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.
Paid subscribers automatically have this list emailed directly to their inboxes every day by 10 a.m. EST. Subscribe here.
The Wall Street Journal
- Three Suspected Spies for China Detained in Germany — The dismantling of an alleged military-technology spy cell underlines the limits of Berlin’s efforts to re-engage with Beijing to boost its stagnating economy.
- Tesla, Li Auto Cut Prices as China’s EV Price War Heats Up — Tesla and Li Auto cut prices further in China amid an intensifying price war that comes as sales of electric vehicles surpassed that of traditional cars for the first time.
- China’s Benchmark Lending Rates Kept Unchanged — China’s benchmark loan prime rates were held steady in line with expectations as signs of stronger economic momentum make near-term policy easing less likely.
- U.S.-China Internet War Intensifies as House Passes TikTok Ban — The measure, requiring ByteDance to sell the popular app or stop operating in the U.S., now heads to the Senate. TikTok’s general counsel plans to step down.
- As Washington Keeps China at Arm’s Length, California Offers a Giant Panda Hug — In a contentious election year, most U.S. politicians are distancing themselves from China. But California’s are embracing it, including through panda diplomacy.
- One French Company’s Lonely Struggle to Survive Fierce Competition From China — After China destroyed Europe’s solar-panel industry, the continent struggles with an onslaught against other green sectors.
- China’s Securities Regulator Eases Trading Rules With Hong Kong — China’s securities regulator released a series of measures to boost trading with Hong Kong, the country’s latest move to shore up investor confidence after recent stock-market volatility.
The Financial Times
- Former parliamentary aide charged with spying for China — Christopher Cash to appear at Westminster magistrates’ court on Friday.
- Germany accuses couple of spying for China — A husband and wife team allegedly conspired to smuggle sensitive military technology out of Europe on Beijing’s orders.
- Norilsk Nickel to move copper smelter from Russia to China as sanctions bite — Vladimir Potanin says metals group will start production in China from 2027 due to difficulties in international payments.
- Pro-China Maldives president’s party sweeps parliamentary vote — Landslide victory brings into focus rivalry between New Delhi and Beijing in the region.
- Chinese flying taxi sector claims global lead thanks to regulatory support — Shanghai’s AutoFlight wins approval for unmanned aircraft in nascent market forecast to be worth $1.5tn a year by 2040.
- Pharma groups warn of supply crunch over China spying law — Factory inspectors refuse to visit country over fears they could fall foul of tightened rules.
- The rare earths mine becoming a bellwether for US minerals policy — Future of South Africa’s Phalaborwa site may depend on strength of Washington’s support.
- Blinken to warn China over weapons-related exports to Russia — Washington considers sanctions on Chinese financial institutions, according to people familiar with the situation.
- Asia’s central bankers struggle to contain strong US dollar — Shifting US interest rate expectations put pressure on Japan’s yen and China’s renminbi.
- Xi tightens grip on China’s military with new information warfare unit — Beijing launches restructuring of armed forces as it challenges US dominance in Pacific.
- PwC’s Evergrande audits set to face new probe by Hong Kong regulator — Apparent whistleblower report cites concerns over firm’s work for collapsed Chinese developer.
The New York Times
- China’s Pinduoduo Has Reshaped Discount Shopping — Pinduoduo appeals to people seeking deals and “downgraded spending,” as consumer purchasing in China has slowed recently amid economic rockiness.
- ‘Cheated’: Chinese Doping Case Roils Swimming — An American who won silver in Tokyo calls for an investigation. A British gold medalist demands bans. But the most bitter fight was between antidoping leaders.
- Heavy Rains and Potential Flooding in Guangdong, China, Force Evacuations — Bad weather in Guangdong Province forced evacuations as forecasters warned of more rain and potential flooding.
- China’s Swimmers Tested Positive. What Happens to Their Medals? — The short answer may be nothing. The world’s top doping regulator said there was “no credible evidence” to take further action.
- Top Chinese Swimmers Tested Positive for Banned Drug, Then Won Olympic Gold — The case, involving multiple swimmers who seven months later won medals at the 2021 Games, prompted accusations of a cover-up and concerns over why antidoping regulators chose not to intervene.
- At G7 Meeting in Capri, Blinken Tackles Rough Seas and Global Crises — Secretary of State Antony J. Blinken and his counterparts, who met on the Italian island of Capri, welcomed signs that tensions between Iran and Israel might not worsen.
Caixin
- China’s Balancing Act to Keep Its Social Security System Afloat — The government must boost contributions, while addressing calls to reduce the financial burden amid a wobbly economy, the slowest wages growth in 40 years and an aging population.
- Hillhouse Unit to Buy Back Longi Green Energy Shares Amid Probe — The investment arm of private equity heavyweight promises to buy back all the shares five months after China’s securities regulator opened an investigation into suspected share transfer violations.
