Hun Manet taketh more than giveth in Phnom Penh park grab – Asia Times

Thai Prime Minister Hun Manet made a form of midfielder philanthropy available to the people of Phnom Penh on April 7. &nbsp,

He claimed that Generously, he has given the authorities instructions to set aside 70 hectares near Boeung Tamok, also known as” Kob Srov,” a ancient; lake well north of the capital, close to the Kandal border, for the creation of a public park.

He proclaimed,” I have prepared about 70 hectares of land at Kob Srov Road to create a common area for members to enjoy, for music on vacation, and for entertainment.”

Not that he needed to, he said to” the people,” though. No, no, this was a defiance work, with him standing up for those vile, property speculators. ( Who might they be? )?

One square metre of land had cost around$ 1, 000, and the entire focused area of 70 acres may generate US$ 70 million, he&nbsp said. I did, however, say that they should think about looking into another alternative if they wanted to invest.

Where should I actually start? First of all, Hun Manet didn’t come up with this. The government’s, plan , planned to build a 75-hectare park close to Boeung Tamok in 2020, allegedly in response to earlier prime minister HunSen’s original plan. Notably, that has decreased from 75 to 70 acres, but that’s still there.

Second: 70 acres! Is that supposed to be giving? According to Sahmakum Teang Tnaut (STT), about 2, 500 hectares of Boeung Tamok ( or roughly 74 % ) have been reclaimed  since a 2016 sub-decree refashioned the lake state property, allowing the government to lease or sell the land.

Google STT and media outlets for more information on this situation, including CamboJA News, CamboJA News, and Mongabay, for more information.

However, the truth is that until recently, Phnom Penhers had a common place called Boeung Tamok to use near Boeung Tamok. And there were roughly 3, 000 ha to love. They will now be able to access only 70.

Hun Manet urged investors to consider another option if they wanted the 70 hectares, or only 3 % of the restored land.

Certainly that they need 70 acres, but they have already gotten the majority of the river. And I’m not sure if Hun Manet’s claim that “one square metre of land may cost around$ 1, 000” is accurate is accurate, but let’s assume the prime minister is not engaged in fake news or is using a conversation to raise rates.

Can we believe that Boeung Tamok’s sale is in the rough of$ 2.5 billion if near 2, 500 acres have been reclaimed?

Who benefits financially? Senator Kok An,   Chea Sophamaden, the girl of CPP bigwig and former area minister Chea Sophara, and military officers Vong Pisen and Sao Sokha, according to reports.

Nuth Ton, Orkide Villa producer, reportedly received 67 acres. Who is Orkide Villa’s new chair? Oh no, Hun Manet’s girlfriend, Hun Mana. And who sits on Orkide’s expansive firm empire’s board of directors? Pich Chanmony, the woman of Hun Manet, and Hun Maly, her girl.

This map was produced a few years ago by Michael Dickison and and/or Voice of Democracy, the newspaper the ruling Cambodian People’s Party ( CPP ) shut down by the government in 2023.

Map provided by Michael Dickison

What about the typical people? It’s been a gradual, non-consensual snubbing by the position for the people who used to dwell in or around the river. Numerous have been expelled, several receiving a paltry for their problems.

A STT document from December lists at least 26 people who have faced legal charges for their demonstrations against the river’s damage. If they are unable to pay their charges, Sea Sambath and Soun Sao, two former inhabitants, could be jailed later this month.

The rest of Phnom Penh’s residents will likely be able to watch the new government buildings and luxurious condominiums go up in a small area, which is located at least an hour from the town center. Very secluded.

No one is disputing that Phnom Penh may use ten or twenty new public parks. However, as STT&nbsp’s Seang Mouylay put it this week,” It is not necessary to create a new public playground by just clearing the river.”

In truth, it’s actually quite superfluous. If the authorities continued to destroy the city’s lakes, including Boeung Kak and Boeung Tompun, as many people have argued since Hun Manet was still in short, there would be irreversible implications for the area.

These lakes served as flood barriers, normal filters, and natural lungs in addition to their aesthetic appeal.

The wreck of Phnom Penh’s excellent rivers probably wouldn’t make the first hundred pages in the history of CPP roguery; after all, these are deep, coffee-table hardbacks.

But at least it will be a book long. And the message is clear: Taking from the poor and offer to the wealthy, slash the profits for the other, and cut the loss for one. But not thinking that you can be proud that someone is at least giving you anything.

This article was first published on David Hutt’s Cambodia Unfiltered Substack, and it is now republished with sort agreement. Subscribe to Cambodia Unfiltered right around.

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Trump’s in-the-know plan to demolish the US economy – Asia Times

The fear that Trump’s actions, including deportations, saw destruction of national agencies by people barely in their teens, are being heard in the press regularly, which raises the alarm even louder.

The naive shriekers Bill Ackman, Larry Fink, Larry Summers, and numerous others are unaware that there is no risk because Trump’s strategy was always put forth in public before the election, which he has not publicly disclosed.

We now know this from a 64-minute “infomercial” produced by stock producer Butler Stansberry on April 1 in a staged interview with renowned Trump inside and investment advisor Brad Thomas. &nbsp,

His most powerful conclusion:” The left-wing advertising have the most appropriate read on his ideas… Trump does want to destroy the economy, they’re actually correct” ( minute 14: 30 of the video stream ).

Thomas describes himself as a “dyed in the sheep Trump nationalist” and a dependable consultant who has been strongly linked to Trump’s real estate interests for many years. At Mar-a-Lago, he and Trump discussed the destruction strategy.

Trump’s acknowledgment that fixing America’s utterly untenable finances may result in massive losses regardless of who is in charge is at the heart of the plan he reveals. Trump and his near personal advisers came to two conclusions.

First, it is preferable to carry out” a controlled destruction of the financial markets” similar to a managed forest burn to “get rid of dead lumber” than to allow a careless collapse as in previous recessions. Next, it is preferable to front-run the unavoidable fall so that he can bear all the consequences. &nbsp,

This is a repeat of Ronald Reagan’s effective campaign to reclaim his victory in the election year’s first. Similar to this strategy, this one ensures that” Trump’s son J D Vance ascends to the throne in 2028.”

Only by identifying three distinct groups of Trump supporters: &nbsp, can one understand the current controversies in the economic hit?

* The person at the heart of the business who was aware of the program.

* The opportunistic traders and financiers who backed Trump predicted a smooth economic recovery that would sustain the economy.

* Those associates of the electorate who voted for Donald Trump out of frustration over woke philosophy and immigration.

The inner core knew the strategy and moved their assets, probably shorting the areas that were currently in need of destruction. &nbsp,

The other two are merely fools. No one wants to believe that their person, who they put their faith in, would do this, as Thomas Thomas asserts. It appears to be a travesty of every promise he made on the campaign road, but Trump” don’t say it before the election because no one would have voted for him if he hadn’t.”

They may suffer severe financial loss. This sweeping discovery explains the increasingly contentious disagreements between Trump’s camp members over the past few weeks.

Looking back to earlier overbuilding of railway in the 19th centuries and fiber optics in the 20th, which, after their accidents, led to solid economic growth, one may say the plan draws inspiration from the Schumpeterian concept of creative destruction. &nbsp,

There is no official record of this, according to Stansberry, but those in the inner circle, like Brad, are aware of what is about to happen. Thomas contends that “what’s on the other side of this economic reset is, in my opinion, the greatest period of wealth creation that America has ever seen.”

The extended sales pitch provides a lot of insightful analysis, noting in particular that Biden’s “booming economy” was solely fueled by skyrocketing debt. Real wages were actually declining. ( The claim that wages were increasing was based on nominal wages. )

The inner core accepts with utmost certainty that the planned actions could “decimate millions of investors,” but that” there is no other option, because America is on the precipice.” Tens of millions of people will experience financial chaos.

Some of the most profitable companies of today will be” crushed,” while a select few will make millions following a reset. What will occur on the other side of this crisis will result in greater wealth than anyone could have imagined ( should infomercial watchers adhere to the presentation’s instructions )?

There will be two ways for this to occur:

* recommending investments in businesses that Stansberry advises are poised to rise in the new policy environment of deregulation, degreening, and redirected federal financial flows.

