China is seeking to become a global “cyber superpower”, not just through digital transformation domestically but also by playing a leading role in the global digital order, according to Peter Raymond, a non-resident senior associate with the economics programme at the Center for Strategic and International Studies (CSIS). Raymond states that China's real ambition is to build a "sinocentric" order in the digital sphere, and highlights the success of Chinese digital platforms such as Tencent, Alibaba and Huawei. However, he also identifies risks, such as domestic crackdowns on digital platforms and the dominance of Western platforms.
The G7 summit held in Japan over the weekend took a unified approach on China's "economic coercion" and reaffirmed commitment to countering Vladimir Putin's aggression in Ukraine. The G7 agreement marks a step forward in providing a coordinated framework to "de-risk" economic relations with China, rather than "decoupling", echoing the calls of European Commission President Ursula von der Leyen. With the G20 summit set to take place in New Delhi later this year, economic ties between developing countries and China and Russia remains a major issue.
Beijing has reportedly launched punitive action against American chipmaker Micron over concerns regarding its products’ network security, thus denting the tech giant’s revenues by a “single-digit percentage”. This retaliation is most likely in response to the extensive chip export controls introduced by Washington last October. Foreign policy experts suggest that the use of tough rhetoric against China may hurt the possibility of cooperation with the west. The US successfully persuaded European countries to take a harder line over China, and an early test will come this week when China’s commerce minister Wang Wentao becomes the first senior official to visit Washington since 2020. Thus, global efforts are being made to build alternative chip supply chains that have the impetus of worsening relations between China and Taiwan, the country that produces more than 60% of the world’s chips and 90% of the most advanced. As the tech battle between the US and China continues, another Big Read suggests the AI revolution is transforming education, forcing schools and universities to restructure how they teach and test students.
China is seeking to become a global “cyber superpower”, not just through digital transformation domestically but also by playing a leading role in the global digital order, according to Peter Raymond, a non-resident senior associate with the economics programme at the Center for Strategic and International Studies (CSIS). Raymond states that China's real ambition is to build a "sinocentric" order in the digital sphere, and highlights the success of Chinese digital platforms such as Tencent, Alibaba and Huawei. However, he also identifies risks, such as domestic crackdowns on digital platforms and the dominance of Western platforms.
JPMorgan Chase is to spend $15.7bn on new initiatives, including investments in technology, marketing and hiring, according to co-head of the bank’s consumer and community division, Marianne Lake. Her unit is set to spend $7.9bn on new investments, which represents an $800m increase from 2022. The announcement comes on the back of a year in which smaller lenders have faced pressure and represents the latest example of the widening gap between small and large US banks. The wider spending will be $2bn more than the bank spent last year.
Asian markets may be vulnerable to a reversal due to the uncertainty surrounding the US debt ceiling standoff. Flash purchasing managers index surveys from Japan and Australia will be released on Tuesday; any sign of deterioration could be an excuse for investors to take profits, particularly in Japan where the Nikkei has had five down days in 29 and has risen 10% in three weeks. Other possible market drivers include a correction in the USD, China's crackdown on Micron and the possibility of a US default.
TikTok sues Montana to overturn first statewide ban on video-sharing app
CBC
23-05-22 21:36
TikTok is suing the state of Montana in response to its first-in-the-US ban on the social video-sharing platform, arguing that it contravenes freedom of speech rights guaranteed by the country’s constitution. The ban has a scheduled start date of 1 January 2024. The suit follows a similar one last week brought by five content creators. The Montana law stemmed from concerns by officials, law enforcement and some lawmakers, who suspect that the Chinese government could employ TikTok to gather information on US citizens or influence public opinion. ByteDance-owned TikTok maintains it has never faced such demands.
TikTok has sued Montana, claiming the state's ban on the social media platform is unconstitutional and violates freedom of speech. Beijing-headquartered ByteDance's video-sharing app argues its users' data is secure and has not and would not be ceded to the Chinese government. The lawsuit follows one filed last week by five TikTok content creators, who said the state had no authority to intervene on national security matters. The law, signed by Montana governor Greg Gianforte last week, takes effect on 1 January 2022. Half of US states have already prohibited TikTok use on government-owned devices.
China has launched Swap Connect to allow more overseas investors access to its interest rate swaps market, hoping it can offset ongoing local debt sales as US rates rise, while also broadening its integration with global finance. Many view the programme as necessary for foreign investors using Hong Kong’s Bond Connect scheme. However, most do not see this offering as a solution to the outflows of Chinese government debt, which have reached RMB903bn ($130bn) since the start of 2018.
The size of China's distant water fishing fleet is increasingly seen by Washington as a national security concern as tensions continue to rise between China and the US. Elizabeth Freund Larus of the Pacific Forum said the fleet was not only depleting fish stocks worldwide but that the dual use of the vessels as both commercial and military vehicles in support of China's navy, coastguard, and maritime police was adding to the fraught relations between the two superpowers. As we have previously covered, US agencies have been instructed by President Biden to combat China's illegal fishing and labour abuses in the market.
