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
- Beijing Bans Micron as Supplier to Big Chinese Firms, Citing National Security — Cyberspace Administration says chip maker failed review, in a move that seems aimed at hitting back at U.S. chip ban.
- China Makes Clear Its Military Isn’t Funny Anymore — Fallout from propaganda joke continues to spread; ‘everyone will retreat to safety’.
- Biden Sees Potential Thaw With China After Tough G-7 Statement — President calls balloon incident silly and says Washington, Beijing should be talking more.
- A Poor Province in China Splurged on Bridges and Roads. Now It’s Facing a Debt Reckoning. — Guizhou has sent out pleas for help with its finances and investors think Beijing will have to step in.
- The China Hawk in Washington Rattling Corporate Boardrooms — Republican Rep. Mike Gallagher aims to counter Beijing by telling ‘American companies to act like American companies’.
- China Seeks to Counter Musk’s Starlink With Own Satellite Network — Race to roll out low-orbit fleets comes amid rising geopolitical tensions and concerns over crowded space.
- In Contrast to China, Japan at G-7 Basks in Newfound Appeal to Companies — Tokyo can boast of political stability and improving economic dynamism, though longer-term challenges remain.
- China’s Xi Mimics Mao’s Crisis Response in Sweeping Indoctrination Drive — ‘Spiritual baptism’ campaign comes as Chinese leader sustains damage from pandemic, economy, U.S. tensions
- Adidas Seeks Redemption in China — Sportswear brand backs government sports and cultural projects in bid to reverse decline in increasingly competitive market.
- Biden, Fellow G-7 Leaders Take on China at Hiroshima Summit — Nations say they will counteract what they see as Beijing’s intimidation.
- Video: How the U.S. Wants to Counter China in the Pacific — The U.S. long avoided the South China Sea disputes, but recently it changed tactics. WSJ explains why.
The Financial Times
- China bans Micron’s products from key infrastructure over security risk — US commerce department strongly opposes the action saying it has ‘no basis in fact’.
- Flaring tensions over G7 and Micron show limits to US-China reset — Beijing cracks down on chipmaker within hours of Joe Biden predicting an imminent ‘thaw’ in relations.
- South Korea signals its chipmakers can fill gap after China’s ban on Micron — Seoul says it is up to Samsung and SK Hynix to make ‘judgment’ on whether to expand their business.
- Global investment banks’ profits drop in China — Goldman Sachs unit reports losses and Morgan Stanley’s profits fall as tensions rise between west and Beijing.
- Biden expects imminent ‘thaw’ in China relations — US president optimistic Beijing and Washington will move beyond row over ‘silly balloon’.
- Macau casinos mount comeback as mass-market players return — Galaxy Entertainment says net revenue has recovered to more than half its pre-pandemic figures.
- G7 issues strongest condemnation of China as it intensifies response to Beijing — Concerns raised over ‘economic coercion’ and militarisation of South China Sea.
- G7 prepares unified response to Chinese ‘economic coercion’ — Leaders at Hiroshima summit to unveil ‘common set of tools’ to increase security.
- Xi Jinping pushes Central Asian defence co-operation plan — Chinese president’s offer to help with security comes as Russian influence in the region weakens.
- Opinion: ‘Boomy’ talk about the Chinese economy is a charade — Wall Street forecasts are now even more optimistic than Beijing’s unreachable growth target.
The New York Times
- China Bans Some Chip Sales of Micron, the US Company — Many analysts see the move as retaliation for Washington’s efforts to cut off China’s access to high-end chips.
- Inside the Barbecue City That Is China’s Hottest Tourist Destination — Zibo has become a social media star for its distinctive barbecue style. Now the city is overrun with visitors.
- The U.S. Needs Minerals for Electric Cars. Everyone Else Wants Them Too. — The United States is entering an array of agreements to secure the critical minerals necessary for the energy transition, but it’s not clear which of the arrangements can succeed.
- What’s De-risking and How Does It Compare to Decoupling — The newly fashionable term, reflecting an evolution in the discussion over dealing with a rising, assertive China, has a vexing history in financial policy.
