Chinese dragon elegantly twirled around American eagle’s neck – Asia Times

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There is an image that likely increasingly haunts the minds of US strategists: a Chinese dragon, no longer just coiled in defense but elegantly entwined around the neck of the American bald eagle. Not to suffocate but rather to regulate the bird’s breath.

The symbolism is not hyperbole. It captures a world where China, long caricatured as the imitator, has now morphed into a systemic rival, outrunning and outgunning the United States in critical business and security sectors.

From technology to trade, currency to cyber power, the Chinese state has mastered the long game. 

As Graham Allison warned in “Destined for War”, the Thucydides Trap is not only about the inevitability of conflict between rising and ruling powers. It’s also about the erosion of assumptions that the West has long taken for granted—namely, that liberal democracies will always innovate faster and govern better.

That assumption is collapsing under China’s weight. Let us now turn to the strategic sectors where China has not just caught up, but, in many instances, sprinted ahead.

1. Semiconductors: from dependency to near parity

Semiconductors, once China’s key vulnerability, are now the arena of its most dramatic gains. Despite Washington’s embargoes on Huawei and export bans on advanced lithography equipment, Beijing has poured over 1.5 trillion yuan into its domestic chip ecosystem.

China’s 14nm chips are now being produced domestically at scale, and according to Dr Dan Wang of Gavekal Dragonomics, an economic consultancy, “China is only a node or two behind global leaders, and catching up fast.”

This acceleration is powered by “dual circulation”—a policy that embeds state subsidies across the entire supply chain, from rare earth mining to chip design. 

In contrast, the US remains fragmented. The CHIPS and Science Act is slow-moving and could be scrapped while American fabs are still dangerously dependent on geopolitical choke points like Taiwan.

And it’s not clear that forcing Taiwan to build fabs in the US will even remotely work due to a lack of skilled labor and relevant supply chains.

2. Electric vehicles: Tesla in the rearview mirror

China’s BYD, not Tesla, is now the world’s top EV manufacturer. In 2023, it overtook Tesla in global sales and its footprint now spans Latin America, Europe and Southeast Asia.

Why? Because China owns the supply chain. From lithium in Bolivia to cobalt in the Congo, Chinese firms like CATL dominate the upstream. They also control over 75% of global lithium battery production.

As Professor Tu Xinquan of the China Institute for WTO Studies notes, “Beijing treats EVs as the next strategic industry, not just a consumer product.” The result? China is setting the global terms for green mobility.

3. Artificial intelligence: authoritarian efficiency at scale

While Silicon Valley battles over ethics and data privacy, Chinese AI firms race ahead by leveraging the scale of their digital ecosystems. 

With 1.4 billion citizens contributing to vast data pools, firms like SenseTime and iFlytek are training machine learning models at a rate unimaginable in the US.

Stanford’s AI Index 2024 noted that “China now publishes more peer-reviewed AI papers than the US and the EU combined.” 

More importantly, the integration of AI into national surveillance systems—facial recognition, behavioral analytics and even predictive policing—is an institutional advantage in authoritarian governance.

4. Space & hypersonics: leaping over the Pentagon’s horizon

In 2021, China tested a hypersonic glide vehicle that stunned Pentagon officials. It circled the globe before hitting its target—a demonstration of capabilities that America did not anticipate and does not have.

Today, China launches more satellites than any other country, and its Tiangong space station functions independently of NASA. 

This is not just about prestige. It’s about owning low-Earth orbit (LEO) infrastructure and building an integrated command architecture.

According to James Acton of the Carnegie Endowment, “China’s civil-military fusion in space tech gives it a decisive asymmetry—the ability to repurpose civilian launches into military capacity overnight.”

5. Quantum computing and cyber sovereignty

China’s quantum leap is not metaphorical. It has already built a city-level quantum communication network in Hefei and launched the Micius satellite to demonstrate secure quantum encryption.

While the US still grapples with theoretical breakthroughs, China is operationalizing quantum networks—one step closer to unhackable communication.

Simultaneously, China’s cyber units under the PLA Strategic Support Force have matured into a formidable force. 

As cybersecurity expert Adam Segal warns, “Unlike the US, where cyber operations must go through inter-agency review, China’s centralized command is more agile, more ruthless and more strategic.”

6. Infrastructure diplomacy: steel, fiber and sovereignty

The Belt and Road Initiative (BRI) was once dismissed as “debt-trap” diplomacy. Yet in 2025, it has morphed into a network of real-world influence. 

Over 70 ports, 150 countries, and countless rail links are now locked into Chinese logistics systems. Malaysia’s ECRL and industrial parks under the “Two Countries, Twin Parks” initiative are cases in point.

In contrast, America’s Build Back Better World (B3W) never took off due to a lack of institutional backbone and material delivery.

7. Financial innovation: dollar dependency, yuan strategy

Though the dollar still dominates, China’s Cross-Border Interbank Payment System (CIPS) now clears over US$400 billion in yuan-denominated transactions annually.

As Professor Eswar Prasad of Cornell observes, “CIPS, when coupled with the digital yuan, offers China a way to de-dollarize bilateral trade without directly challenging the dollar’s global reserve status.”

Even in ASEAN, Indonesia and Malaysia have signed local currency settlement agreements with Beijing. The implications are serious: the US no longer controls the plumbing of international finance unilaterally.

8. Pharmaceuticals and public health diplomacy

Sinopharm and Sinovac may have drawn Western skepticism during Covid-19, but they reached over 80 countries. China became the pharmacy of the Global South, capturing new health markets.

Meanwhile, China controls up to 70% of active pharmaceutical ingredient (API) exports—vital for antibiotic and chronic disease drugs. Even the US Food and Drug Administration has flagged this as a national security risk.

9. Maritime dominance: steel leviathans in Asian waters

The People’s Liberation Army Navy (PLAN) is now the largest navy in terms of number of vessels, with China launching new destroyers, frigates and carriers at an unmatched pace.

According to the International Institute for Strategic Studies (IISS), China’s naval shipbuilding capacity exceeds the US by a ratio of 3:1 annually.

This has strategic consequences: with militarized reefs and carrier-killer missiles, Beijing is remaking the Indo-Pacific naval order—challenging the US Seventh Fleet’s dominance.

Conclusion: The end of complacency, the beginning of multipolar discipline

The Chinese dragon did not roar its way to supremacy. It studied the American system—its think tanks, capital markets, academic networks and defense-industrial base—and replicated a version of it with Chinese characteristics: centralized, agile, state-backed and global.

This is no longer a contest of ideologies. It is a contest of capacities.

For Malaysia and ASEAN, the time for strategic hedging has reached its limit. As Professor Lee Jones warns, “Neutrality in a bifurcating world must be underwritten by genuine resilience—economic, technological and political.”

China’s dragon does not need to strangle the eagle. It merely needs to squeeze at the right moments. And in that tightening grip lies the uncomfortable truth of 21st-century power: it is no longer about who dominates, but who endures.

