Asian companies remain committed to China despite economic headwinds, trade tensions

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” TOO BIG TO IGNORE”

Other Asian firms shared similar views.

Mr Hyuk- Tae Kwon, i- founder and CEO of Singapore- based venture capital firm Pine Venture Partners, said China remains the nearest business, and one of South Korea’s largest import and export lovers.

” It’s too large to ignore”, he added, perhaps as political concerns drive some firms to transfer their assets to the area.

Mr. Kwon claimed that China’s focus on innovation and AI sends a encouraging message to investors. &nbsp,

” There are a lot of options I even see in China regarding ageing population, medical, food tech”, he noted.

There is a bit of impact that can be transferred over to China if you have the appropriate systems and business concepts that have worked in smaller areas, like Singapore and South Korea.

However, he acknowledged that operating in China is a whole different game activity, as each area may have different requirements.

” I believe that China’s operational difficulty has increased considerably. Instead of trying to do everything on your own in China, because the adjustments are very quick and drastic, I would advise some of my customers to find a competent and reliable companion as a fresh approach.

” With the right circulation lovers, you may have a higher chance of success in today’s business environment”.

Regarding those who managed to survive Beijing’s tight restrictions during the COVID-19 era and remain there, Mr. Kwon said they will benefit from China’s subsequent economic recovery.

ADAPT TO CHANGING RULES, Styles

Foreign colleagues have had to adapt to changing laws and changes while waiting for the flood to turn. &nbsp,

Ho Ren Hua, CEO of Thai Wah Public Company, said this was the most important moment China emerged from COVID-19.

He claimed that China has put more emphasis on food safety, focusing on supply chain design and quality, among other things.

” That discusses source and origin tracking. And we’ve been working a bit with our purchasing groups, our provide power, all the way to the farm”, Mr Ho said.

His Thailand- based food corporation, which exports cassava to China, now has activities in Shanghai, Qingdao and Guangzhou.

Mr. Ho noted that as the pandemic spread and digitalization advanced, Foreign eating habits even changed.

” We look at different types of business programmes, starting with current hypermarkets to direct to consumer systems, to food financial companies”, he added. &nbsp,

” Food finally is an economy of style, texture and taste. The Chinese client becomes more picky about different types of preferences, appearance, flavouring. Therefore, there are still a lot of potential for food in China over the long term.

Mr. Ho thinks that any geopolitical quake will be averted by the strong connection between Southeast Asia and China given these growing trends.

Tapioca is exported to China by his Thailand-based food business.

Because there is a significant reciprocal dependence between the Chinese economy and Southeast Asian economies, Mr. Ho said,” we do n’t anticipate there will be” significant tariffs or trade barriers between China and Southeast Asia in the near future.”

” Food product flow will continue to expand in both directions.”

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Why China won’t big bang devalue the yuan – Asia Times

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The renminbi currency will undoubtedly experience loss force as net capital outflows exceed China’s present consideration surplus. Nevertheless, China will neither fly its currency nor permit a big depreciation.

The US’s monetary system is more vulnerable to US actions by floating a dollar in the world’s economic system, which is currently dominated by the US. China’s technique is the same: to lessen its vulnerabilities to the US- dominated techniques.

The People’s Bank of China, the central bank, should never sell foreign dollar reserves to protect the exchange rate. Such a move would increase regional interest rates and tighten home liquidity.

The last thing China needs is tightening cash for an business that is suffocating from recession. A yuan devaluation, in the form of a quick or one-off exchange rate adjustment, is what the international funding community is expecting, as a result of this set of circumstances.

Under specific circumstances, for a managed, pegged change level program like China’s, a one- off or quick devaluation may be preferred to a slow, steady depreciation.

The idea is that rising expectations for dollar depreciation may cause more capital outflows. These dynamics can be fulfilling and frequently cannot be reversed without significant exchange rate adjustments. &nbsp,

But, Beijing will not resort to a one- off or fast weakening, at least never for today. Given Beijing’s present policy priorities, the cost-benefit analysis of this choice is unpleasant.

