China consolidates its brokerage industry and create investment banks that can compete with global giants; Swiss private equity giant Partners Group opens Hong Kong office with eye on rich clients
Donald Trump proposes green cards for foreign graduates of US colleges; Tiny Singapore’s chip hub retains a big punch
Welcome to this issue of The China Brief. Today is June 21, 2024. Here at The China Brief, we bring you the latest news on China's politics, economy, and society from global media sources, along with exclusive expert analysis. If you find our content helpful, please subscribe to our newsletter.
Donald Trump proposes green cards for foreign graduates of US colleges
South China Morning Post
Former US President Donald Trump has suggested that foreign students who graduate from US colleges should be given automatic green cards, allowing them to stay in the country. This proposal stands in contrast to Trump's previous anti-immigrant rhetoric, and would represent a significant expansion of America's immigration system. However, some immigration advocates have expressed skepticism over Trump's proposal, pointing out that his administration previously implemented policies to restrict student visas and make it harder for graduates to stay in the US.
https://www.scmp.com/news/world/united-states-canada/article/3267450/donald-trump-proposes-green-cards-foreign-graduates-us-colleges?utm_source=rss_feed
Tiny Singapore’s chip hub retains a big punch
Reuters BreakingViews
Singapore has become a dominant player in the semiconductor industry, accounting for just over a tenth of global chip output and a fifth of semiconductor-equipment production. However, its neighbour, Malaysia, is beginning to pose a threat to Singapore's dominance in the sector. Malaysia is a vital semiconductor hub for packaging, assembling, and testing and is looking to expand its capabilities in manufacturing, design, and advanced packaging. With lower costs and more land available, Malaysia may be able to attract more investment in the semiconductor industry and potentially overtake Singapore in the future.
https://www.breakingviews.com/considered-view/tiny-singapores-chip-hub-retains-a-big-punch/
Swiss private equity giant Partners Group opens Hong Kong office with eye on rich clients
South China Morning Post
Partners Group has opened an office in Hong Kong, which it plans to use as a gateway to invest in mainland China. The private equity company, based in Switzerland, intends to focus on companies that have not yet listed, including private equity, private real estate, private infrastructure and private debt. Partners Group has 21 offices globally, including operations in Shanghai, Seoul and Tokyo. The Hong Kong office will be headed by veteran fund manager Henry Chui, who is also the head of private wealth for Asia-Pacific.
https://www.scmp.com/business/banking-finance/article/3267389/swiss-private-equity-giant-partners-group-opens-hong-kong-office-eye-rich-clients?utm_source=rss_feed
China’s AI leader Sensetime unveils US$260 million share placement plan, shares slip
South China Morning Post
Chinese AI company SenseTime plans to raise HKD2bn ($260m) in a stock placement at a discount to the market price. The company will issue 1.67 billion new shares at HKD1.20 each, or 9.1% below its last-traded price. The proceeds will be used to enhance the scale of the company's industry AI infrastructure, support the development of generative AI, and provide general working capital. SenseTime is aiming to turn profitable in the next two years and is targeting 100% growth in its generative AI business this year.
https://www.scmp.com/business/markets/article/3267444/chinas-sensetime-slides-7-week-lows-after-plan-place-shares-discount?utm_source=rss_feed
Philippine VP Sara Duterte to ‘go full force on the offensive’ after break from Marcos Jnr
South China Morning Post
Vice-President Sara Duterte has resigned from the cabinet amid disagreements with President Ferdinand Marcos Jr, and is expected to challenge him in next year's midterm elections and the 2028 presidential vote. Duterte is more popular than the president and is also one of voters' top choices to succeed Marcos in 2028. Duterte's alliance with Marcos was shaky within a year of their joint election ticket in 2022, and her resignation gives Marcos "undisputed" power in the cabinet.
https://www.scmp.com/news/asia/southeast-asia/article/3267442/philippine-vp-sara-duterte-go-full-force-offensive-after-break-marcos-jnr?utm_source=rss_feed
Japan focuses on smart cars as automakers fall behind U.S., China
Japan Times
Japan is aiming to catch up with Chinese and US rivals in the development of smart cars by encouraging automakers to incorporate cloud technology into their vehicles. The government has set a target for Japanese companies to account for 30% of the market for "software defined vehicles" (SDVs) by 2030. The Ministry of Economy, Trade and Industry will provide financial support and partner with universities to help develop the necessary technology and skills.
https://www.japantimes.co.jp/business/2024/06/21/companies/software-defined-vehicle-japan/
Chinese builder Road King warns of default risk unless creditors extend debt
South China Morning Post
Chinese developer Road King Infrastructure is warning investors that it may default if they do not accept its proposals to buy back some bonds at a discount and give the company more time to pay the rest of the debt. The firm offered to purchase five offshore dollar bonds at a price of $257.50 to $515 per $1,000 principal amount, with a maximum consideration of $60m. If the tender offers are not successful, the company said it will consider other options, including ways to restructure all of its offshore borrowings.
