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

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

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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Trump already faltering in approach to Putin – Asia Times

President Donald Trump, on&nbsp, Truth Social&nbsp, and in interviews, is pushing the idea that Russia needs to hurry up and make a bargain on Ukraine before Trump, taking advantage of Russia’s financial problems, imposes higher taxes and additional sanctions on Russia.

To emphasize his own thinking about the absurdity of the Ukraine conflict, Trump says that Russia&nbsp, has suffered over a million casualties&nbsp, and Ukraine 800, 000.

Trump’s figures on deaths exceed also Ukraine’s wild projections of Russian deficits. The “official” range pushed by Ukraine’s Zelensky is Russia has suffered 812, 670 deaths to day, while&nbsp, Ukraine has lost 43, 000 dying, &nbsp, according to Zelensky.

It is commonly accepted that&nbsp, the ratio of maimed to dead&nbsp, in the Ukraine war is running 3 to 1, but following Zelensky’s range, Ukraine has lost 129, 000 in full.

On June 14 in the Donetsk community Storozheve, a Russian soldier’s figure was visible close to a Russian tank that had been destroyed. —RFE

Don’t think Zelensky’s figures, as Ukrainian deaths are higher than he says.

Obviously, both parties present losses in their own words. The Ukrainians greatly exaggerate Russian loss, reassure their personal populace and their NATO supporters, while the Russians do not provide any numbers at all.

The best knowledge about Russian deaths comes from a group called Mediazona. Mediazona is a Russian separate media outlet that the Russian state has tried to shut down.

It is strongly anti-Putin. &nbsp, Mediazona’s report&nbsp, on Soviet” confirmed killed” between February 24, 2022, and January 18, 2025, is 88, 726. Using the 3 to 1 amount, that may provide complete Russian deaths to 266, 178, or about one-fourth of what Trump has said.

Trump’s assessment of the Russian economy good echoes what US knowledge has told him. He appears to believe that Russia’s economy is about to decline, which prompts him to urge Putin to act quickly and negotiate a bargain or suffer the consequences.

The American media has been complete of reports that all have the same theme. Russia’s economy is in free drop and in a big issue. Following on from these” themes,” there are rumors that Putin is having domestic issues, has been angry with his financial advisors, and wants some sort of solution.

Anyone planning a costly war in a country where the value of the national currency has fallen abruptly, where interest rates are outrageously high, and where inflation is practically out of control, would normally be worried and alarmed. However, that does not imply that Putin or his ministers are in a state of panic or that the Russian state is about to fall.

The majority of these articles that appear in Eastern media reports lacking sources. Yet where they exist, they are direct. For instance, the pro-Ukraine&nbsp, Daily Mail&nbsp, reports that Oleg Vyugin, a former deputy president of the Central Bank of Russia says that” Russia, of course, is commercially engaged in negotiating a diplomatic end to the conflict”.

Zelensky’s Speech at the 2024 Borys Paton National Prize of Ukraine Award Ceremony on December 10, 2024. ( Volodymyr Zelenskyy/ Standard site )

So far the best non-government review coming out of Russia was published in&nbsp, Foreign Affairs&nbsp, by Alexandra Propenenko. She is a colleague at Berlin’s Carnegie Russia Eurasia Center. She worked at Russia’s central banks until early 2022. Putin’s claim that” Putin is not yet hungry” and that Ukraine’s economic suffering won’t reverse the course is persuasive.

She writes:” The concern for the West is timing. Democratic leaders want the conflict to stop right away. Some experts have even suggested that Putin will need to find an off-ramp in the coming weeks to stabilize the economy and keep his hold on power.

” But European aspirations sleep on a false notion. Russia’s financial difficulties are not yet so severe that they will have a significant impact on the conflict in the near future. The Kremlin should be able to prevent a full-blown problems from arising from its overheated business for at least the following year. Putin will most likely still have the resources to carry out his terrible campaign in Ukraine, as well as the motivation to hold off the West.

Russia correctly now has a labour shortage and entire career. Usually, an economy in trouble is characterized by persons out of work, small pay or no wages, and provide shortages, particularly consumer goods. Although imported goods and some local goods ( butter and eggs, for example ), are expensive but not in short supply, Russia has consumer goods.

Sanctions have opened the door for China, and Chinese goods, like cars, are less expensive than those from European countries. There is no denying that the conflict has caused the labor shortage, but it is difficult to determine how many. Wages are large and increasing.

