Asia feels the pinch of growing ‘food chokepoints’ – Asia Times

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In recent years, global food security has suffered from overlapping problems caused by problems, political tensions, climate change, and the Covid- 19 pandemic, resulting in severe foods provide problems.

These problems have been made worse by a number of “food causeways,” such as those that Yemen-based Houthi soldiers have attacked merchant boats and have hampered food shipments through the Suez Canal.

The transport visitors through the Panama Canal has decreased expected to&nbsp, drought&nbsp, which likewise hit river transport systems like as the&nbsp, Mississippi River&nbsp, and the&nbsp, Rhine River.

The emphasis on particular transport routes makes the pressure on global food security even more pressing because the global food system is already becoming increasingly dependent on the movement of meals from a few key “breadbasket” exporting areas to food-deficit locations around the world – frequently through these “food chokepoints”

It furthermore impacts agricultural goods profitability, shipping schedules, as well as food supply and prices. Longer delivery periods even put perishable foods at hazard, while&nbsp, shipping disruptions&nbsp, such as changes to shipping schedules stress cargo management and street transport sectors, causing major delays.

What does Asia’s interpretation of this mean?

For both food- exporting and importing countries, challenges loom. Exporting nations may experience profit margin pressures, which lower the cost of production while importing nations may have to deal with potential increases in transportation costs, which could lead to higher food prices, increased price volatility, and altered consumption patterns.

Due to their reliance on European and Black Sea markets for important agricultural products and fertilizers, Southeast Asia, East Asia, and South Asia are more vulnerable. Import disruptions pose inflation risks, contributing to a cost- of- living crisis.

In countries already grappling with crises like extreme weather ( Pakistan ), conflict ( Bangladesh and Myanmar ), economic turmoil ( Sri Lanka ) and political uncertainties ( Thailand ), &nbsp, food price inflation&nbsp, exacerbates poverty, stalling socioeconomic growth.

The most under- and middle-income households, which are most likely to be affected, may also be at increased risk of malnutrition, which could turn back decades of development progress in Asia.

Trade disruption implications

The US announced plans for a task force&nbsp in late December 2023 to combat the Houthi attacks in the Red Sea, but it is unlikely that immediate redress for trade turbulence and food price inflation will occur.

Concerns about food and fertilizer supplies being manipulated are raised by ongoing supply chain disruptions, as demonstrated by the Ukraine-Russian war, combined with the escalating geopolitical tensions.

Amid recurrent crises, urgent reforms to food systems are essential. Governments and policymakers must prioritize&nbsp, preparedness and resilience- building&nbsp, at national and regional levels to address food security issues and mitigate future impacts.

Governments and policymakers should diversify their sources of supply chain disruptions in addition to the increasing national stockpiles that the numerous net food importing nations in Asia have.

A good example is Singapore, which, while importing over 90 % of its food, has reduced vulnerability to food price and supply fluctuations through contact with&nbsp, more than 180 countries and regions.

This strategy has been largely successful, resulting in Singapore enjoying the world ‘s&nbsp, second most affordable food, behind Australia. &nbsp, The average&nbsp, Singaporean household&nbsp, spends less than 10 % of monthly expenses on food, in contrast with the Philippines ‘ 38 %.

Additionally, the Philippines, which has a large food deficit, ranks low in affordability, importing&nbsp, nearly 80 %&nbsp, of its agricultural imports. Food inflation in the Philippines reached&nbsp, 8 % &nbsp, in 2023.

Facilitating food access

Governments across the country must develop early action plans and strengthen social safety nets to lessen the strain of the cost-of-living crisis. For lower-income households with lower incomes, initiatives like food relief, cash support, and food voucher programs can help ease the strain. Subsidies and tax measures, which can provide temporary relief, may also be considered.

With average households spending over a third of their income on food in countries like&nbsp, the Philippines, and lower- income households in countries like&nbsp, Indonesia&nbsp, spending up to 64 % on food monthly, addressing food price inflation is crucial to safeguard average and lower- income households from undernutrition.

To address the interconnected issues of food availability, access, and affordability, Asian governments reliant on food imports could sign agreements with agricultural exporting countries in the region such as&nbsp, grain and oilseed powerhouses&nbsp, Australia and New Zealand. Doing so can avoid risks posed by chokepoints.

Greater focus on intra- regional trading could also be encouraged, such as in Southeast Asia, which has large exporters of key agricultural products including&nbsp, rice&nbsp, ( Vietnam and Thailand ) and&nbsp, palm oil&nbsp, ( Malaysia and Indonesia ).

Increased intra- regional trade could reduce&nbsp, regional food import dependency&nbsp, while also increasing regional food accessibility, market stability, and economic development. This could be aided by initiatives to encourage investments in agricultural research and development in the area to increase production of other staple grains ( such as wheat ) and reduce reliance on imports.