Second, the PBoC manufactured a modest 2 % weakening of the yuan in August 2015, which resulted in a decline in share charges, both in China and worldwide. That incident is undoubtedly still fresh in the minds of PBOC policymakers.

Second, a sudden yuan depreciation will ( 1 ) stifle confidence in consumers and private businesses, ( 2 ) exacerbate tensions with the US during a turbulent election year, and ( 3 ) undermine China’s efforts to internationalize the yuan. For Beijing policymakers, these negatives likely outweigh the positives of a currency devaluation.

Finally, Chinese exports are already very competitive, and a small-to-moderate currency weakness wo n’t be much help for them in the near future. 1 ) A weak income or a low propensity to purchase all kinds of goods in foreign markets and 2 ) tariffs that some nations, like the US, have imposed on its products, are constrained by demand for mainland exports.

A preventive and significant devaluation of the yuan would increase the likelihood that other countries, like the EU, will impose significant tariffs on Chinese goods in addition to the US.

Thus, the PBoC will only permit gradual and moderate currency depreciation for the remainder of this year, which is in the ballpark of 5 %. So, would this forecast not support even more capital outflows in anticipation of further currency depreciation? It likely would.

Authorities will likely respond by putting in stricter administrative controls to stop capital outflows, though. In the end, this will render the market players who have so far benefited from capital outflows from the mainland vulnerable.

Critically, mainland residents ‘ investments in gold, other metals and Hong Kong- traded Chinese stocks are forms of capital outflows, all of which weigh against the yuan’s value.

The PBOC regulates all gold imports, allowing it to temporarily stifle the quota for those imported and to compel onshore investors to stop selling gold and gold-linked goods to banks and trading companies in China.

Despite this, we remain confident that the PBOC will continue to diversify its foreign reserves in the face of declining demand. Diversification requires ongoing purchases of gold because there are few alternatives to the greenback or the other currencies of the Western bloc. Therefore, any pullback in gold prices will likely be mild and transitory.

Notably, when monetary authorities buy gold using their own international reserves, this does not represent a capital outflow and does not have an impact on the value of the currency. The basis is that, unlike residents, the central bank uses its US dollars, not local currency, to buy gold.

In addition, the Southbound Stock Connect program has been a source of funding for onshore investors who have invested in Chinese stocks listed in Hong Kong. These stocks are listed in the Hong Kong, which is a parimeter with the US dollar.

These equities are likely to be considered foreign currency assets, protecting them from the yuan’s depreciation.

Yet this perception is misleading. These businesses ‘ assets and revenues are primarily from mainland China. Among them, there are few exporters. The equity prices of mainland Hong Kong companies will drop in Hong Kong dollar terms if the yuan declines.

Therefore, buying Chinese companies ‘ stocks in Hong Kong will not viably shield their assets from potential exchange rate depreciation for mainland investors.

The policy of gradual and marginal changes in the yuan’s value will likely continue despite recent significant capital outflows from the mainland. Nor will Chinese authorities likely resort to a one- off, sudden devaluation.

Instead, Beijing will ease capital account restrictions, putting more and more risk for financial market players who have recently benefited from these outflows. &nbsp, &nbsp,

Arthur Budaghyan is BCA Research’s Chief Strategist, China Investment Strategy and Emerging Markets Strategy. More details about these tactics are available here.

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Huawei plans to make 3nm chips, but when? – Asia Times

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Despite low yields and high costs, Huawei Technologies, a Shenzhen-based manufacturer of telecommunication equipment, is reportedly planning to use deep ultraviolet ( DUV) lithography machines to create 3 nanometer chips.

