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
- U.S. Intercepts Russian and Chinese Bombers on First Joint Mission Off Alaska — The bombers flew into the buffer zone in international airspace in the most recent sign of growing military and security cooperation between Moscow and Beijing.
- A Nation Bet Big on Online Casinos. It Didn’t Go Well. — The Philippines is shutting down gambling platforms that cater to demand from outside the country, including players in China.
- China’s Central Bank Delivers Another Surprise Rate Cut — The People’s Bank of China surprised markets again by cutting another key policy rate, continuing a wave of monetary easing as it looks to support the country’s ailing economy.
- China Casts Itself as Peacemaker in High-Level Talks With Ukraine — Beijing has been a key player in helping Russia evade Western sanctions imposed after Moscow’s invasion of Ukraine.
- Gucci Owner Kering’s Earnings Hit by Turnaround, China Woes — The French luxury-goods group said it booked revenue of €9.02 billion, down 11% both as reported and on a comparable basis compared with the year-earlier period.
- Have Secrets, Will Travel? Not So Fast, China Says — As concerns over espionage rise, the country has intensified scrutiny on international travel by people privy to state secrets.
- Opinion: China Can’t Evade the Iron Laws of Economics — Xi shifts to ‘high quality’ from ‘high speed’ growth. He will preside over a new phase of failure. By John Lee.
The Financial Times
- Russia and China fly joint air patrols near US for first time — Manoeuvre marks further deepening of military co-operation between Moscow and Beijing.
- US warns tech start-ups on security threats from foreign investors — Counter-intelligence centre says hostile states such as China could gain sensitive data and intellectual property.
- Opinion: An ill wind blows for China’s renewable groups — Shares of the country’s largest turbine makers reflect concerns about overcapacity at home and obstacles to global growth. By Lex.
- Opinion: Macau’s Portuguese strive to preserve their cultural heritage — As the casino city approaches the 25th anniversary of its handover to China, the challenges for the expat community are growing. By William Langley.
The New York Times
- Typhoon Gaemi Heads for China as Cargo Ship Sinks Off Taiwan — Nine sailors were missing after a cargo ship sank near the island. The storm was forecast to make landfall in China on Thursday.
- What a Professor’s Firing Shows About Sexual Harassment in China — A top Chinese university described the conduct of a professor accused of sexual harassment as a moral failing, language feminists say downplays harm to women.
- How US Chips Continue to End Up in Russian Missiles — Defying sanctions, Russia has obtained nearly $4 billion in restricted chips since the war began in Ukraine. Many were shipped through a cluster of shell companies in Hong Kong.
- China Unexpectedly Cuts Interest Rate as World Markets Sag — The central bank lowered a key rate in its latest effort to steady China’s economy, as Asian stock markets followed Wall Street down.
- Ukraine Presses China to Help Seek End to War With Russia — A visit by the foreign minister of Ukraine to Guangzhou this week signals Kyiv’s desire to involve Beijing in peace talks that China has thus far largely snubbed.
Caixin
- China Encourages ‘High Quality’ Companies to Seek Borrowing Overseas — NDRC relaxes overseas bond sale regulations for leading companies with strong credit records.
- Falling Government Bond Yields Prompt New Round of Life Insurance Rate Cuts — Although timing is unclear, the consensus is to cut the traditional insurance interest rate ceiling from 3.0% to 2.5%.
- Graft Watchdog Probes More Executives at China’s Biggest Bank — ICBC veteran Xu Yanfeng is among those targeted, and sources tell Caixin the investigation may be linked to his time in Liaoning province and his relationship with troubled Zhongwang Group.
- Guangdong Fails to Match National GDP Growth Levels as Real Estate Slump Bites — The province reports only 3.9% GDP growth for the first half of 2024, below the national average of 5%.
- China to Be Top National Market for Aircraft in the Coming Two Decades, Boeing Predicts — U.S. company predicts the country will buy more than 8,800 commercial planes through 2043, accounting for 20% of global demand.
South China Morning Post
- AI race: Alibaba, Tencent quickly adopt Meta’s new Llama 3.1 model amid excitement — China’s biggest tech firms moved quickly to adopt the most advanced open-source large language model from the owner of Facebook on their cloud platforms.
- China, Russia bombers enter Alaska air defence zone in military first: Norad — The two countries’ warplanes entered the area at the same time and were intercepted in international airspace, the joint US and Canadian military command said.
- South Korea accuses Chinese students of taking illegal drone video of US aircraft carrier — The three, who allegedly photographed Naval Operations Command in Busan, could face three years in prison or a fine of US$21,000.