Phar Kim Beng, PhD, is professor of ASEAN studies at the International Islamic University Malaysia. His analyses have been published across Asia and Europe, with a focus on strategic diplomacy, interdependence and power asymmetries.

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China’s strategy in the tariff wars – Asia Times

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Xi Jinping, the president of China, is making position trips to Vietnam, Malaysia, and Cambodia between April 14 and April 18. It is Xi’s first outside visit this month, following the Central Conference on Work Related to Neighboring Countries held in Beijing from April 8 to 9. When asked what the main point of the meeting was, Renmin University’s Professor Jin Canrong, a well-known Chinese analyst frequently cited in Western media, stated to the Chinese website” Observer” ( guancha.cn ) that Beijing would talk to its Asian trading partners to counteract the effects of US tariffs. According to Jin, China will keep investing in Asia as part of its Belt and Road Initiative, but it will also increase domestic need to purchase more from its Eastern trading partners. ASEAN nations could buy Chinese state securities denominated in RMB, and China could use the money to buy more, replacing to some extent the US need. Jin’s remarks are above:

This conference on work related to neighboring nations was held in response to the extreme global condition brought on by the United States ‘ desire to impose tariffs. It showed that we hope to make for work a still higher goal in our country’s global strategy.

China and the United States are currently at odds with one another. China’s ties to its neighbors have grown even more significant in this regard. Constantly developing and maintaining such relations has distinct and far-reaching importance for China. &nbsp,

We can keep our nation’s good placement in the Sino-US tactical game as long as we can perform a good job of home work and neighborhood diplomacy.

Over the past few years, despite the numerous global issues and very difficult circumstances, China and its surrounding regions have remained relatively stable. &nbsp,

China’s surrounding areas will develop into a unique “island of balance” in the future and will experience robust economic advancement momentum. The area will see outstanding prospects and excellent value in the future.

The populations of the nations that surround China are also sizable, with groups exceeding 1.4 billion as well. Additionally, Indonesia, Pakistan, and Bangladesh have a large population, with 290 million, 250 million, and 180 million people, both. China and its surrounding countries account for about 56 % of the country’s total population.

Nevertheless, we have had good relations with our neighbors, but there are some flaws that are related to our growth rate. We are still not at the point where we are completely modernized. Our per capita GDP is approximately$ 13, 000, while that of the United States is over$ 80, 000.

Although development is the main goal of humanity, China is still in its early stages of development and hasn’t yet established modernization standards.

Our enhancement also has limitations, especially in soft energy, from the standpoint of a comprehensive national power standpoint. If our country’s per capita GDP exceeds$ 50, 000, and we have a population of 1.4 billion, we may create a huge impact. But, we are still not certain of it at this time. China is just a recent grad if the United States is a doctoral fellow in terms of the degree of development.

From now on, we may change our development strategy, increase our usage capacity and enhance people’s living standards. To do this, we must properly raise person’s income levels and give them total social stability. &nbsp,

In the past, many of our government’s governmental expenditures were used for investment and growth. The government may spend more money right now on enhancing people’s lives by using sources that are unrelated to significant industries. &nbsp,

By allocating and adjusting public tools, we can ultimately resolve problems in four key areas: accommodation, health care, knowledge and retirement. We can make domestic need and obtain inner circulation by improving welfare and increasing people’s investment in their livelihoods.

From a local view, the development of China’s domestic market will support the nation’s attractiveness to neighboring nations, boost the region’s job markets and development environment, and reduce its dependence on US and European markets.

Our practical work should focus on soft cooperation in the economy and technology. China first needs to strengthen its platform for regional economic cooperation and push for the implementation of the Regional Comprehensive Economic Partnership (RCEP ). Although the agreement became effective on January 1, 2023, it has not yet been fully understood. Under the RCEP framework, we should strengthen economic ties with ASEAN, Japan, South Korea, Australia and New Zealand.

In addition to strengthening economic ties with neighboring nations, we should continue to support the Belt and Road Initiative, put our emphasis on promoting subregional cooperation platforms like the China-ASEAN Free Trade Area, the China-South Asia Dialogue, and the China-Central Asia Dialogue.

Guancha.cn: Most of China’s neighboring economies agreed not to retaliate against Trump but to engage in tariff negotiations with the United States. How should China explore its economic and trade potential with neighboring countries?

Trump’s recent decision to suspend the imposition of “reciprocal tariffs” on 75 trading partners for 90 days and concentrate on business with us can be attributed to two factors: On the one hand, it is punishing China because many nations have shown an attitude of surrender and kneeling to the US. ( While most others chose to compromise, Canada and the European Union vowed to retaliate. ) On the other hand, it is also intended to appease different opinions at home.

In this context, China’s external trade situation is unquestionably severe. &nbsp,

Some experts pointed out that when the tariff level between China and the United States exceeds 54 %, most of the commodity trade between the two countries will no longer have room for profit. The US increased its tariffs to 104 % and 145 %, but nothing much changed.

We must be fully prepared psychologically and willing to pay a certain price. Some scholars estimate that the impact of this tariff war on China may be as significant as that of the 2008 global financial crisis and the 2020 Covid-19 pandemic.

During the 2008 financial crisis and the pandemic of 2020, China significantly changed its policies. To combat the crisis, the central government spent 4 trillion yuan ($ 547 billion ) plus local government loans in 2008 to address the crisis. In 2020, our country used its “whole-of-nation” system, similar to military mobilization, to overcome the pandemic. &nbsp,

We must act now and act now to combat the US tariff war and to prepare as we did in 2008 and 2020. &nbsp,

About 19 % of our GDP is exported abroad, but only 14.5 % of all exports to the US are made up of exports. Because some of our products are exported through third-party channels, the proportion may be even higher.

In the last round of tariff war, large-scale capital outflows from the mainland involved mainly Taiwanese and US firms, while the outflow of domestic capital was relatively low.

Let’s say that US exports account for about 20 % of our total exports. If China and the US’s trade is completely stopped, we will need to take steps to lessen the pain caused by a decline in exports to the US, which accounts for 4 % of our GDP.

Based on common sense, we can take three measures:

  • increase domestic demand through fiscal stimulus while pursuing internal consumption,
  • promote re-export through nations that are only subject to 10 % US tariffs,
  • explore new markets such as Southeast Asia, the Middle East and Latin America.

China and the United States could begin negotiations once they realize that China will not give in. &nbsp,

We can work together to negotiate tariff exemptions for some goods that are produced in China and then shipped to the United States, like Tesla and Apple, for example. This has already been approved by the US. – eds ]

We’ll press the other party into negotiations after the confrontation. After all, engaging in a trade war is intended to produce bargaining chips to keep China from losing some exports. If we can reach an agreement, all products made by American companies in China for the US market can be exempted from tariffs. This could lessen China’s desire to diversify its markets.

With all of the above measures, China’s GDP will be impacted by the tariff war overall, falling from 4 % to less than 2 %.

