Hong Kong dollar peg at risk in Trump’s coming fight with China – Asia Times

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Under Donald Trump’s coming second administration, Hong Kong may likely play a significant role in the wider industry, security, and political conflict between the United States and China. If therefore, the Hong Kong currency’s clamp to the US franc had come under US fire.

Trump is expected to make a new policy statement regarding Hong Kong-related problems, from the city’s role in assisting Russia in obtaining dual-use Chinese goods and avoiding American restrictions to the detention of pro-democracy activists and politicians to the economic capital’s role in reported money laundering that is against US interests, according to some observers.

Before Trump emphatically won the US presidential election on November 5, the former senator vowed to free Jimmy Lai, a pro-democracy activist and media mogul, from jail. Lai, who stands accused of fomenting Hong Kong’s 2019-2020 turmoil, is obviously one of Beijing’s negotiations cards on the bargaining table between Chinese and US officials. &nbsp, &nbsp, &nbsp,

Six additional abroad Hong Kong activists were detained on Christmas Eve after their arrest warrants were issued by Hong Kong’s federal security police on the charge of inciting subversion, colluding with international forces, and getting worse. The police also imposed HK$ 1 million ( US$ 128, 425 ) bounties on each of them. &nbsp,

Tony Chung and Chloe Cheung, two young activists, social critics, Victor Ho, a former city councillor, Carmen Lau, and former comedian and performer Joseph Tay are among the six. Ho and Tay are in Canada, and Tay is in the UK.

The six, according to Hong Kong’s Security Secretary Chris Tang, have allegedly violated international law by speaking out, posting on social media, and influencing foreign governments to impose sanctions on Hong Kong authorities and courts.

As of December 25, 19 people have been arrested on suspicion of violating federal safety in Hong Kong.

The Hong Kong government’s “relentless achievement of pro-democracy protesters outside its borders is a overt excess that ignores global standards,” according to Chris Patten, the previous government of Hong Kong and a supporter of United Kingdom-based Hong Kong Watch.

He demanded that the governments of the UK, the US, and Canada “agissent quickly and collectively to protect these campaigners from international persecution, ensuring their protection, and standing strong against Beijing’s attempts to undermine the very political values we hold lovely.”

hub of financial violence

The new arrest warrants does encourage hawkish American politicians to call for more harsh methods, such as the removal of some Hong Kong-based lenders from the SWIFT financial exchange program, which, if implemented, could lead to a de-pegging of the Hong Kong dollars and US buck. &nbsp,

In a letter to US Treasury Secretary Janet Yellen in late November, John Moolenaar, president of the US House Select Committee on the Chinese Communist Party (CCP), expressed the agency’s “deep problem” with regard to Hong Kong’s reported “increasing function as a financial hub for cash laundering, sanctions evasion, and other illegal financial activities.

According to him,” Hong Kong has shifted from a trusted global financial center to a crucial player in the deepening authoritarian axis of the People’s Republic of China ( PRC ), Iran, Russia, and North Korea,” following the National Security Law of 2020, which subjected the country to the CCP’s rule. &nbsp,

” We must now question whether longstanding US policy towards Hong Kong, particularly towards its financial and banking sector, is appropriate”.

Moolenaar claimed that the US Treasury has taken preliminary action against businesses based in Hong Kong, where the city has since become a global leader in practices like importing and re-exporting prohibited Western technology to Russia, creating front companies to purchase prohibited Iranian oil, facilitating the trade of Russian-sourced gold, and managing “ghost ships” that engage in illegal trade with North Korea.

He stated that the committee is interested in learning how the US Treasury will combat Hong Kong’s financial system’s financing of money laundering and sanctions evasion.

Jesse Baker, assistant to the US deputy treasury secretary, met with Hong Kong financial institutions, including HSBC, StanChart and Bank of China ( Hong Kong ) in Hong Kong on December 11, warning them not to engage businesses with Russia or help Russia evade western sanctions, Nikkei reported.

In fact, Trump met with his top officials to decide the United States ‘ response after Beijing passed the Hong Kong National Security Law on June 30, 2020. &nbsp,

At the time, Trump had considered forcing an end to Hong Kong’s peg policy, but opted against the move due to commerce and treasury officials ‘ opposition. Instead, he signed an executive order to end Hong Kong’s special status.

