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 Offers Tough Reply to Biden’s Suggestion of Thaw With U.S. — Friction persists as Beijing denounces the G-7 for a ‘Cold War mentality’ and penalizes a U.S. chip maker.
- New Chinese Ambassador Departs for the U.S. Under a Cloud of Uncertainty — Impending arrival of Xie Feng, veteran diplomat and U.S. expert, seen as sign Beijing may be open to thaw.
- China Has a Youth Unemployment Problem Because College Grads Are Waiting for Jobs That Don’t Exist — Despite economic recovery, young people find it hard to land jobs, and Beijing can’t seem to find a solution.
- TikTok Sues Montana Over State’s Ban of Its Service — Legal action comes after some of the platform’s users sued the state’s attorney general.
- Japan Bets Big on Micron—and Its Own Chip Ambitions — The country, once a chip-making heavyweight, has fallen behind in fabrication. But recent trends could help change that.
- FBI’s Misuse of Foreign Spying Law Complicates the Push to Renew It — Reluctant lawmakers cite agency ‘abuses,’ concerns about new surveillance technique.
The Financial Times
- China fears Japan’s chipmaking curbs go further than US restrictions — New export rules could encompass equipment for making older-generation semiconductors.
- UK businesses in China call for regulatory clarity — Uncertainty causes 70% of British chamber members to hold off on new investment.
- China widens foreign access to swaps after $130bn bond sell-off — New market link-up scheme in ‘test mode’ as Chinese bond yields continue to lag behind US Treasuries.
- China’s fishing fleet embroiled in rising tensions with US — Washington has cracked down on Beijing’s vessels over illegal fishing and ‘grey-zone operations’ in South China Sea.
- TikTok sues Montana over first US state ban — Chinese-owned social media app says newly signed law is an unconstitutional infringement on its rights.
- China/Micron: Beijing ban restricts chip options for local companies — Tit-for-tat move against US group may end up slowing China’s technological progress.
The New York Times
- Biden Sees Coming ‘Thaw’ With China, Even as He Rallies Allies Against Beijing — During the Group of 7 meeting that just wrapped up, President Biden forged a consensus approach toward China despite tensions between the major powers over their approach.
- With Ban on Micron, China Escalates Microchip Clash With U.S. — A Chinese government block on Micron Technology’s memory chips marks how far apart the two economic powers are drifting on tech policy.
- Australia Tries to Break Its Dependence on China for Lithium Mining — Half of the world’s supply of the critical battery ingredient is mined in Australia, which ships virtually all of it to China. The government and business are betting they can change that.
- TikTok Sues Montana, Calling State Ban Unconstitutional — The Chinese-owned video app filed the lawsuit days after Montana’s governor signed the ban, which takes effect on Jan. 1, into law.
Caixin
- In Depth: Chinese Fast Fashion Platforms Could Be Next U.S. Target — A scathing report from an advisory body to the U.S. Congress has industry insiders expecting firms like Temu and Shein to face regulatory pressure.
South China Morning Post
- British firms in China ‘wait and see’ on new investment as lack of trust clouds outlook — Annual position paper from the British Chamber of Commerce in China points to uncertainty and a lack of trust and clarity on regulations, with 70 per cent of surveyed businesses adopting a ‘wait-and-see approach’.
- Honda’s China venture ships first cars abroad as country’s auto industry pursues status as world’s largest exporter — Dongfeng Honda Automobile’s first export shipment includes plug-in hybrid and battery-powered EVs destined for sale in several European countries as China’s auto industry flexes its growing muscle.
- China firms plagued by payment delays, with big cash-flow risks, survey finds — China’s construction sector reported the longest payment delays in 2022, even as Beijing eased restrictions on financing for the sector following a years-long crackdown, Coface report says.
- Hong Kong protests: John Lee refuses to set deadline for wrapping up police investigations, despite commissioner earlier offering time frame — Police have arrested 10,279 people in relation to anti-government protests but charged only 2,910.
Nikkei Asia
- Russia PM visits China with U.S.-sanctioned delegation — Mishustin to meet Xi as trade grows between two nations targeted by West.
- Japan chip export curb to China will take effect in July — Tokyo follows U.S. measures irrespective of Beijing’s anger.
- Indonesia bets on critical mineral export bans as deadline nears — History of policy flip-flops could hamper climb up resource value-chain.
Bloomberg
- Alibaba’s Cloud Arm Is Said to Cut 7% of Staff in Overhaul — Alibaba Group Holding Ltd.’s cloud division has begun a round of job cuts that could reduce its staff by about 7%, part of an overhaul aimed at preparing the once fast-growing unit for a spinoff and eventual IPO.
- Xi’s Micron Ban Shows China’s Limited Options to Hit Back at US — China’s move to ban Micron Technology Inc.’s products marked its most meaningful retaliation yet against US export controls. Now the question is whether President Xi Jinping will go after even bigger targets, risking blowback to his own economy.
- Chinese App Trains Government Workers How to Keep State Secrets — China is stepping up training at its government agencies, universities and state-owned enterprises on how to safeguard state secrets, underscoring Beijing’s increasing emphasis on national security.
Reuters
- US will not award $200 mln grant for Microvast battery company – source — The U.S. Energy Department told lithium battery company Microvast Holdings it will not award it a $200 million grant, a source familiar with the matter said on Monday.
- Florida sued for barring Chinese citizens from owning homes, land — A group of Chinese citizens living in Florida sued the state on Monday to strike down a new law that would bar citizens of China and several other countries from owning homes and land in the state.
Other Publications
- The Washington Post: Germany’s ‘China City’ doesn’t want you to call it that anymore — The shift in Duisburg mirrors a broader rethink in Europe on relations with Beijing.
- The Information: Welcome to CATL’s World — Leaving as little as possible in the supply chain to chance, CATL is the best positioned of all EV battery companies to supply itself with lithium from its own mines, chemicals from its own processing factories and battery electrodes from its own plants.
- The Globe and Mail: Foreign interference inquiry decision expected today — What is foreign interference and why is it important? What have we learned from CSIS documents, national-security sources and politicians about Chinese meddling in Canadian affairs? Here’s what you need to know.
- Associated Press: Montana is banning TikTok. But can the state enforce the law and fend off lawsuits? — Montana’s rules are more far-reaching than restrictions on TikTok in place elsewhere, which include bans on government-issued devices in nearly half the states and within the U.S. federal government.
In Case You Missed It
- The Wire China: Playing Both Sides? — Can the U.S. fund and build domestic supply chains for batteries without China?
