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’s Drop in Exports Signals Deepening Slowdown in Global Trade — Chinese exports fell at their steepest annual pace in June since the early days of the pandemic in February 2020, and it isn’t the only Asian economy reporting sinking overseas sales.
- Xi Jinping Chokes Off Crucial Engine of China’s Economy — Foreign direct investment in China fell to $20 billion in the first quarter from $100 billion a year earlier, hurting an already struggling economy.
- Canada Confronts Allegations of China-Led Electoral Interference — Reports of possible meddling by Chinese government in Canada’s elections are pressuring Trudeau government.
- As Concerns About China Grow, Germany Loosens Its Embrace — Berlin’s new China Strategy sees Beijing not just as a trade partner but also a competitor and systemic rival.
The Financial Times
- Germany sets out plans for tougher approach to China — Beijing has become ‘more repressive internally and more aggressive externally’, says foreign minister.
- UK response to Chinese spying ‘completely inadequate’, report finds — Parliamentary committee concludes government is ‘singularly failing’ to respond to threat posed by Beijing.
- Chinese premier’s meeting with tech executives fuels stock rally — Sector appears back in Beijing’s favour as government sees role for companies in rivalry with US.
- Chinese Tesla rival Nio hits out against US protectionism — EV maker’s chief William Li contrasts American stance with red-carpet treatment for Elon Musk in China.
- Uniqlo owner raises annual forecast after surge in post-pandemic China sales — Fast Retailing’s operating profit in three months to May grew 35% to record ¥110.3bn.
- Chinese exports fall in June as economic problems mount — Decline is worst in any month since start of pandemic.
- US tech can’t quit China and Netflix dives into Asia — The inside story on the Asia tech trends that matter, from Nikkei Asia and the Financial Times.
- As Chinese cars speed into global markets, tensions will only escalate — Security dilemmas and the threat to Europe’s industrial base raise questions for governments.
- Why China is flirting with deflation as the west battles rising prices — Beijing policymakers fear low investment and consumer spending will hamper the economy’s post-Covid recovery.
The New York Times
- Germany Says China Trade Could Create Perilous Dependence — A long-awaited strategy statement is an attempt to set a coherent approach for dealing with China, Germany’s largest trading partner, in policy and business.
- Looming U.S. Investment Restrictions on China Threaten Diplomatic Outreach — Any such restrictions are expected to anger Beijing and will be the first test of the new channels of communication that the world’s two largest economies are trying to restore.
- Chinese Hackers Targeted Commerce Secretary and Other U.S. Officials — The hackers took aim at specific email accounts in the State and Commerce Departments, officials said.
Caixin
- China Shuts ‘Fake’ Foreign Investors out of Stock Connect Program — Ban by securities watchdog comes into effect, closing a loophole investors could use to “round trip” trades.
- China Issues Final Guidelines for Managing Generative AI Services — Set to take effect on Aug. 15, the rules aim to promote development of the emerging technology while reducing risks in areas such as personal information and data security.
- Imax Proposes $124 Million Buyout Plan for China Unit — The transaction, expected to close later this year, will give the Canadian firm greater flexibility to pursue new opportunities and applications of its big screen technology in China.
South China Morning Post
- South Africa courts Chinese investment ahead of BRICS summit — The country is looking to Chinese infrastructure expertise as it struggles with energy blackouts and stubbornly high long-term unemployment rates.
- China’s Wang Yi, US Secretary of State Antony Blinken meet for second time in a month, signalling further thaw — Talks between top diplomats on sidelines of Asean forum in Jakarta come as both sides seek to manage deepening rivalry that has sparked alarm.
- People’s Daily unit issues first ‘data certificates’ in China to prove data ownership and rights — People Data, a unit under the People’s Daily that aims to build a nationwide data transaction platform, says it records data ownership on the blockchain.
Nikkei Asia
- Analysis: Why China rolled out the red carpet for Okinawa governor — Xi Jinping puts Japanese islands in play to maneuver for Taiwan.
- U.S. Joint Chiefs pick pursues more Indo-Pacific outposts — Gen. Brown says Washington needs to improve logistics capability in the region.
- Opinion: Hong Kong is serious about becoming a ‘Web3’ hub — Involvement of Chinese state-owned institutions underscores city’s role as test bed. By Henry Liu.
Bloomberg
- Xi Gets Serious About Boosting Private Sector as Economy Slumps — Chinese President Xi Jinping finally appears to be extending an olive branch to private businesses battered in recent years by regulatory crackdowns and the world’s most restrictive Covid-19 policies.
- India Clears French Submarine Deal as US Allies Court Modi — The South Asian country is diversifying purchases of military hardware beyond Russia and positioning itself as a bulwark against China.
- Here Are the Options China Still Has for Stimulating Its Economy — China should ramp up government borrowing, offer more tax breaks to businesses and keep cutting interest rates to revive the economy and stem rising unemployment.
Reuters
- Siemens to spend 1 bln euro in Germany as Berlin warns about China — Siemens wants the factory to become a showcase for the high tech manufacturing, with new production and R&D buildings being planned and simulated digitally.
- Governments race to regulate AI tools — Rapid advances in artificial intelligence (AI) such as Microsoft-backed OpenAI’s ChatGPT are complicating governments’ efforts to agree laws governing the use of the technology.
- China’s Qingdao sets up firm to bail out its local government financing arms — Dongdin Industrial Group, funded by policy lender China Development Bank, is tasked with providing liquidity support to Qingdao’s LGFVs.
Other Publications
- The Information: World’s Largest Chip Maker Rethinks Security, Responding to Pressures on Hiring — But the company has started to relax some of its cumbersome workplace security restrictions as it struggles to attract talent and retain existing workers, current employees say.
- The Washington Post: Tougher rules sought on land sales to China, other adversaries — Proposed legislation would give Committee on Foreign Investment in the United States new powers over deals near military bases.
- The Economist: China controls the supply of crucial war minerals — Recent moves to restrict their flow highlight a danger to the West.