China Caught in Crossfire of Tokyo-Seoul Chipmaking Feud (Asian Review, 3 min read)

(You can read the article by clicking here)

South Korea is on Japan’s white list of trading partners. But not for long. It plans to impose export restrictions as soon as August, which would have major cross-country impact on semi-conductor trade in East Asia. The two major chipmakers, Samsung and SK Hynix, are based in South Korea and are responsible for up to 70% of worldwide production. And they predominantly manufacture in China, using materials imported from Japan. Tougher restrictions on the supplying of raw material to continue this production would not only make China an unattractive host, it would hurt South Korea’s GDP. To counteract, President Xi Jinping is aiming to make 40% of the chips needed at home by 2025.

Why does this matter? With US tech restrictions on China and now a spat between Korea and Japan, the chip sector is up in the air. However, keep an eye on the discussion at the World Trade Organisation next month – Japan is aware that export controls look bad and might defuse the threat. This doesn’t appear to be fully priced by the tech hardware sector.

Smart home tech makes inroads into China’s emerging elderly care market (Reuters, 4 min read)

August 16, 2019

Stimulus Prep or Prelude to Deflationary Crisis: China Tightening Screws on Real Estate (Investing in Chinese stocks, 4 min read)

August 16, 2019

Inside China’s vast influence network – how it works, and its reach in Australia (The Conversation, 4 min read)

August 16, 2019

Hong Kong protests: history lessons for Beijing from British colonial era uprising (The Conversation, 4 min read)

August 16, 2019

China’s AI Talent Base Is Growing, and then Leaving (Macro Polo, 3 min read)

August 16, 2019

Chinese Universities Need to Attract More Foreign Students, But Not by Treating Them Differently (SCMP, 3 min read)

August 9, 2019

The Real Reason for China’s Rise (Project Syndicate, 3 min read)

August 9, 2019

The Messy Truth About Social Credit (Logic Magazine, 10 min read)

August 9, 2019

New China Tariffs Increase Costs to U.S. Households (Liberty Street Economics, 4 min read)

August 9, 2019

U.S. Breaking Promises is Setting New Obstacles for Trade Talks with China (People’s Daily, 3 min read)

August 9, 2019

To Feed its 1.4 billion, China Bets Big on Genome Editing of Crops (Science Magazine, 7 min read)

August 1, 2019

China’s Long View (Project Syndicate, 3 min read)

August 1, 2019

How the U.S. Could Lose a War with China (The Atlantic, 3 min read)

August 1, 2019

China Makes Concession on US Farm Goods in ‘Frank’ and ‘Constructive’ Talks (SCMP, 4 min read)

August 1, 2019

Beijing Axes Individual Travel Visas for Chinese Tourists Visiting Taiwan (Taiwan News, 3 min read)

August 1, 2019

(The commentary contained in the above article does not constitute an offer or a solicitation, or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs.)

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