US designates six more Chinese media companies as foreign missions

By Ben Westcott and Jennifer HanslerCNN Business

Updated 0541 GMT (1341 HKT) October 22, 2020

Screengrabs from journalists speaking to press after being evacuated from China
Screengrabs from journalists speaking to press after being evacuated from China

Concept illustration released on Aug 23, 2016 by the lunar probe and space project center of Chinese State Administration of Science, Technology and Industry for National Defence shows the concept portraying what the Mars rover and lander would look like. China's planetary exploration program has been named Tianwen, or Quest for Heavenly Truth, the China National Space Administration announced on Friday.

(CNN Business) The United States government has labeled six more Chinese media companies operating in the US as foreign missions in the latest round of tit-for-tat between Beijing and Washington over restrictions on journalists.US Secretary of State Mike Pompeo announced the decision at a press briefing on Wednesday, saying that the six media companies were “substantially or effectively controlled by a foreign government.””We’re not placing any restrictions on what these outlets can publish in the United States,” Pompeo said. “We simply want to ensure that American people, consumers of information, can differentiate between news written by a free press and propaganda distributed by the Chinese Communist Party itself. They’re not the same thing.”The US operations of Yicai Global, Jiefang Daily, Xinmin Evening News, Social Sciences in China Press, Beijing Review and Economic Daily will all be affected by the decision, according to a release from State Department spokesperson Morgan Ortagus.

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The U.S.-China Conflict Over Chips Is About to Get Uglier

Alan Crawford, DebWu, Colum Murphy and Ian KingFri, October 23, 2020, 12:42 AM GMT+7·11 mins read. Yahoo!Finance

The U.S.-China Conflict Over Chips Is About to Get Uglier
The U.S.-China Conflict Over Chips Is About to Get Uglier

(Bloomberg) — On a scorching hot day in late August, representatives of Taiwan’s government and industry crowded into the clinical cool of a state-of-the-art semiconductor facility for a symbolic moment in the global tech conflict.

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US-China decoupling: is Beijing ramping up its diversification away from the US dollar?

US-China frictions and the threat of American financial sanctions have renewed debate in Beijing about reducing dependence on the US dollarChina cut its holdings of US government debt to US$1.07 trillion in late August, the lowest level since March 2017, the US Department of Treasury says

Frank Tang

Frank Tang in Beijing

Published: 12:00am, 21 Oct, 2020 SCMP

China has long tried to undermine the US dollar’s dominant role in the international monetary system, despite the fact that the bulk of its reserves are in dollar-denominated assets. Photo: Reuters

China has long tried to undermine the US dollar’s dominant role in the international monetary system, despite the fact that the bulk of its reserves are in dollar-denominated assets. Photo: Reuters

China may be speeding up the diversification of its foreign exchange reserves away from US dollar assets in response to potential American financial sanctions, but there are clear limits on how far it can go in its de-dollarisation push, according to analysts.China has long tried to undermine the US dollar’s dominant role in the international monetary system, despite the fact that the bulk of its reserves are in dollar-denominated assets.

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China warns India on eyeing trade talks with Taiwan; slams US-Tibet meeting

Chinese Foreign Ministry spokesman Zhao Lijian (Photo: Reuters)

Chinese Foreign Ministry spokesman Zhao Lijian (Photo: Reuters)

3 min read. Updated: 20 Oct 2020, 09:20 PM IST Elizabeth Roche, livemint.com

  • ‘There is only one China in the world, and Taiwan is an inalienable part of Chinese territory,’ says Chinese foreign ministry spokesman Zhao Lijian
  • The comments come against the backdrop of tensions between India and China along their common border in Ladakh

NEW DELHI: China on Tuesday warned India against launching any talks with Taiwan on trade saying such a move would be violative of the one China policy New Delhi has so far supported.

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Keep an Eye on Taiwan

The battle over the island may be a Cold War relic, but it will shape the future.