According to a report from American technology website Tom’s Hardware on Tuesday, Huawei and Semiconductor Manufacturing International Corp ( SMIC ) are working together to create 3nm chips using the patented self-aligned quadruple patterning ( SAQP ) lithography techniques. According to the content, 7nm-class process technology has 36 to 38 nm of steel pitches, while 5nm-class nodes have 30 to 32 nm of metal pitches. It predicted that 3 nm cards may have material pitches of between 21 and 24 nm. &nbsp,

The metric used to determine the shortest distance between two vertical interconnects is steel pitch. In 2019, Intel tried to produce a 10nm device, which had material pitches of 36nm. However, the task was canceled due to low produces. &nbsp,

According to the Tom’s Hardware article, commercial devices wo n’t be able to produce 5nm or 3nm chips because of the high costs involved. The cards can be used in supercomputers or other military equipment, according to the statement. &nbsp,

The content was frequently quoted by Chinese media on Wednesday. &nbsp,

In March this month, media reports said Naura Technology Group, a Shenzhen- listed company, started researching SAQP. They said SiCarrier, a Shenzhen- based state- held- organization that works with Huawei, in soon 2023 had been granted a trademark that involves SAQP. &nbsp,

In September 2021, SiCarrier filed patents for the SAQP systems while Naura was even involved in this project. &nbsp,

The SAQP method, which involves ball cutting, or the department of a design into two or three parts, is known as a brute-force method. Applying self-aligned double patterning ( SADP ) twice can help achieve the SAQP. &nbsp, &nbsp,

When and if Huawei and SMIC is mass-produce 3nm chips are unknown. Some systems columnists predicted that this purpose might take several years to reach. They added that, by the time the two firms succeed, the international markets will be using 1.4nm cards. &nbsp, &nbsp,

5nm chips

According to a report from the Financial Times on February 6, SMIC will construct new semiconductor manufacturing lines in Shanghai to produce laptop processors of the upcoming technology as soon as this year. It stated that the business would use existing stock of US and Dutch-made technology to produce 5nm Kirin cards. This statement was cited by Taiwan’s DigiTimes. &nbsp,

Some Chinese media reported in March that SMIC had established a study team to promote the development of 3nm chips. But the studies have not yet been confirmed. &nbsp,

The most cutting-edge Chinese chips are currently SMIC’s Shanghai 7nm bits. &nbsp,

In April, Huawei launched its Pura 70 cellphone, which is powered by the agency’s Kirin 9010 program computer. &nbsp,

TechInsights found that Kirin 9010 was made with the consequently- called N 2 method, the same way the Kirin 9000s was produced. Next August, Huawei unveiled Kirin 9000s in its Mate60 Pro telephone.

RexAA, a computer journalist who uses the pen name RexAA, claimed in an essay that Kirin 9010 works only marginally better than Kirin 9000s. Citing the Geekbench standard checks, he said Kirin 9010 achieved 4, 471 multi- core values, compared with Kirin 9000s ‘ 4, 206 scores. &nbsp,

He said Kirin 9010’s efficiency is in between that of phone 12’s A14 device and phone 13’s A15 device, which achieved 4, 152 and 4, 498 multi- key scores, both. He claimed that the company’s four-year US sanctions have allowed it to continue producing its unique 7nm cards. &nbsp, &nbsp,

The US Semiconductor Industry Association ( SIA ) stated that the US and China will continue to have a larger production gap in terms of advanced chips. &nbsp,

In a report released earlier this month, the SIA predicted that China will make only 2 % of the world’s most advanced processors ( smaller than 10nm nodes ), while the US is projected to produce 28 % of them. It said Taiwan’s share in the advanced chip markets will fall to 47 % in 2032 from 69 % in 2022. &nbsp,

It stated that the study’s primary focus was on the effects of China’s efforts to become a computer independent and the money from the CHIP Act in the United States. &nbsp,

Read: SMIC to promote Huawei expensive, inefficient 5nm cards

Observe Jeff Pao on Twitter at&nbsp, @jeffpao3

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Vietnam’s great untapped rare earth bounty – Asia Times

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Vietnam is home to the world’s following- largest reserves of unusual rocks, according to the US Geological Survey.