Looking ahead

The Middle East’s ongoing supply chain disruptions serve as a reminder of how crucial it is to have resilient national and regional food supplies and agrifood systems, according to Asian governments and policymakers. Countries must try to address these interlinked issues at national and regional levels in both the short and long term in the face of persistent food price inflation and malnutrition.

The region has a better chance of preparing itself for the challenges that lie ahead in terms of food security by implementing policy measures like diversifying food imports and strengthening social safety nets.

Genevieve Donnellon- May is a Research Associate at the Asia Society Policy Institute, Melbourne, Australia. Paul Teng is a Senior Adjunct Fellow at Nanyang Technological University (NTU), Singapore’s Nanyang Technological University (NTS Center ), S. Rajaratnam School of International Studies ( RSIS), and the Centre for Non-Traditional Security Studies (NTS Centre ).

This article first appeared on RSIS Commentary, and it has since been republished with kind permission. &nbsp,

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Trump invites Chinese to build US auto plants – Asia Times

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This article appears below as a preview of the week’s Worldwide Danger- Reward Monitor.

Donald Trump, the Republican nominee for president, invited Chinese automakers to set up factories in the country on March 18 and offered China the same offer that Ronald Reagan did with Japan in the 1980s.

The former leader vowed to impose a 100 % tariff on imports of Taiwanese vehicles either directly from the United States or through middlemen like Mexico. But he added,” If they want to build a plant in Michigan, in Ohio, in South Carolina, they can, using American workers, they can. They occasionally send Chinese workers over here, which they ca n’t do. But if they want to do that, we’re pleasant, proper”?

Addressing Chinese leader Xi Jinping, Trump said,” You and I are associates”.

Trump’s provide to China went undetected in nearly all media. The former president was heavily criticized in major US press for using the word “bloodbath” to describe the impact of potential Chinese imports on the American automobile market, suggesting that he had threatened real crime if he was not elected. But the&nbsp, transcript&nbsp, of his notes at a Dayton, Ohio, protest makes&nbsp, evident that he was referring to market conditions.

Trump bobbleheads outside a 2024 Dayton Trump march. Photo: Nick Evans / Ohio Capital Journal

Trump told the Dayton market:

Let me tell you anything to China, if you’re listening, President Xi, and you and I are friends, but he understands the way I deal, those huge monster car manufacturing plants that you’re building in Mexico right now, and you think you’re going to get that, you’re going to not use Americans and you’re going to buy the trucks to us. Now, we’re going to put a 100 % tariff on every single car that comes across the line, and you’re not going to be able to sell those cars, if I get elected…. And I’ll tell them if they want to build a plant in Michigan, in Ohio, in South Carolina, they can, using American workers, they can. They occasionally send Chinese workers over here, which they ca n’t do. But if they want to do that, we’re welcome, right? However, they wo n’t construct them in Mexico and wo n’t do that.

Industrial automation is growing in China and lags behind in the United States. According to Zhang Weiwei, a professor at Fudan University, China already has 10, 000 applications of 5G to the industrial Internet. By my informal count, that number is lower than ten in the United States.

China installs more industrial robots and graduates more engineers than the rest of the world combined. In 2023 it became the world’s largest auto exporter. Electric vehicles starting at$ 9,700 for the well-reviewed BYD Seagull subcompact, which is comparable to the 1908 Ford Model T in terms of features and appeal, are opening up new markets for automobiles in the Global South.

BYD Seagull. Photo: Wikipedia

China meanwhile has extended its lead in 5G broadband. According to Zhang, China currently has 3.37 million 5G base stations out of a 4 million installed capacity worldwide, accounting for 85 % of that number.

The United States may never be able to match China’s combination of skilled personnel, infrastructure&nbsp, and giant economies of scale. It’s simpler for Chinese businesses to adopt industrial automation into the United States than to try to catch up after the fact. That’s the path of least resistance, and one that Trump has opened up.

Donald Trump’s approach to China&nbsp, has never been ideological. &nbsp, In an interview on October 6, &nbsp, 2023, &nbsp, Trump hinted at the possibility of striking a deal with the world’s second- largest economy, leaving the door ajar for future negotiations. When John Solomon, an interviewer, asked Trump about a method for distancing himself from China, his response showed a pragmatic outlook:

At least partial decoupling – we’ll see. They might turn out to be just fine. It’s very popular politically –” We’re going to decouple”! – but I believe my relationship with China was excellent.

However, the notion of decoupling remains elusive. Any attempt at decoupling would require importing even more capital goods to facilitate increased domestic production because the US currently imports more capital goods than it manufactures domestically. Trump himself acknowledged decoupling’s political appeal while highlighting its implausibility in practice.

Trump’s approach to China exhibited nuances. Trump intervened to save ZTE, China’s second-largest producer of telecom equipment, from collapse by allowing the company to pay a sizable fine and keep access to US chips. Yet, Trump’s stance toward Huawei, particularly regarding restrictions on chip purchases, fluctuated, eventually leading to severe consequences for Huawei’s smartphone business but minimal impact on China’s broader technological trajectory.

