Asia

October 2024: Retail Increases, Industrial Decline, and Export Growth in China’s Economy
21Nov mmBy Joe RodriguezNo Comments
Asia, China, Market

October 2024: Retail Increases, Industrial Decline, and Export Growth in China’s Economy

The National Bureau of Statistics (NBS) has released the trade and economic data for October 2024, reflecting a mixed economic outlook. Retail sales surged 4.8 percent, the highest since February 2024, buoyed by holiday spending and Singles’ Day promotions. However, industrial output growth slowed to 5.3 percent, missing expectations, and the property sector remains sluggish despite recent policy measures. Amid this backdrop, economists highlight the challenges of sustaining growth, particularly with rising global uncertainties. The return of Donald Trump as President-elect of the United States, who has threatened significant tariffs on Chinese imports, poses a potential headwind for China’s trade-dependent sectors. In response, analysts anticipate further s...
Read More
SMIC and Huawei of China “will ramp up production” of the newest AI chip.
21Nov mmBy Joe RodriguezNo Comments
Asia, China, Market, USA, World

SMIC and Huawei of China “will ramp up production” of the newest AI chip.

SMIC, China’s largest contract chipmaker, will make the 910C on its N+2 process, it added. Huawei is aiming to ramp up production even as the yield – the proportion of chips that come off the manufacturing line fully functional – of its advanced AI semiconductors remains far below industry standards. Advanced chips need yields of more than 70% to be commercially viable — lower yields mean greater costs and higher defect rates. But SMIC is currently producing the 910C on older, stockpiled chipmaking equipment, which has limited the chip’s yield to around 20%, Reuters said, citing a source. Even Huawei’s current most advanced processor, the SMIC-made 910B, has a yield of only around 50%, forcing Huawei to slash production targets and delay filling orders for that chip, the ...
Read More
Why AI is the new catalyst for profitable growth in Southeast Asia
21Nov mmBy Brian ThompsonNo Comments
Asia, Market, USA, World

Why AI is the new catalyst for profitable growth in Southeast Asia

Southeast Asia's digital economy is a story of remarkable resilience and dynamism. Millions in the region join the digital landscape every year as consumers, entrepreneurs, developers and creators, driving both economic growth and societal transformation. The e-Conomy SEA 2024 report by Google, Temasek, and Bain & Company captures this dynamism and reveals a regional digital economy that has achieved profitability. In just two years, profitability has grown 2.5x, from US$4 billion in 2022 to US$11 billion in 2024. This underscores the region's capacity to not only embrace innovation but to translate it into tangible economic gains, delivering a 10x increase in revenue since 2016. Combined with strategic investments and forward-thinking policies, the region's inher...
Read More
SMIC and Huawei of China “will ramp up production” of the newest AI chip.
21Nov mmBy Brian ThompsonNo Comments
Asia, China, Market, USA

SMIC and Huawei of China “will ramp up production” of the newest AI chip.

Chinese technology giant Huawei and chipmaker Semiconductor Manufacturing International Corp (SMIC) are aiming to begin mass-production of China’s most advanced homegrown artificial intelligence chip, starting next year, according to Reuters. Huawei is racing to rival US chipmaker Nvidia with its AI chips at a time when increasing export restrictions by Washington — and its allies — are slowing the growth of China’s tech industry. As part of that effort, Huawei plans to start mass producing the Ascend 910C, its newest AI chip offering in China, in the first quarter of 2025, Reuters said, citing sources familiar with the matter. SMIC, China’s largest contract chipmaker, will make the 910C on its N+2 process, it added. Huawei is aiming to ramp up production even as the yield – t...
Read More
In 2025, the US economy is expected to surpass forecasts.
20Nov mmBy Walter ParezNo Comments
Asia, Market, USA, World

In 2025, the US economy is expected to surpass forecasts.

The world’s largest economy is forecast to outperform economist expectations again next year, according to Goldman Sachs Research. “The US economy is in a good place,” writes David Mericle, chief US economist in Goldman Sachs Research. “Recession fears have diminished, inflation is trending back toward 2%, and the labor market has rebalanced but remains strong.” Goldman Sachs Research predicts US GDP will grow 2.5% on a full-year basis. That compares with 1.9% for the consensus forecast of economists surveyed by Bloomberg. Three key policy changes following the Republican sweep in Washington are expected to affect the economy, Mericle writes in the team’s report, which is titled “2025 US Economic Outlook: New Policies, Similar Path.” Tariff increases on imports from...
Read More
According to a research, the business migration from China is intensifying.
20Nov mmBy Joe RodriguezNo Comments
Asia, China, Market

According to a research, the business migration from China is intensifying.