Nevertheless, Vietnam is struggling extraordinarily to get them out of the earth and onto global markets while the US and its supporters seek a supply chain wall to China’s supremacy of the essential vitamins.

China has de facto monopoly control over the crucial minerals used in everything from smartphones to electric vehicles to military hardware, according to the International Energy Agency, which accounts for 70 % of global rare earths mined and 90 % of global rare earth processing capacity.

Vietnam’s estimated 22 million tons of rare earths accounts for approximately 19 % of the country’s known deposits and is surpassed only by China’s projected 44 million tons.

But Vietnam is still a minute producer, with only 600 plenty produced in 2023, down some 50 % from 2022 rates. China, by contrast, produced 240, 000 tons last year while also war- broken and very poor Myanmar produced 38, 000 tons.

Vietnam’s programs to intensify rare earth mine were hampered by the arrests of leading market figures on corruption charges in October. The head of Vietnam Rare Earth JSC, an American mine company’s partner, was one of the accused, along with Australian Strategic Materials and Blackstone Minerals.

The arrests stymied government plans to auction additional concessions for rare earth mine, and they cast a shadow over the sector, which has stymied foreign investors.

Vietnam adheres to its unique earth masterplan, which calls for the extraction and processing of 2 million tons annually by 2030, despite the dread. &nbsp,

However, many people are now questioning whether Vietnam’s Communist Party leadership will prioritize its anti-corruption initiative over creating a unique world market that could power a silicon industry and the party’s envisioned knowledge-based economy. &nbsp, &nbsp,

In order to issue China’s current dominance of the business, Ian Lange, an associate professor with the Colorado School of Mines who specializes in asset economics, thinks Vietnam has the “bare need” of rich unique earth reserves.

” Rare earths are n’t necessarily rare – deposits are everywhere…The rare part is the processing and separation technology”, Lange said. Basically, every control and isolation facility is located in China.

About 74 % of US-derived rare earth materials are currently imported from China.

However, as the US enacts numerous sanctions and prohibitions against Chinese technology companies in an effort to thwart their growth, China’s virtual monopoly on rare world refining is becoming more vulnerable.

Prior to now, China had used its dominance of unusual rocks as a punishment. Following a sea debate, China in 2010 imposed a moratorium on rare world exports to Japan.

More recently, China restricted exports of chromium and tungsten, both essential elements of a range of current technology products, which China has a grip on global supplies in August of last year.

A gallium oxide chip wafer. Image: Facebook

Vietnam’s immense quantities of gallium, embedded in its estimated 5.4 billion tons of bauxite ore deposits and with higher concentration levels than China’s reserves, would on the surface appear to have the potential to break Beijing’s hold.

However, Vinacomin, a Vietnamese industrial conglomerate specializing in coal and mineral mining, acknowledged in a Channel News Asia program that the country’s most advanced rare earth facilities lack the technology to extract gallium from bauxite. &nbsp,

Although Vietnam has been conducting rare earth research since the 1970s, the industry and its educational pipelines continue to be primarily focused on theoretical and laboratory research and emphasize practical experience, according to Mining Vietnam, an industry trade fair.

It’s not yet known whether foreign investors can bridge knowledge gaps and end industry bottlenecks. However, it is obvious that the US is at the top of the game to support Vietnam’s development of its rare earth industry as a decoupling hedge from its current overdependence on China.

During President Joe Biden’s trip to Hanoi in 2023, the two sides signed a Memorandum of Understanding&nbsp, to” strengthen technical cooperation to support Vietnam’s efforts to quantify its REE ( rare earth element ) resources and economic potential” and “attract quality investment for integrated REE sector development”.

However, it’s unclear from the perspective of academic Lange and others whether the US can maintain a competitive edge over China’s economies of scale and has the “quality” rare earth refining capabilities for export to Vietnam.