The Biden administration has not discussed de-pegging the Hong Kong dollar from the US greenback over the past four years.

In November 2022, markets fretted that Hong Kong’s peg policy would end as the city’s currency had repeatedly touched 7.85 per US dollar, the lower end of the allowed peg range of 7.75-7.85, amid rising US interest rates. &nbsp,

Bill Ackman, a billionaire investor at the time, predicted that the Hong Kong dollar would decline and that its peg to the US dollar would collapse. Boaz Weinstein, a veteran trader, claimed to have a 200-to-1 payoff potential when he bet against the Hong Kong dollar. &nbsp,

De-pegging debate

Some Hong Kong experts said they don’t believe the Taiwan Straits will soon experience a de-pegging unless a sudden war breaks out. However, they did not rule out the possibility of de-pegging in the future.

According to Vincent Lam, a financial columnist and fund manager based in Hong Kong, it’s unlikely that Trump will act to stop the country from using US dollars because this conflicteth with US interests. She noted that Trump has vowed to impose a 100 % tariff on BRIC nations that engage in de-dollarization schemes. &nbsp,

He added, however, that if the Hong Kong government doesn’t improve its balance sheet, it runs the risk of depleting its$ HK$ 550 billion fiscal reserves and will have to abandon its peg policy in the coming years. He claimed that in order to maintain financial stability, Hong Kong can peg its dollar instead to a basket of global currencies.

Allan Zeman, the founder of Lan Kwai Fong Group, stated in a recent interview that the Hong Kong government should have a plan B for its currency peg policy.

He claimed that a peg to the US dollar would hurt Hong Kong’s competitiveness and economy if US inflation and interest rates remained high during the Trump 2.0 era. He claimed that in this situation, a de-pegging might be beneficial for Hong Kong.

In an article, Charles Gave, the founder of the Hong Kong-based Gavekal research group, predicted that Hong Kong might become the potential home for a new international financial system in the coming years. &nbsp,

He claimed that many Asian exporters have kept their income in Hong Kong over the past few years, leading to an increase in the city’s US dollar reserves. He claimed that if these deposits were converted into Hong Kong dollars and lent to Asian nation borrowers, a new pyramid of US dollar-denominated credit would emerge that US authorities would not be able to control. &nbsp,

Hong Kong may represent a new flashpoint in Trump’s fight with China, according to a Bloomberg commentary on December 21. Trump may look into Hong Kong’s peg policy again because he doesn’t like being told he has no say in something.

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

Read: Call for HK to prepare for possible US sanctions

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How ‘made in China’ became trendy, thanks to Labubu toy’s Asia-wide success

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What toys was the craziest in Asia this time? For some, the answer is a colorful, rubber-coated comfortable character with pointy ears, wicked eyes, sharp teeth and a playful grin.

Labubu, designed by Hong Kong-born Kasing Lung and made by Pop Mart, China’s leading store of modern games, has captured the hearts of enthusiasts across the globe with its strange and eye-catching style.

In the past year, Pop Mart has experienced double-digit sales development in China and triple-digit development in foreign markets, according to a statement from Guosen Securities. It is the “largest and fastest-growing business in the modern toy industry.”

Labubu and another secret collectables, usually kept in closed package known as blind boxes, are helping to restructure the global understanding of “made in China” products. Instead of being seen as low, mass-produced things, the products are gaining global recognition for their unique designs, company energy, and their ability to tap into emerging customer trends.

At a Pop Mart shop in Shanghai’s Xuhui region, one user said she had suddenly managed to buy a Labubu cast after months of waiting.

Because so many people rushed to buy at once, she said,” I could never get one when the stock was replenished online.” ” Today, I ultimately got one at an established business, and I’m so happy”!

When asked why she loved the toys, the young woman said:” I love the style, I feel content when looking at it”.

While demand for Labubu, the premier toys in Pop Mart’s series, has outstripped supply in China, it has also become a pain in various parts of Asia as well.

