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
- With Millions of Jobs At Stake, Europe to Hit China With EV Tariffs — Brussels’ pushback against China is controversial—and not just in China. Europe’s largest carmakers are vocal opponents.
- Shares of Evergrande’s EV Unit Slide After Order to Repay Subsidies — Chinese authorities have ordered Evergrande Auto to repay government subsidies due to its failure to meet contractual obligations, and the company warned it could face the repossession of some assets.
- China Inflation Stays Low Amid Tepid Consumer Spending — China’s consumer prices rose mildly last month while its factory-gate prices continued to fall, suggesting persistently tepid demand as Beijing continues to try to lift lackluster consumption.
- U.S. Adds Three Chinese Companies to Blacklist Over Forced Labor Allegations — The U.S. Department of Homeland Security said it was banning imports from three Chinese companies, alleging they used forced labor from the Chinese territory of Xinjiang.
The Financial Times
- EU to impose 38 per cent tariffs on Chinese electric cars — Brussels moves ahead with additional duties despite opposition from Germany.
- China’s consumer prices edge up as factory deflation eases — May inflation figures point to mixed picture for economy as domestic consumption picks up slightly.
- Philippines says China poses ‘existential’ threat in South China Sea — Defence secretary accuses Beijing of trying to ‘bully’ Manila ‘into submission’ or ‘appeasement’.
- US senator urges UK to investigate Shein’s labour practices ahead of IPO — China hawk Marco Rubio says allegations of ‘unethical and irresponsible business practices’ should be vetted before London listing.
The New York Times
- E.U. Hits Electric Vehicles From China With Higher Tariffs — Leaders in Brussels are trying to curb China’s dominance in the industry, but European automakers fear the taxes will drive up prices and lead to a trade war.
Caixin
- Optic Fiber Manufacturer Breaks IPO Drought as Beijing Stock Exchange Resumes Reviews — Chengdu Uestc Optical Communications aims to raise $20.7 million after first IPO review since February.
- How Hong Kong Could Help Craft Mainland Policies for Digital Assets — Chinese financial institutions are taking advantage of the city’s digital strategy to test blockchain-based financial products that could shape Beijing’s own policies on virtual assets, industry experts say.
- New Trade Barriers Threaten China’s Surging Chip Exports — Stronger demand from global clients saw exports jump 28.5% in May, but fresh U.S. tariffs mean sustained expansion is uncertain.
- Dragon Boat Festival Travel Jumps, Spending Muted — Some 110 million trips were made on the Chinese mainland during the three-day break, up 14.6% from 2019, while tourism spending increased just 2.6%.
- Lowering Key Local Renewable Energy Target Highlights China’s Grid Shortfalls — The country is building renewable projects far more quickly than it is adapting its power grid to accommodate them.
South China Morning Post
- China’s Xi Jinping again calls for greater corporate governance at state-owned firms ahead of third plenum — Ahead of July’s third plenum, fresh comments by the president offer insight into what sort of economy-boosting reforms will be prioritised.
- Vietnam tells China they must respect each other’s maritime rights and interests — President To Lam also calls on Beijing to further open market for Vietnamese produce during talks with Chinese envoy Xiong Bo.
- China’s next moon mission to include Egypt and Bahrain, member of US Artemis Accords — Egypt and Bahrain will contribute hyperspectral camera to Chang’e-7 hunt for water, despite Bahrain’s close ties with Washington.
- Beijing falls behind Singapore in global start-up ecosystem ranking amid US-China tech war — The Chinese capital has dropped three places in a report ranking the world’s top 40 start-up ecosystems.
- ByteDance said to cut 450 jobs in Indonesia after deal merging TikTok Shop with Tokopedia — The overhaul of ByteDance’s e-commerce operation in Southeast Asia’s largest economy comes after its US$1.5 billion deal that merged TikTok Shop with GoTo Group’s Tokopedia.
Nikkei Asia
- AI’s looming climate cost: Energy demand surges amid data center race — From Singapore to China, AI’s appetite for electricity and water grows insatiable as models get larger.
- G7 leaders set to highlight Chinese overproduction — The leaders of the nations will also discuss countering Chinese export controls on key minerals, including gallium, germanium and graphite, and strengthening supply chains at the three-day meeting.
- China accounts for half of Japan’s chipmaking equipment exports — Japanese trade data shows China accounting for half the shipments of semiconductor manufacturing equipment, components for this machinery as well as gear for making flat-panel displays.
Bloomberg
- G-7 to Call on China to Stop Helping Russia’s War in Ukraine — Kyiv’s allies are accusing Beijing of providing Russia with technologies and parts — either found in weapons or necessary to build them.
- China Scoops Up American Soy After Brazil’s Surprise Tax Change — Importers in China, the top commodities buyer, purchased at least 208,000 tons of soy since the change was announced last Tuesday,
- China’s Economic Powerhouse Is Feeling the Brunt of Its Slowdown — As a four-decade rise in living standards shows signs of stalling, the pain in the country’s most entrepreneurial province is acute.
- Opinion: Europe Navigates a Precarious Road on China Electric Vehicle Tariffs — Higher levies provide some breathing space for Europe’s car manufacturers, but risk slowing the green transition. By Chris Bryant.
- Opinion: Stop Comparing Hong Kong to Singapore — They sit in very different corners of the financial system. The rise of one doesn’t spell the demise of the other. By Shuli Ren.
Reuters
- China’s inflation steady, maintains pressure for more stimulus — Weak consumption in China has kept a lid on consumer prices since 2023 despite many rounds of support measures as confidence remains low amid a protracted property sector crisis.
- EU tariffs on China: Global reaction — The European Commission said on Wednesday it would set provisional duties of up to 38.1% on imports of Chinese electric vehicles, a move likely to draw possible retaliation from China.
- Australia, NZ more wary on China as Premier Li visits — Australia is the top supplier of iron ore to China, its largest trading partner, but there is competition for Australia’s rare earths needed for electric vehicles and defence from Western security allies.
Other Publications
- The Guardian: China’s glut of idle property causes headache for the government — The industry that has traditionally powered about a quarter of GDP has been in a downward spiral that policymakers have struggled to halt.
- The Information: American AI Startups Relocate China-Based Engineers — Among the hundreds of American artificial intelligence startups launched in the last few years, those founded by China-born entrepreneurs exercised a unique advantage: They could hire less expensive, talented engineers based in China.
- CSIS: Chinese Assessments of the War in Ukraine, 2 Years on — Leading experts leverage recently translated scholarship to explore how Chinese analysts weigh the key dynamics, likely trajectory, and broader geopolitical implications of the war.
- AP: Faking an honest woman: Why Russia, China and Big Tech all use faux females to get clicks — While technology may grow more and more sophisticated, the human brain remains surprisingly easy to hack thanks in part to age-old gender stereotypes.
- Foreign Affairs: A Requiem for Hyperglobalization — Why the World Will Miss History’s Greatest Economic Miracle.
- Foreign Policy: Modi’s Taiwan Ties Have Rattled China — India’s overtures to the island have coincided with a breakdown in its relationship with Beijing.