” We all have the textbook. It’s not as though there is some science that only the Chinese know about. No one in the West has actually been processing rare earths, whereas China has been doing it for a long time, Lange said. &nbsp,

Currently, only eight companies in the US are capable of manufacturing intermediate rare earth products, S&amp, P Global reported. That comparative lack of capacity– and perhaps know- how – means scaling up Vietnam’s industry with US investment would take a long time.

Before such a partnership can be fully realized, Lange argued, it will require further development of the US’s own pilot separation facilities in order to convert Vietnam into a rare earth depot that is not reliant on China for downstream separation and processing.

There has n’t been any direct investment in the sector from US companies despite the US leading a joint coalition with South Korea on rare earth extractive research in Vietnam. &nbsp,

Regarding the extent of US firms ‘ involvement in the development of Vietnam’s rare earth industry, the trade office at the US embassy in Hanoi did not respond to a request for comment.

The few rare earths refining foreign firms, including from Australia, Japan and South Korea, that have sought to produce in Vietnam, some of which were in talks with global EV makers to secure set- price contracts, abandoned their projects after China ramped up supplies, causing prices to plummet. &nbsp,

Vietnam’s downstream processing capabilities are thus still miniscule.

Vietnam Rare Earth JSC (VTRE), an associate professor of politics and international relations at Simmons College with a focus on Southeast Asian politics and security, is the only domestic processor I know of. ” But, that firm has limited endogenous technology, high costs and is mired in an ongoing corruption scandal” .&nbsp,

VTRE can currently only process 5, 000 tonnes of rare earth oxides ( REO ) a year. The company had plans to treble that output, VTRE chairman, Luu Anh Tuan, claimed last year– though those plans are now uncertain amid the corruption allegations.

Luu Anh Tuan stands charged with corruption. Image: Facebook

VTRE also planned to conduct a pilot project to build a metalization factory with South Korean company Setopia, which notably has no prior experience in the sector. This is a subsequent step after raw ore processing.

According to the Ministry of Public Security, Tuan is accused of forging value-added tax receipts when he traded rare earths with Thai Duong Group, which runs a rare earth mine in Yen Bai, in northern China.

VTRE had partnered with Australian mining companies Australian Strategic Materials ( ASM) and Blackstone Minerals LTD to bid on the largest rare earth mine in Lai Chau Province, Vietnam, the month before the charges were leveled. No of the Australian businesses have been linked to the scandal. &nbsp,

Doan Van Huan, Thai Duong Group’s chairman, was also arrested on charges of making US$ 25.80 million from illegal sales of ores extracted from the Yen Bai mine.

The precise causes of the sales ‘ illegal nature were not stated in the official government statement.

However, according to a person with knowledge of the situation who spoke with Reuters, the raw ores were shipped to China because domestic refining costs were deemed unprofitable. The export of raw ores is severely restricted in Vietnam under current laws to promote greater domestic refining. &nbsp,

ASM and Blackstone Minerals did not immediately respond to inquiries from Asia Times about whether Tuan’s arrest had affected their agreements and plans with VTRE. On the current state of its dealings with VTRE, Setopia did not respond to a request for comment.

China Rare Earth Group Co Ltd, a state-owned giant in the production of rare earth, is making its own advances in Vietnam as the Dong Pao mine crackdown progresses. &nbsp,

It would be wise to keep the Chinese at bay if Vietnam wants to attract more foreign investment in both mining and processing, according to Abuza. &nbsp,

If Chinese firms move in on Vietnam’s sector, they will ultimately end up sending everything back to China for processing, he asserted. &nbsp,

” China’s near-monopoly is being broken, so the whole motivation for foreign investment in that sector is.” Vietnam’s advantage in so many ways is selling itself as a supply chain diversification from China, according to Abuza.

