Why Apple’s not decoupling from China – Asia Times

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Apple’s latest move to compete with a resurgent Huawei and strengthen its position in the world’s largest smartphone market has resulted in the opening of a new research and development ( R&amp, D) center at Apple’s Shenzhen facility. It is Apple’s five product R&amp, D hospital in China.

The action demonstrates that Apple continues to put investor interests before the interests of anti-China US officials. It also undercuts rumors that Apple is leaving China for India, when in reality, it is just adding India to its long list of important areas and factories while even strengthening its presence in China.

Apple’s third-largest local market, after the Americas and Europe, is in Greater China, where sales have just decreased as a result of orders to outlaw iPhone use in some government and state office locations. In the nine months to June 29, 2024, Greater China accounted for 17.5 % of Apple’s entire profits, down from 19.6 % a year earlier.

Apple’s Greater China sales by volume were down 9.7 % year-on-year, while its total sales increased by 0.8 % over the same nine-month period. In the third quarter alone, Apple reported a 6.5 % year-on-year decline in sales by volume in Greater China, compared with a 4.9 % increase in total sales.

The decline came as a result of state directives mandating that employees of the government and the state-owned enterprise ( SOE ) stop bringing iPhones and other foreign smartphones to the office. As of December last season, the technical war-tinged proclamation extended across at least eight regions, including rich coastal regions, Bloomberg reported. &nbsp,

That’s evidently given local manufacturers a dynamic increase. In August, according to Chinese consulting company CINNO Research, the value of Huawei’s mobile smartphone sales in China exceeded those of Apple for the first time in 46 weeks. In product words, Huawei overtook Apple in the first fourth of 2024, according to statistics compiled by Singapore-based business research firm Canalys.

According to the report from the Huawei Central Newsroom, Apple and Huawei are “locked ears” in the race to win the top spot in the Foreign Double 11 shopping festival, which runs through November 11.

All of the leading 10 high-end phones sold on China’s JD.com browsing site are from either Apple or Huawei. The checklist includes the phone 15 Pro Max, phone 16 Pro Max, phone 16 Pro, Huawei Mate 60 Pro, Huawei Pura 70 Pro, phone 15, phone 16, Huawei Pura 70 Pro , Huawei Mate 60 Pro and Huawei Mate X5.

Huawei made a splash on September 10 with the release of its Mate XT Ultimate Design dual-hinge, three-panel sliding handset. Priced at US$ 2, 800 or more depending on storage capacity, it preempted the release of Apple’s iPhone 16 in China with its 10.2-inch highest screen size and another top-of-the-line capabilities.

Apple announced on October 10 that its fresh “advanced software R&amp, D center” would be located in the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone in response to this competitive environment.

The facility will be Apple’s key applied research lab in the Guangdong-Hong Kong-Macao Greater Bay Area, succeeding an older service established in 2016. Apple maintains another R&amp, D locations in Beijing, Shanghai and Suzhou.

According to The Shenzhen Daily,” The test is intended to contain the business operations of Apple Greater China, including the R&amp, D operations originally planned for the Asia Pacific, which will further strengthen Shenzhen’s key role in Apple’s smart manufacturing and supply chain.”

Back in 2016, Apple CEO Tim Cook said,” We realized the skill level of Shenzhen’s factories was gradually leading other places in the world” .&nbsp, This is even more the case now.

Over 1, 000 employees at the center will work on technology advancement, smart developing and testing for iPhones, iPads and other products. Additionally, they may work with local manufacturers to improve supply chains.

China’s Communist Party-run Global Times quoted Li Yong, a senior research fellow at the China Association of International Trade, saying,” This is a reasonable decision made by Apple amid]a ] complex global political and economic environment”.

For Apple to maintain its position in the lucrative Chinese market, it should be reasonable and likely needed. According to Global Times, Apple has increased its operations in China despite the US government’s continued efforts to “decouple” relations with China with more severe sanctions, false accusations, and repeated provocations against Chinese businesses,” according to Global Times.

According to the content, Apple’s chief operating officer Jeff Williams traveled to China in July, shortly after the Communist Party’s next ministerial conference approved a resolution calling “opening up” to the outside world a “defining characteristic of Chinese development.”

Williams claimed that more than 70 Apple suppliers are headquartered in Guangdong province only,” which determines the particular impact of the Guangdong place centered on Shenzhen to Apple’s offer network.” ( Guangdong was one of the coastal provinces that mandated government and state firm employees to stop bringing iPhones to work. )

Of 187 suppliers that accounted for 98 % of Apple’s direct spending on materials, manufacturing and assembly last fiscal year, 157 had operations in China and 56 were Chinese-owned. In comparison, only 14 were Indian-owned. Despite recent rapid growth, India still accounts for less than 5 % of Apple’s total revenues.

Apple and its CEO, Cook, have received a lot of negative feedback from US politicians who oppose the company’s business practices in China.

Senators Ted Cruz of Texas, Ron Wyden of Oregon, Tom Cotton of Arkansas, and Marco Rubio of Florida, as well as representatives Alexandria Ocasio-Cortez of New York, Mike Gallagher of Wisconsin, and Tom Malinowski of New Jersey, wrote to Cook in October to “exprim our strong concern about Apple’s censorship of apps, including a prominent app used by protesters in Hong Kong, at the behest of the Chinese government,” respectively.

Senator Josh Hawley of Missouri wrote in November 2022,” I want to know why Apple continues to support and abet the totalitarian regime in China. [Apple’s ]” activities in China pose significant material risks to your stakeholders.

Congressman John Moolenaar of Michigan, the head of the Chinese Communist Party’s House Select Committee, wrote to Defense Secretary Lloyd Austin in late September 2024 about the alleged threat posed by Chinese flat panel displays. Earlier in the month, Apple had begun sourcing OLED displays from China’s BOE Technology, a company that Moolenaar identifies as linked to the Chinese military.

