DeepSeek shows Trump tariffs doomed to fail – Asia Times

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Foreign artificial intelligence business DeepSeek has shook world markets and challenged long-held beliefs about the usefulness of tariffs as a means of economic dominance. &nbsp,

A cost-effective AI model that runs on less-advanced chips, highlighted by its breakthrough, which poses a significant challenge for the United States: tariffs and other financial restrictions may no longer suffice to encircle and outpace China’s scientific rivals.

Revelations about DeepSeek’s low-cost success in the high-cost AI space&nbsp, rocked&nbsp, global technology stocks on Monday, with Nvidia’s shares down 9 % in premarket trading and Dutch high-end chip equipment maker&nbsp, ASML down&nbsp, as much as 11 %, according to breaking news reports.

Bloomberg reported the hitherto largely unheard-of startup ‘s&nbsp, AI assistant has &nbsp, rocketed&nbsp, to the top of the app download charts since it was released last week with capabilities widely&nbsp, seen as competitive with the likes of&nbsp, OpenAI, Google and&nbsp, Meta’s AI offerings. That, in turn, has called into question America’s supposed big lead over China in the AI culture.

Meanwhile, President Trump’s current threat to impose taxes as high as 60 % on imports underscores Washington’s rely on financial restrictions to sustain its global technical standing. Tariffs have been a key component of US efforts for years to stop China’s increase and maintain its position of dominance in important technology and other sectors. &nbsp,

However, DeepSeek’s success shows how rivals can develop around these measures, probably rendering them outdated. This success is a sign of a wider pattern. While the US has previously led in cutting-edge systems, China’s rapid development in AI and electronics is altering the balance of power. &nbsp,

By restricting China’s access to advanced cards, Washington probably aimed to slow its modern development. Alternatively, it has spurred Beijing to triple down on self-reliance, accelerating inventions that could release America’s hold on global supply chains.

DeepSeek’s milestone AI design is more than just a modern leap, it’s a tactical victory for China. It demonstrates how development can circumvent restrictions imposed by taxes and other financial tools.

Diminishing performance of taxes?

This change raises important questions about the US economic strategy’s coming. Tariffs could turn into relics of a bygone time if rivals could circumvent restrictions with more powerful alternatives.

Traditional uses for tariffs include imposing costs on rival companies, ensuring trade priorities, and safeguarding home industries. But, DeepSeek’s success casts question on whether these measures can also achieve their planned outcomes in an age of swift innovation. &nbsp,

China’s advancement was slowed by the US’s policy of restricting access to crucial tools like advanced semiconductors. Alternatively, it has good accelerated Beijing’s modern push, demonstrating the unintended consequences of an depending on disciplinary measures.

If more companies adopt DeepSeek’s strategy, the need for high-end US cards was drop, more eroding America’s liquidity in international markets. These outcomes now have a ripple effect.

The Nasdaq 100 has experienced strong falls, Western tech stocks are slipping, and market sentiment is a sign of growing unease over Silicon Valley’s ability to maintain its position as the leader in the Artificial supply chain.

Trump’s proposed 60 % tax danger highlights Washington’s battle to adapt its guidelines to a world that is increasingly defined by technical aplomb.

Although these steps may have the potential to strengthen the US, they also run the risk of isolating it from a rapidly expanding global business. Competitors like China are proving adept at finding ways to overpower financial and other considerations, leaving Washington’s techniques looking obsolete and responsive.

Day for a serious rethink

DeepSeek’s fall is a wake-up contact for US politicians. Tariffs may have once been a useful tool for shaping international business dynamics, but they are extremely unfit for the challenges of a world driven by development. If the US wants to maintain leadership in important industries, it must reevaluate its financial strategies.

More convincing approaches are encouraging domestic innovation, funding research and development, and encouraging international collaboration than doubling down on disciplinary measures.

The emphasis should move from imposing restrictions on rivals to fostering domestic growth and development. Without these modifications, the US runs the risk of losing ground in the world’s battle for modern supremacy.

DeepSeek’s victory is not just a step for China—it’s a reminder for America. If Washington continues to move on tariffs as its main tool of financial control, it will consider itself extremely sidelined in a world where development, not restriction, drives power, wealth and growth.

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The open secret behind DeepSeek’s success – Asia Times

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It has become popular among Western analysts to speculate about the economic “miracle “‘s demise.

Slowing development, a worried real estate sector, and demographic shifts are frequently used as indicators of the situation. This tale has been further fueled by conflicts with the US, particularly during the previous two services.

Yet the photo is far more complex. Washington has so far avoided the broadest taxes and actions that his campaign speech suggested were a done deal under the administration of President Donald Trump.

However, three times before his commencement, Trump remarked:” I anticipate that we will solve many issues along, starting straight away. We talked about business balance, Fentanyl, TikTok, and several different topics. President Xi and I will do everything in our power to improve peace and security around the world.

These remarks suggest an implicit acknowledgement that China’s market is evolving, no collapsing – and that the United States, despite its speech, understands Beijing’s structural swings.

State-led rise to private-sector vitality

China’s first success was really driven by export-led production and state-owned weighty industry. Now, more than 65 of the 69 Taiwanese companies on the Fortune Global 500 are state-owned.

In recent years, Beijing has pushed for SOE mergers to boost “national warriors”, particularly in strategic areas. At a glance, such deeds might strengthen the tale of status dominance.

Yet the earth is evidently shifting. In the late 1990s, state-owned enterprises ( SOEs ) accounted for more than half of China’s industrial output. Nowadays, they produce almost 30 %. Private companies have become the website of productivity gains and job creation in the economy.

More than 60 % of GDP and more than 50 % of tax revenue are now made up by private companies. Consumption, long overshadowed by investment and exports, has risen in importance – from 35 % of GDP a decade ago to nearly 55 % by 2023.

By enabling greater access to medical facilities and improved funding options, innovative policies support private players. The goal is simple: maintain proper state control while utilizing the private sector’s vitality.

DeepSeek: technology with Chinese features

An example of this private-sector vitality is DeepSeek, founded by hedge fund manager Liang Wenfeng. A groundbreaking AI system developed on a relatively small budget, the company recently unveiled its R1 large language model ( LLM).

DeepSeek’s path challenges the notion that Chinese businesses rely only on state-driven technology. Instead, its story highlights the ability of the private sector to overcome local obstacles and physical limitations.

DeepSeek made novel teaching methods and “pure reasoning capabilities” without any controlled data, while rejecting the usual model of enormous resource investment seen in America. This is a step taken in the direction of an impressive path that deviates quickly from European norms.

DeepSeek developed unique marketing techniques to completely apply less strong GPUs, a miracle that has surprised US researchers because of hardware restrictions imposed by sanctions.

Using only 2, 048 Nvidia H800 GPUs and US$ 5.6 million, it trained a unit with 671 billion guidelines – close to efforts by British giants like as OpenAI and Google, which usually spend multiples of that number.

For Beijing, modern self-reliance has long been an economic feature of strategic goal. At a recent conference of companies with Premier Li Qiang, China’s second-most powerful chief, the communication was blunt:” Focus efforts to break through key main systems”.

DeepSeek’s victory coincides with this perspective. The company’s “local-first” method, which places its employees with PhDs from Foreign universities, best exemplifies Beijing’s wider plan to cut down on foreign tech while cultivating local talent. It is a part of a larger effort to create a self-sustaining development ecosystem that can withstand forces from both the world and the world.

From council lines to systems

Yet now, China’s economic development is usually misconstrued as a shift away from production. In fact, it is a move up the value chain.

The region continues to utilize its great developing skills, built over years, to occupy high-tech sectors such as renewable energy, electric cars and AI. DeepSeek’s increase mirrors the broader path of corporations like Huawei and ByteDance, which have transformed from followers into global entrepreneurs.

At the same time, China leads the world in AI-related patents and boasts one of the largest pools of graduates in science, technology, engineering and mathematics. More than 40 % of GDP is made up of the country’s digital economy, led by e-commerce giants Alibaba and JD.com.

Newcomers like DeepSeek are pushing the limits by demonstrating that even global-scale AI can be produced on smaller budgets when combined with the right combination of technical expertise and business acumen.