Some Chinese experts have acknowledged the use of the Kunming-Haiphong railway project as a rare earth extraction strategy without the transfer of technology. The railway, which passes through Vietnam’s rare earths heartland, could be used for convenient transshipment of raw rare earth ores, they suggest. &nbsp,

Significantly, China imposed an export ban on its rare earth processing technologies earlier this year. &nbsp, Lange, for one, has suggested that Vietnam could respond with a “resource nationalism” approach similar to Indonesia, which has banned the export of raw nickel to lure more foreign investment in processing.

However, there are some unknowns about Vietnam’s rare earth industry, which means foreigners will likely continue to watch until the situation is clearer.

One US and several Australian companies have the technology and interest, but many businesses are spooked by Vietnam’s current “wild west” nature, according to Abuza.

” Simply, there is no one to partner with. The two biggest players, VTRE and Thai Duong Group, are both mired in corruption investigations”, the academic said. &nbsp,

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Citi hires from BNP Paribas for Thailand head of markets role | FinanceAsia

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Citi has appointed Nattaphan Assavavisessivakul as head of industry, Thailand. &nbsp,

Starting in August, Assavavisessivakul will be based in Bangkok, according to a May 29 multimedia news from Citi. &nbsp,

With a proper and international approach, Assavavisessivakul has been given the task of driving business growth and leading the bank’s markets franchise in Thailand. He did report to Sue Lee, Citi’s head of industry, Asia South, and to Fourth Narumon, Citi state official and bank mind, Citi Thailand.

Assavavisessivakul, who has over 20 years of experience in banking and financial solutions, is joining from BNP Paribas, Thailand, where he led and managed the buying sales and government team as head of world markets and ALM Treasury. He reportedly joined the French institution in June 2020, according to his LinkedIn profile.

He also previously served as head of resolved salary, supplies and economies sales at Bank of America, Thailand. Assavavisessivakul began his career at KPMG Thailand, where he concentrated on economic modeling and monitoring.

Thailand is a important market for Citi, according to Narumon in the news, with more international consumer flows into the nation and more local property managers making overseas investments. As the largest cross-border banks in the world, we are specializing in facilitating those travels for our clients.

With Nattaphan’s extensive network and proven track record, Lee continued,” I’m convinced that his command will further strengthen how Citi Markets Thailand fulfills its goal of being the best lender for our customers.”

The interview is subject to normal regulatory approvals.

Click here for more FinanceAsia people movements.

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India should think long and hard about joining AUKUS – Asia Times

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Compliance with the signed documents and operating rules is the first obstacle to participating in a safety empire. The US is currently playing a major part in a number of security and defense assistance systems in the region and continent, where the US even dominates member international guidelines.

India would probably have to alter its opinion of foreign affairs if it were to participate in AUKUS. With the more frequent occurrence of outside forces, membership may have a significant impact on not only India but also other nations in the region. However, accepting a typical vision and goals with the US would significantly reduce India’s proper freedom.

If a new plane of relationships is built among Washington, London, New Delhi and Canberra, it will always create a network connection affecting each others ‘ security stances. Countries in the network will undoubtedly be involved in a crisis if one website encounters one. That ring does not include AUKUS’s operating system, which does make joint actions statements but is only a multilateral to day.

AUKUS was founded with a primary focus on the Indo-Pacific area, with the intention of incorporating both South Asia and China. As was the situation with the now latent Quad, if India joins AUKUS, it will undoubtedly spawn messages from Pakistan and China, which are both at odds with one another.

In light of the fact that the bilateral agreement aims to encourage users to increase their nuclear arsenals in response to threats from the world. If the US and the UK can provide Australia with radioactive boats, then they might be able to offer them to India. That would also have a significant impact on Pakistan and India’s standard power balance, causing them to reconsider their nuclear doctrines.

Indian Defense Minister Rajnath Singh has previously warned off Pakistan and China to their adversaries that New Delhi might alter its” no second apply” nuclear weapons plan. If and when that actually occurs, New Delhi might start a new nuclear arms race in South Asia, one in which China might offer Pakistan radioactive expertise.