At the strategic level, I remain optimistic about China’s overall outlook. We can use this tariff war to prompt local businesses to make adjustments, promote the establishment of a domestic market with internal and dual circulation, and turn “bad things into good things” with internal circulation.

I can make a second suggestion. Faced with a 10 % US tariff, many countries will see a decline in their trade surplus to the US and receive fewer US dollars, which may cause a global shortage of US dollars. &nbsp,

China has the potential to use this opportunity to issue renminbi bonds in politically stable nations in large numbers.

The international market has a specific demand for renminbi. Renminbi bonds ‘ large-scale issuance can encourage Chinese investors to shop and invest there and help the country attract foreign investors. &nbsp,

Such a move will also help promote the use of the renminbi in global transactions and agreements, creating favorable conditions for its internationalization.

This article is republished with permission from guancha.cn, which was originally published on April 14, 2025.

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Phuket exploits fruit’s potential

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PUBLISHED: 17 Apr 2025 at 04: 58

Som khwai
Som khwai

Phuket aims to boost the province’s agricultural and food industries while promoting local Garcinia, also known as” som khwai” ( buffalo orange ), as a Thai Geographical Indication ( GI ) product.

Suwit Pansa-ngiam, the lieutenant governor of Phuket, recently led a workshop on the fruit’s GI product membership and quality control standards.

The project’s lead architect, Benjaporn Phongnarisorn, emphasized the significance of the GI standard, noting that registering native goods as Gastrointestinal products facilitates tracking and consumer confidence, as well as enhancing the products ‘ appeal to foreign markets.

Over 212 GI materials, primarily agricultural and craft products with distinctive features, have been registered by the Department of Intellectual Property throughout the country.

Mr. Suwit referred to Phuket as a” city of gastronomy” known for its high-quality local ingredients as well as a” city of gastronomy.”

A local flower that embodies Phuket’s personality is called som khwai. In April of last year, it was approved as a GI item. This training is a crucial option to aid farmers in understanding marketing strategies for both domestically and internationally, he said.

Since 2017, Phuket Rajabhat University’s Research and Development Institute has been responsible for the fruit’s growth, including processing it for greater industry potential, according to Asst Prof. Porpattama Hammahukiattikul, director of the institute.

Her college was given the task of creating an internal control system by the Department of Intellectual Property to enable Som Khwai’s farmers to uphold GI standards and maintain long-term financial sustainability.

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China Power: Cultural exports script a softer narrative in Southeast Asia

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Thailand is a top choice for Taiwanese production companies among all the nations in Southeast Asia. &nbsp, &nbsp,

According to Jeff Han, a representative for Chinese tech company Tencent, Thailand was a prime location for ability and leisure production.

Google filmed its famous real hero contest set Chuang Asia in Thailand in 2024. &nbsp,

70 recruits from countries in the region, including Malaysia, Thailand, and Vietnam, competed for spots in a fresh foreign lady group as part of the 10-episode series, which was shot in Bangkok. &nbsp,

Dr. Kornphanat Tungkeunkunt, a professor at Thammasat University, called it” a strategic shift” that “opened new opportunities” in international markets as well as a” striking move” that allowed Google to evade stringent domestic laws in China.

Beginning in December, Season 2 was shot in Bangkok, and included appearances by Season 2, rapper BamBam ( also known as a member of the K-pop boy band GOT7 ), Blackpink’s Lisa, and singer Jeff Satur. &nbsp,

60 aspiring employees from nine countries and regions competed for the title of the fresh seven-member boyband NexT1DE during the broadcast that aired from February 2 through&nbsp, April 6. &nbsp,

Thailand’s “dynamic pleasure business,” “well-established legend society,” and international attractiveness made it best to host and film the reality show, Han said. &nbsp,

The region offers an ideal environment to learn and nourish new talent, according to the statement from the country, which includes several powerful Thai stars who have gained worldwide fame.

Chinese leisure companies also face significant challenges in navigating Southeast Asia’s various and “uneven modern terrain” to provide shows and other offerings to local audiences, even as Chinese pop culture  offerings gain traction in the region. &nbsp,

All people will have access to the products, she said. &nbsp,

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Stocks retreat as US hits Nvidia chip export to China

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Following the latest trade war volley between the world’s largest economy, the US government imposed restrictions on imports of a crucial Nvidia device to China, leading to a decline in the European and Asian stock markets on Wednesday ( April 16 ). Later on Tuesday, Nvidia informed regulators that aContinue Reading

Singapore ‘not without agency’ despite its limitations as a small state amid global developments: PM Wong

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DEEPPER REGIONAL Inclusion

According to Mr. Wong, the Association of Southeast Asian Nations ( ASEAN ) continues to be a key component of Singapore’s foreign policy. &nbsp,

Regional coherence, he continued, is more important than ever in a divided world. &nbsp,

He noted that maintaining a sense of coherence and proactiveness will aid all 10 ASEAN members in resolving geopolitical tensions and maintain social relevance. &nbsp,

According to Mr. Wong, ASEAN is now the fifth-largest economy in the world after all the gains have been made for people and businesses. &nbsp,

” But we can’t and shouldn’t prevent here,” he said. He remarked that we need to expand our connectivity work. &nbsp,

The Prime Minister further stated that ASEAN should strive to achieve 100 % tax reduction in the entire territory and promote industry within the bloc. &nbsp,

According to Mr. Wong, the territory should strengthen its free trade agreements with important lovers like China, India, and the Republic of Korea and accede to the development of the Asian power grid. &nbsp,

He added that the grid will facilitate ASEAN’s transition to alternative energy more quickly, attract fresh investments, lead to better jobs, and advance the bloc’s overall energy security. &nbsp,

When Singapore assumes the head of ASEAN in 2027, which will indicate the republic’s 60th anniversary, it did advance regional integration and make sure the region continues to serve as a “vital and reliable anchor” for peace and prosperity in Asia, according to the Prime Minister. &nbsp,

GLOBAL NETWORKS

Singapore may also expand its global network of alliances, according to Mr. Wong.

We must cultivate more complex and deep relationships with multiple partners in this extremely multipolar world, he said.

The more related we are, the more stable we will be, and the better we can deal with surprises and confusion.

According to Mr. Wong, Singapore is involved in significant frameworks like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership ( CPTPP ) and Regional Comprehensive Economic Partnership (RCEP ) along with” an extensive network” of free trade agreements. &nbsp,

He claimed that these provide protection from rising protectionism and business exposure. However,” to strengthen the international trading system and maintain open flows of trade and investment, we must go farther.”

Mr. Wong claimed to have spoken with counterparts from the European Union ( EU), Malaysia, Japan, New Zealand, the United Kingdom ( UK), and New Zealand over the past week.

” We represent various nations in various areas. However, we all agreed that the universe needs more assistance rather than less. We may not flee into isolationism or protectionism, he said.

Greater partnership between the CPTPP and the EU is a topic being pursued. The UK is now a party to the agreement, and there are several other nations that are interested, according to Mr. Wong.

