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
- MSCI Deletions Reflect Falling Confidence in China Stocks — Because of the changes, funds that track the index will have to sell holdings, which is likely to further weigh on the market.
- WuXi Shares Hit by U.S. Committee Seeking Inquiry, Blacklisting — The declines came after a group of U.S. lawmakers this week urged the Defense, Commerce and Treasury departments to investigate WuXi AppTec and subsidiaries.
The Financial Times
- Alibaba gives way to China ecommerce rivals on Jack Ma Boulevard — Rural communities say buying across online shopping sites is the new norm for Chinese consumers.
- Volkswagen to discuss future of Xinjiang operations with Chinese JV partner — Statement comes after allegations of forced labour used at a test track in German media.
- Top US House China hawk plans visit to Taiwan next week — Committee chair Mike Gallagher has been sharp critic of Beijing and its regional influence.
- Chinese-backed solar factory stirs suspicions in rural Ohio — Local opponents raise fears over Beijing’s influence as US aims to reshore supply chain.
The New York Times
- As China Tries to Present a Friendlier Image, a New Face Emerges — Liu Jianchao is a Communist Party diplomat skilled at defending tough positions without being pugnacious.
- Hackers for China, Russia and Others Used OpenAI Systems, Report Says — Microsoft and OpenAI said the A.I. had helped groups with ties to China, Russia, North Korea and Iran mostly with routine tasks.
- Lost at Parkland: ‘Peter Was Always My Translator’ — For one family, grieving the child they lost in the Parkland, Fla., school shooting is complicated by differences in language and culture.
Caixin
- China’s Power Reforms: Has the Moment Passed? — A significant meeting that took place in January in Shanghai suggests a Yangtze River Delta regional power market will launch sometime soon.
- China Luxury Market Still Lags Previous Heights Despite ‘Solid’ Gains in 2023 — China’s luxury market last year failed to recover to 2021 levels amid a slowdown in economic growth and as more consumers made purchases overseas, but a modest pick-up from the previous 12 months has inspired optimism among major luxury houses, according to a new report and brand forecasts.
South China Morning Post
- Visitors to China’s tourist spots spike during Lunar New Year as country aims to revive post-Covid travel sector — An extended public holiday and an economic rebound following the end of pandemic restrictions boost travel bookings for hotspots including Hainan, Jiuzhaigou and Xian in the Year of the Dragon.
- EU to blunt China’s edge on steel, aluminium exports as proposed carbon tax could reach 21%: Goldman — Under the EU Carbon Border Adjustment Mechanism a tax of 6 per cent will be levied on steel in 2026, which will rise to as much as 21 per cent in 2034, Goldman estimates. It is part of the EU’s plan to level the field for domestic producers.
- China’s graduates pursue vocational training as firms eye practical, technical skills from problem solvers over academics — Graduates have borne the brunt of shrinking demand, with a record high 11.79 million college students expected to graduate this year, adding further pressure to an already strained job market.
Nikkei Asia
- Hong Kong stock market has weak start to the Year of the Dragon — Exiting CEO cites need to navigate ‘near-term challenges’ amid ‘complex’ environment.
- Tesla rival BYD weighs EV plant in Mexico — Chinese automaker’s regional chief reveals plans with eye on U.S. market.
- China preparing for ‘protracted’ war, says think tank — IISS warns of era of insecurity, with Beijing learning from Ukraine war.
Bloomberg
- HK’s Top Housing Estates Saw Zero Deals During Holiday — Hong Kong’s top 10 private housing estates had no sales during the Lunar New Year holiday for the first time since records began in 2010, according to data from Midland Realty.
- China Taking On US Fuels $147 Billion Rally in Japanese Chip Stocks — Japanese producers of chipmaking equipment are capitalizing on surging demand from China, catapulting their shares to new heights while helping build out a tech supply chain the US has warned may be a threat to global security.
- Alibaba Seeks Middle East Partners as Beijing Deepens Gulf Ties — Chinese e-commerce giant Alibaba Group Holding Ltd. has sought to partner with local firms in Saudi Arabia and the United Arab Emirates as China deepens its ties with the Gulf.
Reuters
- Exclusive: German investment in China rises to record high — German direct investment in China rose by 4.3% to a record high of 11.9 billion euros ($12.7 billion) last year and also increased as a share of the country’s overall investment abroad, official Bundesbank data analysed by the IW institute showed.
- ASML says geopolitics, new export restrictions remain risks — ASML, the largest supplier of equipment to computer chip makers, said on Wednesday that geopolitical tensions and any expansion of a U.S.-led campaign to restrict its exports to China remain business risks.
- Volkswagen in talks with JV partner over future of Xinjiang site — Volkswagen said on Wednesday it is in talks with its joint venture partner in China over the future of its presence in Xinjiang, after a German newspaper reported what it said was evidence of the carmaker’s involvement in forced labour.
Other Publications
- Harvard Business Review: Is China’s Economic Dominance at an Inflection Point? — In 2023 China lost the top spot on the list of countries whose companies populate the Fortune Global 500 list, a position it had held since toppling the USA in 2019.
- The Economist: China is quietly reducing its reliance on foreign chip technology — Firms such as Huawei are cultivating local suppliers.
- Council on Foreign Relations: Does Evergrande’s Collapse Threaten China’s Economy? — A court in Hong Kong has ordered the liquidation of Chinese property developer Evergrande Group, once the world’s largest real estate company. The failure could pose obstacles to China’s economic recovery. By Zongyuan Zoe Liu
- Quartz: The energy transition would cost 20% more without China, analysis says — Energy consultant Wood Mackenzie estimates that $6 trillion would be needed if Chinese clean tech was shunned.
- Center for Strategic and International Studies: Building International Support for Taiwan — Deterring Beijing’s growing threats to peace and stability in the Taiwan Strait will require a strong international coalition of partners to support Taiwan and send credible warning signals to China.
- MIT Technology Review: How the internet pushed China’s New Year red packet tradition to the extreme — Chinese tech companies give out millions of dollars in red packets every Lunar New Year. But users have to earn them through a series of complex tasks.
- The Guardian: EU proposes sanctions on Chinese firms aiding Russian war effort — Bloc hoping to close loopholes that allow Moscow to route military technology via third countries.