With India’s better military and possible future support from AUKUS, Islamabad would have to bolster its cooperation with China, which is a growing provider of Pakistan’s weapons. China may strike an AUKUS-style cope with Pakistan as a counterbalance for India.

Admiral M Amjad Khan Niazi, commander of the Pakistan Navy, has noted his country’s enhanced marine relations with China in recent years. Not least of all, China is assisting Pakistan with the exchange of cutting-edge systems battleships.

AUKUS and India de facto did de facto promote upcoming military issues and significant power problems in the Indian Ocean. The risk of nuclear submarines entering Southeast Asia, including the fiercely disputed South China Sea, to stop China is now taking hold in the Pacific, thanks to US and UK support for Australia.

Now, Australia has the readiest approach to Southeast Asia among the AUKUS people. But, Southeast Asia would have a wider sphere of influence if India were to join the relationship. India has expanded its appearance in Southeast Asia in recent years, providing China’s South Asian foes with important weapons, including Brahmos missiles.

If the India-ASEAN bridge is constructed properly, creating a vast trade region connecting the two oceans, it will help New Delhi accomplish many of its economic and political objectives as it asserts itself more assertively on the world stage.

On the other hand, India is being pushed harder by China’s Belt and Road Initiative to compete more effectively in emerging industry. In response to China’s growing anger in the South China Sea, some of the Southeast Asian nations are eager to hedge their security ties with US.

In addition, if there are widespread misconceptions that India’s participation is causing the introduction of more nuclear weapons and the potential for a weakening conflict in the region’s now hotly churning waters, it could just as easily backfire in Southeast Asia.

ASEAN’s people view AUKUS separately. Ali Sabri Yaakob, the former prime minister of Malaysia, warned that AUKUS might start a nuclear arms race and raise regional conflicts. On the other hand, the Philippines is thinking about forming what some have called a “new Rear” or” Squad” with the US, Japan, and Australia to thwart China.

India’s desire to join AUKUS as its third part is undoubtedly a done deal, as China, Pakistan, and ASEAN weigh the possible repercussions and options. However, a U.S. plus India would have profound effects on Asia’s protection and a universe that is rapidly dividing into competing corporate blocs.

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China’s yuan seeks to challenge the US dollar but traders don’t want to use it

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The dollar’s internationalisation catalog, as measured by China’s northern bank, has greatly improved since 2009, but it still lags far behind the dollar and the euro in terms of business arrangement, global payments, international trading and central bank forex reserves. The new study discovered that additional obstacles included obstacles toContinue Reading

Deals ramp up in Asia’s healthcare space with cancer focus | FinanceAsia

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Over the past few weeks, there have been numerous new offers and advances in Asia’s tumor treatment.

This includes a $1.5 billion investment from UK-Swedish pharmaceutical giant AstraZeneca in Singapore, a listing on the Hong Kong Stock Exchange (HKEX) by a Chinese biopharmaceutical firm and an acquisition in Hong Kong by the New Frontier Group of the Hong Kong Integrated Oncology Center, a leading comprehensive private oncology medical platform. 

AstraZeneca‘s investment was made in partnership with the Economic Development Board of Singapore, which is a department of trade and industry official, demonstrating that other institutions are discovering the potential for investment in this area.

Sunho Biologics ( China ), which is focused on the development and commercialization of biologics for the treatment of cancer and autoimmune diseases, was listed on the HKEX on May 24. The company’s shares, which had a last offer price of HK$ 13.5, increased 10 % on the day of the list, which is also a part of a wider pattern of more businesses looking to raise money via an IPO on the HKSE as the city’s market recovers from some very tough times.

