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China sharpens trade war tools ahead of Trump’s arrival – Asia Times

On: December 1, 2024

In: Asia

An export control list issued by the Chinese government to restrict the export of about 700 dual-use items took effect on December 1 and will cover more items to serve China’s future trade and national security needs.

The list was implemented to fulfill the basic requirements of the current Export Control Law and the newly released Regulations on Civil-Military Dual-Use Items to restrict the export of items including nuclear, biological and chemical products and missiles, according to the Chinese Ministry of Commerce (MoC).

In addition, a system of export control classification numbers (ECCN), similar to that of the United States, was also implemented to cover 10 broad categories and five product groups.

The MoC said the new export control list will help guide all parties to comprehensively and accurately implement China’s dual-use items export control laws and policies, improve the efficiency of related governance, better safeguard national security and interests, and fulfill international obligations such as non-proliferation. It said it would expand the list if needed.

The new list and the ECCN system were launched after the State Council unveiled the Regulations on Civil-Military Dual-Use Items on October 19. The new regulations were approved in a meeting of the State Council standing committee on September 18 after G7 countries raised concerns in April about Chinese firms’ shipments of weapon components to Russia.

It remains unclear whether the new export control list will stop the export of dual-use items from China to Russia. Some Chinese commentators said the list will at least prevent the US from obtaining China’s critical metals, rare earths and key electronic parts.

“The launch of the export control list is a precise attack to the heart of the US military industry,” a Jiangsu-based military columnist wrote in an article published on November 28. “This is not an ordinary ‘embargo’ but an all-round blockade to completely cut off the Chinese supply chain that the US relies on.”

He wrote the list covers a wide range of products, including computers, electronic devices, chemicals, sensors, lasers and aviation navigation systems. If China uses the list to fight a technology war, the US won’t be able to find alternative products elsewhere, the writer said.

“A number of US defense contractors have been sanctioned by China due to their arms sales to Taiwan,” he wrote. “China has a decisive position in the supply chain of key materials such as rare earths, and the US cannot circumvent it.”

The writer also links the matter to a smuggling case in which a Chinese person surnamed Du was arrested for carrying a bottle of gallium powders when departing the country earlier this year. He says this case is a warning to those who want to make money by illegally exporting China’s key raw materials.

Export control loopholes

In August 2023, China imposed export restrictions on gallium and germanium. Gallium is used in compound semiconductors, which are often used to improve transmission speed and efficiency in radars. Germanium is used in night-vision goggles and the solar cells used to power many satellites.

Last December, China imposed export controls on graphite, a key raw material for making electric vehicle batteries. In September this year, the country started restricting the export of antimony, which can be used in military equipment such as infrared missiles, nuclear weapons and night-vision goggles, and as a hardening agent for bullets and tanks.

US Customs data shows that China’s shares of total US imports of these commodities haven’t moved much since China imposed export controls on gallium, germanium and graphite in 2023, the Peterson Institute for International Economics (PIIE), a Washington-based think tank, said in an article on October 31.

PIIE said China requires exporters to file paperwork that includes export agreements, descriptions and certifications of end consumers and intended end use and information on the importing company but all these requirements will only increase compliance work and not actually reduce exports.

Besides, it said China may not really want to starve US supply chains of critical minerals as this will push the US to source raw materials elsewhere.

Fentanyl precursors

While Beijing wants to use its critical minerals as a bargaining chip in potential trade talks, US President-elect Donald Trump wants China to stop shipping fentanyl precursors to Mexico and the US.

On November 25, Trump said he would sign an executive order imposing a 25% tariff on all goods coming from Mexico and Canada to force them to crack down on illegal immigration and drug smuggling into the US.

He said he would charge an additional 10% on products imported from China, above any additional tariffs, until Beijing cracked down on fentanyl smuggling.

“The idea of China knowingly allowing fentanyl precursors to flow into the US runs completely counter to facts and reality,” said a spokesperson for the Chinese embassy in Washington.