Collectively, the CPTPP and the EU account for about 30 % of the country’s gross domestic product. Thus, a proper partnership you “facilitate trade and investment moves and contribute to upholding the fundamental tenets of the rules-based trading system,” he said.

According to Mr. Wong, another suggestion is to develop the ASEAN-EU Strategic Partnership.

Since 1977, the EU has been a speech partner in the area, and it has already signed free trade agreements with Singapore and Vietnam. It is also looking into cooperation with other ASEAN nations.

” Deeper collaboration between our regions on important projects can help us advance toward the ASEAN-EU FTA ( free trade agreement ) goal and unlock the potential of our combined market of over one billion people,” said Mr. Wong.

Singapore is likewise developing and expanding strategic alliances with like-minded nations like Australia, New Zealand, India, France, Germany, the Republic of Korea, Saudi Arabia, the UK, and Vietnam.

” We are extending our reach to fresh borders in Latin America, Africa, and the Middle East,” said Mr. Wong.

He claimed that Singapore currently only has two political missions that serve the entire American continent, one in Latin America, and two in Cairo and Pretoria.

” This is insufficient. Over the coming months, we will launch fresh diplomatic operations in Africa and Latin America, he said.

US-CHINA RIVALRY

The problems that once held the world order of assistance, rules, and stability are deteriorating, according to Mr. Wong.

” Within America, aid for international commitment has decreased. Some Americans feel abandoned by globalization because their populations have experienced job losses, stagnant pay, and cultural dislocation, he said.

There is a growing perception that other nations are overwhelmingly benefited by America’s security umbrella and access to its industry while offering much in return.

After 9/11, the wars in Afghanistan and Iraq increased people aversion to foreign ties, while shocks from the COVID-19 pandemic and the Global Financial Crisis in 2008 caused more disruptions and dislocations, according to Mr. Wong.

Therefore, he said, there is now a strong and growing desire in the US to turn inwardward toward its private interests and reduce costly international agreements.

” The latest American administration is demonstrating this change. The US Secretary of State Marco Rubio himself cited the fact that the US’s distinct position was both an “anomaly” and” a result of the Cold War’s conclusion,” said Mr. Wong.

This attitude is reflective of deeper, structural changes in American culture, making it possible that it will not only get a temporary policy shift but” the new standard in the US for some time to come.”

China has also grown to become a close relative to the US, according to Mr. Wong, after benefiting greatly from the US-led purchase.

A new era of Chinese people, who were raised in a period of rapid development and national restoration, now think that” the East is rising, and the West is declining,” he said.

They are also more forceful, determined to correct the negative perceptions of the history and secure China’s place in the world, according to them.

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50 years later, Khmer Rouge’s murderous legacy lives on – Asia Times

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Vehicles rolled into Phnom Penh, the capital of Cambodia, on April 17, 1975, to enthralling audiences who hoped the government’s long civil war may end.

However, the 20th century’s worst holocausts came after. Between 1.6 million and 3 million people were executed, forced to eat, and starved during the communist-nationalist ideology of the Khmer Rouge during a terrible four-year law. At the time, it accounted for a third of the nation’s population.

The Khmer Rouge’s reputation has been around for fifty years, and it continues to design Cambodia politically, socially, economically, and physically. Every Cambodian has a story engraved in it, including me.

A man and woman pose for a photo.
In Cambodia, late 1960s pictures of writer’s parents. Sophal Ear, CC BY CC

As a victim, I write this not just as an intellectual or spectator. After being forced to work in a work camp, my father succumbed to diarrhoea and malnutrition under the rule of the Khmer Rouge.

To keep our family, my mother posed as Vietnamese. She escaped Cambodia in 1976 with five kids, crossed through Vietnam, before settling in France in 1978, and then arrived in the United States in 1985. We counted as fortunate.

Cambodia’s physical characteristics are unrecognizable from those of the 1970s ‘ bombed-out areas and deserted places. High-rises and opulent shopping areas adorn Phnom Penh. The earlier endures despite the glitter and occasionally in sarcastic exploitation.

Legacy of power and fear

The Khmer Rouge gained control of the country after a storm of despair, corruption, civil unrest, and remote hostility. The Khmer Rouge rose after decades of American bombing, the 1970 US-backed revolution that overthrew Prince Norodom Sihanouk, and the resulting deeply unhappy U.S.-aligned defense plan.

Crowds of people are seen on a road in which an armored vehicle is driving down.
On April 17, 1975, a fleet of cars driven through Phnom Penh under the control of the winning Khmer Rouge. Photo by Roland Neveu/LightRocket via Getty Images/The Conversation

With its blend of hard-line socialist ideology and severe Cambodian nationalism, the Khmer Rouge was viewed by many Cambodians as a liberator who vowed to restore order and dignity, especially in the countryside.

However, over the course of four years, the Khmer Rouge, led by feared leader Pol Pot, led to widespread famine and brought terror to the country through intellectual purges, forced labor, cultural genocide, and policies that led to widespread famine.

A blurry picture shows a man with a gun overseeing people with working tools in a field
Individuals digging a ocean river in 1976 while watching an armed Khmer Rouge soldier’s watch. Photo courtesy of AFP via Getty Images / The Talk

Vietnam’s forces invaded Cambodia in 1979, undermining the Khmer Rouge management, and a fresh, pro-Hanoi government was established. But there are still traces of it. The now-dominant Thai People’s Party, which has been in power for more than four decades, has justified its hold on the nation by the effects of the genocide.

” Peace and stability” have become the guiding principles of opposition.

Every false poll transforms into a vote on whether to go to war or not. The leaders of Cambodia are portrayed as challenges to stability and cohesion in critics. The internet has been muzzled, activists have been imprisoned, and opposition parties have been disbanded.

Despite the obvious use of force, this social culture of fear is directly derived from the Khmer Rouge handbook. People were taught to distrust one another, to keep quiet, and to live by keeping their heads down by the trauma experienced by that program. That desire however influences people behavior.

Justice is also incomplete and delayed.

The Khmer Rouge tribunal, known as the Incredible Halls in the Courts of Cambodia, was supposed to bring order. It has brought some.

However, it took decades to get started, cost more than US$ 300 million, and just three senior Khmer Rouge leaders were found guilty of the genocide in 1975 and 1979. Some low- and middle-level culprits leave without getting away, some still holding federal positions, and some have neighbors who are still with them.

There is still a glaring gap in schooling and public opinion regarding the Khmer Rouge’s atrocities in a country where the majority of the people was born after 1979.

Cambodia’s educational system continues to struggle to effectively teach this time period. The state prefers to frame it carefully because it is something that many young people’s parents don’t speak on.

Uncertain and delicate economic development

Over the past 20 years, Cambodia’s socioeconomic development has been remarkable in fresh figures. Prior to the Covid-19 crisis, GDP expansion was on par 7 % annually. Cities have grown, and there has been a flurry of funding, particularly from China.