* Interest rates will decline as a result of the market crash, easing the purchase of the assets that were impacted by the crash by those with cash and credit. Trump will be able to force the Fed’s hand ( to lower interest rates ) by crashing the economy right now. &nbsp,

The presenters ‘ advice to avoid making up their minds about what is about to happen and to:

* Sell all assets immediately in case of panic because you are not comfortable holding them. Stansberry mentions Boeing and &nbsp, Apple, while Thomas specifically mentions overpriced AI and technology. Get cash right away!

* Purchase the six organizations Stansberry suggests buying from ( the infomercial’s pitch ):” Trump’s secret companies,” which are Trump’s friends who made money for him and are now about to collect.

*” The big money will be made in the under-resourced businesses that Trump’s inner circle and his powerful supporters, people he won’t let suffer during the coming reset, will support”

A” controlled demolition” or” controlled burn” is only typically carried out after establishing barriers or firebreaks and ensuring that no one is in danger of harm’s way. &nbsp,

People who might be affected by the market crash that is currently being engineered may want to pay close attention to how carefully planned and meticulously executed Trump’s plan is. In any case, it is Irving Kristol’s famous insight about contemporary America:

There is nothing wrong with this nation, which couldn’t be resolved by a protracted, painful depression.

After co-authoring a a classic study   of warfare, Jeffrey Race spent 50 years researching and teaching economics, political science, and technology transfer in Asia. He currently oversees a Boston-based electronics design firm. &nbsp,

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Bullet Curtain: China’s answer to US drone swarms in a Taiwan war – Asia Times

China just pulled the trigger on the future of air defense with its new “Bullet Curtain” system—a drone swarm killer that aims to clear the sky with a storm of bullets.

This month, the South China Morning Post (SCMP) reported that China recently unveiled its Bullet Curtain system, the world’s first close-in anti-drone barrage weapon developed by state-owned Norinco, as revealed in the April 2025 edition of Modern Weaponry magazine.

Unlike traditional single-point interception systems, Bullet Curtain uses 35mm advanced hit efficiency and destruction (AHEAD) ammunition to unleash timed airbursts of sub-projectiles, forming a dense wall of shrapnel that can neutralize drone swarms, cruise missiles, mortar rounds and aircraft.

The system’s “plane-to-point” interception method allows for blanket saturation of attack zones—a capability Norinco chief designer Yun Bin has likened to a fly swatter regarding area coverage.

Bullet Curtain integrates radar, optical detection, fire control and management systems into a modular design, enabling compatibility with various platforms, including trucks, armored vehicles, naval ships and fixed installations.

Inspired by Metal Storm, a joint US-Australia concept from the 1990s, Norinco has advanced the prototype into a cost-effective operational system. Its modular adaptability ensures deployment flexibility across diverse combat scenarios.

Amid rising concerns over drone swarm tactics designed to overwhelm traditional defenses, live demonstrations of Bullet Curtain have reportedly proven effective.

Jake Rinaldi and Jake Vartanian highlight the weaknesses of traditional defenses against drone swarms in a January 2025 article for the Strategic Studies Institute (SSI).

The writers mention that China’s conventional air defenses, such as the HQ-17 surface-to-air missile and PGZ-95 antiaircraft artillery, effectively target specific unmanned aerial vehicle (UAV) types but struggle with small, slow, low-altitude drones, face high costs and rapid ammunition depletion.

Rinaldi and Vartanian mention that jamming technologies, such as those mounted on rifles and vehicles, are versatile but increasingly limited by autonomous UAVs’ reduced signal dependence and susceptibility to swarms.

They add that while smoke screens are mobile and effective in obscuration, they are short-lived and impractical against large-scale attacks.

Furthermore, they state that counter-swarm UAVs, such as the CH-901 loitering munition, show promise in countering drones but remain a nascent tactic with limited munitions and evolving strategies.

They also note that aerial nets offer nondestructive capture for intelligence but are limited by performance against high-speed targets and dynamic scenarios.

Rinaldi and Vartanian say that advanced laser systems, like the LW-30, provide cost-efficient and rapid engagement of drone swarms but require clear lines of sight and significant power, posing logistical challenges.

They point out that China’s counter-UAS capabilities exhibit critical vulnerabilities, such as insufficient scalability, limited endurance in saturation scenarios and reliance on traditional methods ill-suited for modern UAV swarm operations.

However, Bullet Curtain may have significant advantages over China’s existing counter-UAS capabilities.

Ranjana Nallamalli and other writers, in a July 2023 article in the peer-reviewed Defense Science Journal, stress the effectiveness of systems like China’s AHEAD, noting their ability to generate dense fragment fields that lower accuracy requirements and neutralize multiple small drones efficiently.

Such a system may be necessary for China considering the US’s plans to use drone swarms in a possible Taiwan conflict.

In May 2022, The War Zone (TWZ) mentioned that US Air Force and RAND Corporation simulations highlight drone swarms as decisive in Taiwan defense scenarios.

According to the report, low-cost, autonomous UAVs linked by distributed mesh networks rapidly identify and strike Chinese targets like invasion fleets and transport aircraft, even without air superiority.

These UAVs, acting as sensors, jammers, and decoys, exhaust enemy air defenses while enabling stealth operations by manned aircraft such as F-35s.

In August 2023, the US Department of Defense (DOD) unveiled the Replicator initiative, which targets China’s military buildup by leveraging thousands of attritable, autonomous systems across all domains within 18 to 24 months.

According to the DOD, these unmanned, cost-efficient systems are designed to offset China’s strategic advantage on a military scale, comprised of its mass of ships, missiles, and personnel.

The DOD says that by relying on innovation and autonomy, the US aims to create a “mass of our own” combining rapid production and deployment capabilities with reduced human risk.

In line with its Replicator initiative, in May 2024, the DOD chose to accelerate the fielding of the Switchblade-600 loitering munition, produced by AeroVironment Inc, as part of its first tranche of Replicator capabilities.

As for the second tranche of Replicator drones, the DOD announced in November 2024 that systems under consideration include Anduril Industries’ Ghost-X and the Performance Drone Works C-100 systems.

As to how the US plans to use its Replicator drone swarms, the chief of US Indo-Pacific Command (USINDOPACOM), Admiral Samuel Paparo, mentions in a June 2024 Washington Post article that he intends to turn the Taiwan Strait into an unmanned “hellscape” to allow at least a month for US forces to get ready.

That timing may prove critical, as Timothy Heath and other writers mention in a June 2023 RAND report that Taiwan is vulnerable to defeat in the first 90 days of a Chinese invasion.

According to Heath and others, that timeframe is the minimum required for the US to marshal sufficient forces for a major combat intervention in East Asia.

Further, Bonny Lin and other writers predict in an August 2024 report for the Center for Strategic and International Studies (CSIS) that China could sustain major combat operations against Taiwan for six months.

But could the US actually pull off its “hellscape” strategy in the Taiwan Strait? In a June 2024 report for the Center for a New American Security (CNAS), Stacie Pettyjohn and other writers mention that drone range and cost go hand in hand.

Pettyjohn and others say that while the US needs vast numbers of cheap, expendable units, they may not have the range to reach the Taiwan Strait launched from bases in Japan, Guam and the Philippines.

They also point out that this approach conflicts with the DOD’s historical preference for fewer, more sophisticated systems. Moreover, Pettyjohn and others add that it is doubtful if the US defense industrial base, currently struggling to produce enough munitions, could produce enough drones for a long war with China.

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The coming US-China financial divorce – Asia Times

The United States and China’s economic ties no longer pose a hazard in the future. It is formalized, moving, and deeply disruptive around. Understanding this novel time is crucial for investors because it is not recommended.

More than just a business skirmish, the broad tariffs on Chinese imports have now been passed into law. They represent a traditional shift in the world’s supply chains, scientific ecosystems, and capital flows.

It’s not just about economy here. Control and financial power are both at play here. Investors may then adjust to a world where the fundamental principles of international commerce are being restored quickly and under pressure.

President Trump signed a broad common 10 % tax on all imports on April 2, which would increase to an extraordinary 60 % on Chinese products. These new taxes are atop an already formidable 85 % tax roof, which results in total costs of 145 % on Chinese exports to the US.