In August 2024, China added several fentanyl precursors, including 4-AP, 1-bloc-4_AP and norfentanyl, to its list of controlled precursor chemicals and started requiring exporters to obtain a license.

In October, the US Justice Department announced charges, including attempted distribution of synthetic opioids and fentanyl precursors, against eight China-based chemical companies and eight employees.

“As Trump will probably use the International Emergency Economic Powers Act (IEEPA) to impose a 10% tariff on Chinese goods, he doesn’t need to go through any lengthy Section 301 investigations or seek approval from the Congress,” a Beijing-based financial columnist says. “This will make the United States’ tariff policy more arbitrary and unpredictable in the Trump 2.0 era.”

He says people should not underestimate the negative impact of this 10% tariff as it could be the beginning of a bigger trade war.

Read: China calculates impact of losing most favored nation status

Gautam Adani breaks silence on US allegations to say his group is committed to compliance

By: Jing Write

On: November 30, 2024

In: Asia

NEW DELHI: Adani Group founder Gautam Adani responded for the first time on Saturday (Nov 30) to allegations by US authorities that he was part of a US$265 million bribery scheme, saying that his ports-to-power conglomerate was committed to world class regulatory compliance. The indictment is the second major crisis to hit Adani in just twoContinue Reading

Beijing vows retaliation if Biden curbs Chinese chip firms again – Asia Times

By: Bolen C

On: November 29, 2024

In: Asia, Technology

The Chinese government has vowed to “implement necessary measures” after media reports said the United States would add more Chinese semiconductor firms to its Entity List.

He Yadong, spokesperson of the Chinese Ministry of Commerce, on Thursday threatened to retaliate against Washington after Reuters reported on November 22 that the Biden administration would soon unveil a new round of sanctions to ban shipments of US chips and chip-making equipment to 200 Chinese chip companies.

Media reports said the curbs would be announced before November 28, or Thanksgiving Day, but they have not yet been announced as of this writing.

Some Chinese commentators said China should further tighten its export rules to prevent US companies from obtaining its metals such as germanium and dysprosium.

“China has dominated the supply of precious metals such as germanium and dysprosium, which are the most important raw materials in the semiconductor industry,” a Jilin-based columnist says in an article. “Our country can completely stop the export of these raw materials, forcing western countries to delay the pace of their technological development.”

He said this move would provide more time for China to catch up with the US in terms of technological development.

He said China should consider forming an alliance with Singapore and Japan to jointly stop the US from obtaining key raw materials to make chips.

Meanwhile, some other Chinese commentators are not optimistic that China can unveil any effective countermeasures against the US.

A Henan-based writer using the pseudonym “Xiaoxi Lishi” published an article with the title “200 Chinese chip firms will be sanctioned. This is game over!”

“The potential sanctioning of 200 Chinese chip companies is undoubtedly a heavy blow to the fast-growing chip industry in China,” the article says. “If chip foundries or packaging firms cannot get their core machine parts, they will have to stop production and suffer from heavy losses.”

The writer says such a disruption will also extend to the upstream and downstream sectors, slowing China’s industry upgrade. He adds that the only thing that China can do is to boost its investment in research and development and form new partnerships with other countries.

200 Chinese firms

In late July, Reuters reported that the Biden administration planned by the end of August to expand the coverage of its Foreign Direct Product Rule (FDPR), which was first introduced in 1959 to control the trading of US technologies.

The wire service also said that the US plans to add about 120 Chinese entities, including six chip foundries and their hardware and software suppliers, to its restricted trade list.

But the White House postponed the announcement as American chip and chip-making equipment makers are worried that their revenue in China will be sacrificed.

Citing an email sent by the US Chamber of Commerce to its members on November 21, Reuters reported that the US Commerce Department planned to publish the new regulation “prior to the Thanksgiving break.”

The email also said that another set of rules curbing shipments of high-bandwidth memory chips to China was expected to be unveiled in December.

