China Inc by BBW

Ant Group and Tencent slapped with fines, and Freshippo steps up for IPO

China’s central bank has slapped major fines on Ant Group and Tencent, including a nearly $1 billion fine on Ant, operator of Alipay. Is this the start of a new round of big fines on China’s big tech? Or does it mark the end of a recent storm of regulation that began after outspoken Alibaba founder Jack Ma criticized the government? 

Janet Yellen goes to China, and Beijing puts brakes on two key high-tech minerals

Treasury Secretary Janet Yellen has become the latest high-ranking U.S. government official to travel to Beijing, following Secretary of State Antony Blinken’s visit in June. But will it be enough to put U.S.-China relations back on track? And Beijing slaps export restrictions on gallium and germanium, two important minerals used in many high-tech devices. What will this mean for the global tech sector?

Corruption at a major policy bank, and AbbVie sues an upstart drug maker

China Development Bank has become the target of the latest anti-corruption crackdown by China’s main graft buster. Will this affect China’s policy of lending big money to developing countries, and if so, what’s driving such a shift?
And AbbVie has filed a suit in the U.S. against BeiGene, one of China’s most up-and-coming young drug makers. What’s likely to happen next in this tug of war between the two companies’ similar blood cancer drugs? Exactly how expensive and destructive are such lawsuits to the companies involved?

European businesses glum on China, and AstraZeneca weighs spin-off for Chinese unit

The latest annual survey by the EU Chamber of Commerce in China shows revenue fell for more European businesses’ China operations last year. Is this a watershed moment for China’s economy, showing the days of western enthusiasm for investing in the country will never return to pre-covid levels? And AstraZeneca has become the latest major company to weigh a potential spinoff of its China unit. Is this the beginning of a trend?

Corruption crackdown hits China’s big tobacco, and a tech company splits in two

A two-year-old corruption clampdown in China’s sprawling tobacco monopoly and regulator has netted nearly 20 senior officials and executives.
Why doesn't any other company or sector contribute revenue as abundantly and consistently to central government coffers as China Tobacco? Will China ever get serious about stamping out smoking more aggressively?
And real time engagement tech maker Agora announces plans to split in two, one half for its China business and the other for the rest of the world. Is this the wave of the future for China tech?

China’s disjointed labor market, and Elon Musk’s red carpet China treatment

China’s labor market is churning out too many white collar wannabe college grads, but not enough people to fill its blue-collar labor positions.
How can China keep more blue-collar workers and their employers in China? Or does China still need so many blue-collar workers?
And Elon Musk get audiences with China’s foreign, commerce and industry ministers, as well as a vice premier, on a whirlwind trip to Beijing and Shanghai. What is it about this billionaire entrepreneur that wins him so many China fans?
Why do Chinese people and even the government seem to love Elon Musk more than Tim Cook?

China takes global car export crown, and Geely takes a spin with Aston Martin

China officially passes Japan as the world’s biggest car exporter in the first quarter of this year. Will Chinese EVs follow down the same road as its solar panels to dominate the global market? And Geely pays 234 million pounds to boost its stake in the renowned but struggling British sportscar maker Aston Martin. Does this mean we'll see James Bond driving a Geely Aston Martin in the next 007 movie?

Australian timber returns to China, and Alibaba’s break-up marches on

China has resumed imports of Australian timber as relations between the two countries continue to thaw after a period of deep freeze. And Alibaba announces plans to spin off its cloud unit and make IPOs for its Freshippo supermarket and Cainiao logistics businesses.

Alibaba mulls listing for overseas e-commerce, and Nio sues blogger

Alibaba is considering a separate listing for its offshore e-commerce business, consisting of Lazada and AliExpress. And Nio is suing a blogger, accusing him of posting a deliberately misleading video implying the company discriminates against Chinese consumers.

U.S. leaders return to China, and May Day holiday traffic

U.S. Secretary of State Antony Blinken wants to reschedule his postponed trip to China for later this year, while JPMorgan chief Jamie Dimon will head to China later this month. And May Day tourism traffic passes pre-pandemic levels, but property sales remain depressed.