The Nanjing City- based company, founded in 2018, offered 34.1518 million securities worldwide, with the Hong Kong government offering budgeting for 10 %, it was 10 times overstretched. CICC was the only sponsor, only general goordinator, only international coordinator, combined bookrunner and joint lead manager on the deal. The partnership between lovers Ke Geng and Ke Zhu was led by international laws company O’Melveny. It was O’Melveny’s sixteenth Hong Kong Investor completed for Chapter 18A biotechnology companies. &nbsp,

The offering size was approximately HK$ 460 million ( approximately$ 60 million ).

Garri Zmudze, public companion at venture capital firm LongeVC, told FinanceAsia:” Asia is a growing opportunity for life research businesses and investors equally, because the place presents a unique set of circumstances for development”.

Zmudze added:” The region’s potential is reflected in a&nbsp, flurry of deals in the cancer space in recent weeks”.

Next- generation cancer treatment

In recent years, cancer drugs have been quickly developing.

SunHo Biologics makes use of its understanding of immunology to create immunotherapies, including immunocytokines, to treat cancers and autoimmune diseases. It is in the middle of several trials, including Phase II of clinical trials for biliary tract carcinoma &nbsp, and colorectal cancer, and has three products it has developed in-house.

In order to increase the global supply of its ADC portfolio, AstraZeneca is building a manufacturing facility in Singapore for antibody drug conjugates ( ADCs ). In 2029, the manufacturing facility is expected to be operational.

ADCs&nbsp are the newest treatments that use targeted antibodies to deliver cancer-killing agents directly to cancer cells. The manufacturing of ADCs includes: antibody production, the synthesis of chemotherapy drug and linker, the conjugation of drug- linker to the antibody, and the filling of the completed ADC substance. &nbsp,

Unfortunately, one of the factors influencing the investment in Asia Pacific is that there has been a significant rise in cancer incidences overall.

Over 35 million new cancer cases are expected to occur in 2050, an increase from the 20 million expected in 2022, according to the World Health Organization. With 2.5 million new cases accounted for 12.4 % of the total new cases, lung cancer was the most prevalent cancer worldwide.

The most prevalent cancer in Asia is likely to be caused by persistent tobacco use, which is now known as lung cancer.

GBA

Greater Bay Area ( GBA ) is one of the areas where cancer investments are projected to increase.

The Hong Kong Integrated Oncology Center ( HKIOC ) was recently purchased by the healthcare company New Frontier Group. The HKIOC provies cancer treatment services, early diagnosis, radiotherapy, systemic treatments, mental health and other rehabilitation services.

The company New Frontier owns the HEAL Medical Group, the Guangzhou United Familty Hospital, and the New Frontier Shenzhen United Family Hospital, and it also sees a” sizeable and growing patient population in the Greater Bay Area.” Collectively, they are referred to as the New Frontier Greater Bay Area Healthcare.

Life and health technology will be a part of the Shenzhenh- Hong Kong Science and Technology Innovation Co-operation Zone, according to Hong Kong CEO John Lee at the Asia Summit on Global Health held in Hong Kong in May.

Lee stated that the government of Hong Kong SAR is also strengthening I&T support in the upstream, midstream, and downstream sectors to spur the development of life and health science. The 16 life and health- related R&amp, D ( research and development ) centres established in our InnoHK research clusters are yielding impressive research outcomes”.

He added that Hong Kong’s government has committed to investing an additional$ 1.3 billion to further advance life and health technology and welcomed international talent to the country to work in the field. &nbsp, &nbsp,

Other investors&nbsp, on the hunt

Private equity firms Carlyle and EQT recently closed large funds in Asia, which are, among other things, targeting Asian healthcare companies. Carlyle specifically targets Japanese companies after closing its most recent record buyout fund in the country.

In addition to Pureos BioVentures, there are a number of specialist, smaller investors in the industry who are looking to enter the market. LongeVC also looks at the wider “longevity” market and is backing “visionary biotech” in the US and markets like Japan. &nbsp,

Expect more money to be made in this area, which will hopefully result in many lives being saved. &nbsp,

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