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 Falls Back Into Deflation, Reviving Fears Over Weak Recovery — Consumer prices fell in October after briefly leveling out, a sign that consumers are still wary despite stimulus measures.
- Surge and Swarm: How China’s Ships Control the South China Sea — The Wall Street Journal breaks down a recent encounter to show how Beijing uses its overwhelming numbers against rivals.
- China’s Appeal Is Waning for U.S. Companies. Citrix Has Joined the Exodus. — Cloud Software Group cites rising costs of business in the market.
- More Executives Vanish in China, Casting Chill Over Business Climate — The chief executive at livestreaming company DouYu and the chairman of a pharmaceutical business are the latest to go missing.
- China Shaken by String of Cancer Cases Tied to Top Oncology Lab — Back-to-back diagnoses sparked a wave of speculation on Chinese social media and renewed scrutiny around lab safety.
- U.S. and China to Meet as Shifting Economic Fortunes Alter Relationship — Buoyant American growth, struggling Chinese economy are likely to shape this week’s talks.
- Agricultural Giant Syngenta Delays $9 Bln IPO Amid Chinese Market Volatility — Agricultural company Syngenta Group said its listing on Shanghai’s main market won’t happen this year due to weak market conditions, the latest delay in its yearslong pursuit of a blockbuster initial public offering.
The Financial Times
- Nvidia develops AI chips for China in latest bid to avoid US rules — Performance of the technology has been moderated compared to what was previously sold in the key market.
- China’s economy falls back into deflation in blow to recovery — Tumbling pork prices undercut growth as consumer confidence lags.
- Chinese phonemakers Oppo and Transsion seek growth in south-east Asia — Manufacturers cite rising foldable demand in region as Huawei crowds out competitors in home market.
The New York Times
- China’s Prices Fall Again, Renewing Fears of Deflation — Consumer prices declined for the second time in four months, while prices charged by factories and other large producers have now been tumbling for over a year.
- Xi Jinping to Address U.S. Business Leaders Amid Rising Skepticism of China Ties — Corporate executives will pay $2,000 a head to dine with China’s leader in San Francisco next week, in one of a series of engagements aimed at stabilizing the U.S.-China relationship.
- Lawmakers Renew Calls to Ban TikTok After Accusations of Anti-Israel Content — The criticism has put the popular video app on its heels at a precarious time.
Caixin
- In Depth: Why Foreign Degrees Have Lost Their Luster for Chinese Graduates — More than 1.2 million Chinese studying overseas are expected to return home this year, according to recruitment site 51job Inc.
- Caixin Summit: Tensions With U.S. Loom Over Middle Eastern Investment to China, Executive Says —Current China-U.S. tensions will continue to “cast a cloud of concern” over the growing number of opportunities for partnership and investment in China for the Middle East, an executive at the Gulf region’s largest non-sovereign wealth fund said Thursday.
- Caixin Summit: ‘Substantial’ Reduction of EU-China Trade Deficit ‘Necessary,’ EU Trade Chief Says — The European Union’s trade chief called for Beijing to reduce the bloc’s trade deficit with China, stating at the 14th Caixin Summit on Thursday that reciprocity in trade is needed to restore the confidence of businesses.
South China Morning Post
- Chinese chip maker SMIC’s sales fall for third straight quarter despite boost from Huawei’s 5G smartphone revival — China’s largest chip maker helped Huawei build the advanced processor for the new Mate 60 Pro-series 5G smartphones.
- Chinese flying taxi maker EHang rejects US short seller’s fraud accusations over firm’s 1,300-unit pre-orders — US short seller Hindenburg Research claimed in a report that EHang was exaggerating the number of its orders and misleading investors.
- China’s economy still ‘important engine, stabilising force’ amid global turmoil despite domestic challenges, says PBOC’s deputy governor — China is set to achieve its economic growth target of ‘around 5 per cent’ this year, but there is still uncertainty over new methods to stabilise growth, Chinese officials and government advisers say.
Nikkei Asia
- China’s slow economy takes 9% off global manufacturers’ profits — Chemical, electronics and seven other industries suffer declines.
- Analysis: Abandonment of ‘Likonomics’ limits Xi Jinping’s options — Key economic policy meeting delayed as leader looks for achievement he can tout.
- China loaned Pakistan $21bn more than reported, study finds — South Asian country has world’s largest Chinese-funded energy portfolio.