Even before President-elect Donald Trump and his tariff-heavy agenda won the White House, top companies were already planning to shift production out of China at a faster pace, according to a new study. Based on a survey of 166 CEOs and COOs, Bain & Company found that the share of companies moving operations out of China jumped to 69% in 2024 from 55% in 2022. Where will they go? The top destination was the Indian subcontinent, with 39% of execs saying they were headed there. That was followed by 16% moving to the U.S. or Canada, 11% to Southeast Asia, 10% to Western Europe, and 8% to Latin America, rounding out the top five destinations. Meanwhile, more companies are “reshoring” operations to their home countries or “near-shoring” to neighboring countries...
Read More
China’s Religious Crisis and the Battle for Moral Domination
20Nov mmBy Joe RodriguezNo Comments
Asia, China

China’s Religious Crisis and the Battle for Moral Domination

China’s policies toward religion have changed radically during the Xi era. The state has sought to Sinicize religious practices and bring them under tighter bureaucratic control, while stricter regulations have curtailed public discussion of faith and spirituality on the Internet and social media. Nonetheless, more Chinese than ever are turning to spiritual pursuits in search of comfort and relief from the stress and unpredictability of life in China at a time of economic uncertainty, social disruption, and eroding trust in the Party-state and its secular materialist ideology. Internal migration and rapid urbanization have weakened community life and family ties, creating a sense of social isolation. A highly competitive education system, bleak employment prospects, and the pressures o...
Read More
Morgan Stanley and Goldman Sachs reduce China’s prospects for economic development.
19Nov mmBy Walter ParezNo Comments
Asia, China, Market

Morgan Stanley and Goldman Sachs reduce China’s prospects for economic development.

Hong Kong stocks are cheap but may miss out on the benefits of China's economic support, analysts at Goldman Sachs said, while Morgan Stanley warned tensions and tariffs could hurt, as both brokerages downgraded market forecasts.  Goldman Sachs trimmed its recommendation on Hong Kong shares to "underweight" from "market weight".  Morgan Stanley downgraded China to slight "underweight" from "equal weight" in emerging markets, with analysts noting that efforts to revive the economy and a Republican sweep of Congress and the White House could significantly impact markets. "We expect even stronger headwinds on corporate earnings and market valuation in the coming months," Morgan Stanley analysts said in a note dated Nov. 17.  Morgan Stanley's base-case target for Ch...
Read More
Ahead of more US technology and trade restrictions, China targets vital metal exports.
18Nov mmBy Joe RodriguezNo Comments
Asia, China, Market, USA, World

Ahead of more US technology and trade restrictions, China targets vital metal exports.

Beijing will expand export controls on critical minerals like tungsten, graphite, and magnesium needed to make electronics, a move analysts say is in anticipation of expected sweeping US tariffs on Chinese goods and increased curbs on advanced semiconductor chips and AI technology to China following the re-election of US President Donald Trump. The restrictions also apply to specific technologies that can be used for both civilian and military purposes. China controls more than 80% of the world’s supply of tungsten and about 90% of global magnesium production, according to one official estimate; the minerals are indispensable in building defense technology, weapons, aviation equipment, and spacecraft. Washington has pushed to delink the supply chain from China ...
Read More
Why is COP29 all about money, and what is it?
12Nov mmBy Michael SmithNo Comments
Asia, China, Market, World

Why is COP29 all about money, and what is it?

Each year, world leaders and negotiators gather at the United Nation’s climate summits to address the escalating climate crisis. But this year's COP29 in Baku feels different.  Dubbed the "Finance COP", its focus is on funding initiatives to curb the flailing increase in global warming temperatures. This COP also marks the last major talks before countries submit updated emission reduction targets in 2025. With the world far off track to limit warming to 1.5 degrees Celsius, the pressure is on. This year's discussions centre on a new financial target to be set before early 2025. For developing countries, especially in the Asia-Pacific region, this isn't just about numbers — it's about survival. What is COP29 and why is it ...
Read More