inflationary pressures, the head of the Confederation of British Industry (CBI) said in an inter
- view.
- U.S. considers crackdown on memory chip makers in China — The crackdown, if approved, would involve barring the shipment of U.S. chipmaking equipment to factories in China that manufacture advanced NAND chips.
- HSBC says conflict of interest probably prevents appointing Ping An to board — HSBC is unlikely to appoint an executive of its biggest shareholder Ping An Insurance Group of China to its board due to a conflict of interest, HSBC Chief Executive Noel Quinn told reporters on Monday.
Other Publications
- The Washington Post: How Joe Manchin’s change of heart could revive the U.S. solar industry — An industry on the skids is suddenly positioned for a major resurgence.
- Politico: Back to the Future: Industrial Policy Makes a Comeback — Biden is touting a massive bill to subsidize computer chip manufacturing in the U.S. But the history of similar government interventions is spotty.
- Foreign Affairs: China on the Offensive — How the Ukraine War Has Changed Beijing’s Strategy. By Bonny Lin and Jude Blanchette