However, reports in October suggested that the Biden administration is discussing renewing the US-China Science and Technology Agreement, which expired in August. The US side does not want to completely decouple from China, but rather wants to modify the agreement to better protect US intellectual property.

On the other hand, Moolenaar contends that” We absolutely should not encourage further scientific or technological collaboration with the Chinese Communist Party.” Before the US presidential and congressional elections in the coming months, how Moolenaar and other politicians ‘ anti-China sentiments might impact Apple is likely to be known.

Follow this writer on&nbsp, X: @ScottFo83517667

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Now’s not the time to short the yuan – Asia Times

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As the” Trump business” returns to create fear of political upheaval great once, global hedge funds are racing to little China’s yuan money.

They are betting that Trump’s designed combination of tax and business measures will boost local rise if elected, and that China may seek to become more dynamic.

However, betting on a weaker yuan could prove to be a lot of a mistake if the last several decades of the Xi Jinping age are any link.

Let’s begin with the Trump estimate. Obviously, the November 5 US vote is a true toss-up. One time, polls suggest Kamala Harris ‘ Democrats may emerge. The second, hp emerges to telephone a Trump 2.0 White House is coming.

This year, the speed seems to be on Trump’s part. In the US$ 300 billion dollar options business, hedge funds are placing higher stakes on a weaker renminbi. Yuan uncertainty is currently at its highest level since the middle of 2022.

However, it seems as though Trump’s 2017-2021 phrase will be forgotten due to fears that he might prefer a stronger dollar. Trump was unwaveringly in favor of a lower US transfer rate to benefit American companies and stifle China.

It’s also worth remembering Trump’s abuse on the US Federal Reserve. Trump was angry that his chosen Fed chair, Jerome Powell, continued father Janet Yellen’s price hikes. He then browbeat Powell into cutting rates, adding stimulus in 2019 that the economy did n’t need.

On top of the Fed’s broken trust, the US federal debt soared under Trump and present President Joe Biden, then topping$ 35 trillion.

Include social fragmentation to the picture until January 20, 2025, when the next management will take office. Even if Trump loses, no significant journalist thinks he will go away quietly.

One of the causes of Fitch Ratings ‘ cancellation of its AAA standing on US bill, joining Standard & Poor’s, was the fallout from the uprising on January 6, 2021, which Trump fomented. The next rating agency to assess America AAA is now Moody’s Investors Service, the source of the current query.

The Beijing component of this riddle is more crucial, though. There are at least four causes why Beijing is unlikely to help the yuan to fall very little.

One, a falling yuan may make payment on onshore bill more difficult for very obliged organizations like home builders. That would boost proxy risks in Asia’s biggest market. The last thing Xi wants is to see# ChinaEvergrande trending once more in the internet.

Two, the economic easing needed to sustain the yuan’s declines — especially with the Fed cutting rates, also— could harm Xi’s deleveraging efforts. Xi’s interior group has made significant strides over the past few years in eradicating financial abuse.

This explains why Xi and Premier Li Qiang have been reluctant to permit the People’s Bank of China ( PBOC ) to cut rates more forcefully, despite China Inc.’s reputation for deflationary pressures.

Three, increasing the yuan’s global usage is probably Xi’s biggest economic transformation achievement since 2012. In&nbsp, 2016, China&nbsp, won a place for the yuan in the International Monetary Fund’s” special&nbsp, drawing&nbsp, right” box, joining the dollar, yen, euro and pound.

Since next, the stock’s apply in business and banking has soared. Increased easing then may dent trust in the yuan, slowing its headway toward reserve-currency position.

Fourth, it may produce China a more contentious and important issue during a distinctly divisive US election. Trump’s Republicans and Democrats who are close to Harris concur that they must be strong with Beijing.

Beijing’s claims that it is manipulating the renminbi lower could stoke bipartisan support in Washington. especially in light of the Trump administration’s plan to impose 60 % taxes on all products made in China.

” As well as levies, the badge of ‘ money manipulator’ may be a second red flag for an Eastern economy”, said Robert Carnell, Asia-region head of research at ING Bank.

A weaker renminbi would be used by Xi to sign a sense of anxiety and anguish. Certainly the stories Xi wants international investors to be thinking about as the year 2025 draws near.

Otherwise, Xi and Li have been ratcheting up the signal without triggering sounds of 2015, 2008 and additional past incidents of large pro-growth “bazooka” storms.

Earlier this month, Beijing cut borrowing costs, slashed businesses ‘ supply need numbers, reduced mortgage costs and unveiled market-support resources to put a floor under share costs. Bolder fiscal stimulus steps are being mulled, too.

On Thursday ( October 17 ), Team Xi raised the loan quota for unfinished housing projects to 4 trillion yuan ($ 562 billion ), nearly double the previous amount.

The bump was less than markets wanted, as evidenced by Chinese stocks falling into” correction” territory this week. The&nbsp, CSI 300 Index&nbsp, ended Tuesday down 1.1 %, bringing its declines since an October 8 high to roughly 11 %.

The bigger issue, of course, is repairing the balance sheets of giant property developers.

” They’re still trying to talk the talk, with more noise about stabilizing the property market”, said Stephen Innes, an economist at SPI Asset Management.”

As Thursday’s housing moves were” rolled on, it was clear: traders were not thrilled,” Innes said”. Let’s be honest, though – China’s property mess is n’t something that can be patched up with a few speeches and half-baked measures.”

According to Morgan Stanley economist Robin Xing, “resolving the debt issue is a crucial step in stopping a key deflationary downward spiral,” while adding that direct demand stimulus is equally crucial.

Team Xi has made several commitments over the past few years to develop a method to remove toxic assets from property developers ‘ balance sheets.

Beijing has in fact demonstrated what is required to turn things around: a bold plan to boost the finances of high-quality developers, encouraging mergers and acquisitions, promoting property investment so that more people no longer consider real estate as their only option, and establishing social safety nets to encourage households to spend more and save less.

