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
- Rates in China Cut Again, but by Less Than Expected — Economists, saying Beijing needs to do more to reverse a steep slowdown, have slashed their 2023 growth forecasts.
- China Punishes U.S. Due-Diligence Firm Mintz Over Statistical Work — Beijing imposes $1.5 million in penalties for unapproved investigations after detaining company staff members in March.
- Booming China-Russia Trade Sends Trench-Digging Machines to Ukraine’s Front Lines — Mutually-beneficial ties have given Moscow a customer for its oil and gas and made China the world’s top car-exporting nation.
- Chinese E-Commerce Giants Pivot to Selling Inexpensive Goods — Alibaba’s, JD.com’s results exceed expectations after companies focus on discounted goods.
- The Battle to Ban TikTok and the Man at the Center of It — Montana Attorney General Austin Knudsen helped start a case that he thinks could make its way to the Supreme Court.
- U.S., China Try to Draw Nations to Their Side as Divisions Harden — After Biden’s meeting with Japanese and South Korean leaders, Xi Jinping looks for friends at a summit in South Africa.
- China’s 40-Year Boom Is Over. What Comes Next? — The economic model that took the country from poverty to great-power status seems broken, and everywhere are signs of distress.
- China, U.S. Test Intelligent-Drone Swarms in Race for Military AI Dominance — Beijing and Washington prioritize autonomous vehicles and surveillance, study shows.
- China Launches Military Drills Near Taiwan After Vice President’s Stopovers in U.S. — Lai Ching-te, the front-runner for Taiwan’s presidency, made transit stops in New York and San Francisco as part of a trip to South America.
- Macau Reclaims Crown From Vegas as World’s Top Gambling Hub — Fortunes of MGM, Sands and Wynn rise after they bled cash during years of pandemic border restrictions in the Chinese city.
- China’s Fertility Rate Dropped Sharply, Study Shows — A Chinese media report gave rare insight into the country’s demographic crisis since Beijing stopped publishing fertility-rate data.
- U.S., Japan and South Korea Boost Alliance to Counter China, North Korea — Biden administration sees partnerships as a way to alter strategic landscape against Beijing.
- Estée Lauder Swings to Loss on Weakened China Business — Cosmetics company also takes hit from softening sales in North America.
- Opinion: Biden’s Success in North Asia… — The President’s diplomacy with Japan and South Korea needs more hard power and freer trade. By The Editorial Board.
- Opinion: Niger’s Coup Shows the West’s Peril in Africa — With China and Russia expanding their influence, the U.S. needs to take action to restore stability to the continent. By François Baird.
The Financial Times
- Why China remains hungry for AI chips despite US restrictions — Nvidia’s processors are weakened for the Chinese market, but are still more powerful than the alternatives.
- China cuts loan rate less than expected as calls grow to stimulate economy — Wall Street banks downgrade growth forecasts below official 5% target as policy response falls short.
- Ramaphosa seeks to avoid global powers ‘contest’ over Brics expansion — Tensions emerge over growth of emerging-market bloc as South Africa prepares to welcome Brazil, Russia, India and China.
- China urges Brics to become geopolitical rival to G7 — Leaders from bloc of developing economies will gather this week to debate expansion.
- German minister proposes tougher rules on Chinese foreign direct investment — Deputy chancellor urges stricter controls on overseas groups’ operations in critical sectors such as semiconductors and AI.
- China set to cut lending rates as economic recovery drags — Policymakers expected to target mortgage-linked loan prime rate to support sentiment.
- China launches military drills around Taiwan after vice-president’s US stopover — Transit stops by Lai Ching-te in New York and San Francisco on a trip to Paraguay were more muted than Tsai’s April visit.
- Camp David pact eases Japan-South Korea tensions — US president unveils trilateral agreement that includes joint military exercises and intelligence sharing.