- Alibaba, Baidu and Tencent Signal First Steps in Bumpy Recovery — The economy is open again, helping Alibaba, Baidu and Tencent claw back in the first quarter from a miserable 2022, though they are likely to face continuing skepticism from investors.
- China’s Youth Unemployment Crisis: 1 in 5 Is Out of Work — The youth unemployment rate, which spiked during the pandemic, reached a record high this week, showing the perils of China’s uneven economic recovery.
Caixin
- Cover Story: China’s Effort to Move Mountain of ‘Hidden Debt’ Faces Uphill Climb — Local governments’ invisible debt could be as high as almost $10 trillion, double Japan’s GDP, posing a risk of destabilizing the banking and financial sector.
- Three Things to Know About China’s New Financial Commissions — Two new commissions under the supervision of the ruling Communist Party have kept a low profile. Here’s what we know so far.
- China Protests G-7 Communique, Saying It Interferes in Domestic Affairs — The G-7 members should refrain from “ganging up to form exclusive blocs and stop containing and bludgeoning other countries,” according to a spokesperson’s remarks published Saturday.
South China Morning Post
- Tencent launches palm payments in Beijing, allowing metro passengers to pay with the wave of a hand — WeChat users who register their palm prints can pay for rides on Beijing’s airport express line using only their hands at designated turnstiles.
- Chinese billionaire He Xiangjian, founder of home appliances giant Midea, creates US$428 million science fund focused on AI and climate research — He Xiangjan said his eponymous fund ‘will help more scientists focus on their work and attract more youngsters to take part in technological advancement and innovation in the country’.
- Security cameras in Hong Kong classrooms? Lawmakers, school principals express concerns over police suggestion to help prevent crime — Police suggest installing cameras in areas such as classrooms, main entrances and corridors.
Nikkei Asia
- China’s Micron ban creates chip dilemma for Samsung, SK Hynix — Move could leave supply gaps but U.S. has urged South Korea not to fill them.
- Bans on Chinese land purchases in U.S. crop up in Republican-held states — Critics slam moves by Florida, Montana while governors vow to defend against foreign influence.
- Macao casinos’ reopening boost blunted by junket crackdown — Recovery in gaming pushes up revenue but high rollers stay away.
Bloomberg
- Micron Stock Tumbles as China Says Chips Are Security Risk — Micron Technology Inc.’s stock dropped more than 6% after China’s cyberspace regulator said that its products failed to pass a cybersecurity review in the country.
- China Blasts US ‘Sincerity’ as Biden Calls for More Talks — China has questioned the “sincerity” of the Biden administration, as it pushes to resume high-level diplomatic talks with Beijing while also heaping tech sanctions on its main economic rival.
- China’s $23 Trillion Local Debt Crisis Threatens Xi’s Economy — What happened in cash-strapped Hegang points to a long economic slog for the rest of the country.
- China Suddenly Shuts Down Concerts, Events Without Explanation — Saturday’s “What the Folkstival” outdoor concert was meant to kick off in the early afternoon in a Beijing suburb near the airport, with 10 live acts, including foreign performers, playing “acoustic music to soothe your soul.”
Reuters
- China’s Micron ban revives US trade tensions, fuels Asian chip rally — A move by Beijing to bar U.S. firm Micron Technology Inc from selling memory chips to key domestic industries has ramped up tensions in an ongoing trade spat with Washington and lifted shares of firms that could benefit from the move.
- UK’s Sunak says China poses world’s biggest security challenge — China represents the world’s greatest challenge to security and prosperity, but other leading economies should not seek to fully decouple from it, British Prime Minister Rishi Sunak said.
- New rules to dampen Chinese interest to list in Europe, say bankers — Chinese companies’ plans to raise capital via listings in London or Zurich are in jeopardy after Beijing mandated new disclosure rules, put curbs on the use of the funds and made issuances liable to national security reviews.
Other Publications
- Foreign Affairs: China’s Port Power — The Maritime Network Sustaining Beijing’s Global Military Reach. By Isaac Kardon and Wendy Leutert
- The Guardian: Surge in strikes at Chinese factories after Covid rules end — Action by workers has trebled this year as the country emerges from its draconian coronavirus measures.