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
- U.S. Tracked Huawei, ZTE Workers at Suspected Chinese Spy Sites in Cuba — Intelligence bolstered suspicions telecom giants might be playing role in expansion of China’s capabilities on island.
- Confidence in China at Record Low, European Business Lobby Poll Shows — More companies pulling back on investments amid geopolitical tensions, country’s sluggish economy.
- On the Menu for Narendra Modi U.S. Visit: Countering China — President Biden is hosting a state dinner for India’s prime minister, despite criticism of human-rights record.
- U.S.-Funded Scientist Among Three Chinese Researchers Who Fell Ill Amid Early Covid-19 Outbreak — Identification of three who worked at Wuhan Institute of Virology fuels suspicion for proponents of lab-leak theory.
- China Rolls out $72 Billion in Tax Breaks for New-Energy Vehicles Over Next Four Years — Shares of electric-vehicle makers rose on the news, bucking a decline in Hong Kong’s benchmark Hang Seng Index.
- Private Eye Found Guilty of Acting as Illegal Chinese Agent — Justice Department accused an investigator and two other defendants of harassing a former Chinese official living in New Jersey.
- U.S. Antimissile System in South Korea, a Source of Chinese Anger, Cleared for Full Deployment — Pursuit of full Thaad rollout comes as Seoul and Beijing clashed publicly over range of issues.
The Financial Times
- China furious after Biden calls Xi a ‘dictator’ — President’s ‘absurd’ comments about spy balloon incident threaten to undermine efforts to improve Sino-US relations.
- India’s Modi embarks on US state visit to deepen defence and tech ties — New Delhi seeks to narrow rival Beijing’s lead in critical technologies.
- Chinese luxury goods: the bear case — A yawning gap between China’s rich and poor works to the advantage of European luxury goods groups with heavy exposure to the country.
- Singapore bargain-hunters target distressed Chinese properties — Wave of developer defaults follows Beijing’s crackdown on speculation.
- Chinese spy facilities in Cuba are ‘serious concern’, says Blinken — White House says Beijing has had intelligence relationship with Havana ‘for quite some time’.
- Volkswagen, BMW and Mercedes hit by Xinjiang forced labour complaint — Carmakers are the target of one the first cases brought under Germany’s new supply chain law.
- German chancellor presses China to give western companies ‘level playing field’ — Olaf Scholz tells Chinese premier Li Qiang he wants economic co-operation to continue.
The New York Times
- Biden Says Xi Was Not Informed About Spy Balloon — At a campaign fund-raiser, the president said China’s leader was “very embarrassed” to be kept in the dark about the surveillance craft that was shot down after crossing American airspace.
- 3 Convicted of Harassing Family on Behalf of China’s Government — The defendants, including a private detective who said he did not realize he was working for an intelligence operation, pursued people living in New Jersey.
- German Spy Agency Says China and Russia Are After Its Secrets — The country is a growing target for foreign espionage, the agency said, amid rising tensions over the war in Ukraine and rivalries between Washington and Beijing.
- Business Leaders Join Biden in Welcoming Modi to the U.S. — High on the agenda: Talks to strengthen economic and security ties as the Biden administration cultivates partners to counter China.
Caixin
- Flying Car Maker Lilium Plans China Office as Step Toward Approval for Sales — Tencent-backed German aerospace company Lilium GmbH plans to set up a regional headquarters in southern China’s Shenzhen as a first step in a partnership to sell its all-electric air vehicle in the Asia-Pacific region.
- Polestar Forms Venture With Xingji Meizu to Build Auto Operating System — Swedish electric vehicle maker Polestar Automotive Holding UK PLC said Monday it has formed a joint venture with Chinese smartphone and consumer electronics company Xingji Meizu Group to build an operating system for Polestar cars sold in China.
- Former Top Grain Regulator Receives 15-year Sentence for Corruption — Xu Ming, a former senior official overseeing China’s grain industry and a long-time subordinate of disgraced Politburo member Bo Xilai, received a 15-year jail sentence for taking more than 52 million yuan in bribes.
South China Morning Post
- China says US fentanyl sanctions are ‘smears and suppression’ just days after apparent agreement to work with Washington — Criticism from senior narcotics control official came days after US Secretary of State Antony Blinken said Beijing had agreed to talks on a working group.
- European firms cool on China’s Greater Bay Area, ‘not benefiting’ from its US$1.8 trillion economy — European Union Chamber of Commerce in China survey showed less than half of the firms expressed optimism for the Greater Bay Area, which had an economy of 13 trillion yuan last year.
