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 Sentences American Citizen to Life in Prison for Espionage — Authorities give scant details about the charges against John Shing-wan Leung.
- Why Some Investors Are Betting on China’s Recovery but Avoiding Chinese Shares — Foreign luxury-goods makers are among those getting a boost from the country’s reopening.
- G-7 Leaders Expected to Take Aim at Chinese ‘Economic Coercion’ — Beijing says the G-7 nations throw their own economic weight around.
- China’s Power Politics Clouds Its Ukraine Peace Efforts — Beijing seeks end to war while facing questions about its ties to Russia, position on sovereignty.
The Financial Times
- Xi Jinping’s Taiwan ambitions threaten China’s rise — A war to take the island would wreck the progress Beijing has made over the past 40 years.
- Europe gets Chinese car factories rather than roads and railways — Italy considers quitting the BRI, and how the EU’s new anti-subsidies rules might hit Gulf states’ investments in Europe.
- Shares jump in Chinese state enterprises as investors seek high yield — Government-run organisations offer better returns than bond market.
- Chinese tech entrepreneurs go on global offensive — Success of TikTok and Shein inspires start-ups to look abroad for growth.
- Shipping groups press Chinese counterparts for sanctions-proof contracts — Measures against Russia and worsening tensions over Taiwan have spooked the sector.
- DMG Mori tracks use of its machine tool products to prevent military application — German-Japanese company’s move comes in wake of rising geopolitical tensions.
- China’s EV industry braced for shakeout as prices plunge — Local players face softer demand and competition from foreign makers.
- New US solar rules will do little to break China dependence, experts say — Treasury department unveils fresh guidance but analysts say few domestic companies could fully capitalise on the subsidy.
- German coalition set for clash over curbing investments in China — Deputy chancellor Robert Habeck backs US measures to impose stricter controls on firms’ operations in the Asian economy.
- Forrester Research to axe China jobs after Beijing’s consultant crackdown — US research firm will shed the majority of its analysts in China.
The New York Times
- China Sentences a U.S. Citizen to Life in Prison for Espionage — A court in southeastern China handed down a guilty verdict to John Shing-Wan Leung, a Hong Kong resident, as the authorities ramp up a crackdown on spying.
- Mysterious Killing of Chinese Gold Miners Puts New Pressure on Beijing — The massacre of nine workers in the Central African Republic and other recent attacks raise questions about China’s ability to protect its citizens overseas.
- Some U.S. Solar Makers Criticize Biden’s Tax Credits as Too Lax on China — U.S.-based manufacturers of solar products say rules issued by the Biden administration on Friday will “cement China’s dominance” over the solar industry.
- Ukraine’s Offensive Could Set Stage for Diplomacy With Russia, U.S. Officials Say — While exploring endgames, Biden aides say they reject any push for peace talks — including from China — that would freeze the current front lines and Russia’s gains.
- In China, the Police Came for the Consultants. Now the C.E.O.s Are Alarmed. — Foreign businesses, a top Chinese official said in March, “are not foreigners, but family.” Then came a crackdown on firms with foreign ties.
- China’s Economic Needs May Take a Back Seat to Security — Xi Jinping wants to insulate China from perceived threats from the West. He also wants to promote the country as deserving of foreign investment and clout. Can he do both?
Caixin
- Cover Story: Chinese Exporters Turn Toward Emerging Markets — The developing countries of the Belt and Road initiative are replacing developed nations of the West.
- China and Australia Resume Trade Talks in Sign of Stabilizing Ties — China and Australia’s top trade officials agreed to resume high-level economic dialogue channels in a sign of steadily improving relations between Beijing and Canberra under the Albanese government.
South China Morning Post
- Alibaba transfers autonomous driving team at DAMO Academy to logistics arm in latest restructuring move — Alibaba has transferred its autonomous driving team under DAMO Academy to the firm’s Cainiao logistics arm as part of an ongoing corporate restructuring announced in March.
- PLA reveals US-China military encounter off Hong Kong day before January 6 Capitol riot — Submarine hunting aircraft flew as close as 150km off Hong Kong, prompting classified counter action by Chinese military, report says.
- China will transfer high-speed railway tech to Thailand, engineers say — Agreement in principle to pass on technology, skills and knowledge in 11 areas of railway construction, according to Chinese team.
Nikkei Asia
- U.S. eyes access to Papua New Guinea naval base and airport — South Pacific competition intensifies following China’s deal with Solomon Islands.
- Death of Hong Kong ferry captain suggests severity of labor shortage — Understaffed businesses fail to keep up with blitz of mainland China tourists.
Bloomberg
- Korea’s Battery Makers Embrace LFP Cells as China Strides Ahead — LFP batteries are cheaper but have a lower energy density in cold climates. Korean firms have historically shunned the technology for that reason.
- Russian Premier, Sanctioned Tycoons to Visit China Trade Event — Russian Prime Minister Mikhail Mishustin will lead a government delegation to China next week to attend a business forum along with sanctioned tycoons as Moscow leans on Beijing to help it withstand economic pressure over the Kremlin’s war in Ukraine.
- Ford Seen Laying Off 1,300 Workers in China, Local Media Reports — Ford Motor Co. plans to cut jobs in China, potentially by more than 1,300, as its sales decline in the world’s biggest car market, local media including Economic Daily News reported.
- China’s Securities Regulator Cuts Total Staff Pay After Revamp — China’s securities watchdog has slashed its budget for staff compensation this year, in a sign of further pay cuts at the nation’s financial regulators after the biggest bureaucracy overhaul in decades.
Reuters
- Consultancy firms in China tested limits before Beijing’s crackdown — These consultancies thrived by providing investors – from global hedge funds to private equity firms – access to industry experts and investigators who could obtain valuable corporate information.
- China launches projects to build ‘new-era’ marriage, childbearing culture — Promoting marrying, having children at appropriate ages, encouraging parents to share child-rearing responsibilities, and curbing high “bride prices” and other outdated customs are the focus of the projects.
- China’s rising clout spotlighted at finance chief meetings before G7 summit — The weekend gathering of finance chiefs from the Group of Seven (G7) advanced economies did not single out China as a threat in their communique, but left signs the world’s second-largest economy will loom large at this week’s summit in Hiroshima.
Other Publications
- The Los Angeles Times: For easy living and California vibes, China’s digital nomads flock to ‘Dalifornia.’ Can it last? — Dali has become a refuge for digital nomads and burned-out workers seeking a reprieve from harsh pandemic controls and the grind of big-city life.
