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 Underground Network Sneaking Nvidia Chips Into China — An informal market circumvents U.S. export controls through supply-chain blind spots—and in one case, a student’s luggage.
- U.S. Sends a Plane of Chinese Migrants to China — First large such removal operation since 2018 is carried out in coordination with Beijing.
- China EV Sales Rallied in June on Policy, Price Cuts — Sales were helped by government subsidies, tax breaks and steep discounts.
- Beijing and Moscow Go From ‘No Limits’ Friendship to Frenemies in Russia’s Backyard — Central Asia moves further into China’s orbit as Ukraine war loosens Russia’s grip on former Soviet republics.
The Financial Times
- EU takes aim at China’s Temu and Shein with proposed import duty — European Commission plans to scrap €150 threshold below which goods are exempt from customs duties.
- China demands loyalty from young expats in the US — Students and workers who joined the Communist party say they have been asked to spread propaganda.
- Beijing and Manila hold talks to defuse South China Sea tensions — Meeting comes two weeks after China menaced Philippine boats near Indo-Pacific flashpoint.
- China confiscates Taiwanese fishing vessel, Taipei says — Incident off island of Kinmen close to Chinese coast heightens tensions.
The New York Times
- U.S. Deports Chinese Migrants in First Large Flight Since 2018 — The Department of Homeland Security said it was working with Chinese authorities to arrange more flights as more migrants enter the United States.
- How China and Russia Compete, and Cooperate, in Central Asia — China’s leader, Xi Jinping, and President Vladimir V. Putin of Russia are courting regional leaders and pushing an alternative to the U.S.-led order.
- China Seizes Taiwanese Fishing Boat As Tensions Rise — The authorities in Taipei have demanded Beijing release the boat and its five crew members, who are being held in custody.
- An Uproar Over a Chinese Doping Case, Except in China — Chinese state news and social media has been virtually silent about 23 swimmers secretly testing positive in 2021, even as the issue is being debated widely abroad, including in Congress.
Caixin
- In Depth: China’s Ultra-Long Bonds May Test PBOC’s Monetary Toolkit — After China’s Ministry of Finance kicked off this year’s 1 trillion yuan ($138 billion) program of ultra-long special treasury bond sales in May, attention has shifted to how the central bank might deal with any subsequent volatility in the country’s capital markets and the potential impact on liquidity.
- China Services Activity Decelerates, Caixin PMI Shows — China’s services activity grew at the slowest pace in eight months in June as the job market shrank and business optimism weakened, according to a Caixin-sponsored survey published Wednesday.
- China Calls for Severe Punishments after Kidnapped Victims Murdered in Philippines — China has urged the Philippines to capture and severely punish the murderers responsible for kidnapping and killing two people, including a Chinese citizen, in the Southeast Asian country.
South China Morning Post
- Huawei Technologies sells Aito electric vehicle trademark to partner for US$350 million — Huawei is selling the trademark of EV brand Aito to its Chinese carmaking partner Seres, as it moves to enhance its role as a systems and know-how supplier..
- How ‘China chic’ young adults are making economic statements with glow-ups — Consumer trends could also reflect challenges for foreign brands that are trying to cash in on China’s huge middle class.
- China’s trade landscape a battleground, as data shows tariff duels to escalate with WTO hamstrung — With multiple trade investigations being conducted against Chinese goods and the WTO incapable of acting as international arbiter, analysts and official data suggest this is only the start of a long trend.
Nikkei Asia
- Xi Jinping backs Kazakhstan’s bid to join BRICS — Chinese president expected to meet Russia’s Putin at SCO summit in Astana.
- Goodbye Shanghai: reflections on five years at China’s gateway — After witnessing how the COVID-19 pandemic deprived the city of its vibrancy between 2020 and 2022, I feel grateful for the return of normalcy.
- BYD to open Thai factory as new EU tariffs on China EVs kick in — Local industry fears influx of Chinese imports barred from Europe.
Bloomberg
- US Allies Allege China Is Developing Attack Drones for Russia — Chinese and Russian companies are developing an attack drone similar to an Iranian model deployed in Ukraine, European officials familiar with the matter said, a sign that Beijing may be edging closer to providing the sort of lethal aid that western officials have warned against.
- China’s Investment Bankers Join the Communist Party as Morale (and Paychecks) Shrink — Once a symbol of Beijing’s ambitions in finance, CICC is fighting for its future.
- Apple Seeks to Scrub ‘Dominance’ From China Antitrust App Ruling — Apple Inc. is seeking to get a Chinese court to alter its written ruling in a lawsuit the iPhone maker won, an unusual move that underscores the sensitivity of the US company’s position in the world’s largest smartphone arena.
Reuters
- China leading generative AI patents race, UN report says — China is far ahead of other countries in generative AI inventions like chatbots, filing six times more patents than its closest rival the United States, U.N. data showed on Wednesday.
- Taiwan says China seizes fishing boat near its coast — Chinese officials boarded and then seized a Taiwanese fishing boat operating near China’s coast close to a Taiwan-controlled island late Tuesday and took it to a Chinese port, Taiwan’s coast guard said, in a further escalation of tensions.
- Putin and Xi to meet at SCO summit to bolster security and counter the US — Russian President Vladimir Putin and China’s Xi Jinping are due to meet on Wednesday at a summit of a Eurasian security and defence club seen by Moscow and Beijing as an instrument to counter the influence of the United States and its allies.
Other Publications
- Associated Press: Chinese firms eye Morocco as way to cash in on US electric vehicle subsidies — After the United States passed new subsidies designed to boost domestic electric vehicle production and cut into Beijing’s supply chain dominance, Chinese manufacturers began investing in an unlikely place: Morocco.
- Quartz: Tesla’s China-made EV sales fell for the third month in a row — Competition remains fierce in China’s overcrowded electric vehicle market.
- The Guardian: Xi’s central Asia trip aims to cement ties as China vies for influence with Russia — SCO summit brings together leaders of global south but also likely to test Beijing and Moscow’s ‘strategic partnership.’
- CNBC: China’s BYD is set to take Tesla’s crown as the world’s No. 1 producer of battery electric vehicles — Chinese electric vehicle maker BYD is on track to overtake Tesla in battery electric vehicle sales this year, with its BEV market share expected to surge, according to a Counterpoint Research report.