MICHAEL SCHUMAN OCTOBER 10, 2020 The Atlantic

Man holding the Taiwan flag up in the air, in front of a blue sky
JOSE LOPES AMARAL / NURPHOTO / GETTY

Taiwan is one of those flash points that has never flashed. The dispute over the island’s fate has had the potential to erupt into conflict between China and the United States for decades. But the feared Chinese invasion has never come. The situation has remained deadlocked for so long that Taiwan’s quandary often drifts into the background of Asian affairs, overshadowed by seemingly more-pressing concerns, such as North Korea’s nuclear ambitions and inflamed tensions between India and Pakistan in Kashmir.

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How China Outsmarted the Trump Administration

The Atlantic

While the U.S. is distracted, China is rewriting the rules of the global order.

Illustration similar to UN logo with globe's latitude and longitude lines as a broken net
Lan Truong

Like ​The Atlantic? Subscribe to The Atlantic Daily​, our free weekday email newsletter.

Back in may, when President Donald Trump called for America to stop funding the World Health Organization, he presented a list of the WHO’s recent failures: the organization’s initial failure to flag the spread of the novel coronavirus; its initial failure to follow up when Taiwan—a country excluded from the WHO because of Chinese objections—inquired about evidence that seemed to indicate that the virus could be transmitted from one human to another; its initial failure to press China to accept an international investigation into the source of the virus. At the beginning of the pandemic, the WHO, which operates as a specialized agency of the United Nations, seemed to be one beat behind. It also seemed overly reliant upon biased information provided by the government of China.

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United States closes immigration door to communists in clear swipe at China

Yahoo! News

Keegan Elmer South China Morning Post 4 October 2020

TĐH: This will affect Vietnam

The United States has released guidance on its immigration laws that will make it almost impossible for members of a Communist party or similar to be granted permanent residence or citizenship of America.

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Pompeo, Vatican clash over China after tensions spill out

By NICOLE WINFIELD Oct. 2, 2020 AP

U.S. Secretary of State Mike Pompeo meets Vatican Secretary of State Cardinal Pietro Parolin, at the Vatican, Thursday, Oct. 1, 2020. Pompeo is meeting Thursday with top Vatican officials, a day after tensions over U.S. opposition to the Vatican’s China policy spilled out in public. (Vatican Media via AP)

ROME (AP) — The U.S. and the Vatican butted heads over China on Thursday as the Holy See chafed at U.S. Secretary of State Mike Pompeo’s public call to take a harsher stance against Chinese restrictions on religious freedom.

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US-China tech war: can China’s chipmaking drive save it from US technology embargo?

 

Beijing is going all in to back a breakthrough in Chinese semiconductor manufacturing as the nation faces US sanctions on hi-tech goodsBut many newcomers to the industry have little experience and some experts say the ‘whatever it takes’ approach shows tolerance for inefficiency

Cissy Zhou

Cissy Zhou

Published: 11:30pm, 28 Sep, 2020 SCMP

TOP PICKShttps://tpc.googlesyndication.com/safeframe/1-0-37/html/container.htmlEconomyChina is nowhere near meeting Trump trade deal targets, analysis reveals29 Sep 2020EconomyChina’s ‘sea turtles’ return in record numbers into crowded job market21 Sep 2020EconomyChina’s foreign currency saving rates slashed to record lows29 Sep 2020BusinessChina’s EV makers pull out all stops to catch up with industry leader Tesla29 Sep 2020EconomyChina says surging corn prices caused by ‘irrational hoarding’25 Sep 2020BusinessAlibaba to upend China’s real estate sales by putting homes online29 Sep 2020EconomyChina property developer follows Huawei with job cuts in Australia25 Sep 2020EconomyCoronavirus and geopolitical tensions dash Chinese dreams in Malaysia20 Sep 2020EconomyFew US firms fleeing China, despite Trump’s calls to decouple10 Sep 2020EconomyUS mulls ban on Chinese textiles over Xinjiang human rights abuses

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A quick guide to the US-China trade war

16 January 2020, BBC

Containers are unloaded at Qingdao Port

The world’s two largest economies have been locked in a bitter trade battle.

The dispute has seen the US and China impose tariffs on hundreds of billions of dollars worth of one another’s goods.

US President Donald Trump has long accused China of unfair trading practices and intellectual property theft.