Russia, in contrast to Europe, has no control over gasoline prices at home and is energy independent. In fact, the European markets are in worse shape than Russia in terms of employment, energy shortages, and fees due to the restrictions being imposed on Russia and the not-so-secret destruction of Soviet pipes ( as well as the arbitrary decision to not renew transit contracts for refineries through Ukraine ).

Germany is already in a crisis, but Russia is not. Some think that the German dollar, the Euro, is&nbsp, living on borrowed period. The value of the Euro may be affected by additional financial decline in Germany and France.

If Russia decides to stop providing gas, oil, and LNG, Putin could significantly worsen the energy issue in Europe than Trump or with new taxes or other financial measures.

The torrent of information about Putin’s problems and Russia’s economy is a part of a circumstance promoted by Biden and his heavy state allies because they mistakenly believe that the US could force regime change in Russia. Trump appears to be supporting that strategy. However, it is contradictory because it only strengthens Russia’s resolve to win the Ukraine war.

Worse still, it harms Trump’s trust with Moscow in getting a bargain to end the war. Trump largely exempt from any connection to the Biden heavy state plan when he took business. He appeared to understand that his attempt to overthrow Putin and Moscow was ignorant and counterproductive. His method gave him an edge, coming into business without any Trump foreign policy bag, which he is now in danger of losing.

Trump and Putin’s anticipated telephone conversation has not taken place, and the White House and NSC have never made any plans to strike up a conversation with them. The reason why is clear.

Stephen Bryen is a former US assistant secretary of defense for plan and a unique journalist for Asia Times. This article, which originally appeared on his Substack newsletter&nbsp, Weapons and Strategy, is republished with permission.

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Singapore blocks access to East Asia Forum for second time over POFMA order

Singapore’s Internet service providers have been given a warning over what they claim is incompatible with the Protection from Online Falsehoods and Manipulation Act ( POFMA ) Office’s ( POFMA ) correction order.

The Ministry of Digital Development and Information ( MDDI) and Prime Minister’s Office ( PMO ) announced this on Friday ( Jan 24 ), two days after the POFMA order was issued.

Wednesday’s get refers to an essay on Jan 14, titled” Singapore’s new prime minister entangled in ancient politicians”. The PMO said&nbsp, it contained misleading claims about the government’s leadership.

Singapore has previously blocked exposure to the East Asia Forum twice because of a POFMA buy, the first of which was in September 2023.

According to MDDI and PMO on Friday,” the adjustment way issued to East Asia Forum on January 22, 2025, required the information to be displayed along with the lies to enable end-users in Singapore to learn both types and create their own judgments.”

East Asia Forum has no followed the instructions that were sent to it, despite three messages to follow the correction’s instructions.

When the program adheres with the “full requirements of the modification direction,” they added, access blocking orders may be canceled.

East Asia Forum is required to issue revision notices for the Jan 14 content, as well as for the social media platforms where the content was reposted, in accordance with the law. It must also offer a link to the president’s explanation.

CNA uncovered a report made at noon on Friday that East Asia Forum had posted a adjustment see claiming the content contained falsehoods at the bottom of the article. The notice also contained a connection to the president’s Factually post stating the government’s explanation. &nbsp,

A response stating East Asia Forum’s position on the matter and why it disagreed with the POFMA attempt was included in the correction see. &nbsp,

East Asia Forum was required to post a correction realize at the top of the content and the website’s main page in response to the 2023 adjustment way.

On Friday, Minister in the Prime Minister’s Office Indranee Rajah even instructed the POFMA office to challenge targeted adjustment way finds to Meta Platforms, Linked In, and X.

” This follows East Asia Forum’s failure to carry the correction notice in its Facebook, Linked In, and X posts linking to the same article”, said MDDI and PMO.

” Meta Platforms, Linked In, and X will be required to communicate a correction notice to all end-users in Singapore who had accessed, or will access, the content”.

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PM Paetongtarn presses investment agenda at Davos

New technologies to strengthen ability in agribusiness, soft power activities and lasting advanced industries

Prime Minister Paetongtarn Shinawatra gives a media interview at the World Economic Forum in Davos, Switzerland. (Photo: Royal Thai Government)
At the World Economic Forum in Davos, Switzerland, Prime Minister Paetongtarn Shinawatra gives a press discussion. ( Photo: Royal Thai Government )

Prime Minister Paetongtarn Shinawatra has been highlighting Thailand’s willingness to welcome foreign investment in the digital economy, agriculture, soft power and sustainable industries at the World Economic Forum ( WEF ) this week in Davos, Switzerland.

