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
- The Era of Ultracheap Stuff Is Under Threat — Factories across Asia are struggling to attract young workers, which is bad news for Western consumers accustomed to inexpensive goods.
- Russia and China Sent Large Naval Patrol Near Alaska — Four U.S. destroyers were dispatched to monitor Russian and Chinese ships.
- With China Attending, Ukraine Peace Discussions Inch Forward — Saudi-hosted talks, which excluded Russia, narrowed gaps between Ukraine and major developing countries over fair conditions to end the war.
- A Family Is Divided by Hong Kong’s Pursuit of U.S.-Based Activist — Elmer Yuen’s relatives, including a pro-Beijing lawmaker, were held and questioned in Chinese city as authorities step up pressure on exiled dissidents.
- Another Big Chinese Property Domino Is Wobbling — Bonds of Country Garden, China’s largest developer by contracted sales, have been in free fall.
- Opinion: China and Russia Eye Alaska — A joint naval patrol off the Aleutians is a warning and a test for the U.S. By The Editorial Board.
- Opinion: Ukraine Needs American Drones — China’s export controls on the unmanned aerial systems Kyiv uses will benefit Russia in the war. By Seth Cropsey.
The Financial Times
- China’s Ant Group swaps stake in India’s Paytm for debt — Geopolitical tensions simmer as New Delhi cracks down on Chinese companies in the country.
- HSBC executive apologises for criticising UK over China policy — Sherard Cowper-Coles said at a private event the UK had given in to the US too easily.
- Saudi Aramco signals further investments in China — Group reaffirms huge capital spending programme despite fall in Q2 profits.
- EU trade chief to push China on barriers to exports — Commissioner Valdis Dombrovskis hopes to address ‘very unbalanced’ ties after surge in Chinese imports.
- Beijing’s tougher regulations thwart Big Tech’s electric vehicle dreams — Overcapacity and EV-maker bankruptcies have led to a throttling back on issuance of production licences.
- Philippines and US accuse China of illegally targeting supply ships — Further escalation of Beijing’s pressure campaign in the contested South China Sea.
- Biggest Chinese mutual funds near limits on offshore investment — Institutions seek higher returns elsewhere as growth slows at home.
- Chinese economists told not to be negative as rebound falters — Authorities struggling to restore confidence in post-Covid recovery want analysts to avoid mention of deflation risk.
- Bertelsmann Investments to plough $700mn into Chinese start-ups — German venture capital fund bucks widespread gloom among western investors.
- US and China to open communication lines after diplomatic push bears fruit — Move signals potential breakthrough after months of deterioration in relationship.
- Opinion: Why Joe Biden is the heir to Trump — The current administration has quietly built upon many Trump-era policies. By Gideon Rachman.
- Opinion: Inconvenient truths about the green transition — Getting rid of carbon and forced labour in clean energy supply chains is costly but necessary. By Rana Foroohar.
The New York Times
- Xi Remade China’s Military. Now a Purge Threatens its Image. — Xi Jinping, China’s leader, set out to clean up the military a decade ago. But now his crown jewel, the missile force, is under a shadow.
- How a U.S. Tech Mogul Used Nonprofits to Sow Chinese Propaganda — The Times unraveled a financial network that stretches from Chicago to Shanghai and uses American nonprofits to push Chinese talking points worldwide.
- Why ‘Barbie’ Became a Sleeper Hit in China — The movie has exceeded box office expectations, as China’s female moviegoers celebrate a film that addresses women’s rights head-on.
- Ukraine Invites Talks in Saudi Arabia as an Effort to Weaken Russia — Some 40 countries that have largely remained on the sidelines of the war were invited to talks on Saturday in Saudi Arabia, as Ukraine redoubles international efforts to isolate Moscow.
- China Proposes ‘Minor Mode’ to Limit Kids’ Smartphone Use — A proposal from the country’s internet regulator would require app developers and device makers to adopt a “minor mode” to limit screen time and content for young people.
Caixin
- How a 140-Year Flood Caught Beijing and Nearby Cities Off Guard — Typhoon Doksuri, which dumped 18 inches of rain over 72 hours in Beijing last week — the most in 140 years — produced torrents that overwhelmed flood control systems, killed 22 and displaced 1.5 million in the region.
- Morgan Stanley Targeted for Shanghai Compliance Inspection — CSRC picks American securities unit and Changjiang Finance Services for random on-site governance and business reviews.