In April, &nbsp, Lisa, a Thai member of the popular K-pop group Blackpink, posted a photo of herself online cuddling a Labubu doll that also showcased a Labubu keychain on her bag. That caused a rise in the toy’s popularity in Thailand, which quickly grew to Vietnam, Singapore, and beyond.

Pop Mart’s third-quarter business update showed that the company’s overall revenue grew by between 120 and 125 per cent year on year. Revenue in mainland China increased by between 55 and 60 per cent, while revenue from Hong Kong, Macau, Taiwan and international markets grew by between 440 and 445 per cent.

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Political contradictions point to end of US empire – Asia Times

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The Republicans ( GOP), traditionally the US’s anti-tax party, now promise to use tariffs to wage trade wars, to massively deport immigrants and to stop drug trafficking. However, taxes are just the name of a specific type of tax ( on imported goods and services ): So the GOP becomes both anti-tax and pro-tax.

Similar to the old-fashioned party of little government, the GOP of today favors massive subsidies for small-scale businesses and economic sanctions and restrictions on small-scale businesses. Beyond the right-wing philosophy and economic self-serving, Donald Trump reflects deeper conflicts in the GOP’s development.

The GOP, which has traditionally been a laissez-faire type of private enterprise, now supports increased government control over what private businesses can and can’t sell in the worlds of regenerative medicine, devices, vaccines, and drugs. The GOP, which has traditionally supported “freedom,” then insists on preventing people from moving across borders and privileges protectionist economic policies over a determination to “free trade.”

Some Trump’s cabinet nominees adopt standard GOP stances, while people adopt new anti-traditional ones. Some contenders do both. Trump’s failure to address the GOP’s fundamental conflicts confounds both its supporters and the general public.

In the moment, those conflicts give Trump some energy. Amid the uncertainty, he decides. However, soon conflicts between US policies may reveal the inanity of Trump’s project and sap his influence.

The Democratic group was, at least since the Great Depression of the 1930s, the “progressive” group of working individuals, organizations, and oppressed immigrants. But the rise of the “centrists” across subsequent years shifted the Democrats upward.

As they became delighted recipients of business and billionaires ‘ donations, the Democrats extremely supported the donor course by fielding “moderate” candidates, moderating their policies and programs, and formally marginalizing the party’s remaining liberal wing.

Personally, the Democrats ‘ moderate leaders pleaded and maneuvered to preserve the traditional assistance of labor unions, oppressed minority and educated experts. The Democrats ‘ efforts to gain more from their traditional supporters were actually made less efficient by restraint.

Liberals ‘ ties to those districts ‘ political commitments and interests also dissipate. Success with sponsors contradicted deepening problems with citizens, most strongly exposed in the 2024 election.

Multiple, severe and prolonged contradictions within both parties suggest that some actual, historical shifts may be live. The US empire’s peak and subsequent decline, in my opinion, are the first of those shifts, followed by the G7’s (especially the G7 )’s ). This change is a result of the International South, China, and the BRICS’s simultaneous fall.

A second change is the formation of US mankind’s domestic financial problems and difficulties. These are poorly acknowledged, let only solved. The long-term worsening of wealth and income disparities and the continual boom-bust or recession-inflation processes, for which no solution has been found, are two examples of the issues.

In brief, both the GOP and the Democrats have denied both swings. In fact, the parties ‘ collective response to the interconnected drops of global empire and local capitalism has so far been deniered. Denial often solves issues. They typically get worse before they erupt because of it.

Political parties ‘ main contradictions and their economic policies have a horizontal effect on professional economists. Unsettled, sour debates among economists react again upon policies, politicians, and open discourse to render them painfully powerless to fix what the public sees significantly as a damaged system.

Starting with Adam Smith, David Ricardo, and the theory of laissez-faire and, especially since John Maynard Keynes, a big part of the career has centered its function around an continued, apparently infinite debate. The question is whether our capitalist system’s operation is best served by fewer than many small, ongoing government interventions.

Should we privilege pro-laissez-faire economics ( the so-called neoclassical tradition ) or governmental interventionist economics ( the so-called Keynesian tradition ) or some” synthesis” of both?

In economics classes at US universities in the 20s, 40s, and 60s, this debate was a significant topic as it is today. The themes of that discussion were frequently expressed in contemporary politics. Occasionally, a few politicians recognized that the overdrawn oppositions, in theory, did not correspond all that well with actual practical politics.

