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 Property Bonds Looked Cheap at 20 Cents on the Dollar. They Weren’t. — Distressed-debt funds lost big after betting on a turnaround in the sector.
- War in the Middle East Challenges Biden’s Defense Strategy — The U.S. is faced with re-establishing some of its military footprint in a region it has been trying to draw away from.
- Defying U.S. Pressure, China Rolls Out Red Carpet for Putin — Russian leader’s attendance at Belt and Road summit marks his highest-profile overseas trip since being accused of war crimes in Ukraine.
- U.S. Tightens Curbs on AI Chip Exports to China, Widening Rift With U.S. Businesses — New rules make it tougher for Nvidia and Intel to sell advanced semiconductors to the Chinese market.
The Financial Times
- Putin visits Beijing for first time since Russia’s invasion of Ukraine — Russian president will meet Chinese counterpart Xi Jinping on Tuesday ahead of summit tomorrow.
- China’s economy: five things to look for in the latest growth figures — Despite a lacklustre post-pandemic rebound the country may still claw its way to this year’s GDP target.
- Slowing Chinese EV demand drives down battery metal prices — Lithium, cobalt and nickel prices tumble as ‘irrational exuberance’ wears off and surge in supply hits markets.
- US tightens rules on AI chip sales to China in blow to Nvidia — Biden administration’s move aims to limit country’s access to advanced processors.
- Opinion: America finds there is more to the world than China — War in Europe and the Middle East is slowing the vaunted pivot to Asia. By Janan Ganesh.
The New York Times
- Putin Visits China to Bolster Ties With ‘My Friend,’ Xi — The Russian leader is likely to push for more economic support when he meets with his Chinese counterpart in Beijing.
- What is China’s Belt and Road Initiative and How Is It Changing? — Xi Jinping enhanced China’s sway in the world by lending money for infrastructure. Now he’s collecting debts and rethinking his signature aid initiative.
- China Bet It All on Real Estate. Now Its Economy Is Paying the Price. — After relying on a borrow-to-build model for decades, Beijing must make difficult choices about the country’s housing market and economic future.
Caixin
- Former China Life Unit Executive Falls Under Graft Probe — Mei Jianya, who led Zhejiang branch of China Life Pension, joins a growing parade of officials caught up in a corruption crackdown.
- Borrowing Surges Among Private Shenzhen Enterprises — Tech hub in southern China’s Guangdong — the country’s hottest economy — shows reviving business confidence as supportive policies take hold.
- Canton Fair Welcomes Return of More Foreign Buyers — Merchants at China’s top trade expo report that traffic of customers from abroad is almost back to pre-pandemic levels.
- Sports Personality’s Disappearance Linked to Bribery Probe, Source Says — Duan is accused of bribing Liu Aijie, a former director of the Preparation Office for the Olympic Games of the General Administration of Sport (GAS).
South China Morning Post
- Apple CEO Tim Cook makes second China visit in 2023 amid tough iPhone 15 market and App Store controversy — Cook’s latest China trip comes at a time when Apple’s iPhone 15 series is facing stiff competition from Huawei’s new 5G handsets.
- China’s wants Inner Mongolia to be exemplar region for energy and minerals, boost Russia and Mongolia transport links — First provincial-level high-quality development plan from China’s State Council for the Inner Mongolia autonomous region focuses on ecology, energy, strategic minerals and border security.
- Chinese embassy in US warns students against joining protests over Israel-Hamas conflict — Students told to ‘avoid going to crowded public places’ where demonstrations are being held after a series of incidents at leading US universities.
- Baidu says AI chatbot Ernie now matches OpenAI’s GPT-4, unveils new enterprise tools — CEO Robin Li showed off the capabilities of Ernie Bot 4 at the Baidu World 2023 conference in Beijing on Tuesday.
- Opinion: US-China decoupling: inward turn could undo gains made in ‘de-risking’ efforts — For all the talk of the benefits reshoring and ‘de-risking’ can bring domestic workers, they also introduce new risks to people’s way of life. By Janet Pau.
Nikkei Asia
- Hong Kong’s family office push falls flat with global billionaires — Mainland Chinese are the most interested, but even they prefer Singapore.
- Flying taxi obtains ‘world’s first’ type certification from China — EHang’s fully autonomous craft approved after more than 40,000 test flights.
- Uniqlo’s China stores hike pay by up to 44% amid expansion push — Fast Retailing looks to secure top talent and boost brand image in key market.
- Opinion: Recent warming in U.S.-China ties will not last long — With American and Taiwan elections approaching, further tensions likely. By Ian Bremmer.
Bloomberg
- Tencent’s Record Buybacks Won’t End $42 Billion Rout: Tech Watch — Tencent Holdings Ltd. has returned about $24 billion to shareholders via buybacks and dividends this year.
- Will Xi Jinping’s Gamble on Vladimir Putin Pay Off? — Xi is set to meet his Russian counterpart just as the US presses China to help it reduce tensions in the Middle East. The relationship between the two leaders faces heightened scrutiny.
- Australian Says China Imprisoned Her for Sharing a Document — Australian journalist Cheng Lei said China jailed her for sharing an official briefing document just before the government released it, an act that led to some three years of detention.
- Alibaba, Tencent Join Funding for Chinese AI High-flyer Baichuan — Alibaba Group Holding Ltd. and Tencent Holdings Ltd. have joined a $300 million financing for Baichuan, one of scores of Chinese AI startups hoping to capitalize on a surge of interest in developing ChatGPT-like services.
- Opinion: Xi and Putin Think They’re Winning — and Maybe They Are — Russia and China are continental powers upending a maritime order. By Marc Champion.
Reuters
- China tightens curbs on foreign travel by bankers, state workers — Ten current and former employees told Reuters the curbs had been widened since 2021 to include bans on overseas travel and tighter limits on trips’ frequency and duration.
- Exclusive: China tells banks to roll over local government debts as risks mount – sources — Local government debt reached 92 trillion yuan ($12.58 trillion), or 76% of the country’s economic output in 2022, up from 62.2% in 2019.
- Analysis: Softer China diplomacy as Xi navigates challenges at home — The conciliatory approach towards rivals as well as China’s partners in the developing world comes as President Xi Jinping gets to grips with the most significant domestic economic problems seen in years.
- Country Garden: What happens next? — A non-payment is expected after Country Garden last week warned about its inability to meet offshore debt obligations. Its dollar bonds are being bid at below 6 cents on the dollar.
Other Publications
- The Guardian: Canada accuses China fighter jets of ‘reckless’ interception of military plane — Defence minister says Chinese jet came within five meters of Canadian surveillance plane on UN operation over international waters.
- The Information: The Electric: Xiaomi Is Likely to Upstage Apple With a Tech-Laden EV — The same year Apple engineers began working on Titan, China’s Xiaomi paid $13.7 million for a small stake in a Chinese GPS navigation company.
- ChinaFile: What’s Behind China’s Laws to Protect Privacy? — What are the implications for understanding the role of privacy laws in non-democratic states?
- The Economist: How China’s Belt and Road Initiative is changing — The many motivations behind Xi Jinping’s key foreign policy.
- The Economist: Are America’s allies the holes in its export-control fence? — The goals, resources and reach of anti-Chinese technology sanctions vary widely.
- The Atlantic: India Isn’t Signing Up for China’s New World Order — The United States isn’t the only competitor getting in the way of China’s global ambitions.
- The Atlantic: China Changed Its Mind About World War II — What the Pacific version of the Nuremberg trials left undone.