US President Donald Trump was pressing allies and other allies to abandon Huawei-made 5G equipment in 2020. He now appears to be ready to negotiate with China regarding autos. Image: Facebook

Despite Trump’s tariffs on Chinese imports, motivated partly by his desire to reduce the US trade deficit, the deficit continued to widen. The Biden administration continued to impose these tariffs, strengthening technology controls, including a ban on selling premium semiconductors to Chinese customers and a call on allies to stop providing China with semiconductor production equipment.

It will be more difficult for Washington to impede China’s chip industry if Chinese automakers start operating EV plants in the US. EV’s require up to 4, 000 chips of increasing degrees of sophistication. In effect, an EV is a computer on wheels. A potential auto deal could lead to a wider thaw in US-China economic relations.

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ShopBack cuts 195 jobs in push for business sustainability

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SINGAPORE: Temasek- backed website bonus software ShopBack has laid off 195 workers, or 24 per cent of its headcount, in what it said was a push to become more centered and self- green.

During a town hall meeting on Tuesday ( Mar 19 ), ShopBack CEO Henry Chan made the cuts known, with those affected being notified within an hour of the event’s conclusion.

” I made the error of expanding our staff to quickly and going too many directions as a business. I take full responsibility for the decisions that have led to this situation”, said Mr Chan in a information posted on the bank’s website.

Singapore- based ShopBack, even known by its lawful name Ecommerce Enablers, offers bonus for purchases made through affiliated merchant programs. Additionally, customers can find deals and discount code there.

Founded in 2014, it has expanded to 10 different areas including Australia, Hong Kong, South Korea, Indonesia, Malaysia and Thailand. ShopBack said on its site that it has 40 million people across all its businesses, with 20, 000 companion businesses.

Mr. Chan stated that all deviations may be made on Tuesday at the same time out of respect and to facilitate the transition for the team members who are leaving.

” Now is a challenging time for all ShopBackers, and particularly so for our Muslim ShopBackers who are also fasting this morning. As he announced a day off for the majority of Tuesday,” we recognize the needed for everyone to have the time and space to practice this information,” he said.

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Bank of Japan rates pivot cause to cheer in China – Asia Times

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As the Bank of Japan transitions from 23 years of quantitative easing ( QE), Xi Jinping’s inner circle in Beijing is probably breathing a little easier.

On Tuesday ( March 19 ), BOJ Governor Kazuo Ueda ended the world’s next bad interest rate program and scrapped Tokyo’s produce- curve- control experiment.

Its new range for policy rates is between 0 % and 0.1 %, pivoting away from the previous -0.1 % target. The BOJ’s action was basically the smallest it could have taken without upending&nbsp, international businesses.

The fact Ueda’s team stresses that credit conditions may remain flexible suggests this is largely&nbsp, a metaphorical move with some huge economic consequences. However, the BOJ’s exceedingly delayed effort to restore rates today begins in earnest.

Yet you can imagine Beijing is paying close attention. No plan action will cause an financial tailwind for China and, conversely, recession much more quickly than a weaker exchange rate. The yuan lower has been pushed aside by President Xi’s staff to prevent unsettling international buyers.

Internationalizing the renminbi has been a major Xi concern for the past eight years. Changing the exchange rate may waste that advancement. And bring Washington’s indignation as a controversial US election approaches. Team Xi will be cheered up by the threat of a stronger yen below.

According to scholar Louis Gave at Gavekal Dragonomics,” China policymakers— and economic markets— you breathe a sigh of relief” given that the BOJ is abandoning its zero-interest-rate plan and produce curve control.

It stands to reason that the business for China’s goods may be other emerging markets as Xi and Premier Li Qiang labor to move growth engines from home and funding to technology and higher-value-added industries.

Selling cars, solar panels, batteries, trains, turbines, power plants and high- tech infrastructure will be easier as the currency of Asia’s No 2 economy appreciates.

” If the yen should start to rise, the outlook for China will improve dramatically”, Gave says. ” Policy, geopolitics and financial markets will all start pointing in the same direction”.

Risks abound, of course, for Tokyo. One is Japan’s ability to maintain the monetary tightening since 2007, the last time the BOJ attempted to alter monetary policy.

Kazuo Ueda, the governor of the Bank of Japan, has made a final decision to end QE. Image: Twitter / Screengrab

In the second half of 2023, Japan hardly managed to avoid a recession. The economy lost 3.3 % of its GDP in the July-September quarter, down 3.3 % from the previous quarter, and only eked out 0.4 % in the final three months of the year.

In January, household spending plunged&nbsp, 6.3 % from a year earlier, the sharpest drop in 35 months.

