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 Consumer Spending Falls for First Time Since Covid — The country’s economic growth has become increasingly reliant on exports, stirring up geopolitical tensions.
- DeepSeek Becomes China’s Most Valuable AI Startup After $7.4 Billion Fundraise — Founder Liang Wenfeng invested around $3 billion in the biggest contribution.
The Financial Times
- China retail sales sink for first time since Covid — Investment slump deepens as divergence widens in second-biggest economy.
- China’s Xi Jinping urges Myanmar’s coup leader to push ahead with strategic project — General-turned-president Min Aung Hlaing seeks Beijing’s support during state visit in bid to ease international isolation.
- Opinion: If Brussels starts a trade war, Beijing will finish it — Wargaming the EU-China conflict warns Europe against aggression towards an opponent with superior firepower. By Alan Beattie.
- Opinion: Cutting access to Anthropic’s Mythos is a gift to China — Washington’s suspension just strengthened Beijing’s pitch for its own competing AI models. By Agathe Demarais.
The New York Times
- Trump Thanks China and Russia, Partners of Iran, for Diplomatic Help — China and Russia have both given support to Iran during the war that the United States and Israel started. But President Trump has made no mention of that.
- China’s Spending Slowdown Deepens as Households Tighten Their Belts — The unexpected decline in retail sales underscored China’s growing reliance on exports to sustain economic growth as domestic demand continues to falter.
- It’s Not Just Nvidia. The A.I. Boom Has Ignited Asia’s Chip Companies. — They make much of the gear that goes into giant data centers. Demand for their products is shifting the balance of tech power.
Caixin
- New Model Sends Zhipu AI’s Stock Soaring — Hong Kong-listed shares of Zhipu AI soared on Monday after the Chinese artificial intelligence company released its most powerful large language model.
- China’s Investment Contraction Deepens on Property Slump, Manufacturing Weakness — China’s fixed-asset investment shrank a worse-than-expected 4.1% in the first five months of the year.
- Walmart-Owned Supermarket Execs Summoned Over Food Safety Violations — The regulatory action highlights growing government scrutiny over Sam’s Club.
- China Unveils Three-Year Plan to Drive Heavy Industry Decarbonization — China has launched a three-year action plan to enforce energy conservation and carbon reduction upgrades across nine high-emission industries.
South China Morning Post
- EU says China trained Russian troops as bloc weighs tougher stance on Beijing — Kallas cites verified reports of Chinese training for Russian forces as Brussels weighs sanctions and new trade measures.
- EU carbon tariff sows havoc in China as steel firms grapple with ‘absurd’ rules — The system is creating huge new compliance burdens for China’s steel firms, with smaller producers using greener technology often hit hardest.
- Argentina edges back to China on currency swap despite US pressure — Buenos Aires denies negotiating renewal, but the US$19 billion swap expires August 6, and Argentine reports say talks are already advancing.
Nikkei Asia
- Foxconn, Schneider Electric team up in AI data center equipment — Partnership spans servers, power systems and cooling.
- China retail sales fall for first time since COVID lockdowns — Reading slips 0.6% as household and business confidence weaken.
Bloomberg
- China’s Strong Bond Sale Pressures Yuan Liquidity in Hong Kong — Robust appetite for China’s offshore yuan bonds is aggravating a quarter-end liquidity squeeze in Hong Kong, sending funding costs to a two-month high.
- China Home Prices Fall at Faster Pace in Setback to Revival — China’s home prices fell at a quicker pace in May, halting green shoots seen at the start of the year that had raised hopes of a recovery.
- China’s Oil Refiners Slash Output After Crude Imports Plunge — Chinese oil refiners reduced output to the weakest level in nearly four years due to a plunge in crude imports from the Persian Gulf.
Reuters
- Novo Nordisk to seek approval soon to sell Wegovy pill in China — Denmark’s Novo and U.S.-based Lilly believe weight-loss pills could attract patients reluctant to use injections.
- One dead, 4 injured after magnitude 6.3 earthquake in China’s Qinghai — The quake struck a high-altitude area in the prefecture of Haixi in Qinghai with a depth of 10 km.
- China signs up 26 financial institutions to digital yuan cross-border payment platform — The agreement will allow participants to join the Cross-border e-CNY Transfer Services.
Other Publications
- The Washington Post: China controls trade chokepoints beyond rare earths. It’s squeezing them. — Stalled negotiations between Space X and a Chinese solar tech firm illustrate Beijing’s growing reach.
- AP: China Shock 2.0: Surging Chinese exports threaten Europe’s economy, raising concern at G7 summit — Earlier this year, French President Emmanuel Macron warned that Chinese exports are “literally killing a large part of the European industry’’.
- CSIS: The New Carbon Order: China’s Response to Europe’s CBAM — There is a significant evolution in China’s approach to carbon management and accounting, which is reshaping its energy system.