One of the most critical, yet sometimes overlooked, aspects of China’s continued economic strength is its unrivaled industrial and production base. This ecosystem, painstakingly built over decades of export-led growth, is not simply about low-cost assembly.

It is a vast, integrated network of suppliers, logistics hubs, specialized clusters and infrastructure that supports a range of high-value industries.

  1. Scale and Integration
    China’s network of factories is unmatched in terms of breadth and depth. From basic components to sophisticated semiconductor machinery, the country’s supply chain spans virtually every sector. Clusters of specialized suppliers allow companies to iterate quickly, reduce costs, and rapidly scale up production. This structural advantage has proven invaluable in high-growth areas like electric vehicles, batteries, and consumer electronics.
  2. Robust Infrastructure
    A highly effective transportation network that streamlines the flow of goods has been the result of massive public investments in roads, rails, and ports. China has a lot to do with maintaining its reputation as the “world’s factory” because of its ability to move large amounts of materials across long distances at affordable prices. In turn, this infrastructure underpins the development of cutting-edge sectors—from biotech to AI hardware.
  3. Economies of Scale and Rapid Prototyping
    Nowhere else can businesses move as quickly and affordably from concept to mass production as they can in China. Thanks to a dense network of component suppliers, R&amp, D centers, and testing facilities, Chinese firms can compress development cycles, a vital advantage in fast-moving fields such as renewables and advanced electronics. This synergy fuels innovation by allowing ideas to be tested, refined, and brought to market quickly.
  4. Policy Support for Upgrading
    Beijing actively promotes the modernization of traditional manufacturing. Initiatives like” Made in China 2025″ channel resources into high-tech industries, including robotics, aerospace, and new energy vehicles. These regulations also promote collaboration between SOEs and private companies, fostering innovation while protecting crucial sectors. The end result is a manufacturing ecosystem that is constantly moving up the value chain, as demonstrated by the success of businesses like DeepSeek, which profit from local suppliers of AI hardware and services.

This industrial backbone is more than just a piece of China’s past; it serves as a fundamental framework for the onset of its economic transformation. Companies developing large language models, EV batteries, or green technologies can tap into a powerful base of suppliers, technicians, and engineers, enabling them to iterate faster and scale more efficiently than competitors elsewhere.

China’s ability to move toward cutting-edge industries without giving up its manufacturing roots is supported by this synergy.

Against this backdrop, predictions of China’s imminent downfall appear short-sighted. The country’s current challenges, such as high youth unemployment and the real estate sector’s recalibration, are significant but not unique. When at comparable stages of development, major economies have experienced similar transitions.

When America’s GDP was roughly China’s current size, it grew at an average of 2.4 % annually. By contrast, China posted growth rates of 5.4 % in 2023, 5 % in 2024 and is projected to maintain 4%-5 % growth through 2025.

These figures, while lower than the double-digit expansions of the past, remain impressive for an economy of China’s scale. And with a GDP per capita of$ 12, 970 – significantly below the U. S. level of$ 83, 000 – China still has ample room for” catch-up” growth, especially as it invests more in education, innovation and domestic consumption.

Moreover, even incremental growth in a$ 17 trillion economy adds substantially to global GDP. Beijing appears committed to laying the groundwork for a more stable economic model, one that is more in tune with the burgeoning middle class of some 400 million people, by embracing structural reforms, encouraging private sector innovation, and unlocking household wealth.

Made in the USA, remade in China

Dismissing China’s economy as having “peaked” overlooks its ongoing metamorphosis. The growth of businesses like DeepSeek highlights the entrepreneurial spirit of China’s private sector in fostering innovation and overcoming constraints from outside.

The accomplishments of DeepSeek serve as a framework for a wider narrative of resilience, where challenges are neither insurmountable nor a sign of unavoidable decline.

A more nuanced perspective reveals China’s transition from an export-driven, investment-heavy model to one centered on domestic consumption and technological innovation. Its extensive manufacturing base is being upgraded and redeployed to support a high-tech future, far from being abandoned.

This evolution is a sign of China’s resilience, ingenuity, and capacity for reinvention, traits that continue to shape the opportunities for others in the global economy.

Marcus Loh is a director at Temus, a Singapore-based company that offers digital transformation services. He is responsible for Step IT Up’s business affairs, marketing, and strategic communications.

He was formerly the Institute of Public Relations of Singapore’s President, and he is currently a member of the SG Tech, the largest trade association for Singapore’s technology sector ,’s digital transformation chapter.

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Making sense of Musk in the White House – Asia Times

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In the new Trump presidency, Elon Musk has gained a reputation as one of the most powerful and contentious powerbrokers. He campaigned alongside Donald Trump throughout the nation and contributed at least US$ 277 million of his own funds to his success.

What does the world’s richest people hope to receive in return from this substantial investment of time and money? Criticism has raised the question of whether Musk’s support for Trump is merely a simple business transaction, with Musk anticipating receiving political favors.

Or does it represent Musk’s personal fairly held social views, and probably personal political ambition?

From left to alt-right

It’s challenging to understand and track how Musk’s social beliefs have changed over time. He’s difficult to pin down, mostly by style.

Musk’s present X supply, for instance, is a bewildering mixture of far-right conspiracy theories about emigration, clips of liberal economist Milton Friedman notice about the dangers of prices, and advertisements for Tesla.

Previously, Musk claims to have been a left-libertarian. He says he voted for Barack Obama in 2008 and 2012, Hillary Clinton in 2016 and Joe Biden in 2020.

Musk claims that as the Democratic party has shifted more to the left over time, giving him a more skewed political outlook than the Democratic party.

Essential to Musk’s political change, at least by his own accounts, is his alienation from his trans child, Vivian Jenna Wilson. After Vivian’s change, Musk claimed she was “dead, killed by the woke thinking virus”. She is very much intact.

He’s since frequently signaled his opposition to trans rights and gender-affirming attention, and diversity, equity and inclusion policies more widely.

However, if the mere presence of a transgender man in his home was enough to elicit a political hegemony, Musk was already on a far-right path.

It makes more sense to understand Musk’s changing politics as part of a much more recent phenomenon known as” the libertarian to alt-right pipeline” than to react to a change in the Democratic Party.

The political technology, explained

Left-wing and right-wing ideologies have previously been the norm.

Left libertarian help monetary policies of limited state, such as cutting taxes and social spending, and restructuring more widely. This is combined with liberal social procedures, such as wedding justice and drug legalization.

By comparison, right-libertarians support the same set of financial plans but hold liberal social landscapes, such as opposing abortion right and celebrating loyalty. The Libertarian Party in America has previously adopted a tense middle ground between the two wires.

The previous century, although, has seen the Libertarian Party, and libertarian more frequently, walk firmly to the right. In particular, some libertarians have played leading jobs in the alt-right activity.

The alt-right or “alternative correct” refers to the new resurgence of far-right social activities opposing diversity, gender equality and diversity, and supporting white patriotism.

The alt-right is a very website movement with its top activists renowned for “edgelording” and “internet trolling,” which is the posting of content that is questionable and provocative to purposefully stoke debate and garner attention.

Though some libertarians have resisted the move of the alt-right, many have been swept along the network, including notable leaders in the action.

Musk Nazi parades

Despite the chaotic posts and Nazi parades, this theoretical discussion can be useful in understanding what Musk’s principles are.

In financial terms, Musk remains a limited-government republican. He advocates lowering fees, lowering government spending, and repealing restrictions, particularly those that restrict his company’s ability to operate.

These objectives are the focus of his formal role as head of the” Department of Government Efficiency” ( also known as DOGE ) in the Trump administration. Musk has suggested that in cutting government spending, he will particularly target diversity, equity and inclusion ( DEI ) initiatives. This is the alt-right impact on screen.

Alt-right tastes are most noticeable, yet, in Musk’s net image. Musk has purposefully stoked discussion on X by promoting and engaging with light nationalists and racist conspiracy theories.

For instance, he has strongly spoken to far-right figures who support the racist” Great Replacement theory.” According to this theory, Jews are urging mass movement to the world’s north as part of a deliberate effort to eradicate the white race.