Richard Nixon once said,” We are all Keynesian now”. Bill Clinton bragged about “ending welfare as we know it” in a statement. Trump regularly excoriates Democrats as “radical left lunatics” and includes “fascists” among them. All three presidents were proved wrong, albeit quite self-assured, in making such confused and confusing statements.

Yet the centrality of the private-versus-government dispute in both economic theory and policy continues. Its social value lies more in what it excludes than in what it includes that is positive. Making economics ‘ debate the center of attention has prevented the development of alternative cores that would challenge both Neoclassical and Keynesian economics.

One such alternative core would be the question whether top-down hierarchical production models ( the employer-employee model ) serve more effectively societies than horizontally egalitarian, democratic organizations ( the worker coop model ) do.

Then, debates might turn to which production organization preserves the environment, lessens income and wealth inequality, combats cyclical economic instability, or improves people’s physical and mental health.

The contradictions that agitate discourses and practices these days may be the result of the waning of traditional economic and political practices despite the lacked of new ones still a ways to go. On the one hand, the US and UK are now indicating that they are no longer free trade and instead of a government-run protectionism.

On the other, state-supervised China and India, among others, support free trade. The USSR’s and China’s economic growth records in the 20th century undermine preferences for private capitalism over state-regulated ones.

The old debate sheds no new light on such central economic issues as the rise of the BRICS bloc in the world economy in today’s world economy in comparison to the declines of an already smaller G7 bloc and the US dollar in world trade.

Of course, economists and politicians who have established themselves as leading opponents of neoclassical economics and privatization continue to try to maintain the same old debates that were important.

If they do succeed, it will be because a still-existing system prefers to rehash the outdated rather than welcome and examine what is emerging. In any case, however, unwavering change will continue to affect a fading US empire and its capitalist system.

Richard D. Wolff is visiting professor in the graduate program in international affairs at New School University in New York and professor of economics emeritus at the University of Massachusetts, Amherst.

Wolff’s weekly show, “Economic Update”, is syndicated by more than 100 radio stations and goes to millions via several TV networks and YouTube. His most recent book with Democracy at Work is” Understanding Capitalism” ( 2024 ), which responds to requests from readers of his earlier books” Understanding Socialism” and” Understanding Marxism”.

The Independent Media Institute’s Economy for All project produced this article. It is reproduced here with permission.

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Brazil shuts BYD factory site over ‘slavery’ conditions

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According to Brazilian authorities, workers at the Chinese electric vehicle ( EV ) giant BYD lived in conditions comparable to” slavery” and have halted the construction of a factory there.

More than 160 workers have been rescued in Brazil’s northeastern state of Bahia, according to a statement from the Public Labour Prosecutor’s Office (MPT).

They reportedly were placed in a “degrading” culture and a building company withheld their passports and wages.

In a statement, BYD claimed to have cut ties with the company involved and continued to work toward “full compliance with Portuguese regulations.”

By March 2025, the factory was set to start operating, and it was BYD’s second Vehicle facility outside of Asia.

The employees, hired by Jinjiang Construction Brazil, lived in four infrastructure in Camaçari area.

At one like service, personnel were made to sleep on beds without cushions, according to prosecutors.

31 employees were also sharing each other’s bathrooms, making it necessary for them to rise very early to get ready for work.

According to the MPT,” the problems found in the lodgings painted an alarming picture of precarity and degradation.”

” Slavery-like conditions”, as defined by Brazilian law, include debt bondage and work that violates human dignity.

The MPT added that the circumstance also qualifies as “forced labor,” as some workers were forced to pay their wages and endured increased costs for contract termination.

According to BYD, the injured personnel had been relocated to hotels.

It added that it had conducted a “detailed overview” of the working and living situations for subcontracted staff, and asked on” some occasions” for the construction company to create improvements.

BYD, little for Build Your Goals, is one of the nation’s largest Vehicle makers.

It sold more electric vehicles than Elon Musk’s Tesla in the last three months of 2023, as the two battled for top spot in the sector.

The business has also been expanding its footprint in Brazil, which is by far its largest international business.

