All of this happened in China this week. A thread 🧵1/10
Policy Boost. China's Politburo vowed to ramp up its fiscal strategy. Top leaders used stronger language to describe policy for next year signaling the need to boost domestic demand. Economists expect a more aggressive growth goal. 2/10 bloomberg.com/news/articles/…
Leak. A decision by Moody's to cut its outlook for China's credit rating to negative was leaked on social media hours before the move. The outlook for Hong Kong and 8 Chinese banks was also lowered. 3/10 bloomberg.com/news/articles/…
Weak Data. A surprise contraction in China's imports sparked worries over domestic demand. Even compared to the low base during Covid last year, purchases shrank 0.6% in November. Economists had forecast a 3.9% gain. 4/10 bloomberg.com/news/articles/…
Barbs. Beijing blasted the US for seeing it as "hypothetical enemy" after Commerce Sec Raimondo called for more funding to combat the Asian nation's chip push, saying "China is not our friend." 5/10 bloomberg.com/news/articles/…
Tensions. Beijing criticized the US Navy for "seriously" violating its sovereignty by sailing a warship in disputed waters in the South China Sea. The US said it was conducting routine operations. 6/10 bloomberg.com/news/articles/…
Tough Message. European Union leaders met with Xi for the first in-person summit between the two sides in four years. Xi said he wants a "trusted partner in industrial and supply chain." Von der Leyen said they had "intense" conversations. 7/10 bloomberg.com/news/articles/…
Open Borders. Singapore authorities seized assets including cash, 62 cars, 152 properties and gold bars totaling more than S$2.8 billion in its biggest money laundering case. The probe ensnared 10 people of Chinese origins. 8/10 bloomberg.com/news/articles/…
Skipping Bail. Hong Kong's Agnes Chow, a prominent democracy activist, is entering self-imposed exile. She struck a deal with authorities for the return of her passport to study in Canada. She's meant to report back in HK soon but plans not to return. 9/10 bloomberg.com/news/articles/…
More Time. Embattled developer Evergrande surprised creditors by securing more time to present a restructuring proposal and avoid liquidation. The court gave it eight more weeks to figure out a plan. 10/10 bloomberg.com/news/articles/…
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Competitive Edge. Huawei is funding optical specialists, chip equipment developers and chemical manufacturers without disclosing its role. A top Beijing official encouraged the firm to launch a new phone during US commerce chief Raimondo's visit there 2/10 bloomberg.com/news/articles/…
Winter Outbreak. Beijing warned of a possible major outbreak of respiratory illnesses during the country's first winter after pandemic restrictions were lifted. A rise in pneumonia among children flooded hospitals last month. 3/10 bloomberg.com/news/articles/…
Property Survivors? Beijing reaches its tolerance for pain in the property sector. Authorities drafted a list of 50 developers eligible for funding. That whitelist even includes developers like Country Garden that have already defaulted. 2/10 bloomberg.com/news/articles/…
Ramping Up. Banks may offer developers loans with no collateral, an unprecedented move. Elsewhere, regulators told financial institutions to meet all “reasonable” funding needs. Beijing's latest raft of measures boosted property stocks and bonds. 3/10 bloomberg.com/news/articles/…
Making Progress. A big week for Xi. He and Biden agreed on efforts to combat fentanyl, restore high-level military talks and hold a dialogue about AI. Biden’s off-the-cuff remark calling Xi a "dictator" showed entrenched divisions that may upend ties. 2/10 bloomberg.com/news/articles/…
Warm Words. Xi took his "old friends" from Iowa to dinner in San Francisco. He was joined by top US CEOs including Apple's Tim Cook and BlackRock's Larry Fink. Some paid $40,000 for seats including a spot at Xi's top table. 3/10
Outflows. China is having a hard time wooing international investors back to the country. A measure of foreign direct investment showed an outflow of $11.8 billion in the third quarter, the first contraction since records began in 1998. 2/10 bloomberg.com/news/articles/…
Warm Welcome. Hundreds of people including the CEOs of major American firms are expected to attend a dinner where President Xi Jinping will be the guest of honor when he visits San Francisco for the APEC summit this month. 3/10 bloomberg.com/news/articles/…
Public Grief. China cremated former Premier Li Keqiang in Beijing and flew national flags at half-staff. The 68-year old's sudden death of a heart attack sparked an outpouring of nostalgia. Some struggled to believe the reasons for his death. 2/10 bloomberg.com/news/articles/…
Fragile Growth. China's economic recovery faced a setback in October with factory activity contracting and improvements in the services sector slowing. @economics said the disappointing data are a warning that can't be blamed on seasonal trends. 3/10 bloomberg.com/news/articles/…
Legacy. Former premier Li Keqiang died suddenly of a heart attack aged 68. Tributes flowed in for Li on the country’s tightly controlled internet. Sidelined by Xi, the former No. 2 earned a reputation as a man of the people and economic liberal. 2/10 bloomberg.com/news/articles/…
Spooked. Authorities made a series of arrests across industries and launched an investigation into Foxconn, the firm that makes iPhones for Apple. That's rattling investors already worried by private sector crackdowns in recent years. 3/10 bloomberg.com/news/articles/…