Original Analysis on Current Events

FAO Global conducts analysis on hundreds of significant events a week that impact the business environment between the U.S., China, and emerging economies in Asia. While most of these assessments are for client and internal use we like to share events that may have been overlooked if you only follow the major media outlets. We send these assessments out via our newsletter.

Highlights you may have missed for the week of April 22-26

Thailand set to be Southeast Asia’s hottest IPO market – Bangkok Post 

Our Take: Thailand has continued to display a stable economic presence despite over a decade of political instability. Western firms find doing business in Thailand to be relatively straight-forward, although there are stark differences in how business is conducted. The law still favors local-businesses in many situations, but litigation is not nearly as common as the United States. Southeast Asia has quickly adopted mobile and digital platforms and many of its leading companies are backed by U.S. currency. Look for unique investment and partnership opportunities with the next wave of IPOs coming from Thailand & greater Southeast Asia. 

The Future of Shopping Is Already Happening in China – Bloomberg 

Our Take: China’s consumer habits are changing rapidly making e-commerce and artificial intelligence (AI) based solutions instant hits. However, like the United States, each generation of Chinese consumer leverages different buying habits. Western companies planning to sell via online portals should anticipate a shift in trends and monitor sales channels closely.  When targeting Generation Z consumers, marketing and sales departments should closely integrate “social shopping” into the consumer experience. With so many options, more and more users are relying on Key Opinion Leaders (KOLs) to introduce new products. Maintaining a lean approach to engaging younger and younger buyers is the key to success in China’s online market place. 

Japan’s Silent Belt and Road is Beating China’s – The Wall Street Journal 

Our Take: Amid the coverage on China’s Belt and Road initiative, it is important not to overlook Japan’s role and weight in terms of global investment. Japan has been keeping pace with China, and the Japan-led Asia Development Bank is a far larger creditor than the China-led Asian Infrastructure Investment Bank. Given the volatility and uncertainty of U.S.-China relations as well as China’s shifting internal policies, firms should be aware that Japan may be a more reliable partner on international ventures. Japan’s global reputation, and its non-threatening investment practices, may allow it to be a more receptive partner for firms of any industry trying to break into foreign markets.  

China Unicom to launch 5G trial network in major cities – China Daily 

Our Take: China’s 5G revolution is not slowing down. The news about China Unicom’s 5G efforts highlight the breathtaking pace of 5G roll-out across China’s major cities. The rapid advancement may cause western products meant to rely on 5G to calibrate their systems to work in China first, providing a win in the run-up to 5G supremacy. 5G wireless hotspots throughout the city will further serve to make Chinese cities some of the most advanced in the world. However, this greater connectivity may create new opportunities for engineers building smart cities, but it may also lead to obscurity by many larger established firms which may not be able to pivot or roll-out production of 5G tech as quickly as they would like. Techology always has winners and losers but one thing is certain, we are going backwards. 

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Analyst Bio’s

Michael Tian: Michael Tian is currently a Junior at Brown University concentrating in International Relations and Economics with a focus on East Asia. Dedicated to understanding the global economy and its effects on inter-state relations, Michael seeks to promote mutual cooperation and foster cultural ties across cultures and space by developing informed and objective publications in both policy and academia. 

Tong Wu: Tong Wu is a volunteer contributor and Georgetown graduate student who writes on U.S.-China business issues. She has experience as a field study consultant with PwC, communications & marketing at Georgetown University, and has previously worked as a freelance writer. 

Brandon Hughes: Brandon is the Senior Analyst and Founder of FAO Global. He served as a government adviser and led military teams in Afghanistan, supported peace keeping operations in Europe, led corporate security teams in Las Vegas, and conducted strategic U.S.-China focused research for the prestigious Carnegie Endowment & Asia Society. Brandon leads FAO Global to conduct cross-border international business ventures between the U.S., China, and emerging markets in Asia.

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