- China urges Pakistani military to keep up ‘zero tolerance’ crackdown on terror as Chinese interests targeted — Chinese interests in Pakistan, a key belt and road partner in the region, have faced increased terror threats as Beijing’s influence grows.
- Alibaba founders Jack Ma, Joe Tsai appear in Hangzhou in show of confidence amid corporate reshuffling — Alibaba founders Jack Ma and Joe Tsai appeared at company offices in Hangzhou as the e-commerce giant prepares for the departure of its CEO and seeks to regain competitive edge.
- China jobs: record youth unemployment ‘unsolvable for a while’, fifth job crisis since 1978 seen only getting worse — Jobless rate for China’s 16-24 age group hit a new high in May and is expected to rise further in July and August, with youth unemployment seen to be facing the most difficult time since the ‘reform and opening up’ in 1978.
Nikkei Asia
- China’s Xi greets U.S. diplomat Blinken with power moves — Secretary of state given cold shoulder, from seating to military talks.
- China steel industry faces growing pressure to consolidate — World’s No. 3 steelmaker to buy smaller rival to boost capacity.
- Pakistani Taliban’s ‘shadow province’ threatens China BRI projects — The Pakistani Taliban’s new drive to control the country’s south threatens to be a “huge problem” for reviving multibillion-dollar infrastructure projects under China’s Belt and Road Initiative.
Bloomberg
- China Begins Nationwide Push to Reveal Hidden Government Debt — China has begun a fresh round of nationwide inspections to work out how much money local governments’ owe, according to people familiar with the matter, a sign that authorities are preparing to take concrete steps to tackle a key financial risk.
- China Says Biden Calling Xi a Dictator Is ‘Provocation’ — China said US President Joe Biden had made a “public political provocation” by referring to his Chinese counterpart Xi Jinping as a “dictator,” as fresh tensions flared in bilateral ties just days after meetings to stabilize relations.
- China’s Huayou Cobalt Sets Up $1.5 Billion Hungary Cathode Plant — A Chinese company plans to invest $1.5 billion in a cathode factory in Hungary, the latest big-ticket investment that the government says will make the eastern European Union nation a hub for the electric car industry.
- Shein Deal to Re-Enter India Comes With Strict Licensing Rules — Chinese-founded online fast-fashion giant Shein won approvals to re-enter India only after agreeing to a stringent licensing deal with Mukesh Ambani’s Reliance Industries Ltd., according to people familiar with the matter.
- Tibet Leader Calls On China to Avoid Crisis of Two Dalai Lamas — Any attempt by China to find its own reincarnation of Tibetan spiritual leader the Dalai Lama may result in two different successors and a “lifelong headache” for Beijing, the leader of Tibet’s government-in-exile said.
Reuters
- Exclusive: Taiwan on alert for Chinese-funded election interference — Taiwan’s government says China will try to interfere in key elections in January by illicitly funding Beijing-friendly candidates using communications apps or group tours.
- Analysis: Auto firms race to secure non-Chinese graphite for EVs as shortages loom — Automakers, including Tesla and Mercedes, are rushing to lock in graphite supply from outside dominant producer China, as demand for electric vehicle (EV) batteries outpaces other uses for the mineral for the first time.
- Blinken China’s trip likely to bring only temporary relief for tensions — The first trip to China by a U.S. secretary of state in five years may have eased tensions that many saw escalating to dangerous levels, but the lack of progress on core issues means the relief will likely only be temporary.
Other Publications
- European Chamber of Commerce in China: European Chamber Report Finds Significant Deterioration of Business Confidence in China — Faced with growing risks and a more volatile operating environment, European companies have started reviewing their investment and operational strategies, and ensuring their supply chains are fit for more uncertain conditions.
- The Economist: Can Australia break China’s monopoly on critical minerals? — Cobalt, graphite, lithium, nickel, the rare earths and more are called critical for good reason. They are crucial to defence, smartphones and other digital technologies.
- Associated Press: Cooperation or competition? China’s security industry sees the US, not AI, as the bigger threat — After years of breakneck growth, China’s security and surveillance industry is now focused on shoring up its vulnerabilities to the United States and other outside actors.
- Rest of World: China’s banned online communities have found a new home on Reddit — They are drawn to the platform’s community-moderated, discussion-based format, which allows for more fringe voices to thrive.
