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
- Why Xi Jinping Reversed His Zero-Covid Policy in China — A wave of protests coupled with urgent pleas from many corners of the government finally prodded the leader to scrap the strict lockdown system he had touted throughout the pandemic.
- WHO Says China Is Undercounting Covid Deaths, Asks for More Reliable Data — Agency’s chief says testing requirements adopted by some countries for travelers from China are understandable.
- China’s Service Sector Contracts Amid Covid Surge, Survey Shows — Activity slows for the fourth month, according to the Caixin PMI, but business owners are most bullish in almost 18 months after pandemic- virus controls end.
- EU Members Encouraged to Require Pre-Travel Covid Tests for China Passengers — Caution remains among some member states about demanding negative tests 48 hours before departure.
- Tesla’s China Deliveries Fell Sharply in December Despite Discounts — Number of cars shipped to customers from Shanghai gigafactory dropped almost by half from November.
The Financial Times
- China and Hong Kong to reopen border as Beijing drops zero-Covid curbs — Daily quota of about 60,000 crossings each way comes into effect from Sunday.
- How serious is the threat of new Covid-19 variants? — A surge in cases after China lifted restrictions has sparked concerns that a dangerous new strain could emerge.
- Artist Liu Kuo-Sung on his 70-year career marrying east and west — Born in mainland China but schooled in Taiwan, he has won fans and ruffled feathers across the strait.
- China EV makers worried by end of subsidies and chip crunch — Bumper sales year gives way to uncertain outlook for world’s biggest market.
- Foxconn’s biggest Chinese rival wins premium iPhone contract — Luxshare Precision has capitalised on outbreak of worker protests at Taiwanese competitor’s factory.
- US to send trade and economic delegation to Taiwan — Talks intended to bolster commercial relationship with Taipei that has been opposed by China.
- China and Philippines vow to handle maritime tensions with ‘friendly consultations’ — Xi Jinping and Ferdinand Marcos Jr agree to bolster economic ties in a meeting in Beijing.
- China has under-represented its number of Covid deaths, says WHO — Global health body issues its strongest rebuke yet of Beijing’s handling of the pandemic.
The New York Times
- How a Texas Border City Is Shaping the Future of Global Trade — Laredo, across from Mexico on the Rio Grande, is primed to become one of the world’s most important land ports as American companies reduce their reliance on factories in Asia.
- E.U. Urges Nations to Require Negative Covid Tests for Travelers From China — In a diplomatically fraught move, the bloc advised its 27 members to put restrictions in place as Chinese tourists prepare to return to global destinations.
- Opinion: America’s Covid Test Requirement For Chinese Is a Farce — The policy for Chinese travelers relies on racial bias rather than science. By Frankie Huang
Caixin
- China’s Railway Investment Falls for a Third Straight Year — Funding dropped 5.1% in 2022 as the country wraps up construction on major lines of the world’s largest high-speed rail network.
- BYD Says It Can’t Judge How Many Cars It Will Sell This Year — The Chinese automaker cited uncertainties over supply chains and consumer demand stemming from the Covid-19 pandemic.
- Unigroup Seeks Full Control of IT Joint Venture With Hewlett Packard — Multibillion-dollar buyout of H3C would bolster Unigroup’s profits, analysts project.
South China Morning Post
- China, Philippines to set up alert system for rocket launches after space debris row — They also agreed to ‘explore potential cooperation’ in areas such as meteorology and space tracking, in joint statement signed by Xi Jinping and Ferdinand Marcos Jnr.
- US computer giant Dell to replace all China-made chips in its products by 2024 amid tensions between Beijing and Washington — Dell wants all of the chips used in its products, including those made by foreign suppliers in China, to be sourced from outside the country.
- India’s share of global iPhone production forecast to match China’s by 2027 as Apple steps up supply chain diversification — That forecast reflects how disruptions in China’s manufacturing industry have prompted global brands like Apple to quickly establish new supply chains across Asia.
Nikkei Asia
- Dell looks to phase out ‘made in China’ chips by 2024 — ‘This trend looks irreversible,’ supplier exec says of tech industry’s production shift.
- Marcos snags $22.8bn in investment pledges on China trip — South China Sea dispute takes center stage in state visit to Beijing.
- Conviction of Maldives’ pro-China Yameen overshadows election — Ex-president and current candidate’s corruption appeal has high geopolitical stakes.
Bloomberg
- German Starts Law on Ethical Supply Chain, Plans Penalties for Violation — Germany is putting its money where its mouth is on ensuring supply chains are ethical, with companies now facing penalties if they fail to ensure their partners don’t engage in harmful practices and exploitation.
- Germany, Sweden Add Covid Test Rules for Flights From China — Germany, Sweden and Belgium are imposing new Covid testing requirements on passengers traveling from China after the bloc recommended the step to cope with a surge in cases.
- What Is the New ‘Kraken’ Covid Variant XBB.1.5 and Why It’s Causing Concern — A new Covid variant that was first detected last year has quickly become the dominant strain in the US — and picked up a creepy moniker along the way.
Reuters
- As travel resumes, China’s luxury shoppers ask: Paris or Hainan? — An end to China’s travel curbs this month is expected to revive demand in the global luxury retail market, which has been starved of mainland visitors for three years, but many consumers now see more reasons to do their high-end shopping locally.
- Tesla, EV rivals absorb costs after China pulls plug on subsidy — The government originally planned to phase out the support scheme for EV makers and battery suppliers by the end of 2020, but extended it until the end of December in response to the pandemic.
The Economist
- How China’s reopening will disrupt the world economy — A tale of death, growth and inflation.
- China is overwhelmed, yet an even bigger covid wave may be coming — The transition back to normal life is proving difficult.
- The party plans to avoid a zero-covid reckoning — Like Chairman Mao, Xi Jinping seems to believe that China’s rise trumps individual suffering.
Other Publications
- The Washington Post: Tracked, detained, vilified: How China throttled anti-covid protests — After widespread demonstrations, China relaxed its strict covid controls. But on the protesters themselves, the government unleashed a police state brimming with new surveillance technology.
- The Washington Post: Opinion: The planet’s future depends on a stable China-U.S. relationship — I leave the United States more convinced that the door to China-U.S. relations will remain open and cannot be closed. By Qin Gang
- The Guardian: Australian coal industry says China market matters less than before, even if import ban ends — Queensland Resources Council says industry would welcome restrictions easing but new long-term customers since found elsewhere in Asia.
- Associated Press: US moves to reopen Solomon Islands embassy to counter China — The State Department has informed Congress that it will establish soon an interim embassy in the Solomons’ capital of Honiara on the site of a former U.S. consular property.
