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 Sets October Date for Party Congress Where Xi Jinping Can Extend Power — Chinese leader expected to take norm-breaking third term, maneuver allies into key positions.
- U.S. Business Confidence in China Falls to Record Low, Survey Says — Country’s Covid-19 strategy has supplanted U.S.-China tensions as the top challenge for U.S. companies.
- Chinese Authorities Charge 28 People Months After Restaurant Assault on Women — Caught on security cameras, the incident prompted nationwide outrage on social media; authorities cite gang activity.
- China’s Property Market Has Slid Into Severe Depression, Real-Estate Giant Says — Country Garden, which for years ranked as China’s top real-estate developer, reports 96% drop in first-half profit.
- The Sun Will Keep Shining on Chinese Solar — China’s solar firms face some long-term threats from U.S. policy, but look to benefit from global energy crisis and higher U.S. spending.
- Chinese Police Arrest Hundreds in Rural Bank Scam — Government boosts repayment program for victims after previously being criticized for mishandling protests.
- China’s Pinduoduo Surprises Market With 36% Revenue Rise — E-commerce company catering to less affluent consumers outperforms rivals in a slowing economy.
The Financial Times
- Frustrated Evergrande bondholders push own plan for debt restructuring — Foreign creditors say chair Hui Ka Yan should repay some of $20bn of offshore liabilities from his fortune.
- China property: Country Garden feels frost that will wilt bank returns — Lenders will bear the brunt of the fallout — they are already suffering.
- ‘On a par with the Russians’: rise in Chinese espionage alarms Europe — Western spy chiefs say sophistication of Beijing’s intelligence operations is now comparable to the Kremlin’s.
- Climate envoy John Kerry seeks restart to US emissions talks with China — Diplomat points to global scale of the crisis and the difference the two countries can make by ‘working together’.
- Chinese borrowers pile pressure on banks with early mortgage payments — Affluent property owners cut leverage as liquidity crisis hammers property sector and economy sputters.
- US-China audit deal spurs hunt for devils in the details — Two sides have different interpretations of agreement that could prevent delisting of Chinese companies in US.
- China throws Europe an energy lifeline with LNG resales — Surplus gas eases Russia’s stranglehold but gives Beijing outsize influence.
- Hong Kong investigates block and derivatives trading after Archegos collapse — Implosion of Bill Hwang’s family office a year ago inflicted billions in losses for investment banks.
- Mahathir urges Asean to move towards China after US’s Taiwan ‘provocation’ — Former Malaysian prime minister blames Washington for ratcheting up tensions in region.
- Chinese science park developer struggles to restructure — Bondholders plan legal action against Tuspark in latest example of property meltdown.
The New York Times
- China Sets Key Communist Party Congress for Mid-October — Xi Jinping is poised to win five more years in power at the congress, a choreographed ritual that will offer a glimpse of China’s broad policy direction.
- Lockdowns in China, and North Korea, Deal Double Blow to Bridge City — Shenyang, in China’s northeast, was a hub for North Korean workers and a launchpad for visits to Pyongyang. Covid restrictions have battered its economy.
- China Charges 28 People, Months After Brutal Beating of Women — The attack at a restaurant, captured on video, prompted outraged discussion about misogyny. The government sought to change the topic to gangs.
Caixin
- Caixin Explains: Washington’s Drive to Hobble Chinese Chipmaking — A new law that could force chipmakers to choose between the U.S. and China is just the latest effort to keep the Asian giant from moving up the semiconductor supply chain.
- Two Chinese Policy Banks Invest $43 Billion to Support Infrastructure Stimulus — CDB and ADBC announced disbursements of $30 billion and $13 billion respectively on projects that government hopes will boost flagging growth.
- China to Issue $29 Billion of Special Loans to Finish Housing Projects — Amid spreading mortgage strike over paid-for but undelivered units, three policy banks will dole out credits for local authorities to push project completion.