In China, there is a perception that America is trying to curb its rise as a global economic power.

Negotiations are ongoing but have proven difficult. In January, the two sides signed a preliminary deal but some of the thorniest issues remain unresolved.

Uncertainties around the trade war have hurt businesses and weighed on the global economy.

What tariffs have been imposed?

Mr Trump’s tariffs policy aims to encourage consumers to buy American products by making imported goods more expensive.

The US has imposed tariffs on more than $360bn (£268bn) of Chinese goods, and China has retaliated with tariffs on more than $110bn of US products.

Washington delivered three rounds of tariffs in 2018, and a fourth one in September last year. The most recent round targeted Chinese imports, from meat to musical instruments, with a 15% duty.

Beijing hit back with tariffs ranging from 5% to 25% on US goods.

What’s next?

Under the so-called “phase one” deal signed in January, China pledged to boost US imports by $200bn above 2017 levels and strengthen intellectual property rules.

The US agreed to halve some of the new tariffs it had imposed on China.

The White House said it will tackle additional issues in a second, “phase two” deal but analysts said they didn’t expect anything concrete anytime soon

Semiconductors are a weapon in the U.S.-China trade war. Can this chipmaker serve both sides?

BY EAMON BARRETT

August 10, 2020 5:30 PM GMT+7

What a difference two months can make. In May, Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest chipmaker, lost the business of Huawei Technologies—its biggest Chinese customer and the source of 13% of its revenue—as a casualty of geopolitical jockeying between superpowers. But TSMC shareholders took the loss in stride. And by late July, after a stumble by rival Intel, TSMC’s stock had risen almost 50% since May, making it one of the world’s 10 most valuable companies

May’s low and July’s high have something in common: They both reflect TSMC’s distinctive role in the global tech economy. Although far from a household name, TSMC controls roughly half of the world’s contract chip manufacturing. Brand-name companies that design their own chips—most notably Apple—rely on TSMC’s world-class production so they don’t have to spend tens of billions to build their own factories. Crack open your iPhone and you’ll find a chip from TSMC. If you could crack open an American guided missile, you’d likely find one there too. Its prowess has elevated TSMC to No. 362 on the Global 500, with $35 billion in revenue. Today it gets 60% of sales from the U.S. and about 20% from mainland China. 

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Techno-nationalism and the US-China tech innovation race

Techno-nationalism: The US-China tech innovation race
New challenges for markets, business and academia

BY ALEX CAPRI
RESEARCH FELLOW, HINRICH FOUNDATION, 20202

Published 03 August 2020

The US-China tech innovation race is challenging the laissez-faire economic model. State interventionism, techno-nationalism and US tech funding initiatives are increasing. This paper outlines the implications for markets, academia, research organizations, and governments of the US-China competition to achieve innovation advantage.

A US-China tech innovation race has sparked a paradigm shift in global trade and commerce that is challenging the long-standing primacy of the world’s open trading system.

Current thinking is tilting towards increased state activism and interventionism, not only in the technology landscape but in many of the industries of the future.

Listen to a discussion with Alex Capri related to this report.

Techno-nationalism

Driving this change is techno-nationalism: a mercantilist-like behavior that links tech innovation and enterprise directly to the national security, economic prosperity and social stability of a nation.

In response to decades of Beijing’s innovation-mercantilism, the US has embarked on its own innovation offensive. Washington’s future tech funding initiatives could surpass the scale of the “moonshot” projects last seen during the space race with the former Soviet Union.

Download “Techno-nationalism: The US-China tech innovation race” by Alex Capri

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Andrew Staples and Alex Capri from the Hinrich Foundation discuss why US tech funding initiatives could surpass the scale of the “moonshot” projects.

AC US China Innovation Race Pre Launch Video With Border

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The innovation race involves a broad range of emerging and foundational technologies that will define the industries of the future, including:

  • Artificial Intelligence (AI) and machine learning
  • Quantum computing and information systems
  • Robotics
  • Energy storage
  • Semiconductors
  • Next generation communication (including 5G and 6G)
  • Hypersonics.

