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
- Volkswagen to Cut EV Costs With New Production Platform in China — Volkswagen and XPeng have a new framework deal to co-develop electrified and digitized architecture to be used in VW brand EVs produced in China.
- Europe’s Action on Forced Labor Lags Behind U.S., Lawmakers Say — The heads of an influential congressional committee raise concerns about forced labor-linked goods being dumped in the U.K. and EU.
- Biden Calls for Steep Hike to Tariff on Chinese Steel — The president wants to increase a key tariff rate on Chinese steel and aluminum products to 25% from 7.5%.
- Chinese Regulators Downplay Effects of New Equities Rules — Chinese regulators sought to reassure investors in the wake of new rules governing its beleaguered equities markets, saying the once-in-a-decade changes will affect relatively few of the country’s thousands of publicly traded companies.
- Australia to Boost Defense Spending Amid U.S.-China Tensions — Australia is boosting its defense budget and rethinking its defense plans as strategic competition between the U.S. and China heats up in the Indo-Pacific region.
- China’s Punishment for People With Bad Debts: No Fast Trains or Nice Hotels — People across the country are being weighed down by their debts and a system that is penalizing them for not repaying what they owe.
- U.S., China to Cooperate in the Fight Against Dirty Money — The U.S. and Chinese governments have started working together to fight money laundering in their financial systems, finding some common ground amid increasing geopolitical and economic tensions between the two countries.
- Western Governments Press Beijing to Use Its Influence With Russia, Iran — German Chancellor Olaf Scholz and two of President Biden’s top diplomats for East Asia used trips to China this week to encourage Beijing to scale back its economic support for Russia and get Moscow to take part in peace talks.
The Financial Times
- China warns west of ‘survival of the fittest’ as manufacturing boosts economy — Trading partners fear factory boom could trigger supply shock after first-quarter data affirms Xi’s industrial strategy.
- Biden calls for tripling of tariffs on Chinese steel — US also to probe Chinese shipbuilding as president’s re-election campaign fights for votes in Pennsylvania.
- Australia increases defence spending by $32bn in response to China build-up — Labor government commits to spending rises to pay for Aukus and long-range missile capabilities.
- China’s Pacific influence under scrutiny as Solomon Islands votes — Incumbent Manasseh Sogavare’s development and security pact with Beijing has stoked western concerns.
- US and China defence ministers in first significant contact since 2022 — Pentagon says Lloyd Austin stressed importance of freedom of navigation in call with Dong Jun.
- China reforms its unloved state-owned enterprises to win back investors — Stocks are faring well compared with wider market as authorities judge management on share price performance.
The New York Times
- Biden to Call for Tripling Tariffs on Chinese Steel Products — In a speech to union steelworkers in Pittsburgh, the president will announce several new measures meant to raise new barriers against floods of Chinese imports.
- Beijing Race Under Scrutiny As Video Suggests Runners Helped Chinese Winner — Organizers are investigating the results of the Beijing Half Marathon, after three runners from Kenya and Ethiopia appeared to wave a Chinese competitor past them before the finish.
Caixin
- Honda to Launch Six EVs in China Under New Brand — The Japanese auto giant plans to roll out the Ye models by 2027, as it looks to catch its rivals in the world’s biggest electric car market.
- China Regains the Travel Bug as Air and Rail Trips Soar — Passenger numbers hit record highs for airlines and trains as travel demand rebounds after Covid.
- Feitian Moutai Price Drop Triggers Billion-Dollar Selloff in Liquor Stocks — Falling price of China’s ‘national liquor’ hits share prices but analysts are confident time will raise spirits.
South China Morning Post
- Chinese state firm agrees US$400m loan for Niger junta in return for oil — Use of resources to repay loans is a popular model for China, but critics warn these deals are unfair and ‘mortgage the future of countries’.
- China lays out 3-year plan to build digital workforce and overcome shortfall of workers needed to win tech race — As well as programmes in industry and education, local governments are encouraged to provide perks, including incentives in housing, start-up investment and schooling and jobs for the family of digital workers.
