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
- Pentagon to Take Stake in Rare-Earth Company, Challenging China’s Control — U.S. commits billions of dollars in support for Las Vegas-based miner MP Materials.
- The Fault Lines in the Autocratic Axis — Russia, China, Iran and North Korea are all hostile to the U.S. That doesn’t mean they would go to war for one another—for now.
- Nintendo’s Use of a Rare-Earth Magnet for the Switch 2 Could Expose It to China’s Whims — Neodymium-based magnets used in the Switch 2 are primarily produced in China, the leader in rare-earth refining.
- Taiwan Resists China With Military Displays and History Lessons — Amped-up drills and new U.S. tanks add bite to President Lai Ching-te’s Taiwan-is-a-country lecture tour.
- China’s Bid for ‘Global Yuan’ Finds Double-Edged Sword in Stablecoins — U.S. support for stablecoins could further entrench the dollar’s dominance in the global currency system.
- Aritzia Expects Lower U.S. Tariffs on Chinese Goods to Help Fiscal-Year Results — It expects adjusted Ebitda margin to be about 15.5% to 16.5% for the year, up from May’s projection of 14% to 15%.
The Financial Times
- Pentagon strikes investment deal with U.S. critical minerals producer — Unusual agreement follows growing concern in Washington over Chinese dominance of crucial weapons materials.
- Opinion: U.S. needs to prepare markets for the risk of a Chinese invasion of Taiwan — More planning required to reduce disruption and mitigate volatility if hostilities break out. By Ari Rubenstein.
The New York Times
- Rubio and Chinese Diplomat Vie for Influence in Asia Over Trump’s Tariffs — Marco Rubio wants to bolster ties with Asia to counter China’s sway, but President Trump’s tariff threats have nations asking why they should align with Washington.
- The Mystery of Trump’s 25% Tariff Threat on Kazakhstan — The Central Asian nation, rich in critical minerals, is deepening its ties to China but does relatively little trade with the United States.
Caixin
- SAIC Scales Back in India as Chinese Firms Reassess Exposure — Chinese firms stage a strategic retreat as regulatory scrutiny increases in India.
- Zeekr Unveils Plan for L3 Autonomous Driving in Upcoming 9X Model — Zeekr announces a bold step toward full self-driving technology as control shifts from the motorist to the car.
- China’s Embodied AI Boom Rolls on as DexForce Lands New Funding Round — Funds flow in for DexForce, a Chinese robotics startup focused on the ‘brain’ behind embodied AI.
- Trump’s Stablecoin Embrace Ups Pressure on China to Join Race — Stablecoins’ potential to transform the global payments system and maintain the dollar’s dominance could threaten China’s strategy to internationalize the e-CNY.
- Potentially Disruptive Green Ammonia Project Officially Starts Production — Envision Group touts its novel ‘standalone grid’ setup, but finding customers willing to pay for the pricier product remains a challenge.
South China Morning Post
- Why China’s white- and blue-collar workers are worried about losing their shirts — China’s employment picture is bleak — and the whole workforce, across all ages and income levels, is having trouble seeing a way forward.
- Chinese business owners now in US see American dream become reality of hardship — Investors thought they were playing by the rules when they brought business and jobs to US states such as Texas and California.
Nikkei Asia
- Panda diplomacy softens sharp edge of China’s foreign policy — Gifts of animals can smooth international relations and garner public support.
- Japan, China take step towards resuming Japanese beef exports to China — Beijing has maintained a ban on imports since a 2001 outbreak of BSE.
- Temu’s 300% price hike after new tax sparks debate in Pakistan — Experts warn tax-driven cost increases will hurt consumers, digital economy.
Bloomberg
- Even 190% Tariffs Can’t Shake U.S. Shoemaker’s Reliance on China — The predicament is faced by companies globally that rely on U.S. consumers and Chinese producers.
- Huawei Seeks AI Chip Customers in Middle East, Southeast Asia — The hardware giant has reached out to potential customers in the United Arab Emirates, Saudi Arabia and Thailand, sources said.
- Chinese Stocks Narrow Gap With Hong Kong as Policy Bets Grow — A nascent reversal is taking place in July, as investors bet on positive policy messaging from the Politburo.
Reuters
- Chinese banks stumble on Beijing’s consumer lending push — Chinese banks are struggling to comply with new Beijing guidelines to boost consumer credit as they reel from a surge of defaults on personal loans.
- In big shift, Shanghai regulator mulls policy responses to stablecoins and cryptocurrencies — Any change in China may not come easily, with the country’s capital controls likely to be a key hurdle to the development of stablecoins, market participants have said.
Other Publications
- The Economist: China’s local governments are approaching a fiscal black hole — Can provincial DOGE-ing help them avoid it?
- Rest of World: Struggling Chinese EV brands go global to flee brutal price war at home — Backlash against Neta Auto in Thailand underscores risks of companies expanding abroad too soon.
