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. and China Talk Fentanyl in Latest Sign of Thawing Ties — Meetings in Beijing follow restoration of military-to-military talks and a presidential summit.
- TikTok Pledged to Protect U.S. Data. $1.5 Billion Later, It’s Still Struggling. — Video-sharing app says it has walled off American data, but employees say data is still sometimes shared with its China-based parent.
- BYD Shares Fall as China’s Auto Price War Weighs on Bottom Line — BYD forecast a steep jump in 2023 net profit but that still missed some analyst expectations.
- Key China Bond Yield Hits Lowest in Over Two Decades as Easing Hopes Rise — China’s 10-year bond yield slid below the psychologically-important 2.5% level.
- Wild Swings for China Evergrande Unit Stocks After Liquidation Order — Trade in Evergrande shares remain halted.
- The Real Evergrande Reckoning Is for China’s Foreign Creditors — Evergrande, once China’s largest developer, is finally biting the dust. Foreign creditors will be eating a handful, too.
The Financial Times
- Hong Kong to bring in new security law to follow China’s crackdown — Experts warn proposed measure targeting espionage and state secrets could harm financial hub’s standing.
- Evergrande liquidation to test Hong Kong’s legal reach in mainland China — International investors’ hopes of recovery from indebted developer depend on courts across the border.
- The looming trade tensions over China’s subsidies — The US and EU are busy ‘de-risking’ supply chains but Beijing has its own plan for economic autonomy.
- China’s slump pushes smaller companies overseas for growth — Suppliers drawn by opportunity and driven by limits at home venture out on their own.
- US and Chinese officials to discuss crackdown on fentanyl precursors — Beijing meeting aims to advance agreements between Joe Biden and Xi Jinping during summit last year.
The New York Times
- China’s Real Estate Crisis ‘Has Not Touched Bottom’ — The forced liquidation of China Evergrande epitomizes the sector’s struggles: Nationwide, sales are down and millions of homes have been paid for but not delivered.
- Hong Kong Pushes New Security Law to Root Out ‘Seeds of Unrest’ — Warning of threats posed by spies, the city’s leader expressed confidence that the new law would enjoy public support. “They will love it,” he said.
Caixin
- In Depth: China Intensifies Efforts to End Property Crisis — China’s property sector has shown little sign of climbing out of its protracted slump despite a series of measures issued over the past year to provide financial support for real estate developers and kick-start demand for new homes.
- Arms Smuggling Prosecutions Spark Debate Over What Constitutes a Gun Part — Recent cases have triggered debate in the country about what constitutes a firearm part, what identification methods should be used, and whether the suspects knew the parts were intended for assembling real guns.
- Ex-President of Chinese Football Association Pleads Guilty to Bribery — A former president of the Chinese Football Association (CFA) has pleaded guilty to accepting more than 81 million yuan ($11.3 million) in bribes while on trial in Central China’s Hubei province.
South China Morning Post
- Tencent CEO Pony Ma asks fintech unit to cede share in payments market to avoid challenging banks — The founder also warns staff to focus on ‘safety, not speed’ when venturing into new fintech services like loans and insurance, according to Chinese media reports and people familiar with the situation.
- China to expel prominent scientist Wang Xiaojun from top body as corruption probe keeps sights on PLA Rocket Force — Wang Xiaojun, who will be removed from country’s top advisory body, led development of Long March 7 rockets used to resupply Tiangong space station and launch satellites.
- Chinese fintech giant Ant Group expands overseas payment service Alipay+ to serve visa-free, Lunar New Year travellers — The move comes as China has waived visa requirements for travellers from several countries, while Chinese tourists are expected to head abroad during Lunar New Year.
Nikkei Asia
- Hong Kong unveils new security law in further repeal of liberties — Legislation to target foreign interference and state secrets.
- Singapore’s investment pledges from U.S., China dropped in 2023 — Total commitment falls 44% amid ‘challenging’ global environment.
- Evergrande’s liquidation: 5 things to know about what comes next — ‘Arduous process’ will test China property market, cross-border insolvency regime.
Bloomberg
- Evergrande Liquidation to Leave Little for Creditors to Claim — China Evergrande Group creditors are set to recover just a fraction of the billions of dollars worth of the builder’s debt they hold, with most of its assets likely hard to access for liquidators.
- US Firms Want Hong Kong to Stop Talking About National Security — US companies in Hong Kong want the once-freewheeling city to stop talking about national security even as they face growing geopolitical risks, according to the American Chamber of Commerce in Hong Kong.
- Sino-Ocean Said to Tell Creditors Local Debt Payment Comes First — Chinese developer Sino-Ocean Group Holding Ltd. told a key group of its dollar bond creditors that it will prioritize repaying its local debt, according to people familiar with the matter.
Reuters
- Exclusive: US disabled Chinese hacking network targeting critical infrastructure — The U.S. government in recent months launched an operation to fight a pervasive Chinese hacking operation that successfully compromised thousands of internet-connected devices, according to two Western security officials and one person familiar with the matter.
- Evergrande’s fate hinges on recognition of China authorities — Any liquidation of property giant Evergrande hinges on Chinese authorities recognising the ruling of a Hong Kong court, in a decision that could also affect the city’s standing as a global financial centre, legal practitioners said.
- China’s wind, solar capacity forecast to overtake coal in 2024 — China’s installed wind and solar capacity will overtake coal for the first time this year, an industry body forecast on Tuesday.
Other Publications
- Quartz: Hong Kong wants to make everything a ‘state secret’ — an echo of Beijing — The city government has proposed more stringent security laws to combat lurking “threats.”
- Washington Post: Tired of hostile Washington, China courts Indiana and Minnesota — When mayors from cities including Carmel, Ind., and Oxford, Miss., went to China recently, they were feted in ways big and small. They test-drove the newest electric-vehicle models, some with seats that doubled as massage chairs.
- Foreign Policy: Is China Sincere About Peace in Ukraine? — Beijing has done very little to help—but it could.
- Center for Strategic & International Studies: China’s Waterlogged Missiles Don’t Matter — While recent reports of widespread corruption in China’s Strategic Rocket Force have rightly raised questions about the reliability of their nuclear forces, U.S. policymakers should not stray from current strategic plans and efforts to advance risk reduction with Beijing. By Heather Williams
- CNBC: IMF upgrades global growth forecast, citing U.S. resilience and policy support in China — The International Monetary Fund upgraded its global growth forecast for 2024 by 0.2 percentage points, to 3.1%.