Analysts said that these would be the Biden administration’s last two rounds of curbs against China’s chip sector before Republican President-elect Donald Trump takes office on January 20, 2025.

N+3 process

The Reuters report about the potential sanctions against 200 Chinese firms came a few days after Richard Yu, chief executive of Huawei Consumer Business Group, said on November 15 that Huawei would launch its Mate70 flagship smartphone on November 26.

Chinese media said the premium Mate70 models would use a new 7-nanometer processor known as the Kirin 9100, which is said to be comparable to Qualcomm’s Snapdragon 8 Gen 2 and 8+ Gen 1 for central processing units (CPU) and graphic processing units (GPU), respectively.

They expected Chinese chipmaker Shanghai Manufacturing International Corp (SMIC) to use its deep ultraviolet (DUV) lithography machines and N+3 process to produce the 9100 processor.

But on November 26, Huawei’s fans were disappointed by news that the Mate70 Pro would use a chip called Kirin 9020, which is only a fine-tuned version of the existing Kirin 9010 processor made with N+2 process.

The N+3 process can feature 130 million transistors per square millimeter while the N+2 one can only achieve 89 million transistors per square millimeter.

Some Chinese commentators said the failed debut of the 9100 chip showed that Huawei and SMIC were unable to improve their foundry technology without ASML’s extreme-ultraviolet (EUV) lithography machine.

Read: Huawei’s Mate70 to flex high-end chip self-sufficiency

Read: TSMC’s 7nm chip ban targets China’s AI chipmakers

Read: US to tighten China chip squeeze with old Cold War rule

Read: China: US high-tech investment ban to hurt global supply chain

Read: China boxed out of high-NA lithography race to 1nm chips

Southern flooding disrupts train, bus services

By: Barkar Nash

On: November 29, 2024

In: South-East Asia

PUBLISHED : 29 Nov 2024 at 14:59

The bus station in the municipality remains flooded after downpours in Yala and other southern provinces. (Photo: Bor Kor Sor 99 Facebook account)

The railway agency has cancelled some trains servicing the southernmost areas, while bus operators cannot go beyond Hat Yai district in Songkhla until further notice due to heavy rain inundating the tracks and roads.

The State Railway of Thailand (SRT) on Friday announced the cancellation of three special express trains and one rapid train serving Hat Yai and other southernmost stations as the downpours damaged the railway in the region.

Cancelled trains include:

Special express trains No. 31/32: Bangkok – Hat Yai – Bangkok
Special express trains No. 37/38: Bangkok – Sungai Kolok – Bangkok
Special express trains No. 45/46: Bangkok – Padang Besar – Bangkok
Rapid train No. 171/172: Bangkok – Sungai Kolok – Bangkok

The SRT said that rapid train No. 169/170 between Bangkok and Yala will now end its service at Phatthalung.

Transport Co, a state enterprise under the Transport Ministry, said on Friday that all buses from Bangkok to Yala, Pattani and Sungai Kolok will stop in Hat Yai district, as all bus stations and many roads in the southernmost provinces are underwater. The bus line between Bangkok and Songkhla via Hat Yai also ends its operation at Hat Yai.

The train and bus companies reported that these changes will remain in effect until further notice.

Some firms roll out flexible work arrangements ahead of mandatory guidelines next month

By: Marcus Ching

On: November 29, 2024

In: South-East Asia

Nearly 30 per cent of Chye Thiam’s staff have some form of flexible work arrangement (FWA).

The service provider is among companies rolling out FWAs ahead of mandatory guidelines, which kick in on Sunday (Dec 1) and require businesses to have a proper process for requests.

The firm said providing such flexibility has helped to retain current staff better and attract new talent. This includes Mr Khoo Hock Soon, who quit a job that required him to work regular hours to join Chye Thiam.

“This timing of 3pm to 9pm fits me. In the morning, I can do my chores,” said the cleaner.

