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
- On Basco Island South of Taiwan, U.S. Military Prepares for Conflict With China — Part of largest-ever annual drills with the Philippines focuses on defending strategic Bashi Channel.
- China’s Ambassador to France Says Ex-Soviet States Lack Basis for Sovereignty — France and countries across Eastern Europe condemn remarks from Ambassador Lu Shaye.
- China Seeks to Calm Storm Over Ambassador’s Ukraine Remarks — Beijing says it respects sovereignty of former Soviet republics.
- China Accuses Newspaper Editor of Espionage After Meeting With Diplomat — Family members of Dong Yuyu, an editor for Communist Party’s Guangming Daily, say he isn’t a spy.
- Australia to Reshape Military Amid Growing U.S.-China Rivalry — Officials say they will focus on long-range missiles, base upgrades.
- TikTok Ban Divides Young and Old, Democrats and Republicans, WSJ Poll Finds — Majority of GOP voters support banning Chinese-owned app, compared with 33% of Democrats.
- Nearshoring Shift Brings Production Hurdles Closer to Home — Moving facilities to Mexico or other locations near the U.S. raises questions over costs, supplier networks and logistics, companies say.
- Rise of EVs Drives Mining Deals to Decade High — Mining companies have announced more than $65 billion worth of deals this year in race to add clean-energy metals.
The Financial Times
- China walks back ambassador’s remarks on post-Soviet statehood — Beijing’s envoy to France stoked furore in Baltics by questioning legal status of European countries.
- US urges South Korea not to fill China shortfalls if Beijing bans Micron chips — White House has tried to enlist Samsung Electronics and SK Hynix in its semiconductor battle with Beijing.
- US war games touch nerve in Philippines as tensions flare with China — Remote islands could become front line in possible future conflict over Taiwan.
- Investors weigh up best ETFs to profit from China’s reopening — Funds listed in Hong Kong, mainland China, US and Europe can offer exposure to economic recovery.
- Adidas goes local as it fights to overcome crisis in China — New China boss appeals to Chinese consumers with patriotic clothing lines.
- Toyota pledges to boost local supply chains for electric vehicles in China — New chief Koji Sato feels ‘sense of crisis’ as Japanese carmakers post sharpest sales drops among foreign brands.
- Chinese diplomat draws ire from Baltic nations over statehood remarks — Beijing’s ambassador to France questioned legitimacy of countries formerly in the Soviet Union.
- Europe has to be much clearer when it comes to China — While business leaders still salivate at the size of the Chinese market, the EU will struggle to wield a credible geoeconomic policy.
- ING sues China’s biggest bank over copper trading losses — Dutch lender alleges ICBC failed to collect payment for metals sold to cash-squeezed commodity trader Maike.
- Shifting production from China is impossible, says shipping boss — Beijing’s world trade dominance will make cutting it out of global supply chains a tough task.
- China urges jobless graduates to ‘roll up their sleeves’ and try manual work — State media says university-leavers should put their professional ambitions on hold and consider lower-skilled roles.
- China lashes out against US-Philippines alliance — Decision to grant access to four military bases near Taiwan infuriates Beijing.
- Opinion: How to stop a war between America and China — Washington wants to revive some cold war era practices to ease tensions with Beijing. By Gideon Rachman
The New York Times
- A Chinese Ambassador’s Comments on Ex-Soviet States Draw Ire — The Baltic States summoned Chinese representatives after China’s ambassador to France questioned the sovereignty of countries that declared independence from the Soviet Union.
- China Accuses Liberal Columnist of Espionage After a Lunch With Diplomat — Dong Yuyu was a longtime writer and editor at a top Chinese Communist Party newspaper who had frequently met with foreign diplomats and journalists.
- China Says Chatbots Must Toe the Party Line — The Communist Party outlined draft rules that would set guardrails on the rapidly growing industry of services like ChatGPT.
- Chinese Censorship Is Quietly Rewriting the Covid-19 Story — Under government pressure, Chinese scientists have retracted studies and withheld or deleted data. The censorship has stymied efforts to understand the virus.
Caixin
- Cover Story: Hubris and Heartache: Behind the Tragedy of Beijing’s Deadly Hospital Fire — As night fell on April 18th, darkness engulfed the Beijing Changfeng Hospital. Charred beds and blackened walls lined the wards, a terrible reminder of the horror that had befallen the dozens of dead and injured in one of China’s worst hospital fires in recent years.
