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
- Inside the Secret Prisoner Swap That Splintered the U.S. and China — Detention of a Chinese executive to stand trial in the U.S. provoked a standoff between global rivals and opened an acrimonious new era.
- Foreign Investors Yanked Billions from Chinese Bonds as Yuan Slumped — Global institutions have cut their holdings of yuan-denominated bonds by more than $90 billion since February.
- China Nods to Even Tighter Ties With Russia in Xi Jinping’s Third Term — Beijing eager to deepen relationship with Moscow ‘at all levels,’ China’s foreign minister says in call with Russian counterpart.
- U.S. Defense Strategy Casts China as Greatest Danger to American Security — Biden administration warns that Beijing is trying to undermine U.S. alliances and presents threat to homeland.
- Taiwan Braces for ‘Grim’ Times After China’s Xi Extends Power — As Beijing takes tougher line on self-ruled island, the situation ‘could turn quite serious,’ Taiwan defense chief warns.
- Japan Considers Buying U.S. Tomahawk Missiles to Deter North Korea and China — Tokyo seeks to develop long-range strike ability quickly, in shift from longstanding caution on defense.
- Hu Jintao’s Removal from China’s Party Congress, a Frame-by-Frame Breakdown — The former Chinese leader’s unusual exit was the only unscripted moment in a tightly choreographed party congress that extended Xi Jinping’s rule.
- Beijing Has Few Good Options to Retaliate for Chip Bans — Extreme nature of the restrictions demands a forceful response—of some kind.
- China’s Covid Fight Disrupts Businesses, Food Supplies as Cases Spread — Foxconn said a small number of workers tested positive, and a theme park in Beijing shut down.
- Covid-19 ‘Most Likely’ Leaked From Lab in China, Senate GOP Report Says — More evidence needed for definitive conclusion on origin of virus, report says; findings seen likely to fuel calls for more probes.
- Supporters of Hong Kong Activist Given Jail Time for Clapping in Court — Pastor and retiree are found guilty of sedition by magistrate who said their actions would bring hatred toward the city’s justice system.
- Video: Biden Administration Identifies China, Russia as Focus of Defense Strategy — U.S. Secretary of Defense Lloyd Austin unveiled the Biden administration’s new defense strategy on Thursday, and identified China as a country “with both the intent to reshape the international order and increasingly the power to do so.”
The Financial Times
- No ‘adults in the room’: Xi catches global investors off guard — Exclusion of moderates from China’s leadership spurs record stock outflows.
- Shanghai business optimism hits record low as Covid controls linger — US chamber of commerce in China’s financial capital says companies are pulling back on investment.
- Biden avoids radical shift in new nuclear weapons policy — Possible move towards lower level of deterrence had been opposed by allies in Europe and Asia.
- China-based AIIB ramps up global development lending — Head of Beijing’s alternative to World Bank says it will maintain suspension of operations in Russia.
- China can use its leverage with Russia to prevent a nuclear war — Beijing is uniquely positioned to help broker an agreement.
- 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 great decoupling with China will reshape markets — Investors should brace for more tensions after Xi strengthens power at party congress.
The New York Times
- What Happened to Hu Jintao at China’s Congress? — We deconstruct video footage of the surprising moment when the former Chinese leader was escorted out of the highly choreographed Communist Party Congress.
- Pentagon’s Strategy Says China and Russia Pose Very Different Challenges — A new document describes the military’s response to a new era in broad terms and guides Pentagon policy and budget decisions, but it lacks details.
- The Biden administration is weighing further controls on Chinese technology. — The United States could extend the powerful export restrictions it has issued on China to areas like biotechnology and the algorithms that power artificial intelligence, an official said.
- Opinion: How China Is Fighting the Chip War With America — President Joseph Biden’s early October decision to impose sweeping export controls aimed at blocking China’s access to advanced semiconductors was eerily timed — a few days before the convention of Chinese Communist Party’s 20th national congress.
Caixin
- Graft Crackdown at China’s Biggest Policy Lender Snares Another Official — Liang Liang, deputy head of China Development Bank investment department, detained Sept. 27 in probe of links to convicted former CDB chairman.
