China's Cyberspace Administration has banned US semiconductor company Micron in its technology battle with the United States. The state cyber agency claimed that Micron's components posed significant security risks to China's critical information infrastructure supply chain, thereby affecting national security. The US Commerce Department responded by saying that there was no basis in fact for Beijing's claim and that it would continue to try to limit industry disruptions with its allies. Micron has yet to identify the products that have been barred. China has previously blacklisted US technology companies, cut off the flow of processors and barred Americans from helping the Chinese chip industry.
South Korea has been holding talks this week with top European Union (EU) officials at a summit in Seoul, marking 60 years of diplomatic relations between the allies. Talks focused on strengthening trade agreements, as well as North Korea’s nuclear programme and Russia’s war in Ukraine. The three parties agreed to take action against global threats, notably North Korea’s ballistic missile launches and increasing nuclear potential, as well as Russia’s aggression and seizure of Ukrainian territory. The leaders also vowed to address the climate crisis, establishing a “green partnership” between South Korea and the EU.
The outcome of the G7 summit gave a boost of diplomatic and military support for Ukrainian President Volodymyr Zelenskyy. While the commendation of the G7 for Ukraine in the communiqué was familiar, the unofficial message is more complicated: as long as it does not take too long. The best way of maintaining western support for Ukraine is to have significant wartime progress. If Kyiv cannot make progress, the country may find it difficult to receive political and financial support from its backers. Moreover, the mounting pressure on the country is related to the US election in 2024, and President Donald Trump’s emergence as the frontrunner increases fears that the next US president will significantly change policy on Ukraine. Consequently, Vladimir Putin has reason to be optimistic that the Trumpist cavalry might appear over the horizon.
China's ban on Micron Technology chips has drawn attention to the risks facing the global chip industry as trade tensions between China and the US continue to escalate. The move against Micron, the industry leader in the US market, was widely viewed as retaliation for long-standing efforts by Washington to mitigate China's access to technology. While Samsung and SK Hynix may gain from the change, caution could impact supply chain management and investment decisions throughout the global market. Discussions to "de-risk, not decouple" from China are in progress between the mobilised Group of Seven nations concerning their strategy with the ongoing situation.
The Ukrainian city of Bakhmut has been "all but lost" to Russian forces, according to reports. While Ukraine had previously emphasised fierce fighting against the Russians to keep the city, officials have now indicated that the focus is on making it difficult for Russians to hold it. The Russian coalition is engaged in "mopping up" operations to clear the few remaining Ukrainian soldiers. The struggle for the city was one of the war's lengthiest and bloodiest battles, lasting over two years.
Japanese Prime Minister Fumio Kishida may opt for a snap election as he enjoys a rise in popularity, spurred on by recent social and political developments, including the improvement in relations with South Korea, the G7 summit in Hiroshima and Kishida’s nuclear position, according to Professor Hiromi Murakami, from Tokyo Campus of Temple University. The prime minister is basking in a public support rate of 46.6% and Murakami warns that in an unpredictable political landscape, it may be wise to take advantage of this support before it is disrupted by circumstances.
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.