Indeed, over the past few decades, there have been numerous crises from which to draw lessons. They include Japan’s efforts to remove toxic loans from banks ‘ balance sheets in the early 2000s, as well as the US’s use of the Troubled Asset Relief Program, or TARP, to deal with troubled assets after 2008.

More fundamentally, Xi’s reform team must step up efforts to recalibrate growth engines away from exports toward innovation and high-niche industries.

Investors should be reassured that the brutal crackdowns on tech companies have ended in 2020. China also needs to shed its adversity toward the fundamental level of economic transparency that the world’s funds demand.

But as Xi and Li understand, a weaker yuan wo n’t bring about any of these big-picture reforms. It might give China a little more time to achieve its 5 % growth goal this year, but at a cost that Chinese leaders appear unwilling to pay.

There are myriad other reasons why, in the US, one reason is to believe that the dollar’s outlook will be more red ink than black.

One of the issues with the US national debt, which is now twice the size of China’s annual gross domestic product, is that it is two times that large. However, there are a good chance that Trump will backtrack on some of the financial planning moves he made during the first, only to have them halted by economic advisers in a second term.

One was Trump considering canceling large sums of the US owed to Beijing in order to punish Xi’s economy in the midst of trade negotiations. These considerations were hardly ever out of the blue.

In May 2016, six months before he was first elected, &nbsp, Trump, a serial bankruptcy offender as a businessman, floated reneging on US debt in a&nbsp, CNBC&nbsp, interview.

” I would borrow, knowing that if the economy crashed, you could make a deal,” &nbsp, Trump&nbsp, said”. And if the economy was good, it was good. So therefore, you ca n’t lose.”

Moody’s Analytics economist Mark Zandi spoke for many when he called the idea of reneging on US debt” complete craziness” that” would be financial Armageddon.”

Trump&nbsp, 1.0 considered a dollar-to-yuan devaluation of the kind that Argentina or Vietnam might employ. In April, for example, Politico&nbsp, reported that Trump 2.0’s inner circle is” actively debating” an Argentina-like pivot at the behest of advisors like&nbsp, Robert&nbsp, Lighthizer, Trump’s former international trade representative.

Yet, instead of” America first,” such a detour might do more to advantage China in the longer run. Buenos Aires would be operating a Group of Seven economy if devaluation were a method for prosperity. Turkey and Zimbabwe would be booming. As Asia’s largest economy, Indonesia would be giving China a run for its money.

To China’s advantage, the US trying this gambit would increase inflationary pressures and expose the dollar’s status as a reserve currency.

Investors generally believe that the policies they are proposing to promote US reindustrialization, such as steep tariffs on goods imported, will tend to result in dollar strength in comparison to other currencies, according to a note from Global Analysts.

But, they added, the” likely consequences of this disconnect include a potential conflict between the White House and Fed, and a diplomatic drive to&nbsp, weaken the US dollar, possibly involving a new version of the 1985 &nbsp, Plaza&nbsp, Accord.”

Trying such a gambit in 2024 would be extraordinarily destabilizing. The odds are very low that Xi would choose to pursue it. China recalls how Japan’s acceptance of a stronger yen ravaged its economy for decades to come, aside from the Communist Party’s aversion to being pushed around.

Even so, hedge funds that are betting on a weaker yuan in the months ahead might be ignoring the bigger picture of the Xi era.

Follow William Pesek on X at @WilliamPesek

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Love, Bonito lays off dozens of staff; roles in Singapore impacted

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SINGAPORE: Fashion store Love, Bonito has cut about 6.9&nbsp, per cent of its total labor, or 29 commercial functions worldwide.

Fourteen roles in Singapore were impacted, it said on Thursday ( Oct 17 ) in response to CNA’s query.

Impacted&nbsp, people will be provided a friendly package that is “in range with local rules”, Dione Song, CEO of Love, Bonito told CNA.

This includes a pay based on the length of service, as well as the payment of pro-rated monthly leave and see.

The&nbsp, people ‘&nbsp, medical coverage will also be extended. Like, Bonito will even work with the&nbsp, important organizations to give career change support, alongside writing recommendation letters.

The small, privately owned company stated that its “immediate emphasis will be on helping impacted people as well as remaining staff through this change stage.”

Like, Bonito has 26 outlets across various locations in Asia: Singapore, Malaysia, &nbsp, Indonesia, Cambodia, Hong Kong and the Philippines.

As it looked to expand into other marketplaces like the United States, the clothing brand, which first operated as a blogshop, received US$ 50 million in financing in 2021.

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Govt launches rebuild drive

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Recovery energy aims for B110bn increase

PUBLISHED: 17 Oct 2024 at 04: 45

Prime Minister Paetongtarn Shinawatra speaks at the launch of the government's latest project to create a sustained economic stimulus chiefly targeting small-scale businesses that could generate up to 110 billion baht for the economy. (Photo: Chanat Katanyu)
Prime Minister Paetongtarn Shinawatra addresses the president’s most recent initiative to create a sustained economic stimulus aimed primarily at small-scale companies, which may bring in up to 110 billion ringgit for the business. ( Photo: Chanat Katanyu )

With the aim of increasing the economy by up to 110 billion baht, the state has launched a global economic recovery program, enlisting big companies to help smaller operators.

The campaign, which runs from September this year until January, has three parts: reducing costs, generating income, and creating opportunities with a focus on small operators, who account for 90 % of the country’s business operations and serve as the backbone of the economy.

Prime Minister Paetongtarn Shinawatra affirmed the government’s dedication to stimulating economic engagement at the start on Wednesday, citing the government’s dedication to promoting consumer investing and creating company opportunities. Last season’s 10, 000-baht cash handout marked a significant step in this regard.

According to Ms. Paetongtarn, the state anticipates the effort will boost the economy by up to 110 billion baht, noting that the private sector backs the execution while the public sector is the driving force behind it.

