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.
A GoFundMe page for the Cho family, who were among eight people killed by a neo-Nazi gunman in Texas earlier this month, raised nearly $2m for their only surviving son. Kyu and Cindy, who were both born in Texas and had moved back home upon starting their family, left behind two sons aged three and six years old respectively. The couple had met in Boston congregation, a church that they both attended, where their supportive relationship had become one of its defining strengths, earning them the title “relationship goals”.
Kyu and Cindy Cho died alongside their son, James, in a recent shopping mall shooting north of Dallas in a case that has disgusted the world. The demented individual who killed the Cho family as well as five others is understood to have a background with white-supremacist and dangerous misogynistic beliefs and writings. The Cho family has set up a fund to support their extended family, following the murder of their children's parents. The family's hope is to allow all of William’s future needs and dreams to be realised and to keep his parents’ legacy alive.
Abu Dhabi organisations have identified $2bn of investment opportunities in South Korea, according to a joint statement by Korea Development Bank and Mubadala Investment Company. The statement followed pledges made by the United Arab Emirates during South Korean President Yoon Suk Yeol's visit to Abu Dhabi in January to invest up to $30bn in sectors including energy and IT.
The EU is continuing with plans to buy hydrogen and critical raw materials en masse after its first round of aggregated gas purchases was oversubscribed. The move reflects the bloc's need to secure supplies for vital products and stabilise prices, with gas prices rocketing after Russia cut pipeline exports following an invasion of Ukraine early in 2022. A number of leading energy firms were involved in the first round of joint gas purchases, but the total amount of gas tendered is only a fraction of the EU’s total use.
South Korea and the European Union have agreed to launch a strategic dialogue between top diplomats in order to develop a security partnership, according to a joint statement released on Monday. The two powers also agreed to cooperate in areas such as climate change, health, and supply chains. South Korean President Yoon Suk Yeol held a summit in Seoul with European Commission President Ursula von der Leyen and European Council President Charles Michel. The move comes amid tension over tensions with Russia and North Korean nuclear threats.
Japan's Prime Minister, Fumio Kishida is expected to call a snap election soon based on his popularity, which surged after he held a successful Group of Seven summit that received an unexpected visit from Ukrainian President Volodymyr Zelenskyy as well as being seen to be handling other global issues. He will capitalize on his support rates which have risen by 9 percentage points in several polls since the G7 summit. Although he said he is not thinking of dissolving parliament now, he may not resist with the favorable conditions stacking up to do so.
While investment in India's commercial property sector is still a fraction of that in other Asian markets, economic reforms mean the country's real estate industry is undergoing a "once-in-a-generation shift and opportunity for companies and investors," writes Nicholas Spiro in the Financial Times. India has a national digital infrastructure underpinned by a biometric identity scheme, a single goods and services tax, and a regulatory regime to encourage real estate investment trusts, among other changes. Furthermore, India is proving to buck global real estate trends; for example, Indian office occupancy rates are higher because of the physical presence needed for tech services employees to do their jobs.
The Chinese government has banned firms that handle critical information from buying microchips made by US-based Micron Technology, on the grounds that its chips pose "relatively serious cybersecurity problems". The move was described as a response to the Biden administration's harsh steps to block Chinese chip makers' access to tools needed to make advanced chips and run powerful artificial intelligence algorithms. Analysts warned the US company could now be cut from future business from Chinese companies.
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.
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.
JPMorgan's CEO, Jamie Dimon, will discuss the bank's future growth plans at its investor day conference on Monday. Although the bank has had a strong year, becoming one of the US's largest deposit holders with over 4,800 branches, the bank must try and maintain its momentum heading forward. Mr. Dimon is not expected to step down in the near future, but potential successors include Marianne Lake and Jennifer Piepszak. Nevertheless, shareholders may ask about Anglo-Irish investigation JPMorgan is embroiled in over its ties to Jeffrey Epstein and a failed $175m acquisition of fintech startup Frank. They could also ask about JPMorgan being barred from buying more lenders after angering Washington with its purchase of First Republic.
President Biden's prediction of a "thaw" in relations with Beijing after what he called the "silly" act of China sending a giant surveillance balloon over the United States has been overshadowed by US plans to support Ukraine with new arms packages, including an avenue to provide F-16 fighter planes. President Biden sees a struggle in China between factions that want to restart the economic relationship with the United States and a far more powerful group that aligns with the country's emphasis on national security over economic growth. Though the G7 have assured China that they are not trying to contain the country, a string of diplomatic wins for the US and losses for China has created a tighter nuclear alliance between the US, Japan, and now South Korea in Beijing's neighbourhood. In response, China accused the G7 of "vilifying and attacking China" and "crudely meddling in China’s domestic affairs."
Administration officials hope that a more regular dialogue with China will eventually be established, although the war in Ukraine will continue to shadow the relationship and the course of the relationship between Moscow and Beijing. Analysts have predicted that while the US’s de-risking strategy may seem like risk reduction for the US and Europe, it could be perceived as nicely worded containment strategy in Beijing.
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.
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.
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.
Singapore is seeing an uptick in sales of semiconductor products to China, as the US-China trade tensions prompt tech firms to diversify geographically. Singapore was the only major supplier to China whose chip exports rose in April, climbing 3.5% compared to March, according to Chinese customs data. Singapore is positioning itself to be a key player in semiconductor assembly and integrated circuit design. Japan and Singapore were the two biggest suppliers of chipmaking equipment to China in April, according to the data.
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.
