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
- Auto Makers Shift to Lower-Cost Batteries for Electric Vehicles — The iron-based batteries are commonly used in China, but there are trade-offs.
- Ant’s Consumer-Lending Unit to Raise $1.5 Billion in Scaled-Down Capital Plan — Chongqing Ant Consumer Finance lines up new investors after Chinese state-backed firm pulled out of earlier fundraising plan.
- China’s Economy Takes a Deeper Hit as Retail Sales Turn Negative — Fresh signs of China’s slowing growth add to fears that the worst is yet to come for the global economy.
- Metals Rebound Fueled by Possible China Reopenings — Prices for industrial metals including copper, aluminum had retreated from 2022 highs, but prospect of greater demand from China has sparked recent gains.
- To Compete With China, India Might Need to Open Up to It — Inviting in Chinese companies would help India scale up electronics manufacturing, despite geopolitical tensions.
The Financial Times
- Sunak softens UK stance towards China — Prime minister says position is still ‘highly aligned with our allies’ and does not rule out arming Taiwan.
- Chinese city tiptoes away from zero-Covid — Some see Shijiazhuang’s loosening of pandemic restrictions as a test case for China’s reopening.
- Foreign companies adopt ‘China for China’ strategy — Beijing’s coronavirus restrictions may have hit business optimism, but some groups are investing more.
- While the world fights inflation, China’s problem is deflation — Zero-Covid policy has left the world’s second-largest economy out of sync with its peers.
- China’s offshore ‘police service stations’ spark European alarm — Law enforcement set up posts to help citizens with paperwork and press fugitives to return.
- Top European chip companies seek stability amid US-China dispute — Businesses caught between Washington and Beijing as export controls complicate global supply chains.
- Jack Ma’s Ant pushes on with reduced fundraising effort — Restructure is latest attempt to revamp business since blockbuster IPO was called off amid Beijing crackdown.
- Chinese stocks extend gains after Biden-Xi meeting at G20 — Burst of optimism comes as strict pandemic policies ease and property sector receives financial support.
The New York Times
- Beijing Signals Optimism for U.S. Ties After Biden-Xi Meeting — An upbeat photo in China’s main newspaper and comments by the foreign minister suggested that Beijing believes its relationship with Washington could improve.
- With Tensions Mounting, Biden and Xi Try a Warmer Tone — The American and Chinese leaders invoked years of personal contact as they met before the G20, seeking to pull back from outright conflict on a host of issues.
- Blinken to Visit China in 2023 After Biden and Xi’s Meeting — The trip is aimed at keeping the lines of communication open and having frank exchanges about important issues at senior levels in order to avoid conflict.
- U.S. and China Restart Climate Talks — Discussions about combating climate change between the world’s two largest economies, and two biggest emitters of greenhouse gases, had been frozen since August.
- Hong Kong Demands Inquiry After Protest Song Is Played Before Rugby Match — “Glory to Hong Kong,” popular among pro-democracy protesters in 2019, was broadcast instead of the Chinese national anthem.
Caixin
- In Depth: The Secrets Behind a Chinese Banking Superstar’s Fall — The unmaking of former China Merchants Bank chief Tian Huiyu may be rooted in his equity investments in electric-vehicle battery giant CATL.
- State Clearing House Sets Standards for China’s $200 Billion Green Bond Market — The new system offers instructions on disclosing information about projects and their environmental benefits.
- China Regulators Roll Out Property Rescue for Embattled Developers — PBOC and banking watchdog release 16-point financial plan to help real estate companies secure financing to finish construction projects.
South China Morning Post
- China’s semiconductor output posts biggest ever monthly decline in October amid weak demand, fresh US tech export controls — October saw the largest single-month decrease in semiconductor manufacturing output on the mainland since records began in 1997.
- China’s defence minister tipped to lead talks with US military, but sanctions on likely successor may pose early challenge — Wei Fenghe is expected to lead the resumption of dialogue with his US counterpart Lloyd Austin before Li Shangfu takes over in March.
- Chinese-born AI specialist Ma Yi to swap California for Hong Kong to lead data research institute — Scientist is expected to take a year-long sabbatical from University of California, Berkeley to lead the new Institute of Data Science at Hong Kong University.
Nikkei Asia
- Xi told Biden that China rejects nuclear war in Ukraine — Wang Yi says Chinese leader raised use of anti-secession law on Taiwan.
- BMW commits $1.4bn to expand EV battery output in China — Electric vehicle sales surge in country even as overall auto volume dips
- Xi searches for bad-loan solution that does not hinder growth — Can president strike a balance to prevent the collapse of small companies?
Bloomberg
- China Has Shot at Seizing 60% Share of Global EV Sales This Year — Longer-range models and surging demand for plug-in hybrids are contributing to the country becoming even more dominant.
- Global Exodus From China Bonds Extends Amid Post-Congress Rout — Global investors reduced their holdings of China government bonds in the onshore market for a ninth-month running in October amid concerns over policy uncertainty spurred by President Xi Jinping’s consolidation of power.
- China Climate Advisers Say More Coal Needed for Energy Security — China’s plans to add to its world-leading fleet of coal power plants are a short-term Band-Aid to address energy security concerns and don’t represent a shift in emissions policies, according to members of the team representing the nation at the COP27 summit.
- Xi’s Three Big Pivots Rescue China Markets From Downward Spiral — After Chinese President Xi Jinping set himself up to rule for life last month, markets plunged as investors braced for years of more ideological rule. Since then, however, he’s displayed a newfound pragmatism.
- Xi Tells Dutch PM to Avoid Decoupling Amid US Pressure on Chips — President Xi Jinping urged Dutch leader Mark Rutte to avoid “decoupling” as the US pressures the Netherlands to avoid selling high-end chips to China.
Reuters
- Worker at Canada’s largest electricity producer charged with spying for China, police say — An employee at Canada’s largest electricity producer Hydro-Quebec who was involved in researching battery materials has been charged with espionage for allegedly trying to steal trade secrets to benefit China.
- China’s Tencent starts new round of layoffs – sources — Chinese tech giant Tencent Holdings has begun a new round of job cuts targeted at its video streaming, gaming and cloud businesses, four sources close to the matter said.
- EV battery makers race to develop cheaper cell materials, skirting China — U.S. and European startups are racing to develop new batteries using two abundant, cheap materials — sodium and sulfur — that could reduce China’s battery dominance, ease looming supply bottlenecks and lead to mass-market electric vehicles.
Other Publications
- The Economist: A radical shift in China’s property and pandemic policies — Investors cheer, even if much remains uncertain
- The New Yorker: Did Joe Biden and Xi Jinping Lower the Risk of War Over Taiwan? — The first meeting between the two heads of state ended with no concessions on either side, but it represented a positive step at a precarious moment in U.S.-China relations. By Evan Osnos
- The Globe and Mail: RCMP lays historic first charge of economic espionage against former Hydro-Québec researcher — RCMP have laid the first economic-espionage charge in Canadian history against a researcher in Quebec who is accused of obtaining trade secrets for the benefit of China.
- The Globe and Mail: Opinion: Defending our elections from Chinese interference should be a nonpartisan cause — Prime Minister Justin Trudeau was asked by Global News reporter Mackenzie Gray if he plans to bring up allegations of China’s interference in Canadian elections with Chinese President Xi Jinping at the upcoming G20 summit. Mr. Trudeau demurred.
- MIT Tech Review: Tencent wants you to pay with your palm. What could go wrong? — Recent technological advances have enabled Chinese companies to use palm-print recognition technology in everyday settings. But they still need to answer looming ethical and practical questions.