- China moves to shore up investor confidence in the economy — Beijing props up currency and promises securities market reform amid fears of renewed property crisis.
- China’s Japanification — The good, bad and ugly, according to JPMorgan.
- Opinion: China hits the East Asian demographic wall — Like Japan and South Korea, China has a shrinking population but it has fewer ways to manage the change. By Gideon Rachman.
- Opinion: China’s confidence deficit — The case against a balance sheet recession. By Ethan Wu.
- Opinion: China’s ‘whack-a-mole’ economic playbook leads to confusion — Policymakers are flailing in tackling the problems of its weak blended economy. By Stephen Roach.
The New York Times
- Chinese Confidence Hits Low Point Because of Nation’s Economic Troubles — Consumers and business owners say they feel paralyzed by despair, and their reluctance to spend and borrow is feeding what could become a dangerous cycle.
- BRICS Debates Adding New Members — China wants to expand the five-nation bloc, but the members’ conflicting interests may get in the way.
- China Central Bank Cuts Key Interest Rate on Bank Lending — The action by the central bank, the latest in a series of steps to try to spur lending, was more modest than expected.
- The Sunday Read: ‘The Ongoing Mystery of Covid’s Origin’ — We still don’t know how the pandemic started. Here’s what we do know — and why it matters.
- China Faces a Crisis in Its Real Estate Sector — Beijing wanted to cool its housing market, but created a bigger problem, as the fallout from debt-laden developers and sinking sales spreads to the broader economy.
- U.S.-Japan-South Korea Security Pact Likely to Deepen China’s Dismay — What its signers, Japan, South Korea and the United States, call deterrence, China characterizes as encirclement, even provocation.
- In China, Artists Create Miniature Homes From Memories — China’s rapid economic growth has meant the demolition of countless rural homes, and a burgeoning nostalgia. That’s where the miniaturists come in.
- China to Stage Military Exercises Around Taiwan — The joint air and sea drills, widely expected in response to a presidential candidate’s visit to the United States, so far appear to be relatively limited.
- U.S. Seals Security Pact With Japan and South Korea as Threats Loom — While the former president’s name appeared nowhere in the communique issued by three leaders, one of the subtexts was the possibility that he could return to power in next year’s election and disrupt ties with America’s two closest allies in the Indo-Pacific region.
- Intelligence Agencies Warn Foreign Spies Are Targeting U.S. Space Companies — U.S. officials say Chinese and Russian spy agencies are trying to steal technology from private American space companies and preparing cyberattacks that could disable satellites in a conflict.
Caixin
- Cover Story: China’s ‘Hidden Debt’ of Local Governments Threatens National Economy — Property slump is undermining borrowers’ ability to repay.
- Guangzhou Mulls Housing Vouchers to Revive Home Market — Families affected by urban renovation projects would get transferable vouchers they could use to buy new housing.
- New Indicator Shows China’s Consumers Are Spending — on Services — As the structure of Chinese household spending changes, the statistics bureau has started a new indicator to measure the growth of services consumption.
- Ex-Goldman Head John Thornton Joins Lenovo Board — The U.S. businessman and China expert has become an independent non-executive director and a member of the company’s Nomination and Governance Committee.
- Chinese Flying Car Maker One Step Closer to Take Off For Commercial Use — EHang has completed all the necessary tests for obtaining a type certificate ‘soon’ for its flagship electric vertical takeoff and landing aircraft.
South China Morning Post
- ByteDance closes 8-year-old cloud album app amid proliferation of general-purpose cloud services — TikTok owner ByteDance said it will shut down a cloud album app it launched nearly eight years ago, leaving users rushing to download years of photos and videos.
- Mainland China bans Taiwanese mangoes in latest trade barb, Taipei hits out at ‘one-sided’ act — Beijing’s Taiwan Affairs Office said ‘pests’ detected on imports of mangoes from Taiwan could hurt Chinese farm production and its ‘ecological safety’ when confirming the ban on Monday.
