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
- Trump’s Fentanyl Pledge Threatens to Sour Bright Spot in China Relations — The president-elect’s threat to impose 10% in additional tariffs on imports from China for its role in the fentanyl crisis is a time bomb designed to push Beijing’s leaders to take stronger action.
- Volkswagen and JV Partner Sell Controversial Chinese Plant — VW and its local partner sold a production site in the Xinjiang region that had previously brought increased scrutiny on the automaker over human-rights concerns.
- China Is Bombarding Tech Talent With Job Offers. The West Is Freaking Out. — Chinese companies are trying to poach engineers in high-tech Western industries by offering to triple their salaries as Beijing seeks to catch up with Silicon Valley in the battle for tech supremacy.
- China Industrial Profits Show Slight Improvement as Stimulus Kicks In — Chinese authorities have introduced a series of stimulus measures to boost economic growth and shore up market confidence, including cutting interest rates and injecting liquidity into the financial system.
- What Trump’s New Tariff Threats Mean for the U.S. Economy — Tariffs of 25% on Canada and Mexico, and 10 percentage points added to existing tariffs on China, with those countries imposing retaliatory tariffs, would raise U.S. consumer prices by 0.75% next year.
- Trump Fires Salvo on North American Trade Pact — He also promised to levy additional tariffs of 10% on Chinese imports, citing what he says is China’s failure to regulate the chemicals that go into fentanyl.
- Opinion: The U.S. Is Losing the Ability to Deter War With China — A war game simulation shows we will run out of long-range missiles in a week. By Seth G. Jones.
The Financial Times
- China’s EV price war set to intensify next year as BYD squeezes suppliers — Chinese carmaker asks auto parts providers to cut their prices by 10%.
- US farmers protest against climate law loophole subverting green fuel crops — American imports of used Chinese cooking oil as a biofuel feedstock have surged since passage of Inflation Reduction Act.
- VW sells plant in Chinese region of Xinjiang — German carmaker cites ‘economic reasons’ for move to offload controversial facility.
- China’s defence minister placed under investigation for corruption — US officials say probe is part of wider operation to uncover graft in People’s Liberation Army.
- China’s market targets are ‘just psychological’, says former regulator — Frank remarks by onetime securities commission chief give rare insight into Beijing financial policymaking.
- China’s emissions peak in sharper focus as solar and electric cars boom — Experts cautiously optimistic about Beijing’s environmental progress.
- How to deal with Trump’s tariff threats — Canada, Mexico and China have options to avoid a trade war.
- Opinion: Five things the market got wrong about China’s stimulus package — The approach is more like a marathon than a sprint, focused on making the country’s economic framework more durable and resilient. By Jianguang Shen.
The New York Times
- BYD and Rivals in China Tell Suppliers to Cut Costs Amid Price War — China’s electric vehicle market is the world’s largest — and also its most cutthroat, with dozens of brands jostling for position.
- Volkswagen to Exit China’s Xinjiang Region After 12 Years — The automaker has long been criticized by human rights activists for doing business in the territory, where China has repressed Muslim ethnic groups.
- Tariff Threats Show Trump’s Commitment to Upending Global Trade — The president-elect’s threat to hit Canada, Mexico and China with new tariffs is already rocking business and diplomatic relationships and could topple the trade pacts he signed in his first term.
- Opinion: Trump’s Tariff Plan Makes Little Sense — Why set off a tit-for-tat with our closest allies? By Peter Coy.
Caixin
- China’s Insurers Prepare to Shine a Light Into Their Financial Black Box — New international accounting standards aim to help investors assess the financial health of insurance companies by providing more clarity on how they make money.
- Why Trump’s Rise Sounded Like a Sure Bet For China’s Small-Cap Stock Investors — Investment logic forgotten as China’s livestream tipsters cause surge in ‘Trump concept’ stock prices.
- Mainland Bubble-Tea Makers Brewing Up Expansion as North American Market Grows — Producers of the sugary drinks see room to expand as they look to steal market share from dominant Taiwanese brands.