More late, Musk has endorsed the far-right in Germany. Additionally, he’s shared clips from well-known white supremacists that detail the prejudiced” Muslim grooming groups” crime theory in the United Kingdom.

Whether Musk really believes these absurd prejudiced conspiracy theories is, in many ways, useless.

Instead, Musk’s public comments are better understood as reflecting scientist Harry Frankfurt’s popular concept of “bullshit“. For Frankfurt, “bullshit” refers to statements made to impress or enrage, in which the speaker is merely uninterested in whether or not the statement is accurate.

Much of Musk’s online persona is part of a deliberate alt-right populist strategy to stoke controversy, upset” the left”, and then claim to be a persecuted victim when criticised.

Theory vs practice

Though Musk’s public statements might fit nicely into contemporary libertarianism, there are always contradictions when putting ideology into practice.

For example, despite Musk’s oft-stated preference for limited government, it’s well documented that his companies have received extensive subsidies and support from various governments.

Under a president who is primarily transactional, like Trump, Musk anticipates that this special treatment will continue.

The vexed issue of immigration also presents some contradictions.

Both Trump and Musk repeatedly criticized immigration to the US throughout the campaign. According to Musk, the far-right Great Replacement theory’s themes were reversed when Musk claimed that Democrats had purposefully “replace” the country’s existing electorate with” compliant illegals.”

Musk has argued that Trump should continue to have types of skilled immigration, such as H1-B visas, after the election. This angered more explicit white supremacists, such as Trump advisor Laura Loomer.

Musk’s motives in arguing for the visas are not humanitarian. Temporary workers can enter the country for up to six years with H1-B visas, which leave them entirely dependent on the sponsoring organization. It’s a situation some have called “indentured servitude“.

These visas have been extensively used in the technology sector, including in businesses controlled by both Trump and Musk.

An unsteady alliance

What else can we anticipate from Musk now that he has both political standing and influence?

Musk claimed that Musk’s plan to use DOGE to reduce the US budget by$ 2 trillion would represent a revolutionary change in government. It also seems highly unlikely.

Expect Musk to concentrate instead on provoking debate by reversing DEI initiatives and other politically sensitive initiatives, like those that promote women’s reproductive rights.

Musk will undoubtedly make use of his political influence to protect the interests of his businesses. Following Trump’s re-election, Tesla’s shares reached record highs, suggesting that Musk will be a significant financial beneficiary of the second Trump administration.

In the end, Musk will undoubtedly make the most of his new position to keep himself visible in the general public. This crucial point could cause Musk to conflict with Trump, who is an expert in shaping the media cycle.

Apparently, Musk and Vivek Ramaswamy have already got into a fight, and they will no longer co-lead DOGE together.

It’s still to be seen how stable the partnership between Trump and Musk is, and whether the two billionaires ‘ egos and goals can still coexist.

If the alliance persists, it will play a significant role in shaping what many people refer to as the “new gilded age” of political corruption and rising inequality.

Henry Maher is lecturer in politics, Department of Government and International Relations, University of Sydney

This article was republished from The Conversation under a Creative Commons license. Read the original article.

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China’s EVs driving world into the post-carbon energy era – Asia Times

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Electric cars made up more than 50 % of all vehicles sold in China last year, making it China’s largest EV market by much.

The EV and NEV market expansion is having a good effect on the air quality in major Chinese cities. Significant improvements have been made to the Air Quality Index ( AQI ) in Shanghai, Guangzhou, and other major Chinese cities.

Chinese EV producers are quickly expanding abroad. 80 % of all Vehicles produced in China were sold globally next year. Some EVs from illustrious manufacturers like Ford, Nissan, and Kia are produced in China or depend on Chinese manufacturers for essential components like batteries. China accounts for 75 % of the country’s power battery manufacturing capability.

In the past ten years, the Taiwanese government has provided more than US$ 200 billion to support its EV sector. The purchase was a part of China’s plan to achieve carbon neutrality by 2060.

The government also uses incentives to boost the development of chargers, wind turbine, solar panels and other natural software. More renewable energy sources are developed than combined by the rest of the world.

The Taiwanese and international auto industries are being transformed by the EV sales explosion. Sales of most legacy ( internal combustion engines ) car makers are cratering, in some cases by over 10 % a year.

Manufacturing facilities and showrooms for a number of Chinese manufacturers of internal combustion engines ( ICE ) vehicles are closing. Yet renowned brands are struggling. Porche is closing 35 of its 138 showrooms in China.

Share of New Energy Vehicles ( NEVs ). Some researchers predict that in 2030, ICE’s share of the market will become smaller. Image Copyright © Berylls.

China’s EV sector was created wholly using Chinese manufacturing technology. The sector is diagonally integrated, and freelancing is minimized. Horizontal inclusion leads to considerable advantages in excellent power, speed, and price. Foreign EVs are, on average, half the price of EVs produced in international markets.

China’s top-selling model Ford has taken vertical connectivity to a new stage. From the transportation of vehicles across the world to the mine of raw materials, the auto giant has control. The business owns sodium mines, manufactures battery packs, and runs an EV insurance provider that covers every aspect of the supply chain for electric vehicles.

Earlier this month the firm launched the BYD Shenzhen, its fifth auto ship. The vehicle has a power of 9, 200 electrical cars.

BYD vehicle ship with a power of 9, 200 vehicles. Photo © BYD

International disruption

The electricity of freedom, the biggest disruption in the background of the car industry, is shaking up the global auto market. While Foreign EVs are rapidly expanding worldwide, opening factories abroad, or transferring existing businesses from tradition makers, almost all other car manufacturers are experiencing difficulties. &nbsp,

BYD, which recently acquired a Ford shop in Brazil, is building new crops in Hungary and Turkey. Chery Auto, a joint venture between China and EV Motors, started producing Vehicles in Barcelona. Prior to that, Great Wall Motors purchased General Motors vegetation in India and Thailand.

Japanese manufacturers are also in surrender. Due to the rapid shift toward electric vehicles and increased competition from nearby automakers, a number of Chinese automakers have stepped down or shut down operations in China. Nissan halted production at its Foreign flower, and Mitsubishi withdrew from the Chinese market. In addition to reducing its production power, Honda is facing declining sales in China.

According to unverified press accounts, Chinese EV designers also have their eye on Germany, the center of German car manufacturing. In 2027, Volkswagen intends to stop producing goods at its Dresden and Osnabruck plants. Chinese automakers BYD, Leapmotor, and Chery Auto are said to be looking into possible acquisitions for the European species.

Foreign car manufacturers would have better access to EU production facilities to avoid International tariffs on imported electric vehicles from China and increase their presence there. The EU Commission announced tariffs of up to 37 % on Chinese cars last October in addition to the already 10 %.

Given German concerns about the culture, it is ironic to raise the cost of Chinese electric vehicles in the EU, but it is also a repeat of the earlier car conflicts with Japan. In the 1980s, some European countries and the US resorted to” Voluntary Export Restraints” to offer Western carmakers time to catch up with Japan’s” Just-In-Time” manufacturing systems.

In October next month, Brussels raised the stakes with Beijing. It made new regulations that may involve the transfer of technology between Chinese EV manufacturers based in EU countries. A significant role reversal occurs when international companies investing in production systems are required to reveal their systems with their Chinese partners in the 1980s.

Decline our business reveal of European carmakers. Japanese manufacturers show a similar drop. Illustration Copyright © Bloomberg

With what appears to be an unsurmountable result, transferring or sharing technology would not be a problem for Chinese EV manufacturers.

Vehicle industry experts believe that Chinese EV manufacturers are 10 to 15 times ahead of the rest of the world, according to John Bozella, leader of the Alliance for Automotive Innovation, and Sam Evans of the Electric Viking website. It may create Vehicles in the Union with five-year-old technology.

The February elections in Germany may have a lot of impact. It would be difficult to stop Foreign output in Germany. European automakers have been operating plants in China for a long time. Ford, much the top-selling company in China, earns 50 % of its revenue in China. German’s premium models Mercedes Benz and BMW have also benefited from the Chinese business.

Energy move

Foreign companies addressed one of the last issues with EV batteries: the battery life and collection. CATL, the world’s largest battery maker, announced the production of an EV device that will last 15 years or one million yards.

