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 Xi Pushes to Keep U.S. Ties Steady Through Bumpy Presidential Race — Harris candidacy changes Beijing’s calculus as U.S. national-security adviser wraps up China visit.
- After Chinese Incursions, Japan Plans a $2 Billion Defensive Satellite Network — Tokyo says Beijing military plane violated its airspace for first time.
- Huawei’s First-Half Net Profit Rose on Strong Smartphone Sales, Car Business — The tech giant was the No. 2 smartphone seller in China in the second quarter.
The Financial Times
- China’s Chery bets on continuing petrol car demand as it enters UK market — Automaker launches mass-market SUV powered by conventional engines as it seeks to establish its brand.
- Chinese offices emptier than during Covid pandemic as slowdown hits — Vacancy rates rising in big cities including Beijing, Shanghai, Guangzhou and Shenzhen while rents are falling.
- Chinese central bank’s $56bn debt purchase sparks talk of bond market intervention — Traders speculate the People’s Bank of China will step in to manage sovereign debt yields.
- US assures China that Harris would ‘responsibly manage’ ties — Visiting national security adviser tells Beijing that Democratic candidate wants to avoid ‘conflict or confrontation.’
The New York Times
- China Dominates the Situation Room But Not the Campaign Trail — The thorny issues raised by America’s most potent geopolitical challenge are reduced to platitudes.
Caixin
- In Depth: Ambiguous Reef Protection Laws Leave China’s Coral Sand Traders High and Dry — In December 2021, with the Covid-19 pandemic raging around the world, police arrived at a quarantine site in Binzhou, Shandong province, where Wu Xing was interned and abruptly took him away.
- China Life Expects New Chairman After Surprise Departure of Incumbent — China Life Insurance is among the latest state-owned financial institutions to undergo a leadership reshuffle, following changes at Bank of China Ltd. and The People’s Insurance Co. (Group) of China Ltd. (PICC).
- UBS Names Credit Suisse Veteran Janice Hu as New China Head — UBS Group AG has appointed Janice Hu, vice chair of its securities venture in China, to succeed Eugene Qian as the new head of its China operations.
South China Morning Post
- Tech war: Beijing sets up US$1.2 billion semiconductor fund as China splurges on chips — Beijing set up the new chip fund under the state-owned Zhongguancun Development Group, joining a slew of chip investment funds across China.
- Alibaba’s antitrust review comes to a close after 3 years of government scrutiny — The State Administration for Market Regulation praised Alibaba for its compliance with the antitrust authority, giving the firm full recognition.
- China’s internet users near 1.1 billion, driven by short videos and mobile payments — In the first half of 2024, more than a third of China’s new internet users were drawn to short video apps, a government survey shows.
Nikkei Asia
- Alibaba’s 3-year antitrust ‘rectification’ is over, Beijing says — Regulator vows ‘solid protection’ for e-commerce giant to enhance competitiveness.
- Can Tesla’s self-driving ambitions navigate U.S.-China tensions? — Washington looks to ban Chinese software as Beijing doubles down on autonomous vehicles.
- China’s top insurers boost bond portfolio by $169bn — Major buyers of government debt show appetite as central bank warns of bubble.
Bloomberg
- China Considers Allowing Refinancing on $5.4 Trillion in Mortgages — China is considering allowing homeowners to refinance as much as $5.4 trillion of mortgages to lower borrowing costs for millions of families and boost consumption.
- Nippon Steel Calls for Japanese Tariffs on China’s Exports — The Japanese steel giant that helped China modernize its mills is worried that a glut of the metal in its neighbor could hurt its domestic market.
- Lululemon, Hermes Copies Entice China’s Shoppers Away From Labels — Near-facsimiles of some of the world’s most popular fashion staples, from Lululemon Athletica Inc.’s yoga tights to Hermès International SCA’s handbags, are appearing in closets across China for a fraction of the price.
- Sullivan Vows in Beijing Trip to Stay Course on China Chip Curbs — Sitting on a Boeing 737 en route to Beijing for talks with Chinese President Xi Jinping and other top officials, Jake Sullivan thought there was a reasonable chance that Huawei Technologies Co. would roll out a new phone or AI chip during his visit in a bid to embarrass him.
Reuters
- Exclusive: Russia payment hurdles with China partners intensified in August — Some Russian companies are facing growing delays and rising costs on payments with trading partners in China, leaving transactions worth tens of billions of yuan in limbo, Russian sources with direct knowledge of the issue told Reuters.
- Taiwan military says China lacks ability to invade, but has other options — China lacks the ability to “fully” invade Taiwan as it does not have the equipment, but is bringing on line advanced new weapons and has other options to threaten Taiwan, such as inspecting foreign cargo ships, the island’s defence ministry said.
- China’s interest rate reform will be ‘arduous, long’ process — China’s central bank wants to shift its policy framework to target the cost of credit rather than its size, but liquidity risks and uncooperative markets are making it difficult to transition the economy away from state-directed bank lending.
Other Publications
- The Economist: Pinduoduo, China’s e-commerce star, suffers a blow — It faces a slowing economy, stiffening competition and angry merchants.
- The Atlantic: The Challenge of Negotiating With Xi Jinping — Despite Jake Sullivan’s visit to Beijing this week, American interests remain in severe tension with China’s vision.
- Associated Press: Chinese leader Xi meets US national security adviser as the two powers try to avoid conflict — Chinese leader Xi Jinping met with U.S. National Security Adviser Jake Sullivan on Thursday as the latter wound up a three-day visit with the stated aim of keeping communications open in a relationship that has become increasingly tense in recent years.
- POLITICO: China’s Xi Jinping talks up US-China ‘traditional friendship’ with Jake Sullivan — But Beijing’s suddenly softer tone isn’t likely to bridge deep mutual distrust hobbling bilateral ties.