Underlying themes: US techno-nationalism and innovation

As Washington and its allies ramp up techno-nationalist initiatives, core themes will drive the paradigm shift.

  • Public-private partnerships (PPP) – Technology alliances and government-funded initiatives will play an increasingly important role in advancing long-term innovation in the US, the EU and other traditionally open markets.
  • Avoiding the China innovation model – The US and EU innovation agendas will not seek to emulate China’s centralized, authoritarian system of techno-nationalism, but, rather, to turbo-charge markets and leverage entrepreneurial ecosystems, as well as academic and defense establishments.
  • Balancing tensions between MNEs, markets and techno-nationalism – Multinational enterprises (MNEs) will remain the primary drivers of R&D and innovation in free markets and play a vital role in PPP initiatives. They will be pulled into the US-China technology war in a variety of ways which will require a careful balancing of market forces, the interests of MNEs and the needs of state actors.
  • Multilateral technology alliances – US techno-nationalist policy will increasingly align with the security, economic and ideological objectives of the EU and other historic allies. This will produce more cooperation between the US and its partners.

Structure of the report

The report comprises three sections:

Download the report.

Section I – The US-China innovation race: The role of the state

This section examines trends for public-spending in R&D and innovation and reviews a series of techno-nationalist funding initiatives from the US government. 

It analyzes state activism in free markets and why governments are uniquely qualified to promote innovation and “blue-sky” technologies in ways that the private sector cannot.

Finally, Section I spotlights a historic example of techno-nationalism: SEMATECH and the US semiconductor public-private partnership, which led to a technological leapfrog by the US semiconductor industry, past Japan, in the 1990s.

Section II – MNEs, markets and governments: Navigating new complexities

Section II focuses on non-state actors and their increasingly complex role in public-private partnerships. It explores the tensions between open market forces, multinational companies, and techno-nationalist state activism.

To highlight these tensions, the report analyzes Facebook’s “Libra initiative and Beijing’s efforts to reduce dependency on the US dollar via the digital Yuan, and the challenges those create for MNEs. A US semiconductor sector case study illustrates how state activism can have detrimental effects on markets and backfire on the very parties it is looking to protect. 

Section II concludes with an analysis of how open-sourced innovation could be a game-changer in the US-China technology war, particularly regarding future 5G wireless competition.

Section III – Academia and techno-nationalism: Open versus closed systems

Universities, research organizations and academia have become hot zones in the US-China innovation race. Human capital development is key to conducting leading-edge R&D and driving innovation.

Section III looks at how US export controls are affecting R&D activities at universities. It highlights the rules-based frameworks that universities must build to handle increasing government funding into academia.

The section showcases China’s Thousand Talents program and highlights its challenges for public-private partnerships involving academia. It also discusses why the US, in particular, should keep its human capital and innovation pipeline open as it pertains to foreign students, fundamental research programs and, ultimately, why an open system (despite China’s exploitation of it) is better than a closed one.

Finally, section III looks at how some inevitable strategic decoupling between Chinese and US entities will result in the ring-fencing of more “sensitive” R&D activities within the US defense establishment.

Listen to a summary of the report in this podcast featuring Alex Capri and Andrew Staples, Director of Research and Outreach.

Share this podcast TwitterLinkedIn and Facebook.

***

This report is part of a series of Hinrich Foundation papers, authored by Alex Capri, that review the implications of rising US-China techno-nationalism for global trade and international businesses. The two papers focused on Semiconductors at the heart of the US-China tech war and Strategic US-China decoupling in the tech sector.SHARE


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Alex Capri is a Research Fellow at the Hinrich Foundation with over 20 years of experience in value chains, logistics and global trade management, both as an academic and a professional consultant.

China vows to retaliate after U.S. orders closure of its consulate in Houston

Traffic moves against the backdrop of the Houston skyline on Saturday, June 27, 2020. (Callaghan O’hare/Bloomberg)

By Anna Fifield July 22, 2020 at 5:14 p.m. GMT+7 Washington Post

CHANGSHA, China — The United States has ordered China to close its consulate general in Houston “in order to protect American intellectual property and American’s private information,” State Department spokeswoman Morgan Ortagus said Wednesday.

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