In today’s briefing:
- US-China: New US Chip Ban Will Have Far-Reaching Consequences Beyond Just Chips
- Xi’s Regime Change in China Creates Dangers for Itself and the World
- India: Opposition Congress Party Struggles To Re-Invent Itself
- Is US tax driving Chinese stocks?
- CX Daily: Why The Yuan Is Suddenly Gaining International Traction
US-China: New US Chip Ban Will Have Far-Reaching Consequences Beyond Just Chips
- The latest American technology sanctions on China show that the two powers are engaged in a struggle in which the time of half-hearted measures is over.
- China faces a formidable task both in maintaining its current progress in fabrication and chip design, while also reconfiguring manufacturing capacity to remove reliance on external equipment and components.
- Non-Aligned countries such as those in Southeast Asia may find their balancing act increasingly hard to maintain. Choosing a side, however, will not be an easy task.
Xi’s Regime Change in China Creates Dangers for Itself and the World
- President Xi has effected a substantive regime change that fundamentally alters how China is governed.
- It presages a shift in how China interacts with, and impacts the rest of the world.
- These developments will increase the risk of policy errors in managing China’s economy and also spells trouble for relations with big powers such as the US.
India: Opposition Congress Party Struggles To Re-Invent Itself
- The opposition Congress Party made its job of returning to power harder by electing an 80-year old loyalist of the Gandhi family to head the party.
- In a nutshell, the credibility of the Congress Party is diminished by the perceived fact that the Gandhi family is not able to truly relinquish control of the party leadership.
- That is not to say that the Congress party will disappear from India’s political map altogether, although regional parties will be key in future general elections.
Is US tax driving Chinese stocks?
- In this part of the world (Hong Kong) there has definitely been a sense over the last few months that, once the CCP conference was out of the way, only then would things start to happen.
- Rightly or wrongly, there was a belief that nobody was prepared to take any risks until the issue of Xi’s third term was resolved.
- We ourselves commented that we believed Xi would indeed secure the third term back in August (see all eyes should be on the 20th Party Congress) in part because at the time there were some quite high profile western analysts asserting that the probability of it not happening was as high as 30%, perhaps not coincidentally leading to some subsequent dramatic social media posts appearing about Xi being under house arrest and there being a faction close to former leader Hu Xintao taking over.
CX Daily: Why The Yuan Is Suddenly Gaining International Traction
Cover Story: Why the yuan is suddenly gaining international traction
China names new top Communist Party leadership for next five-year term
A younger generation is now the majority in Communist Party’s elite body
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