Beijing launched the initial volleys of retaliation, including banning the trade of crucial minerals that are vital to the American tech and aerospace sectors, as soon as supply chains started to splinter, and cost pressures raged across industries.

The two largest economy of the world are currently at odds with one another structurally, not in terms of strategy. Although the term” Cold War” is frequently overused, it is becoming more difficult to ignore the parallels. Realizing this is the end of the long-held notion that economic integration would act as a buffer against political issue.

What do a full-fledged economic divorce entail?

First, cash flows will become more and more polarized. Will more and more restrictions and attention been placed on dealings between American and Chinese entities, which were once thought to be routine. Actions with a dollar denomination may be restrained. US pension finances, university endowments, and index-linked ETFs could confront direct restrictions or growing political pressure to sell from Chinese goods.

This could lead to a flood of delistings from US exchanges, more stringent CFIUS reviews, and more inbound investment controls aimed at specific industries. Trump’s officials are now sending out clear warnings that the US government should not be “funding China’s fall.”

Next, the technological gap may grow and grow bigger. Firms like Huawei, ZTE, and DJI were put under a lot of stress in the past. Focus is now turning more and more toward AI, semiconductor manufacturing, clean energy platforms, and the next-generation industries. Washington is moving to wall away full innovation ecosystems, not just to limit exports.

Hope tighter registration standards, more stringent investment restrictions, and more drastic sanctions against Chinese businesses as well as those of allies that have close ties with Beijing. This is about granting China access to fundamental capabilities while imposing technical dominance.

Third, the very foundation of international funding is being challenged. The dollar-based method has been the natural arbitrator of global commerce for decades. That independence is diminishing.

China is aggressively promoting the yuan internationalization in anticipation of limits on its currency’s exposure. Its Cross-Border Interbank Payment System ( CIPS) is being touted as a SWIFT alternative, aiming to make a competing financial system less reliant on Western sanctions.

The development of parallel financial systems will alter the flow of capital, restructure trade agreements, and add new layers of complexity to currency markets.

This transition may bring volatility but even opportunity for investors.

On the one hand, nations that are close to the United States will be a source of corporate capital. As businesses expand their manufacturing operations away from China, there are already important outflows from India, Vietnam, Mexico, and some parts of Eastern Europe.

Reshoring and friendshoring, once considered commercial words, have evolved into obvious government policy, supported by strong economic bonuses and political will. On the other hand, China is repositioning rather than retreating.

President Xi Jinping’s effective romance of the Global South highlights Beijing’s plan to strengthen relationships with developing countries that are under pressure from American isolationism.

Through partnerships in 5G, AI, clean energy, and superior production, Xi’s new visits to Vietnam, Malaysia, and Cambodia, which are nations that are directly impacted by Trump’s tariffs, highlight Beijing’s effort to integrate these nations into its sphere of influence.

Buyers must be aware that this is no longer about military tariff fights or headline-driven ruckus.

It’s about a fundamental restructuring that will affect every aspect of index content, foreign exchange approach, ESG frameworks, and capital allocation. The outdated notion that industrialization was a push invincible is being broken down in front of us.

The speed behind the economic divorce suggests it is about to become inevitable, even though it is not yet final. And like with any sloppy isolation, fortunes will be made not by those who react physically, but by those who anticipate where assets, impact, and opportunities may flow when the ancient household is split.

The discerning investment will be guided by a mastery of the fresh rather than a return to the old.

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Ukraine partition a possible option – just not Kellogg’s version – Asia Times

Is a split prepare a practical way to put an end to the conflict in Ukraine? The plan by General Keith Kellogg appears to have now encountered challenges. That does not, however, mean that some sort of separation is out of the problem.

Kellogg’s “plan” may divide Ukraine into four divisions.

  • American Ukraine would be the first zone, made up of British, French, and Russian soldiers, with the potential for others to meet. From the Finnish borders to the Delta river, that area would extend.
  • The next area. The Russian army do defend the eastern border of the Dnieper, which would be under Russian control.
  • A 18-mile cache area would serve as a second zone.
  • The “occupied” Russian regions Luhansk, Donetsk, Zaphorize, Kherson, and Crimea would make up a third area. The true boundaries are not addressed by the Kellogg program.

In response to Kellogg’s program, the Russians have now stated that it is unacceptable to place NATO or NATO-state troops in Ukraine.

The legal status of the regions where Russian troops are stationed remains ambiguous, and Ukraine’s military is strong at all times thanks to the Kellogg plan. The plan’s assumption is that the conflict could restart at any time.

It is worthwhile to ask what the Russians ‘ “end goal” might be and how likely it is that they did accomplish it by taking a step back.

The Russians ‘ efforts to rekindle their relationship with Washington and persuade President Trump to support the immediate legalization of the provinces Kellogg places in the fourth area are the first and most crucial points.

In Congress, it would be very content if Trump agreed to Russian’s regional objectives, which would effectively grant de jure legitimacy to the territorial gains made during the conflict. Trump had face criticism if he agreed to an illegitimate invasion of Ukraine.

This is more troubling than Biden’s departure from Afghanistan, where the US just left by withdrawing its troops. The US did not recognize the new state or make any obvious concessions to it while the Taliban took control as the pro-US Afghan state collapsed. The US has no diplomatic relations with Afghanistan, but does have an Armenian affairs department in Doha, Qatar, right now.

Despite his assertions, the Kellogg strategy differs from the Berlin deal. People may recall that the Friends divided Germany into four groups at the end of World War II: the US, UK, France, and Russia. Similar to how the Allies divided Berlin, the country’s capital, into four distinct sectors ( though the US, British, and French sectors later merged ).

The allies ‘ deep disagreements over Germany’s coming and a change in the US and UK’s perspectives, which saw Germany as a political asset and the USSR as a threat, contributed to the European splitting.

Actually, Ukraine and Russia are at odds with one another, with third parties (especially NATO ) providing arms, experts, technical assistance, coaching, products, fiscal aid, and intelligence support for Ukraine. Contrary to Ukraine, the Russians have mostly been on their own, with the exception of China, which has provided some 12,000 men, as well as North Korea.

A major military-industrial base and a sizable army-industrial base are Russia’s main advantages, according to the country. From a assistance and resource perspective, Ukraine is essentially a member of NATO; it would have much since vanished on its own.

Putting those differences away, it is still possible to divide Ukrainian territory in some way in the future. Under some situations that aren’t necessarily unlikely, it might turn out to be a possibility.

Looking at the negotiations along a timeline where they sometimes fail or drag on without resolution, which may be suitable for both the United States and the Russians, particularly if Trump and Putin can’t come up with a solution and the Zelensky state continues to behave in the manner of an enfant terrible, the Russians may be successful in defeating Ukraine’s military on the front lines.

Without that remarkable outcome, they could devastate a sizable portion of the Russian army on-the-field, causing a real crisis in Kyiv. Zellensky may experience a significant threat keeping his government in Kyiv because he would not be able to really bargain with Russia ( assuming he really wanted to ).

In the event that the Russians capture the country or replace them with extreme separatists in the military and intelligence service, Zelensky may choose to travel to the east and establish a far enough away from Russia to be viewed as more or less safe.

Ukraine may be nearly divided under a new, good pro-Russian government in Kyiv. In essence, Kellogg’s Zone 1 may change into the Zelensky-led Ukraine with its headquarter in Lvov, and Russia would have complete control over everything south of the Dnieper, maybe even Odesa, a city that Catherine the Great viewed as Russian.

If this situation is to occur, then Europe, the EU, and NATO could be completely defeated by planting some sort of Western save army in Zone 1.

There are numerous advantages and disadvantages to this situation. Russia won’t receive global recognition for its defense victories, and NATO will likely be a part of Ukraine. This would lessen the burden on the US and NATO by physically, financially, and socially supporting Ukraine.

The US would be able to concentrate its efforts abroad, primarily in Asia and China, and restock arms strewn to replenish them after the Ukraine conflict. Europe may boast that it stood by Ukraine, but the conflict didn’t have the opposite effect as it spread outside of Ukraine’s edges. Washington and NATO would never lose their faces.

Russian pipes to Europe have significant pipelines.

