Links for Wednesday, April 13, 2022

Bond yields
U.S. and Chinese bond yields converge, reversing a decadelong pattern / WSJ (paywall)
China’s more than a decade-long yield advantage over the U.S. “vanished on Monday this week — at least in nominal terms. The yield on benchmark 10-year Chinese government bonds closed at 2.767% that day, while the yield on the 10-year Treasury note ended at 2.779%.”

Huawei diversifies
Chinese telecoms giant Huawei speeds up bond sales to help fund expansion into software, services / SCMP (paywall)
“Huawei Technologies Co will issue 3 billion yuan (US$470 million) of short-term debt next week, a month after it sold 3 billion yuan in China’s interbank market, in a sign that the Shenzhen-based telecoms giant is accelerating the use of debt financing in its operations.”

HSBC eyes Asian billionaires
HSBC is on a hiring spree as it courts Asia’s wealthy / WSJ (paywall)
HSBC will “hire rapidly in its Asian wealth business in 2022, building on last year’s brisk expansion, and remains open to growing in this area through deals, according to the executive overseeing the bank’s dealings with individual customers.”

Stellantis retreats from Dongfeng venture
Stellantis begins reset of joint venture with China’s Dongfeng / Nikkei Asia (paywall)
“Stellantis said on Wednesday that it will pull out of its Chinese auto finance joint venture with state-owned Dongfeng Motor Group, the latest step in the overhaul of its operations in the world’s largest auto market.”
Stellantis rejigs China financing ops in latest reboot plans / Reuters

Alibaba Cloud’s new bosses
Alibaba Cloud undergoes leadership reshuffle, report says, joining China’s tech industry upheaval / SCMP (paywall)
“Alibaba Cloud, the cloud computing unit of Alibaba Group Holding, is undergoing a reshuffle among senior executives, Chinese media reported on Wednesday.”

Vivo rolls out a phone that folds in half
Chinese phone maker Vivo unveils its first foldable phone X Fold / TechNode
“Chinese smartphone manufacturer Vivo released its first foldable phone on Tuesday, targeting premium users with a price tag of around $1,500.”

China curtails train schedules under COVID pressure
China railway cuts daily schedules by 70% amid COVID-19 surge / Sixth Tone
“The window for advanced ticket bookings has now been changed from 15 days to just five days.”

Academia, publishing, and plagiarism
How China’s biggest academic library got shrouded in copyright disputes / Caixin

Apple suppliers and automakers crack under COVID curbs
Apple laptop maker joins growing COVID plant closures in China / Bloomberg (paywall)
“More than 30 Taiwanese companies including Pegatron Corp. and Macbook maker Quanta Computer Inc. have now halted production in the electronics hubs of eastern China to comply with local Covid-related restrictions, spelling more trouble for an already fragile global tech supply chain.”
Shanghai, Kunshan lockdowns hit iPhone, Mac and iPad makers / Nikkei Asia (paywall)
NIO, Tesla, and more pause production as omicron surges in Shanghai and China / TechNode
“Top automakers NIO, Tesla, and Volkswagen, are temporarily closing their plants in China as a new omicron-led coronavirus outbreak spreads through the country. Following China’s COVID zero policy, cities rush to implement lockdowns, creating broken links in the local supply chain.”
NIO joins caravan of automakers halting production in China due to COVID / Caixin (paywall)
Tesla’s Shanghai shutdown threatens to crimp car production / Bloomberg (paywall)

Hong Kong’s big banks reopen
HSBC, Standard Chartered, Citi among six lenders reopening all branches as Hong Kong’s vaccination rate rises, COVID-19 cases ease / SCMP (paywall)
“Six of Hong Kong’s largest banks will fully restore their branch operations next week, as the city prepares to relax some of its social-distancing rules amid improved vaccination rates and a slowing caseload.”