The bull case for Japan centers on the results of this year ‘s&nbsp, shunto&nbsp, wage negotiation. On Friday, the Japanese Trade Union Confederation, or Rengo, announced an average 5.28 % pay hike, the fastest increase in 33 years.

According to economist Jonathan Garner of Morgan Stanley MUFG,” this can be described as a virtuous cycle of rising nominal GDP growth, wages, prices, and corporate profits.”

Stefan Angrick, economist at Moody’s Analytics, adds that” after a dreadful run of economic data through 2023, the&nbsp, shunto&nbsp, surprise is the first good news in a long while. What should be closely watched in the coming weeks is how these negotiated pay increases affect consumer spending and wage increases across the economy.

However, it is still unclear how Japan Inc. will react if the BOJ removes the monetary training wheels from the country’s most developed country’s highest debt burden.

Corporate Japan has been making money since the BOJ cut interest rates for the first time in 1999. Even more so in 2000 and 2001, when the central bank was the one to institute QE.

Since then, the US, Europe, UK, Australia and other major economies also went the QE route, mostly in response to the 2008 Lehman Brothers crisis. Since QE’s termination, all have started normalizing rates. Except Japan.

Until Tuesday, of course. Ueda now has the power to reduce the BOJ’s balance sheet without hurting the economy or causing a global market panic.

One risk is the so- called “yen- carry trade”. Japan became the most important creditor after roughly a quarter century of zero interest rates.

Investors started using cheap yen to borrow money and put those funds into higher-yielding assets all over the world. Strong zigs in the yen can result in hefty zigs in Seoul’s and New York’s markets.

Hence the BOJ’s caution in stepping away from QE more decisively. Finding a way to leave the Japanese stock market and bond market without creating chaos is a part of Ueda’s challenge.

Under Ueda’s predecessor, Haruhiko Kuroda, the BOJ amassed a titanically large balance sheet. First, it bought up more than 50 % of all outstanding Japanese government bonds ( JGBs ). Its dominance over the market grew to the point where not a single security can no longer be traded hands.

Next, the Kuroda BOJ seized control of the stock market with massive exchange-traded fund purchases. It became the biggest “whale” in Tokyo shares, bigfooting even the US$ 1.6 trillion Government Pension Investment Fund.

By 2018, the BOJ had surpassed the size of its US$ 4.7 trillion economy in terms of its balance sheet, which set a new record for the BOJ in central banking circles. No economist or investor can predict the outcome of the BOJ’s unwinding process and where the risks lie for the markets and economy.

Haruhiko Kuroda, the former governor of the Bank of Japan, was unable to avenge the will to end quantitative easing. Photo: Asia Times Files / AFP

What transpired the last time the BOJ attempted to raise rates is a recurring issue for Ueda’s team? Back in 2006 and 2007, then- governor Toshihiko&nbsp, Fukui managed to end QE and cajole fellow board members to raise official rates twice.

It did n’t go well. The political and corporate elites of Japan vigorously opposed the Fukui BOJ. Soon after, the economy slid into recession. Masaaki Shirakawa’s first priority was to restore QE and reduce rates back to zero when he took over Fukui in 2008.

Then, in an effort to end deflation, Kuroda superseded BOJ stimulus efforts. In 2013, the year Kuroda took the helm, the Nikkei 225 Stock Average surged 57 %. And it kept rallying, to the point where the benchmark is now trading near its all- time 1989 high.

Though the Nikkei’s 49 % jump over the last 12 months partly reflects improving corporate governance in Japan, the BOJ’s largess is a major driver. The difficult part is only just beginning, so it follows.

How the wider financial system will withstand rising JGB yields is a subject for debate. If 10- year rates rose to, say, 2 % or even 3 %, no one can say what it might mean for banks, companies, local governments, pension and insurance funds, endowments, universities, the postal system and retirees.

The main financial assets that these interests and others have are JGBs.

For years, economists buzzed about a “mutually assured destruction” dynamic with which Ueda’s team must not contend. The other problem is related to the roughly 265 % of GDP-emitting nation’s debt. Given Japan’s shrinking and aging population, any surge in borrowing costs would alter the fiscal calculus for Prime Minister Fumio Kishida’s administration.

The onus now is on Kishida’s government to accelerate economic reforms to cut bureaucracy, modernize rigid labor markets, rekindle innovation, increase productivity and empower women. The vast majority of Japanese businesses will be affected by these decisions and others.

According to Howe Chung Wan, &nbsp, head of Asian fixed income at Principal Asset Management,” the wage growth we have seen, especially from the Rengo wage talks, has given confidence that this opportunity is to end the zero-interest rate policy with the support of government officials.”

He asserts that” Japan large corporations still have room to raise pay, given corporates ‘ sales and revenues are up higher and their pay still has room to catch up.” There will come a point when corporate margins will be slack due to higher pay, but that’s at least another year later. Smaller companies, however, may not have the same ability to pay what large corporates do”.

