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.
Paid subscribers automatically have this list emailed directly to their inboxes every day by 10 a.m. EST. Subscribe here.
The Wall Street Journal
- Chinese Exports Fall at Steep Pace — In an indication of how the country’s pandemic restrictions and waning global demand is hitting China’s economy, exports fell in November at the sharpest pace in over two years.
- China Scraps Most Covid Testing, Quarantine Rules — China dropped many of its quarantine and testing requirements and curtailed local officials’ power to shut down entire city blocks, as the country’s leaders accelerate plans to dismantle zero-Covid controls.
- EU Sues China in WTO Over Trade Retaliation on Lithuania — China-Lithuania trade fell 80% this year through October as a result of Beijing’s restrictions, the European Union said.
- China’s Xi Jinping Visits Saudi Arabia Amid Strained U.S. Ties — Xi Jinping is headed to Saudi Arabia on Wednesday for a visit that could deepen the relationship between the world’s top oil importer and top oil exporter.
The Financial Times
- EU challenges China at WTO over Lithuania trade embargo and tech patents — Bloc asks global body to convene panels to rule on two trade disputes.
- China retreats from sweeping zero-Covid policies as economic toll mounts — Government for first time allows some positive cases to home quarantine after trade contracts sharply.
- China risks 1mn Covid deaths in ‘winter wave’, modelling shows — Government faces reckoning over failure to vaccinate elderly and boost ICU capacity
- Beijing allows US export-control checks on Chinese tech companies — Biden administration says China’s commerce ministry has allowed inspections ahead of trade blacklisting deadline.
- US to ‘deepen’ defence ties with Australia in face of China threat — Top military officials and diplomats meet amid rising concern about potential conflict over Taiwan
- Opinion: China’s reopening to reverberate around global markets — Speedy growth could renew commodities and intensify inflationary pressure.
The New York Times
- China’s ‘Zero Covid’ Policy Changes, Explained — The Chinese government ordered officials to cut back on mass testing and hair-trigger regional lockdowns, in a pivot from stringent pandemic rules.
- China Eases ‘Zero Covid’ Restrictions in Victory for Protesters — Beijing’s costly policy of lockdowns has pummeled the world’s second-largest economy and set off mass public protests that were a rare challenge to China’s leader, Xi Jinping.
- China’s ‘Zero Covid’ Policy, in Pictures — Public unrest erupted across the country after years of disruptive restrictions. These photographs give a glimpse of life under those measures.
Caixin
- In Depth: Beijing Stock Exchange Fights to Make Its Mark — On its first anniversary, the bourse, which was set up to help innovative small businesses raise capital, has little to celebrate
- China’s EV-Makers Race to Secure Orders Before Subsidies End — MG and XPeng offer discounts as a more than decade-long incentive scheme is set to end on Jan. 1.
South China Morning Post
- China calls on Japan to shun bloc confrontation, sensitive issues like Taiwan — Ties have been tested in recent years over Tokyo’s tilt to key ally the United States, and a tendency to side with Taiwan on cross-strait issues.
- Tesla offers US$859 discount to Chinese buyers to drum up sales amid a slowing economy — Tesla is offering Chinese customers another discount of 6,000 yuan (US$859) to bolster sales of its Shanghai-made vehicles, six weeks after it cut prices by up to 9.4 per cent.
- Australia’s wine, lobster exporters see no ‘clear reason’ to let China go, despite prolonged trade spat — Australian wine and lobsters firms have been some of the hardest hit since trade bans and tariffs were imposed by Beijing in 2020, but a recent softening in diplomatic relations has raised hopes of a brighter future.
- Opinion: China’s economic rise is in part thanks to its political elites — Western observers tend to attribute China’s rapid growth to market reforms, but this downplays the crucial role of the state as a driver of economic success. China’s trajectory highlights the power of a capable, dynamic political elite to drive prosperity. By Zhang Jun
Nikkei Asia
- China dairy giant Yili on aggressive overseas shopping spree — Investments in New Zealand and at home spurred by upswing in global demand.
- Germany struggles to get China parts to replenish ammo stockpile — Supply of military aid to Ukraine is depleting Germany’s inventory.
- Opinion: China’s property market woes are not over yet — Home sales will not rebound until consumers are freed from zero-COVID worries. By Xia Le
Bloomberg
- China Could Yet See ‘Rebound in Unrest,’ Protest Watcher Says — The videos, photos and first-hand accounts of frustration with government policies continue to flow in despite Beijing’s efforts to ease virus curbs in the wake of widespread demonstrations last month.
- Sinopharm Weighing $4 Billion China TCM Take-Private Bid, Sources Say — The state-backed firm which holds a controlling stake in China TCM, is talking with advisers about a new offer to potentially take the company private.
- China’s Xi Jinping Signals He’ll Press On With Fight Against Corruption — Xi Jinping indicated that an anti-graft campaign that has already ensnared 4.7 million officials will continue well into his third term.
Other Publications
- Reuters: China’s trade suffers worst slump in 2-1/2 yrs as COVID woes, feeble demand take toll — The downturn was much worse than markets had forecast, and economists are predicting a further period of declining exports.
- The Information: Chinese Investment Giant Hillhouse Capital Seeks to Expand Outside China — The devastation of China’s private equity and venture capital sectors, caused by Beijing’s tech crackdown and the country’s economic slowdown, has prompted Hillhouse to look for more deal opportunities abroad.
- The Atlantic: China’s COVID Wave Is Coming — The world’s most populous nation is being forced onto a zero-COVID off-ramp.
- The Associated Press: Dissident artist Weiwei says China unrest won’t alter regime — Ai Weiwei is taking heart from recent public protests in China over the authorities’ strict COVID-19 policy, but he doesn’t see them bringing about any significant political change.
- Foreign Policy: China’s Restive Middle Class Will Be Xi’s Greatest Test Yet — Middle-class people, it turns out, have limited patience for things like intrusive social monitoring and censorship of personal expression. By Howard W. French