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
- Chinese Disinflation Seen Helping Global Central Banks — Falling prices for goods, services and a “broad array of housing and equity” assets in China could help central banks in the developed world cut interest rates, Deutsche Bank’s Alan Ruskin writes in a note.
- China’s Military and Surveillance Capabilities Have Been Boosted by U.S. Funds, House Report Says — The new report says five VC firms invested billions of dollars in companies developing technology allegedly used in human-rights abuses and by the Chinese army.
- L’Oreal’s Sales, Profit Miss Expectations on Stagnating Chinese Beauty Market — Revenue in North Asia slumped 5.8% but the company said it is confident it would outperform the market this year.
The Financial Times
- Tatler Asia to partially refund Hong Kong tickets after Messi backlash — Luxury lifestyle publication estimates paybacks on fixture will cost it $7mn.
- HKEX chief to step down months earlier than planned — Hong Kong stock exchange’s shares down more than 40% under Nicolas Aguzin’s tenure.
- HKMA head rejects calls to prop up sinking Hong Kong stock market — Hong Kong Monetary Authority chief’s statement comes as China increases domestic ETF purchases.
- US House panel accuses VC firms of aiding Chinese military and genocide — Sequoia, Qualcomm and GGV among investment groups cited in congressional China committee report.
- China to export deflation to the world as economy stumbles — Prices of products shipped overseas have been falling at the fastest rate since 2008 crisis.
- Xi and Putin reject US ‘interference’ and pledge industrial co-operation — Chinese and Russian leaders discuss Taiwan and Ukraine in conversation that underscores determination to counter US.
The New York Times
- American Firms Invested $1 Billion in Chinese Chips, Lawmakers Find — A congressional investigation determined that U.S. funding helped fuel the growth of a sector now viewed by Washington as a security threat.
Caixin
- In Depth: Will a Stabilization Fund Prevent a Prolonged China Stocks Slump? — Experience shows such rescue measures only provide short-term relief, and a longer-term recovery will depend on the health of the economy, experts say.
- Guiyang Bank Sues Unit of Copper Giant Amer as $239 Million Loan Goes Sour — Copper king’s company Amer has been involved in more than 160 lawsuits related to contract and debt disputes in different cities.
- 127 People Held Accountable in Fatal Flash Flood in Sichuan — Construction project team’s failure to organize evacuation after warnings was a direct cause of the deaths, says report.
South China Morning Post
- China’s middle class, key to Beijing’s economic recovery plan, put spending on hold over wealth, income concerns — A widely used measure to gauge the health of China’s middle class showed household wealth and income indices remained in contraction in the fourth quarter of last year.
- China plans to spend US$1 billion to revamp Tanzania-Zambia railway in race to control critical mineral trade routes — The Tazara rail line connecting Zambian copper belt with port of Dar es Salaam will be updated through public-private partnership and compete with US- and EU-backed link between resource-rich areas and Angola’s Atlantic coast.
- Chinese telecoms giant Huawei raided in France by financial prosecutors — The firm was searched on suspicion of ‘atteinte à la probité’, a term that could include corruption or misuse of public funds, among other crimes, a justice ministry official said.
- US lawmakers urge commerce department to put TikTok-parent ByteDance on export control list — In a letter to Commerce Secretary Gina Raimondo, lawmakers urged that China-based ByteDance be added to ‘Entity List’ to address ‘critical vulnerabilities’ created by company’s access to US software.
Nikkei Asia
- China private investment firms face growing U.S. scrutiny, analysts say — The Pentagon’s addition of a Beijing-headquartered private equity and venture capital firm to a list of companies with alleged close ties to China’s military.
- Is China seeking a submarine presence in the Sea of Japan? — A new security risk may face Japan: China maintaining a constant military presence in the Sea of Japan, a possible launching point for nuclear weapons aimed at the U.S.
- Chinese listed companies heed government’s call for market stimulus — Hundreds of mainland Chinese listed companies have publicly declared they will take part in the government’s call to prop up the stock market and the overall economy, openly pledging to “enhance corporate quality.”
- Thai investment applications hit 5-year high, led by Chinese money — Applications to invest in Thailand climbed 43% to a five-year high of 848.3 billion baht ($24 billion) in 2023, driven by Chinese capital, the latest official data shows.
- Opinion: Hong Kongers’ fears of extradition to China are coming true — Case of vanished law student highlights anxieties about proposed security law. By Patrick Poon.
Bloomberg
- China’s Property Crisis Is Starting to Ripple Across the World — Chinese investors and their creditors are putting up “For Sale” signs on real estate holdings across the globe as the need to raise cash amid a deepening property crisis at home trumps the risks of offloading into a falling market.
- China’s Economy Under Pressure as Inflation Drops at Fastest Pace in 14 Years — China’s consumer prices fell last month at the fastest pace since the global financial crisis, piling pressure on the government to step-up support for a stumbling economic rebound that’s roiling markets.
- Biden Is Looking Beyond Tariffs to Keep Chinese ‘Smart Cars’ Out of the US — The measures would also apply to electric vehicles and parts originating from China, no matter where they are assembled.
- Lawmakers Say Sequoia, Other VC Firms Fueled China’s Tech Rise — US lawmakers say five top venture capital firms, including Sequoia Capital, have fueled China’s technological rise with at least $3 billion of investments in key strategic sectors.
- Opinion: Xi Jinping Should Take Nationalism Out of China’s Bedrooms — China’s president wants women to have more babies to fulfill their national service. It’s not working and is covering for the real problem: There aren’t enough jobs for everyone. By Karishma Vaswani.
Reuters
- Parallel universes? ‘Magnificent 7’ prone to China risks — The jarring contrast of China’s market bust and soaring U.S. stocks may cloud the vulnerability of the latter to events in Beijing, and some fear Wall Street’s narrow focus heightens that risk.
- As China woes mount, investment banks brace for more Asia job cuts — A new round of staff cuts that began in late 2023 on the Chinese mainland and Hong Kong, key regional investment banking hubs, will gather pace in the coming months.
Other Publications
- The Guardian: In the year of the dragon, will China breathe fire into its deflating economy? — Plunge in consumer prices has fuelled calls for a stimulus package – yet Beijing may stick to the new normal of lower growth.
- The Information: Flexport’s Apple Air Freight Deal Has Burned Through Cash — Flexport’s deal with Apple to ship products from Chinese factories to the U.S. should have been a marquee deal for a company pitching itself as the future of trade.
- The Atlantic: Hong Kong Is Self-Destructing — The city’s lawmakers won’t try to solve its problems. They’re too busy mimicking Beijing.
- The Washington Post: Thai haven draws Chinese tech bros, moms and stoners seeking freedom — As freedoms — of expression, of thought, of association — have steadily been eroded in China since Xi Jinping took control of the country just over a decade ago, freethinking Chinese have looked for havens of intellectual exile.
- Foreign Affairs: The Looming Crisis in the South China Sea — To Avoid a Conflict With China, America Needs a Clearer Strategy.
- Foreign Policy: Everyone Wants a Chip Factory — How the world is future-proofing (and China-proofing) its semiconductor supply chains.