- In Depth: Indonesian Sovereign Wealth Fund’s Blueprint for Growth — The $6.5 billion Indonesia Investment Authority is working to shake the country’s perception as a ‘high-risk’ market.
- Chinese Ammonia Exports Surge as European Gas Shortage Hits Local Production — Sky-high gas prices have compelled European firms to scale back production of the key fertilizer input.
South China Morning Post
- Xi Jinping ally Shi Taifeng to head Chinese Communist Party’s influence machine — As head of the United Front Work Department, Politburo newcomer Shi’s main task is to advance the party’s agenda at home and abroad.
- US companies’ sales forecasts drop to 10-year low in AmCham Shanghai’s 2022 poll, as zero-Covid rules upend operations — The downbeat survey, released as Shanghai still faces sporadic lockdowns, reflects how restrictions have threatened all aspects of business operations in China’s commercial hub.
- China’s private security firms to shield against ‘terrorist sabotage’ as Xi Jinping looks to protect overseas assets — Private security is said to be in the early stages of being useful as a strategic tool for Beijing to project power and protect its interests abroad after President Xi Jinping discussed enhancing overseas protection at the 20th party congress.
Bloomberg
- Adidas, Deutsche Bank CEOs to Visit China With German Chancellor Scholz, VW Boss — German Chancellor Olaf Scholz will lead a delegation of senior business leaders to China next week, including the chief executive officers of Adidas AG, Deutsche Bank AG, Siemens AG, vaccine maker BioNTech SE and Volkswagen AG, according to people familiar with the matter.
- Top Contender for PBOC Governor Named Acting Mayor of Beijing — Yin Yong, who was regarded as a strong candidate to be the next governor of the People’s Bank of China, was named acting mayor of Beijing city, potentially putting him out of the race to take on the job at the central bank.
- Xi’s $6 Trillion Rout Shows China Markets Serve the Party First — China’s marriage of communism and capitalism has for four decades powered the country’s economic rise and lined the pockets of money managers from New York to London and Shanghai. The union was so paradoxical that it was only a matter of time before the two ideologies clashed.
- China Names Beijing Mayor Chen Jining As Shanghai Party Boss — China has named Beijing Mayor Chen Jining the new Communist Party leader of Shanghai, a move that comes as the Asian nation reshuffles key leaders following a congress that President Xi Jinping used to consolidate power.
Reuters
- Biden administration expects deal with allies on China export curbs soon — The Biden administration expects to ink a deal with allies in the near-term to bring them on board with new U.S. rules curbing China’s access to sophisticated chipmaking tools, a senior Commerce Department official said on Thursday.
- Italy will not be dependent on China, minister says — Italy will not be dependent on Chinese trade or technology and will safeguard any sector deemed as strategic, the new industry minister said on Thursday.
- Taiwan urges China to stop sabre-rattling and start talking — China should stop its sabre-rattling against Taiwan and maintain peace and stability, the head of Taiwan’s China-policy making Mainland Affairs Council said on Friday, as Beijing ramped up political and military pressure on the island it claimed as its own.
The Economist
- China and America are barely speaking, though crises loom — A comfortless calm reigns, but a storm is coming.
- China’s problem with female representation is getting worse — Why there are no women on the Politburo.
- Xi Jinping has surrounded himself with loyalists — What will he do with them?
- For Xi Jinping, loyalty trumps ability — China’s president has assembled a top team of yes-men.
Other Publications
- Associated Press: China accused of using overseas bases to target dissidents — China has reportedly established dozens of “overseas police stations” in nations around the world that activists fear could be used to track and harass dissidents as part of Beijing’s crackdown on corruption.
- The Washington Post: Expect more China-related tech crackdowns, U.S. official says — Biden administration is ‘not done’ considering curbs on exports to China, according to a Commerce Department undersecretary.
- Sky News: Chinese embassy issues trade threat to UK over Manchester consulate beating — A spokesman has said the actions of a few risks China and the UK’s trading partnership as he used an Aesop’s Fable to issue a warning and noted how important the relationship is between the UK and China.