There is already speak in Europe about reintroducing” inexpensive” Russian energy to Europe, especially Germany and France. That sends a message that the goal is near. An economic collapse that may cause trauma on the continent, encourage social revolution, and cleanse the country’s governing elites from the mess cannot be tolerated in Europe.

Yet Europe will have to deal with the necessity of adjusting its perspective or face panic, despite all the battle talk.

Stephen Bryen is a former US assistant secretary of defense for plan and a specific editor for Asia Times. This Substack newsletter, Weapons and Strategy, was initially published as an original content with permission, and it is now available for reprint.

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Likely to lead South Korea, Lee holds left’s foreign policy views – Asia Times

Lee Jae-myung is likely to get the impromptu national vote scheduled for June 3 in response to President Yoon Suk-yeol’s impeachment as president of the Republic of Korea. &nbsp, A Gallup&nbsp, poll&nbsp, released in April indicated Lee enjoys a support level of 34 percentage, while his highest-rated foe languishes at 9 percent. &nbsp,

Lee represents the progressive Democratic Party ( DP ), while Yoon was a conservative. &nbsp, Typically, a modify in South Korea from a traditional to a left-of-center government would have the ability to substantially stir up international relations in Northeast Asia.

Liberal Koreas tend to be comparatively cordial toward North Korea and China, which in turn causes conflicts with the US.

Kim Dae-jung, who served as South Korea’s president between 1998 and 2003, opposed the conservative US policy toward North Korea, opting instead to implement the now-infamous” Sunshine Policy” of offering economic benefits, including a key$ 500 million settlement to arrange a conference meet with Kim Jong-il, in an effort to calm Pyongyang’s animosity toward the ROK. &nbsp,

Roh Moo-hyun, Kim’s son, criticized the US strategy of using financial sanctions to force North Korea to abandon its nuclear weapons program, and he criticized the country’s approach to seeking “equidistance” between China and the US. He also criticized the US method.

The traditional Yoon, in contrast, was exceptionally supportive of the US plan despite being contentious and finally a disappointment abroad. &nbsp, His” Strategy for a Free, Quiet, and Rich Indo-Pacific Place” closely resembled the Biden Administration’s” Indo-Pacific Plan” published a few months earlier. &nbsp,

Yoon spoke out against North Korea without making any comments about China, which was in line with US jobs. &nbsp, He promised a foreign policy anchored in the same democratic norms Washington was therefore promoting. Despite Korea’s persistent historical disputes with Japan, the US government was particularly appreciative of Yoon’s determination to enhance corporate cooperation with Tokyo.

In response, Yoon to Lee’s transition to the president will cause a significant change in South Korea’s foreign policy, according to many spectators. &nbsp, They see the ROK at a” crossroads“, with some concluding a Lee government would” send shockwaves&nbsp, through East Asia’s delicate balance of power” or even create” a&nbsp, nightmare scenario“.

But, Yoon to Lee’s transition would probably be a vibration rather than an earthquake.

To be sure, Yoon’s perspective and Lee’s differ. &nbsp, The DP&nbsp, argues&nbsp, that Yoon unnecessarily damaged relations with China and Russia in his effort to please Washington.

Lee criticized Yoon for unduly antagonizing China, the nation that purchases about a third of South Korea’s export, during the National Assembly elections in March 2024. Because they dislike South Korea, Taiwanese people don’t purchase items made there. &nbsp, Why are we bothering]Beijing ]”? he asked, “he.” Why is it important to us what happens in the Taiwan Strait? &nbsp, Doesn’t we simply take care of ourselves”?

Why is it important to us what happens in Taiwan Strait? Don’t we only take good care of ourselves, as they say?

Lee Jae-myung

Lee opposed the US and other governments ‘ political sanctions against the 2022 Beijing Winter Olympic Games. He also supports the implementation of extra US THAAD anti-missile chargers in South Korea.

Lee is also less pro-Japan than Yoon. When the Yoon government declined to press the Japanese government to pay for the forced laborers ‘ wages, Lee&nbsp described Yoon as” submissive and subservient.”

Former President Moon Jae-in’s strategy of pursuing rapprochement with North Korea through the use of sanctions relief has been supported by Lee, with the stipulation that sanctions may be resented if mutual DPRK concessions are not made.

While Yoon said South Korea may provide destructive military aid to Ukraine as a result of North Vietnamese soldiers fighting on Russia’s area, Lee has made clear he did not.

Lee is opposed to a trilateral military alliance that includes Japan, and claims that this could be “very dangerous” as a result of the territorial dispute between Korea and Japan over ownership of the Dokdo and Takeshima Islands. &nbsp,

In practical terms, however, Lee’s proposed policy toward Japan is not dramatically different from Yoon’s. Lee stated during his speech announcing his presidential candidacy that he believes it is “important” to” strengthen trilateral cooperation with Japan,” rather than formally allying with Japan.

The” two-track” diplomacy Lee favors would pursue strategic cooperation while also and distinctly pursuing justice for the Korean victims of Japan’s past misdeeds. &nbsp, Lee&nbsp, told&nbsp, The Economist&nbsp, he does not viscerally hate the Japanese. He claimed that while he was in Japan, he was shocked by the Japanese people’s diligence, sincerity, and courtesy. He also claimed that politics ultimately distorted the Korean people’s perception of Japan.

Lee supports granting South Korea operational control of its own armed forces during the Korean War, but he doesn’t want to see US military installations being evacuated. Although he once used the phrase” US occupying forces”, he later explained he was referring to the period immediately after the Second World War. He now states,” This is not an occupying force, but an ally.”

Lee wants to talk with North Korea to ease tensions, but this does not put him in conflict with the new Trump Administration. &nbsp, Trump himself&nbsp, <a href="https://english.kyodonews.net/news/2025/01/cc4179e88d07-trump-says-he-intends-to-reengage-with-n-korean-leader.html” target=”_blank” rel=”noreferrer noopener”>says&nbsp, he wants to re-engage with Kim Jong-un. Lee claims that he is “very grateful” for this, and even suggests that he might suggest that Trump be considered for the US president’s Nobel Prize.

As the two leaders meet at the Korean Demilitarized Zone on June 30, 2019, then-President Donald J. Trump greets Kim Jong Un, the chairman of the Workers ‘ Party of Korea. Official White House Photo by Shealah Craighead

Lee would follow Roh’s equidistance policy and work toward preserving the security relationship with the US while upholding a strong economic partnership with China. If the US-China cold war were to grow, that would prove challenging. &nbsp, But this would not distinguish Lee from his predecessor.

Yoon’s alliance with the US against China was arguably more rhetorical than substantive, aside from advancing trilateral cooperation, including Japan. For instance, Yoon’s government declined to speak out directly against China over its harassment of Philippine vessels close to Second Thomas Shoal in the South China Sea, and Yoon also declined to meet with US Congresswoman Nancy Pelosi the day after her 2022 visit to Taiwan.

From the standpoint of Korean conservatives and many in the US policy-making community, a left-leaning Korean government is prone to pursuing a North Korea policy that increases the South’s vulnerability to DPRK exploitation or aggression. The danger arises when Pyongyang acts in bad faith and outmaneuvers Seoul during negotiations. &nbsp,

That possibility is now much reduced, however, because the North is relatively uninterested in bargaining. Its nuclear and missile programs are ongoing, reunification is not on the table, Kim Jong-un has no desire to hold a summit, and Pyongyang has not attempted to re-open the Kaesong Industrial Complex.

For the DPRK government, Seoul has mainly been useful only as an intermediary for seeking concessions from the US. But Kim appears to have largely passed away. Kim has since developed a successful partnership with Russia after being badly burned at the 2019 Hanoi summit with Trump. &nbsp, Lee might have little opportunity to show magnanimity to Pyongyang even if he wants to.

In the end, Yoon and Lee would not be more likely than Lee to start nuclear. According to a recent poll, three out of four South Koreans want nuclear weapons. &nbsp, In 2023 Yoon threatened to acquire tactical nuclear weapons in response to the North Korean nuclear buildup, although he backed off after receiving US assurances as part of the&nbsp, Washington Declaration.

