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., China Agree on Steps to Ease Trade Tensions — Commerce Secretary Raimondo announces new bilateral forum after meeting in Beijing with Chinese counterpart.
- Manufacturers Leaving China Find a Home With Indian Startups — India is looking to build up its factory base, and venture-capital investors are noticing.
- Chinese Stocks Are in a Slump—and Value Investors Are Excited — While U.S. stocks have soared, those of Chinese companies have tumbled. Some investors are sensing an opportunity.
The Financial Times
- UK foreign secretary hits back at Tory critics of China policy — James Cleverly defends Rishi Sunak’s determination to engage with Beijing and seek investment.
- US ‘does not seek to decouple’ from China, says Raimondo — Commerce secretary meets Premier Li Qiang in Beijing as countries aim to revive dialogue.
- Country Garden asks for more time to repay renminbi bond — Proposal for grace period is further sign of financial strain on China’s property sector.
- Can China arrest the renminbi’s slide? — Currency has fallen 5% this year but investors expect further declines.
- China’s shoppers hesitate to spend big in face of deflation — Consumers cautious about purchases as growth prospects slow in world’s second-biggest economy.
The New York Times
- China’s Economic Outlook: Pep Talks Up Top, Gloom on the Ground — Beijing has characterized concerns about the economic slowdown as being inflated by Western critics. Widespread anxiety and pessimism paint a different picture.
- U.S. Does Not Want to ‘Decouple’ From China, Raimondo Says — Gina Raimondo, the commerce secretary, also emphasized U.S. national security concerns in a meeting in Beijing with Vice Premier He Lifeng, who oversees China’s economy.
- She Rose From Poverty as China Prospered. Then It Made Her Poor Again. — Sun Junli is one of many small-business owners, the backbone of China’s economy, who lost everything to a change in government policy.
- China’s Property Crisis Is Rippling Through the Economy — As a real estate meltdown ripples through the economy, small businesses and workers are owed hundreds of billions of dollars, and new projects have dried up.
- Opinion: The Scientist Who Foresaw China’s Stagnation — Yi Fuxian long ago predicted that China’s economic future would hinge on its demographic choices. By Peter Coy
Caixin
- In Depth: China’s Offshore Wind Sector Gears Up for Life After Subsidies — A controversial decision to cease granting national-level subsidies for offshore wind power projects is unlikely to arrest the industry’s rapid growth, with experts expecting the domestic sector to continue its upward trend.
- Analysis: Foxconn Founder’s Independent Leadership Bid Complicates Taiwan Opposition Efforts — To secure his candidacy, Gou must gather signatures from at least 290,000 citizens — 1.5% of the total eligible voters on the island — by early November.
- Opinion: How British Businesses View China’s Latest 24-Point Guidelines to Attract Foreign Investment — While on the surface China faces well documented and widely reported economic challenges, new normal projected GDP growth of between 4% and 5.5% is still exceptional in a global context. By Kiran Patel
South China Morning Post
- China’s post-pandemic economic recovery spurs growth across internet sector, boosting e-commerce, ride-hailing and online travel: report — The world’s second-largest economy had 1.08 billion internet users as of June, an 11.09 million increase from December last year, to put its online penetration rate at 76.4 per cent.
- China urges Britain to build relationship based on mutual respect ahead of Foreign Secretary James Cleverly’s visit — Cleverly says Beijing must live up to international commitments and help end war in Ukraine and ease tensions in South China Sea.
- China’s top chip designers form RISC-V patent alliance to promote semiconductor self-sufficiency — Alibaba’s chip unit T-Head, VeriSilicon and seven other firms announced the formation of the patent alliance at a RISC-V industry forum in Shanghai.
Nikkei Asia
- Volkswagen joins Tesla in accelerating China’s auto price war — Failed industry attempt to avoid ‘abnormal pricing’ leads to second round of cuts.
- U.S. and China agree to new dialogue on trade, chip export curbs — Top commerce officials to hold regular meetings to prevent escalating tensions.
- JPMorgan to invest $1bn or more a year in AI, Daniel Pinto says — Bank head also thinks China will remain ‘very important market’ despite slowdown.
Bloomberg
- Temu-Owner PDD Soars 12% After Sales Defy Chinese Gloom — PDD Holdings Inc. revenue rose a stronger-than-expected 66% after the company behind hit shopping app Temu spent to boost growth at home and abroad to counter a bumpy post-pandemic recovery.
- Raimondo Says US Firms See China Becoming Uninvestible — Commerce Secretary Gina Raimondo said US companies tell her that China is becoming increasingly “uninvestible” because of growing risks to doing business in the world’s second-biggest economy.
- Chinese EV Maker Nio Reports Quarterly Losses and Slimmer Margin — Chinese electric car maker Nio Inc. reported a wider-than-estimated loss in the second quarter as vehicle deliveries came in at the low end of the company’s target.
- Japan Warns China of WTO Action as Fukushima Spat Worsens — Japan may take World Trade Organization action against China, which banned all Japanese seafood imports in response to Tokyo’s release of treated wastewater from the wrecked Fukushima nuclear plant into the ocean.
- China’s Coal Build-Out Raises Questions on Future Power Plans — China is continuing to permit massive amounts of new coal power plants, raising questions about its promises to consign the fuel to a supporting source for renewables.
Reuters
- Chinese county offers ‘cash reward’ for couples if bride is aged 25 or younger — A county in eastern China is offering couples a “reward” of 1,000 yuan ($137) if the bride is aged 25 or younger, the latest measure to incentivise young people to get married amid rising concern over a declining birth rate.
- China extends tax breaks for foreign workers until 2027 — China will extend preferential tax policies for foreign nationals working in the country through to the end of 2027, the finance ministry said on Tuesday, in a boon to foreign firms struggling to attract talent post-COVID.
- Xiaomi revenue drops but EV strategy ahead of schedule — Chinese smartphone maker Xiaomi Corp reported a 4% revenue drop in the second quarter, tracking a shrinkage in China’s handset market, but said its move into making electric vehicles was running ahead of schedule.
- China’s BYD H1 profit triples as deliveries break record — China’s BYD Co Ltd on Monday said first-half profit jumped 204.7% as the new energy vehicle maker broke its delivery record and retained its crown as China’s biggest-selling auto brand.
Other Publications
- The Economist: China’s shadow-banking industry threatens its financial system — Weak economic growth means the country is particularly vulnerable to contagion
- Associated Press: Japan asks China to urge citizens to halt harassment after start of Fukushima wastewater release — Japanese Prime Minister Fumio Kishida asked China on Monday to urge its citizens to halt acts of harassment, including crank calls and stone throwing at Japanese diplomatic facilities and schools, in response to Japan’s release of treated radioactive wastewater from the damaged Fukushima nuclear power plant.
- Foreign Policy: BRICS Expansion Is No Triumph for China — But it is a warning shot for the West to end its strategic slumber in the global south.
- Rest of World: Xiaomi tries to win back Indian consumers — Low demand in entry-level smartphones, a confusing portfolio, and excessive reliance on online sales have all contributed to Xiaomi losing its smartphone leader position.
- Semafor: The coalition aiming to counter American influence — The attendees at last week’s Johannesburg summit were particularly focused on forging a financial system far less dependent on the U.S. dollar and Western institutions like the World Bank.