The company said it is working with clients and people managers to smooth out concerns on disruptions.

“Challenges faced at this juncture is the receptiveness of the service buyer to FWA,” said Mr Frankie Yung, human resources and administration director at Chye Thiam.

“(An) internal mindset change has to also come in place, whereby operation leaders and supervisors have to rethink and rejig how they do planning and scheduling of the workers on the ground.”

CONCERNS OVER FWA APPROVALS

Some employers have voiced concerns over fears they are obliged to accommodate all FWA requests.

Minister of State for Manpower Gan Siow Huang encouraged employers to refer to the tripartite guidelines, reiterating that firms do not need to approve all FWA requests.

Guidelines state that employers should assess each request properly on a case-by-case basis, and approvals should be viable from the business point of view.

“Ultimately, flexible arrangements have to make business sense for them to be sustainable. It’s also the company’s prerogative to decide which requests are supportable,” Ms Gan said.

She added that while corporations can deny requests, they “have to explain to the employees the reason, based on business grounds, for the rejection”.

NTUC’s assistant secretary-general Yeo Wan Ling said it is important to balance the needs of the employees with those of the employers.

“It is important that the unions, the labour movement, weigh in together with our workers, to let people know that there is a proper way to consider FWA requests,” she said.

Will China pay up to take the climate change lead? – Asia Times

By: Bolen C

On: November 29, 2024

In: Asia

The 2024 UN climate talks ended in Baku, Azerbaijan, on November 24 after two weeks of arguments, agreements and side deals involving 106 heads of states and over 50,000 business leaders, activists and government representatives of almost every country.

Few say the conference was a resounding success. But neither was it a failure. The central task of the conference, known as COP29, was to come up with funding to help developing countries become more resilient to the effects of climate change and to transition to more sustainable economic growth.

The biggest challenge was agreeing on who should pay, and the results say a lot about the shifting international dynamics and offer some insight into China’s role. As a political science professor who has worked on clean tech policy involving Asia, I followed the talks with interest.

Slow global progress

Over three decades of global climate talks, the world’s countries have agreed to cut their emissions, phase out fossil fuels, end inefficient fossil-fuel subsidies and stop deforestation, among many other landmark deals.

They have acknowledged since the Rio Earth Summit in 1992, when they agreed to the UN Framework Convention on Climate Change, that greenhouse gas emissions produced by human activities, including the burning of fossil fuels, would harm the climate and ecosystems, and that the governments of the world must work together to solve the crisis.

But progress has been slow. Greenhouse gas emissions were at record highs in 2024. Governments are still subsidizing fossil fuels, encouraging their use. And the world is failing to keep warming under 1.5 degrees Celsius compared with preindustrial times – a target established under the 2015 Paris Agreement to avoid the worst effects of climate change.

Extreme weather, from lethal heat waves to devastating tropical cyclones and floods, has become more intense as temperatures have risen. And the poorest countries have faced some of the worst damage from climate change, while doing the least cause it.

Money for the poorest countries

Developing countries argue that they need US$1.3 trillion a year in financial support and investment by 2035 from the wealthiest nations – historically the largest greenhouse gas emitters – to adapt to climate change and develop sustainably as they grow.

That matters to countries everywhere because how these fast-growing populations build out energy systems and transportation in the coming decades will affect the future for the entire planet.

Four people work at a table. — Negotiators at the COP29 climate talks. Less developed countries were unhappy with the outcome. Photo:Kiara Worth / UN Climate Change via Flickr

At the Baku conference, member nations agreed to triple their existing pledge of $100 billion a year to at least $300 billion a year by 2035 to help developing countries. But that was far short of what economists have estimated those countries will need to develop clean energy economies.

The money can also come from a variety of sources. Developing countries wanted grants, rather than loans that would increase what for many is already crushing debt. Under the new agreement, countries can count funding that comes from private investments and loans from the World Bank and other development banks, as well as public funds.

