The Friday, July 5 deadline of US president Donald Trump’s $34 billion USD tariffs on Chinese goods has already started causing trouble for American businesses in China. Smaller firms have been struggling with new obstacles in customs, regulations, inspections, and licensing applications. For a more detailed summary and our analysis, read more here.
Following increasing trade tensions between China and the United States, more countries have raised national security concerns surrounding Chinese foreign investment. After the U.S. blocked several deals with China, Germany, Canada, and the U.K. all raised concerns on proposed Chinese investment in their own countries. -Weiting Li
For a detailed summary and our assessment on business impacts, read more here.
Thailand would be seeking $5.5 billion-dollar bids for a high-speed rail project by end of 2018. The winning bidder would build the 157-mile route connecting central and northeastern Thailand with their neighbor to the east, Laos. American infrastructure and energy enterprises interested in investing in Thailand should consider cooperating with Thai companies like energy giant PTT Public Company Limited, urban railway operator BTS Group Holdings, and construction company CH. Karnchang Public Company Limited in-order-to avoid potential government red tape.
On June 28, in the middle of disputes with Chinese telecom giant Huawei on a 5G network, Australia passed a law to prevent foreign interference in the country’s politics and domestic affairs. The new legislation adds 38 new crimes related to foreign interference to the register, including stealing state secrets on behalf of a foreign government, and expands the definition of what can be considered espionage. Read a detailed summary and assessment here.
On Monday, June 25, a Wall Street Journal report indicated that additional Chinese tech investment barriers severely impacted global investors’ confidence. Some restrictions being considered include limiting high-tech exports to China, tightening Chinese investment restrictions on U.S. tech companies, and prohibiting Chinese companies – defined as 25% or more Chinese ownership – from buying American companies involved in industrially significant technology. – Dillon Billingham
On June 18, Google announced that it would be investing $550 million in JD.com, also known as Jingdong. JD is China’s biggest e-commerce company and claims net revenue of 100.1 billion Chinese Yuan (16.0 billion USD) in Q1 2018. As per the investment agreement, JD will join the Google Shopping advertising platform and in return, JD will work with Google on other e-commerce projects in Europe, Southeast Asia and the United States. – Ziqing Zhang
The China Intelligence Briefs are the start of a global initiative to provide context and recommendations to businesses, non-profit organizations, and policy makers who are looking for specific examples of opportunity or disruption from global events. While analyzing the macro problems we often identify specific issues that affect our clients and readers. Identifying both opportunities & challenges allow us to better identify solutions at home and abroad for a wide range of disciplines. In addition to the China Intelligence Briefs, we maintain detailed notes from interviews, overseas trips & business missions, conferences, conventions, and private events. We provide access to these notes and other analytical products for clients and paid subscribers.
SUMMARY On June 18, Jingdong, or JD.com, a Chinese e-commerce company, began testing their prototype drone delivery service, an initiative to reduce transportation costs and delivery times for more remote areas. On the same day, Google announced that it would be investing $550 million to develop new retail solutions using cutting edge AI and logistics…
From June 19th to the 24th, Nepal’s Prime Minister K.P. Sharma Oli met with Chinese President Xi Jinping and Premier Li Keqiang during Oli’s visit in Beijing to discuss Belt and Road Initiatives (BRI). Both sides expressed a willingness to work together to build a railway network across the Himalayan Mountains and increase economic ties through BRI (previously known as the One Belt One Road (OBOR) Initiative) transportation and communication projects.
At the recent Shangri-La Dialogue in the first week of June, United States Secretary of Defense, James Mattis, accused the Chinese occupation in the South China Sea to be a militarization tactic aimed at intimidating and imposing its power in the region. Further, the Pentagon rescinded its invitation to China for the 2018 Rim of the Pacific exercise (RIMPAC). – Dillon Billingham
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