Given the sluggish pace of economic developments in Tokyo, Ueda arguably has the hardest job in global economics. The fragile state of Japan’s regional banking system is one of his biggest challenges. Namely, the risk of a Silicon Valley Bank– like blowup amongst Japan’s 100- plus regional lenders.

SVB’s crash in early 2023 is back in the news as New York Community Bancorp stumbles. Japan’s extensive network of medium-sized lenders provides assistance to rapidly aging populations in sparsely populated regions of the nation. That severely reduced profits before the banking woes of the past 15 years, including the effects of the global crisis of 2008, fell.

The relocation of Japanese businesses and talent to Tokyo has left less business to do. Despite hard times, Japan’s regional banks have been reluctant to merge, perpetuating this financial overcapacity.

Many people spent the last ten years hoarding government and corporate bonds instead of lending the BOJ’s credit because profit opportunities were limited. Similar actions led to the destruction of SVB and Signature Bank in New York.

In September, Japan’s Financial Services Agency announced plans to stress- test at least 20 banks to surface any SVB- like landmines across the nation. The specter of similar bankruptcies that are fueled by social media is a part of the issue.

The global financial system will be kept on its toes by the wider repercussions of a BOJ error, though.

There have been instances in the past decade where changes in Japanese government bonds have had a significant impact on the overall bond market, according to Padhraic Garvey, economist at ING Bank.

There are two elements to watch, Garvey says. ” First, the likely unshackling of the 10- year JGB opens a vacuum to the upside, and an issue is how far into that vacuum do JGBs venture”, he notes.

Second, the carry trade, which has boosted performance of spread for an extended period of time, has been loosened by the ultimate policy tightening of the reins on the front end.

Japan is finally removing negative interest rates. Image: Facebook Screengrab

Garvey continues,” Our gut tells us that longer-term rates have more room for movement than the policy rate, but moves are unlikely to be significant.”

For now, traders and investors are scrutinizing the BOJ’s every utterance for hints of what’s ahead. So far, Ueda’s team is n’t saying much.

We are monitoring any developments at the long end of the curve – maturities over 10 years and change in demand for overseas bond investments, according to Kensuke Niihara, Japan’s chief investment officer at State Street Global Advisors.” We are monitoring any developments at the long end of the curve – maturities over 10 years.

China, which stands to gain a lot from a rising yen this year, is undoubtedly more interested in that forward guidance from Tokyo, despite the fact that it is undoubtedly no major economy. China could become the real winner as the BOJ finally decides to end its QE campaign if Beijing policymakers do n’t lift a finger.

Follow William Pesek on X, formerly Twitter, at @WilliamPesek

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Japan finally raises interest rates as inflation wish comes true

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Two people in front of a Kawazu cherry blossom tree in Tokyo's Sumida district on 11 March, 2024.Getty Images
By Peter Hoskins &amp, Mariko Dude
Company writers

For the first time in 17 times, Japan’s central bank has increased the cost of loans.

The Bank of the Japan ( BOJ) increased its key interest rate from -0.1 % to a range of 0 %- 0.1 %. Following an increase in customer costs, wages have increased.

In 2016, the banks cut the price below zero in an attempt to promote the country’s stagnating market.

The increase means that there are no more any nations with negative interest rates.

People have to pay to loan money in a bank when bad levels are in effect. Numerous nations have used them to encourage people to spend money more than deposit it in banks.

Additionally, the BOJ abandoned a policy known as supply curve power (YCC), which involved purchasing Chinese government bonds to command interest rates.

Since 2016, YCC scheme has been in place, but it has received criticism for causing distortions in markets by preventing long-term interest rates from rising.

The BOJ announced the selection in a statement, saying it will continue to purchase “broadly the same amount” of government securities as before and increase payments if provides rise quickly.

Since chancellor Kazuo Ueda took office in April of last year, there had been a rise in expectations that the BOJ did suddenly raise rates.

The most recent official figures revealed that Japan’s core consumer prices remained at the company’s 2 % objective in January despite the rate of price increases having been slowed.

Nobuko Kobayashi from the consulting firm EY- Parthenon told the BBC that the country’s main firms had to raise wages for their employees to help them deal with the rising cost of living.

Earlier this month, Japan’s biggest firms agreed to raise pay by 5.28 %- the biggest pay hike in more than three decades.

Since the late 1990s, compensation in the nation have been declining as consumer prices have grown rapidly or even decreased.

However, Ms. Kobayashi believes that the business could benefit from the transfer of inflation.

” Nice, if Japan can promote production and home demand. Poor, if inflation stays directly- driven by points like conflict and supply chain disruptions”.

The BOJ has indicated that there wo n’t be any further rate increases until the future because it anticipates that “accommodative financial conditions will be maintained for the time being.”

