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
- China’s Xi Shouldn’t Expect an Easy Ride in Europe This Time — France’s Macron is expected to confront the Chinese leader during a visit this week.
- China Services-Sector Gauge Shows Slower Activity Expansion — Chinese tourists made 295 million domestic trips during the five-day Labor Day holiday that concluded Sunday.
- The Rocket Fuel Behind China Shock 2.0: Weak Currency, Deflation — Flat to falling prices coupled with inflation elsewhere, lower exchange rate turbocharge China’s export boom.
- The iPhone Is Losing Its Cutting-Edge Appeal in China — Apple trails in introducing AI applications, but it says innovations are coming soon.
The Financial Times
- Xi and Macron seek to ease trade tensions in Paris talks — Chinese president signals greater market access for French cosmetics and farm products.
- Chinese homebuyers favour ‘second-hand’ houses as property crisis bites — With tens of thousands of new developments yet to be completed, buyers are looking again at older buildings.
- Bonhomie and hardball: Xi visits Europe to avert trade war — Chinese president’s first trip to region since 2019 comes amid rising tensions.
- EU lobbies China to keep agriculture out of trade disputes — Strategic sector should not become a victim of anti-dumping investigations, argues EU commissioner.
- Biden’s China probe throws lifeline to Korean and Japanese shipyards — US president’s investigation into Chinese maritime industrial supremacy could lead to new port fees.
- Can Elon Musk’s Tesla keep straddling the US and China? — The EV maker has agreed a deal over driving technology with a leading Chinese internet company just as Washington is on edge about data security.
- Opinion: Risk of a renminbi devaluation is real — If there is pressure on the Chinese currency, it could have far-reaching economic and political consequences. By George Magnus
The New York Times
- What to Know About Xi Jinping’s Trip to Europe — The Chinese president this week will be visiting France, Serbia and Hungary. His trip comes at a time of tensions with many European countries over trade and accusations of Chinese espionage.
- When Buying a Home Is Treated as a National Security Threat — A new Florida law prohibits many Chinese citizens from buying homes because of national security concerns. Critics say it has fueled discrimination and chilled the local property market.
- In China, Ruled by Men, Women Quietly Find a Powerful Voice — Women in Shanghai gather in bars, salons and bookstores to reclaim their identities as the country’s leader calls for China to adopt a “childbearing culture.”
- China Is Buying Gold, Sending Prices to Record Highs — The global price of gold has reached its highest levels as Chinese investors and consumers, wary of real estate and stocks, buy the metal at a record pace.
- The Death of a Treaty Could Be a Lifesaver for Taiwan — Since pulling out of an arms-limitation agreement with Russia in 2019, the U.S. has quickly developed new weapons that could be used to stop a Chinese invasion force.
- Opinion: Let’s All Take a Deep Breath About China — America’s collective national body is suffering from a chronic case of China anxiety. By Rory Truex
Caixin
- Cover Story: U.S. Widens China Trade Fight to Shipbuilding Which It Lost Decades Ago — The U.S. last month began an investigation of China’s dominant shipbuilding industry, in a move signaling increasing pressure on China that extends beyond technology and into the manufacturing sector.
- China’s Services Sector Expands While Employment Shrinks, Caixin PMI Shows — Activity in China’s services sector grew for the 16th straight month in April on strong demand both at home and abroad. The labor market, however, remained in contraction, according to a Caixin-sponsored survey published Monday.
- Fire Engulfs Historical University Building in China’s Henan Province — A fire engulfed a near-century-old cultural relic building in Central China’s Henan this week, prompting provincial-level authorities to form a joint-agency team to fully investigate the incident to determine the cause.
South China Morning Post
- China sees Labour Day tourism surge, paving way for sector’s full-spectrum recovery — The Labour Day holiday saw a surge of tourism in China, setting records and providing a boost to consumption at a time when the country is looking to solidify its economic recovery.
- China Big Tech: why many overworked employees are quitting to become entrepreneurs amid internet slowdown — China’s internet giants have slashed jobs in recent years, affecting tens of thousands of people, many of whom have decided to become entrepreneurs themselves, with mixed results.
- Should China’s once eastern backwater, Hefei, be an innovation poster child or a cautionary tale? — Hefei, the capital of the eastern Anhui province, has placed a heavy focus on innovation and emerging industries, including new energy vehicles, with officials from across China eager to copy the formula for success.
Nikkei Asia
- Chinese jet put helicopter at risk by releasing flares, says Australia — Australia condemns ‘unsafe and unprofessional’ action in Yellow Sea.
- In China, Costco, Sam’s Club make play for thrifty shoppers — Membership-based chains hang on to customers with low prices, free samples.
- TikTok under U.S. ownership makes sense, Jake Sullivan says — National security adviser finds ‘no reason’ why divestment should not happen.
- Infineon to supply advanced power chips for Xiaomi EVs — Top German chipmaker keen to tap Chinese demand for specialty semiconductors.
Bloomberg
- China’s CICC Demotes Senior Bankers, Cuts Pay to Slash Costs — China International Capital Corp. is planning to demote some of its senior bankers and cut their pay, people with knowledge of the matter said, an unusual move that could lead to voluntary departures from one of the country’s largest investment banks.
- China Builder Vanke Tells Investors It Readied Money to Pay Bond — One of China’s most-watched developers has told some investors that it readied cash for an upcoming yuan bond payment, a move that may boost a firm that’s faced concern about its liquidity amid a broader property debt crisis.
- China’s Thrifty Travelers Show Consumer Confidence Remains Weak — Chinese tourists hit the road in greater numbers during a recent five-day Labor Day holiday but kept a tight grip on their wallets, reflecting still-weak sentiment in the world’s second-largest economy.
Reuters
- Macron, von der Leyen press China’s Xi on trade in Paris talks — French President Emmanuel Macron and EU Commission chief Ursula von der Leyen urged China to ensure more balanced trade at the start of President Xi Jinping’s visit to Paris, during which Macron was also set to press him on Ukraine.
- China’s health body probes hospital after surrogacy claims — China’s National Health Commission said it was investigating a hospital in the southwest megacity of Chongqing for its alleged involvement in surrogacy, which is illegal in China, after wide circulation of the issue on social media.
- Low-budget Chinese travellers highlight shift in Hong Kong tourism — Cost-conscious Chinese tourists have replaced many of the cash-rich mainland travellers who once flocked to Hong Kong, with some only interested in free walking tours of the city and staying across the border in Shenzhen overnight to save money.
Other Publications
- Associated Press: China’s president arrives in Europe to reinvigorate ties at a time of global tensions — Chinese President Xi Jinping kicked off a three-country trip to Europe on Sunday with the continent divided over how to deal with Beijing’s growing power and the U.S.-China rivalry.
- ABC News Australia: Australian helicopter forced to take evasive action after Chinese fighter detonates flares — An Australian pilot was forced to take evasive action after a Chinese military jet detonated flares close to a Navy helicopter near South Korea.
- NPR: China makes cheap electric vehicles. Why can’t American shoppers buy them? — In other parts of the world, bargain electric vehicles from China abound, but a 27.5% tariff has kept those cars out of the United States.
- CNBC: U.S. automakers like GM are rapidly losing ground in China, once an engine for growth — China was once a profit engine for GM, and its top sales market from 2010 to 2023. But the automaker lost $106 million there during the first quarter.