It built a factory in So Paulo in 2015, where it produced framework for energy trucks.

Last year, it announced that it would invest 3 billion reais ($ 484.2m ) in Brazil to build an EV manufacturing plant.

Federal grants have helped to boost electric vehicle sales in China. which encourage drivers to swap out their gasoline-powered vehicles for Batteries or hybrid.

However, what some people perceive as cruel support for domestic car manufacturers by the Chinese government is receiving a growing backlash worldwide.

Batteries from China are subject to additional levies from major areas like the US and the EU, which are anticipated to increase as the US president-elect Donald Trump enters office.

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‘Trumpflation’ already wreaking havoc on Bank of Japan – Asia Times

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Before it even arrives, the Bank of Japan has a very common feud with Donald Trump’s 2.0 White House.

Tokyo is now putting the brakes on the following Trump presidency, which will take place in four weeks. Governor Kazuo Ueda is leading Asia’s second-largest business toward the total unfamiliar at BOJ office in Tokyo, where it is more evident.

Certainly, Japanese Prime Minister Shigeru Ishiba may dispute this classification. However, Ueda is securely in the driver’s seat with approval levels in the 20s and his ruling Liberal Democratic Party rarely hanging on to power.

The issue is figuring out when Trump will visit the White House on January 20. Door No. 1 is contextual Trump, ready to negotiate a “grand deal” business cope with China and perhaps others. Door No. Second: a” Tax Man” period that sparks trade wars that no one has seen before.

This doubt explains why Ueda’s plan board kept rates unchanged next year. And why it’s probably not even a question to consider a price trek for January. The BOJ stated in a speech last week that “uncertainty persists regarding the country’s economy and rates.”

Local problems are bad much. Team Ishiba is scrambling to implement innovative fiscal stimulus to boost domestic demand as Chinese growth declines. Not exactly a good place for the BOJ to raise prices.

China’s economic downturn is its own conundrum. Tokyo is deeply alarmed by the recession that Asia’s biggest sector exports. For years, Japan was accused of generating more challenges than development. Then it’s China, by much Japan’s leading export market.

India fears about the mix of Trump’s affected trade conflict and domestic plans to arrest millions of illegal immigrant workers. The great possibilities this will make what industry observers have coined” Trumpflation” has Ueda’s BOJ in a spin.

That includes legislators from European Central Bank Governor Christine Lagarde to Bank of Korea Governor Rhee Chang-yong.

” In Japan, industrial production likely fell 3 % in November from October”, says Stefan Angrick, an economist at Moody’s Analytics. ” Business forecasts for November have looked bad, with companies pointing to falling production across machinery, autos and technology”.

The bigger issue is income. The enthusiasm over the previous year’s wage negotiations for the spring has long since waned. The union workers ‘ biggest increases in 33 years didn’t stop the virtuous cycle of inflated salaries and increased use that many had hoped for. As 2024 begins, inflation-adjusted give is smooth.

Chinese CEOs could be prevented from raising pay in the coming year by competing concerns about China’s decline and Trump’s bombardment of tariffs. This danger is making the BOJ’s price increase timeline more challenging.

Previously, economists thought a December price climb was a done deal. Finally, a group of BOJ officials stepped up to the microphone to announce that there would be no tightening. Though” Trump business” challenges weren’t highlighted particularly, they were written between the lines in bold font.

With the Trump threat to impose$ 60 transfer taxes on Chinese goods, Japan would be at the middle of the collateral damage area. Any significant decline in the biggest customer for Japan had destroy it in 2025.

Japan Inc concerns, also, that Trump may teach his tariffs its approach. Trump has refused Ishiba’s noted many demands for a pre-inauguration meet. Due to this, Japan is concerned that Trump doesn’t view Ishiba as a crucial mate in the same way that he did Shinzo Abe, the prime minister for 2020.

And that the 100 % taxes Trump plans for Mexico-made trucks might remain aimed next at Toyota, Honda and Nissan. That may hinder the former two businesses ‘ efforts to combine to raise global market share.

For Ueda’s BOJ, dread must be the experience of the time. Ueda dragged his legs on raising prices to 0.2 %, where it is now, in the 15 weeks after taking the helm in April 2023. Despite robust economic growth and the favorable environment for higher Asian rates, this is true.