Groups have proposed raising some of those funds with additional taxes on international shipping and aviation. A UN study projects that if levies were set somewhere between $150 and $300 for each ton of carbon pollution, the fund could generate as much as $127 billion per year.

Other proposals have included taxing fossil fuels, cryptocurrencies and plastics, which all contribute to climate change, as well as financial transactions and carbon trading.

China’s expanding role

How much of a leadership role China takes in global climate efforts is an important question going forward, particularly with US President-elect Donald Trump expected to throttle back US support for climate policies and international funding.

China is now the world’s largest emitter of greenhouse gases and the second-largest economy. China also stands to gain as provider of the market majority of green technologies, including solar panels, wind turbines, batteries and electric vehicles.

Whether or not China should be expected to contribute funding at a level comparable to the other major emitters was so hotly contested at COP29 that it almost shut down the entire conference.

Previously, only those countries listed by the UN as “developed countries” – a list that doesn’t include China – were expected to provide funds. The COP29 agreement expands that by calling on “all actors to work together to enable the scaling up of financing.”

In the end, a compromise was reached. The final agreement “encourages developing countries to make contributions on a voluntary basis,” excluding China from the heavier expectations placed on richer nations.

In a conference fraught with deep division and threatened with collapse, some bright spots of climate progress emerged from the side events.

In one declaration, 25 nations plus the European Union agreed to no new coal power developments. There were also agreements on ocean protection and deforestation. Other declarations marked efforts to reenergize hydrogen energy production and expanded ambitious plans to reduce methane emissions.

Future of UN climate talks

However, after two weeks of bickering and a final resolution that doesn’t go far enough, the UN climate talks process itself is in question.

In a letter on November 15, 2024, former UN Secretary-General Ban Ki-moon and a group of global climate leaders called for “a fundamental overhaul to the COP” and a “shift from negotiation to implementation.”

After back-to-back climate conferences hosted by oil-producing states, where fossil-fuel companies used the gathering to make deals for more fossil fuels on the side, the letter also calls for strict eligibility requirements for conference hosts “to exclude countries who do not support the phase-out/transition away from fossil energy.”

With Trump promising to again withdraw the US from the Paris Agreement, it is possible the climate leadership will fall to China, which may bring a new style of climate solutions to the table.

Lucia Green-Weiskel is visiting assistant professor of political science, Trinity College

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

Commentary: Singapore loves fast food but is there really space for more burgers and fried chicken?

By: Marcus Ching

On: November 28, 2024

In: South-East Asia

Yet, as in all competitive industries, innovation is essential for sustaining engagement. From product and menu development to creative marketing strategies – such as unique collaborations, fresh communication tactics, and engaging promotions – sustained success depends on the ability to keep consumers interested.

Attempts to serve up local delights like Nasi Lemak and Rendang in burger form always pique interest. McDonald’s limited edition Durian McFlurry was a notable marketing success. Following this trend, Shake Shack recently introduced locally inspired dishes, including the white pepper burger and coffee-glazed chicken, in a collaboration with Michelin-honoured hawker brand Keng Eng Kee (KEK).

DIVERSIFICATION VS FOCUS

What gives a fast food chain lasting power in Singapore’s competitive market? Jollibee provides a compelling example.

Best known for its flagship business of fried chicken, it recently acquired Tim Ho Wan, a popular Michelin-starred dim sum chain from Hong Kong. When this was announced, some were surprised to learn that the Jollibee group also owns other established F&B brands like Tiong Bahru Bakery, Common Man Coffee Roasters and even American chain The Coffee Bean and Tea Leaf.

This diversification strategy allows companies to reduce business risks by spreading them across different brands. There are also economies of scale in sourcing, staffing and management. When brands operate multiple complementary outlets nearby, they may negotiate more favourable rental terms – a strategy effectively employed by the BreadTalk Group, which owns BreadTalk, Din Tai Fung (in Singapore), Toast Box and Food Republic.