At the” Country Strategy Dialogue on Thailand” forum, which is an annual meeting of world leaders and businesspeople, the prime minister on Thursday gave an overview of the president’s vision and plans to top executives from different companies.

Ms. Paetongtarn spoke at length about Thailand’s ability as a possible economic hub, including its proper location, and its position as the second-largest financial hub in Southeast Asia with world-class system and commercial holdings.

She stated that the nation is moving forward with the use of modern technology and new technology to increase its potential in three main areas: agriculture, soft power activities, and lasting advanced industries.

Thailand has been encouraging the use of AI and robots in the agricultural sector to increase the precision and effectiveness of farming practices and manufacturing.

This may help preserve the country’s power as a “kitchen of the world”, she said, according to a conclusion released by her company.

The state also gives great value to the innovative sector, which includes hospitality, and is glad to rank among the world’s most popular hospitality destinations, she added.

According to Ms. Paetongtarn, Thailand has position itself as” a place for pleasure” where visitors from all over the world can create lasting memories and recharge their batteries before moving home.

She stated that Thailand is also trying to be a hotspot for the medical and health sectors, which are anticipated to quickly become a significant contributor to the nation’s ongoing economic development.

Green plan

Thailand also supports the natural world plan by encouraging bio-based companies and adopting the bio-circular-green (BCG) financial model, which includes green technology and investment.

She noted that the development of an intensive ecosystem for electric vehicles was also underway as she turned to innovative industries that may shape the country’s future. Additionally, Ms. Paetongtarn noted that the development and operation of new data centers is helping to advance the modern business.

Thailand also aims to raise its capacity of using renewable energy, especially solar, wind and biomass, to generate electricity by at least 50 % by 2040, she added.

The top said that in developing its online economy, Thailand now focuses on two key elements: modern facilities and human resources.

She said the state works to attract more foreign investors to invest in advanced industries like cloud services, data centers, and semiconductor production in Thailand while encouraging the development of economic technology to give local businesses more opportunities to compete at the international level.

The prime minister also cited the advantages of multilateral efforts to promote free trade and investment, adding that Thailand now intends to start negotiations with other nations and territories, including the European Union ( EU) and South Korea.

She also emphasized the value of all countries collaborating to create harmony while pursuing growth and success.

Thailand is your partner who is determined to make investments for a better potential, according to the PM.

On Saturday, Ms. Paetongtarn will make her return to Thailand.

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Chinese gambling kingpin ‘abused in Thai jail’

“They wanted a colony. I wanted to do business,” She Zhijiang says of his relationship with the Chinese government and his business activity in Myanmar.
” They wanted a settlement. She Zhijiang described his business dealings with the Chinese state as” I wanted to do business.”

His attorneys have told Interpol that they fear for his living after he claimed to be a Chinese detective, and that he received “inhumane care” in a Thai prison.

China-born She Zhijiang, who has Thai membership, has suffered crime that has left him able to walk and has received unnecessary visits from Chinese officials, the lawyers said in a letter to the global police organisation, seen by Reuters.

The magnate was detained in Bangkok in 2022 under the influence of Beijing, which claims he is responsible for operating illegitimate online gambling in Southeast Asia.

In their notice to Interpol, dated Jan 9 and shared with Reuters, She’s doctors said he has been kept in solitary confinement, chained, denied health care for a spinal injuries and denied call with his community.

The billionaire has been subjected to “particularly cruel therapy” and human rights violations of an “institutional nature”, wrote the doctors, Clara Gerard-Rodriguez and Pierre-Olivier Sur of the France-based strong FTMS Avocats.

” These components lead us to really fear for our client’s living”, according to the professionals, who are seeking to thwart the Interpol red see seeking She’s repatriation.

Thailand’s Ministry of Justice declined to comment, referring concerns to the Department of Corrections, which did not immediately respond. The Beijing embassy in Bangkok did not respond to a request for comment or to listen to a telephone call.

China’s Ministry of Foreign Affairs did not respond to requesting post right away. Requests for comment from the Ministry of State Security were unsuccessful.

An Interpol red see must comply with the organisation’s rules,” under which exercise of a political, military, religious or cultural essence is totally forbidden”, an Interpol spokesperson said, declining to comment further. ( Story continues below )

In Mae Sot city of Tak territory in March 2020, a game, amusement, and hospitality complex is visible from the Thai side of the border. ( Reuters File Photo )

In Mae Sot city of Tak territory in March 2020, a game, amusement, and hospitality complex is visible from the Thai side of the border. ( Reuters File Photo )

Trafficking syndicates

According to her, his detention was politically motivated and was a result of his refusing to follow Chinese authorities ‘ instructions to build a town along the Thai-Myanmar border.

