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
- SMIC’s Quarterly Profit Jumps on Robust Chip Demand — The Company’s Hong Kong-listed shares have surged 42% this year, far outpacing the Hang Seng Index’s 14% gain.
- China’s Exports to U.S. Plunge, in Sign of Bite From Trump Tariffs — The drop in U.S.-bound shipments was offset by a surge in Chinese goods to Southeast Asia, Africa, Europe and Latin America.
- China to Crack Down on Rare-Earth Materials Ahead of U.S. Trade Talks — Authorities pledged to step up the enforcement of export controls on strategic mineral resources.
The Financial Times
- EU companies in China see some benefit from Donald Trump’s trade war — Survey finds high tariffs hurting European businesses but also offering chance to win market share from U.S. rivals.
- China’s He Lifeng: Xi’s ally leading trade talks with U.S. — Vice-premier with close links to leader seen as ‘more difficult interlocutor’ for Washington.
- China reports bumper April exports ahead of crucial trade talks with U.S. — Trade data shows a rise in shipments to south-east Asia and Europe offsets drop to America.
The New York Times
- ‘How Do I Survive?’: Tariffs Threaten U.S. Market for Traditional Chinese Medicine — Dispensary owners say a protracted trade war would harm a niche but popular sector in which imported herbs are prescribed to treat colds, pain and other ailments.
- Trade War Shock Is Scrambling China’s Exports — Shipments of goods to the United States plunged by 21 percent in April, but spiked to Asia as President Trump imposed sky-high tariffs on China.
Caixin
- China’s Trillion-Yuan Personal Debt Hangover Weighs on Banking System — The urgency with which banks are offloading troubled loans is reshaping China’s distressed debt market.
- China’s BYD, Tsingshan Scrap Plans for Chile Lithium Plants as Price Collapses — Steep fall in lithium prices forces Chinese companies to back out of multimillion dollar deals to build battery material factories in Chile.
- Chinese Businessman Wanted for Embezzlement Arrested in Vietnam — Investors who lost 1.2 billion yuan accused Ai Shaoyuan of colluding with employees of a provincial lender and a wealth management company to misappropriate their funds.
- Moutai Hopes Cultural Events Can Win Over Global Drinkers — State-run purveyor of iconic liquor is tailoring its sales strategies to different markets, a top executive said at a Caixin forum.
- China Is Crucial to Vale’s Future, CEO Says — Gustavo Pimenta says the country’s resilience and its role in green tech make it indispensable for the iron ore producer’s growth and sustainability efforts.
South China Morning Post
- BYD and Chinese EV peers eye South Korea as export market — Success in the Hyundai-dominated country could burnish the image of Chinese-made EVs globally, analysts say.
- DeepSeek founder Liang Wenfeng ‘takes no short cuts,’ Li Auto CEO says — That assessment reflects how Liang, an ‘extremely self-disciplined person,’ led DeepSeek to become a true innovator in AI.
Nikkei Asia
- China auto parts makers triple in Thailand on EV battery rush — New investments creating rival to Japanese supply chain.
- Huawei to unveil PC with HarmonyOS now that Windows is out of reach — U.S. restrictions kept Chinese tech giant from renewing Microsoft contract.
- Alibaba moves toward synergy not spin-offs as Jack Ma returns — Ecommerce giant’s 2023 breakup-and-list plan has taken a backseat to AI ambitions.
Bloomberg
- China Weighs Housing Market Overhaul to Curb Pre-Sales — China has been trying to put a floor under the years-long real estate meltdown.
- Luxury Labels Ditch Steep China Discounts to Rebuild Value — The avoidance of discounts, which appear counter-intuitive given the market’s sluggish demand, marks an about-turn in luxury labels’ strategy in China.
- ‘No Marriage, No Children’ Is China’s Ticking Timebomb — China’s falling marriage rate is exacerbating a demographic crisis in the world’s second-largest economy, as Beijing’s pro-natalist policies fall flat.
Reuters
- Exclusive: Nvidia modifies H20 chip for China to overcome US export controls, sources say — The U.S. chipmaker has notified major Chinese customers, including leading cloud computing providers, that it aims to release the modified H20 chip in July, sources said.
- Inside China’s decision to come to the table on Trump tariffs — Behind closed doors, Chinese officials have grown increasingly alarmed about tariffs’ impact on the economy and the risk of isolation.
- India-Pakistan conflict offers rich intelligence opportunity for China — The aerial clash is a rare opportunity for militaries around the world to study the performance of pilots, fighter jets and air-to-air missiles in active combat.
- Trump says 80% tariff on Chinese goods “seems right” — U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet Chinese economic tsar He Lifeng in Switzerland this weekend.
Other Publications
- The Economist: Huawei and other Chinese chip firms are catching up fast — But they still depend on America and its allies in a few vital areas.
- Foreign Policy: Can China Trump-Proof Its Economy? — An export-driven model may no longer work.
- ChinaFile: The Forgotten ‘Jeep Babies’ of China —After World War II, Chinese recipients of humanitarian aid, not their Western backers, were best able to control its ideological uses.
- PIEE: Stopping the flow: The effects of US-China cooperation on fentanyl markets and overdose deaths — Data suggests a Chinese embargo on fentanyl shipments to the United States beginning in May 2019 reduced fentanyl overdose deaths by roughly a quarter.