It seems probable that trade unions will press for smaller pay increases in the next year’s negotiations, according to Marcel Thieliant of Capital Economics, of research company.

We still anticipate inflation to fall below the BOJ’s target by the end of the year, so the Bank wo n’t feel the need to raise its policy rate any further because wage growth is at its peak this year.

In February, Japan’s main share index the Nikkei 225 hit an all- period closing high, surpassing the previous record set 34 years before.

After the revisions to its standard economic growth figures, the nation had managed to avoid experiencing a technical recession this quarter.

In the final three months of 2023, the revised data revealed a 0.4 % increase in gross domestic product ( GDP ) in comparison to a year earlier.

Central banks around the world slashed attention costs as they attempted to counter the negative effects of border closures and lockdowns during the pandemic.

At the time some states, including Switzerland and Denmark, as well as the European Central Bank, introduced negative interest rates.

Since then, central bankers have aggressively increased interest rates to halt price increases, including the US Federal Reserve and the Bank of England.

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Singapore Post completes strategic review; group to be reorganised into three business units

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The board, according to SingPost Chairman Simon Israel, believes that the group’s share price “does not properly reflect the fundamental value of the company.” ” This is especially obvious considering the value of the SingPost Centre, the team’s American company and the team’s progress potential”, Mr Israel said. SingPost’s shareContinue Reading

Evergrande: China property giant and its founder accused of bn fraud

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Evergrande founder Hui Ka Yan during the 12th National People's Congress in 2016 in Beijing.Getty Images
By Mariko Dude
Business writer

Evergrande, a Chinese company that owns land, and its leader, Hui Ka Yan, are accused of overdossing$ 78 billion in revenues in the two years that preceded the company’s default on its debts.

The country’s financial markets regulator has fined the company’s mainland business Hengda Real Estate 4.2bn yuan ($ 583.5m, £458.6m ).

Mr Hui likewise faces being banned for life from China’s financial industry.

In January, Evergrande was ordered to sell by a Hong Kong judge.

The China Securities Regulatory Commission ( CSRC ) laid much of the blame on Mr Hui, who was once China’s richest man, for allegedly instructing to “falsely inflate” Hengda’s annual results in 2019 and 2020.

Additionally, Mr. Hui received a 47 million yuan fine, according to a registration from the business to the Shenzhen and Shanghai stock markets.

Evergrande did not respond to a BBC request for comment right away.

As he was being looked into for suspected “illegal acts,” Mr. Hui, who also serves as the company’s president, was subject to police surveillance in September.

The CSRC announced its intention to investigate securities fraud and safeguard little investors with “teeth and antlers,” days after it vowed to do so.

With more than$ 300 billion in debt, Evergrande has been the poster child of China’s housing crisis.

Evergrande’s entire financial health and potential reform methods have been appointed as liquidators.

That might involve reselling and seizing assets so that the profits can be used to pay off outstanding bills.

Although some would-be people in China are waiting for properties they have already paid for, the Chinese government may not want to see work stop on property developments there.

The industry, which accounts for roughly a third of the world’s second largest business, is experiencing significant impact due to issues in China’s home market.

Since 2021, when officials began to reduce the amount of money large real estate developers can borrow, the sector has been in a significant financial strain.

Numerous big home companies have since defaulted on their payments.

Official data released on Monday revealed that property investment in China decreased by 9 % between January and February.

The number of new construction goes decreased by 30 %, which is their worst drop in more than a year.

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Trump’s tariffs to hurt Chinese automakers – Asia Times

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If Republican nominee Donald Trump wins the election in November and threatens to establish a 100 % tax on Chinese automobiles made in Mexico, various Chinese automakers will experience.

Trump vowed on Saturday, while delivering a campaign statement in Dayton, Ohio, to prevent the transfer of Taiwanese trucks from Mexico. &nbsp,

Trump said,” Those big monster car manufacturing plants you are building in Mexico right now and you think you will get that if you do n’t hire Americans and sell the car to us,” not “no.” ” We are going to throw a 100 % tax on every vehicle that crosses the lot.”

Trump announced in early March that he would levy a 50 % tax on Foreign automobiles if he wins the presidency. Additionally, he suggested imposing tariffs of up to 60 % on all Chinese goods and 10 % on products produced outside of China. &nbsp,

In addition to the customary 2.5 % tariff, the Trump administration had added an additional 25 % to the Chinese market in May 2019. Joe Biden, the president of the United States, continued to carry out the plan after taking office in January 2021.

Trump made reference to his strategy to launch a new trade war with China during a conversation delivered in South Carolina on February 23. &nbsp,

” If China or any other nation makes us pay a price of, this state 100, 200 or even 300 %, and they do that, we may make them pay a mutual equivalent price of 100, 200 or 300 % right back”, he said. You screw us, and we screw you, you say that. Quite simple”.