- China Moves Step Closer to Unifying Corporate Bond Market Oversight — The country’s economic planning agency will transfer supervision of a type of corporate debt to the securities regulator over the next six months.
- China Loses More of Its Share of U.S. Imports to ‘Low-Cost’ Asian Rivals — Some companies are diversifying their supply chains away from the mainland and Hong Kong due to concerns about rising labor costs, geopolitical tensions and supply chain resilience, according to a research report.
South China Morning Post
- Taiwan in talks with Washington about potential weapons stockpiles on or near island, premier confirms — Chen Chien-jen says Taiwan and the US have been in talks over potential plan since US National Defence Authorisation Act was approved by US Congress in December.
- China’s CPTPP trade aspirations still hinge on bloc’s support as external pressures mount — While Britain reached an agreement last month to join the 11-member bloc, China has seen little progress in its bid to join, even though international trade negotiator Wang Shouwen says it can ‘fulfil relevant obligations’ to membership.
- How a triple whammy of censorship, Covid and Big Tech cuts left China’s media on its knees — At the peak of the Chinese tech boom around 2016, the biggest companies in the sector began to aggressively build up media portfolios in the news and entertainment sectors, but they are now beating a hasty retreat.
- Hong Kong national security: plan to allow prosecutors to appeal judges’ acquittals — Proposal will fill gap in law created by imposition of national security law which allows cases to be tried by panels of judges without juries.
Nikkei Asia
- Japan to subsidize half of costs for lithium and key mineral projects — Push to reduce reliance on China for crucial materials in EV batteries and motors.
- Jokowi squeezes key EV material exports to spur Indonesian industry — U.S.-China tensions give Jakarta opening to pursue nationalist trade strategy.
- Australia seeks to rebalance ties with China after three-year freeze — Foreign minister says Canberra must ‘lower the heat’ on potential Taiwan conflict.
Bloomberg
- Australia Plans Major Changes to Military Amid China’s Build-up — A major government review of Australia’s military readiness has recommended sweeping changes to the defense forces, as the country adjusts to a rapidly changing strategic environment in the Indo-Pacific region.
- Pair of Potential US Presidential Candidiates Start Asia Trips — Two possible US presidential candidates are visiting Asia this week, trips that come as the US steps up efforts to counter Chinese influence.
- China Province Steps Up Its Plead for State Aid on Debt Woes — One of China’s poorest and most indebted provinces is making a stronger push for state help to diffuse its financial risk, after local authorities recently sought to draw Beijing’s attention to the severity of its debt burden.
- HSBC Activist Investor Lobbies Shareholders Ahead of Meeting — An HSBC Holdings Plc shareholder in Hong Kong is lobbying institutional shareholders to vote in favor of a proposal to restructure the lender’s business at its annual general meeting on May 5.
Reuters
- Exclusive: Tesla readies export of Model Y to Canada from China — Tesla has begun producing in Shanghai a version of the Model Y to be sold in Canada this year, the first time it will ship cars to North America from China, according to a person with direct knowledge of the plan and a production memo seen by Reuters.
- China says it respects sovereignty of ex-Soviet states after EU uproar — Several EU foreign ministers had said earlier that comments by ambassador Lu Shaye – in which he questioned the sovereignty of Ukraine and other former Soviet states – were unacceptable and had asked Beijing to clarify its stance.
- Is this solar panel American? Companies eyeing US subsidy await rules — U.S. President Joe Biden’s plan to challenge China’s dominance in solar panel manufacturing hinges in large part on rules his administration will soon release defining what it means for a product to be American-made, according to industry officials.
Other Publications
- The Washington Post: Prominent Chinese journalist faces espionage charges — Chinese journalist Dong Yuyu, a longtime writer and a Harvard University fellow known for his sharp observations on Chinese society, has been arrested on charges of espionage, according to his family.
- Foreign Policy: China’s Reincarnation Monopoly Has a Mongolia Problem — The twin lines of the Dalai Lama and the Jebtsundamba Khutughtu have shaped geopolitics for centuries. By James Millward
- The Guardian: Ashes to ocean: sea burials become China’s solution to crowded cemeteries — Boatloads of relatives carrying biodegradable urns are saying their farewells over water instead of trying to buy expensive and scarce funeral plots.