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
- Buffett’s Berkshire Hathaway Trims BYD Stake to Below 5% — Warren Buffett’s Berkshire Hathaway has pared its stake in BYD to less than 5%, further unwinding its long-term bet on China’s largest electric-vehicle maker.
- U.S. Importers Are Rushing Goods in Early Ahead of Shipping Disruptions — The strategy comes as freight rates are rising and new tariffs are set to hit some goods from China.
- China Is Getting Secretive About Its Supercomputers — Big machines are critical for developing weapons and AI, so scientists are hunting for clues about Chinese progress.
- PBOC May Next Press Banks for Mortgage-Rate Cuts — China’s central bank could be gearing up to push lenders to lower existing mortgage rates in the coming months, Nomura analysts say.
The Financial Times
- China’s Xi bets on high tech for ‘great rejuvenation’ — Communist party’s third plenum reinforces focus on self-sufficiency but fails to assuage fears about weak consumption or oversupply.
The New York Times
- Hamas and Fatah Signed a Statement of Unity in China, but Skepticism is High — A joint statement from Fatah and Hamas supports the formation of a consensus government, but for many Palestinians the announcement doesn’t mean much.
Caixin
- China’s Surprise Rate Cuts Signals Shift to Short-Term Policy Rate Focus — The rate cuts are probably due to weaker-than-expected second-quarter GDP data and higher odds of a Fed cut in September.
- Challenging Time for Trust Firms as Six Out of 10 Report Weaker Results — China’s 22.6 trillion-yuan trust industry has seen regulators rein in risks after a series of scandals.
- Ex-VP of China’s Biggest Policy Bank Admits Taking $3.2 Million in Bribes — Wang Yongsheng, arrested six months ago, pleaded guilty to offering favors in exchange for illegal gains.
- Plenum Explained: Implications for China’s Finance and Economy — Core to the reforms set in motion at the meeting are stabilizing the capital markets, reviving the ailing property sector and relieving indebted local governments.
- Guangzhou Baiyunshan Chairman Steps Down Amid Investigation — Li Chuyuan, who has resigned from all his duties, was taken away by provincial authorities for questioning.
South China Morning Post
- China moves closer to launching flying taxi services as EHang seeks Beijing’s go-ahead — Chinese flying taxi maker EHang’s latest certification process marks the final step before it enters the domestic market for urban air mobility services.
- Palestinian factions agree to end division in pact brokered by China — Leaders of 14 factions sign Beijing Declaration calling for unity after talks in Chinese capital.
- China hopes US firms can ‘play a strong role’ after top executives visit Beijing — A delegation from the US-China Business Council met with Chinese Vice-Premier He Lifeng and Foreign Minister Wang Yi in Beijing on Monday.
- Is Vietnam losing its appeal for China’s manufacturers bypassing US tariffs? — Vietnam has long been a preferred destination for foreign-invested projects, but rising costs are pushing Chinese firms to consider their options.
- Opinion: How foreign firms can stay on their feet in China’s dynamic market — The era of easy money is over. China’s market-friendly reforms come with rising costs, and greater political control and regulatory scrutiny. By Yuhan Zhang.
Nikkei Asia
- Nippon Steel to end 20-year joint venture with China’s Baoshan — Japan’s Nippon Steel announced Tuesday that it will withdraw from a joint venture with Baoshan Iron & Steel, marking a turning point in a decades long relationship that was a symbol of China’s progress in modernizing its steel industry.
- Thailand’s new rail links carry hope for expanded Chinese trade — Thailand’s national railway opened a new passenger service to Laos this month, the latest addition to an expanding Southeast Asian rail network aimed at increasing cross-border traffic of people and goods with China.
- Alibaba’s Taobao takes on Temu, Shein with free overseas shipping — Taobao, the flagship retail platform of China’s Alibaba Group, will introduce free overseas shipping on apparel orders as it attempts to challenge cross-border e-commerce rivals Temu and Shein.
- Opinion: Japan’s corporate governance reforms show way for China, South Korea — Corporate governance has moved firmly into the spotlight as various scandals, activist investor demands and research from organizations have brought key governance issues into sharp relief. By Haonan Wu.
- Opinion: China misses plenum chance to steady economy before U.S. election — In releasing second quarter economic data on the day the plenum started, the government once again revealed just how bad the property decline has been. By Paul Cavey.
Bloomberg
- Apple and Micron Leaders Visit China as US Ramps Up Chip Curbs — Apple Inc. Chief Operating Officer Jeff Williams and Micron Technology Inc. President Sanjay Mehrotra made a low-profile trip to Beijing to meet with senior Chinese officials as the US is again mulling stricter tech curbs against China.
- Europe Still Vies With China as Top Market for Russia’s Pipeline Gas — Europe still contends with China for the title of top buyer of Gazprom PJSC’s pipeline gas, more than two years after Russia’s invasion of Ukraine slashed its western energy sales.
- Chinese Stocks Slump Amid Signs National Team Is Pulling Back — Chinese stocks suffered their biggest decline in six months as a lack of major policy support following the Third Plenum reinforced bearish sentiment.
- China and Russia’s Interest in Fast-Melting Arctic Spurs Pentagon Concern — The US will expand its military readiness and surveillance in the Arctic given heightened Chinese and Russian interest coupled with new risks brought on by accelerating climate change.
- China Retirement Fund Closures Surge in Blow to Pension Reform — A number of retirement mutual funds in China have closed after failing to attract enough investors, in a blow to a pension scheme aimed at bridging a funding gap for an aging population.
Reuters
- Volkswagen is reeling in China. Can EVs help it grow in the US? — The world’s second-largest automaker faces a vexing landscape of challenges in Europe, the U.S. and especially China, where domestic EV makers led by BYD are swiping its market share.
- Drug giants eye China for deals despite growing Sino-US tensions — Several major deals have already been completed this year, including AstraZeneca’s $1.2 billion purchase of China-based cell therapy developer Gracell Biotechnologies and Novartis’ acquisition of remaining shares of SanReno Therapeutics.
- Windrose plans truck assembly in U.S. in rare move by Chinese EV firm — The move signals a potential return of Chinese electric vehicle companies to the world’s second-largest auto market.
Other Publications
- Brookings: China, the United States, and the future of a rules-based international order — Few concepts in U.S. foreign policy are invoked more frequently than “the rules-based international order,” and few U.S. phrases are more contested by China.
- CSIS: Third Plenum Hot Takes: Skepticism and Concern — The ‘Decision of the CCP Central Committee on Further Comprehensively Deepening Reform to Advance Chinese Modernization’ and its significance for China’s economy, politics, and foreign relations.
- Rest of World: Pressured to relocate, Microsoft’s AI researchers in China must choose between homeland and career — As geopolitical tensions grow, many employees have decided that a career with the Silicon Valley tech giant isn’t worth giving up the comforts of home.
- MIT Technology Review: How to access Chinese LLM chatbots across the world — Some models are available to users without Chinese phone numbers, while open-source platforms provide other workarounds.