South China Morning Post
- China’s Communist Party to hold twice-a-decade congress in October — Most important decisions are usually made ahead of the event, with the date announced once the key negotiations are over.
- Country Garden, China’s biggest developer, ‘deeply sorry’ as profits tumble 96 per cent amid struggling property market — ‘We are facing a bitter winter that we have never seen in the history of China housing,’ says CEO Mo Bin, as the country’s biggest home builder reports worst results since 2007.
- China’s plastic problem: lack of circular economy stifling ‘necessary’ reform of high-pollution industry — One of the world’s largest contributors to plastic pollution, China is in urgent need of more efficient methods of plastic recycling and reuse, as economic costs mount into the billions, according to a new study.
- China EV makers including Nio, Xpeng, Li Auto take Covid-19 hit as outbreak closes Chengdu car show five days early — Established makers Nio, Xpeng, Li Auto, as well as emerging brands, see a key opportunity to build buzz for new models curtailed as they strive to compete with market leader Tesla.
Nikkei Asia
- China to hold 20th Communist Party Congress from Oct 16 — State media confirm five-yearly summit where President Xi set to secure 3rd term.
- Solomon Islands lurch toward despotism as China debt deepens — U.S. Navy ships banned from port; Sogavare imposes media controls.
- Hong Kong exodus grows as 140,000 apply for new British visa — Security law drives families away while COVID keeps foreigners out.
Bloomberg
- Biden Administration Preps $1.1 Billion Arms Sale to Taiwan — The Biden administration is preparing to sell $1.1 billion in missiles and radar support to Taiwan, according to an official familiar with the matter, in what would be the largest such transfer in almost two years.
- Electric Vehicles Have China’s Massive Middle Market Surrounded — Manufacturers have been finding success with both mini and large cars and SUVs. The compact and mid-size segments could be next.
- Boeing Wins $2.1 Billion Order From Taiwan’s China Airlines — Taiwan’s China Airlines Ltd. ordered 16 Boeing Co. 787-9 aircraft with options for eight more and conversion rights to a higher-capacity Dreamliner jet, as it looks beyond the pandemic.
- Calb Is Said to Seek Nod for $2 Billion Hong Kong IPO This Week — Calb Co., a Chinese battery supplier for electric vehicle makers, is planning to seek Hong Kong stock exchange approval for its initial public offering in the city as soon as this week, according to people familiar with the matter.
Reuters
- Republican Rubio slams U.S. approval of chip deal with China ties — Republican Senator Marco Rubio on Monday blasted U.S. regulatory approval of a bid by chip intellectual property company Alphawave to purchase U.S.-based OpenFive, over alleged national security risks posed by the buyer’s ties to China’s Wise Road Capital.
- Taiwan president: restraint does not mean it will not ‘counter’ China — Taiwan has been upset by Chinese drones flying very close to islands it controls next to China’s coast, which Tsai said was part of Beijing’s “grey zone” warfare.
- Opinion: Audit deal will leave traders with China dregs — A large swathe of Chinese companies will still leave New York, willingly or otherwise. The remaining constituents could be an uninspiring lot.
Other Publications
- MIT Tech Review: China’s heat wave is creating havoc for electric vehicle drivers — The country is a leader in EV adoption, but extreme weather is exposing weaknesses in its charging infrastructure.
- The Information: Rubio Criticizes U.S. Approval of Chip Deal by Firm With Ties to China — Alphawave’s relationship with Wise Road is controversial.
- Washington Post: Their fruit forbidden in China, Taiwan’s pomelo growers feel squeeze — Citing quality concerns, Chinese customs announced it was suspending imports of Taiwanese citrus fruits, two kinds of fish and hundreds of packaged foods like cookies and instant noodles.
In Case You Missed It:
- The Wire China: Wise Road Capital’s Debut — A look at the new favorite in China’s chip investment space — including why the firm is drawing suspicion internationally.