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
- Germany, France Divided Over Energy Crisis and China — Rift emerges between German Chancellor Olaf Scholz and French President Emmanuel Macron.
- China-Linked Internet Trolls Try Fueling Divisions in U.S. Midterms, Researchers Say — Google cybersecurity arm says activity shows a new interest in sowing discord in American politics, but impact has been minimal.
- Huawei Posts Rare Climb in Revenue as Business Stabilizes — Chinese telecom giant says smartphone-sales declines have slowed and revenue from telecom gear is on the rise despite U.S. sanctions.
- Opinion: China Is About to Fall Into the Middle-Income Trap — By turning away from free enterprise, Xi Jinping ensures that the country’s economy will stop growing.
The Financial Times
- Chinese electric carmakers take on Europe — BYD, Great Wall and Nio among groups with big growth plans.
- German exporters rethink €100bn ‘love affair’ with China — Geopolitical tensions, zero-Covid policy and domestic competition endanger trading relationship.
- Australia rides out Chinese sanctions as exports boom — Expansion in other Asian markets and Beijing’s dependence on iron ore lift trade.
- Netherlands accuses China of operating ‘illegal’ police stations — Dutch foreign ministry investigates reports facilities being used to harass critics of Beijing.
- Foxconn iPhone factory in China reels from Covid outbreak — Beijing’s pandemic restrictions are snarling supply chains and dragging on economic growth.
- US to withdraw permanent F-15 fighter force from Okinawa — Shift to rotational model criticised as sending wrong message to China.
- Opinion: The real corporate cost of decoupling is becoming clear — Asian chip manufacturers and others recognise they might not be able to straddle the Sino-American divide for ever.
The New York Times
- China’s Chest-Thumping Nationalism Now Goes Too Far, Movement’s Godfather Says — Wang Xiaodong, who helped pioneer China’s nationalist bravado, now fends off criticisms of being too moderate, too cozy with the West, even a traitor. “They’ve forgotten,” he said, “I created them.”
- Dutch Are Investigating Reported Illegal Chinese Police Stations — Reports by news media and a human rights group say Chinese police forces opened two offices in the Netherlands that are used to intimidate Chinese citizens.
Caixin
- Exclusive: Ex-Chief of China Merchants Bank Profited on CATL Investments — Tian Huiyu, facing corruption arrest warrant, made a killing on hidden personal stakes in the bank’s early backing of the EV battery giant, sources said.
- Shanghai Plans to Build $221 Million Permanent Quarantine Center on Island — The project will renovate and expand an existing temporary hospital on Fuxing Island in Huangpu River to have 3,009 isolation rooms and 3,250 beds, including 1,300 new beds, the document showed. The construction is expected to be completed in six months.
- Communist Party Appoints New Head of Publicity Department — Li Shulei, a 58-year-old Henan province native and long-time former senior official of the Party School, has become the new chief of the Publicity Department of the Communist Party of China’s Central Committee.
South China Morning Post
- American chip firm Marvell ‘eliminates’ job roles in China amid deepening tech rivalry — Marvell Technology is the latest American semiconductor firm to scale down operations in China, calling the move a ‘remapping’ of its business that will result in the ‘elimination of roles in China’.
- As China’s birth rate drops, authorities call newlyweds about baby plans — In now-deleted Weibo post, social media users say local officials have asked about pregnancy status, conception plans and prenatal vitamins as China faces population crisis.
- Huawei posts small revenue drop in first 9 months without revealing net profit — Huawei Technologies Co said its revenue from January to September dropped 2 per cent from the same period last year.
Nikkei Asia
- China Communist Party officials ‘offered’ to quit top ranks: Xinhua — State-run media says Li Keqiang, Wang Yang made way for younger officials.
- China’s new Communist Party constitution mandates loyalty to Xi — Amendment stops short of cementing leader as ‘core’ of the party.
- KLA estimates up to $900m revenue hit in 2023 from China chip ban — Latest export curb deals blow to major U.S. chipmaking tool suppliers.
Bloomberg
- French, German leaders are working on laws to shield Europe’s e-car makers — French President Emmanuel Macron is looking to enlist German Chancellor Olaf Scholz’s support for a new plan to help European auto makers compete with the US and China, after President Joseph Biden outlined heavy subsidies benefiting electric cars made in North America.
- Huawei Posts Sharp Profit Fall in Year Without Phone Cash Cow — Huawei Technologies Co.’s net income fell about 40% in the first three quarters of this year as the Chinese telecom giant couldn’t revive its cash cow smartphone business and spent heavily on research and development.
- China Rejects Charge It Runs ‘Illegal’ Overseas Police Stations — China denied accusations that it runs “illegal” overseas police stations that a human rights group says are used to track down criminal suspects, saying it is only helping nationals with issues like renewing drivers’ licenses.
Reuters
- Analysis: Xi’s new generals offer cohesion over possible Taiwan plans — Chinese President Xi Jinping’s new generals may have been selected for their political loyalty to him, but those ties could serve at least one vital military purpose in any Taiwan invasion plan: ensuring cohesion and decisiveness.
- China’s Huawei slows its long decline under U.S. sanctions as revenues improve — Huawei posted revenue of 445.8 billion yuan ($62.03 billion)for the first three quarters, 10 billion yuan less than it saw in the same period a year earlier, the company said on Thursday.
- China’s Xi says willing to work with United States for mutual benefit — President Xi Jinping said China is willing to work with the United States to find ways to get along to the benefit of both, Chinese state television reported on Thursday, ahead of a possible meeting with U.S. President Joe Biden in Indonesia.
Other Publications
- PIIE: CHIPS Act will spur US production but not foreclose China — More US semiconductor fabrication plants will be built, US R&D will be accelerated, and advanced chips and chip-making machines will be denied to China, Russia, and other adversaries. However, the Act will not make a material difference to US chip supplies in the next two or three years.