Having squandered that window of opportunity, Ueda today finds himself on the defense. With Ishiba’s gathering on the run, social pressure against price hikes is definitely mounting. The LDP’s current reliance on criticism party help to hold onto power is not all that helpful.

On the other side, there’s a real danger of” Trumpflation” that lingers back Japan’s manner. As Trump introduces laws that appear to be sure to increase global sales pressures, the threat has been brought up by economists, including Nobel prize Paul Krugman.

Trump’s taxes “would lead to a significant increase in consumer prices in the US.” We estimate that the proposed tariff increases would increase core PCE prices by 0.9 % if implemented using our rule of thumb, which states that every 1[percentage point ] increase in the effective tariff rate would raise core PCE prices by 0.1 %.

Or even more if Trump makes good on capturing millions of undocumented workers, thereby tightening US workers markets even more.

The author of” The Contest for Japan’s Economic Future,” Richard Katz, claims that domestic price trends, along with Trumpflation and a weaker yen, are putting the BOJ at a disadvantage. The BOJ is therefore holding off until more proof is available.

Ueda’s plan board “faces a dilemma”, Katz says. Objectives of higher prices in Japan typically lead to the BOJ raising interest rates. That would not only filter the level gap, but also help to counteract the yen’s yen’s upward pressure, and also help to combat inflation.

Katz continues, adding that” for the most part, the weaker yen and other components have been reducing true wages and, consequently, customer paying for the past five years. That prevents economic development, and the BOJ must maintain low interest rates to maintain afloat the business.

Katz adds that it’s even more concerning how and when Trump may put the laws he campaigned and won on into practice.

It’s unclear whether the benefits in minimum wage increases that employers granted this year will be repeated following year on the local Japan entrance. Because of the magnitude of imported inflation, it’s unclear whether minimum increases will result in higher real wages.

All of this is putting pressure on the renminbi. Last year, Finance Minister Katsunobu Kato said he was “deeply” concerned about the dollar’s new fall.

Katz argues that the BOJ’s entire prices plan depends on maintaining minimum wage increases at 3 % annually in the hopes that this will result in increases in real income. It will take many months to see the 2025 fiscal pay picture. Therefore, at least for this month, the BOJ is adopting a wait-and-see attitude”.

Daisuke Karakama, general business analyst at Mizuho Bank, says” I’m not certain if yen failure may be contained until March”. He adds that there’s” no assurance” the yen didn’t break through 160 to the money by January.

Trump Japan may encounter this in January, but there is no guarantee. And the degree of the” Trumpflation” that might follow.

Following William Pesek on X at @WilliamPesek

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Mosti unveils Startup ASEAN, bridging ecosystem gaps across region

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  • Empower companies, connect innovators, and develop a growing ecosystem
  • Startup-friendly policies, improve ecosystem readiness, generate effective collaboration

Norman Matthieu Vanhaecke, Group Chief Executive Officer of Cradle with Chang Lih Kang, minister of Science, Technology and Innovation at the soft launch of Startup ASEAN.

The Soft Launch of Startup ASEAN, a platform that aims to position ASEAN members as key players in the global startup landscape, was announced by the Ministry of Science, Technology, and Innovation ( MOSTI ) and Cradle Fund Sdn Bhd. The program was officiated by Chang Lih Kang, secretary of Science, Technology and Innovation, during the Malaysia-China Summit 2024 held next week

Startup ASEAN is inviting companies and habitat lovers from all ASEAN nations to meet the system forward of its official release in Q2 2025. Companies can now register their attention at website. startup-asean. nonprofit and be part of the state’s second jump in innovation.

Cradle has been given the task of leading the ASEAN Startup Initiative ( ASI) within the ASEAN Technology Startup Ignite as Malaysia prepares to take office of ASEAN in 2025. This initiative highlights Malaysia’s commitment to bolstering the regional startup ecosystem, aligning with the nation’s Priority Economic Deliverables ( PEDs ) 2025 for Science, Technology, and Innovation (STI).

The program aims to promote startup-friendly policies, promote habitat preparation among ASEAN member states, and encourage meaningful collaborations to foster regional synergies and partnerships.