- Popeyes takes on KFC, McDonald’s in China as the US fried chicken brand plans to open 1,700 stores in mainland in next decade — The US fried chicken chain Popeyes is making a renewed push in China with plans to open 1,700 outlets across the mainland in the coming decade, as it takes on a clutch of established rivals like KFC and McDonald’s.
- Alibaba’s Taobao and Tmall to fill 2,000 new job openings for fresh graduates as Chinese Big Tech firms seek new growth — Alibaba’s Taobao and Tmall unit is looking to fill 2,000 entry-level positions, while Tencent says it will offer a large number of job openings from AI to cloud computing.
- Chinese students join rat race to study abroad as job prospects dim amid slowing economy — China’s college students continue to flock abroad for higher education out of dissatisfaction with the domestic education system, with Master’s programmes the primary choice.
Nikkei Asia
- South Korea, India rebuke Beijing over South China Sea claims — U.S. leads international support for Philippines as tensions escalate.
- China leads in research on next-generation solar cells — Risk of U.S. sanctions could jeopardize progress on emerging technology.
- China’s property downturn spreads to trophy office buildings — Vacancies rise at top Beijing and Shanghai towers as tenants seek lower rents.
- Xi’s apparatchiks will struggle to revive economy: China watcher — President’s inner circle lacks global trade and finance know-how, Willy Lam warns.
Bloomberg
- Russia’s Luna-25 Crash on the Moon Hurts Its Space Partnership With China — The crash of Russia’s Luna-25 spacecraft into the moon over the weekend isn’t just a setback for President Vladimir Putin’s ambitions to overcome war-related sanctions.
- Xi Jinping Is Running China’s Economy Cold on Purpose — China is steering clear of big stimulus even in the face of deflation risks.
- Opinion: Don’t Expect Big Tech to Bail Out China’s Economy — After Beijing’s crackdown, executives from Tencent and Alibaba decided to control costs and curb hiring. By Tim Culpan.
Reuters
- China investigates citizen accused of spying for CIA, security ministry says — The 39-year-old Chinese national, surnamed Hao, was a cadre at a ministry and had gone to Japan for studies, which was where the spying recruitment occurred, the ministry said.
- China LNG buyers expand trading after adding more US, Qatari contracts — China’s liquefied natural (LNG) gas importers are starting up or expanding trading desks in London and Singapore to better manage their growing and diversified supply portfolios.
- As Indonesia pushes EV dream, car shoppers stay cautious — Indonesia has ambitious EV growth plans as it races Thailand and India to build out an EV industry as an alternative to China, the world’s largest producer.
Foreign Policy
- U.S.-China De-Risking Will Inevitably Escalate — The logic of reducing dependence always ends in a downward spiral.
- Biden Takes Measured Approach on China Investment Controls — New tech restrictions are limited—but still escalatory.
- Opinion: China Must Pay a Price for Climate Inaction — Preventing catastrophe is now as much about sticks as it is about carrots. By Thom Woodroofe.
Other Publications
- CFR: Anti-Corruption Campaign in China’s Medical Sector: Unmasking the Hidden Agenda — While the Chinese government’s new anti-corruption campaign has the potential to significantly advance China’s healthcare reform, it may also have unforeseen and potentially dire consequences.
- POLITICO: China’s economy is in trouble. Beijing hopes Raimondo can lend a hand. — The Commerce secretary is likely to get an earful about how U.S. export and investment restrictions are kneecapping China’s economy.
- The Washington Post: State lawmakers move to ban Chinese land ownership — Most bills passed in Republican-dominated legislatures, but some found bipartisan support as sponsors argued they address a national security threat.
- The Washington Post: Opinion: A lesson from China’s disappearing data: Nobody hides good news — Having perhaps run out of dissidents and business leaders to disappear, the Chinese government has now moved on to disappearing its data. By Catherine Rampell.
