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
- As China Risks Grow, Manufacturers Seek Plan B—and C and D — Western executives are shifting to various countries to prepare for contingencies.
- China’s Missile Threat Drives New U.S. Approach in Asia — U.S. military planners, worried Pacific bases are vulnerable, are dispersing assets to make them harder to eliminate.
- Opinion: China Won’t Save the U.S. From Recession This Time — Beijing’s supply-side stimulus eased the 2009 contraction, but don’t expect another one.
The Financial Times
- How the US is deepening military alliances in China’s backyard — The Biden administration is stepping up security initiatives to boost deterrence and better prepare for potential conflict over Taiwan.
- Musk and Dimon lead corporate charge to Beijing as ties with US fray — China courts global business leaders in push to boost confidence in economic recovery.
- China stocks: a strong Caisse for disinvestment — Canada’s second-largest pension fund is following others and retreating from China.
- Saudi Arabia expands lithium processing to supply BMW — Second facility planned as EV battery supply chains begin to develop outside China.
- Hongkongers struggle to have voice heard on Tiananmen Square anniversary — Once home to massacre’s largest commemoration in China, city finds space for dissent has narrowed.
The New York Times
- Tiananmen Exhibit Is ‘a Symbol of Defiance’ — A new display on the 1989 massacre is set to open in Manhattan, two years after a Tiananmen museum closed in Hong Kong.
- Investors Sour on China’s Stocks, Renewing Fears About Economy — They initially reacted enthusiastically to China’s reversal of pandemic restrictions but have since taken a dimmer view of the country’s recovery.
- Biden Makes Case for Global Alliances at Air Force Academy Commencement — President Biden said cooperation with allies had helped the United States confront challenges to stability around the world.
Caixin
- Exclusive: CSC Financial Executive Steps Down Amid Inquiries — Li Geping, CSC general manager, taken away May 29 by authorities, who may be investigating matters related to his tenure as a financial regulator, Caixin learned.
- China Evergrande Unit Misses Payments on Wealth Management Products — A subsidiary of the debt-stricken developer says it didn’t have enough cash to repay investors.
- Warburg Pincus Takes Stake in Shanghai Mutual Fund Manager — U.S. private equity giant buys 23.3% holding in Lombarda China Fund Management as foreign asset managers pile into $3.8 trillion market.
South China Morning Post
- China food security: wheat crops face ‘unprecedented’ risks as world heats up, study finds — Wheat-producing countries like China must prepare for extreme weather with more heat-tolerant crops to avoid ‘the unimaginable,’ researcher says.
- ‘External risks’: the focus of the next stage in China’s diplomacy, foreign ministry says — As part of campaign studying Xi Jinping Thought and amid rising tension with the US, foreign ministry says Beijing will allocate resources to ‘key challenges’.
- EU could agree to new sanctions on Chinese firms next week, diplomats say — Eight companies on draft list of entities accused of reselling banned European goods to Russia’s war machine.
- Chinese computer maker Powerleader says its CPU was developed ‘with the support of Intel’ — Chinese computer maker Powerleader, which was suspected of rebadging one of Intel’s older microprocessors as its own, said its CPU was developed ‘with the support of Intel’.
- China’s internet watchdog will set up fast lane for businesses to report online slander as economic revival tops list — Better online conditions for businesses ‘an urgent need’ to ensure industrial and economic security, CAC statement says, warns of ‘harsh’ crackdown on offending social media accounts.
- Chinese defence minister says Beijing will ‘absolutely not’ renounce use of force against Taiwan — Li Shangfu reiterates Beijing’s position to Singapore counterpart, defence ministry spokesman says, adding Beijing would never tolerate the Democratic Progressive Party seeking other countries’ support for Taiwan’s independence.
Nikkei Asia
- AI frenzy sweeps China as companies search for their own ChatGPT — Money is no object as investors big and small rush into chatbot technology.
- Bank of China chairman visits PNG amid Sino-U.S. rivalry — Trip follows island nation’s defense pact with Washington.
- Japan, U.S., Philippines reinforce collaboration in marine security — Three nations’ coast guards conduct drills with China’s marine expansion in mind.
- Opinion: TSMC’s fate will indeed be at stake if China attacks Taiwan — U.S. shouldn’t threaten to bomb foundries, but self-destruction can be deterrent.
Bloomberg
- China Is Set to Extend EV Tax Incentives as Sales Growth Slows — China is poised to extend incentives for electric-vehicle purchases as part of broader efforts to shake off a sluggish post-pandemic period.
- Sunak Tries to Fix China Ties Without Upsetting UK Hawks — British Prime Minister Rishi Sunak is trying to repair the UK’s relationship with China without being seen doing it.
- Sharp Rally in Chinese Stocks Falls Short of Dispelling Gloom — The sharpest rally for Chinese stocks in three months is doing little to convince money managers that the market is set for a sustained turnaround.
- Chinese Envoy Says Russia, Ukraine Talks Difficult Right Now — China’s ambassador Li Hui said it would be difficult for Russia and Ukraine to currently hold meaningful talks to end their conflict, a sign of the complexity of the situation as Beijing tries to broker a peace deal.
- China Mulls New Property Support Package to Boost Economy — China is working on a new basket of measures to support the property market after existing policies failed to sustain a rebound in the ailing sector, according to people familiar with the matter.
- Jamie Dimon Plans to Visit Taiwan After High-Profile China Trip — JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon is planning to visit Taiwan after wrapping up his high-profile trip to China, navigating a politically sensitive region at a time of heightened tensions between Beijing and Washington.
Reuters
- Newly approved US flights by Chinese airlines avoid Russian airspace — Chinese airlines are avoiding flying over Russian airspace in newly approved flights to and from the United States.
- Asia security summit kicks off amid US-China tensions — Asia’s top security meeting opened on Friday, with intensifying competition between the United States and China expected to dominate a weekend of high-level speeches, backroom military dealings and delicate diplomacy.
- China weighs next Ukraine peace mission after first yields little progress — The Chinese envoy who toured European capitals last month seeking to promote Ukraine peace talks said on Friday that Beijing is considering another mission.
- Analysis: China’s yuan may slip further to aid economic recovery — China’s yuan has skidded to six-month lows against the dollar and analysts say it could weaken further as investors fret over a bumpy pandemic recovery in the world’s second-largest economy.
Other Publications
- Washington Post: China’s quandary: Bail out debt-laden cities, or risk disruptive defaults? — Across China local governments, whose balance sheets have long been precarious, are struggling to service debts estimated to total as much as $23 trillion.
- Foreign Affairs: The Illusion of China’s AI Prowess — Regulating AI will not set America back in the technology race.
- Quartz: The industries hit hardest by a US ban on imports from Xinjiang — The ban is a culmination of trade restrictions that have been building for years around the issue of human rights in Xinjiang.
- Foreign Policy: America Is Winning Against China in Oceania — There is less to Beijing’s security gains in the Pacific than meets the eye.
- Council on Foreign Relations: The Great Firewall of Montana: How Could Montana Implement A TikTok Ban? — Enforcing this ban would require the creation of a surveillance regime that would be far more detrimental to privacy and civil liberties than TikTok could ever be.
- Rhodium Group: Tapped Out — Recent public calls for help from Guiyang and Hohhot reflect widespread local government financing distress.