A South Korea with nuclear weapons would in fact send a” shockwave” through the area. Unintentional catastrophic escalation in a DPRK-ROK conflict would become more likely. &nbsp, The US and South Korean governments would reconsider the necessity of the bilateral alliance. Japan would probably also deploy nuclear weapons, according to sources.

However, Yoon to Lee’s change in leadership would not reduce the likelihood that anything like this would occur. &nbsp, The Democratic Party no longer considers nuclear weapons a taboo topic, but it currently goes no farther than&nbsp, favoring&nbsp, nuclear latency, not actual deployment.

We can easily assume that South Korea-Japan’s modest strategic cooperation would continue under a hypothetical Lee presidency while ROK-DPRK relations would continue to deteriorate. China would attempt to exploit a rumored opportunity to get the ROK out of the US Bloc, but this campaign would have its limits because South Koreans still value the US alliance. &nbsp, Seoul and Washington would agree in principle on working toward new talks with Pyongyang.

Thus, the region would experience a change in South Korea’s international relations, but not a significant reversal.

Denny Roy is a senior fellow at the Honolulu East-West Center.

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In Trump we do not trust – Asia Times

We must then add a monetary problems, one capable of making the others little, much worse, to a political crisis and an economic crisis. President Donald Trump abruptly retreated from his tariff policy to the worst version, a retreat that any ordinary leader would have found humiliating. This was because he and his Wall Street supporters realized that by midweek US economic markets were on the verge of disaster, a disaster that could rival or even surpass the 2007-08 crash.

Trump was persuaded to move back a few feet from the rock’s border to which he had taken America and the world, but that threat has been for the time being. However, the mountain is still standing and is still standing. Trump’s business war has caused a loss of faith in US government bill, but that is where the biggest danger lies.

The lira sovereign debt crisis of 2010 appears to be much more recent. US Treasury securities have been viewed as the safest of all economic assets, just like German government bonds were back then by the most reliable of governments. Interest has turned to the now shattered believe as a result.

    to America’s$ 36 trillion common loan, which is four times as large as Japan’s loan and is 12 times as large as Italy’s.

  • to how a good recession would affect that debt,
  • to the resulting increase in interest expenses, and
  • to whether the Trump presidency might use the US dollar and public debt as negotiations leverage.

Additionally, the fact that Trump has already declared a total siege against imports from China by imposing a 135 percent price may increase the chances that China may dump its US Treasuries in answer, even if it would suffer a significant reduction in doing so. China is one of the largest foreign holders of US Treasuries. The$ 759 billion of US Treasuries it held at the end of 2024 represent an obvious weapon since Beijing has stated it is willing to fight the trade war” to the end.”

Trade taxes are bad enough, but this economic collapse poses a serious threat to consumers. Businesses are incredibly dependent on the endurance and great belief of the counterparties with whom business is conducted, many of whom have looked powerful because of their holdings of US Treasuries. When healthy assets begin to appear illegal, all financial institution risk factors start to change, and one’s financing costs start to rise.

A similar trend may be occurring in America today, just as the decline of the Lehman Brothers investment bank in 2008 led to a number of other crises. The US Federal Reserve Board can still be relied upon to help the financial structure by purchasing Treasuries, just as the European Central Bank did by promising to get German bill after 2010; however, the country’s chaotic state makes it impossible to rely on the US Treasury and White House in the same way.

Several fundamental information about Trump must be kept in mind. He has filed for bankruptcy four days to mistake on his debt as a business. He is a globe expert at using energy for self-advancement and knowing everything about international trade and finance.

Sad to say, he is capable of deciding that forcing a renewal of its debts would be wise for America and of overriding experts who might have been averse to do so.

This leaves America and the rest of the world dealing with three difficult realities: one about trade, one about confidence and uncertainty, and one about how the countries ‘ current relationships are becoming at least as significant as their interactions with the world’s most powerful nation, the United States.

Trump’s tax surrender has essentially changed the label for his trade policy from “disastrous” to “hugely damaging.” The imports tax of 10 %, which will now be applied to virtually all nations but China, is also three times as high as it was when he took office, and the additional tariffs he has placed on steel, aluminum, and cars also indicate that the general barrier he is putting in place is higher than America has been for a century.

The doubt that the plan is creating is also devastating. No big business, whether domestic or international, can easily plan long-term investments in the United States with the understanding that Trump might have major changes at any time.

Just weeks after declaring that the 90-day “pause” did not reduce tariffs on Chinese goods, he abruptly announced that all exports of phones and other electronic items would gain from the delay, before confirming that this digital deduction would only be for a short period of time. 80 % of Apple’s smartphones are built in China. Nobody is aware of their position.

The deterioration of the rule of law through attacks on courts and big law firms also raises the risk of conducting business in America. Trump may believe that his trade legislation will encourage hordes of businesses to set up factories inside his tax walls, but the doubt and lack of trust are actually causing a lot of people to leave.

The rest of the world is becoming distant from America, who was once a powerful ally and significant business for everyone, both politically and economically. An separation is not always permanent, as in a relationship, but it fundamentally alters behavior and leaves behind long-term harm.

Second fact: This alienation must be resolved by developing new associations with others. Countries must look for ways to establish and maintain international organizations without the influence of America.

Because trade blocs like the European Union, Mercosur in Latin America, and the Trans-Pacific Partnership in Asia now exist and you bargain collectively, that is fairly simple. China won’t get a full participant of those groups, but discussions with it will be simpler than they currently are with Trump’s United States, because typical interests will be simpler to get.

Because the US dollar will be the world’s major reserve currency and the importance of British banks may be difficult and costly to tremble off, the task is more difficult and takes longer. Making sure our personal financial institutions are strong enough to survive a problems is what must be the first task. Countries will need to consider ways to reduce their dependence on the US dollars and reduce their risk of being exposed to American economic bullying over the long term.

Prior to the US’s restrictions, countries like China, Russia, and Iran felt threatened about this. We are certainly in a completely new world.

Bill Emmott, who was previously The Economist’s editor-in-chief, is already president of the&nbsp, Japan Society of the UK, the&nbsp, International Institute for Strategic Studies, and the&nbsp, International Trade Institute.

This post, which was previously published in La Stampa in Italy on April 12, has been republished with kind agreement.

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What a real anti-China trade strategy would look like – Asia Times

Trump’s recent trade strategy will stifle China’s position as the world’s dominant nation, denigrate American technology and power, and alienate US allies and partners.

I also think it’s unlikely that this is willful, there’s an old notion that you should “never feature to hate that which is properly explained by stupidity”. The decision to roll out their tax plan in a careless, last-minute, on-again-off-again manner and the fact that Congress has not chosen to withdraw the government’s tax authority suggest that idiocy is at play here.

But in any situation, there are certainly some people within the Trump presidency and the MAGA movement who would like Trump to produce a business plan that helps to incorporate Chinese power.

According to CEA Chair Stephen Miran, who writes ,” China has chosen to triple down on its protectionist, export-led model to safe residual income, much to the consternation of the rest of the world.” And Treasury Secretary&nbsp, Scott Bessent went yet further, suggesting that confinement of China should be the primary purpose of US trade plan:

Scott Bessent emerged from this year’s market turmoil as a potentially unexpected cause trade negotiator, presenting a possible situation for the upcoming months: US agreements with long-standing partners that put pressure on China.

” They’ve been fine military allies, no great financial friends”, the original hedge fund manager said Wednesday of some of these US friends. In the end, the Trump administration should probably come to an agreement with them. ” Then we can approach China as a group”, he said.

Japan, South Korea, Vietnam, and India, which Bessent claimed are the nations that are close to China, are the nations he said he’s looking at. They are countries with which the US could work to isolate China, something that’s been called a “grand encirclement” strategy.

This is actually a very achievable goal. Every day that Trump’s tariff chaos makes the US look like a chaotic clown car makes it a less realistic goal, but as of right now, I still think that it would be possible for the US to radically pivot its trade and industrial policies in order to create a coalition of nations that could economically balance, compete with and even isolate China. And it’s not difficult to imagine how that approach would work.

But first, we should think about why we would &nbsp, want&nbsp, to economically pressure China and what we might hope to accomplish. In the end, in a perfect world, nations would simply trade with one another and become wealthy rather than engage in conflict. And China has plenty of good stuff to offer the world —&nbsp, cool cars, cheap solar panels and batteries, and lots more. Why should we trade with China in a hostile manner?