China imports and exports
China’s March exports grow despite virus; imports flat / AP
China’s imports unexpectedly fall as COVID curbs convulse trade outlook / Reuters

End to gaming freeze
China gaming firms toe the line, paving the way to end license freeze / Reuters

China’s tumultuous trade with Russia
China’s exports to Russia slump after Ukraine invasion / Bloomberg (paywall)
China’s Jan-March overall trade with Russia rises 28% to $38.2bn / Nikkei Asia (paywall)

Shanghai and snarled supply chains
Diversifying supply chains from China ‘probably good for everyone’ – World Bank chief / Reuters
“Countries around the world are working to diversify their supply chains and reduce their dependence on China, which is ‘probably good for everyone,’ World Bank President David Malpass said on Tuesday.”
Global trade hit by Ukraine war, China lockdowns / WSJ (paywall)
China’s widening COVID curbs threaten global supply chain paralysis / Reuters
China’s lockdowns could trigger a logistics snarl that may ‘dwarf’ 2020 and 2021 / CNBC
Shanghai lockdown stokes global supply chains anxiety / FT (paywall)

BlackRock edges back into China ETFs
BlackRock plans first China ETF product this year – sources / Reuters
“BlackRock Inc plans to launch its first product in China’s $220 billion onshore exchange-traded fund (ETF) market later this year and has started hiring staff accordingly, two people with direct knowledge of the matter told Reuters.”

China’s oil woes
IEA cuts oil demand forecast as China reimposes lockdowns / Bloomberg (paywall)
“The International Energy Agency cut its forecast for global oil demand this year after China reimposed lockdowns to contain the spread of a resurgent coronavirus.”
China urged to build up oil stockpiles as import costs balloon / Caixin (paywall)
China’s oil champion prepares Western retreat over sanctions fear / Reuters

An end to the lithium rally?
The near-500% rally in lithium is showing cracks in China / Bloomberg (paywall)
“Chinese lithium carbonate, which has gained almost 500% in the past year, slipped slightly on Monday after steadying in the past week, according to Asian Metal Inc.”

More industries take a blow from COVID controls
Solar power is the latest industry hit by China’s pandemic curbs / Bloomberg (paywall)
“The solar power industry is the latest to be hit by China’s strict COVID control measures, with equipment makers cutting production amid complaints of shipment delays and staffing problems.”
Chinese semiconductor imports fall as self-sufficiency drive shapes up / SCMP (paywall)
“China’s imports of integrated circuits (ICs) shrank 9.6 per cent in volume in the first quarter from a year ago, according to Chinese customs data, marking a sharp retreat from the 33.6 per cent increase in the same period in 2021.”

China’s push to protect its economy
China steps up stimulus with infrastructure bond sales quota / Bloomberg (paywall)
“China’s government granted provinces their full allocation of special bonds to be used for infrastructure investment, a sign it’s stepping up stimulus to boost an economy overshadowed by a worsening COVID outbreak.”

U.S. puts more pressure on China over war in Ukraine
Janet Yellen calls on China to push russia to end Ukraine war / NYT (paywall)
“The Treasury secretary told the Atlantic Council on Wednesday that the U.S. would press ahead with sanctions.”
U.S., allies ‘will not be indifferent’ to those who undermine Russia sanctions, Yellen warns / Reuters
China scrambles for cover from West’s financial weapons / Nikkei Asia (paywall)
“Spooked by sanctions on Russia, Beijing looks to build on its own international payments system.”
In long term, China trade challenge will “eclipse” today’s Russia crisis, says U.S. trade czar / Vanity Fair
“As the world watches Vladimir Putin’s violent assault on Ukraine, Katherine Tai knows it will add even more pressure on her talks with China.”

Has “common prosperity” been shelved?
China sets aside push to spread wealth in pivotal year for Xi / NYT (paywall)
Xí Jìnpíng’s 习近平 “common prosperity” rhetoric about redistributing wealth was “aimed partly at drumming up public support. But it unnerved entrepreneurs and posed a drag on growth.”

South Korea signals a tougher stance with China
South Korea picks Harvard-educated conservative as top diplomat / Bloomberg (paywall)
“South Korea’s president-elect picked a veteran lawmaker with experience in international relations to be his foreign minister, as he plans a hawkish course in diplomacy and closely aligns with Washington on North Korea and China.”