In terms of lowering rental charges for operators who book spaces owned by condition agencies and participating companies, the government has pressed for assistance from state agencies and businesses. 12 business operators in Bangkok who collaborate with the Bangkok Metropolitan Administration have agreed to cover the cost of half the rental charges for about 11, 000 suppliers until the close of the year.

Additionally, Thailand Post and participating partners have agreed to lower transportation costs because the Commerce Ministry and various state organizations have agreed to waive rental charges for over 3, 000 sellers.

Ms. Paetongtarn argued that the running of a company requires significant expenses like transportation and rental charges. She said that the Defense Ministry and the Interior Ministry does make certain areas at military outposts and municipal rooms into areas as a result of the government’s efforts to boost the number of small-scale businesses. More than 1, 300 sites will be created globally.

Additionally, the government is working with key manufacturers and wholesalers to lower the cost of consumer goods and hold reduction events. More than 130 users with over 100, 000 trees may take part in this system, she said. The state may offer both short- and long-term programs to boost the economy, according to the prime minister.

The kick-off was joined by Deputy Prime Minister Phumtham Wechayachai, Commerce Minister Pichai Naripthaphan, Deputy Commerce Minister Suchart Chomklin and staff from the personal business including CP Group, The Mall Group, BJC, Big C, PT, PTT Oil and Retail Business Plc, Sea Value, Thai Union and OSOTSPA.

Mr. Pichai referred to the economic recovery strategy as the first step in the healing process as a result of the country’s efforts to attract investments from a range of industries. He claimed that investments in electronic circuit boards totaling 150 billion ringgit were made last year, while data center purchases totaling 160 billion baht were made this month, excluding investments of 30 billion ringgit from Google and another 30 billion ringgit from the UAE.

Ms Paetongtarn’s subsequent visits to Qatar and Laos even drew funding interest in many areas including food safety, he added. The projected 110-billion-baht number is expected to come from three solutions. Of the full, 78.7 billion ringgit may stem from increased paying among vulnerable groups who received a 10, 000 bass money flyer. This group is expected to spend about 54 % of the flyer on cheap items as part of the economic recovery job.

On 18.7 billion ringgit will be used to reduce business costs and expand opportunities for little operators through festivals and other unique events to encourage saving. The remaining 14.4 billion ringgit will be generated by manufacturer cost reductions and sales activities at section businesses and retail/wholesale stores. Meanwhile, KKP Research has revised its economic forecast for 2024, increasing the GDP projection from 2.6 % to 2.8 %, and for 2025, from 2.8 % to 3.0 %.

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Farms to fame: China’s rural influencers redefining country life – Asia Times

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In the peaceful backwaters of Yunnan, Dong Meihua—though her followers recognize her by the common alias&nbsp, Dianxi Xiaoge—has done something amazing: She’s made the rural simplicity of rural China&nbsp, attractive to millions.

A village home transforms into a stage in her hands, and the rhythms of farm life turn into a powerful story as any novel. She is one of the many remote influencers who has come to terms with their roots.

China’s landscape is emerging as an unlikely center of popular content in a modern revolution that turns established narratives on its head. One of the dozens of influencers who is changing the way people view the landscape is through social media is Xiaoge.

This new type of social media influencers is serving up a dinner of rustic bliss to millions of urbanites by appealing preconceived notions of remote China as a countryside of hardship and stagnation. The Taiwanese government has endorsed influencers who promote lovely remote images, encouraging a narrative shift.

This encourages regional satisfaction and minimizes urban-rural divides. It even fits well with Beijing’s remote regeneration strategy.

Hardship to renaissance

To fully understand any sensation, it’s important to first consider the traditional context.

For years, China’s landscape was associated with pain and backwardness. In the late 1950s and early 1960s, Mao Zedong’s disastrous attempt to industrialize a mostly agrarian nation was the Great Leap Forward, which devastated remote communities and caused widespread famine that left tens of millions of people dead.

The following Cultural Revolution, in which Mao strengthened his grip on power through a large clean of the world’s elite, more disrupted typical rural living as educated youngsters were sent to the countryside for “reeducation”. The agrarian economy and psyche were left with a lot of scars by these tragic events.

However, the “hukou” program, which since the late 1950s has tied societal benefits to a person’s birth and divided citizens into “agricultural” and “nonagricultural” internship position, has created a striking divide between urban and rural citizens.

The transformation era of Mao’s son, Deng Xiaoping, beginning in 1978, brought fresh difficulties. As China’s places boomed, the land lagged behind.

Millions of rural Chinese have migrated to cities for better opportunities, abandoning aging groups and hollowed-out areas. In 1980, 19 % of China’s populace lived in urban areas. By 2023, that figure had risen to 66 %.

Since then, federal guidelines have expanded significantly toward remote areas. The emancipation of agricultural fees in 2006 heralded a significant milestone, demonstrating a renewed determination to remote success. Most lately, President Xi Jinping’s “rural revival” has put landscape creation at the forefront of national legislation.

With the release of the Internet Plus Agriculture effort and the funding for Taobao Villages, remote e-commerce platforms allow remote farming communities to link to industrial markets.

Notwithstanding these efforts, China’s urban-rural income gap remains substantial, with the average annual per capita disposable income of rural households standing at 21, 691 yuan ( about US$ 3, 100 ), approximately 40 % of the amount for urban households.

Enter the “new producer.”

Farmers who are digitally savvy and people who live in the land have benefited from using memories and integrity to appeal to Chinese social media. With their portrayal of rural China as both an exquisite escape and a vibrant cultural hub, stars like Li Ziqi and Dianxi Xiaoge have a sizable following.

This social internet phenomenon is known as the “new grower,” but in Chinese Chinese. This encapsulates the rise of remote artists who use programs like Weibo and Douyin to record and market their way of life. Get Sister Yu as an example: With over 23 million followers, she cultivates the rural charm of northeast China by preparing nutritious meals and picking vegetables. Or Peng Chuanming, a Fujian farmer whose videos on how to make conventional teas and restore his house captivated millions.

