Your Evening Briefing: China Leans Into Battle for Tech Supremacy

Chinese internet moguls are being replaced by chip researchers and engineers on key lawmaking and advisory bodies, a potential sign of Beijing’s lingering distrust for private enterprise and sharpening focus on the tech race with America. Big-name internet entrepreneurs like Baidu Chief Executive Officer Robin Li and Tencent Holdings Chairman Pony Ma vanished from this year’s list of National People’s Congress participants. The conclave, set to begin this weekend, comes at a critical juncture for Xi Jinping as he attempts to steer the economy out of its “Covid-zero” doldrums. Most of his efforts will touch on China’s dealings with the US—both economically and geopolitically. This week, Beijing officials implied America is to blame for the economic turmoil roiling developing countries, deepening the war of words over responsibility for debt pressures afflicting the world’s poorest. The “radical fiscal policy of a certain developed country is the main reason behind the financial difficulties of a large number of developing countries,” a foreign ministry spokeswoman said. China has previously criticized Washington’s emergency bailout packages during the first years of the pandemic, saying the flood of cash caused the spike in inflation that led the Fed to hike rates—which in turn pushed up debt-servicing costs across emerging markets.

US stocks ended the week on a high note, driven by speculation that the Federal Reserve may not, as some have wagered, raise rates beyond peak levels already priced in. A rally in the S&P 500 Friday helped snap a three-week losing streak. The Nasdaq 100 scored its best day since early February. Wall Street sentiment remained upbeat despite good news for the service sector, as some investors wagered the impact of the Fed’s hikes on the economy would be delayed. Here’s your markets wrap.