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
- China’s New Top Troubleshooters — A rundown of government posts for Xi Jinping’s new handpicked leadership lineup as it confronts economic, diplomatic challenges.
- China’s Military-Spending Growth to Accelerate to 7.2% This Year — Budget calls for fastest increase since 2019 as tensions grow over Taiwan.
- China Sets Conservative Growth Target as Challenges Loom — Officials aim for around 5% GDP growth this year, the lowest target in a quarter-century.
- China to Create New Top Regulator for Data Governance — Beijing’s plan to streamline regulatory structure would bring all data-related issues under a single agency.
- China Favors Chips, AI Executives Over Internet Tycoons at Top Political Meetings — Seats once reserved for executives of internet companies are redistributed as Beijing braces for technological challenges from Washington.
- China’s Power in Emerging Markets Creates Headache for Global Investors — Concentration of Chinese stocks and bonds in major benchmarks sparks concern.
- India, Wary of China, Expands Trade Ties With the West — The nation is gradually pivoting from its nonaligned, protectionist history, though obstacles remain.
- China, Like Russia, Is Pressured by Reinvigorated U.S. Alliances — Japan’s rapprochement with South Korea is latest step influenced by Beijing’s rising military might.
- Elon Musk’s Latest Reveal? His Tesla Management Team — Billed as a glimpse into Tesla’s future, Investor Day was used as an opportunity to spotlight leadership bench.
- Pentagon Sees Giant Cargo Cranes as Possible Chinese Spying Tools — Equipment at U.S. ports could pose risk of surveillance or sabotage, officials say; China says concerns are ‘paranoia-driven’.
- Texts From Crypto Giant Binance Reveal Plan to Elude U.S. Authorities — The exchange was intertwined with an American firm portrayed as independent. Now, regulators are circling.
The Financial Times
- China’s military spending to outpace economic growth — Huawei is lobbying to build a 5G network in south-east Asia.
- China defence: Taiwan tensions lift arms makers as economy slows — Investors have little to worry about over budget cuts, though some will have ethical qualms about Chinese defence stocks.
- Hong Kong political elite pressed to give up western passports — Beijing denied at least one delegate a parliamentary seat because they held a foreign travel document.
- China’s military budget outpaces other spending in shift to security — Defence expenditure to rise by 7.2% in 2023 compared with 5.7% growth in public expenditure.
- China sets 5% growth target to drive economic recovery — National People’s Congress opens with Xi Jinping planning sweeping changes to further centralise power.
- International schools shift to new markets after China boom stalls — Countries such as India, Nigeria and Japan lure global education providers and prestigious UK institutions.
- Chinese regulators probe large Covid-related writedowns — Property developers have led in making provisions, even though home sales are starting to recover.
- Three-day weekends and more time for love: China’s elite dream up policies for Xi — Delegates to annual political gathering starting on Saturday compete to get proposals noticed.
- Can TikTok convince the world it is not a tool for China? — Facing new restrictions and calls to be banned in the US and Europe, the popular app faces a fight for its future.
- US companies re-examining Chinese supply chains, top shipping boss says — Head of France’s CMA CGM cautions businesses are seeking alternative freight routes as political relations sour.
- Opinion: China has a fateful choice to make on Ukraine — A decision to supply Russia with weapons would bring Beijing’s rivalry with Washington to boiling point. By Gideon Rachman
- Opinion: As China’s politicians gather, the ghosts of zero-Covid live on — The country dismantled its precautionary measures as quickly as they sprang up — but not at the National People’s Congress. By Thomas Hale
- Opinion: Muddled engagement with China leaves Xinjiang in the lurch — Toothless sanctions and empty agreements with Beijing fail to improve human rights in the region. By Yuan Yang
The New York Times
- To Prepare for a Pacific Island Fight, Marines Hide and Attack in California — A 10-day exercise gave a new Marine regiment the chance to test war-fighting concepts the Pentagon may one day need in a battle with China.
- China’s Economy Will Expand About 5 percent, A Cautious Target — Last year China’s economy grew 3 percent, one of its worst performances. Now leaders are expecting a revival, but it will rely partly on public spending.
- After China’s Winter of Discontent, Xi Jinping Sets Sights on Growth and Power — China’s government said it expected the economy to grow “around 5 percent” this year. A meeting of the top legislature will reinforce Mr. Xi’s grip on power.