A man and woman walk through a glitzy mall.
one of the upscale shopping centers in Phnom Penh. Photo courtesy of Getty Images/The Conversation: Tang Chhin Sothy/AFP

However, a large portion of this rise is fragile. The market of Cambodia continues to be reliant on exports of clothing, as well as hospitality and construction. This makes it vulnerable to external shocks, such as the Trump administration’s temporary suspension of 49 % tariffs on Thai products.

Cambodia has relied on associations– with China for expense and with the US for markets– but not enough in its own individual capital to build a resilient, diversified market.

That is also, in my opinion, a Khmer Rouge reputation that destroyed the country’s academic and professional elites.

Downer’s pain

The mental repercussions of genocide persist throughout history. The injuries that survive are carried in their bodies and minds.

But so do their children and babies. Post-traumatic stress disorder and despair are prevalent among victims and their descendants, leading to generational trauma in post-genocide Cambodia, according to research.

In the country, there aren’t nearly much mental health services. Trauma is frequently handled in private, more often than through treatments or resilience. The government’s main religion, Buddhism, offers rituals for rebirth, rebirth, and compassion. However, this is not a substitute for a widespread mental health facilities.

Worse, yet the genocide’s memory has been politicized in recent years.

Some officials use it to stifle opposition. Others opt it out of patriotic narratives. There is little room for fair, important reflection. The gap has been filled by some independent efforts, such as intergenerational dialogue initiatives and modern archives, which have received scant support.

This is a subsequent horror, in my opinion. If a nation is unable to openly discuss its past, it may really advance.

A woman looks at black and white portrait photos.
At the Tuol Sleng murder museum in Phnom Penh, which was formerly a Khmer Rouge abuse facility known as S-21, a visitor examines portraits of Khmer Rouge patients. Photo courtesy of Getty Images/The Conversation: Tang Chhin Southy

April 17 is never a Cambodian national vacation. There are no formal observances. The state doesn’t inspire the remembrance of the day the Khmer Rouge took control of Phnom Penh. But it should, in my opinion. To convince Cambodians of the importance of justice, politics, and dignity, rather than to heal their wounds.

Cambodia may return to the time of the Khmer Rouge, but the risk is not that that Cambodia did. The risk is that it turns into a place where history is manipulated, where dictatorship is justified as security, and where growth is permitted to gloss over inequity.

Cambodia must accept this miserable truth as the globe commemorates the 50th anniversary of the Khmer Rouge’s ascent: Cambodia may be long gone, but its legacy still permeates its institutions, actions, and fears.

A private evaluation

I think of my father, who I have not met. I think of my family, who put in the most effort to save us. And I think of the thousands of Cambodians who endure thoughts they can’t forget, as well as the young Cambodians who deserve to be fully aware of the truth.

What transpired on April 17, 1975 has shaped my career. However, that narrative is not solely my own. It is still being written, and it belongs to Cambodia.

Sophal Ear is an associate professor at Arizona State University’s Thunderbird School of Global Management.

The Conversation has republished this essay under a Creative Commons license. Study the article’s introduction.

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EU shaping the future in Trump’s sustainability vacuum – Asia Times

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Two of the most powerful governments in modern history chose flee over registration at a time when the world was searching for solid hands and shared direction.

The United Kingdom’s decision to leave the European Union was the first, an action that was seen as usurping independence but widely accepted as a mistake in judgment. Britain relinquished its seat at the table, trading effect for isolation, rather than working from within to create the changing rules of international cooperation.

Donald Trump’s followers proclaimed his return to the White House as” Liberation Day.” The United States turned inward, reviving tariffs under the symbol of professional protection, instead of re-engaging the world with a new goal.

In a protectionist move intended to safeguard American work, sweeping new jobs were imposed on all imports this month. True power does not come from financial barricades, especially when those barricades isolate a country from the growing standards governing tomorrow’s trade and legitimacy.

The price is not just economic ( higher prices and stalled alliances ), but also spiritual: a lessening speech in shaping the shared potential.

These weren’t really social choices. The retreat of a once-shared responsibility to help navigate the world through clashing environment, injustice, and validity was the object of these abdications.

The pump they left behind is being filled, not with sound but with criteria, as frequently happens in past. A new style of international authority is emerging in Brussels ‘ calm corridors. Despite its flaws, the European Union has started transforming conservation into architecture.

Through initiatives like the Corporate Sustainability Reporting Directive ( CSRD), the Green Taxonomy, and the Carbon Border Adjustment Mechanism, Europe is institutionalizing what some people still view as aspirational. It is encoding sustainability rather than just defending it.

The EU is doing something dramatic: demanding evidence in a time when misleading is rife and Sustainable results are exceedingly mistrustworthy.

Over 50, 000 businesses operating in the region are required to give audited statements under CSRD, including non-European ones that cover everything from management and supply chains to pollution and human rights.

Not generosity, this is. It has provisional validity. You must demonstrate your support for a really, green future if you want to access one of the largest markets in the world.

What sets Europe apart is not its size, but rather its capacity to lead with principles. While people sabotage deal, Europe is using it to bolster confidence. Some increase walls, but it also erects systems. And perhaps most important, it transforms responsibilities into access.

However, Europe is not moving by itself. Japan has taken strong but understated actions to improve conservation. Its Sustainability Standards Board ( SSBJ) established the nation’s first IFRS-aligned sustainability disclosure standards, which cover both general and climate-related disclosures, in 2025. These regulations protect companies listed on the Prime Market of the Tokyo Stock Exchange from misinformation regarding climate risks, management, and pollution.

One of the most optimistic renewables goals among the G7 countries is Japan’s commitment to a 73 % decline in greenhouse gas emissions by 2040, in addition to its 2013 commitment. Although its approach may be silent, it is meticulous, thorough, and functionally revolutionary.

China is also changing its approach to sustainability on its words. It laid the groundwork for a federal ESG monitoring program that was compliant with international standards in the release of the Basic Standards for Corporate Sustainability Disclosure in late 2024.

This action strengthens its ability to guide green finance and trade policies and complements its SDG-aligned alternative classification. The Global Development Initiative is a reflection of China’s efforts to incorporate environmental and social indicators into its system diplomacy on a political degree.

Although its path is different from that of Europe, the message is undeniable: conservation is no longer a peripheral issue; it is becoming fundamental. This is more than just a European tale. Additionally, it isn’t just about adherence. It’s about consistency, really.

The effects are immediate and true for the nations in the Global South. Exporting never more revolves solely around cost. It’s about providing resistant. Manufacturers are being asked to demonstrate that their products have both price and principles, from cocoa producers in Ghana to Bangladeshi garment manufacturers.

This is not neocolonialist at all. It is a reflection. And it raises the following: Is we create a global market where access is earned through contributions rather than coercion? Where does validity derive from behaviour rather than from branding?

The solution, in our opinion, is yes. However, only if the systems being constructed are really diverse. The World South must not only abide by these standards, but also form them. Conservation may turn into another type of gatekeeping. It must develop into a common foundation, one that respects celestial boundaries while upholding development rights.