CATL warrants that the device may have 85 % potential loyalty after the warranty expires and offers a 10-year or 600, 000-mile insurance. The batteries can be used again to store power in a home. &nbsp,

The need for petroleum products has decreased as a result of the explosion of the EV business. China’s refined oil consumption peaked in 2023, according to China National Petroleum Corporation ( CNPC ), and it is now anticipated to decline. The number of gas stations is declining, as is the need for fuel.

Shell, the world’s largest oil company, intends to shut down 1.000 of its petrol stations in China. The business installed 70, 000 people charging facilities in the nation by 2025 and built an EV charging station with 258 batteries in Shenzhen.

More than 20 000 charging facilities will be constructed in 420 Chinese cities in collaboration with Automotive manufacturer Xpeng. The latest (600-watt ) systems can charge car batteries in under 8 minutes.

Chinese EV makers export mostly mid-sized sedans but produce a wide range of EV vehicles, from micro cars with a price tag of under$ 10, 000 to high-performance” supercars” priced at over$ 200, 000 as well as electric bikes.

In Shanghai, the number of electric light riders reached over 10 million in 2022, which means that one in every 2.5 persons owns an e-bike.

EV microcar retailing for under$ 10.000 and an EV” supercar” with a price tag of over$ 200, 000.

To be sure, EVs are no cure for all of the nation’s economic issues. However, the world is quickly approaching the post-carbon power age, combined with the exponential rise in clean power generation.

China is the core of this natural change. China produces half of the world’s clean energy, in addition to leading the charge in thrilling mobility and producing green technologies like solar panels.

Western media has a habit of blatantly mentioning China as a source of global pollution while omitting the fact that Western businesses have been outsourcing their “dirty” production there for decades ( or that China’s population is twice that of the US and Europe combined ).

Green agreement

The EU Commission tussled with China over clean technology, including Vehicles, for almost a year before coming to the conclusion that China has “overcapacity” in green technology and that grants give it an “unfair benefits.”

The Commission could have just examined China’s federal environmental policies, which gave green technology equal priority over agriculture, as the EU did. &nbsp,

Despite its problems for the environment, the EU continues to support its agricultural industry. Agriculture is the main source of waste in Europe, according to the European Environment Agency, primarily due to its acid emissions, which are generally brought on by the use of livestock manure and fertilizer. &nbsp,

Between 2023 and 2027, the Union subsidized its agricultural sector with 264 billion dollars. The Union exports about 230 billion dollars in agricultural goods annually, more than its exports of 180 billion dollars. About 6 % of European agricultural “overproduction”, for about$ 16 billion annually, is exported to China.

Both parties can benefit from China upgrading European automobile manufacturing. China may expand its international footprints, and Europe may speed up its green revolution. Likewise, Europe gets access to manufacturing systems that will identify 21st-century flexibility. After years of outsourcing, car manufacturing is the last remnant of Europe’s mass production of consumer products.

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Putin’s obsession with total victory crimps Trump’s peace promise – Asia Times

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Donald Trump has already refuted his claim that he will resolve the Ukraine issue within the first 24 hours of business.

Trump’s counselors have then acknowledged that the conflict in Ukraine can’t be easily negotiated, just as he once said he would fix the US medical problems quickly and then backtracked to saying “nobody knew that heath care was thus complicated.” Trump’s” skill of the offer” does not really work in the real world of conflict solution.

Trump’s original intention was to provide further military support to Ukraine to deter further Russian aggression. This may encourage it to bring up the topic of the board.

Stopping aid to Ukraine might be a different tactic to help it deal. Trump would demand that Ukraine surrender its territory and establish an 800-mile demilitarized buffer zone ( to be guarded by NATO or European troops ) once “peace talks” started.

Trump is friendly to Russian President Vladimir Putin’s claim that joining NATO poses a menace to Russian protection. Therefore, Ukraine would have to give up on aspired to actually join the local security bloc.

Russia, in turn, may get big restrictions pleasure, while a portion of the proceeds from&nbsp, tariffs&nbsp, on Russian energy imports would become allocated to&nbsp, Ukraine.

Trump’s peace plan was engineered by Russia-Ukraine special envoy Keith Kellogg ( a highly decorated three-star general ), who recently canceled an upcoming trip to Kyiv. Trump has already indicated that he wants to speak with Putin in order to “get the war over with.”

The biggest challenge is that Putin does not really want to make a deal, despite the plan’s numerous obstacles. Yes, in October, Russia was losing 1, 500 troops a day and the country was, and still is, struggling to recruit men.

With the onslaught of severe sanctions and being forced to spend tens of billions of dollars on defense rather than other government services, the Russian economy has had to deal with a lot.

All of this is irrelevant because Putin is so obsessed with Ukraine and her eventual victory. Russia might even be in a recession, as has been predicted in 2025, but that would still not be enough to force it to accept any compromise.

Putin categorically opposes Ukraine becoming a sovereign state. He either wants to control or destroy it. A weaker or nonexistent Ukraine would be a major blow to the United States ‘ position as a strongman in Russia, as well as a positive one for Putin’s legacy.

Unsurprisingly, Russia has already rejected the US’s unofficial suggestions, despite the fact that it has not yet seen an official statement on the subject. Putin favors serving as president during the war, and many Russians are willing to accept this new normal when they are under attack by oppression and inspired by patriotism.

Russia’s lack of compromise

Russia doesn’t think it needs to compromise. Putin is aware that he is much more determined than the West to defend Ukraine.

There are undoubtedly indications of fatigue in Europe for continuing to support Ukraine. In a YouGov poll of seven European countries ( France, Italy, Spain, Germany, the UK, Sweden and Denmark ), continuing support for Ukraine until Russia withdrew was found to be as low as 31 % on average, compared with around 40 % for encouraging a negotiated end to fighting, even if Ukraine lost territory.

In addition, lawmakers and the general public are exhausted in the US. Therefore, Congress, which is currently largely governed by the Republican party, may object to the provision of additional weapons to Ukraine.

In 2023, Republican opposition to Ukraine’s support already caused enormous delays. And while Republicans in Congress have been waning in favor of keeping the aid levels in Ukraine despite the Biden administration’s recent announcement of a new tranche of US$ 500 million, which is a portion of a total of$ 175 billion since the 2022 invasion.

This largely reflects the sentiments of the American public. In a Gallup poll conducted in December 2024, 48 % of people support US aiding Ukraine in regaining control of the land lost to Russia, marking the first time this percentage has fallen below the majority.

Support for Ukraine is also incredibly polar, with 74 % of Republicans and 30 % of Democrats wanting to end the conflict right away. Additionally, 67 % of Republicans think the US is doing too much.

Ultimately, it is likely there will be no peace deal any time soon because Trump does not really care about Ukraine, and doesn’t understand foreign policy. Adam Kinzinger, a former Republican congressman, recently claimed that Trump pursued foreign policy in the manner of a” three-year-old.”

Trump cares more about impressing Putin ( or being seen as a deal-maker ) than supporting Ukraine’s sovereignty. His vice-president, J. D. Vance, has been more direct about it, stating in 2022:” I gotta be honest with you, I don’t really care what happens to Ukraine one way or another”. This view could have a devastating effect on willingness, and commitment, to negotiate.

According to analysis by US historian Robert Kagan, without US aid, Ukraine will lose the war within the next 12-to-18 months. Yet, for every square mile Russia gains, it loses 40 men – a heavy price to pay ( Ukraine’s total area is 233, 100 square miles ).

The initial proclamations that Trump would resolve the Ukraine crisis in 24 hours were campaign bluster that showed little awareness of the conflict’s intrusibility and the difficulties of establishing a new administration.

A few weeks ago, Trump stated that part of his plan “is a surprise“. The surprise factor extends beyond the general public. Perhaps Trump has no idea what his next steps will be when it comes to putting an end to this conflict. And that could play perfectly into Putin’s hands.

Natasha Lindstaedt is professor in the department of government, University of Essex

This article was republished from The Conversation under a Creative Commons license. Read the original article.

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Yes, reshoring US industry is possible and happening – Asia Times

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Reshoring the British business has become a nonpartisan policy goal because Biden had a lot of interest in it. The concept has always been met with skepticism from a variety of angles.