” They wanted a colony. She stated to the network in a documentary that was broadcast on September 26 that she wanted to do business.

Since the abduction and cross-border rescue of a Chinese actor this month sparked a social media firestorm, China has increased its pressure on Southeast Asian countries to stop gambling in the country and crack down on scam gangs operating from the Chinese border.

In recent years, the area has grown popular for gambling syndicates, many of whom are of Chinese descent, and some of which involve human trafficking and fraud.

She was moved to a Bangkok maximum security prison where people who are serving lengthy sentences and death row, according to his attorneys, a day after the Al Jazeera documentary aired.

In late October, the lawyers said, She was “brutally tackled” by officers and inmates who accused him of violating discipline. Unable to walk or stand, he now uses a wheelchair, they said. A police report that Reuters saw also included the incident.

According to the attorneys, Chinese embassy officials twice in December visited She in prison against his will and fought to have him sent back to China. In one meeting, they said, the officials suggested his family and friends might need help from the embassy, which he interpreted as a threat. ( Story continues below )

]embedded content]

Gambling empire

According to Gerard-Rodriguez,” China’s blatant abuses of process and gross human rights violations” should not alone constitute an obstacle to extradition, according to Gerard-Rodriguez.

The claims could not be independently verified by Reuters.

At the time of his arrest, She headed a gambling empire that developed a$ 15-billion casino, entertainment and tourism complex called Shew Kokko on the Myanmar-Thai border. The group, Yatai International Holdings Group, also had investments in Cambodia and the Philippines.

The company has denied involvement in any criminal activities, including human trafficking.

The tycoon claimed to be hired by China’s Ministry of State Security, the country’s main agency tasked with regulating foreign intelligence, in exchange for the dismissal of a criminal case against him.

He claimed to have worked alongside Alice Guo, a former mayor of the Philippines, and Guo Hua Ping, a Chinese national. She was fired from her position last year due to her misconduct, and the Philippine Senate conducted an investigation into possible ties to offshore gambling operations aimed at Chinese clients.

Guo, facing graft and money laundering charges, has denied being a Chinese spy and rejected other accusations as malicious.

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‘No intention to fuel racial hate’: Johor event organiser says China flags on dragon puppet a ‘misunderstanding’

SINGAPORE: The latest incident of China flags displayed at a cultural event in Johor was a “misunderstanding” and not intended to “fuel racial hate or pro-China sentiments”, its organiser said on Thursday ( Jan 23 ).

The tragedy in Muar, which followed similar incidents in Tangkak and Perak, sparked outrage among locals.

But experts told CNA that foreign flags flown as a” symbol of friendship and solidarity” or as a “celebration of cultural exchange” should not be politicised.

A dragon puppet with China’s flags hanging from its left flank was featured in the procession in the Muar last Saturday ( Jan 18 ). The dragon’s image and video went viral, leading to calls from users for action from Malay king Sultan Ibrahim Sultan Iskandar and his brother, Johor regent Tunku Ismail. &nbsp, &nbsp,

Under the National Emblems ( Control of Display ) Act 1949, the offence of displaying a foreign flag is punishable by up to six months ‘ imprisonment, a fine not exceeding RM1, 000 or both.

Dr Lim Teck Guan, president of the Muar Tiong Hua Association, which organised the event, told CNA the police probe has been” settled” with no charges brought that he is aware of.

We borrowed the lion puppet from our own association users in Melaka, and we did not realize there would be Chinese flags on the side, Lim claimed to be unaware. &nbsp,

Participants in the march were all Malaysians and part of the organization, Lim added. &nbsp,

His group has no affiliation with China. ” We do not encourage pro-China thoughts nor are we pro-China”, Lim stressed.

The historical procession was part of the institution’s 20th anniversary celebrations and even featured cat dance performances. According to Muar city police chief Raiz Mukhliz Azman Aziz on January 19, the procession made its way through some major highways.

The lion puppet, said to be the longest in Malaysia, had the Jalur Gemilang, Malaysia’s national symbol, on its right side and colors of China on its returned, Raiz said.

NO ISSUE IF PURPOSE IS FRIENDSHIP AND SOLIDARITY, EXPERTS SAY

In recent months, another displays of the Foreign symbol have caught the attention of the public.

