Caixin
Aug 31, 2022 08:18 AM
CX DAILY

CX Daily: Washington’s Drive to Hobble Chinese Chipmaking

The CHIPS and Science Act of 2022 was signed by U.S. President Joe Biden on Aug. 9. Photo: VCG
The CHIPS and Science Act of 2022 was signed by U.S. President Joe Biden on Aug. 9. Photo: VCG

Chips /

Caixin Explains: Washington’s drive to hobble Chinese chipmaking

Promoting the semiconductor industry is a key priority for Beijing.

Microchips are among the seven “core technologies” the country aspires to master, according to a 2021 economic blueprint. The scandal-struck “Big Fund” set up to invest in the industry has sucked up more than 300 billion yuan since 2014.

But a massive U.S. semiconductor subsidy program that became law earlier this month will further complicate China’s efforts.

Congress /

Communist Party’s 20th National Congress to kick off on Oct. 16

A Tuesday meeting of the Politburo of the Communist Party of China (CPC) set Oct. 16 as the starting date for the long-anticipated 20th National Congress at which the party will officially elect its new leadership, the Xinhua News Agency reported.

A new Central Committee, the party’s top decision-making body, and a new Central Commission for Discipline Inspection, the party’s internal anti-graft body, will be elected at the congress, according to the Xinhua report.

Covid-19 /

Shenzhen schools delay fall term as city braces for fresh Covid outbreak

Shenzhen ramped up Covid-19 curbs with schools in some parts of the city postponing their fall term start date and more residents facing movement restrictions as the technology hub grappled with a fresh outbreak this week.

Four districts in Shenzhen announced four-day lockdown measures Monday with residents in seven high-risk areas prohibited from leaving their homes. That same day, city officials reported 35 domestic Covid-19 positive cases, of which 11 are asymptomatic.

Macao expands mRNA vaccine access to mainland tourists

FINANCE & ECONOMY

A stalled housing project in Wuhan, Hubei province. 

Property /

China to issue $29 billion of special loans to finish housing projects

China will issue 200 billion yuan ($29 billion) in special loans to help developers finish stalled housing projects, Caixin learned from several sources.

The Ministry of Housing and Urban-Rural Development, the Ministry of Finance and the central bank will support developers through special loans from policy banks, state broadcaster China Central Television reported.

Caixin confirmed from several independent sources that the loans will be initially provided by China Development Bank and Agricultural Development Bank of China, and the Export–Import Bank of China may join the effort later.

Infrastructure /

Two Chinese policy banks invest $43 billion to support infrastructure stimulus

Two of China’s policy banks invested a combined 300 billion yuan ($43 billion) to fund infrastructure construction and other eligible projects as part of an aggressive campaign to stimulate the ailing economy.

The China Development Bank (CDB) — the country’s largest policy lender by assets — said it financed 422 projects with a total of 210 billion yuan as of Friday. The Agricultural Development Bank of China (ADBC) said it financed more than 500 projects to the tune of 90 billion yuan as of Aug. 20.

Village banks /

China lowers the boom on 234 arrested in village banking scandal

Police in central China's Henan province arrested 234 suspects in connection with a multibillion-dollar village banking scandal that sent ripples across China and resulted in violent protests, police in the province's Xuchang city said Monday.

The Xuchang public security bureau said in a statement that the work of loss recovery has made significant progress and the investigation is proceeding.

Quick hits /

China takes stronger stance against weakening yuan

China to tighten oversight of companies’ offshore debt sales

China’s mortgage strike doubles Agricultural Bank’s overdue loan estimate

BUSINESS & TECH

On August 23, 2020, Tianjin, Cansino headquarters. Photo: VCG

Drugmakers /

Chinese Covid-shot makers’ profits decline as demand wanes

Two major Chinese drugmakers reported plunging profits for the first half of 2022 as global demand for Covid-19 vaccines slumped.

CanSino Biologics Inc. reported its net profit attributable to shareholders plunged 99% year-on-year to 12.2 million yuan ($1.8 million), citing weakening demand for new Covid-19 jabs and falling prices.

Shanghai Fosun Pharmaceutical (Group) Co. Ltd. reported a 37.7% year-on-year decline in net profit attributable to shareholders.

Quick hits /

Brand loyalty becomes a winning strategy in China’s EV wars

Tech Insider /

Pinduoduo’s earnings beat, China plans for self-flying cars

Long Read /

A little-known Chinese cancer village in Houston

GALLERY

Central China lake is drying up

 

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