However, this developing architecture is brittle. Concerns about the recent delays in CSRD and the Corporate Sustainability Due Diligence Directive ( CSDDD ) have been legitimate. The spectators are certainly concerned with the timeframes. They represent it, exactly. Beliefs can deteriorate because of fear. Standard lines may be blurry. And faith is wane.

Conservation as the foundation of international legitimacy is the new motto of Europe’s flag. The world may delay if it slows over. The world does prevent believing, however, if it reverses. And once lost, perception is much harder to regain than establishes.

Certainly the subject of the most popular speaker. It is about who holds regular when it’s most appealing to loosen. Leadership then rests on regularity, persistence, and staying put when difficulty hits.

Beyond bright ESG brochures, the world is changing. It is approaching the age of effect. the point when systems no longer only execute but must deliver. Europe’s position in that earth is crucial, but it is insufficient. The Global South’s legitimate demands, China’s reforming, and Japan’s solid hand had all come together.

The loudest, richest, or fastest can’t predict the future. It must be created by the most trustworthy people. Additionally, conservation is then given a new title.

Europe began to build filtering out of respect in a world where walls are built out of fear. However, protectors are necessary for frames as well. If Europe is currently sluggish, path is the only thing that stops. It’s not just rules. And course is everything in this fractious situation.

Setyo Budiantoro is a member of the Fair Finance Asia Advisory Committee, a MIT Sloan Fellow 2024, and a Nexus Strategist at The Prakarsa.

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FinanceAsia Awards 2025: Southeast Asia winners announced | FinanceAsia

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In: Asia, Finance, South-East Asia

As the world is still yet out of the tariff woods, leading financial institutions across Asia Pacific (Apac) continue to navigate the uncertain tides and have made waves in the uncertain time. In the meantime, It was another challenging year for institutions in Asia as the global economy continues to recover after the Covid-19 pandemic, with sluggish economic growth. 

It is worth pausing to celebrate people, teams and organisations that have withstood the test of another challenging, if not difficult, year. Not only does geopolitcal complexity persist, each market is on their unique mission towards recovery, sustainability, digitalisation, restructuring, or innovation. 

The FinanceAsia team invited banks, brokers, ratings agencies and other financial institutions, to showcase their capabilities when supporting their clients. Our awards process celebrates those institutions that showed determination to deliver desirable outcomes, through the display of commercial and technical acumen.

 This year marks the 29th iteration of our FinanceAsia awards and celebrates activity that took place during the 12 months of 2024. 

Read on for details of the winners and finalists (entrants whose submissions were ((Highly commended by our jury) for North Asia. Full write-ups explaining the rationale behind winner selection will be published the Awards edition of FinanceAsia, with subsequent syndication online.

Congratulations to all of our winners in the Southeast Asian (SEA) markets: 

BRUNEI DOMESTIC

 

BEST BANK

 

Baiduri Bank

 

INDONESIA DOMESTIC

 

BEST BANK

 

PT Bank Mandiri (Persero) Tbk

 

Highly commended – Bank BRI

 

BEST BANK FOR FINANCIAL INCLUSION

 

Bank BRI

 

BEST BROKER

 

PT CGS International Sekuritas Indonesia

 

BEST COMMERCIAL BANK – SMES

 

Bank BRI

 

BEST CORPORATE BANK – LARGE CORP & MNCS

 

PT Bank Mandiri (Persero) Tbk

 

BEST CUSTODIAN BANK

 

Bank BRI

 

Highly commended – PT Bank Mandiri (Persero) Tbk

 

BEST DCM HOUSE

 

PT Indo Premier Sekuritas

 

BEST ESG CONSULTANT

 

UMBRA – Strategic Legal Solutions

 

BEST LAW FIRM

 

UMBRA – Strategic Legal Solutions

 

BEST PRIVATE BANK

 

Bank BRI

 

BEST RETAIL BANK

 

PT Bank Mandiri (Persero) Tbk

 

BEST STRATEGIC INITIATIVE – BANKS

 

PT Bank Mandiri (Persero) Tbk

 

Highly commended – PT Bank Syariah Indonesia Tbk

 

BEST SUSTAINABLE BANK

 

PT Bank Mandiri (Persero) Tbk

 

BIGGEST SUSTAINABLE IMPACT – BANKS

 

PT Bank Mandiri (Persero) Tbk

 

MOST DEI PROGRESSIVE – BANKS

 

 PT Bank Mandiri (Persero) Tbk

 

MOST INNOVATIVE USE OF TECHNOLOGY – BANKS

 

PT Bank Mandiri (Persero) Tbk

 

Highly commended – Bank Saqu

 

INDONESIA INTERNATIONAL

 

BEST BANK

 

BNP Paribas

 

BEST COMMERCIAL BANK – SMES

 

OCBC

 

BEST DCM HOUSE

 

DBS Bank

 

BEST ECM HOUSE

 

UBS

 

BEST INVESTMENT BANK

 

Deutsche Bank

 

Highly commended – UBS

 

BEST M&A HOUSE

 

 UBS

 

BEST SUSTAINABLE BANK

 

DBS Bank

 

BIGGEST SUSTAINABLE IMPACT – NONBANK FINANCIAL INSTITUTIONS

 

Credit Guarantee and Investment Facility (CGIF)

 

MALAYSIA DOMESTIC

 

BEST BROKER

 

CGS International Securities Malaysia

 

BEST COMMERCIAL BANK – SMES

 

Alliance Bank Malaysia

 

BEST CORPORATE BANK – LARGE CORP & MNCS

 

Maybank

 

BEST DCM HOUSE

 

CIMB

 

Highly commended – Maybank Investment Bank

 

BEST ECM HOUSE

 

CIMB

 

BEST INVESTMENT BANK

 

CIMB

 

BEST M&A HOUSE

 

CIMB

 

BEST SUSTAINABLE BANK

 

 Maybank Investment Bank

 

BIGGEST SUSTAINABLE IMPACT – NONBANK FINANCIAL INSTITUTIONS

 

AmInvest

 

MOST INNOVATIVE USE OF TECHNOLOGY – BANKS

 

Kenanga Investment Bank Berhad

 

MALAYSIA INTERNATIONAL

 

BEST BANK

 

 UOB Malaysia

 

BEST COMMERCIAL BANK – SMES

 

OCBC

 

BEST M&A HOUSE

 

UBS

 

BEST SUSTAINABLE BANK

 

UOB Malaysia

 

MYANMAR DOMESTIC

 

MOST INNOVATIVE USE OF TECHNOLOGY – BANKS

 

KBZ Bank

 

PHILIPPINES DOMESTIC

 

BEST BANK

 

BDO Unibank

 

Highly commended – Bank of the Philippine Islands

 

BEST BANK FOR FINANCIAL INCLUSION

 

BPI Foundation, Inc.

