Editor’s note for Friday, September 24, 2021

Dear reader,

A lot of news broke today:

Huawei CFO Mèng Wǎnzhōu 孟晚舟 to return to China? Meng and the U.S. Justice Department “reached a deal to resolve criminal charges against her,” and in court today, Meng “pleaded not guilty,” Bloomberg reports. “U.S. government lawyers said they will defer prosecution in the matter and dismiss the charges entirely by December 1, 2022 if Meng complies with terms of the agreement. They will also ask Canadian authorities to release her.”

• However, the Globe and Mail cites a source who says the deal does NOT include the release of Canadians Michael Kovrig and Michael Spavor, who were detained in apparent retaliation for Meng’s arrest.

China has detained the two most senior executives at HNA, a debt-laden conglomerate: Chairman Chén Fēng 陈峰 and CEO Adam Tan (谭向东 Tán Xiàngdōng) were arrested on unspecified charges — see Caixin or Reuters for more.

Another business leader in trouble is Yuán Rénguó 袁仁国, former chairman of China’s leading liquor maker Kweichow Moutai Group, who was yesterday sentenced to life in prison for taking bribes.

Bitcoin is now totally illegal to trade in China: China’s central bank has now declared that ALL cryptocurrency-related transactions are illegal, meaning individuals can no longer buy or sell bitcoin. This follows several years of tightening restrictions against decentralized virtual currencies.

Evergrande is still in the news, and will be for some time. Today, Bloomberg says Beijing is taking steps to ensure that Evergrande apartments that have already been sold must be completed for their retail customers.

• Takeaway: China will try to protect Evergrande’s individual Chinese customers, but institutional investors are unlikely to get all their money back.

—Jeremy Goldkorn, Editor-in-Chief