These systems have transformed rural living into online gold since 2016; What started out as plain documentation has grown into a trend that is so popular that it is now a relic of the past, driven both economically and nostalgically. China’s post-Covid-19 financial decline, marked by soaring youth unemployment and diminishing industrial options, has driven some to find incomes in the countryside.

YouTube video

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In China’s megacities, where the air is thick with pollution and opportunity, there’s clearly a hunger for something real – something that does n’t come shrink-wrapped or with a QR code. And rural influencers provide glimpses of a life some believed to have lost due to China’s rapid development.

Compared with their urban counterparts, remote celebrities carve out a special niche in China’s large cultural media landscape. The Chinese TikTok exploits a unique cultural idealism and a desire to connect with nature, despite dominating platforms like Weibo and Douyin, which is dominated by clothing bloggers, gaming streamers, and lifestyle experts.

In addition, their material concentrates on the rising popularity of short video channels such as Kuaishou and Pinduoduo, augmenting their approach across a broad demographic, from romantic taxpayers to eco-conscious teenagers.

This is not, however, just digital escapism for the masses. Tourism is booming in once-forgotten villages. Traditional crafts are expanding their markets. In 2020 alone, Taobao Villages reported a staggering 1.2 trillion yuan (around$ 169.36 billion ) in sales.

The Chinese government, never one to miss a PR opportunity, has spotted potential. Rural revitalization is now a hot topic among government officials. It’s a win-win: Villagers net economic opportunities, and the state polishes its reputation as a champion of traditional values. Government officials have used platforms like X to promote China’s efforts to revitalize rural areas to foreign audiences.

Authenticity or illusion?

As with all algorithms, there’s a catch to the new farmer movement. The more popular rural influencers become, the more pressure they face to perform “authenticity”. Or put another way, the more realistic it appears, the less realistic it might actually be.

It raises another question: Who truly benefits? Are we seeing rural empowerment or a commodification of rural life for urban consumption? The line between genuine representation and curated fantasy blurs as corporate sponsors and government initiatives start to accumulate.

Local governments, recognizing the economic potential, have begun offering subsidies to rural content creators, causing skepticism about whether this content is truly grassroots or part of a bigger, state-led campaign to sanitize the countryside’s image.

Despite the conceivable pitfalls, the new farmer trend offers an opportunity to challenge the urban-centric narrative that has dominated China’s development story for decades and to consider whether progress always means high-rises and highways or if there is value in preserving ways of life that have sustained communities for centuries.

More importantly, it’s narrowing the cultural disconnect that has long separated China’s rural and urban populations. These viral videos foster understanding in ways that no government program ever could in a nation where your hukou can control your destiny.

Mitchell Gallagher is a PhD candidate in political science, Wayne State University

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

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Intel forsaking its past and losing its future – Asia Times

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Intel, again among the country’s leading tech firms, is struggling. The US intel, which was founded as a start-up in 1968, has since grown to success thanks to wise business and technological choices combined with proper product investments.

The business immediately established itself as a leader in the market through the creation of intelligent equipment and proper, cutting-edge products under the leadership of a beautiful founding team.

But those brilliance time are largely over. In a time filled with fresh opportunities, Intel is quickly losing ground to international rivals as it struggles to remain one of the world’s top chipmakers.

Some economical factors have hampered Intel’s position, but perhaps the most significant has been the bank’s change in strategy.

Intel’s owners were beautiful strategists focused on maintaining global tech leadership through fast, forward-looking investments. This goal, met time and time again, achieved remarkable monetary returns.

Then came along exceedingly clever foreign competitors that targeted Intel’s primary products, decreasing their success. Older manager’s response has been to expand the company’s product profile through acquisitions aimed at increasing profitability, frequently at the price of domestic efforts to improve production performance and new product development.

The outcomes of this proper change are then obvious. Intel’s production performance has clearly slipped vis-à-vis rivals like Taiwan’s TSMC and South Koreas Samsung, while several, if any, of the acquisitions have built new business speed or organization profitability.

In the meantime, Intel has largely missed the boat with regard to the phenomenal growth of AI, leaving ambitious rivals like Nvidia and perhaps AMD with the majority of the newly emerging novel chip markets.

Intel also has a chance to recover given its abundant resources and innovative federal support provided by the CHIPS Act. However, the business has previously already paid a high price by overlooking and possibly forsaking the roots of its first success in search of simple consolidation victories when faced with fierce new competition.

To be sure, Intel is not alone. There are several curriculum examples of US technology companies that once had a winning reputation but lost their way as a result of poor proper decisions.

Consider, for example, the RCA Corporation. Founded in 1919, the business grew into one of the nation’s leading tech firms, enabled and driven by RCA Laboratories ‘ amazing history of research-driven development.

At its innovative peak, RCA’s patent portfolio reached across consumer electronics (televisions ), military systems ( radar and space satellite communications ), semiconductors ( invention of CMOS ) and lasers – to name but a few.

CEO David Sarnoff epitomized RCA’s unique spirit and enthusiasm for releasing innovative systems products to the general public. His plan succeeded in building a multibillion-dollar income business, while often with unequal success.

Through acquisitions of businesses that were less prone to the fluctuations and fluctuations of technology, his successors as CEO sought to increase the company’s profitability. The business expanded into other businesses, including those involving food, car rentals, finance, and various industries, at the expense of its main technology lines during that geopolitical change. &nbsp, &nbsp,

These extensive expansions did not go as well as anticipated, leading to the merger of RCA and General Electric, which ultimately became a mediocre-performing company.

The importance of senior administration perception is the subject of this lesson. Organizations that were founded on technology and innovation must concentrate on the factors that contributed to their original success.