- China’s thirsty data centres, AI industy could use more water than size of South Korea’s population by 2030: report warns — Hong Kong think tank says annual water use by Chinese data facilities – almost half of which are in dry regions – could more than double by 2030, while AI chatbots ‘drink staggering amounts of water’ to cool themselves down.
- Chinese walkie-talkie maker Hytera resumes sales of two-way radio products after US court suspends global ban — The United States Court of Appeals for the Seventh Circuit on Tuesday suspended the global sales injunction against Hytera’s two-way radio products.
- China’s JD.com ramps up AI use on its platform as founder Richard Liu Qiangdong debuts avatar in live-streaming sessions — The two live-streaming sessions hosted by Liu’s avatar on Tuesday generated more than 20 million views combined.
Nikkei Asia
- Sanctioned Chinese security camera maker Dahua divests from U.S. — Zhejiang Dahua Technology has sold its fully owned subsidiary in the U.S., virtually divesting from the country after it was slapped with a series of sanctions over the years.
- Japan reboots ‘mutually beneficial’ China ties in new Diplomatic Bluebook — The Foreign Ministry’s Diplomatic Bluebook, the 2024 edition of which was released Tuesday, reflects Japan’s view of and approach to dealing with other countries.
- Developer Times China faces winding-up case from HSBC unit — Times China disclosed the information Tuesday in a filing to the stock exchange of Hong Kong. The developer’s shares plunged 37% that day to close at 0.15 Hong Kong dollar.
- Opinion: Beijing’s social engineers will always be obsessed with production — With China’s existing growth model running out of steam, the leading economic buzzwords in Beijing these days are “new productive forces” and “high-quality growth.” By Donald Low.
Bloomberg
- ASML Orders Plunge as Chipmakers Pause High-End Gear Purchases — While the company was hit by weakness in Taiwan and the US, its China business remained relatively resilient.
- Morgan Stanley Is Planning Biggest China Job Cuts in Years — The planned cuts affect about 13% of the 400 bankers in the region, excluding Japan.
- Opinion: China’s Hands Are Tied Against Tangle of US Alliances — Beijing has few good ways to fight back against the multitude of new security partnerships the US is forging in the region. By Minxin Pei.
- Opinion: US Navy Shipbuilding Has Fallen Dangerously Behind — Years of underinvestment by defense contractors and supply chain snarls threaten to undermine America’s maritime might while China’s grows. By Thomas Black.
Reuters
- Japan Inc makes a renewed U.S. push as China fears mount — After years of seeing China as a market of almost endless opportunities, Japanese companies are now taking a more cautious view, executives and analysts say.
- US and Asia allies push for new panel to monitor North Korea sanctions — The envisioned new panel is aimed at continuing the U.N. entity’s work and would be operated by Washington, Seoul and Tokyo and joined by likeminded countries including Australia, New Zealand and some European countries.
- Germany, China sign joint declaration on car data sharing — The two countries will work together to develop shared standards and rules for how to manage the data generated as companies develop autonomous driving, the statement said.
Other Publications
- AP: House panel says China subsidizes fentanyl production to fuel crisis in the United States — Committee investigators said they accessed a government website that revealed tax rebates for the production of specific fentanyl precursors.
- The Economist: China’s better economic growth hides reasons to worry — The country’s leaders are too complacent about deflation.
- Brookings: The limits of renewed US-China counternarcotics cooperation — Even though China’s current goal is to reduce tensions, China’s drug cooperation is vulnerable to new crises in the bilateral relationship.
- Brookings: Should the United States change its policies toward Taiwan? — Given the stakes, it is critical for American leaders and the American public to have a clear understanding of their top interests and objectives in the Taiwan Strait.
- Rest of World: AI “deathbots” are helping people in China grieve — Avatars of deceased relatives are increasingly popular for consoling those in mourning, or hiding the deaths of loved ones from children.