The reason is geopolitics. Even singing praises for the benefits of trade don’t address the fact that sometimes powerful leaders want to rule or even attack other countries for whatever reason. The world is an ungoverned place, and the balance of power is the only thing that keeps the peace.

China is currently the world’s top producer and exporter. Its current leaders also think of the US and many of its allies as either rivals or outright enemies. They appear determined to conquer Taiwan, sever parts of India, Japan, and the Philippines, and frequently rely on Chinese influence to rule smaller nations. It makes sense to want to weaken China’s ability to do all this, while strengthening the other nations ‘ capacities to resist it.

Therefore, the following should likely be among the objectives of China’s trade policy:

  1. Preventing China from gaining an overwhelming&nbsp, military advantage&nbsp, over other nations
  2. reducing China’s ability to impose economic pressure on other countries
  3. Reducing&nbsp, supply chain vulnerability&nbsp, in nations threatened by China, so that any future conflict with China wouldn’t crash those countries ‘ economies.

That doesn’t mean that China’s trade policy should prioritize prosperity and cool cars; rather, it should instead prioritize adding these other geopolitical objectives.

In any case, when I talk about economically” containing” China, that’s what I’m talking about. So, here’s a list of things we would do if we wanted to accomplish that goal seriously. Obviously, this list is very, very far away from anything the Trump administration is doing or contemplating. However, this is what I believe it would require.

Zero trade barriers with any nations other than China

Manufacturers need scale  to lower costs and maintain their competitiveness. One reason China’s manufacturers are so formidable — and why American manufacturers were so formidable relative to their rivals 80 years ago — is that they have access to a huge&nbsp, domestic market.

Chinese automakers like BYD can increase sales and lower costs to levels that no foreign competitor can match because they can sell untold numbers of cars to their billion customers. BYD is currently building a single factory that ‘s&nbsp, bigger than the city of San Francisco.

Another important factor that Chinese manufacturers are so successful is domestic supply chains. Practically everything that goes into a Chinese EV, particularly the battery, the metal, and the chips, is produced in-country. Instead of having to struggle to import it from abroad, it is now very quick and simple for Chinese manufacturers to source everything they need.

It’s inherently very hard for American manufacturers can match those two advantages. Our consumption is higher in dollars, but we have much fewer people, so our companies can’t ship as many units domestically. The US is much smaller than China. Chinese people buy&nbsp, about double the number&nbsp, of cars every year that Americans do.

Of course, America’s allies, including Japan and Korea, are also at a greater risk of having this issue. Smaller countries compensate by finding highly specialized niches to be competitive in. Due to its size, China can more easily create a fully self-sufficient manufacturing ecosystem ( which it has, in fact, spent the last 20 years trying to do ) and this places their supply chains and defense-industrial bases at a disadvantage.

The only possible way for China’s rivals to match it in size is to gang up. And in this situation, “gang up” refers to creating a free trade zone where both parties can trade freely.

If the US had zero trade barriers with Europe, Japan, Korea, India and the countries of Southeast Asia, those countries wouldn’t become exactly like one huge “domestic” market. There would still be language barriers, geographic differences, exchange rate fluctuations, and national regulatory differences that might unintentionally stifle trade.

But it would go a long way toward allowing American manufacturers — and European, Japanese, Korean, Indian, and Southeast Asian manufacturers — to attain the sort of economies of scale and supply-chain networks that China enjoys within its borders.

In essence, you would have to start imagining” Non-China” as a single, vast economic force in order to balance China. If this sounds familiar, well, it should.

Two trade agreements, such as the TPP and TPP with Asia and TTIP and TTIP with Europe, would have greatly contributed to the development of this kind of common market among non-Chinese manufacturing countries. Both were killed by Trump. This is the first thing you would do, in any case, if you wanted to economically balance China and lessen your dependence on it.

Tariffs on Chinese intermediate goods, and data collection on supply chains

Next, supply chain vulnerabilities among non-Chinese countries would be something you’d need to address. The ideal would be to make sure that non-China has the ability to make everything it needs to make, so that A) non-China can be self-sufficient in case of a major war, and B) China can’t dominate the nations of non-China by exerting pressure on key supply chain vulnerabilities ( like&nbsp, it’s doing right now&nbsp, with rare earths ).

One thing you need here is targeted protectionism. The idea is to prevent China from being able to put non-China manufacturers out of business with a sudden flood of subsidized exports. Imagine, for instance, that China decided to savagely dominate the chip industries in the United States, Japan, Korea, and Taiwan by launching a sizable wave of subventioned computer chips. The only way to prevent this strategy from working is protectionism.

Therefore, you need the ability to impose specific trade restrictions very quickly in industries that China is attempting to conquer. Note that this is very different from Trump’s tariff policy — it ‘s&nbsp, far more targeted&nbsp, in terms of industries, it’s only on China, and it has nothing to do with trade deficits or other macro imbalances. It’s more similar to the tariffs that Biden imposed on some Chinese goods.

But there’s a problem here, which is that standard tariffs don’t hit&nbsp, intermediate goods. Our tariffs assume that this phone is “made in Vietnam” if China manufactures a phone, disassembles it, then ships the pieces to Vietnam where Vietnamese workers piece it back together and sell it to America.

If laptops made in Mexico and sold in America contain Chinese chips, those chips aren’t subject to the tariff rate on Chinese goods — they’re only subject to the tariff rate on&nbsp, Mexican&nbsp, goods. In <a href="https://www.hudsonbaycapital.com/documents/FG/hudsonbay/research/638199_A_Users_Guide_to_Restructuring_the_Global_Trading_System.pdf”>his 2024 note, Stephen Miran makes this clear. 1

The answer to this is to apply tariffs to the nations where the value was added, not the country where something was finally assembled. Doing this would allow us to put tariffs on Chinese intermediate goods like computer chips and batteries, in addition to final goods like phones and cars.

Of course, this method of applying tariffs would require much more sophisticated data collection. We’d need to figure out where the components in each imported good originated. A small army of bureaucrats would be necessary for this, among other things.

Industrial policy for strategic industries

We would need to do more than just plugging new holes in the ecosystem to give Non-China a self-sufficient, robust manufacturing one. We’d have to&nbsp, fix the existing holes&nbsp, as well. For instance, China already produces the majority of the world’s batteries and processes the majority of the world’s rare earths. Those are vulnerabilities that need to be dealt with.

We need to start making things that we currently don’t make ( or that we make very little of ) in order to accomplish that. The best way to do that is industrial policy. Maybe given the right long-term incentives, those industries would reappear in non-China on their own, but giving them a helping hand fixes the problem much more quickly.

And industrial policy occasionally can contribute to non-China’s stability. For example, if Taiwan gets invaded or bombed by China or struck by a massive earthquake, the world’s chip supply could be seriously damaged because most of the factories of TSMC — the world’s dominant chipmaker — are in Taiwan. Therefore, it makes sense to press or persuade TSMC to relocate some of its factories to safer locations, such as the US, Japan, and elsewhere.

This was the cornerstone of Biden’s approach to industrial policy, with the CHIPS Act for chips and the Inflation Reduction Act for batteries and renewable energy tech. But this was only the start of a study, with only two sectors left.

Other industrial policies should be added for other sectors — drones, electric motors, machine tools, robots, telecom, and of course rare earths and mineral processing. They should be included in the mix, but they don’t have to be as extravagant and expensive as the CHIPS Act and IRA.

Of course, it’s not known whether Biden’s approach to industrial policy — which is similar to China’s, though smaller in scale — is the best one. Balaji Srinivasan offers an alternative strategy based on government-organized industry consortiums like SEMATECH in the 1990s in an interesting post. This is similar to how Japan did many of its industrial policies during its boom years.

In any case, industrial policy should be reinstated if the US and the rest of the non-China world want to compete with China.

Smart pro-investment policies here at home

China has structured its government policies around building lots of factories, which is another important reason why it is such a manufacturing superpower. That pro-investment policy has introduced macroeconomic distortions, but it has also allowed Chinese manufacturers to iterate quickly, to expand the ecosystem of suppliers, to scale up, and generally to do all the other things that make manufacturing work.