The second program under the ASEAN Technology Startup Ignite is a program curated by a work force from all 10 ASEAN Member States: Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

Chang Lih Kang, Minister of MOSTI, emphasised,” Business ASEAN is designed to encourage and promote science, engineering, and innovation within the ASEAN startup ecosystem, serving as a gateway to the vivid ASEAN startup community. Through this program, we aim to empower companies, connect entrepreneurs, and develop a growing ecosystem that drives provincial growth and innovation”.

Describing Startup ASEAN as more than just a digital system, Chang added,” It is a testament to our collective responsibility to nurturing creativity, strengthening engagement, and building a solid foundation for modern advancement”.

Norman Matthieu Vanhaecke, Group Chief Executive Officer of Cradle, said,” As Malaysia’s primary level company for the company habitat, Cradle is pleased to direct Startup ASEAN. This system serves as a catalyst for regional cooperation and creativity, enabling startups to grow and promote sustainable economic growth in the area.

Through a phased approach, he said Cradle will introduce dynamic programmes, including regional hackathons targeting deep tech sectors such as Artificial Intelligence ( AI), sustainability, and climate tech. Also, the Startup ASEAN Summit in 2019 will highlight regional innovation and open up new markets for startups.

” The establishment of Startup ASEAN under Malaysia’s Chairmanship is a significant step in strengthening the region’s vibrant startup ecosystem, which currently boasts over 11, 000 startups and an ecosystem value of US$ 131.2 billion ( RM589.1 billion ). With ASEAN’s GDP projected to reach US$ 4.5 trillion ( RM20.2 trillion ) by 2030, the region remains a dynamic hub for innovation, offering vast opportunities for companies and investors alike”, said Satvinder Singh, Deputy Secretary General for ASEAN Economic Community.

” Startup ASEAN may be essential in connecting tech companies across the region, empowering members, enriching the ecosystem, and bridging ASEAN’s local and global network with the complete support of all 10 associate state”, said Dr Kanchana Wanichkorn, Director of Sectoral Development Directorate for ASEAN Economic Community.

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Trump tariffs as confrontation, deterrence and art of the deal – Asia Times

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The next day Donald Trump was US senator, he entered trade war with China and Europe. But despite his bombast and taxes, the US trade deficit did not improve.

In fact, it deteriorated from US$ 195 billion in the first quarter of 2017 to$ 260 billion in the same period of 2021.

A number of selected items were subject to the Trump tariffs, which were set at a maximum of 25 %. However, his current strategy seems to be that the US will impose tariffs of 10 % or 20 % on the majority of imported goods. Taxes in Canada and Mexico could be 25 %, and tariffs on Chinese goods could be 60 %.

This revision appears to be drastically different from the previous one. What are the potential cases for the US, the UK, and the world economy then?

Situation 1: Fight

Taking the president-elect’s expression to the email, if Trump stands his ground on across-the-board taxes one effect may be that the US market faces higher costs because of more expensive goods. The desire for US-produced goods may rise, which will probably result in higher domestic wages and a spiraling inflationary trend.

It is not difficult to imagine the US market accelerating. But, there are also opposing causes. Higher taxes and significant US investment are likely to cause the money to rise, resulting in imports becoming less expensive at the frontier before tariffs are imposed. This may eat away at prices.

The common sector’s claim of massive layoffs may also lessen the strain on the job market. Technology advancement, such as the press for autonomous vehicles, might also have an impact.

Lastly, easing environmental laws in the energy industry and potential serenity with Russia and perhaps even the Middle East could increase energy prices.

Scenario 2: The art of the bargain

Donald Trump’s interpersonal elections are well-known. This translates to being unburdened by the foreign regulations that have guided global industry since the Second World War.

This trend is further heightened by the election of Scott Bessent as treasury secretary. In his thoughts, taxes are a” sanctions resource” in wider political and economic game.

In trade for a wide range of possible concessions, the US good dangles somewhat attractive terms to get its business in a good scenario for potential trade relations with the rest of the world. These might include more options for US investment or exports, as well as a stronger political position and significant US investment.

