While the US and Japan would like TSMC to "spread the risk" of global tech supply chains being hit in the event of cross-strait tensions, TSMC is quite firm on keeping its advanced technologies in Taiwan while going through the motions of setting up some overseas outposts as recommended by its allies. It is well aware of its strategic value and will want to hold on to its upper hand.
China-US trade war
Economy
Claims that financial decoupling will occur between China and the US are not yet evident from the trade data, says NUS academic Christopher J. Voisey. In 2020, FDI inflows in China increased by 6% and the ease of doing business improved. And while there have been greater hurdles for Chinese companies seeking US listings, their stocks are often still available to foreign investors through alternative channels. Might some turbulence be par for the course as China seeks stronger autonomy and economic power?
Politics
Chen Gang sees that rather than an end in itself, climate change can be a springboard for China and the US to deepen cooperation in other areas. This is by virtue of the fact that climate change is often intertwined with issues relating to the economy, trade and foreign policy. Facets of climate change cooperation will have spillover effects that could lead to tariff reductions, investments and greater technology collaborations.
Politics
Some analyses have sounded the alarm of China lurching to the left in a marked return to Maoism. On closer examination, says Loro Horta, China’s recent clampdowns on capital are rational and not exactly ideologically driven. Issues facing China, such as the need to tackle rising inequality, affect the ruling party’s legitimacy and longevity. These concerns may have a strong push effect on the authorities. In fact, rather than a reversion to Maoism, the Xi government seems to be embracing Confucianism as a basis to enforce social order and norms, just as it derides “evil fan culture” as a means to keep a tight rein on social control.
Politics
High-level trade and foreign policy officials from the US and China have articulated their views recently on implementing the phase one trade deal and hopes for cooperation amid a state of strategic competition. Will more of such sessions help to chip away at the great wall of mistrust that has been built between the US and China?
Technology
Though the Covid-19 pandemic has had an impact on many industries, annual global semiconductor sales still increased by 10.8% in 2020 to reach US$464 billion. The current global semiconductor supply chain is highly internationalised. While it is dominated by a small number of countries and regions, none of them has full control over every segment in the supply chain and geopolitics can be a risk factor. While the US has imposed sanctions and trade restrictions on China to hinder its development in chip making, academic James Pang says that given the nature of the industry, the current status quo will be maintained for some time.
Technology
In recent years and since the pandemic led to the surge in livestreaming, e-learning and other online activities, the demand for cloud computing and related services has increased significantly. Chinese companies led by frontrunners Huawei, Tencent and Alibaba are launching into all-out competition in the cloud services sector. While Huawei has been fiercely climbing the ranks with the injection of talent and funding, Alibaba and Tencent are not resting on their laurels either. What could be their winning war chests? And are they ready to take on the world? Caixin journalist Zhang Erchi finds out.
Politics
Economics professor Zhu Ying notes that China-US trade ties are currently highly politicised, not least because of bilateral military competition, and what the West sees as China’s authoritarian approach in the digital sector. The US trade war is set to see further ripples and partial decoupling of supply chains may worsen. Can this standoff be resolved?
Economy
Amid the effects of the China-US trade war and the Covid-19 pandemic, global manufacturers are seeing the need to adopt a ”China+1“ strategy by diversifying their supply chains or business operations beyond China. However, moving parts of the supply chain to the Southeast Asian region is not so straightforward. What challenges do they face and how are they overcoming them? Will China's position as the "world's factory" be shaken and how will its economic model be changed?