Anything that involves tariffs and/or professional policies is viewed with suspicion by some economists and completely traders. And politics being what it is in America, both Republicans and Democrats have undoubtedly doubted the capacity of the other party to fulfill their promises. But in addition, I typically encounter a healthy skepticism about America’s skill to perform manufacturing&nbsp, at all.

Americans may be forgiven for having this idea. Most of our lived knowledge has either been the Rust Belt time of the 1980s, or&nbsp, the charged offshoring&nbsp, of the 1990s, 2000s and 2010s. America has not had a factory-building increase in a very long time.

On top of that, most people who take economics in America know only one theory of global business, which is the principle of&nbsp, analytical advantage&nbsp, — generally, the idea that countries specialize in whatever they are best at. Because of the decades-long trend, it’s reasonable to assume that America focuses on technology and service rather than producing real goods.

If you think that, you likely think that reshoring production will always be a difficult, if not impossible, task. Sure, with sufficient taxes and grants we could&nbsp, force&nbsp, Americans to get more expensive products made in America, but this will render us all poorer. Why not concentrate on what we appear to be good at and left manufacturing to the East Asians and perhaps the Germans?

And still the right way to think about business isn’t always the best one. There ‘s&nbsp, another theory&nbsp, that says that since America has tons of money and technology, we can accomplish a lot of automatic production. And there ‘s&nbsp, but another theory&nbsp, that says that because the universe loves multitude, the US can produce near variations of the stuff the Asians and Europeans make.

Since the turn of the century, the US has experienced underdevelopment, which may have been due to an overvalued exchange rate, intentional Chinese rivals, and US business laws that favored the financial industry over the manufacturing industry.

The common belief that Americans just aren’t good at making stuff seems contradicted by areas in which we are &nbsp, startlingly good at making stuff&nbsp, — for example, SpaceX, which is pumping out the world’s best rockets from US factories in stunningly high volumes. The American South has also become a hub of high-quality auto manufacturing, with the help of Japanese and South Korean investment.

If that’s true, then reshoring has a chance. Although the uncompetitive dollar will continue to be a major issue, tariffs and other trade barriers can prevent Chinese competition, and US industrial policies can switch from pro-finance to pro-manufacturing ones. In fact, this approach is already bearing fruit in a number of strategic industries.

Take&nbsp, solar power, for instance. The collapse of US manufacturing and China’s overwhelming dominance for years served as the industry’s main story. In&nbsp, an article in Bloomberg&nbsp, last September, David Fickling lamented:

The US and Europe’s disregard for their own clean-tech industries is the result of myopic corporate leadership, timid financing, oligopolistic complacency, and policy chaos. That left a gap that Chinese start-ups filled, sprouting like saplings in a forest clearing.

But even before that story hit the presses, things had already begun to change. In December, the Solar Energy Industry Association &nbsp, reported&nbsp, that US solar manufacturing capabilities are on the rise:

In 2017, the US ranked 14th in the world for solar panel manufacturing capacity. With a focus in the South, additional factories started popping up all over the nation with an emphasis on expanding existing facilities starting in 2018 and then accelerating in 2022. Today, the US has leapfrogged competitors and ranks 3rd in manufacture of solar panels, passing large solar manufacturing countries like Malaysia, Thailand, Vietnam, and Turkey…A new report by SEIA and Wood Mackenzie found that the industry had reached a critical threshold:

US solar manufacturing has reached a critical point following a record-setting Q3. American solar module factories can now produce enough to meet nearly all the demand for solar in the US when they are at full capacity.

As more solar deployment happens, more manufacturing will come online…Companies are investing billions of dollars to produce American-made solar panels in states like Georgia, Ohio, Texas, Washington, South Carolina, and Alabama…]T] here are more factories on the way, either announced or under construction.

Although it is obvious that the US is still far behind China, this growing trend of production and self-sufficiency is very different from the typical narrative you hear. As the article notes, the reshoring of solar began in the late 2010s, under Trump, and may have had something to do with Trump’s tariffs on solar panels. A second round of tariffs, courtesy of Biden, went into effect near the end of 2024, and definitely seemed to have an effect on solar imports:

Source: &nbsp, Joey Politano

However, Biden’s Inflation Reduction Act was the real catalyst for solar reshoring:

Source: SEIA

For another example, look at&nbsp, semiconductors. I ‘ve&nbsp, written a lot&nbsp, about how the CHIPS Act has galvanized U. S. production in this most strategic of all industries, including major investments from Taiwan and elsewhere. This is from&nbsp, a recent report&nbsp, by the CHIPS Program Office:

Over the past four years, there has been more investment in electronics manufacturing in the United States than in the last three decades combined. Plans for investments totaling nearly$ 450 billion are now available, making this the largest wave of semiconductor manufacturing growth in US history. This includes the two largest domestic investments in semiconductor manufacturing by US companies in history ( Intel and Micron ), as well as the two largest foreign direct investments in new projects by any company in history ( TSMC and Samsung ) …Perhaps most significantly, for the first time, all five of the world’s leading-edge logic and dynamic random-access memory ( DRAM ) manufacturers ( Intel, Micron, Samsung, SK hynix, and TSMC) are building and expanding in the United States. In contrast, no other country’s economy has more than two of these factories working there…

The United States is projected to produce at least 20 % of the world’s leading-edge logic chips by 2030 (up from zero percent in 2022 ) and ~10 % of its leading-edge DRAM chips by 2035 ( also up from zero percent ) —both technologies that are essential to the future of artificial intelligence ( AI), high-performance compute, and advanced military systems. For the first time in nearly a decade, a new factory in Arizona has begun producing these technologies domestically. This is the first time in almost a decade that a new factory has done so.

And The Economist, certainly no friend of industrial policy in general, has &nbsp, grudgingly admitted&nbsp, that US reshoring of the semiconductor industry is succeeding:

Early returns are impressive: the]CHIPS Act ] programme has catalysed about$ 450bn of private investments. And this money is spread across much of the industry, from high-tech packaging to memory chips. The most advanced chips, which are less than 10 nanometers in size, are a key indicator of success. In 2022 America made few such chips. By 2032 it is on track to have a share of 28 % of global capacity.

Foreign direct investment, especially from Taiwan’s TSMC, has been significant in the case of US auto manufacturing a generation earlier.

In early 2024, some poorly informed pundits were writing stories declaring that” DE I killed the CHIPS Act”, while&nbsp, others were wondering&nbsp, whether Americans had a culture capable of making chips. Those articles were spectacularly ill-timed — obstacles were quickly overcome, and the factory is now&nbsp, pumping out 4nm chips. Those are, by at least some measures, the most advanced semidconductors ever made on American soil.

And what’s more, those chips are being made with yields ( i. e., quality ) that are &nbsp, comparable to, or even higher than, what Taiwanese factories get. The notion that American workers couldn’t produce high-quality goods proved to be incorrect.

The cost of the chips made in the US is a little higher ( about 30 % more right now ), but that price difference will likely decrease as the demand increases and the chipmaking experience spreads throughout the nation.

In fact, the reshoring effort is going so well that TSMC is&nbsp, now planning&nbsp, to build even more cutting-edge chips at its US plants:

The effort to reshore semiconductors has so far been a huge success.

Batteries&nbsp, look like a third reshoring success. Currently, most batteries are produced in China, but the Inflation Reduction Act may be&nbsp, starting to turn things around:

Source: &nbsp, Canary Media

It’s not just factories being announced, either, production in the US is way up:

Source: &nbsp, Joey Politano

The reshoring of the solar, chip, and battery industries is direct criticism of the critics and evidence of American manufacturing’s viability.

Although these are only three different types of industries, they will undoubtedly facilitate the reshoring of those that are either producing these manufacturers or using their own resources. American reindustrialization isn’t just about a few key tentpole industries — it’s about a whole web of suppliers, customers, related industries, and talent.

Fortunately, we can already see this web starting to form in the US SEIA&nbsp, reports&nbsp, that America’s solar manufacturing boom isn’t just limited to the panels themselves, but related industries like solar tracker, solar inverters, and upstream materials production like wafers and ingots.