 

BEST BROKER

 

First Metro Securities Brokerage Corporation

 

BEST COMMERCIAL BANK – SMES

 

Security Bank Corporation

 

BEST CORPORATE BANK – LARGE CORP & MNCS

 

Bank of the Philippine Islands

 

BEST DCM HOUSE

 

First Metro Investment Corporation

 

BEST ECM HOUSE

 

BPI Capital Corporation

 

BEST INVESTMENT BANK

 

 BPI Capital Corporation

 

Highly commended – Security Bank Capital Investment Corporation

 

BEST RETAIL BANK

 

 Bank of the Philippine Islands

 

BEST SUSTAINABLE BANK

 

Bank of the Philippine Islands

 

BIGGEST SUSTAINABLE IMPACT – BANKS

 

Bank of the Philippine Islands

 

PHILIPPINES INTERNATIONAL

 

BEST BANK

 

HSBC

 

BEST BANK FOR PUBLIC SECTOR CLIENTS

 

Citibank N.A

.

BEST CORPORATE BANK – LARGE CORP & MNCS

 

 Citibank N.A.

 

BEST CORRESPONDENT BANK

 

 Citibank N.A.

 

BEST CUSTODIAN BANK

 

HSBC

 

BEST DCM HOUSE

 

UBS

 

BEST ECM HOUSE

 

UBS

 

BEST INVESTMENT BANK

 

UBS

 

BEST M&A HOUSE

 

UBS

 

BEST STRATEGIC INITIATIVE – NONBANK FINANCIAL INSTITUTIONS

 

 FinVolution Group

 

SINGAPORE DOMESTIC

 

BEST BANK

 

 United Overseas Bank

 

BEST BROKER

 

 Maybank Securities Singapore (MSSG)

 

BEST COMMERCIAL BANK – SMES

 

OCBC

 

BEST DCM HOUSE

 

United Overseas Bank Limited

 

BEST ECM HOUSE

 

DBS Bank

 

BEST INVESTMENT BANK

 

DBS Bank

 

BEST LAW FIRM

 

Allen & Gledhill

 

BEST M&A HOUSE

 

United Overseas Bank Limited

 

BEST SUSTAINABLE BANK

 

DBS Bank

 

MOST INNOVATIVE USE OF TECHNOLOGY – BANKS

 

OCBC

 

MOST INNOVATIVE USE OF TECHNOLOGY – NONBANK FINANCIAL INSTITUTIONS

 

UOB Asset Management

 

SINGAPORE INTERNATIONAL

 

BEST BANK

 

 Citi Singapore

 

BEST DCM HOUSE

 

 UBS

 

BEST INVESTMENT BANK

 

Citi Singapore

 

BEST M&A HOUSE

 

 UBS

 

BEST SUSTAINABLE BANK

 

ANZ

 

MOST DEI PROGRESSIVE – NONBANK FINANCIAL INSTITUTIONS

 

Aberdeen Investments

 

MOST INNOVATIVE USE OF TECHNOLOGY – BANKS

 

 CIMB Singapore

 

MOST INNOVATIVE USE OF TECHNOLOGY – NONBANK FINANCIAL INSTITUTIONS

 

 Aberdeen Investments

 

Highly commended – Marex Solutions

 

THAILAND DOMESTIC

 

BEST BROKER

 

CGS International Securities Thailand

 

BEST DCM HOUSE

 

KASIKORNBANK PUBLIC COMPANY LIMITED

 

BEST ECM HOUSE

 

Kiatnakin Phatra Securities Public Company Limited

 

BEST INVESTMENT BANK

 

Kiatnakin Phatra Securities Public Company Limited

 

BEST LAW FIRM

 

Weerawong, Chinnavat and Partners

 

BEST M&A HOUSE

 

Kiatnakin Phatra Securities Public Company Limited

 

BEST SUSTAINABLE BANK

 

Bangkok Bank PCL

 

THAILAND INTERNATIONAL

 

BEST BANK

 

HSBC Thailand

 

BEST ECM HOUSE

 

 UBS

 

Highly commended – Maybank Investment Bank

 

BEST INVESTMENT BANK

 

UBS

 

BEST M&A HOUSE

 

UBS

 

BEST SUSTAINABLE BANK

 

UOB Thailand

 

BIGGEST SUSTAINABLE IMPACT – BANKS

 

UOB Thailand

 

VIETNAM DOMESTIC

 

BEST BANK

 

Vietnam Technological and Commercial Joint Stock Bank (Techcombank)

 

Highly commended – Asia Commercial Bank

 

BEST BANK FOR PUBLIC SECTOR CLIENTS

 

Saigon-Hanoi Commercial Joint Stock Bank (SHB)

 

BEST BROKER

 

SSI Securities Corporation

 

BEST DCM HOUSE

 

SSI Securities Corporation

 

BEST INVESTMENT BANK

 

SSI Securities Corporation

 

BEST LAW FIRM

 

YKVN LLC

 

BEST SUSTAINABLE BANK

 

Vietnam Technological and Commercial Joint Stock Bank (Techcombank)

 

Highly commended – OCB

 

MOST INNOVATIVE USE OF TECHNOLOGY – NONBANK FINANCIAL INSTITUTIONS

 

Techcom Securities Joint Stock Company

 

VIETNAM INTERNATIONAL

 

BEST BANK

 

HSBC

 

BEST COMMERCIAL BANK – SMES

 

Citi Vietnam

 

BEST CORPORATE BANK – LARGE CORP & MNCS

 

Citi Vietnam

 

BEST DCM HOUSE

 

HSBC

 

BEST ECM HOUSE

 

 HSBC

 

Highly commended – UBS

 

BEST INVESTMENT BANK

 

UBS

 

BEST M&A HOUSE

 

UBS

 

BEST SUSTAINABLE BANK

 

Citi Vietnam

 

BIGGEST SUSTAINABLE IMPACT – BANKS

 

HSBC

 

BIGGEST SUSTAINABLE IMPACT – NONBANK FINANCIAL INSTITUTIONS

 

Private Infrastructure Development Group (PIDG)

 

MOST INNOVATIVE USE OF TECHNOLOGY – BANKS

 

HSBC

 


¬ Haymarket Media Limited. All rights reserved.

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Tariffs fallout: The US will struggle to take on Asia over chips

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14 days before
Suranjana Tewari profile image
Suranjana Tewari

Reporting fromSingapore
BBC An outline image of the USA filled with microchip parts in greenBBC

Read the entire article.

The US has “dropped the game” on chip production over the years, allowing China and various Eastern hubs to heat away. Gina Raimondo, the US Commerce Secretary at the time, said this in a 2021 meeting with me.

Four years later, chips are still a hot topic in the US-China race for tech dominance, and US President Donald Trump wants to reinvigorate a very complicated and sensitive manufacturing process that has taken another regions decades to great.

He says his tax plan will conquer the US business and bring work home, but it is also the event that some of the biggest companies have long struggled with a lack of skilled workers and poor-quality make in their American factories.

What did Trump change, then? And is it even possible for the US to make them on a level, given that Taiwan and different parts of Asia are the masters of producing high-precision cards?