- In Depth: Yi Gang’s Legacy After Five Years Running China’s Central Bank — The former PBOC governor, who stepped down last month, spearheaded interest rate reform, helped reduce risks in the financial system, and supported the green and digital transformation of the financial sector.
- Pony.ai in JV With Toyota-linked Companies to Mass Produce Self-Driving Taxis — Start-up joins with Toyota Motor (China) Investment and GAC Toyota Motor to invest more than $140 million to set up the robotaxi firm.
South China Morning Post
- Tech war: Huawei to revive smartphone business on the back of fresh AI-powered operating system even as US sanctions continue to bite — HarmonyOS 4, the latest iteration of Huawei’s self-developed operating system, has been integrated with Pangu, the company’s own generative artificial intelligence model.
- Indian equipment for China’s Tiangong space station faces export delay — Equipment developed by the Indian Institute of Astrophysics to analyse interstellar gas has yet to receive an export licence.
- Tesla’s Chinese suppliers rush to set up EV component plants in Mexico to support new ‘Gigafactory 6’ — Chinese car component makers, a crucial pillar of the EV supply chain, are rushing to build production plants in Mexico so they can supply parts to Tesla’s new factory in the Central American nation.
- Mongolia signs digital skills partnership with Google as landlocked nation seeks closer ties with US — Google and the government of Mongolia have struck a new partnership to bring digital devices and training to Mongolian classrooms, as the East Asian country sandwiched between China and Russia seeks closer ties with the US.
Nikkei Asia
- Trump will raise China tariffs if he wins White House: ex-USTR — Robert Lighthizer says former president ‘deadly serious’ about campaign pledges.
- China not expected to push Russian return to Black Sea grain deal — Initiative’s collapse hurts China’s economy, but Beijing focused on geopolitics.
- Opinion: U.S. re-engagement with China reflects confusion of priorities — Ukraine war is consuming far too much American attention and resources. By Masahiro Matsumura.
- Opinion: Child care subsidies can help address China’s population crisis — Falling births threaten the economy and innovation. By James Liang.
Bloomberg
- China Emphasizes Absent Xi Has Been ‘Strong’ in Flood Response — Chinese state media is touting Xi Jinping’s “strong and powerful” response to devastating floods in northern China, as the nation’s propaganda machine ratchets up mentions of the president who hasn’t been seen in public since the rainfall began.
- Bankers Chasing Deals in China Turn to ‘Throwing Eggs’ Card Game — An obscure poker game has become a must-have skill for Chinese business leaders angling to win financial support from provincial governments seeking to bolster key industries.
- Chinese Maker of 1,000 Kilometer EV Battery Plans IPO by 2025 — A Chinese maker of long-range electric vehicle batteries — including one capable of going 1,000 kilometers (620 miles) on a charge — plans to go public as soon as 2025 as it banks on automakers embracing next-generation cells in the race to overcome range anxiety.
Reuters
- China’s Ukraine peace-talks gambit shows shift in approach — China’s decision to join international talks in Saudi Arabia this weekend seeking to end Russia’s war in Ukraine signals possible shifts in Beijing’s approach but not a U-turn in its support for Moscow, analysts say.
- Yuan loses core support as firms leave China — A gentle downtrend in foreign direct investment gave way to a steep drop last quarter and inflows to China slammed to their lowest since records began 25 years ago, raising the prospect that the long-term trend is turning.
- China can no longer ‘extend and pretend’ on municipal debt — China’s promised “basket of measures” to defuse local government debt risks is likely to include special bond issuance, debt swaps, loan rollovers, and something Beijing really loathes: dipping into the central budget.
- Column: Live and don’t learn. The lesson of China’s failed Australia trade bans — One of the main tools of statecraft in recent years has been trade sanctions or tariffs, but with China taking another step to normalising its trade relationship with Australia, the main lesson is these actions seldom work. By Clyde Russell.
Other Publications
- AP: China releases TV documentary showcasing army’s ability to attack Taiwan — China has released a new documentary about the army’s preparation to attack Taiwan and showcasing soldiers pledging to give up their lives if needed as Beijing continues to ramp up its rhetoric against the self-ruled island.
- Foreign Policy: Here’s How Scared of China You Should Be — It all depends on the answers to these five questions. By Stephen M. Walt.
- The Washington Post: U.S. companies are buying less from China as relations remain tense — Chinese imports down 24 percent through May, and Mexico is now the U.S.’s top trading partner.