- What does Biden’s exit from the White House race mean for China’s stock traders? — Chinese stocks have witnessed increased gyrations, with the 10-day realised volatility of the CSI 300 Index and the Hang Seng Index both surging to a three-month high.
- Opinion: China’s uneven recovery risks more US protectionism, with or without Trump — China’s trade surplus and deflationary policies propping up its push for hi-tech manufacturing mean a sharp US response is likely, whoever wins the November election. By Nicholas Spiro.
Nikkei Asia
- China’s iFlytek exec says U.S. sanctions have ‘destroyed’ market mechanism — Duan Dawei, senior vice president and chief financial officer of the AI company, told Nikkei Asia that Washington’s sanctions have “artificially dismembered global collaborations” that had been enabled by decades of globalization.
- China’s new 2029 reform goal shows Xi Jinping is worried — Xi Jinping might have just given himself an ace in the hole in his high-stakes game of politics to extend his reign beyond 2027.
- China draws fire from both sides in U.S. Senate races — Both Democratic and Republican U.S. Senate candidates are increasing their criticism of China, at times using Beijing to attack opponents, as a core part of this year’s campaign for control of the legislative chamber.
- Xi may see second Trump term creating opening on Taiwan — Donald Trump said recently during his election campaign that Chinese President Xi Jinping sent him a “beautiful note” after the former U.S. president was shot in the ear during a July 13 rally.
- Opinion: Europe must prepare militarily and economically for a Taiwan war — Europeans were once aware of the risks surrounding Taiwan’s geopolitical position. This has now turned into full-fledged concern. By Philippe Le Corre.
Bloomberg
- US Firms Get Mixed Signals in China on Whether They’re Welcome — US executives who visited China this week got the chance to meet with senior officials of President Xi Jinping’s government, but received conflicting signals over Beijing’s openness to foreign investment.
- China Renews Call for Trillions in Climate Funds for Poor States — China and some of the world’s biggest developing nations made a renewed demand on richer countries to lift climate financing to trillions of dollars a year to accelerate the green transition in emerging economies.
- China Reveals $41 Billion Price Tag of Plan to Boost Consumption — China disclosed for the first time it’s earmarking 300 billion yuan ($41 billion) for an initiative to give a makeover to the country’s stock of industrial and household equipment.
- Alibaba Backs $2.8 Billion Firm in Third Major AI Deal of 2024 — Alibaba Group Holding Ltd. has participated in new financing of 5 billion yuan ($691 million) for Chinese startup Baichuan, inking its third major AI deal this year as the e-commerce firm looks beyond its core business for growth.
- Opinion: There’s Nothing Gray About China’s Maritime Muscle-Flexing — Illegal, coercive, aggressive and deceptive — why the ICAD moniker for Beijing’s actions in the South China Sea needs to be adopted. By Karishma Vaswani.
Reuters
- China’s secretive spaceplane likely testing ‘dual use’ technology, experts say — As militaries worldwide develop complex satellite networks, a reusable spacecraft that can interfere with them could have immense value, several experts said.
- China’s slump hints at a unique liquidity trap — China is awash with money and its growth is slowing. To avert a prolonged stagnation, President Xi Jinping’s administration may need to spend its way out of the problem.
- Taiwanese rocket startup may be early test of Japan’s space hub plans — Analysts have said launching a Taiwanese rocket in Japan might draw the attention of China, which claims Taiwan as its own over the strong objections of the government in Taipei, and monitors the island’s advancements in missile-related technologies.
Other Publications
- Foreign Policy: Biden’s Last Chance at Climate Diplomacy With China — Negotiations are expected to occur in a few weeks with a focus on super-pollutants.
- AP: Amid tensions with China, some US states are purging Chinese companies from their investments — The quest to halt investments in Chinese companies comes as a growing number of states also have targeted Chinese ownership of U.S. land.
- The Economist: China’s robotaxis are racing ahead of Tesla’s — Baidu is leaving Western carmakers in the dust.
- Rest of World: Why Mexico’s delivery workers are ditching food for packages — As the popularity of Chinese e-commerce platforms grows, some gig workers are finding it more appealing to deliver packages than food orders.
- The Guardian: ‘High quality, low price and dizzying variety’: how the Chinese switched to electric cars — The country has long been the world’s biggest market – but the government’s interest is more geopolitical than environmental.
- The Information: Nvidia Devises Special Server Design to Boost China Sales — Nvidia is developing a new AI chip and accompanying server for Chinese customers, as part of an escalating tug-of-war between the chip designer and the U.S. Commerce Department over rules limiting what Nvidia can sell to China.