Japan and Italy strengthen ties
Japan, Italy to lift defense ties amid China, Russia worries / AP
“Japanese Defense Minister Nobuo Kishi said he and his Italian counterpart agreed Tuesday to step up military cooperation as Japan expands security ties with Europe amid concern about Russia’s invasion of Ukraine and its impact on Asia.”

Taiwanese pro-democracy activist to be released from China prison
Taiwanese activist Lee Ming-che expected to be released from mainland Chinese jail after five years / SCMP (paywall)
“Mainland Chinese authorities are expected to release Taiwanese activist Lee Ming-che (李明哲 Lǐ Míngzhé) who has been serving a five-year jail term for subversion on the Chinese mainland.”

Pressure to ramp up U.S. report on China’s rights record
China activists call for reboot of State Dept. annual human rights report / Politico
“Human rights activists focused on China want the State Department to reboot the report’s format to address documentation blind spots and connect it to policy and initiatives to stop the violations and provide accountability for victims.”

Taiwan beefs up its military
Taiwan to boost defenses of tiny islet outpost Dongyin with short-range automated weapons / SCMP (paywall)
“Taiwan expects to strengthen its tiny military outpost on an islet off the mainland province of Fujian before the end of this year, with the deployment of its home-grown short-range automated defense system.”

National Security Law nets more teachers and activists
Hong Kong protests: activist jailed for 16 months for organizing 2019 illegal march in Yuen Long after mob attack / SCMP (paywall)
“A Hong Kong activist has been jailed for 16 months for organizing an unauthorized protest in 2019 against perceived police inaction over a mob attack at a railway station.”
6 Hong Kong teachers disqualified over complaints linked to 2019 protests / HKFP
“Six Hong Kong teachers have been disqualified over complaints linked to the 2019 anti-extradition bill protests and unrest, documents submitted to [the] Legislative Council have revealed.”

Solomons deal with China
Western pressure mounts on Solomons to quash pact with China / AP
Australia asks Solomon Islands to abandon China security pact / WSJ (paywall)
Australian minister flies to Solomon Islands for urgent talks on China pact / FT (paywall)
Australia official in Solomon Islands amid China worries / Al Jazeera
Australian minister tries to end Solomons-China pact / NPR

Shanghai and COVID
China to allow eight cities to shorten quarantine times in trial / Bloomberg (paywall)
“China is allowing Shanghai, Guangzhou and six other cities to shorten quarantines for overseas travelers and those who’ve had close contact with infected individuals as authorities test potential tweaks to the country’s rigorous Covid measures, according to people familiar with the matter.”
China trying out reduced quarantine for some groups in eight cities – media / Reuters
Shanghai releases more from virus observation amid lockdown / AP
WHO: COVID cases and deaths fall for 3rd consecutive week / AP
China flirts with shorter quarantines for overseas arrivals amid Shanghai COVID outbreak / WSJ (paywall)
Shanghai vows punishment for COVID lockdown violators as cases hit 25,000 / Reuters
Shanghai patients crowdsource medical help during COVID lockdown / Reuters
Shanghai residents organize themselves to survive lockdown chaos / Caixin (paywall)
Shanghai’s COVID-19 cases resume setting daily records after a one-day pause, extending horizon of citywide lockdown / SCMP (paywall)
Shanghai’s zero-COVID lockdown / WSJ (paywall)
The WSJ editorial board writes: “The city pays a steep price for Beijing’s refusal to change course.”
China’s ‘zero-COVID’ mess proves autocracy hurts everyone / NYT (paywall)
“The fear in China is that the strict coronavirus policy has become another Mao-style political campaign with devastating effects.”

U.S. pulls its staff out of Shanghai
U.S. pullout of locked-down Shanghai deepens China tensions / Bloomberg (paywall)
U.S. pulls non-emergency staff from Shanghai amid COVID surge / AP
U.S. orders some personnel to leave Shanghai consulate amid COVID surge / Reuters