Last month, authorities in Tangkak, Johor investigated the use of a jet copy featuring China’s symbol at a festival. &nbsp,

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Thailand and China to set up anti-scam centre

China to launch a distinct activity in Mae Sot, which is located opposite the infamous Myawaddy&nbsp center of murder.

Buildings in the Shwe Kokko “scam city” in Myawaddy Township are seen from the Thai side of the Moei River in Tak province.(Photo: Angshu2193 via Wikimedia Commons)
From the Thai part of the Moei River in Tak state, you can see the “scam area” of Shwe Kokko in Myawaddy Township. ( Photo: Angshu2193 via Wikimedia Commons )

Thailand and China will work up to stop the rapidly expanding improper call centers along the Thai-Bangladesh frontier with Myanmar and Cambodia, which are frequently run by undercover agents, and attempt to mislead people through phone and online frauds.

Thailand’s police announced on Friday that a synchronization center may be established at the Thai federal authorities hq in Bangkok, while Taiwanese authorities are planning a second operation in the Mae Sot area of Tak, across from Myawaddy in Myanmar, a major hub for the con call centers.

” This centre ( in Bangkok ) will work together ( with China ) to investigate and combat call centre gangs based in Myawaddy, Myanmar, and along the Cambodian border, which involve many Chinese and Thai nationals”, the Royal Thai Police said in a statement.

The cooperation center is scheduled to open in February, according to the statement, which was released following a Bangkok safety meeting between Thai and Chinese security officers.

Southeast Asia— particularly border areas between Thailand, Myanmar, Laos and Cambodia — has become a hub for telecoms and various online scam since the Covid-19 crisis, according to the United Nations, which says hundreds of thousands of people have been trafficked to work in con facilities.

In Thailand, increasing public pressure is being put in place to stop the scam factories where workers are drawn in from all over the world and are frequently treated viciously.

China, also, has become extremely concerned, particularly following the violence and cross-border recovery from Myanmar of Chinese professional Wang Xing.

At a gathering in the Chinese capital of Kunming on Tuesday, officials from China, Myanmar, and Thailand came together to discuss eradicating telecoms fraud centers in Myanmar.

A Thai defense group and Soe Win, the second-in-command of the Myanmar junta, met this week in Nay Pyi Taw to explore a crackdown on online scams and human trafficking, according to Myanmar state media.

The state-run Global New Light of Myanmar paper said this week that junta officials had sent up 55, 000 foreign immigrants, including about 53, 000 Chinese, from con materials to their home nations between October 2023 and January 2025.

Additionally, the report suggested that Myanmar’s neighboring nations supported fraud functions, a state that Thai Deputy Prime Minister Phumtham Wechayachai rejected on Thursday.

” This concern is not just about Thailand”, said Mr Phumtham. Myanmar and China also have to play a role in this.

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First flex of Trump’s peace through strength strategy – Asia Times

With its “peace through power” method, which the new Trump administration has a muscular launch, the organization has previously impressed senior allies and partners in the Indo-Pacific.

US Secretary of State Marco Rubio and India’s S. Jaishankar met briefly days into his new position to highlight the importance of Asia in Trump’s international plan.

In a phone conversation with Rubio’s rival in the Philippines, Rubio reiterated America’s “ironclad” responsibility to protect its South Asian mutual defense treaty alliance in the event of an armed conflict with China in the South China Sea.

In addition, Gilbert Teodoro Jr, the fresh US National Security Advisor, and Mike Waltz, the Philippine Defense Secretary, spoke privately to confirm the “enduring empire between the Philippines and the United States.” &nbsp,

Just days into company, the new Trump administration also convened the latest generation of the Quadrilateral Security Dialogue, better known as the” Quad”, which brought together top officials from Australia, Japan, India and the US.

In a shared speech, Rubio and his Triple rivals underscored their” shared commitment to strengthening a Free and Open Indo-Pacific where the rule of law, political principles, independence, and territorial integrity are upheld and defended”.

The Quad ministers&nbsp made it clear in a lightly veiled criticism of reactionary forces, most importantly China, that they” strongly resist any coercive behavior that seek to change the status quo by force or force.”

In contrast, President Trump’s second term saw a more logical approach by firing and criticizing Iran’s hawks and appointing pragmatists like Michael DiMino as the new top Middle East official for the Pentagon.

New important appointments will reinforce the message of so-called “prioritizers” led by Elbridge Colby, a candidate for under-secretary of security for policy who has emphasized the need for a more China-focused US foreign policy, in conjunction with Trump’s call for ending the “ridiculous war” in Ukraine and growing pressure on Western allies to make their own defense burdens.