In my experience with private capital, tech companies ‘ ability to understand markets, manage resources, and find and retain the most talented employees who are knowledgeable about the vision of their company depends on these factors.

Contest is a biological phenomenon, especially in the technology sector. Effective tech firms are aware of this and are equipped with the tools necessary to compete and triumph. Intel’s top managers may be wise to take notice.

Henry Kressel is a technician, engineer writer and business head. He has invested in tech companies for a long time in private ownership.

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Will China’s epic spend be enough? – Asia Times

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China’s unrelenting monetary expansion was once known as the world’s wonder. Oh, what a remembrance.

China has been dealing with an economic downturn in the last few years as a result of colliding problems, many of which are world-class. Consumer prices have been approaching negative place, there’s an oversupply of accommodation, and children unemployment has soared.

The Taiwanese government has been forced to intervene due to increasing pressure. Beijing has approved a number of important economic stimulus measures over the past month to revive the country’s struggling business.

This stimulus may have the potential to be” the largest in story” in nominal terms, according to a study word from Deutsche Bank. But there’s still a lot we do n’t know. What kinds of actions have been included in this package so much, and has China already been there?

What’s in the item?

On September 24, Pan Gongsheng, chancellor of China’s northern lender, unveiled the government’s boldest intervention to raise its market since the pandemic.

Reduce the amount of cash commercial lenders are required to carry in reserves and lower the loan rates for existing homes were among the initiatives. By allowing the banks to lend out more money, the latter is anticipated to reinvest about 1 trillion yuan ( US$ 140. billion ) into the financial sector.

On top of this, 800 billion renminbi was announced to develop China’s money market.

A new 500 billion yuan economic policy hospital was added to this to facilitate easier access for institutions looking to purchase stocks, as well as a 300 billion yuan re-lending facility to aid in faster housing sales that were already sold.

Further evidence of financial revival became visible at a&nbsp, Politburo meeting&nbsp, of China’s top government officials two weeks after this statement.

Xi Jinping, the president of China, emphasized the need for an economical revival. Xi also encouraged officers to “go strong in helping the market” without having to fear the consequences.

A joint policy offer was released on the same day that seven government sections released a joint plan to maintain China’s 500 billion yuan cheese sector, which has experienced severe damage from milk and beef prices decline since 2023.

Business coaster

First, the market’s reaction was overwhelmingly positive. Maybe too optimistic. In the last week of September, investment areas in Shanghai, Shenzhen and Hong Kong saw their biggest regular rise in 16 years.

On October 8, the Shanghai and Shenzhen stock markets reported an extraordinary 3.43 trillion renminbi in churn following China’s National Day holiday. But, anticipation for more stimulus measures were met with sorrow.

From the funds for 2025, China’s National Development and Reform Commission approved 100 billion yuan in expenditures. That was n’t enough to sustain market optimism. The most drastic decline in Chinese securities in 27 years occurred on October 9.

This decline only gotten worse a few days later, when the Chinese Ministry of Finance made the suggestion that there was “ample place” for debt collection but did not specify any fresh stimulus measures.

Also thin on the information

The market’s opinion of China’s economic policies ‘ future way and what they might suggest for the world is still largely unknown. Hope that more information would be made over the weekend were generally squandered.

Chinese officials stated in a communiqué released in July that China “must continue to be strongly committed” to meeting this year’s 5 % economic growth goal. Compared to the government’s reform-era financial performance, that’s a reasonable goal.

But facing a consistently weak economic outlook, Xi after seemed to subtly shift the tone, changing the language from “remain strongly dedicated” to” strive to fulfill” in September.

Over the past years, China has frequently employed massive-scale trigger measures to revive its economy during recessions. Although often having unfavorable side effects, these plans have been able to significantly revive the business.

In response to the 2008 global financial crisis, China’s State Council released a 4 trillion yuan signal package. This was credited as a significant stabilizer of the world economy and helped China stay resilient throughout the issue.

However, it also contributed to the rise of” shadow banking,” or illegal economic activity, by accumulating billions of yuan in debt through regional government financing. In response to the stock market volatility and the pandemic, China also spent a lot of money to boost its business in 2015.

Following a property market collapse in 2015, China implemented extensive signal actions. &nbsp, Image: Shan he / AP via The Talk

What to expect?

What can we anticipate from this moment? How stable or healthy will any subsequent growth be? Any significant increase in Chinese financial demand will likely own” spillover” effects, but we are still awaiting some information regarding the package’s size and scope.

As we’ve discussed, many of the actions announced to date may include their most immediate impact on loans, financing and cash in China’s share markets.

That suggests we may see for what’s called the “wealth effect” in finance. This is the idea that rising commodity prices, such as those for housing or shares, cause people to feel more wealthy and therefore to invest more.

If China’s huge stimulus invest causes sustained increases in property values, it may give rise to economic enthusiasm. Foreign investors and customers may start to feel less anxious about the future.

From Australia’s point of view, that could see increases in demand in areas where our economy are interlinked – iron ore, hospitality, training and manufactured foods exports. More widely, Chinese demand may lead to development in different global economy, with a self-reinforcing effect on the world as a whole.

Beware financialization

On the other hand, China’s switch to rely on dangerous asset price increases in its capital markets to support growth may have unbalanced effects. Where property price rises benefit those at the” bottom end of town,” they can lead to their own inequities and imbalances.

China’s” Black Monday” stock market crash in 2015 raised sirens in Beijing. Primarily reflecting a wariness of excessive financialization, Xi cautioned at the time that “housing is for living in, never for debate”.

China is also working on a more sustainable growth model, trying to strike a balance between maintaining economic growth and stabilizing its social and private environment. For us all, perhaps perhaps China itself, the result is still incredibly questionable.

Wesley Widmaier is an Australian National University professor of global connections, and Wenting He is a PhD candidate for the Australian National University.