- Beijing’s New Solar Power Rules to Spark ‘Major Reshuffle’ — Government aims to curb expansion with regulation requiring additional projects to take on less debt and have higher quality products.
- Trump’s Return Looms Over China’s Cargo Industry — Freight forwarding and logistics firms are concerned about the president-elect’s threats of higher tariffs on Chinese imports, which already have exporters scrambling to ship.
South China Morning Post
- China reclaims No 1 physics research spot from US as scientists fight it out: report — Research Fronts report assessing scientific activities and trends in major countries reveals intense rivalry as tech race heats up.
- Why some experts say China urgently needs a crisis system to stop ‘lone wolf’ killings — After recent deadly attacks, country’s public security system needs ‘clear legal bases’ to identify high-risk individuals, experts say.
- Founder of Chinese AI firm DeepGlint, an early mover, steps back amid rising losses — Losses at the image recognition firm have surpassed those of 2023, as it grapples with challenges from new technology and client concentration.
- Tech war: China’s AI hopes face fresh setbacks as US set to restrict advanced memory chip exports — South Korea’s SK Hynix and Samsung dominate the supply of HBMs, each controlling about 48 per cent of the global market share in 2023.
- Opinion: China’s move to centralise oversight of financial sector shouldn’t be feared — Stronger party control over the financial sector will allow the building of a more cohesive framework for further orderly decentralisation. By Shanshan Li.
Nikkei Asia
- Japan, South Korea struggle to reduce reliance on China tech materials — Governments and companies in key industries hedge against geopolitical tensions.
- China’s Xiaomi rolls EVs, appliances into shopping malls in shift to lifestyle brand — Company steps up plans for 50% more physical stores in home market.
- Microsoft, HP and Dell ramp up China parts output before Trump’s return — Companies are racing to mitigate risk of tariff hikes when president takes office.
Bloomberg
- Chinese Carmakers Are Trouncing Once-Unbeatable Japanese Rivals — Brands including Toyota, Honda and Nissan are losing share at a worrying rate.
- Leaked BYD Letter Signals China EV Price War Is Set to Intensify — BYD Co. has asked suppliers to accept price cuts next year in a signal the Chinese electric vehicle maker is preparing for the brutal price war in the world’s biggest auto market to intensify.
- Why Is China Purging Some of Its Most Senior Military Leaders? — Chinese President Xi Jinping has devoted billions of dollars to his aim of transforming the military into a modern force by 2027. His government has also launched sweeping purges in the upper echelons of the People’s Liberation Army.
Reuters
- In careful protest, China Evergrande’s investors press for action — Hundreds of Chinese investors who lost savings in the collapse of China Evergrande launched a coordinated campaign this month to press authorities for an update on the failed property developer.
- China’s Hesai to halve lidar prices next year, sees wide adoption in electric cars — “We are moving to a stage where millions of cars sold annually are equipped with lidar,” Chief Executive David Li told Reuters in an interview.
- China could launch military drills near Taiwan over president’s Pacific visit, sources say — China, which views democratically governed Taiwan as its own territory and the most important issue in its relations with Washington, has a strong dislike of Lai whom Beijing calls a “separatist”.
Other Publications
- Foreign Policy: Where Trump’s Cabinet Stands on China — China hawks dominate, but Elon Musk could soften the administration’s stance.
- Foreign Policy: Trump’s Trade Wars Are Already Starting — Tariff threats against Mexico, Canada, and China are a preview of what’s to come.
- Rest of World: Breaking down the world’s tariffs against China’s tech industry — President-elect Donald Trump pledges to escalate the trade war, but non-Western nations have targeted China with tariffs, too.
- The Information: TSMC’s Push to Be Tech’s Switzerland in Doubt as U.S.-China Tensions Grow — Taiwan’s chipmaking powerhouse is facing increasing U.S. pressure to cut off Chinese customers, while also walking a careful line to avoid offending Beijing.
- The Washington Post: Opinion: Trump can’t bully the world out of doing business with China — The United States will need carrots as well as sticks to compete. By Eduardo Porter.
