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
- The Dark-Horse Alliance Racing Forward to Take On China — A U.S. charm offensive, a new leader in the Philippines and forceful Chinese actions have helped forge a new era of cooperation between Washington and Manila.
- PetroChina’s Net Profit Rose on Higher Sales — PetroChina’s net profit and revenue rose, primarily due to a rise in sales volume for the Chinese state-controlled oil company’s oil and gas products.
- Cheaper Teslas? China Says ‘You Ain’t Seen Nothing Yet’ — Despite a brutal price year, China’s large automakers are in surprisingly good shape. That means the EV price war will continue.
- Musk Wins China’s Backing for Tesla’s Driver-Assistance Service — Tentative approval for the software feature follows Musk’s surprise visit to Beijing and marks a crucial victory in his push to reignite Tesla’s growth.
- BMW Plans $2.8 Billion China Factory Update to Boost EV Production — BMW will invest $2.8 billion to adapt one of its major Chinese factories to produce more electric vehicles in the world’s largest EV market.
- Musk Courts Chinese Officials to Seek Approval for Tesla’s Self-Driving Technology — His visit to Beijing on Sunday comes as the electric-vehicle maker struggles with flagging demand.
- How TikTok Lost the War in Washington — Coordinated efforts by its critics and missteps by the company led to the law forcing a sale or ban of the popular app.
- Why China Keeps Making More Cars Than It Needs — Despite overcapacity, government officials keep supporting automakers, unleashing “new productive forces” and adding to trade tensions.
- Germany Considers Watering Down Plan to Scrutinize Chinese Investments — Berlin is concerned that an aggressive new investment-screening law could clash with parallel efforts to attract foreign capital.
- Why China Is Holding Its Fire as U.S. Moves to Ban TikTok — Chinese officials have been relatively muted in defense of the country’s most globally successful app, while quietly signaling that they would prefer a ban to a sale.
The Financial Times
- ‘Everything has changed’: foreign auto groups embrace local technology in China — Leading Japanese and Korean carmakers follow VW with moves to match domestic rivals.
- Hong Kong rallies close to bull market territory — Hang Seng set for strongest April performance among major stock indices.
- Elon Musk’s Tesla strikes deal with China’s Baidu for driver assistance — US electric-vehicle maker moves closer to rolling out more autonomous driving features in world’s biggest auto market.
- The parcel war is about to begin — Controversial things come in low-value packages.
- ‘Honeypots’ and influence operations: China’s spies turn to Europe — Arrests in Germany and UK point to growing scale and ambition of Chinese espionage operations.
- EU would need 50% tariffs to curb imports of Chinese electric cars — Report says punitive action being mooted in Brussels would not be enough to deter carmakers.
- Tesla chief Musk meets China’s premier in Beijing — Billionaire arrives in world’s largest car market as he makes push on ‘robotaxis’ in bid to revive fortunes.
- Biden adviser backs bill to counter China in Latin America — Chris Dodd sees chance Congress could pass legislation this year with bipartisan support.
- China factory profits slip as overcapacity troubles economic recovery — US and EU have raised alarms about Beijing’s plans to use manufacturing to boost lagging growth.
- US Pacific commander says China is pursuing ‘boiling frog’ strategy — Retiring Admiral John Aquilino accuses Beijing of gradually raising pressure in South China Sea.
- Chinese regulators warn against SVB-style meltdown — Regional banks have been piling into long-dated sovereign bonds since January.
- Hong Kong stock exchange fights to regain investors’ faith — New team faces steep challenge as high-profile listings sink.
- Opinion: Carmakers need to be tech-savvy to get an edge in China’s EV market — In-car software is becoming a key differentiator. By Lex.
The New York Times
- Tornado Kills 5 in Guangzhou, a Chinese City Battered by Recent Rains — Videos shared by Chinese official media showed transmission towers and power lines igniting and debris swirling in the air in the city, a manufacturing and technology hub by the Pearl River.
- Suddenly, Chinese Spies Seem to Be Popping Up All Over Europe — A flurry of arrests this week reflect the continent’s newly toughened response to Beijing’s espionage activities and political meddling.
- Opinion: In High-Energy Shanghai, a New Mood: Malaise — Chinese pride and triumphalism have given way to malaise in the post-Covid era. By Gish Jen.
- Opinion: A TikTok Divestiture Is Long Overdue — With its TikTok bill, Congress sent message to the world: You cannot disregard basic internet norms and expect to be treated like any other country. By Tim Wu.
Caixin
- How Do the West’s Concerns About China’s Overcapacity Stack Up? — As German Chancellor Olaf Scholz and U.S. Treasury Secretary Janet Yellen concluded their visits to China earlier this month, a central theme became clear: overcapacity.
- Don’t Let a Crisis Go to Waste — Only through a deep understanding of economic and financial crises can we resolve them and turn them into opportunities.
- Four Delegates Ousted From China’s Top Legislature Amid Corruption Probes — The delegates include Han Shuwang, former chairman at the China Aerospace Investment Holding and Yang Xiaoming, former chief engineer of Sinopharm.
- China to Evaluate Adjusting Share of State-Owned Capital in Finance Industry, Vice Minister Says — The comments by Liao Min came in response to concerns by the country’s top legislature over the disproportionately large share in the banking sector.