China is seeking to become a global “cyber superpower”, not just through digital transformation domestically but also by playing a leading role in the global digital order, according to Peter Raymond, a non-resident senior associate with the economics programme at the Center for Strategic and International Studies (CSIS). Raymond states that China's real ambition is to build a "sinocentric" order in the digital sphere, and highlights the success of Chinese digital platforms such as Tencent, Alibaba and Huawei. However, he also identifies risks, such as domestic crackdowns on digital platforms and the dominance of Western platforms.
The US and Papua New Guinea (PNG) signed a defence pact designed to enable increased military training from the US to PNG. The deal comes amid concerns about China’s increasing influence in the Pacific region. Prime Minister James Marape and US Secretary of State Antony Blinken denied that the agreement was targeted at any specific country. The US and Australia have previously seen the Pacific region as their area of influence, and have sought to balance China’s moves to establish closer ties with island nations in the area.
The Group of Seven's recent communiqué on nuclear disarmament has been interpreted by Russia as an attempt to exert pressure on both Moscow and Beijing. The first ever such statement from the G7 called for greater transparency about nuclear arsenals in Russia and China. Russia's Foreign Ministry believes that the recent rhetoric regarding the size of nuclear arsenals is a Western ploy to exert "psychological and military-political pressure" on the country, with Russia therefore taking the matter seriously and seeing it as part of a wider anti-Russia and anti-China propaganda.
The World Health Organization (WHO) is negotiating a new pandemic accord to supplement existing international health regulations, aiming to strengthen defences against new pathogens following the COVID-19 pandemic. The new accord will replace existing regulations, which have been deemed appropriate for regional epidemics but inadequate for a global pandemic. The EU has led negotiations, with developing countries keen to use the talks to secure better access to vaccines. Member countries hope to agree on a legally binding treaty by May 2024, but with so many countries involved, securing agreement may be tough. Separate talks on reforming the existing 2005 rules are also ongoing.
Efforts by the Group of Seven (G7) to contain China's growing influence with emerging economies in Africa, Asia, Latin America and the Pacific are unlikely to alter the Global South's deepening economic ties with Beijing or encourage the nations to switch sides, according to former Singaporean diplomat and ex-UN Security Council President Kishore Mahbubani. Despite US attempts to rally countries to the Americans' cause, economic development is the prime concern for most state and ASEAN governments, driving many of them to seek close ties with both the US and China and discouraging them from taking sides, said Mahbubani, now a distinguished fellow at the National University of Singapore’s Asia Research Institute. Europe will continue its strong trade ties with China; developing nations do not want to choose sides; Russia and China are not yet a bloc; and the consequence of the US-China trade war could be severe for many of these emerging nations, Mahbubani said.
Germany’s Foreign Minister, Annalena Baerbock, has favoured a pragmatic approach to foreign policy, balancing principles with realpolitik. Praised by political rivals for her performance, Baerbock has taken a strong stance on human rights, environmental matters, and confronting Russia. Active in the fight against climate change, Baerbock attended a conference in Saudi Arabia where she praised the nation’s efforts to solve crises in Yemen and Sudan and extolled its “incredible potential” for renewable energy. However, she also left a copy of her 80-page handbook on feminist foreign policy, as there are still “many things that divide us” in the realm of human rights. Baerbock’s ambition to be chancellor was stalled after embroiling herself in a plagiarism scandal in 2021, but after serving as Green Party leader, she has rebranded herself and risen to become one of Germany’s most popular politicians. Political supporters argue that her pragmatic approach makes Baerbock a perfect fit for her role in Germany’s decentralised coalition government, even if it leads to friction with other parties.
The Group of Seven (G-7) summit in Japan on 28 and 29 May has triggered another round of confrontational statements with China. A G-7 communiqué said that Beijing must do more to stop Russia's invasion of Ukraine, condemned its so-called "malign" trade practices and vowed to "foster resilience to economic coercion" by shielding their economies from having too much exposure to China's thriving market and export industry. However, the communiqué also stated that the group's nations "stand prepared to build constructive and stable relations with China." China summoned the Japanese ambassador on 30 May for a dressing down over what a Chinese diplomat termed the G-7's "bloc confrontation and Cold War mentality". A Chinese Foreign Ministry statement lambasted the G-7's "bullying". It began: "The era when a few developed countries in the West willfully interfered in the internal affairs of other countries and manipulated global affairs is gone forever." The summit is seen as the latest proof of increasing Western concern over China's influence. Public opinion has been hardened by Beijing's continent-wide, ambitious infrastructure projects, its belligerence over self-ruled Taiwan and its alleged failure to condemn Russia's presence in Ukraine.
China's ban of US-based Micron Technology chips in certain sectors has raised concerns for the global chip industry. The move is largely seen as a response to Washington's attempts to restrict China's access to vital technology, and risks causing further geopolitical tensions. While Micron was the first US chipmaker to be affected by China's moves, the ongoing tit-for-tat measures threaten to cause investment issues for all companies in the sector. The industry is one of the most capital-intensive manufacturing sectors, with high construction costs and the expensive purchase of chip manufacturing equipment required to operate.
