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’s Economic Pain Worsens as Real-Estate Sales Plummet — The world’s second-largest economy faces problems on multiple fronts as factory activity also slows.
- Missing Boxes, an Email From China: How a Chip Shipment Sparked a U.S. Probe — Authorities stopped the shipment by autonomous-trucking firm TuSimple in its latest tangle with the American government.
- Negative Takes on China’s Economy Are Disappearing From the Internet — Chinese authorities warn against denigrating the economy and urge officials to highlight its ‘bright prospects’.
- Foreign Creditors Face Challenge in Reaching China Evergrande’s Assets — It might take years to recover pennies on the dollar on nearly $20 billion in debt investments.
- Chinese Lithium Producers’ Shares Drop in Wake of Profit Warnings — Ganfeng Lithium and Tianqi Lithium expect steep profit drops amid lower selling prices and weakening profit margins.
- Citi Names Luke Lu as New China Country Officer — Lu will oversee the bank’s Chinese businesses and maintain client relationships and regulatory commitments in the country.
The Financial Times
- Taiwan’s military drills focus on Chinese naval threat after election — Exercises simulate laying sea mines and targeting submarines as Beijing expected to step up pressure.
- China’s big airlines set for fourth straight lossmaking year — Doubts over country’s economic recovery and lack of direct flights to US weigh on travel demand.
- China’s manufacturing activity contracts for fourth month — Non-manufacturing index climbs into positive territory but concerns remain about weak confidence.
- Chinese investors buy gold as property and stock markets fall — ‘Blistering’ demand from central banks also helps keep yellow metal above $2,000 per troy ounce.
- China challenges the west for driverless car supremacy — Experts believe carmakers and tech companies are closing gap with US rivals despite Beijing’s safety concerns.
- Sullivan says US and China aiming to set up Biden-Xi call ‘soon’ — National security adviser urged Beijing to use leverage with Iran to rein in Houthi attacks in Red Sea.
The New York Times
- How China Censors Critics of the Economy — As Beijing struggles with a slumping stock market and a collapsing real estate sector, commentary and even financial analysis it deems negative are blocked.
Caixin
- In Depth: Chinese EV Drive Into Thailand Galvanized by Smog and Subsidies — Choking smog is rising to the top of Thailand’s political agenda. With vehicle exhaust contributing much of the kingdom’s air pollution, the crisis has emerged as an opportunity for Chinese electric vehicle (EV) firms.
- China’s Local Governments Paid Record $174 Billion in Bond Interest Last Year — China’s local governments spent a record 1.23 trillion yuan ($174 billion) on bond interest payments last year, up nearly 10% from 2022, official data showed Tuesday.
- Myanmar Police Hand Over 10 Telecom Fraud Suspects to China — Law enforcement in Myanmar handed over 10 major telecom fraud suspect to China this week, including six ring leaders wanted by Beijing, China’s Ministry of Public Security (MPS) announced.
South China Morning Post
- Chinese selfie apps giant Meitu sees profits triple in 2023 on back of new generative AI-powered tools — Hong Kong-listed Meitu’s success stands in stark contrast to how many other firms struggle to monetise their own generative artificial intelligence initiatives.
- China EVs: lithium producers Ganfeng, Tianqi issue profit warnings, blame price plunge for battery material as stocks sink — The two producers of the metal that powers EV batteries expect 2023 net profit to decline by as much as 80 per cent.
- US firms in Taiwan fight geopolitical, supply-chain risks by picking local partners as investments grow: AmCham head — Investments in Taiwan from the United States reached US$932 million last year, up from US$398 million in 2022 and hitting the highest single-year total since 2008, according to official Taiwan figures.
Nikkei Asia
- U.S. and China worked to lower Taiwan election risks, Sullivan says — National security adviser hints at new working group on global economic stability.
- Iran’s oil exports reach 5-year high, with China as top buyer — Rising supply from sanctions-hit country tamps down prices amid tensions.
- Chinese EV makers to help boost Thai auto production in 2024 — BYD and SAIC’s plans to manufacture locally seen expanding sector by 3%.
Bloomberg
- Hong Kong ‘Underwater Mortgage’ Levels Surge to Two-Decade High — “Underwater mortgage” levels in Hong Kong surged to a two-decade high amid a prolonged slump in what’s forecast to be one of the world’s worst property markets this year.
- Hong Kong Article 23: Why Does City Want Its Own National Security Law? — A long-shelved security law that once galvanized Hong Kong’s pro-democracy movement is making a comeback.
- China Says Trump Could Abandon Taiwan If He Wins US Election — China said a victory by Donald Trump in the presidential election later this year could lead to the US abandoning Taiwan, comments intended to sow doubt over Washington’s commitment to the island.
Reuters
- China’s factory activity shrinks again, weak demand hobbles economy — China’s manufacturing activity contracted for the fourth straight month in January, an official factory survey showed on Wednesday, suggesting the sprawling sector and the broader economy were struggling to regain momentum at the start of 2024.
- The logistics of war: How Washington is preparing for a Chinese invasion of Taiwan — When U.S. and Australian troops practiced amphibious landings, ground combat and air operations last summer, they drew headlines about the allies deepening defense cooperation to counter China’s growing military ambitions.
- Taiwan angered at ‘unilateral’ China change to Taiwan Strait flight path — Taiwan’s government expressed anger after China “unilaterally” changed a flight path close to the sensitive median line in the Taiwan Strait, saying it appeared to be a deliberate attempt to change the status quo for possible military means.
Other Publications
- Associated Press: Chinese hackers are determined to ‘wreak havoc’ on US critical infrastructure, FBI director warns — Chinese government hackers are busily targeting water treatment plants, the electrical grid, transportation systems and other critical infrastructure inside the United States, FBI Director Chris Wray will tell House lawmakers on Wednesday in a fresh warning from Washington about Beijing’s global ambitions.
- POLITICO: Jake Sullivan touts successes of Biden administration’s China policy — National security adviser pushes back on critics of administration’s Beijing outreach and says Biden-Xi direct communication is crucial to stabilizing ties.
- MIT Technology Review: Why BYD is breaking into shipping — It’s a gamble, but as sales of its EVs soar overseas, it could pay off big time.