Meanwhile, the CHIPS Program Office&nbsp, reports&nbsp, that the semiconductor boom also includes downstream activities like packaging and testing. The Economist&nbsp, points out&nbsp, that this ecosystem, as well as the talent that gets developed for the CHIPS Act’s projects, will reduce costs and help sustain future expansion of chip manufacturing in America:

The subsidies have reduced the cost of building and running fabs in America by about 30 % compared to those in Asian nations. Because Asian governments give companies more money, their costs are lower in part.

However, Asian producers have also benefited from dense manufacturing clusters, which have well-trained workers and a large supply chain nearby. The goal is that CHIPS in America has initiated this process. ” It’s enough to get the flywheel going”, says ]outgoing Commerce Secretary Gina ] Raimondo.

Currently, it is largely a matter of political will and decency whether reshoring continues. If Donald Trump continues to criticize the solar industry or follows through on his previous threats to revoke the CHIPS Act, production could significantly shift back to China.

It would be ironic if a president who came to power and promised to revive American industry ended up being the one who put an end to our industrial revival.

This article was first 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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US-China on very real collision course over the Panama Canal – Asia Times

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United States President Donald Trump’s new commitments to recapture the Panama Canal have signaled rising US-China conflicts in Latin America, America’s resource-rich garden and standard sphere of influence.

US Senator Eric Schmitt introduced a resolution on January 23 calling for the Panamanian government to “expel official and interests of the People’s Republic of China ( PRC ) and terminate Chinese management of key Panamanian ports after Trump declared in his inauguration speech on January 20 that it was time for the US to retake control of the Panama Canal.

Additionally, the solution urges the Panamanian government to:

  • restate its commitment to the Panama Canal’s “permanent impartiality” as defined by the 1977 Neutrality Treaty,
  • assessment and terminate contracts allowing Chinese state-owned businesses or China-based so-called private entities to maintain proper infrastructure, including the ports of Balboa and Cristobal,
  • reaffirm its commitment to upholding Panama’s sovereignty and protecting the safety of the Northern Hemisphere by pursuing partnerships that conform to democratic principles and reciprocity of respect.

According to the quality, the US government should make significant investments to upgrade Panama’s river system and provide alternatives to Chinese-funded projects, give technical, financial, and proper support to Panama as it seeks to assert its independence over its crucial infrastructure, and lessen its dependence on organizations affiliated with the PRC. &nbsp,

In essence, Schmitt’s resolution calls for the Panama Maritime Authority ( AMP ) to revoke Hutchison Ports Holdings, a port management company with international interests that Hong Kong tycoon Li Ka-shing controls.

” This has been a problem for a while that China has successfully controlled the Panama Canal. On either close, they control the ships. Why is that significant? Because the Panama Canal is where the majority of the products we ship to the Pacific pass, Schmitt told Fox News in an exam. &nbsp,

” The river is no natural anymore. It’s piece of China’s Belt and Road Initiative, where they buy up ships, they build flights and if you criticize the CCP, you may not find airlines again”, he said. They create a” structure that they can move on and off.” We just, from a national surveillance view, cannot have that situation”.

He claimed that the US did not take into account the fact that its military would have to traverse the Panama Canal before it “foolishly gave it away.” Who will determine the 20th century will determine the great rights’ battle between America and socialist China, he added.

China’s trade and investment with Latin America have significantly increased over the past 20 times. &nbsp,

In a statement, the United Nations Economic Commission for Latin America and the Atlantic (ECLAC ) reported that China and the countries in the region have increased in recent years, reaching US$ 489 billion in 2023. That figure was only$ 18 billion in 2002.

Also in 2023, China’s overseas direct investment ( ODI) in Latin America and the Caribbean amounted to about$ 9 billion, or 6 % of the region’s total ODI. The US has been carefully monitoring China’s ability to use its economic impact in Latin America for political and military uses there. &nbsp,

Chinese President Xi Jinping inaugurated the Chancay mega-port on November 14th during an online service in Peru. According to state media, China will use the Chancay interface to promote trade and adopt its Belt and Road Initiative. &nbsp,

Mauricio Claver-Carone, the US State Department’s Special Envoy for Latin America, said the US may establish a 60 % tax on all products coming from the Chancay interface. &nbsp,

‘ We’re taking it back!’

But the Panama Canal is in Trump’s quick places. Trump reiterated his threat during his inaugural address in a press briefing on January 7 that the use of military power might be used to retake control of the Panama Canal.

In his speech on January 20, Trump said,” The Panama Canal, which mistakenly was given to the state of Panama, has been given because the US spent more money than ever before on a project and lost 38, 000 lives in the Panama Canal’s construction.”

” Our deal’s function and our treaty’s nature have been completely violated.” British ships are receiving a lot of extra money and not being treated quite in any way, shape or form. And that includes the United States Navy”, he said. The Panama Canal is being run by China. And we didn’t give it to China. We gave it to Panama, and we’re taking it back” .&nbsp,

The Filipino authorities announced the same day that an audit of Hutchison Ports, a nearby entity, had begun. Anel Bolo Flores, the Filipino Comptroller General, promised to launch a probe to check whether Hutchison is complying with its 25-year agreement for the Balboa and Felipe box stations. &nbsp,

Due to this, Filipino President Jose Raul Mulino stated last December that no power could control the Panama Canal, and that their sovereignty and independence are not subject to any kind of power.

China does not participate in waterway management or operation. Never actually has China interfered”, Mao Ning, a Chinese Foreign Ministry spokeswoman, said in a press briefing on January 22. We regard the canal’s sovereignty and consider it to be a permanent natural international waterway.

After the Nicaraguan authorities cut decades-old diplomatic relations with Taiwan and leaped toward Beijing, diplomatic relations between China and Panama started in June 2017. &nbsp,

In December 2018, Panama signed on to Beijing’s Belt and Road Initiative. Citing a WhatsApp talk, media reports said past Panamanian President Juan Carlos Varela had received US$ 143 million of “donation” from Beijing to reduce the Panama-Taiwan ties.

According to Schmitt’s resolution, US construction of the Panama Canal required more than a decade of work ( 1904–1914 ), involved tens of thousands of workers and cost approximately$ 375 million, equivalent to more than$ 10 billion in 2025, with thousands of workers losing their lives due to disease and hazardous conditions.

According to US National Archives ‘ Rediscovering Black History, the majority of the people responsible for building the Panama Canal came from the West Indies, a group of islands in the Caribbean Sea. However, some pro-China outlets have claimed that Chinese immigrants were the ones who lost their lives in the Panama Canal’s construction. &nbsp,

In an article published on January 20, The South China Morning Post claimed that thousands of Chinese people lost their lives while building Panama’s canal and railroads. &nbsp,

In an article published on January 25, Guancha.cn columnist Xiong Chaoran claims that Chinese workers left marks on the Panama Canal with their sweat and blood. He criticized US lawmakers for supporting Trump in promoting the Panama Canal issue.

The American Transcontinental Railroad, which was completed in 1869, was reportedly completed with the aid of 15, 000 Chinese immigrants, according to the Chinese Historical Society of America. According to researchers, hundreds of these workers lost their lives while working on the project. &nbsp,

Jimmy Carter, the US president, and General Omar Torrijos, the commander of Panama’s National Guard, signed the Panama Canal Treaty in 1977. It made it certain that after 1999, Panama would regain control of the Panama Canal. &nbsp,

Hutchinson in the crosshairs

Through an extensionable concession of 25 years plus 25 years that the Panamanian government gave to the management of the ports of Balboa and Cristobal at both ends of the Panama Canal, Hutchison Port Holdings ( Hutchison Ports ), a subsidiary of CK Hutchison Holdings, established operations in Panama in 1997.

The Panamanian government renewed the concession for Hutchison Ports by 25 years in 2021. &nbsp,

Hutchison Ports requested a right of reply from Asia Times, but the publication had not yet received a response. The business has so far declined to respond to any media inquiries about the matter. &nbsp,

On the Singapore Exchange, some Hutchison Ports ‘ operations are listed as Hutchison Port Holdings Trust. The listed trust has not recently filed any new documents with the bourse.