A foreign blogger posed a question on March 12 to Wang Wenbin, a typical Chinese Foreign Ministry presentation spokesperson, about Trump’s request to increase Chinese goods ‘ tariffs to 60 %.

Wang remarked that” the US and China have a win-win formula for economic and trade.” ” Waging trade and tariff war do not offer China, the US, and the rest of the world in general””

According to Taiwanese internet, the number of cars sold by China’s car companies in Mexico increased to 134, 000 products in 2023 from 30, 000 products in 2021. Chinese autos ‘ overall market share increased from 3 % during the time to 10 %.

Major Chinese manufacturers in Mexico include SAIC Motor party’s MG Motor, Chery Automobile, JAC Motors, Changan Automobile and Geely Auto. SAIC’s MG5 and Chery’s Omoda and Tiggo 4 Pro are among the most common car models in the country.

New regulations

The Protecting American Autoworkers from China Act was introduced by Republican Senator Josh Hawley on February 28. It “aims to counter the threat posed to the US automobile industry by raising taxes on imported cars from China and closing the rear door Taiwanese manufacturers use to escape US business laws.”

The Act would result in a total tariff of 125 % on all imported Chinese vehicles, raising the base tariff rate for all imports to 100 %. &nbsp,

Regardless of the country where the car is made, Hawley claimed that the higher tariffs should be applied to all imported vehicles made by Chinese automakers. He claimed that this will prevent Chinese manufacturers from avoiding these new tariffs by using other countries, such as Mexico. &nbsp,

His request came after the China Association of Automobile Manufacturers reported in early February that China exported 4.91 million vehicles in 2023, surpassing Japan as the largest exporter of automobiles worldwide. Last year, Japan exported 4.42 million units of cars, buses and trucks. &nbsp,

In an article published on February 29th, a columnist from Hunan-based” Da Zhou” writes that if the new legislation, proposed by Hawley, will make it difficult for Chinese automakers to expand in the US. &nbsp,

The author claims that the US does not want to suffer from the effects of the importation of a sizable number of Chinese vehicles. He claims that the US lost in its auto industry competition with China because of the suggestion of imposing a 100 % tariff on Chinese automobiles. &nbsp,

He adds that American consumers who want to purchase Chinese cars at affordable prices will be negatively impacted by the potential introduction of new tariffs.

The three biggest Chinese electric vehicle manufacturers, including MG, BYD, and Chery, spoke with Mexican officials about plans to build factories south of the US border, according to the Financial Times report from December.

Mexican officials said they would remain cautious and prevent upsetting the US in this regard, but the report claimed US officials had raised concerns about Chinese investment in Mexico.

Read: US wants allies to boost chip ban against China

Follow Jeff Pao on Twitter at&nbsp, @jeffpao3

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Japan’s NEC on generative AI’s vanguard – Asia Times

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The future and potential of generative artificial intelligence ( AI ) lies in the work that goes into creating secure and reliable systems for a variety of practical applications. Japan gets it, many in the West do no.

Japan’s NEC has spent nearly three years developing its own AI computer, creating the best-performing large language model ( LLM) in its offices and businesses, and analyzing various AI products. When they work effectively, they will be marketed to paying customers.

NEC is Japan’s leading company of software-based solutions for business, industry, and social network, as well as Japan’s largest supplier of technology and communication technology.

An LLM is an AI engine that uses heavy learning ( machine learning based on neuronal network ) and a large database to compile data and create human language-based language quickly.

Since the trials began in May 2023, NEC executive vice president and chief technology officer ( CTO ) Motoo Nishihara recently told the Nikkei newspaper that his company has developed the AI capacity to cut the time needed to prepare documents in half and cut the time to record meetings from 30 minutes to five.

NEC furthermore mentions reductions of up to 80 % in the amount of time it takes to make source code for domestic system development. The company’s conceptual Artificial system is being used about 10, 000 times a time by nearly 20, 000 workers, according to reports. &nbsp,

The AI computer from NEC started working in March 2023. It has reportedly the highest computing power among Japanese supercomputers, with 928 graphics processing units ( GPUs ) from Nvidia and central processing units ( CPUs ) from Intel. It also supports NEC’s proprietary LLMs and other AI operations.

In July 2023, NEC launched its relational AI company, which includes permissions for the use of its LLMs, equipment, software and consulting services. The service includes handling data leaks and errors, as well as creating versions of the knowledge developed by businesses in order to create tools that can use it properly.

According to the Rakuda benchmark survey conducted by YuzuAI, a Tokyo-based organization that encourages collaborative development of the technology, NEC’s Japanese-language LLMs outperform the competition by 59 % to 95 %.

NEC’s LLMs are also flexible and can be linked to industry-specific functions in the fields of math, physics, and business. Small power consumption allows for the company’s smaller LLMs to get top deployed, which can then be combined with cloud computing services.

