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 Places His Top General Under Investigation as Military Purges Heat Up — Gen. Zhang Youxia is most senior active member of military hierarchy to face dismissal since Tiananmen Square fallout.
- China’s Top General Accused of Giving Nuclear Secrets to U.S. — Bribery allegations have also been leveled against Gen. Zhang Youxia, whose downfall carries implications for the country’s military readiness.
- China Trains AI-Controlled Weapons With Learning From Hawks, Coyotes — Beijing’s military focuses on swarming drones that can pick off prey or robots that can chase down enemies.
- Pentagon’s New Defense Strategy Strikes Conciliatory Tone on China — Blueprint says U.S. will focus attention on Western Hemisphere while reducing military role in Europe, South Korea and Middle East.
- China Built a Vast Oil Stake in Venezuela. Now It Risks Getting Muscled Out. — After Maduro’s ouster, Beijing’s interests are now subject to Trump preferences.
- Trump Threatens New Tariffs on Canada Over China — The president warned of 100% tariffs on Canadian goods if the North American neighbor ‘makes a deal with China.’
- Disney’s Surprise Box Office Champion is ‘Zootopia 2,’ Thanks to China — The animated sequel outgrossed ‘Avatar: Fire and Ash’ to become Disney’s top film release of 2025.
- Chinese Beverage Giant Seeks to Raise Up to $1.3 Billion in Hong Kong Listing — Eastroc plans to raise up to $1.30 billion via the issuance of 40.9 million shares.
The Financial Times
- Trump threatens 100% tariffs on Canada if it seals trade deal with China — North American tensions resurface after Mark Carney warned of ‘rupture’ in global order at Davos.
- Xi takes sole operational control of army as China probes military leaders — Two generals are being investigated for ‘serious discipline violations and violations of the law.’
- U.S. unveils national defense strategy to counter China in Indo-Pacific — New plan prioritises security in the region and a renewed focus on the western hemisphere.
- China’s military says top general undermined Xi’s authority — Zhang Youxia under investigation after affecting ‘party’s absolute leadership over military,’ PLA’s official media claims.
- Robots only half as efficient as humans, says leading Chinese producer — UBTech executive highlights difficulty in replacing workers with machines but manufacturers are still racing to order them.
- China goes on hiring spree for tax officials as fiscal pressures mount — Beijing plans tougher enforcement to rein in corporate tax breaks and increase revenue from digital economy.
- Starmer prepares for Chinese charm offensive — UK prime minister will use his visit to build ties with Beijing on issues from illegal migration to financial services.
- China’s labs pull ahead as global drugmakers invest in biotech pioneers — Faster trials and lower costs are drawing western multinationals as they seek new treatments.
The New York Times
- Trump Threatens Canada With Tariffs as Post-Davos Fallout Continues — President Trump said he would impose tariffs if Canada made “a deal with China,” though there is no sign that those countries are discussing a broad trade agreement.
- Despite Trump’s Words, China and Russia Are Not Threatening Greenland — U.S. and European officials say they are unaware of any intelligence that shows China and Russia are endangering the island, which is protected by the NATO security umbrella.
- U.S. Automakers’ Foreign Troubles Now Extend to Canada — U.S. trade policy has devastated the Canadian auto industry and pushed the country to reach an agreement that will make it easier for Chinese companies to sell cars there.
- Xi’s Purge of China’s Military Brings Its Top General Down — The ouster of Gen. Zhang Youxia, who was second only to Xi Jinping in the military hierarchy, marks “the total annihilation of the high command,” one analyst said.
- In Xi’s China, Top General’s Fall Shows Precariousness of Power — A combat veteran, Zhang Youxia was once seen as the most trusted man in Xi Jinping’s military. Now he has been accused of disloyalty to Mr. Xi.
- Opinion: The Island That Actually Matters to American Interests — The risk of Chinese aggression is hard to gauge, but it surely grows if we signal that Beijing has a free hand. By Nicholas Kristof.
Caixin
- China’s Deposit Repricing Tests Banks and Savers as Trillions Come Due — As long-term deposits mature this year, lower rates are reshaping bank funding costs and household asset allocation.
- StepFun Raises $717 Million, Outpacing Newly Listed AI Rivals — The funding haul surpasses recent IPOs by Zhipu AI and MiniMax as the startup doubles down on hardware integration and multimodal models.
South China Morning Post
- Why Thailand, a U.S. treaty ally, is stocking up on Chinese weapons — Bangkok’s recent purchases of Chinese military hardware include tanks, missiles and ships, while a submarine deal is back on track.
- Jeffrey Ding on why diffusion, not innovation, is the secret to victory in the AI race — Professor says a ‘diffusion marathon,’ where AI is gradually embedded in an economy over decades, will determine the winner of U.S.-China tech war.
- Maker of China’s C919 jet set to pick up production pace after delay — With 8 of the 15 planes made last year delivered to customers in November and December, a source said supply chain snags seem to be diminishing.
Nikkei Asia
- Fewer Chinese tourists cause weaker outlook for Japanese retailers in 2026 — Department store tax-free sales fell in December as China arrivals dropped 45%.
- China’s AI glasses makers led by Alibaba to take on Meta, Samsung globally — Focus on hardware, AI and affordability already proving popular with domestic consumers.
- ‘Death, taxes, Chinese basketball’: Betting scandal spans superpowers — Globalized gambling tests Beijing’s yearslong fight against corruption in sport.
Bloomberg
- ByteDance Emerges From TikTok Saga With ‘Major Win’ on U.S. Access — TikTok’s reversal of fortune offers a template for other Chinese firms seeking to insulate themselves from the escalating friction between the world’s two biggest economies.
- Investors Hedge China, Tech Risks Amid Trump TACO Trade Drama — Some investors put hedges against geopolitical risks that could pressure shares of Chinese companies.
- A Tale of Two Economies Is Reshaping China’s Stock Market — It is prompting investors to raise bets on the beneficiaries of an industrial export boom at the expense of firms mired in a consumption slump.
Reuters
- Accidental ‘crying horse’ toy wins hearts in China — The toy has gone viral on Chinese social media ahead of the Spring Festival holiday.
- Astrazeneca CEO Soriot to join Starmer delegation to China, source says — It illustrates how major Western drugmakers increasingly view China not only as a large sales market but also as a rapidly rising source of biotech innovation.
Other Publications
- The Atlantic: Why Is Trump Cozying Up to China? — The president’s very personal approach to diplomacy poses real threats to American security.
- The Washington Post: Amid botched procedures, China is cracking down on cosmetic surgery — After reports of blackened noses and swollen faces from back alley plastic surgeons, China is sounding the alarm on the booming aesthetics industry.
- The Information: Behind the Sky-High Valuation of China’s AI IPOs — China is letting AI and semiconductor startups go public at a furious pace.