South China Morning Post
- Mainland China’s top spy agency vows to fight ‘Taiwan independence’ ahead of William Lai’s inauguration — Just weeks before William Lai Ching-te takes office as Taiwanese leader, the Ministry of State Security issues warning to island’s ‘separatist forces’ and pledges to expand public support for peaceful reunification.
- World’s largest electric container ship starts service between China’s major coastal cities — Chinese-built Cosco vessel to help cut emissions as the battery-powered ship begins weekly service.
- Man behind China’s first approved Covid-19 shot expelled from national legislature — Yang Xiaoming has lost his post as NPC deputy over alleged ‘serious violations of discipline and law’, NPC Standing Committee says, as China cracks down on corruption in the healthcare sector.
- Swarovski moves up from crystals to lab-grown diamonds as CEO Alexis Nasard plays ‘the long game’ to get over China’s consumption slowdown — Austrian crystal maker Swarovski has launched a lab-grown diamonds collection in China, in a sign that it has confidence in its second-largest market by sales despite some economic turbulence.
- Chengdu becomes latest major Chinese city to unveil housing market support measures, scraps home purchase qualifications — The measures effective from Monday range from the removal of restrictions on homebuyers to support for the funding needs of developers.
Nikkei Asia
- U.S. obsession for China’s Temu, Shein sends air cargo prices soaring — Shein and PDD Holdings’ Temu ship goods directly from Chinese factories to U.S. consumers using air cargo, an industry already under pressure due to limited flights.
- China’s rare-earth miners suffer profit falls as new supply chains rise — Firms are suffering from falling revenues and profits despite the government’s efforts to protect the strategic industry, as competitors scurry to build their own supply chains and the domestic economy remains shaky.
- China to lift Taiwan tourism restrictions for Fujian residents — Vice Minister Rao Quan announced the eased restrictions to a visiting delegation from Taiwan’s main opposition party, the Kuomintang (KMT), which seeks closer ties with China.
- Opinion: China is buying less from its Asian neighbors, too — Asia’s trade relationship with China is undergoing a tectonic shift. Over the last three years, most of the region’s economies have been exporting less to China, as a share of their overall exports, while at the same time importing even more from China. By Sonal Varma.
Bloomberg
- China’s Mega Banks Post Rare Profit Drops on Margin Squeeze — Industrial & Commercial Bank of China Ltd., the nation’s largest lender, reported its first decline in quarterly profit in more than a year as margins continue to contract.
- Heavy Rains Threaten China’s Rice as Extreme Weather Grips South — China is forecast to get more heavy rain in the coming days, raising concerns that early rice crops in some areas of the world’s biggest producer and consumer might get damaged.
- PetroChina Profit Rises as Economic Recovery Remains Uneven — PetroChina Co. recorded its highest first-quarter profit amid steady global oil prices and even as China’s economic rebound struggles to gain traction.
- Macau Casino Stocks Jump as China Rolls Out New Travel Permits — Shares in Macau casino operators rallied on Monday after Chinese authorities introduced new travel permits in an effort to boost the city’s tourism.
- US Creates Team to Counter China’s ‘Coercion’ Tactics — When South Korea decided to host a US anti-ballistic missile system, the lucrative flow of tourists from neighboring China suddenly dried up. When Australia accused Beijing of meddling in its domestic politics and demanded answers over the origins of Covid-19, China stopped buying exports like coal, wine and beef.
Reuters
- China set to launch high-stakes mission to moon’s ‘hidden’ side — With no direct line of sight with the Earth, Chang’e-6 must rely on a recently deployed relay satellite orbiting the moon during its 53-day mission, including a never-before attempted ascent from the moon’s “hidden” side.
- China firms go ‘underground’ on Russia payments as banks pull back — As China’s big banks pull back from financing Russia-related transactions, some Chinese companies are turning to small banks on the border and underground financing channels such as money brokers.
- Beijing auto show: Foreign automakers eager for Chinese partners — Foreign brands have dominated China’s auto business since the 1990s and have brought extensive know-how to the Asian country. But last year, foreign brands’ collective share of China’s passenger car market fell to 48%.
- China’s transition hampered by flat-lining energy intensity — Conversion of energy into economic output was essentially no more efficient than in 2018, after adjusting for inflation, according to estimates prepared by the National Bureau of Statistics (NBS).
Other Publications
- Foreign Policy: Xi’s Imperial Ambitions Are Rooted in China’s History — Myths of peacefulness belie a record as expansionist as any other power.
- Foreign Policy: Xi Jinping Has Tough Economic Choices Ahead — China is likely to pick security over prosperity.
- The Washington Post: Opinion: How the right U.S. chip strategy can keep Taiwan free — Diversify chip manufacturing away from Taiwan and invest in U.S., South Korean, Japanese and European operations to reduce U.S. economic vulnerability in the event of a war over Taiwan. By Dmitri Alperovitch.
- The Guardian: Cash is king — for now: China signals it will slow transition to cashless society — With tourists struggling to access the two primary digital payment apps, Alipay and WeChat pay, Beijing has put measures in place to make cash payments easier.
- The Economist: Who is supplying Russia’s arms industry? — New research traces the origin of crucial imports.