The second Trump administration appears to be double down on its defense alliance and deterrence strategy in the Indo-Pacific by shifting America’s strategic focus from its old theaters in Europe and the Middle East.

Trump’s inauguration speech put his commitment to ending world wars to the test by setting the tone for his foreign policy. ” It will be my most cherished legacy to be one who makes peace and unites people.” That’s what I want to be – a peacemaker and a unifier”, he declared, directly taking credit for the newly implemented ceasefire in Gaza, which was largely negotiated by Trump’s Middle East envoy Steve Witkoff.

” We will build the strongest military the world has ever seen, just like in 2017,” he added. We will measure our success not only by the battles we win, but also by the wars that we end, and, perhaps most importantly, the wars we never get into”, he added, echoing his administration’s “peace through strength” mantra.

Trump has signaled a more pragmatic approach to adversaries, most notably Iran. He fired former Iranian envoy Brian Hook, who opposed a “maximum pressure” campaign against the Middle Eastern power that oversaw the Department of State’s most recent transition, just hours into his second term. &nbsp,

Meanwhile, Trump also publicly attacked his former national security adviser, John Bolton, as a “warmonger” who oversaw disastrous interventions in the Middle East. Both Bolton and former secretary of state Mike Pompeo, both of whom had pushed for confrontation with Iran, were removed from their security profiles.

Trump’s Middle East strategy will therefore be influenced by more pragmatic voices. Following his successful negotiation of the Gaza ceasefire, Witkoff has been appointed as Trump’s new Iran envoy.

” He’s certainly&nbsp, someone I would use. He has done a fantastic job. . . Trump praised his new Iran envoy and prospects for a new nuclear deal with Iran, saying that Steve has a wonderful way of him. ” It would really be nice if that could be worked out without having to go that further step]of military confrontation ] …Iran, hopefully, will make a deal”.

The Pentagon’s new Middle East top official Michael DiMino, who is known for his more critical stance on Israel and support for a more “offshore balancing” strategy in the Middle East, will complement Witkoff’s regional diplomacy.

” There are no vital or existential U. S. interests in the]Middle East ] region”, DiMino&nbsp, argued last year in a webinar, underscoring the need for a major reorientation in American foreign policy. He continued,” We’re really there to fight Iran, and that’s really at the behest of the Israelis and the Saudis,” instead of advocating for a more limited American military presence in an increasingly multipolar region.

That viewpoint tracks with the Pentagon’s incoming top policy official, Elbridge Colby, an influential strategic thinker who oversaw the formulation of the first Trump administration’s National Security Strategy.

In a major conference last October, Colby argued that we must give the potential for conflict with China a priori in order to avoid it. ” It is empirically true that China is getting ready for war, and we do have the potential for a multi-front war and a World War III in the upcoming years, and we’re not prepared.”

Similar to DiMino, Colby has also drawn on his own bitter experience in dealing with the Middle East, particularly when he was a member of the Coalition Provisional Authority in Iraq in 2003 and of the President’s Weapons of Mass Destruction Commission between 2004 and 2005 while serving under the George W. Bush administration. &nbsp,

Trump’s other top cabinet members have also expressed openness to a less confrontational policy in the Middle East in favor of focusing on the broader Indo-Pacific region, particularly China, while adopting more traditionally hawkish views on Iran.

Rubio made it clear during his confirmation hearing that he would support “any arrangement that allows us to have safety and stability in the region but one in which we’re clear-eyed” about threats posed by adversaries like Iran. The more pragmatic tone on Iran, coupled with a concerted push to end the conflict in Ukraine, underscores China’s centrality to the second Trump administration’s grand strategy.

Rubio has characterized China&nbsp, as” the most potent, dangerous and near-peer adversary this nation has ever confronted”, thus the urgency of doubling down the Quad and existing military alliances in the Indo-Pacific. National Security Adviser Waltz, who is also known as an Iran hawk, has also emphasized the need for America to “quickly wind up the conflicts in Ukraine and the Middle East to free up military assets to confront and deter China.”

Trump’s defense secretary nominee, Pete Hagseth, who, similar to Waltz, also served in America’s wars in the Middle East, has argued along similar lines and has criticized the outgoing Biden administration for not sufficiently decoupling from conflicts in the Middle East in favor of a China-centered strategy.

