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
- Lynas Bets on New Rare Earths Products, Breaking China Stranglehold — The company has been seeking to increase its production capacity to feed what it expects will be a steadily growing market for rare earths.
- Amazon Plans Service for Low-Cost China Goods to Fend Off Temu, Shein — Move marks a significant step by the U.S. e-commerce giant to safeguard its market leadership at home.
- As Chinese Stocks Struggle, Owning Boring Ones Has Paid Dividends — Stocks with high dividend yields are a bright spot in China’s sluggish market.
- China’s 618 Shopping Event Brought in Sales, But Perhaps Not Profits — Given unusually steep discounts this year, analysts are skeptical that companies significantly boosted their bottom lines.
- Beijing Falls in Line With Other Top Chinese Cities to Help Home Buyers — The measures were largely in line with market expectations.
- China Industrial Profit Growth Eases Amid Headwinds — Profits at China’s industrial firms rose 0.7% in May from a year earlier, compared with 4.0% growth in April.
The Financial Times
- The new money laundering network fuelling the fentanyl crisis — US officials say Chinese organised crime groups are laundering much of the cash accumulated by Mexican drugs cartels.
- Amazon set to take on Temu and Shein with new discount section — Ecommerce giant seeks to mirror cut-price rivals’ business model of direct-from-China offerings.
- Thousands of Chinese tech workers fail to get Indian visas, industry says — Modi’s ambitions to create a manufacturing power come up against souring diplomatic relations with Beijing.
- Two employees leave Adidas after probe of China corruption claims — Sportswear maker is still investigating a whistleblower’s anonymous allegations of embezzlement.
The New York Times
- Bots Tied to China Are Harassing a Dissident’s Teenage Daughter — A covert campaign to target a writer critical of the country’s Communist Party has extended to sexually suggestive threats against his 16-year-old daughter.
- San Diego Zoo to Receive 2 Giant Pandas From China — The pandas, Yun Chuan and Xin Bao, will be the first to enter the United States in 21 years, the San Diego Zoo said.
Caixin
- In Depth: Consumers, Entrepreneurs Give Banks’ Retail Lending a Much-Needed Boost — Despite market saturation stunting the credit card business and a property market downturn curbing mortgage demand, Chinese banks have seen a rise in their overall retail loans after pivoting toward other consumer lending and individual entrepreneurs in search of growth.
- Beijing Joins the Home Sales Drive by Easing Mortgage Rules — Beijing has slashed downpayment and mortgage rates for homebuyers, becoming the last of China’s mega cities to try and kickstart its ailing housing market.
- Exclusive: Chinese Policy Bank to Name New Vice President, Sources Say — Yang Dongning, head of the Beijing branch of the National Financial Regulatory Administration (NFRA), is set to be appointed a vice president at the Export-Import Bank of China (Exim Bank), multiple sources with knowledge of the matter told Caixin.
South China Morning Post
- China advises ‘softer approach’ to law enforcement to ease jitters in private sector — After incidents related to tax collection that have left some businesses concerned for their operations, China has issued calls for a more predictable approach to law enforcement in an attempt to assuage their fears.
- In a first, China accuses former defence ministers Li Shangfu and Wei Fenghe of corruption — Both men have also been expelled from the Communist Party in an unprecedented Politburo announcement.
- OpenAI’s ban on Chinese access to ChatGPT to spur growth of local alternatives, experts say — OpenAI’s ban on Chinese access to its service is set to contribute to the growth of the Chinese AI sector rather than hinder its progress, industry experts said.
- China to leapfrog from coal to renewables without relying on LNG as bridge fuel: study — Wind and solar have contributed more than LNG to reducing coal’s share in China’s generation mix, report’s author Christopher Doleman says.
Nikkei Asia
- China’s long-awaited third plenum set for July 15-18, state media says — Meeting will be closely watched for measures to spur economy.
- Amazon to launch Temu-style bargain corner for Chinese sellers — Section on its main website will offer goods under $20 as price battle heats up.
- Hong Kong-listed companies slash dollar borrowings in favor of yuan — Snack maker Want Want China cuts greenback funding by over 90% for lower rates.
Bloomberg
- China Miscalculated With Europe in Backing Russia, US Envoy Says — Beijing misjudged the impact on its relationship with Europe when it provided support for Russia’s war in Ukraine, America’s top diplomat in China said, as ties fray between the world’s No. 2 economy and Western democracies over the conflict.
- China’s Finance Elite Face $400,000 Pay Cap, Bonus Clawbacks — The era of big paychecks for Chinese financiers is fast coming to an end as some of the industry’s biggest companies impose strict new limits to comply with President Xi Jinping’s “common prosperity” campaign.
- Beijing Becomes Last Mega China City to Ease Housing Rules — China’s capital city of Beijing eased homebuying requirements for downpayment and mortgages, joining the country’s other mega cities to support the real estate sector.
Reuters
- Taiwan warns against travel to China after execution threat — Taiwan’s government raised its travel warning for China on Thursday, telling its citizens not to go unless absolutely necessary, following a threat from Beijing last week to execute those deemed “diehard” Taiwan independence supporters.
- Philippines has not sought US resupply support in China dispute -ambassador — The Philippines has not asked the United States for support in resupplying its troops in a stand-off with China in the disputed South China Sea, its Washington ambassador said on Wednesday, adding that the U.S. was providing only “visuals” to aid his country.
- Boeing resuming widebody airplane deliveries to China, source says — Boeing is resuming widebody jet deliveries to China which were halted in recent weeks due to a Chinese regulatory review, according to a source familiar with the matter.
Other Publications
- CNBC: In a new round of ‘panda diplomacy,’ China sends giant bears to the U.S. after two decades — For the first time in more than two decades, giant pandas are en route from China to a San Diego zoo in the U.S. — a sign that Beijing is resuming its so-called “panda diplomacy” efforts as relations with the West thaw.
- Associated Press: Prospect of low-priced Chinese EVs reaching US from Mexico poses threat to automakers — Low-priced Chinese EVs pose a potentially “extinction-level event’’ for America’s auto industry, the Alliance for American Manufacturing has warned.
- The Economist: How Chinese goods dodge American tariffs — Policymakers are unsure what to do about a tricky loophole.
- Washington Post: China says U.S. can’t stop it from taking ‘giant steps’ in space — China is the first country to retrieve rocks from the far side of the moon, which experts say could be a game changer in understanding lunar history.
- Foreign Affairs: Have China’s wolf warriors gone extinct? — Why Beijing embraced combative diplomacy—and why it might do so again. By Tyler Jost
- Foreign Policy: Washington wants a white gold rush — The Biden administration looks to domestic lithium mining to boost U.S. energy security and counter China.
- The Information: Amazon to launch Temu-like discount section with direct shipping from China — Amazon plans to launch a section on its shopping site featuring cheap items that ship directly to overseas consumers from warehouses in China.
- Rest of World: Exclusive: Microsoft Bing’s censorship in China is even “more extreme” than Chinese companies’ — New Citizen Lab study comes as U.S. lawmakers scrutinize Microsoft’s willingness to comply with demands from Beijing.
