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
- How Chinese Marijuana Operations Cropped Up in Small-Town America — From New Mexico to Maine, Chinese networks are cashing in on cannabis legalization.
- PwC’s China and Hong Kong Units Fined in Training Exam Cheating Probe — The Public Company Accounting Oversight Board reached its first settlements with firms in the region since gaining inspection access.
- In China, Henry Kissinger Was the Ultimate Door-Opener — The engineer of the opening in U.S.-China relations wielded his influence and unparalleled access over five decades.
- The Big Risk Causing Investors to Shun China — More than $24 billion of foreign money has left mainland China’s stock market since August as geopolitical risks turn people off investing there.
- Biden’s EV Subsidy Rules Leave Room for Chinese Suppliers — The new requirements still likely mean fewer options for car buyers hoping to claim a $7,500 tax credit.
The Financial Times
- Two executives of groups linked to troubled Chinese shadow bank go missing — Financial conglomerate Zhongzhi is under investigation after announcing it faced $36bn shortfall.
- US moves to choke China’s role in electric vehicle supply chain — Strict new IRA tax credit rules aim to boost domestic industry but could slow transition from petrol.
- PDD/Alibaba: nimble rival catches up with Jack Ma’s behemoth — Temu owner’s global strategy has paid off.
- Reclusive Shein founder Sky Xu prepares to enter the spotlight with IPO — Chinese ecommerce tycoon behind fast-fashion group beloved by the Instagram generation prefers to fly below the radar.
- Restructure or liquidate? Deadline looms for China’s Evergrande — Heavily indebted developer must come up with a plan before crucial court hearing on Monday.
- PwC fined $7mn over exam cheating by China and Hong Kong staff — US regulator says more than 1,000 of firm’s workers cheated on tests designed to familiarise them with US standards.
The New York Times
- Kissinger: A Player on the World Stage Until the Very End — He traveled the globe when contemporaries had died or retired. Capitals around the world were still open to him. And he remained the toast of Davos.
- 4,789 Facebook Accounts in China Impersonated Americans, Meta Says — The company warned that the inauthentic accounts underscored the threat of foreign election interference in 2024.
- Kissinger Met with Xi and Other Powerful Figures into His 100th Year — Even after becoming a centenarian, he traveled the globe to try to show he still had influence.
- U.S. to Limit China’s Ability to Benefit From Electric Vehicle Industry — The Biden administration issued new rules to prevent Chinese firms from supplying parts for electric cars set to receive billions of dollars in tax credits.
Caixin
- U.S. Regulator Hits Three China-Based Accounting Firms With Hefty Fines — The penalties are among the highest the PCAOB has ever imposed on any auditor and the first given to the Chinese arm of one of the ‘Big Four’ global accounting firms.
- Former Provincial Political Advisor Pleads Guilty in $26 Million Bribery Case — Sun Yuanliang, ex-vice chairman of Liaoning’s political consultative committee, took advantage of his position to help others get loans and promotions.
- Hozon EV Unit Kicks Off Production at First Overseas Plant in Thailand — Thailand has become a hot destination for Chinese EV manufacturers as its government wants 30% of cars produced in the country to be zero-emission vehicles by 2030.
South China Morning Post
- Beijing court’s ruling that AI-generated content can be covered by copyright eschews US stand, with far-reaching implications on tech’s use — The Beijing Internet Court’s decision is expected have far-reaching implications for future AI copyright disputes, which could eventually benefit Chinese Big Tech companies.
- China-Russia ties have trended steadily upwards since end of Cold War: study — Researchers find economic ties have overtaken military links, but no sign of ‘dramatic’ changes in relations in the past 30 years.
- China’s economic data again under the microscope, local authorities warned over falsifying statistics — China’s statistics authority says regions in Guizhou province falsified data, while county governments in Shaanxi province intervened in data gathering following a round of inspections earlier this year.
- China’s Xinjiang building world’s longest highway tunnel in play for regional connectivity — A highway tunnel under construction in China’s Xinjiang region is expected to be the world’s longest, and serve as a symbol of stronger ties with Central Asia.