By and large, America’s top Asian allies seem optimistic about the second Trump administration’s signaled direction. Australian Foreign Minister Penny Wong referred to bilateral ties with Washington as “our most important strategic relationship” prior to her meeting with Rubio.

On the eve of the first Quad meeting, just hours into the new administration, she said,” It’s a demonstration of the collective commitment of all countries to the Quad, an ironclad commitment in this time when close cooperation in the Indo-Pacific is so important.”

Japan’s top diplomat was even more effusive about the new administration’s nuanced approach to foreign policy and sound pragmatism.

” I was very impressed that]Rubio’s ] explanation of the Quad didn’t mention China by name and antagonize it. I had thought of him as a hard-liner against China, but as we talked, I found he was a well-balanced individual”, Japan’s Foreign Minister Takeshi Iwaya&nbsp, said after the Quad meeting this week.

Follow Richard Javad Heydarian on X at @Rich Heydarian

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Move over CHIPS Act, Stargate is the future – Asia Times

The US$$ 500 billion Stargate AI system project, which was announced by US President Donald Trump, has sparked media coverage and stoked industry, deflecting attention from the less attractive details of TSMC’s initial chip factory’s opening, and suffocate the more contentious debate over the future of America’s high-tech restoration.

On January 21, the day after his inauguration, Donald Trump made an appearance with Oracle’s Larry Ellison, Softbank’s Masayoshi Son, and OpenAI’s Sam Altman to make an announcement that artificial intelligence will be the “largest AI system job by much in story… creating over 100, 000 National work about immediately,” as Trump put it. Given some of the responses it has generated, the film went “viral” – a suitable information.

In Abilene, Texas, 10 properties measuring half a million square foot are currently under construction, with additional 10 more on the drawing board, and additional ones will be constructed at locations that are being evaluated nationwide. These data locations may be full of machines equipped with Nvidia’s fresh Blackwell AI chips, which are made by Taiwan’s TSMC, the world’s top silicon manufacturer.

” I’m gonna support, a bit, through emergency pronouncements”, said Trump, “because we have an emergency, we have to get this thing built”.

” They have to make a lot of power, and we’ll make it possible for them to get that generation done pretty easily”, he added, “at their personal crops if they want”.

In other words, Trump intends to supersede power regulations that may put off the project, leading to a significant increase in power generation capacity driven by the purchase intentions of a select few big high-tech companies.

Oracle’s Ellison said,” Thank you, Mr President. We certainly couldn’t do this without you”. Altman and Son shared the sentiment. And they probably couldn’t, at least not as quickly and efficiently.

If Joe Biden or Kamala Harris had been attempting the project in the White House, it would likely have been hampered by attempts at social engineering and unionization of the workforce. For the same reason, Stargate is based in Texas, not California.

Masayoshi Son said,” We wouldn’t have decided, unless you won. Yesterday, we agreed. We signed. To achieve this, we would immediately begin deploying 100 billion dollars with the intention of making 500 billion dollars within the next four years, within your mandate.

As explained by OpenAI, the initial equity investments in Stargate will come from SoftBank, Oracle, OpenAI and MGX, the technology fund based in Abu Dhabi. The lead partners are SoftBank and OpenAI, with OpenAI acting as the company’s operational manager and SoftBank as its financial advisor. Softbank’s Son will be the project’s chairman.

Nvidia, Arm ( the British semiconductor design company owned primarily by Softbank ), Microsoft, Oracle and OpenAI are the project’s technology partners. Oracle, Nvidia and OpenAI will build and operate the computing system.

OpenAI has long-standing relationships with both Nvidia and Microsoft. In Japan, Softbank and Nvidia have partnered to set up a nationwide AI grid.

Following Trump to the podium, Ellison, Son and Altman talked about healthcare-related applications from AI-enabled cross-referencing of health records and procedures to cancer detection and treatment, including the development of mRNA cancer vaccines.

But there are other possibilities, including factory automation and national defense. The name Stargate, of course, is reminiscent of Elon Musk’s Starlink satellite company.

The stock market approves of the concept. Oracle’s share price was up 7.2 % on Tuesday and another 4.6 % in after-hours trading. The share price of Softbank Group increased by more than 10 % on Wednesday and by another 5 % on Thursday in Japan ( across the International Date Line ). The share prices of Nvidia, TSMC, Microsoft and server maker Super Micro also rose.

Stargate is pitched as a made-in-America-for-America project, but the Nvidia AI processors at the core of the data centers will be made by Taiwan’s TSMC, at first entirely in Taiwan, then partly in the US.