https://www.scmp.com/business/banking-finance/article/3267507/chinese-builder-road-king-warns-default-risk-unless-creditors-extend-debt?utm_source=rss_feed
Philippines wants China economic ties despite tensions: top official
Nikkei Asia
The Philippines is open to investment and trade with any country, including China, despite growing tensions in the South China Sea. China is currently the Philippines' top trading partner, with $41 billion in combined exports and imports in 2023. The Philippines' economic planning chief, Arsenio Balisacan, stated that the country does not impose unnecessary barriers to trade and investment and that it needs investments and exports for economic growth. Balisacan hopes to separate economy from politics. However, the Philippines recently condemned China's aggressive actions in the South China Sea, where they are in a territorial dispute. The close economic relationship between the two countries has not been affected by the tensions. The Philippines also stressed the need for closer economic ties with Japan, which is already one of its top trading partners and the top net provider of foreign direct investment (FDI) and official development assistance (ODA) to the Philippines in 2023.
https://asia.nikkei.com/Politics/International-relations/South-China-Sea/Philippines-wants-China-economic-ties-despite-tensions-top-official2
Following Putin Visit, Senior US Official Touches Down in Vietnam
Diplomat
Daniel Kritenbrink, the U.S. assistant secretary of state for East Asian and Pacific Affairs, has arrived in Vietnam for an official visit. The timing of his visit, just after Russian President Vladimir Putin's visit to the country, is notable. During Putin's visit, Russia signed several deals with Vietnam and offered to supply fossil fuels to the country. Russia's visit highlighted the limited success of the U.S.'s attempts to isolate Russia, while Vietnam's hosting of Putin shows its commitment to maintaining a balance of relations between superpowers, including the U.S. Kritenbrink's discussions with Vietnam are likely to touch on Putin's visit and Vietnam's position on the Ukraine war.
https://thediplomat.com/2024/06/following-putin-visit-senior-us-official-touches-down-in-vietnam/
Australia urges China to restart defence talks to avoid military incidents
South China Morning Post
Australia's Defence Minister, Richard Marles, has said that Australia wants to restart annual dialogue with China's chief of defence in order to reduce misunderstandings between the two militaries. The matter was raised with China's Premier, Li Qiang, this week. Marles said that Australia wants to resume annual meetings between the two nations' chiefs of defence and defence department secretaries. This would deepen the understanding between the two countries about their behaviours in certain circumstances and potentially avoid unnecessary escalations. This move comes after an incident last month in which a Chinese air force jet dropped flares near an Australian defence helicopter in international airspace over the Yellow Sea.
https://www.scmp.com/news/asia/australasia/article/3267470/australia-urges-china-restart-defence-talks-avoid-military-incidents?utm_source=rss_feed
Japan sanctions China-based firms accused of supporting war in Ukraine
Al Jazeera
Japan has imposed trade restrictions on companies in China, India, Kazakhstan, and Uzbekistan over their alleged support for Russia's war in Ukraine. This is the first time that Japan has targeted China-based firms over their alleged links to the conflict. The sanctions prohibit Japanese companies from exporting goods to the sanctioned firms, which include Hong Kong-based Asia Pacific Links Ltd and Shenzhen-based Yilufa Electronics Limited. Japan's tougher stance against Russia contrasts with most other Asian governments, which have declined to take sides in the conflict. Last week, the US also imposed sanctions on over 300 individuals and firms accused of aiding Russia's war effort, including entities in China, South Africa, the United Arab Emirates, and Turkey.
https://www.aljazeera.com/economy/2024/6/21/japan-sanctions-china-based-firms-accused-of-supporting-war-in-ukraine
Chinese brokerages to merge as industry heeds government’s call to consolidate
South China Morning Post
Western Securities, a medium-sized Chinese brokerage firm, plans to acquire a controlling stake in Guorong Securities, a smaller rival. The deal is part of China's move to consolidate its brokerage industry and create investment banks that can compete with global giants. Guolian Securities and Zheshang Securities have already announced plans to acquire smaller peers, and Huachuang Securities and Ping An Securities are also working on separate merger plans.
https://www.scmp.com/business/china-business/article/3267476/chinese-brokerages-merge-industry-heeds-governments-call-consolidate?utm_source=rss_feed
US drops claims that TikTok misled users over Chinese access in privacy lawsuit
South China Morning Post
The US Justice Department will reportedly drop allegations that TikTok misled US consumers about data security in an upcoming consumer protection lawsuit. The lawsuit, which is being prepared by the Justice Department on behalf of the Federal Trade Commission (FTC), is expected to accuse TikTok of violating child privacy laws, but will no longer include claims that the company failed to inform US consumers that ByteDance employees in Beijing would have access to their data. TikTok is already facing scrutiny over data security and its ties to the Chinese government.
https://www.scmp.com/tech/big-tech/article/3267468/us-drops-claims-tiktok-misled-users-over-chinese-access-privacy-lawsuit?utm_source=rss_feed
U.S. and China held first informal nuclear talks in five years in March
Japan Times
The United States and China have resumed nuclear arms talks after a five-year hiatus. During the talks, Chinese representatives reassured their US counterparts that they would not use or threaten to use nuclear weapons in a conflict over Taiwan. The Chinese representatives stated that they were confident in their ability to win a conventional fight over Taiwan without the need for nuclear weapons.
https://www.japantimes.co.jp/news/2024/06/21/asia-pacific/politics/us-china-informal-nuclear-talks/
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