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

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Market unsatisfied with Beijing’s 6 trillion yuan stimulus – Asia Times

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In order to relieve the local government debt problems and boost the economy, the Chinese Ministry of Finance is anticipated to challenge 6 trillion yuan ( US$ 843 billion ) of ultra-long special Treasury securities in the next three years.

The release of ultra-long unique government securities, which have maturities of more than 10 times, is a part of China’s efforts to boost its market through fiscal signal, Caixin reported on Monday, citing some unknown options. &nbsp,

Stock investors had been speculating about the size of the government’s potential stimulus package after the People’s Bank of China ( PBoC ) and financial regulators on September 24 announced interest rate and reserve requirement ratio ( RRR ) cuts and vowed to stop home prices from falling.

In the fifth China Macroeconomy Forum on September 21, Liu Shijin, a leading scholar and former deputy leader of the China State Council’s Development Research Center, recommended that the main federal issue ultra-long unique government bonds within one to two times. &nbsp,

He suggested that the central government should use the bonds ‘ proceeds to buy up empty homes from the industry in the near future and promote industrialization over the long term. &nbsp,

Liu’s remarks had a role in the recent rise in the property business in Hong Kong and mainland China. &nbsp,

Both the Shanghai Composite Index and the Hang Seng Index have increased 27 % since September 24 before reaching their maximums on October 8 and 7, respectively. &nbsp,

Some property owners have been reducing their holdings over the past year as a result of the perception that China’s economic stimulus deal is not delivered on time.

The Shanghai Composite Index has declined 8.5 % from its peak of 3, 498 on October 8 to 3, 201 on Tuesday. The Hang Seng Index has lost 12 % from 23, 099 on October 7 to 20, 318 on Tuesday.

A live-mic murmur

Finance Minister Lan Fo’an stated in a media briefing on October 12 that the central government would considerably raise debt by issuing ultra-long specific treasury bonds to help China’s local debt problems. However, he refrained from making the bond issuance plan’s scale and timing public. &nbsp, &nbsp,

When Deputy Finance Minister Liao Min was questioned by a journalist about the size of the bond issuance, Lan told Liao with a whisper not to reveal it for the time being because” the size is big.” The media heard Lan whispering to Liao while his microphone was turned on. &nbsp,

Prior to that, according to a report from Bloomberg on October 11 that the majority of 23 investors and analysts polled predicted that China would invest up to 2 trillion yuan in a stimulus package to boost its economy.

On the same day, Reuters reported that Beijing was anticipated to announce 2 trillion to 3 trillion yuan in new spending. &nbsp,

These predictions were actually not far off the recently released 6 trillion yuan package because the majority of the money will be funded by an existing special bond issuance program. &nbsp,

The Ministry of Finance announced in March that it would start issuing ultra-long special treasury bonds in 2024. According to the statement, local governments can use half of the proceeds to pay off debt, and the central government can use the other half.

A total of 752 billion yuan of ultra-long special treasury bonds were issued in the first three quarters of this year, some of which had maturities of up to 50 years. &nbsp,

If the Finance Ministry continues with this initiative, it will be able to raise an additional 3 trillion yuan over the course of three years.

Local governments can apply for 500 billion yuan of loans each year under this program, which will not be enough to cover the interest payments on the remaining local debt, which is now 43.6 trillion yuan from 40.7 trillion yuan as of 2023. According to the Finance Ministry, the average term for the outstanding local debt is 9.4 years, while the average interest rate is 3.15 percent. &nbsp, &nbsp,

Claire Xiao, a senior credit analyst at Fidelity International, said in a report earlier this year that China’s public debt is about 70 % of the country’s gross domestic product at the end of 2023. However, she added that if additional 60 trillion yuan are accounted for by LGFV loans, China’s government debt to GDP ratio is about 130 %. &nbsp, &nbsp,

A basket of measures

Lan stated in the media briefing on October 12 that Beijing would introduce a number of incremental fiscal policy measures:

  • reduce the potential for local and LGFV debt,
  • replenish state-owned banks ‘ tier-one capitals, &nbsp,
  • stop home prices from falling,
  • grant loans to underprivileged families and scholarships to students, and
  • increase people’s overall consuming power.

He claimed that since there is still room for the central government to raise debt and raise the fiscal deficit, Beijing’s stimulus measures wo n’t be limited to these areas.

It is possible that Beijing will provide more information about the issuance of sovereignty and special bonds after the National People’s Congress standing committee holds its regular meeting later this month, according to a commentary published by Yicai.com. &nbsp,

Read: Chinese stocks cool down as investors check reality

Follow Jeff Pao on X: &nbsp, @jeffpao3

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Why Australia-China trade war truce may not last – Asia Times

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Following a offer reached on the outside of the ASEAN summit in Laos next week, Australia’s stone lobster industry will be able to trade to China once more. Foreign diners can anticipate eating our high-quality crustaceans as we eat our Christmas cooked turkeys despite the paperwork’s going to take a few weeks to complete.

A specially bad section in Australia-China trade relations is coming to an end with this breakthrough. The sole remaining main restriction on a slew of trade restrictions imposed by China in 2020 was the one on which there were tariffs on stone lobsters.

It might be tempting to enjoy, but we should step properly. Our condition remains captive to Beijing’s marriage with Washington. Whether Australia’s industry disputes with China are truly above may be beyond our control.

Australia’s inversion of wealth

The past couple of years have been a storm.

Without giving away much of the material, the Albanese federal has seen China systematic remove the export restrictions it had put in place for Australia in 2020, including those for wheat, wine, beef, and presently lobster.

Yes, Australia has suspended two WTO-related circumstances it had brought against China in relation to grain and wine jobs that China had imposed. However, those circumstances may be brought back if the Chinese government rebuffs.

And it is accurate to say that the Albanese state did not oppose China’s application to join the crucial local free trade agreement, which Australia was a founding member of. But none did it embrace China’s pay.