Making computers: the secret soup

Electronics are essential to the power of everything from military planes to electric vehicles to washing machines to smartphones. These small silicon wafers, or cards, were originally created in the United States, but Asia is where the most sophisticated chips are being produced on a massive scale.

Making them is expensive and functionally difficult. For instance, an iPhone may have bits made in the US, made in Taiwan, Japan, or South Korea, and used as natural materials, such as rare rocks, which are primarily mined in China. Second, they might be sent to Vietnam for packing, next to China for legislature and screening, before being shipped to the US for shipment.

Getty Images A woman of Asian appearance wearing a pink top and hat peers over a chip manufacturing machineGetty Images

It is a profoundly integrated ecosystem that has evolved over the years.

Trump has praised and threatened to impose levies on the chip industry. He has told industry leader, Taiwan Semiconductor Manufacturing Company ( TSMC), it would have to pay a tax of 100 % if it did not build factories in the US.

They need to be able to prepare for higher fees and expense calling in the long term, properly beyond Trump’s presidency, given such a complex habitat and fierce competitors. The regular revisions to plans aren’t helping. So much, some have shown a commitment to invest in the US.

The substantial subsidies that China, Taiwan, Japan, and South Korea have given to private businesses producing chips are a major factor in their success.

The US Chips and Science Act, passed into law in 2022 under President Joe Biden’s plan to re-orient the production of cards and extend supply chains, by distributing offers, tax credits, and incentives to encourage local production, was mostly driven by this idea.

Getty Images A TSMC factory in Taiwan. The building is horizontal and silver with the letters TSMC writ large across it in red writing. In the foreground moped riders pass on the road in front of the factory.Getty Images

Some companies like the world’s largest chipmaker TSMC and the world’s largest smartphone maker Samsung have become major beneficiaries of the legislation, with TSMC receiving$ 6.6 billion in grants and loans for plants in Arizona, and Samsung receiving an estimated$ 6 billion for a facility in Taylor, Texas.

Trump and TSMC made a further$ 100 billion investment in the US, in addition to the$ 65 billion pledged for three plants. TSMC also benefits from diversifying chip production, with China repeatedly threatening to overthrow its island.

But both TSMC and Samsung have faced challenges with their investments, including surging costs, difficulty recruiting skilled labour, construction delays and resistance from local unions.

This is not just a factory where boxes are made, according to Marc Einstein, research director at Counterpoint, a market intelligence firm. ” The factories that make chips are such high-tech sterile environments that they take years to build.”

And despite the US investment, TSMC has said that most of its manufacturing will remain in Taiwan, especially its most advanced computer chips.

Did China attempt to rob Taiwan of its talent?

High-quality chips are produced today at TSMC’s plants in Arizona. But Chris Miller, author of Chip War: The Fight for the World’s Most Critical Technology, argues that” they’re a generation behind the cutting edge in Taiwan”.

According to him,” the scale question depends on how much investment is made in the US versus Taiwan.” Taiwan currently has much more capacity.

The reality is, it took decades for Taiwan to build up that capacity, and despite the threat of China spending billions to steal Taiwan’s prowess in the industry, it continues to thrive.

Getty Images Exterior shots of the TSMC chip plant in ArizonaGetty Images

The “foundry model,” in which chip makers took US designs and produced chips for other companies, was pioneered by TSMC.

With the best engineers, highly qualified labor, and knowledge sharing, TSMC was able to compete with US and Japanese giants while riding on the wave of Silicon Valley start-ups like Apple, Qualcomm, and Intel.

” Could the US make chips and create jobs”? asks Mr. Einstein. ” Yes, but will they reduce the size of the chips by a nanometer?” Probably not”.

Trump’s immigration policy, for example, may have a role in limiting the arrival of skilled workers from China and India.

According to Mr. Einstein,” Even Elon Musk has had an immigration problem with Tesla engineers,” referring to Musk’s support for the US’s H-1B visa program, which brings skilled workers to the US.

” That’s a bottleneck and there’s nothing they can do, unless they change their stance on immigration entirely. You can’t just magicalize PhDs out of thin air.

The global knock-on effect

Even so, Trump has doubled down on tariffs, ordering a national security trade investigation into the semiconductor sector.

According to Mr. Einstein, “it’s a big wrench in the machine.” For instance,” Japan’s business plan did not include tariffs in its plan of action,” citing the fact that it relied on semiconductors to revitalize its economy.

The longer-term impact on the industry, according to Mr Miller, is likely to be a renewed focus on domestic manufacturing in many of the world’s key economies: China, Europe, the US.

Some businesses might be looking for new markets. In response to export controls and tariffs, Chinese technology giant Huawei, for example, expanded into Europe and emerging markets, including Thailand, the UAE, Saudi Arabia, Malaysia, and many African nations, even though the margins in developing nations are small.

” China ultimately will want to win – it has to innovate and invest in R&amp, D. Look at what it did with Deepseek”, says Mr Einstein, referring to the China-built AI chatbot.

Everyone will go to them if they make better chips, they say. They can do this right away for cost-effectiveness, and looking forward, they can do it because of the ultra-high-tech fabrication.

Donald Trump speaking into a microphone with his arms out to either side in front of him

In the meantime, new manufacturing hubs may emerge. According to experts who claim there is a greater chance of India joining the chip supply chain because it is geographically closer, labor is cheap, and education is good, India has a lot of promise.

India has indicated its willingness to work with chips, but it also faces challenges related to land acquisition and water, since chip production requires a lot of water of the highest caliber.

Bargaining chips

Chip manufacturers are not entirely free from tariffs. Due to his reliance on and increasing demand for chips from major US companies like Microsoft, Apple, and Cisco, Trump may have to retaliate.

Some insiders believe intense lobbying by Apple CEO Tim Cook secured the exemptions to smartphone, laptop and electronic tariffs, and Trump reportedly lifted a ban on the chips Nvidia can sell to China as a result of lobbying.

Trump responded to a question about Apple products in particular on Monday in the Oval Office, saying,” I’m a very flexible person,” adding that” there may be things coming up, I speak to Tim Cook, I helped Tim Cook recently.

Getty Images Nvidia CEO Jensen HuangGetty Images

Einstein believes that Trump’s ultimate goal is to make a deal, because he and his administration are aware that they can’t just build bigger buildings when it comes to chips.

” I think what the Trump administration is trying to do is what it has done with TikTok’s owner Bytedance. He claims that unless you give Oracle or another US company a stake, I won’t let you run in the US any longer.

” I believe they’re trying to fandangle something similar here- TSMC isn’t going anywhere, let’s just force them to make a deal with Intel and take a piece of the pie,” he said.

But the blueprint of the Asia semiconductor ecosystem has a valuable lesson: no one country can operate a chip industry on its own, and if you want to make advanced semiconductors, efficiently and at scale – it will take time.

Trump is attempting to establish a chip industry through isolation and protectionism, but the key to its development in Asia was collaboration, which is the opposite.

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