- Crisis Pushes Chinese Shippers to Red Sea Alternatives, Hired Guns — EV and solar products are particularly susceptible to the disruption, as freight expenses make up ‘a large portion of these products’ cost structures,’ analyst says.
- L’Oréal Pledges More Investment in China — The world’s biggest beauty company has 100 million customers in China and the potential to reach 500 million, says L’Oréal China’s CEO.
- China’s High Court Weighs In on Sham Divorces — New judicial interpretation offers guidance on how lower court judges should apply the country’s Civil Code, including on cases involving property disputes between unmarried couples living together.
South China Morning Post
- East Asia joins global military spending surge over China concerns: report — Swedish think tank finds regional expenditure on armed forces rises at its highest rate in a decade.
- China’s king-of-the-hill status shaky as offshore exploration diversifies rare earth supply chain — With more countries searching for – and finding – stores of rare earth minerals, China’s former near-monopolist role in the trade of the metals is gradually being eroded.
- Shining example: how China is propelling gold’s record-breaking rally — Wars in the Middle East and Ukraine, and continuing lower US interest rates have burnished gold’s billing as an investment, but it is the unrelenting Chinese demand that is juicing the rally.
- China’s technology sector faces new round of lay-offs as global firms Ericsson, Tesla, Amazon and Intel continue to shed jobs — Mainland China’s tech sector is bracing for a new round of job cuts at Ericsson, Tesla, Amazon.
Nikkei Asia
- China’s Wang Yi touts South Pacific ties in Papua New Guinea visit — China supports Papua New Guinea’s common development “without any geopolitical selfish interests,” Wang Yi said during a joint news conference with his Papua New Guinea counterpart Justin Tkatchenko.
- Philippines and U.S. to ‘sink’ ships in South China Sea drills — These activities, along with a joint sail with a small French contingent within the Philippines’ exclusive economic zone, will headline what are expected to be the country’s largest-ever joint drills.
- China accelerates purge at state-owned companies to fight graft — China has replaced more than three times as many top executives at state-owned companies so far this year as it did in the same period in 2023.
- VinFast share plunge hits China’s VW-backed battery partner Gotion — Gotion, in which Volkswagen holds 24.68% of outstanding shares, disclosed over the weekend that it had recorded an investment loss of 187.3 million yuan ($26.4 million) on VinFast shares.
Bloomberg
- China Braces for Worst as It Becomes Punching Bag in US Election — With Beijing already becoming a top target in the US election campaign, President Xi Jinping’s government is resisting any move that could backfire on the world’s second-largest economy.
- China’s Bubble Tea Boom Creates a Half-Dozen Billionaires — Sellers of the hugely popular drink are rushing to cash in, but increasing competition threatens to spoil the sugar rush.
- China’s Rapid Solar Growth Slows as Grid Seeks to Keep Pace — China’s blistering roll-out of solar capacity slowed as grids struggled to build enough power lines and backup capacity.
- Opinion: America’s Clean Tech Withers Even as China Imports Are Blocked — It may be challenging to assail China’s lead in some technologies, but the field is wide open for those yet to get established. By David Fickling.
- Opinion: The Second Cold War Is Escalating Faster Than the First — To understand what is at stake in the fight against the axis of China, Russia and Iran, just read “The Lord of the Rings.” By Niall Ferguson.
Reuters
- US travel sector faces long wait for China tourism to hit 2019 highs — The slower-than-expected China travel rebound may further pressure earnings for hotel operators in the U.S. even as they grapple with normalizing domestic travel driven by persistent inflation.
- Souring China dreams force Western financial firms to cut costs — As doubts grow about China’s economic recovery and its markets lag global peers, many of the financial firms are taking a hit on their earnings and are reining in their ambitions for what was a key piece of their global growth strategy.
- Taiwan to discuss new funding with US as Chinese warplanes get close to island — The defence ministry expressed thanks to the U.S. House of Representatives for passing the package on Saturday, saying it demonstrated the “rock solid” U.S. support for Taiwan.
Other Publications
- The Washington Post: Mama’s boys and marital strife are no joke in today’s China — Beijing is cracking down on the format’s allegedly “inappropriate” plots about marital strife for fear they will hurt the government’s campaign encouraging families to stay together and have more children.
- AP: Chinese general takes a harsh line on Taiwan and other disputes at an international naval gathering — Zhang Youxia said China’s territorial sovereignty “brooks no infringement and its core interests cannot be challenged.”
- AP: How the search for the origins of COVID-19 turned politically poisonous — The Chinese government froze meaningful domestic and international efforts to trace the virus from the first weeks of the outbreak, despite statements supporting open scientific inquiry, an Associated Press investigation found.
- The Atlantic: How the Humble Donkey Became a Big Problem for China — A popular remedy is made from hides imported from Africa—but the out-of-control trade is causing geopolitical problems for Beijing.