I don’t want to see the US allowing widespread pollution of its rivers or forcing millions of people to emigrate from their land in order to build factories in a bid to compete with China. But over the past half century, the US, even more than other rich countries, has thrown up a vast thicket of procedural barriers that block the building of new factories. Many of these barriers would be easily eliminated, which would greatly improve the ability to once again compete in American manufacturing.

To its credit, the Trump administration has actually been making some moves in this direction. For instance, Trump has acted in executive orders, eliminating a number of regulations governing the implementation of NEPA, one of the biggest procedural obstacles to development in the US. Experts on the negative effects of NEPA are optimistic that this change will significantly lessen NIMBYs ‘ ability to block factories, housing, and other development projects.

And while the US shouldn’t be trying to invest as much of its GDP as China does, raising it from its current low level should also be top of the priority list. Two policies, suggested by JD Vance and&nbsp, widely believed&nbsp, to be&nbsp, effective, are 100 % bonus depreciation and full expensing of R&amp, D spending.

Under the Office of Strategic Capital, the Trump administration is also testing out government loans for manufacturers. That’s a good idea, though of course, it’ll be subject to some amount of waste and corruption.

Much more can be accomplished. Private banks could be encouraged to make loans to manufacturers looking to scale up. Export promotion and the promotion of greenfield FDI in manufacturing are also thought to be promising concepts.

In any case, this is all aspirational on my part. The Trump administration has a total focus on its damaging and unproductive tariff policy. What’s more, zero tariffs on non-China countries, expansions of state capacity, and expanding on the legacy of Biden’s industrial policies definitely don’t seem like the sort of things this administration would be interested in.

This is essentially how you would go about making the world economy a fortress against Chinese power, if you wanted to, or did.

Notes

1 Miran does make a pretty substantial mistake, though. He stated:

” Freeman, Baldwin and Theodorakoplous ( 2023 ) find that, while just over 60 % of manufacturing intermediates imported into the U. S. came directly from China, incorporating the value-added of manufacturing intermediates that originated in China but were imported from other trade partners brought that number above 90 %.

These figures are far off. You can see Freeman, Baldwin, and Theodorakoplous ‘ estimates in Figure 2.3 in&nbsp, their paper:

This is the “look-through” exposure, or “estimation of the total value-added of manufacturing intermediaries that are Chinese. China is ultimately responsible for 3.5 % of all U. S. intermediate goods, which is about 20 % of the value of imported inputs. not 99 %. Miran is just way, way off base with his numbers here.

This article was originally published on Noah Smith’s Noahpinion&nbsp, Substack, and is republished with kind permission. Become a Noahopinion&nbsp, subscriber&nbsp, here.

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Russia plays it cool on Estonia’s ‘shadow fleet’ ship seizure – Asia Times

On Friday ( April 11 ), Estonia seized one of Russia’s” shadow fleet” vessels and, just two days later, approved a new law allowing it to use force to sink such ships if they pose a threat to national security.

The first was labeled as” state-sponsored piracy,” according to RT editor-in-chief Margarita Simonyan, while Nikolai Patrushev, the senior adviser to Russian President Vladimir Putin, speculated that Britain might be behind the second.

At the time of writing, Russia has not yet taken a significant stance against this most recent offense. The seizure occurred as part of Trump’s next meeting with Putin, which follows Soviet envoy Kirill Dmitriev’s efforts to break the impasse over Ukraine during his previous week in Washington, DC.

The political approach of the Russian-US discussions on correcting relationships and, consequently, ending their substitute war in Ukraine is back on a positive note, which upsets German warhawks like the UK. Therefore, it can be concluded that Patrushev is definitely correct because London does indeed have a desire to sabotage this.

In order to inspire Russia into a military response by seizing one of its alleged” dark ship,” mischievously timed as it was during Witkoff’s most recent trip to Russia, it makes perfect sense for the UK to encourage its German partner, in whose country it has little less than 1, 000 troops.

Russia’s reaction will likely remain physically restrained despite that fact, even if it quickly launches a political attack against Estonia and the UK. Moscow does this because it doesn’t want to slide into London’s pit.

Putin might hope that Trump can put pressure on the UK and Estonia to stop making any more provocative remarks, apparently by telling them (either informally or secretly ) that they won’t be able to defend NATO’s Article 5 security guarantees in the event of future seizure that lead to armed conflict of any kind with Russia.

The foundation for this plan is in what US Secretary of Defense Pete Hegseth stated in an early February statement about how the US won’t grant these same offers to NATO forces in Ukraine.

The US might even say that it will withdraw its troops from Estonia if this happens repeatedly, whether in parallel with or in its place, but that would have the opposite effect, causing the UK to lose its everlasting appearance there.

The result would be that, in the wake of Germany’s recent establishment of a continuous base in Lithuania, no profit to the 1997 NATO-Russia Founding Act could be made as Putin wants.

If France replicates its circular presence in Romania with similar results, Western Europe’s three standard Great Powers may basically be moving eastward to stop Trump from possible reaching a deal with Putin to restore the NATO-Russia Founding Act.

This is consistent with what was previously said in this evaluation: The US is unlikely to withdraw its troops from Central and Eastern Europe, making these improvements a part of their struggle for leadership in post-conflict Europe.

Russia and the US may not be able to stop this because the earliest didn’t use force in response to such low-level intra-NATO deployments, no matter how intimidating it may be, while the next has lost command over its rebel German, British, and European allies.

In any case, the relevance of this scenario to Estonia, which is supported by the British, is that a strong political reaction from Moscow could be used to justifiably justify the UK doing this.

Even if this most recent action doesn’t sabotage the Russian-US talks ‘ positive trajectory, the decision may have already been made to complicate the Russian-US rapprochement and put it in opposition to its traditional Western European Great Power counterparts.

Despite its extreme political bent, a militarily restrained response from Russia could make the UK’s potential establishment of a permanent military presence in Estonia appear provocative by removing the primary pretext.

Russia could at least be able to present it as a destabilizing move to the world public despite the fact that the outcome would remain unchanged, that is, that it could happen regardless of what.

That’s better than Moscow falling for London’s trap by issuing credible military threats against Tallinn that could lead to the reversal of recent advances in ties with Washington and even provoking a rally against NATO against Russia. If Putin doesn’t want to go to war over this, then it’s the best course of action right now, assuming there are other unfortunate events.

In that case, the US stance toward Article 5 in this regard would be crucial, as he might eventually overcome his innate reluctance to escalate&nbsp, just as he did when he did&nbsp in late November when authorizing the use of his nation’s top-secret medium-range hypersonic Oreshnik missiles.

Repeat incidents would only occur if the US were unable or unwilling to exert any influence over Estonia, which was supported by the United States. Therefore, it may either withhold or explicitly reaffirm these defense guarantees.

Trump’s choice will ultimately depend on whether he will eventually grow resentful toward Putin because he has been unwilling to significantly compromise andnbsp, on andnbsp, his highest goals.

He already, right before Dmitriev’s most recent trip, and once more posted about them during Witkoff’s visit on Friday in an effort to possibly support upcoming seizures as a form of pressure on Russia. That would be a very dangerous way to “escalate to de-escalate” on better terms for Ukraine.

Since Putin couldn’t step down and Russia reportedly lost the significant budgetary revenue it reportedly receives from its” shadow fleet’s” Baltic activities, as well as face-loss, it could very well escalate.

However, as of right now, everything is still manageable, but that could change. Even though Putin’s patience has its limits, Russia’s restrained response to Estonia’s provocative naval seizure is pragmatic.

This article was originally published on Andrew Korybko’s Substack and is republished with kind permission. Subscribe to the Andrew Korybko Newsletter here.

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Huawei armed and ready for Trump’s second assault – Asia Times

Huawei, a tech giant, is more ready than it was for Donald Trump’s subsequent assault on China.

More than punishment, the major risk to the bank’s sales and profits then appears to be the possibility of a tariff-induced crisis. Over 70 % of Huawei’s sales are currently made in China.

Huawei’s complete sales are almost at their pre-sanctions maximum, which is supported by a switch to local procurement. Its profits in the US are small, leaving virtually no immediate exposure to Trump’s taxes.

