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
- Xi Jinping Meets Antony Blinken as U.S., China Resume High-Level Engagement — U.S. secretary of state’s encounter with Chinese leader caps visit to Beijing that was postponed by suspected spy balloon.
- Global Stocks Slip as China Stimulus Hopes Fade — Chinese stocks drifted lower, as investors dialed back expectations of what measures Beijing might take to support the economy.
- These Businesses Are Getting Hit Hard by China’s Faltering Economic Recovery — Beijing pushes banks to extend loans to small businesses, with limited success.
- Latest China Test for Western Firms: Consumers Switching to Homegrown Labels — More shoppers are choosing Chinese chic over foreign names, as live-stream retail gathers steam.
- Blinken to Seek China’s Help Curbing Deadly Fentanyl Traffic in Landmark Visit — Beijing has linked fentanyl issue to other disputes, impeding progress on matters critical to U.S..
The Financial Times
- ‘We can de-risk but not decouple’ from China, says Raytheon chief — Head of aerospace and defence group says western manufacturers will find it impossible to completely cut ties.
- Xi Jinping sees ‘progress’ in China-US ties at meeting with Antony Blinken — Chinese leader hints at truce in acrimony between Beijing and Washington during secretary of state’s visit.
- Xi Jinping’s dream of a Chinese military-industrial complex — The president has promoted technocrats to key posts in a renewed push for one of his core policies.
- China’s university exam promotes Xi’s cult of personality — The notoriously challenging ‘gaokao’ is testing students on the president’s nationalist credo.
- AstraZeneca drafts plan to spin off China business amid tensions — Anglo-Swedish drugmaker views listing a separate unit in Hong Kong as potential shelter from global strife.
- How Hong Kong’s multinationals and global funds are preparing for the worst — Corporate contingency planning in the territory will be a litmus test for assessments of China risk.
- Olaf Scholz to tread fine line in meeting with Chinese government — German officials describe themselves as ‘free traders’ but say ‘we’re not stupid’.
- Investors sour on Beijing’s bid to boost state-owned enterprises — Government tried to increase valuations by emphasising socialist credentials but rally in shares has fizzled out.
The New York Times
- Germany and China Try to Reset Relations for a Changed World — This week the two countries will restart government consultations after a pandemic hiatus, but amid the war in Ukraine and rising U.S., Chinese tensions, common ground may be elusive.
- Blinken Meets Xi as China and the U.S. Try to Manage Tensions — Secretary of State Antony J. Blinken met with Xi Jinping, China’s leader, on a trip aimed at ensuring that competition “does not veer into conflict.”
- As U.S. and Chinese Officials Meet, Businesses Temper Their Hopes — Chief executives in the U.S. have long pushed for closer ties between the two countries. Now they just hope a rocky situation won’t get worse.
Caixin
- Cover Story: Sands of Time Ticking on China’s Fight to Hold Back the Desert — Each year, the direct economic losses caused by desertification exceed 54 billion yuan.
- China’s Cabinet Proposes Stronger Measures to Boost Recovery Momentum — China’s cabinet has proposed a series of new policies to promote a sustained economic recovery.
- Micron to Expand China Factory Despite Chip Ban — Micron plans to invest 4.3 billion yuan over the next few years in its Chinese chip-packaging plant in Xi’an even after Beijing imposed curbs on the use of its semiconductors.
South China Morning Post
- Beijing raises ‘serious concerns’ over Japan’s arrest of Chinese researcher in trade secrets case — Quan Hengdao was taken into custody last week on suspicion of leaking data from a top Japanese institute.
- China’s 618 shopping festival loses its shine, as Alibaba and JD.com avoid sales figures for more flattering data — E-commerce firms avoided discussing gross merchandise value numbers, once a key indicator of success, after China’s second-largest shopping festival concluded.
- Chinese Premier Li Qiang arrives in Germany on first state visit amid ‘more chaos and changes’ — Li Qiang will attend inter-government and business talks aimed at ‘properly handling differences’ with Berlin, according to Chinese state media.
- Alibaba founder Jack Ma conducts first class as visiting professor at Japan’s University of Tokyo — Ma’s stint at the University of Tokyo underscores the Chinese tech billionaire’s return to public life as an educator and researcher, as he keeps an arm’s length from the vast business empire he created.
Nikkei Asia
- Uniqlo, Zara owners face new Paris lawsuit over Uyghur forced labor — NGO accuses prosecutors of kowtowing to China, files second complaint.
- Hong Kong’s Cathay Pacific expands Mandarin-speaking staff — Airline makes changes as it tries to rebuild reputation after discrimination scandal.
- Shanghai-based private equity veteran under investigation — Authorities’ latest probe appears related to ex-official of security regulator.
Bloomberg
- China and US Hit Pause — For Now — on Tensions — US Secretary of State Antony Blinken’s trip to China — the highest level visit of Joe Biden’s administration — shows the desire for a broad reset even as the scope for real cooperation between the world’s two biggest economies remains narrow.
- China Approves First Share Sale by Developer Since Ban Lifted — China’s securities watchdog approved an onshore share sale by a real estate developer for the first time since rules were eased late last year, raising hopes for the revival of a major fundraising channel as a housing recovery falters.
- China’s Stimulus Delay Adds to Worries Over Slowing Economy — China’s slow stimulus rollout is adding to concerns about the weakening economy and fueling a debate over how far authorities will go to bolster growth.
Reuters
- Their parents made China the world’s factory. Can the kids save the family business? — Du, like tens of thousands of other young Chinese factory bosses, is inheriting a basic manufacturing business that can no longer rely on the labour-intensive model that made China the world’s largest exporter of goods.
- China hails ‘progress’ in U.S. relations after Xi-Blinken talks — China’s Xi Jinping hailed “progress” in talks with U.S. Secretary of State Antony Blinken in Beijing on Monday, the final engagement of a closely-watched trip aimed at ensuring the superpower’s disputes do not spiral into conflict.
- Exclusive: Japan regulator sounded out top domestic banks about China risks, sources say — Japan’s financial regulator has sounded out top domestic banks about China risks and whether they have plans in place if Sino-Western tensions escalate.
- New Zealand PM Hipkins to visit China, meet President Xi Jinping — New Zealand Prime Minister Chris Hipkins said on Monday he would visit China from June 25 to 30, leading a trade delegation that includes some of the country’s biggest companies.
- China ‘deplores’ UK security minister’s Taiwan meeting — The Chinese embassy in London on Sunday condemned a meeting last week between Britain’s security minister, Tom Tugendhat, and Taiwan’s digital minister, saying it violated international relations.
- Analysis: China bankers told to shun flashy clothes, 5-star hotels in austerity drive — Chinese financial firms have jumped on an austerity drive as Beijing pushes to bridge the wealth gap.
Other Publications
- The Economist: China’s economy is on course for a “double dip” — The post-Covid economy was meant to roar. But it is faltering again.
- Washington Post: Opinion: Opinion Blinken is traveling a long way to talk with China. Good. — Absent some major breakthrough, there is a real possibility that Mr. Biden will become the first U.S. president not to visit China since Jimmy Carter normalized relations in 1978.
- The Guardian: Sunak urged to rethink visit by Chinese official linked to forcible removal of dissidents — Liu Jianchao accused of directing fugitive recovery operations targeting regime’s opponents.
- CNBC: Goldman joins Wall Street banks in cutting China’s growth outlook as post-Covid bounce fades — The latest revision from Goldman Sachs follows the likes of UBS, Bank of America and JPMorgan who have all downgraded their China full-year GDP estimates.