It seems we’ve come a long way since 2020 when China tabled its legendary” 14 problems” against Australia. This deliberately leaked report publicly criticized Australia on a whole range of sides, including international investment decisions, reported disturbance in China’s matters, research money and media coverage.

This reopening of commerce may give the impression that things are improving for Australia. In some cases, our company society has bounced back with enthusiasm, somewhat wine exports to China.

Zooming out, yet, paints a more somber picture of international trade relations. The decisions of our main friends, specifically the United States, may come to be more important in the near future than our individual.

The Biden presidency has long hoped to spot a “floor” under America’s political contest with China. No one wants things to turn dirty.

But in Washington, powerful bipartisan consensus remains that China may be confronted. China’s imports and investments have continued to be coerced into US hands.

For instance, the US just imposed a 100 % import duty on electric cars produced by Chinese-owned businesses. Also, it imposed a 25 % work on exports of Chinese box cranes. No matter who wins the White House on November 5, proper hostility will grow.

This anger is mirrored in Beijing. China’s safety position is expanding possibly more into company, while its secret business resorts. In addition to local disputes over the South and East China Seas, China’s personal oppressive actions are escalating in its business reprisals against American markets.

Expanding tensions

These conflicts even exist in Europe and the Middle East. According to experts in international relations, the West had then confront a dictatorship that includes China, Russia, Iran, North Korea, and Iran.

China’s” no limits” agreement with Russia has spooked most European leaders. American sanctions on Russia, meant to weaken the Kremlin’s battle machine, are likely becoming circumvented by China’s unrivaled technological capacities.

Iran’s military aid for Russia products the Kremlin’s war-fighting powers at Ukraine’s price. Unsurprisingly, US economic security problems are quickly eclipsing free business considerations.

Automated optical inspection equipment for semiconductor silicon wafer defects
Advanced manufacturing features, such as silicon production, are becoming increasingly significant proper resources. Photo: genkur /Shutterstock via The Talk

When Jake Sullivan, the US’s national security adviser, released the 2022 National Security Strategy, he opted for a more selective view known as” little gardens, great gate.”

He was talking about trade controls and inner restrictions on expense, applied to high-technology items.

Since then, the “yard” has grown wider, and the “fence” has expanded. More areas and items are being thrown into the mix, from power surveillance, through critical nutrients, to food production.

The issue with modern technology, ready to be used for both military and civilian objectives, is that the garden can be very significant indeed.

Mid energy problems

China can be defeated by the US economically and militarily. As the European Union is learning, having the financial fat is important. But being socially united is necessary, and they remain far from that.

Without the necessary military might or financial mass to thwart China, Australia is a middle-class nation. That means we must support the rules-based multilateral trading system in order to enshrine the authority of organizations like the World Trade Organization ( WTO ) and restrain the great powers ‘ actions while keeping as much of our open trade posture as possible.

Washington, however, exceedingly expects its supporters to slide into line. How else can one explain Canada’s decision to follow the US and establish 100 % import duties on electric cars produced by Chinese-owned businesses?

Like Australia, Canada is also a center strength. Additionally, it is a strong supporter of the rules-based international trading system. But Canada’s behavior violates WTO laws. The fact that Washington’s behavior even violate these regulations is now accepted as a given.

International trade cooperation is deteriorating, and the universe is fracturing into two “values-based” buying alliances. Although our bilateral trade relations with China might experience good changes, the pattern is downward in the medium term.

Napoleon Bonaparte is said to have said,” As Napoleon is said:

China is a sleeping giant, let him rest, for if he wakes he did shake the world.

China has changed, and the earth with it.

American business needs to pay attention. Our East Asian partners, somewhat Japan and South Korea, have long spoken of the need for a” China plus one” ( or more ) business technique– making certain trade and investment are diversified into other countries, as well.

In the years to come, growth will become more crucial.

Peter Draper is professor and professional producer: Institute for International Trade, and Jean Monnet Chair of Trade and Environment, University of Adelaide

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

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Indonesia’s Prabowo asks Sri Mulyani to remain as finance minister

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After confirmation on Monday ( October 14), Sri Mulyani Indrawati, the finance minister for Indonesia, will become the first Indonesian to hold the position of finance minister under the new president’s administration with a focus on improving the state’s finances, she confirmed on Monday ( October 14 ) that President-elect Prabowo Subianto had asked her to continue in that position.

As Mr. Prabowoo, a 62-year-old former World Bank managing director, narrowed down his governmental prospects to one of more than 45 on October 15 at his home in South Jakarta. &nbsp,

” He asked me to serve as the fund minister again”, Mdm Sri Mulyani told investigators, as quoted by Jakarta Globe. &nbsp,

According to local media, Mdm Sri Mulyani’s meet with the President-elect lasted longer than those of some other individuals.

Additionally, Mdm. Sri Mulyani revealed that this was not Mr. Prabowo’s second time talking about the budget for the upcoming year with her. &nbsp,

” During this transition period, my team drafted the 2025 finances, and we have had many conversations about the state funds,” he said. It was essential for me to know the interests of the president-elect and evil president-elect”, Mdm Sri Mulyani explained, as quoted by the Jakarta Globe.

” I think what ( Prabowo ) conveyed has remained consistent: guard state finances, particularly revenues and spending”, she conveyed to reporters after the meeting. &nbsp,

Mdm Sri Mulyani initially became the country’s finance minister in 2005 during Mr Susilo Bambang Yudhoyono’s president, before resigning in 2010 to function as the managing director of the World Bank.

She was reappointed as finance secretary by President Joko Widodo in July 2016 and has remained in that capacity ever since.

She has also received praise for her efforts to reform the tax system and for her leadership of Southeast Asia’s largest sector, which has experienced a number of crises, including the pandemic.

Nearby bond and currency markets have been on top before this because rumors have been riddled about who will become Mr. Prabowo’s finance minister in the wake of the president-elect’s remarks earlier this year on programs to take on more debt.

On October 20, Mr. Prabowo may become formally elected president.

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