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 Youth Unemployment Rate Declines, But Labor Market Still Seems Weak — The jobless rate among China’s 16- to 24-year-olds stood at 13.2% for June.
- Daimler Truck Writes Down China Joint Venture, Puts Guidance Under Review — Daimler Truck DTG Holding said it took a hit from a write-down of its China joint venture Beijing Foton Daimler Automotive due to a persistently weak market and that its full-year guidance is currently under review.
- China Tycoon Who Angered Beijing Found Guilty of Fraud in New York — Jurors agree Guo Wengui conned followers out of more than $1 billion to sustain a lavish lifestyle.
The Financial Times
- PwC loses two-thirds of accounting revenues from clients listed in mainland China — Firm tells partners to ‘stay calm’ as exodus of companies prompts lay-offs and cost cuts.
- Chinese businessman Guo Wengui convicted of fraud in US court — Self-exiled Communist party critic and associate of Steve Bannon fleeced his online followers, prosecutors said.
- UK says it is not about to impose tough tariffs on Chinese EV imports — Trade secretary Jonathan Reynolds will remain ‘vigilant’ but is not planning to follow Brussels’ lead.
- Water group founded by China’s richest person demands apology from Hong Kong watchdog — Nongfu Spring criticises territory’s Consumer Council after it said company’s bottled water hit EU limit for bromate content.
- UK says it is not about to impose tough tariffs on Chinese EV imports — Trade secretary Jonathan Reynolds will remain ‘vigilant’ but is not planning to follow Brussels’ lead.
The New York Times
- Exiled Chinese Billionaire Guo Wengui Is Convicted of Fraud — A federal jury found that Guo Wengui defrauded investors, many his own fervent supporters, of hundreds of millions of dollars. He could face decades in prison.
- Trump Tells Taiwan to Expect a Higher Price Tag for U.S. Defense — Trump also accused Taiwan of sinking the U.S. semiconductor sector, signaling he wants a more transactional approach to shielding the island from China.
Caixin
- In Depth: Battle for China’s Deposits Pits Banks Against Regulators — A tug of war has been going on in China between banks — who are trying to raise interest rates to attract deposits — and regulators — who want them to cut rates to discourage saving and spur spending and investment. Right now, regulators are gaining the upper hand.
- Analysis: Why China’s GDP Growth Slowed in Second Quarter — Weak domestic demand and an ailing property market, compounded by extreme weather conditions, contributed to China’s lower-than-expected GDP growth in the second quarter, analysts said.
- China Merchants Bank Expected to Take Over Tomorrow Holding’s Former Trust Unit — China Merchants Bank Co. Ltd. (CMB), one of the country’s leading joint-stock commercial lenders, is moving closer to taking over New Times Trust Co. Ltd., a former unit of failed financial conglomerate Tomorrow Holding Co. Ltd., Caixin has learned.
South China Morning Post
- Huawei enters new partnership to drive increased AI adoption in China’s heavy industries — The latest initiative by Huawei, the world’s largest telecoms equipment supplier, shows its focus on expanding into industrial solutions.
- 3 Chinese clean-energy firms to set up solar, wind manufacturing in Saudi Arabia — Jinko Solar, TCL Zhonghuan and Envision Energy will join Saudi Arabia’s Public Investment Fund and a private firm to expand their global footprints amid US and EU trade barriers and competition at home.
- China’s second-largest car dealer faces forced delisting as investors snub its shares — China Grand Automotive Service is set to be expelled from the Shanghai Stock Exchange after its shares traded below their par value for 20 straight days, the latest sign of cracks appearing in the world’s largest vehicle market.
Nikkei Asia
- China rust belt city faces growing exodus as workers seek living wage — Pay gap with major urban areas widens amid stagnant real estate market.
- Trump-Vance ticket sets stage for years of China arm-twisting — Republicans will focus on America’s ‘forgotten’ blue-collar workers, analysts say.
- Opinion: Chips will stay in Asia even as West seeks to go back to the future — U.S., Europe face challenges reducing semiconductor dependency on Asia. By Stefan Angrick
Bloomberg
- The Donald Trump Interview Transcript — Trump talked about the Federal Reserve, inflation, tax cuts, tariffs, Taiwan and his relationships with chief executives.
- US Floats Tougher Trade Curbs in Chip Crackdown on China — The Biden administration, facing pushback to its chip crackdown on China, has told allies that it’s considering using the most severe trade restrictions available if companies such as Tokyo Electron Ltd. and ASML Holding NV continue giving the country access to advanced semiconductor technology.
- ASML-Backed University Caught in Middle of US-China Chips War — A top Dutch technical university that is a key feeder for ASML Holding NV talent has been caught in the crosshairs of the US-China chip war as Washington seeks to limit Beijing’s ability to produce semiconductors.
- China Solar Firms Ink Deals With Saudis for Global Expansion — Two major Chinese solar manufacturers will build plants worth $3 billion in Saudi Arabia, highlighting efforts to globalize their production bases as they face margin pressures at home.
Reuters
- China’s gold buying break seen as fleeting given its long-term needs — China still has plenty of appetite for official gold purchases despite pausing in May and June, as its bullion holdings remain low as a share of reserves and geopolitical tensions persist, according to a policy insider, industry experts and data.
- Many US solar factories are lagging. Except those China owns — Construction of U.S. solar-manufacturing plants by Chinese companies is surging, putting China in position to dominate the nascent industry, as other American factories struggle to compete despite federal subsidies.
- China strives to lure foreign tourists, but it’s a hard sell for some — Guilherme Carvalho made his first visit to China this month, and the Italian said one of the main factors behind the trip was the post-pandemic policy to scrap entry permits for some tourists.
Other Publications
- CNBC: Foreign carmakers in China face ‘increasingly precarious’ position, consultancy says — New tariffs on Chinese electric cars aren’t enough to help foreign automakers stay competitive, especially in the lucrative China market, according to consulting firm AlixPartners.
- The Economist: Xi Jinping is trying to love-bomb China’s entrepreneurs — It will take a lot more to win back their broken hearts.
- CNN: A spate of stabbings has sparked online debate about China’s economic woes — The fatal stabbing of two people by a man at a residential compound in southern China has ignited an online debate that has amplified during a summer scarred by a spree of similar crimes across the country.
- Associated Press: China’s Communist Party charts technology- and security-focused development for reviving the economy — In a year of major elections that will determine the destinies of many countries, China’s ruling Communist Party is holding closed, top-level meetings in Beijing to set strategies for reviving its slowing economy.
- Quartz: Huawei just built a $1.4 billion chip center as it faces U.S. sanctions — The Shanghai-based research and development center will have almost 30,000 employees.
- The Guardian: ‘Society doesn’t want my kids’: China’s single women forced abroad to freeze their eggs — Calls grow for end to ban that means only married Chinese couples can access ‘social egg freezing’ services.