- What to Expect at China’s National People’s Congress as Xi Tightens Grip — When its top legislature meets, Beijing will lay out a vision for reviving economic growth and strengthening the Communist Party’s grip after a chaotic reopening.
- Biden and Germany’s Scholz Meet Amid Concerns Over Ukraine and China — President Biden said he and Germany’s chancellor, Olaf Scholz, would work in “lock step” to provide military support to Ukraine.
Caixin
- Premier Li Highlights Financial, Real Estate Risks in Final Report to China’s Top Legislature — The strong focus on risk prevention shows the government is concerned about overstimulating the economy in the short term, say analysts at Morgan Stanley.
- Cover Story: TikTok’s Chinese Twin Is Taking On Alibaba and Meituan for E-Commerce Market Share — Like ByteDance’s TikTok, the Douyin video sharing app deploys live-streaming in the competition for consumers in the online marketplace.
- Editorial: To Boost Confidence, Actions Speak Louder Than Words — As a Western saying goes, “one action speaks louder than a dozen of plans.” A strong implementation of the reform and opening-up policies is pivotal to restoring the private sector’s confidence and stabilizing its expectations.
South China Morning Post
- PDD’s Temu budget shopping app to enter Australia and New Zealand after strong sales growth in US, expansion into Canada — Temu’s latest expansion initiative shows how next-generation Chinese e-commerce apps have become an online retail force in other large consumer markets.
- Xiaomi electric cars will see mass production by the first half of 2024, founder Lei Jun says — China’s top smartphone brand plans to enter the EV market with its first product next year, CEO Lei Jun told the National People’s Congress on Sunday.
- Whatever happened to Likonomics? Chinese Premier Li Keqiang heads for the exit — Li promoted the private economy, foreign investment and simpler government procedures – even when his power waned.
Bloomberg
- Buffett-Backed BYD’s $18 Billion Rout Shows Tesla’s Price War Heats Up in China — A Tesla Inc.-inspired price war among electric vehicle makers in China is taking a toll on even the most resilient players, as evidenced by BYD Co.’s staggering $18 billion drop in the past month.
- Shein’s Lead Under Fire as Chinese-Owned App Tops US Charts — It took Shein a decade to catch up to Inditex SA’s Zara as the world’s top fast-fashion retailer. Now, a new online upstart wants to surpass Shein — at least on one important measure — within a year.
- US Lawmakers Step Up Push to Ban TikTok With Bill This Week — US Senate Intelligence Committee Chairman Mark Warner plans to introduce a bill this week to allow the US to systematically ban Chinese technology, including services like TikTok, he told Fox News on Sunday.
- EV Charging Supplier Sees US Raising Costs by Cutting Off China — Zerova’s manufacturing costs in America are as much as 80% higher versus Asia.
Reuters
- Factbox: Chinese chipmaking equipment manufacturers filling void left by U.S. export restrictions — The United States is working to expand its restrictions on the export of chipmaking equipment to China by securing cooperation with the Netherlands and Japan, forcing Chinese chipmakers to turn to domestic suppliers such as those listed below.
- Analysis: China’s chip sector needs more than state money to dull impact of US restrictions —
- The government has earmarked $140 billion that could include subsidising the purchase of domestically produced chipmaking equipment, Reuters reported in December, likely benefiting manufacturers such as China’s sole semiconductor lithography specialist, Shanghai Micro Electronics Equipment Group (SMEE).
- China to double down on push to be self-reliant in tech, premier says — China’s science and technology policies should aim to build its strength and self-reliance, while the role of the government in pooling resources for key technological breakthroughs needed to be leveraged better, Premier Li Keqiang said on Sunday.
Other Publications
- The Economist: Special Report: Frontline Formosa — Taiwan’s fate will, ultimately, be decided by the battle-readiness of its people, says Alice Su.
- The Economist: Interpreting China’s unambitious growth target — The government has played it safe with the economy—and its own reputation
- FOX Business: Billionaire investor issues warning over China’s ‘crazy’ business tactic: Be ‘very careful’ — Mark Mobius claims China not allowing investment outflows, ‘restricting’ his HSBC account.
In Case You Missed It
- The Wire China: Born to Run — After capitalizing on China’s crypto boom, Binance CEO “CZ” fled China just in the nick of time — and he’s been running ever since.