Nikkei Asia
- Clouds gather over Alibaba’s key unit after IPO plans shelved — When Alibaba Group suddenly announced it no longer planned to spin off its cloud unit, it cited “uncertainties” over its ability to procure advanced chips due to U.S. export controls.
- Garment makers in Myanmar face value chain hurdle — Myanmar’s foreign-investment-driven garment industry is attempting an image makeover that will test how willing rival Asian manufacturers are to balance cooperation and competition.
- GAC and Changan push into Southeast Asia in 2nd China EV wave — More Chinese electric vehicle makers are heading into Southeast Asia, hoping to emulate predecessor BYD’s success, but their compatriot’s dominance in the market poses a challenge to their ambitions.
- Opinion: China can contain its property market troubles — Stronger policy framework would reduce risk of further real estate bubbles. By Siang Leng Wong and Ke Ji.
Bloomberg
- BYD Has Tesla in Its Sights as EV and Hybrid Sales Hit Record — BYD Co.’s sales of electric and plug-in hybrid vehicles hit a record in November, helped by price cuts as the Chinese company tries to meet its annual target and topple Tesla Inc. in worldwide quarterly deliveries.
- How Huawei Is Helping China Build Up Its Semiconductor Independence — The government is increasingly relying on Huawei — the company Washington tried to destroy — to lead the country’s efforts to build an independent semiconductor ecosystem.
- China’s Xi Seen Delaying Key Economic Plenum, Defying Norms — President Xi Jinping appears set to postpone a party meeting held every five years to chart his nation’s long-term reform agenda, the latest example of the Chinese leader disregarding decades-old norms.
- China’s AI Chipmaker Biren Wins $280 Million In Funding Pledge After US Sanction — Biren recently secured a pledge of 2 billion yuan ($280 million) from Guangzhou government-backed investors after the company was blacklisted by Washington in October, according to people familiar with the matter.
- Xi Takes Flurry of Small Steps to Open China After US Trip — President Xi Jinping’s government has vowed all year to restore foreign investors’ shattered confidence in China.
Reuters
- Exclusive: China lures hundreds of Taiwan politicians with cheap trips before election — Beijing has sponsored cut-price trips to China for hundreds of Taiwanese politicians according to Taiwan sources and documents, unnerving officials with a broad campaign that one called “election interference”.
- Global pension funds now balking at China — A survey by the Official Monetary and Financial Institutions Forum of 22 public pension and sovereign wealth funds managing $4.3 trillion in assets showed not one had a positive outlook for China’s economy or saw higher relative returns there.
- China, Vietnam weigh rail link through rare earths heartland — The two countries agreed to boost trade ties and promote railways connections, according to a readout published on the Vietnamese government portal on Friday after China’s top diplomat Wang Yi met Vietnamese leaders in Hanoi.
Other Publications
- POLITICO: Biden’s latest China crackdown puts his EV ambitions at risk — The new rules could reduce the number of electric cars that qualify for federal subsidies.
- The Washington Post: Pentagon plans a drone army to counter China’s market dominance — The Defense Department plans to procure ‘thousands’ of cheap U.S.-made drones within two years.
- The Washington Post: Before China’s coal is even burned, its mines are warming the planet — The nation’s coal mines are major emitters of methane, and that is complicating global talks on reducing this potent greenhouse gas.
- AP: The Philippines opens a new monitoring base on a remote island in the disputed South China Sea — High-seas faceoffs between Chinese and Philippine ships have intensified this year in the contested waters, fueling fears of a larger conflict that could involve the United States.
- The New Yorker: Henry Kissinger’s Hard Compromises — In his final years, the architect of America’s opening to China watched as Washington turned against his philosophy of engagement regardless of the costs.
- The Economist: China is building nuclear reactors faster than any other country — Over the past decade China has added 37 nuclear reactors, for a total of 55, according to the International Atomic Energy Agency, a UN body. During that same period America, which leads the world with 93 reactors, added two.
- The Guardian: Chinese prisoner’s ID card apparently found in lining of Regatta coat — Derbyshire woman who bought item said she felt uneasy at find that raises concerns over possible prison labour.