According to CK Hutchison’s website, Hutchison Ports is the world’s “leading port investor, developer and operator” and operates a network of 53 ports across 24 countries throughout Asia, the Middle East, Africa, Europe, the Americas and Australasia.

In addition to Buenos Aires, Argentina’s container terminal, Hutchison Ports runs ports in Mexico and the Bahamas in North America. It also operates ports in the United Kingdom, the Netherlands, Germany, Belgium, Italy and Spain.

It’s not known if Washington will put pressure on other port facilities because it believes they are strategic because they are under Chinese influence.

Yong Jian contributes to the Asia Times. He is a Chinese journalist who specializes in Chinese technology, economy and politics. &nbsp,

Read: China’s shipbuilders a likely Trump trade war target

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Hong Kong’s rich potential as a crypto art trading hub – Asia Times

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Hong Kong, a global hub for arts and banking, is at the vanguard of a trend where art meets bitcoin systems. The rise of NFTs ( Non-Fungible Tokens ) and RWA ( Real World Asset ) tokenization is redefining the art market, expanding its reach and lowering entry barriers.

These improvements are expected to dominate the forthcoming World Expo in Hong Kong, demonstrating how bitcoin can improve price, clarity, and cash in the arts world.

In recent years, Hong Kong’s art industry has experienced impressive growth. According to the Census and Statistics Department, the state’s industry in art, items, and artifacts reached HKD105.465 billion in 2023, a boom of over 80 % from 2019.

However, China’s craft market, for US$ 12.2 billion in 2022, overtook the UK as the country’s second-largest, reflecting the state’s rising supremacy.

As Asia’s leading craft hub, Hong Kong is home to many collectors and purchase firms, with some exceeding US$ 50 million in art investments. This jobs the area as a normal incubation for blockchain-driven art improvements.

RWA-Tokenization: Bridging the Physical and Digital Worlds of Craft

RWA verification transforms real art assets into modern tokens, enabling partial ownership, lowering access barriers, and unlocking cash for high-value artworks. The Hong Kong government has opened up space for such advancements thanks to its strategic position on blockchain rules and plan support.

Yau Yo, the president of Greater Bay Area Innovation Design Alliance, an earlier NFT director who worked on projects for Asia’s actor Jay Chou, observed the transformational power of NFTs:” Jay’s NFT items sold out in time, generating hundreds of millions.

NFTs introduce online lack, enabling global achieve while disrupting traditional institutions. Artists can override intermediaries, keep more profits, and receive royalties on extra sales. But, volatility and guesswork remain challenges, requiring careful evaluation from both makers and investors”.

The power of NFTs, in my opinion, goes beyond modern art. In the conventional market, they address integrity and copyright issues by recording provenance and transaction history and acting as modern certificates for bodily artworks. Trust is bolstered by this transparency among buyers and buyers.

Anson Chan, president of Bonds Group and a dominant artwork collector, highlighted a crucial challenge:” Standard collectors prefer real artworks. For RWA-tokenization to achieve, useful solutions for keeping, managing, and insuring natural resources are essential”.

Jims, head of the RWA arts program NCollector, says artwork is ideal for RWA tokenization according to three key aspects:

  1. Standard art lovers typically face liquidity boundaries. Verification unlocks cash, fulfilling a crucial want.
  2. Art combines theoretical value with investment. RWA bridges the gap between traditional art areas and bitcoin, introducing bitcoin people to craft opportunities.
  3. Tokenization enables cross-border trading, boosting social change and global market development.”

I concur with Jim’s comments and believe that RWA has a great chance of boosting Chinese treasures ‘ international flow.

Qing Dynasty Emperor Qianlong’s Imperial Seal ( Made of Pure Gold ).

Art RWA Tokenization Status and Challenges

Despite its promises, craft RWA-tokenization remains in its infancy in Hong Kong. Blockchain services that offer these companies are emerging, but the general market length is also constrained. Tokenization allows high-value paintings to be divided into marketable digital currencies, solving cash problems.

For instance, a 100 million euro Rubens painting could be tokenized into 10, 000 smart contracts, priced in ETH and sold in increments. Each token would have royalty rights, guaranteeing that the original owners would receive a set profit from upcoming transactions.

From the buyer’s perspective, tokens gain value through secondary premiums or ETH price increases, with smart contracts ensuring the NFTs retain inherent value.

This contrasts with many NFTs in 2022, which were based on virtual goods and experienced a 90 % market decline in 2023. RWA-based NFTs, tied to real-world assets, offer more stability and transparency, making them a more reliable investment.

Peter Paul Rubens’ The Feast of Venus

The Art Market in Hong Kong: Current Landscape and Future Prospects

Hong Kong is Asia’s leading art trading center, with 2023 auction volumes surpassing HKD12 billion —60 % of the region’s market. The city’s strategic location, free trade policies, and robust legal and financial systems bolster its appeal to global investors. Key advantages include:

  1. Tax Incentives: Unlike Europe and the US, Hong Kong imposes no transaction taxes or VAT on art sales, attracting international buyers.
  2. Legal Framework: The city’s Common Law system and intellectual property protections ensure transparency and security in art transactions.
  3. Banking and Free Capital Flow: Hong Kong’s financial market facilitates seamless cross-border payments, supported by world-class banking services.
  4. Infrastructure: Renowned auction houses like Christie’s and Sotheby’s operate in Hong Kong, complemented by advanced logistics and insurance services.

However, the city faces challenges in art storage. To compete with facilities like Switzerland’s Freeport, Hong Kong must develop specialized storage solutions for high-value artworks.

Jeffrey Sze, CEO of Habsburg Asia

With the HKMA and SFC enacting crypto asset regulations in 2023, Hong Kong is well-positioned to take the helm of the RWA-tokenization revolution. Blockchain technology will transform the art market by enabling fractional ownership of real-world assets, increasing investor flexibility and accessibility.

As CEO of Habsburg Asia, I oversee high-end art transactions and RWA-T operations, including works like Peter Paul Rubens ‘ Venus Fest and Picasso’s Buste de Femme Souriante. These instances demonstrate how blockchain can bridge the use of digital technology and traditional art.

With its tax advantages, legal stability, and financial innovation, Hong Kong is primed to become a global leader in art and digital asset markets, drawing increased international investment and solidifying its status as a premier art hub.

Jeffrey Sze is the GP of both the Asia Empower LFP and the Habsburg Asia ( which is partially owned by the Habsburg Family ). He specializes in high-end art transactions and RWA-T operations. In 2017, he secured a cryptocurrency exchange license in Switzerland.

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Gold glitters at end of the world as we know it – Asia Times

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Shareholders have been betting tremendously on an AI-driven coming over the past two decades, as tech stocks have led the S&amp, P 500 to a 60 % get. But they also bought the “barbarous artifact” of a financial era that preceded the economy’s identity, pushing the price of silver up by almost as much. Importantly, gold outperformed other hedges by a sizable percentage against the buck.

Why wall against severe distress amid effervescent tech-driven optimism? The answer is a bit could get wrong—catastrophically wrong, in reality. The dollar-based global economic system’s core asset is then tech stocks. The United States has sold US$ 24 trillion more of its property to immigrants than Americans have sold to immigrants.

Graphic: Asia Times

That” net international investment position” of$ 24 trillion, up from$ 18 trillion at the end of Donald Trump’s first term in office, paid for America’s cumulative trade deficit over the past 30 years. For the past 10 years, immigrants have been buying stocks rather than US Treasury bonds, as in the history.

US federal loan is now lower than it was five years ago, thanks to international central banks. If the technology bubble turns out to be a balloon, so will the US dollar. The death of the money may depend on the competition for market share for AI. If, for example, China’s open-source DeepSeek beats ChatGPT and the other British large language concepts, tech shares was tank and, with them, the money.

Graphic: Asia Times

There are many different ways to protect against the money. Some of them are interesting. An American budget deficit of 6 % to 7 % without a war or recession, as incoming Treasury Secretary Scott Bessent told Congress last week, is without precedent. But the currency’s position as a reserve money means that America has first rights on the nation’s capital.