At its new factory in Arizona, where TSMC is most likely to manufacture integrated circuits, on January 10, TSMC began producing integrated circuits for Apple. AMD and Nvidia are likely to be its new customers. For the first time in our country’s history, our country’s leaders are producing cutting-edge four-nanometer chips on American soil, making American workers on par with Taiwan in terms of yield and quality, according to incoming commerce chief Gina Raimondo.

TSMC Chairman and CEO C C Wei, speaking to investors on the company’s 2024 earnings call on January 16, confirmed this:

” We were able to pull ahead the production schedule of our first fab in Arizona, building on the successful result of our earlier engineering wafer production. Our first fab, using N4 process technology and yield comparable to those of our fabs in Taiwan, has already entered high-volume production in 4Q ’24. We anticipate a smooth beginning of the manufacturing process because we are confident that our factories in Arizona and Taiwan will offer the same level of manufacturing quality and dependability.

Wei added that “our plans for the second fab and third fab in Arizona are also on track.” Based on the needs of our customers, these fabs will use even more advanced technologies like our N3, N2, and A16.

In plain English, this means that TSMC will be making 4nm chips in Arizona starting this year and progress to 3nm, 2nm and 1.6nm ( 16-angstrom ), probably by the end of the decade. In terms of 3nm production, TSMC is already ahead of Samsung and Intel, who are both likely to be 1 nm and smaller. TSMC currently makes Nvidia’s Blackwell AI processors using its 4nm process.

All of these process technologies were and are being developed and produced in Taiwan, close to the company’s R&amp, D, and where the procedure is well-established and the capacity is much larger. This suggests that regardless of any agreement Trump has with China, he won’t want to disrupt Stargate’s main production.

A retired Silicon Valley executive and advisor to the US government on the subject of high-tech competitiveness said,” The game with the current administration is zero-sum,” in response to the three executives ‘ praise for Trump.

And that it is given that Trump has already replaced and exceeded$ 500 billion in government funding after cutting more than$ 300 billion from the Inflation Reduction Act and Department of Energy loan programs under his administration, which were then replaced by$ 300 billion from the private sector.

A West Coast venture capitalist who is not a fan of Trump wrote in an email that” It’s all part of the mad scramble for more computing power and energy to fuel it… Remember Trump’s first term. He enjoys planning big announcements, which credit him with making investments that were already planned or that never occur. Everyone tries to ingratiate themselves with Dear Leader, but it’s all part of that. Because that’s what you have to do in an autocratic state” .&nbsp,

Elon Musk, CEO of Tesla, wrote on X,” They don’t actually have the money. SoftBank has well under$ 10 billion secured. I have that on good authority”. However, if there is one thing Son excels at, it’s raising money. In 2017, Softbank launched the Vision Fund, a technology-focused venture capital fund with more than$ 100 billion in capital – the world’s largest such fund at the time.

For Musk, whose xAI competes with OpenAI and has taken it to court, Stargate is a powerful new competitor. And perhaps worse than that, Ellison, Son and Altman – high-tech moguls like himself – now also have Trump’s ear.

If the build-out of Stargate’s data centers proceeds according to plan, Microsoft, Google and Amazon are likely to lose their first-mover advantage and oligopolistic profit margins in AI-related cloud computing. Oracle, which offers cloud computing services in 25 countries around the world, has a significant opportunity in this regard.

Another critic, physician and biochemist Robert Malone, has published an essay entitled” AI, mRNA, Cancer Vaccines and” Stargate”: Reality check. Curb your enthusiasm, and beware of grifters”.

He writes:” I can’t believe that we are being spoon-fed this hype from the likes of Oracle’s Larry Ellison… Having this guy lecture us on mRNA vaccines for cancer is over the top. &nbsp, This is so amazingly ( and dangerously ) naive that I can hardly believe I am hearing it”.

Maybe so, but Ellison, Son and Altman were delivering a pitch for AI infrastructure, not explaining the technology roadmaps of companies that will use their data centers. They may be overly optimistic, but they are genuinely interested in healthcare and think AI can contribute significantly to the analysis of sizable amounts of medical-related data.

Malone also criticizes “banking some brand-new” cancer moonshot” television programs named after science fiction TV shows.” So, is Stargate a wise use of money or a reckless boondoggle? In reality,$ 500 billion is nearly ten times the$ 52.7 billion in grants and loans provided by the CHIPS Act. Only time will tell.

Follow this writer on&nbsp, X: @ScottFo83517667

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