This makes it possible to automate different operations by breaking down enterprise processes into manageable steps and networks, freely deploying and linking AI models, and managing protection and networks. To make it possible to process real-world events, NEC’s LLMs can also be combined with the company’s scanning and audio-sensing systems.

NEC is recognized as the world’s leading developer of biometric authentication technologies, including face, iris, and fingerprint recognition, according to evaluations from the US National Institute of Standards and Technology ( NIST ). During Covid, masked employees were able to be identified using the experience identification system at NEC’s Tokyo head office.

According to market research company Frost &amp, Sullivan, NEC is the industry leader in mouth recognition technology applied to airports immigration and board processes, national ID and law enforcement. Overseas markets include Vietnam, India, Europe and the US.

The company claims a competitive advantage as a result of its extensive video recognition AI, which transforms videos into coherent sentences.

NEC finds use for this in fields as diverse as insurance, healthcare, manufacturing, construction and aviation. NEC is first in the US for patents pending for video recognition.

Similarity assessment and location prediction technology can, in another example, cross-referencing with satellite and aerial imagery to identify disasters and their exact locations from a constant flow of images. When combined with an LLM, an ongoing disaster can be quickly described, improving the speed of emergency response.

A specialized LLM using NEC’s cyberattack risk assessment technology can respond to incidents and inquiries quickly with diagnosis results and reports that a person who is n’t an expert can understand.

The time needed to prepare those records and documents can be reduced by half in a project with Tohoku University Hospital, resulting in a reduction in the number of doctors needed. Local government is another area where lengthy paperwork can be greatly reduced with LLMs.

Over the next three years, NEC management is targeting generative AI sales of 50 billion yen ( US$ 335 million ). That is less than 2 % of the company’s total sales, but the figure understates the likely impact on the company’s business.

The development of generative AI and LLMs into business- and industry-specific solutions should result in a significant improvement of NEC’s telecom services, social infrastructure, and national security operations. Additionally, it ought to have a discernible influence on how people perceive AI.

Mark Anderson, CEO of Pattern Computer, an American AI and machine learning company headquartered in Friday Harbor, Washington, asks this question about ChatGPT:

It is worthwhile to ask what the next ten years of AI might look like long after the love affair and pendular blowback have ended, at a time when the world has gone gaga over a piece of software that does little more than reflect our language.

The Office of the Director of National Intelligence and Central Intelligence Agency ( CIA ), in its IC OSINT Strategy 2024- 2026 document, writes:

“GAI]generative artificial intelligence ] can be a powerful tool to enable timely and insightful OSINT]open source intelligence ] production, including by aiding the identification of common themes or patterns in underlying data and quickly summarizing large amounts of text. In order to reduce the potential risks of GAI, including inaccuracies and hallucinations, OSINT tradecraft and training must also be updated and refined.

Generative AI blowback, inaccuracies, and hallucinations can be prevented by carefully managed source intelligence and rigorous testing of applications, i .e., the quality control that is essential to any precision manufacturing process, for which Japan is well known. It’s precisely what NEC is now doing.

Follow this writer on&nbsp, X: @ScottFo83517667

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Laguna Lakelands: A new 1 million-sq-m residential development in Phuket by Banyan Group

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Phuket’s popularity is also reflected in the relatively cheap prices it offers. ” High-quality house is also significantly less expensive in Phuket than in most of the customer cause areas like Russia, China, or Europe,” said Stuart Reading, managing chairman of Group Property Development at Banyan Group.

Ho added,” Phuket is now recognized as a global target along with sites like Ibiza and the Caribbean.” Phuket and Bali are the only significant beach holiday destinations in Asia that have existed. Bali has been falling behind because it has its own problems with waste control, and the traffic congestion is getting worse then. Phuket also enjoys the best conditions, and it’s always nice and dry along the Andaman Coast, which makes it appealing to those who are escaping the harsh winters at certain periods of the year.

In Laguna Lakelands, as many as 5 000 homes are anticipated over the next 5 to 10 times. Five themed home areas – Hillside, Orchard, Forest, Lakeside and Lagoon – will be connected by broad walkways and riding paths. Step 1 will include Waterfront Villas with four rooms on average and a built area of 560 square meters as well as private pools and gardens, as well as four- and seven-storey complexes with top infinity pools and enclosure one to three-bedroom units. Costs start at US$ 190, 000 for the smallest rooms and US$ 1.7 million for the shore villas.

As the Banyan Group turns 30 this time, it is appropriate that such an ambitious task has been added to its roster. In addition to this, Ho wants to expand its list of hotels to 100. We never want to boast about the effects we make, but we have seen what we did in terms of conservation from the start to the end. Always intended to make an effort to win over others, leave a reputation, etc. Other developers have come to our defense and said,” That’s not a bad thing to do,” as a result.

He added:” To that extent, we’ve done things in hospitality that is quite novel, but we have n’t actually done anything in property development that is new and that can make an impact, but Laguna Lakelands could make an impact”.

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