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 Ends Taiwan Drills — Taiwan’s opposition party, which favors closer ties with Beijing, sends a delegation to the mainland, angering President Tsai Ing-wen.
- U.S. Accuses China’s Largest Cable Manufacturer of Violating Export Controls — Far East Cable Co. helped Chinese telecoms company ZTE deliver restricted U.S. goods to Iran, the U.S. Commerce Department said.
- In China, Higher Consumer Inflation Masks Weak Demand — Consumer prices rose to the highest level in two years in July, but stripping out surging energy and food prices suggests slowing underlying growth.
- Pelosi’s Taiwan Visit Threatens China-Australia Reset — The two countries recently resumed top-level contacts, suspended under Australia’s previous government.
- Chinese Tech Bulls Load Up, but Doubts Remain — Some investors now sense a buying opportunity after huge selloff.
- SoftBank to Reduce Alibaba Stake, Expects $34 Billion in Gains — Japanese tech investor has been reducing its ties to the Chinese e-commerce company and using holdings to raise cash.
The Financial Times
- China says military exercises around Taiwan complete — PLA confirms it will regularly conduct patrols and drills in area.
- Cathay Pacific delivers upbeat outlook despite $637mn first-half loss — Airline expects positive cash flow in second half of 2022 as Hong Kong eases restrictions.
- Taiwan security officials want Foxconn to drop stake in Chinese chipmaker — Apple supplier’s $800mn investment in Tsinghua Unigroup endangered by rising tensions with Beijing.
- ‘She is the leader Taiwan needed’: softly spoken president draws China’s rage — Beijing was furious with Tsai Ing-wen after she defied warnings and welcomed Nancy Pelosi.
- Opinion: Chinese technology in the ‘Internet of Things’ poses a new threat to the west — US companies are using components from Quectel, Fibocom and China Mobile, but the risk is being largely ignored.
The New York Times
- U.S. Insists It Will Operate Around Taiwan, Despite China’s Pressure — The confrontation threatens to overwhelm President Biden’s efforts to find a series of issues in which the United States and China can work together.
- Biden Signs Industrial Policy Bill Aimed at Bolstering Competition With China — The legislation invests in American chip manufacturing and is part of a streak of legislative successes that President Biden is planning to highlight as the midterm elections approach.
- U.S. Promotes Democracy in Africa as Rival Nations Expand Influence — The Biden administration says the push will bolster African and American interests, including the ability of the United States to compete against China and Russia.
Caixin
- Five Things to Know About China’s Scandal-Struck Chip Industry ‘Big Fund’ — How the multibillion-dollar industrial incubator supported the government’s plan to make China a self-sufficient semiconductor powerhouse
- ‘Big Fund’ Graft Probe Ensnares Three More Individuals — Corruption investigation of China’s multibillion-dollar fund backing the semiconductor industry seems to pick up steam
- China’s Tsingshan Looms Over Tesla’s $5 Billion in Indonesian Nickel Deals — Tesla Inc. has signed $5 billion worth of deals to buy nickel for electric-vehicle (EV) batteries from companies operating in an Indonesian industrial park that’s jointly run by Chinese metals giant Tsingshan Holdings Group Co. Ltd., according to a local government official.
South China Morning Post
- US-India military drills to be held near disputed border with China — Indian army officer confirms joint drill will take place in October, with the announcement coming just days after Chinese media report PLA’s Tibet Military District had conducted live-fire air defence drill.
- China, South Korea make supply chain pledge as Seoul eyes US chip alliance — The vow comes amid concerns that Seoul may risk business ties with Beijing by joining ‘Chip 4’ group with US, Taiwan and Japan.
- Three more China chip fund executives caught in corruption probe into state-backed investments — Beijing’s probe into corruption in the semiconductor industry widened on Tuesday, with three more executives from the state-backed chip industry investment fund under investigation.
Nikkei Asia
- Road to nowhere: China’s Belt and Road Initiative at tipping point — Pakistan, Sri Lanka debt crises threaten Beijing’s regional influence.
- Foxconn stands by China chip deal as cross-strait tensions rise — Public has ‘misunderstood’ nature of Tsinghua Unigroup, says Taiwan tech titan.
- World trade in torture tools flourishes under lack of scrutiny — U.N. weighs first global-level controls, but China and other nations contest remit.
Bloomberg
- Tencent-Backed China Health Information Unicorn Censored Online — A Chinese health information provider valued at more than $1 billion by investors including IDG Capital and Tencent Holdings Ltd. has had at least five of its social media accounts frozen by what appears to be government censors.
- Hong Kong Extends National Security Arrests to Civil Servants — Hong Kong police arrested two civil servants for speech crimes under a colonial-era sedition law, as authorities expand their crackdown on dissent to government workers.
- China Clamps Down on Wind, Solar Farms to Protect Food Supply — Floods, droughts and food-supply snafus are making China more wary of wind and solar developments that eat up farmland.
Reuters
- Analysis: China investors hedge U.S. delisting risk with Hong Kong play — The pace of migration will likely accelerate, as more Chinese firms listed in New York are expected to follow technology giant Alibaba, intent to launch so-called primary listings in Hong Kong.
- China withdraws promise not to send troops to Taiwan if it takes control of island — China has withdrawn a promise not to send troops or administrators to Taiwan if it takes control of the island, an official document showed on Wednesday.
Other Publications
- The Economist: China’s mortgage boycotts are a symptom of a broader crisis — The real threat to developers is falling sales.
- CSIS: China Is the Wrong Industrial Policy Model for the United States — As a new era dawns, it is important to get right both the goals and tools of industrial policy so that it is effective and consistent with international commitments. Otherwise, this change will leave the U.S. economy worse off than before. By Scott Kennedy