- Opinion: With or without foreign investors, China deals will still get done — Local private equity groups tap cheap funding to seize on opportunities from exits. By Henny Sender
Bloomberg
- Where Do US and China Stand on Climate Talks Before COP28? — Progress at the global gathering in Dubai will depend greatly on the world’s two biggest emitters, but a five-day meeting between their top negotiators ended without any details on new initiatives.
- Astra Enters Obesity Drug Race With Chinese Biotech Deal — AstraZeneca Plc clinched a deal to develop a drug from the pharma industry’s hottest class of medicines, agreeing to pay as much as $2 billion to gain an experimental pill for diabetes and obesity.
- Nvidia to Release Three New AI Chips for China, Report Says — Nvidia Corp. will release three new artificial intelligence chips for China, according to a report from state-affiliated news outlet Chinastarmarket, after the US further restricted the Asian nation’s access to advanced semiconductors last month.
- Ping An Slump Shows Why a Country Garden Deal Would Be Dangerous — A $5.5 billion selloff in Ping An Insurance Group Co. is underscoring why a mooted takeover of distressed developer Country Garden Holdings Co. would be perilous for both the insurer and the Chinese financial system.
Reuters
- Exclusive: China asks brokerages to curb leveraged stock trades — China’s securities watchdog is asking brokerages to restrict leverage available to hedge funds that borrow large sums of money via a complex derivative business to trade stocks, three sources told Reuters.
- Qatar wealth fund eyeing investment opportunities in China’s retail, tech sectors — Qatar’s sovereign wealth fund Qatar Investment Authority is examining opportunities to invest in China’s retail, healthcare, tech and logistics sectors, said Abdulla Al-Kuwari, head of the fund’s unit Qatar Investment Authority Advisory (Asia Pacific).
- China’s e-commerce platforms not doing enough on climate -Greenpeace — China’s top e-commerce platforms have made insufficient effort to steer consumers onto a more sustainable path that would help protect the environment and combat climate change, environment group Greenpeace said on Thursday.
Other Publications
- Axios: Biden and Xi prepare to restart military-to-military channels — President Biden and Chinese President Xi Jinping are preparing to announce the resumption of military-to-military communications between the two countries when they meet on the sidelines of the APEC summit later this month, according to three people familiar with the matter.
- BBC News: China’s ‘communist spies’ in the dock in Taiwan — Taiwan is taking aim at China’s alleged “communist spies” ahead of a crucial presidential election, where the island’s relationship with Beijing will be on the ballot.
- The Economist: The Chinese yuan is losing value, yet gaining ground — Low interest rates have a paradoxical effect.
- Associated Press: Back in China 50 years after historic trip, a Philadelphia Orchestra violist hopes to build ties — Fifty years after the Philadelphia Orchestra’s history-making visit to China in 1973 that helped build then-fledgling U.S.-China ties, Davyd Booth hopes for a repeat performance.
- Palo Alto Networks: Chinese APT Targeting Cambodian Government — Monitoring telemetry associated with two prominent Chinese APT groups, we observed network connections predominately originating from the country of Cambodia, including inbound connections originating from at least 24 Cambodian government organizations.
- Politico: Senate passes GOP measure to overturn EV charger rule — The Senate narrowly passed a Republican-led measure on Wednesday aimed at cutting Beijing out of the supply chain for electric vehicle chargers — but which the White House argues would do the very opposite.
- The Detroit News: 6 township officials in Big Rapids area recalled over support for Gotion battery plant — Five members of a Big Rapids-area township board that voted in favor of tax breaks for a multi-billion-dollar battery plant investment by a Chinese-owned company were recalled Tuesday in retaliation for their support for the project.
- Council on Foreign Relations: Can a Summit Ease U.S.-China Tensions? — On the sidelines of the Asia-Pacific Economic Cooperation summit, a rare in-person meeting between U.S. President Joe Biden and Chinese President Xi Jinping will provide an opportunity to put a range of issues on a firmer footing, including military and trade relations. But don’t expect any breakthroughs. By Ian Johnson
- Rest of World: Why Meta still needs China — You can take Facebook out of China, but you can’t take China out of Facebook.
- The Guardian: China has a history of being pro-Palestinian, but now faces diplomatic conundrum — Rivalry with US and current of antisemitism are running up against Beijing’s increasing closeness to Israel.