The inflation-indexed US Treasury yields surge, partially fueled by hopes for a higher US gap under Trump, propelled the dollar higher against all major currencies. If US prices increases, so does US interest charges, and the economy’s transfer rate will rise against other currencies, even while the money loses value.

Graphic: Asia Times

But even while all currencies sank against the dollar in response to rising “real” ( inflation-indexed ) Treasury yields, gold rose, breaking a pattern that prevailed from 2007 through 2022.

Graphic: Asia Times

The US and its supporters seized Russian resources in March 2022, breaking the long-term connection between TIPS and metal. China, Saudi Arabia, India, and other central banks slowly shifted resources away from Treasuries into silver. On paper, TIPS and silver offer similar payments: If the money tanks and US prices increase, both assets may gain value.

The distinction is that the Treasury cannot acquire central bank vault gold in the same way it is acquire central banks holdings of its own obligations. Up to 80 basis points ( 0.8 % ) of the rise in TIPS yields during the past six months, I showed in a January 10 analysis, can be attributed to foreign central banks ‘ sales of US Treasury securities.

The hedge fund group has turned northern banks into gold. The price of real gold and the option price on the gold price are both affected by a shift in the relationship. Implied volatility is a standardized measure of the cost of metal choices, and under normal conditions, it falls as the gold rate rises.

That’s because silver mining companies have been the biggest consumers of golden choices, when the gold rate falls, they buy alternatives to lock in their revenue, and vice versa. But in 2024, something fresh happened: The cost of gold possibilities rose along with the golden value.

The gold implied volatility against price forms a” V” in the scatter chart below. That indicates that hedge funds placed wagers on a rise in silver prices.

Graphic: Asia Times

Gold is a standout in the complex of options on macro variables ( stocks, currencies, bonds, and commodities ). While other markets are softer in terms of risk and the price of gold options ( implied volatility ) is trading at a two-year high.

Graphic: Asia Times

Gold’s virtue is that it has a government decree-free value; it is the only form of currency that can be accepted if all else fails. It is the economic resource of last resort. With some exceptions, the bill of nearly all of the major markets has increased alarmingly in relation to economic output over the past ten years.

President Trump is walking a rope, trying to stimulate financial growth through tax breaks while juggling a document non-war, non-recession budget gap. The dangerous nature of this is heightened by Gold’s outperformance.

Observe David P Goldman on X at @davidpgoldman

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While Trump dithers, US lawmakers push 100% tariff on China – Asia Times

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A bill that would revoke China’s Permanent Normal Trade Relations ( PNTR ), previously known as the Most Favoured Nation ( MFN) trade status, and impose a 100 % tariff on a wide range of Chinese goods has been proposed by bipartisan US lawmakers. &nbsp,

Republican John Moolenaar, chairman of the House Select Committee on the Chinese Communist Party, next November introduced the&nbsp, Restoring Trade Fairness Act, which, if enacted, would withdraw China’s PNTR. &nbsp,

He announced on January 23 that Democrat parliamentarian Tom Suozzi may contribute to its promotion by forming a bipartisan bill to the proposed Act. &nbsp,

The newly-inaugurated US President Donald Trump signed an executive order on January 20 that directed the US Trade Representative and the Secretary of Commerce to evaluate congressional ideas regarding China’s PNTR.

Trump had promised to establish a 60 % tax on all Chinese products on the campaign trail, but he has veered away from doing so since taking office on January 20.

The bipartisan compromise that both parties must acknowledge the need to restart our financial ties with China is a big success for both the Select Committee and our country, according to Moolenaar.

The Restoring Trade Fairness Act takes decisive action in line with President Trump’s authority, building on the tax measures passed by three successive governments.

According to the proposed Act, a wide range of Chinese goods will experience a 100 % price. They include pesticides, drugs, nuclear reactor and parts, gas turbine and parts, agricultural and construction equipment, industrial robots, motors and engines, unmanned aircraft, consumer electronic products and weapons. Other products may encounter a 35 % price.

Price increases may be entirely implemented in five times if the Act is passed and enacted. Two decades after the passage, 25 % of the complete work increase may apply. Four decades after the passage, 50 % of the complete duty increase may use. &nbsp,

Some Chinese analysts predicted that the removal of China’s Import standing would result in a 60 % price on all US imports from China in November.

Some Chinese experts predicted that China will be able to address these issues by diversifying its export to other nations. They claimed that China could retaliate against the US by depreciating the Taiwanese money, slashing American make payments, and stifling imports of market metal to the US.

But, Tu Xinquan, professor of the China Institute for WTO Studies, University of International Business and Economics, says in a new article that China should never overlook the negative effects of losing MFN position. &nbsp,

Rejecting Nafta standing results in the US no more granting China the same level of tariff protection, Tu claims. ” The US can then choose which taxes to impose on Chinese goods.”

” Revoking China’s Import reputation will also impact trade in services, intellectual property rights, diplomatic opportunities, engineering controls and officers markets between China and the US”, he says. ” China’s impact on losing the MFN status is much greater than tariff increases.”

Trump stated on January 21 that he is considering imposing a 10 % tariff on imports of all Chinese-made goods as soon as February 1. While it will take time for the US Congress to discuss the 100 % tariff. He defended his action in light of the claim that China is preventing the entry of its fentanyl precursors into North America. &nbsp,

The US president also has the option of imposing a 25 % tariff on Mexico and Canada beginning in February, citing the two neighbors ‘ failure to stop the flow of illegal immigrants and drugs.

AmCham concerns&nbsp,

In addition, according to a survey conducted by the American Chamber of Commerce ( AmCham ) in China, three out of ten US companies are considering moving manufacturing or sourcing to a different country as a result of rising geopolitical concerns.

The China Business Climate Survey, which covers both the week of October 21 through November 15, 2024, before and after the most recent US presidential election on November 5, was conducted. It has a total sample size of 368 member companies. &nbsp,

Only 23 % of the surveyed companies said they were considering leaving China or had already begun, according to the survey conducted in late 2023. &nbsp,

According to the survey conducted in 2024, only 14 % of the responding companies think that the bilateral US-China relationship is expected to improve. However, 51 % of the responding companies said they think the relationship may continue to deteriorate in 2025. &nbsp,

In the 2023 survey, only 24 % of companies think the Sino-US relationship will deteriorate while 30 % believe that the relationship will improve. &nbsp,

The top five issues US businesses are facing in China, according to AmCham China:

  • rising tensions in US-China relations
  • competition from state-owned and/or privately-owned Chinese companies
  • regulatory compliance
  • inconsistent legislative interpretation, ambiguous laws, and strict laws
  • rising labor costs

Understanding our members ‘ viewpoints has never been more crucial, according to Alvin Liu, chair of AmCham China,” US-China relations remain the most consequential bilateral dynamic in the world today.” A stable and constructive relationship that is based on economic and trade ties is essential for both our two countries ‘ prosperity and the stability of the world economy.

According to AmCham’s surveys, about 48 % of the responding companies listed China as one of their top three global investment destinations in 2024, up from 61 % in 2020. Additionally, from 10 % in 2020, the percentage of businesses that no longer listed China as a preferred investment destination increased to 21 % last year.

49 % of AmCham members surveyed last year said foreign companies were treated unfairly compared to domestic companies in the technology and R&amp, D sectors. The figure was 42 % in the 2023 survey.

In 2024, 46 % of respondents claimed their China businesses were profitable, and 18 % claimed to have lost money. In 2021, 59 % of responding members said they were profitable while 13 % saw a loss. &nbsp,

Commenting on American firms ‘ concerns about deteriorating US-China relations, Mao Ning, a spokesperson of the Chinese Foreign Ministry, said this actually reflects how important it is to pursue a steady, sound and sustainable China-US relationship.

” China always views and develops China-US ties in line with the three principles put forth by President Xi Jinping, namely mutual respect, peaceful coexistence and win-win cooperation”, Mao said. We also anticipate that the US will cooperate with China to put China-US relations back on track for sound and steady development.

He Yadong, a spokesperson for the Chinese Ministry of Commerce, stated that the government will continue to support foreign businesses, improve the economic environment, and reduce the negative list in 2025.

Yong Jian contributes to the Asia Times. He is a Chinese journalist who specializes in Chinese technology, economy and politics. &nbsp,

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