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
- Audits of Chinese Companies Are Highly Deficient, U.S. Regulator Says — PCAOB says its first inspections in China and Hong Kong found issues in seven of eight audits reviewed.
- $10,000 an Hour Bought Inside Line on China—and Now Risks Jail — Capvision offered the expertise of its consultants to international banks and investment funds, but a raid broadcast on state TV shows risks of selling Chinese information.
- Chinese Consumer Inflation Slows to Lowest Level in Two Years — The price weakness is likely to raise questions about the sustainability of China’s consumer rebound.
- Video: How the U.S. Is Trying to Block China’s Control of Ports Around the Globe — China has spent billions expanding its port network. U.S. officials warn it’s a security concern.
The Financial Times
- China pours cold water on bilateral meeting with US defence secretary — Stand-off is latest obstacle to top-level dialogue between Washington and Beijing.
- Study reveals scale of ‘science scam’ in academic publishing — One in 5 biomedical articles may contain faked data, with Chinese paper mills leading way.
- China deepens ties in Latin America with Ecuador free trade agreement — Beijing is a major financial backer in Andean nation despite US efforts to counter its influence.
- Italy to hold talks with China about exiting Belt and Road Initiative — Prime minister Giorgia Meloni says ‘debate is open’ on whether to leave Xi Jinping’s foreign investment programme.
- VW investors demand independent audit of China car plant — German carmaker faces human rights and climate protesters at turbulent annual meeting.
- KPMG and PwC faulted by US regulator over Chinese audits — Examinations are the first by accountancy watchdog under new agreement with Beijing.
- Eskom chief visits China as South Africa seeks to shore up ailing power monopoly — Intense rolling blackouts set to worsen as electricity demand rises during winter period.
- Nissan chief warns on threat posed by Chinese rivals’ rapid pace of production — Chinese groups have put Japanese and international carmakers under pressure, says Makoto Uchida.
- Opinion: The G7 struggles to find unity over China’s economic bullying — This month’s summit will show the rich democracies’ club displays a range of attitudes about how to tackle coercion. By Alan Beattie
The New York Times
- ‘De-Americanize’: How China Is Remaking Its Chip Business — Seven months after Washington unveiled tough curbs, Chinese companies are doubling down on homegrown supply chains and drawing billions in cash from Beijing and investors.
- Kiel-Qingdao Sister City Plan Stalled Amid German Wariness of China — The German port of Kiel and the Chinese port of Qingdao have a lot of things in common. Unfortunately, submarines are among them.
Caixin
- U.S. Audit Watchdog Finds Deficiencies in First China Inspection — Error rates were ‘unacceptable’ in audit work by PwC and KPMG on U.S.-traded Chinese companies, Public Company Accounting Oversight Board reports.
South China Morning Post
- US consulting giant Bain & Company offers China staff 6 months of voluntary leave, sources say — The American consultancy giant is ‘cooperating as appropriate’ with authorities after Chinese police last month visited its offices in Shanghai and questioned its staff.
- Are US-China ties warming as ambassador Nicholas Burns sits down with commerce minister Wang Wentao? — Series of meetings this week during ambassador Nicholas Burns’ China trip represent the highest-level public engagements between the two powers since relations soured over suspected a Chinese spy balloon.
- Chinese President Xi Jinping signals fresh drive to move state institutions out of Beijing — During a tour of Xiongan New Area, the Chinese leader calls for greater efforts to move government, academic and financial headquarters out of the capital.
Nikkei Asia
- China’s state firms pay more as public-private wage gap hits record 89% — Those in resources, infrastructure benefit more than factories from uneven recovery.
- Analysis: China’s messaging machine tamps down Taiwan war hype — Wolf-warrior propaganda proves too effective, leaving authorities rattled.
- Hong Kong newspaper ousts political cartoonist after criticism — ‘Zunzi’ booted from Ming Pao after 40 years as press freedom in city wanes.
Bloomberg
- The Plot to Steal the Other Secret Inside a Can of Coca-Cola — Shannon You was a good chemist, a bad colleague—and a thief. When she tried to use the $120 million technology she stole, she got played.
- JD’s CEO Exits After a Year at the Helm as Growth Dwindles — JD.com Inc.’s chief executive officer is departing after about a year at the post, a surprise move that coincides with the Chinese internet retailer’s slowest pace of growth on record.
- Biden Presses for China Contact Despite Risks of Losing Leverage — The Biden administration is trying to make it hard for China to say no to engagement by seeking a flurry of meetings and phone calls, a strategy aimed at easing tensions and painting President Xi Jinping as recalcitrant if he refuses.
- Germany Mulls Investment Screening to Reduce Reliance on China — Germany is eyeing stricter controls on companies’ businesses in China, Economy Minister Robert Habeck was cited by Handelsblatt as saying in Berlin on Wednesday.
Reuters
- Why the US delayed China sanctions after shooting down a spy balloon — The U.S. State Department held back human rights-related sanctions, export controls and other sensitive actions to try to limit damage to the U.S.-China relationship.
- US conducts raids at two properties of China’s Jinko Solar — A spokesperson for the Homeland Security Investigations arm of DHS, Mike Meares, said search warrants were executed in Florida and California on Tuesday as part of an ongoing federal investigation.
- China says willing to work with U.S. on audit deal as challenges loom — China’s securities watchdog on Thursday said that it was willing to work with its counterparts in the United States to promote audit regulatory cooperation and safeguard the rights and interests of global investors.
The Economist
- Is Chinese power about to peak? — The country’s historic ascent is levelling off. That need not make it more dangerous.
- How soon and at what height will China’s economy peak? — Estimates vary, depending on assumptions about population, productivity and prices.
- The meaty mystery at the heart of China’s economic growth — What kebab consumption says about the country’s consumption.
- China learns to manage decline — Lessons from Yichun, a Chinese city where children are a rarity.
- The fall of empires preys on Xi Jinping’s mind — As economic growth slows, so will the president’s anxiety.
Other Publications
- The Information: The Hardcore Tesla Executive Who Gets Stuff Done for Elon Musk — Tom Zhu helped put Tesla on the map in China. Now Elon Musk is depending on him to mass-produce its most high-profile new vehicle in years—the Cybertruck—and to crank out new factories to hit an eye-popping goal of making 20 million Tesla vehicles a year.
In Case You Missed It
- The Wire China: The Solar Struggle — Despite a decade of U.S. solar trade policy aimed at China, the U.S. is left without any good options.
- The Wire China: Tesla Tom — Can Tom Zhu replicate Tesla’s China success abroad?