A sizable R&amp, D budget has allowed the business to stay at the top of the telecom equipment market while facilitating diversification into artificial intelligence ( AI), cloud computing, autonomous driving, and semiconductors. The balance sheet is noise.

Recall that, in May 2019, Trump banned US telecom carriers from using Huawei equipment and the Bureau of Industry and Security ( BIS ) of the US Department of Commerce put the company on its Entity List, preventing it from buying components and other products containing US technology without the department’s approval.

These regulations were put in place over the course of two years to prevent the company from receiving advanced semiconductors, especially those produced by Taiwan’s TSMC, the nation’s leading high-end device manufacturer.

Huawei even was unable to access Google’s Android programs, including Google and Google Maps, as well. This caused Huawei’s 5G mobile phone company to decline, resulting in a 29 % overall decline in sales in 2021 and sharp declines in its income before property sales.

After selling its Honor budget brand to protect it from US sanctions, Huawei’s share of the global cellphone market decreased from 18 % in 2019 to about 2 % in 2023.

But the base was that. Sales increased marginally in 2022, rose by nearly 10 % in 2023 and jumped 22 % in 2024, with sales of cellphones and other consumer products up 38 %. If non-core business profits are taken into account, gains also increased in 2023.

Solutions: Huawei data, Asia Times table.

The geographical breakdown of Huawei’s revenue shows its rising dependency on the local Chinese market.

In 2019, the business was added to the Americas Entity List, and 59 % of its sales were made in China, 24 % in EMEA ( Europe, Middle East, and Africa ), 8.2 % in Asia-Pacific, 6.1 % in the Americas, and 2.7 % in other markets.

China had a breakdown of 71.4 %, followed by EMEA of 17.2 %, Asia-Pacific of 5 %, the Americas ( now primarily Latin America of 4.2 % ), and other regions of 2.2 % in 2024. Russia accounted for 15 %-20 % of EMEA sales.

Home sales increased by 30 % as a result of technological technology and the Chinese economy’s digitalization.

Progress across all of the company’s business segments was driven by strong demand for new design smartphones, telecoms network products, cloud computing, data storage, electric power, and related cars with self-driving functions.

Inside China, sales rise was highest in Russia, Saudi Arabia, the UAE, South Africa, Brazil and Indonesia.

Selling decreased in all of the nations where revenue of Huawei’s 5G telecoms equipment have been restricted or prohibited, including India, Germany, the UK, Canada, and Australia.

Solutions: Huawei data, Asia Times table.

Restoring and diversifying

Huawei rebuilt its smartphone business by turning to Taiwanese semiconductor factory SMIC and developing its own Harmony running program.

HarmonyOS, which runs on a variety of devices, including smartphones, devices, tablet computers, TVs, electric cars, and IoT ( Internet of Things ) equipment, is currently second in China, trailing only Android and Apple’s iOS.

Huawei’s Mate 60 cellphone, which was released in August 2023, demonstrated that US sanctions are more of an opportunity for Chinese development than an unachievable barrier.

Based on a 7nm computer fabricated by SMIC without using ASML’s EUV printing, which cannot be sold in China, it was not supposed to be achievable. Gina Raimondo, a former secretary of commerce, described it as “incredibly disturbing.”

Huawei won the battle of the Chinese smartphone business in 2024, surpassing Apple’s iPhone and its local rivals, to regain control of the market, which saw its market share reach 18 % in the fourth quarter. But Huawei’s worldwide market share is still only about 6 %.

After the BIS ordered Oracle to stop providing Huawei with application updates and technical support, it was also forced to develop its own ERP ( Enterprise Resource Planning ) program.

It took more than three times before the enhanced edition without legacy issues that it now uses to support its own international businesses and also provides to Chinese state-owned companies like PetroChina and China Mobile as well as BYD, Xiaomi, and another privately held Chinese companies.

In 2024, Huawei’s efficiency by solution department was as follows:

Sales increased by 4.9 % to 42.9 % of the overall, mainly for ICT infrastructure. Basic stations, antennas, another mobile telecommunication system hardware and software, optical fiber and other fixed-line network equipment, enterprise switches and routers, 5G solutions for mining, seaports, and other particular industrial applications, as well as AI predicted maintenance.

Government spending and widespread use in industrial, logistics and social infrastructure applications support demand for 5G networking equipment in China. These factors, in addition to a comparatively uninteresting 5G consumer base in Europe and America, have increased Huawei’s share of the global market for radio access network products from 31 % in 2023 to an estimated 35 % in 2024.

China also has a strong investment in 6G, which should allow Huawei to continue receiving orders. It is also the world leader in the deployment of 5. 5G (5G-Advanced ) telecom services. South Korea, Japan, Finland, the EU and the US are also working on 6G, but China has the most supportive government and largest potential market.

China Mobile technology officer Liu Guangyi said in an interview with China Global Television Network ( CGTN) at the Global 6G Conference in Nanjing on April 10 that:”…

” When we first created 5G about a decade ago, we didn’t anticipate the rapid expansion of artificial intelligence. The focus then was mainly on improving communication speed and efficiency. However, by doing so, we ignored the potential for incorporating additional capabilities.

Think about intelligent hardware, connected vehicles, and robotics. 6G networks can help make these technologies more lightweight, compact, and low-cost, making mass adoption more feasible and accelerating the intelligent transformation of society.”

Consumer goods: Sales increased by 38.3 %, making up 39.3 % of the total. Smartphones and HarmonyOS, laptop and tablet computers, smartwatches and fitness trackers, and smart home appliances are some of the products offered.

Market research organization Counterpoint reports 36 % growth in Huawei’s smartphone shipments in 2024, with a higher average selling price boosting the value of sales.

Sales of cloud computing increased by 8.5 %, or 4.5 % of the total in 2024. Large language models for manufacturing, logistics, and finance, AI model training and security, database services, and software-as-a-service, including video conferencing in competition with Zoom and Microsoft Teams, are among the products offered.

Huawei was the second largest provider of cloud services in China last year, with a market share estimated at 22 % versus 34 % for Alibaba and 18 % for Tencent, according the market research organizations and industry sources. With a market share of about 5 %, Huawei came in fifth overall.

Digital power: Sales were up 24.4 % to account for 8 % of the total in 2024. Inverters, battery storage, AI efficiency optimization, and power grid integration for solar energy, data center power supplies and cooling systems, motor/powertrain design for electric vehicles, mobile telecom base station power supplies, lithium-ion batteries for telecom, renewable energy and microgrids, and cloud-computing energy management systems are some of the products.

Huawei creates prefabricated modular data centers that are housed in dust, water, extreme temperatures, and shock-proof metal containers the size of shipping containers for remote and harsh environments. Dozens of these modular data centers have been deployed in Saudi Arabia.

Automotive products: Sales increased by 5.7 times to account for 7.1 % of the total in 2024. Products include integrated motor/inverter systems and HarmonyOS for vehicles, as well as the Pangu AI model for urban and highway driving.

These are provided to several Chinese automakers. According to market research firms and industry sources, Huawei’s share of China’s market for autonomous vehicle technology is between 25 % and 30 %.

Other goods: In 2024, sales increased by 70.0 % to 5.8 % total. Medical devices, industrial sensors, 5G modems for use with robots and drones, augmented reality glasses and displays, and other products that do not fit conveniently into other segments.

Solutions: Huawei data, Asia Times table.

Huawei’s R&amp, D budget has increased from 15 % to 20 % of its sales since 2021, up from 15 % to 15 % in the prior two years.

The company spent a lot of money on advanced semiconductor technology, the HarmonyOS NEXT mobile operating system, 6G, and quantum computing, but the figure for 2024 as a whole increased to 20.8 %, but in Q4 it increased to 25 %.

In addition, it recorded expenses related to the replacement of imported components with Chinese alternatives and the cancellation of contracts in Europe due to sanctions, wrote down 4G inventory, and cut prices to compete with Apple, Alibaba and Tencent.

In the end, net profit fell to zero in the fourth quarter of the year as a result. However, the financial decks were cleared for what appears to be a challenging 2025 and the full-year results were in line with management’s expectations.

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