Singapore PM Wong’s visit bodes well for Thailand’s future

By: Barkar Nash

On: November 28, 2024

In: South-East Asia

Food, energy security among agenda items

Prime Minister Paetongtarn Shinawatra accompanies her Singapore counterpart Lawrence Wong in reviewing a guard of honour at Government House on Thursday during Mr Wong's first official visit to Thailand. (Photo: Chanat Katanyu) — Prime Minister Paetongtarn Shinawatra accompanies her Singapore counterpart Lawrence Wong in reviewing a guard of honour at Government House on Thursday during Mr Wong’s first official visit to Thailand. (Photo: Chanat Katanyu)

Food security, energy security, the green economy, and digital connectivity were among the topics discussed on Thursday by Prime Minister Paetongtarn Shinawatra and her Singapore counterpart Lawrence Wong.

Singapore’s premier made his first official visit to Thailand on Thursday following his assumption of the post in May.

Mr Wong is the first foreign head of government Ms Paetongtarn has hosted in the kingdom.

The visit holds great significance for both countries as they will celebrate 60 years of diplomatic relations next year.

Thailand was one of the first countries to recognise Singapore’s independence on Aug 9, 1965.

Upon his arrival at Government House, Mr Wong was welcomed by Ms Paetongtarn, and they witnessed the signing of a memorandum of understanding on postgraduate scholarships for Thai civil servants.

At a joint press conference, Ms Paetongtarn hailed the 60th-anniversary benchmark.

The visit offers an opportunity for both sides to improve ties further and plan for future cooperation, she said, adding the two countries expect to see more high-level visit exchanges next year.

Ms Paetongtarn said Thailand also hopes to welcome Singapore’s president next year and that she intends to pay an official visit to Singapore to follow up on what was discussed with Mr Wong yesterday.

Government spokesman Jirayu Houngsub summarised the joint press conference, saying their talks touched on security, energy security, food security, the green economy, digital connectivity, future investment and more.

Thailand expressed readiness to help Singapore boost its food security by exporting premium rice and organic eggs there, the spokesman said, adding the leaders also discussed human resources development and educational exchanges to boost upskilling and reskilling for their respective workers.

The two countries also hoped the extended informal consultation in Bangkok next month would help resolve the crisis in strife-torn Myanmar, Mr Jirayu said.

Mr Wong said Singapore and Thailand are old friends.

“We have very strong trade and investment linkages, and our defence establishments also enjoy close and longstanding cooperation. Singapore, in particular, thanks Thailand for its longstanding support for the SAF’s [Singapore Armed Forces] training in Thailand,” he said.

“We are both pioneers in digital finance — we set up the PayNow-PromptPay linkage back in 2021, and that was the world’s first instant cross-border payment system.

“We have also launched the first Depository Receipts Linkage in Asean between our stock exchanges — this allows stocks to be traded on each other’s stock exchange.

“And that is also the first in Southeast Asia,” he said.

The two countries aim to build on this close connectivity to expand to new areas of cooperation, Mr Wong said.

“One area is the green economy. We are keen to work with Thailand on carbon credits. Thailand itself is stepping up its production of green power, including hydrogen and biofuels.

“So we can work towards an Implementation Agreement on carbon credits collaboration, which would open up new opportunities for our companies,” he said.

Another area is food security, which he and Ms Paetongtarn discussed in October at the Asean Summit In Laos, Mr Wong said.

“The prime minister updated me about her priorities in food security. This is also important for Singapore, as we import most of what we consume, and we are continually looking to enhance our food security.

“So, I am happy that both sides have agreed to come together [and] discuss ways in which we can strengthen our collaboration in this area,” he said.

“I thank Thailand for the hard work that it has put in, as chair of the Asean Digital Economy Framework Agreement, that will deepen the integration of the digital economy for Asean, and Singapore supports fully Thailand’s leadership in this area.”

Wong visit bodes well for future