Nevertheless, supply chains could undergo significant restructuring, with imports from the most effective nations being replaced by less efficient ones. This may lower the US’s trade deficit with China while reducing its trade imbalance with the EU, UK, Mexico, and Canada.

May these agreements been extended to China, and likely China accept them? is a looming question. If not, it is possible to see two economical alliances, one centered on China and the other centered on the US.

Scenario 3: Punishment

In a second – undoubtedly doubtful situation, the Chinese government may recognize US demands to adjust their bilateral deal imbalance in the belief that the moment is not yet right to challenge US supremacy.

Maintaining an export-led development design, building power, breaking into international markets and only sitting out the Trump administration may be China’s best plan. The Chinese authorities would have to consent to larger and more quickly purchased American-made goods and services than the previous arrangement between the Trump and Xi governments.

chess pieces and us and chinese currency
China will have to carefully consider its second step. Pla2na/Shutterstock

But what about the UK and Europe? UK export to the US may face a 20 % tariff, reducing profits and impacting on those British suppliers exporting goods the US buys, like medicine or equipment, for example. The UK will have to decide whether to fight and impose levies on US products. And if so, at what levels?

The UK’s objectives are not in conflict with the US, but what will happen then will depend on the demands the Trump administration makes. In the event that regional trade blocs emerge as a result of various nations ‘ hostile actions, there is already talk about whether the UK should choose the US or the EU.

Although there will be a significant difference, the consequences may be comparable for the EU. The EU as a whole has a similar-sized business to the US and its own business plan. The EU and US are thus strongly motivated to launch retribution and a business battle.

The UK may find it more difficult if the EU decides to proceed in that direction. In this situation, the English may later need to choose a part. It would have to decide between its unique partnership with the US and a more decline in trade with the EU, which is its closest marketplace. Or it would have to choose to become more politically and economically connected to the EU.

Unfortunately, when countries close their borders to business, they are also – apparently mistakenly – readying themselves for fight.

Agelos Delis is senior teacher in finance, Aston University and Sami Bensassi is audience in trade and development finance, University of Birmingham

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

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China tech giant Xiaomi to open two more Singapore stores in 2025 amid Southeast Asia expansion

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In: South-East Asia

By the end of 2025, Chinese handset and house tech firm Xiaomi intends to open at least two additional stores in Singapore, bringing the country’s total business matter to 10.

The announcement was made at the official launch of Xiaomi’s first directly managed store in Singapore on Saturday ( Dec. 21 ) at Funan mall.

Xiaomi’s business development aims to “deepen immediate engagement with South Asian markets,” the company stated in a media release. In addition to these seven retailers, Xiaomi currently operates seven stores in Singapore through reseller partners.

Xiaomi Southeast Asia’s general manager, Mr. Alex Tang, stated to reporters on Friday that the company wants to run some stores independently because there isn’t a strong link between the company and its partners, who might not be familiar with the systems as well.

It aims to “empower” its partners in order to enhance the customer experience at different stores as well, including by promoting more goods, introducing a more effective operations method used in China, and enhancing the store’s reputation.

Because more people are buying products in Singapore, the business is really optimistic, he said.

For cleaners, there has been a 40 per cent increase in interest this time, and for devices, the progress was more than 200 per share.

” We are very confident in this market and are totally committed to investing in this business,” he said. When asked why Xiaomi is now expanding, Mr. Tang said the company already has enough products to offer an “integrated client knowledge” to Singapore.

He stated that Xiaomi will continue to employ people to supply the demands of the new businesses.

Beyond Singapore, the company is aiming to improve the practice for consumers worldwide, including in different parts of Southeast Asia. Additionally, it just opened fresh locations in Malaysia and Thailand.

He acknowledged that the regions have distinct characteristics and rivals, but Xiaomi wants to offer creative goods to each industry.

Xiaomi’s third quarter revenue increased by 30.5 %, helped by the release of its first electric vehicle in March.

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Honda and Nissan merger talks: What’s at stake

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In: Asia

Nissan and Japanese automaker Honda will officially begin discussions on a acquisition to increase their standing in the field of electric vehicles, where Chinese brands are vying for supremacy. At the same time, Chinese technology behemoth Foxconn has approached France’s Renault to get its huge interest in Nissan, according toContinue Reading