Business
Taiwan Is Safer Than China for Silicon Valley Investment, Says Taiwanese Mayor
Lin Shih-Hsien, mayor of Changhua City in Taiwan, traveled thousands of miles to California in hopes of bringing some of Silicon Valley’s tech companies to invest in his city.
After almost two years of the Sino-U.S. trade war, many U.S. businesses are now leaving China and looking at different countries in search of cheap labor.
“Your technology and investments are safer in Taiwan,” Lin said in an interview with The Epoch Times on Dec. 6.
Lin compared Taiwan and China and asserted that Taiwan has a well-established democracy and rule of law, which would provide better protection to the intellectual property of American companies.
Lin has visited several tech giants in Silicon Valley, including Google, Apple, Facebook, Nvidia, and Applied Materials. During his multi-city tour of California, he also visited the State Capitol in Sacramento.
He hopes his city can build ties with the Golden State’s agricultural industry.
As the trade war between the world’s two largest economies continues, more and more U.S. corporations are moving out of China. Google, Nintendo, and Dell are among them, The Washington Post recently reported.
According to Fortune magazine, the situation of international manufacturers considering moving out of China long predates the trade war because of rising labor costs.
However, the trade war accelerated this process. Fortune reported that a poll released by the American Chamber of Commerce showed that 40 percent of 250 surveyed firms were “considering or have relocated manufacturing facilities outside of China.”
Lin is just one of the society leaders from Taiwan who has seized the opportunity to try to bring the American corporations leaving China to settle in the island nation across the strait from China.
The U.S. Senate unanimously passed the Taiwan Allies International Protection and Enhancement Initiative (TAIPEI) Act in October, intending to strengthen Taiwan’s global standing. A part of the TAIPEI Act calls on the Trump administration to immediately begin negotiations on a U.S.-Taiwan free trade agreement.
Following the…
Business
Russia’s Booming Economy is Straining a Vital Trading Route with China
Russia’s railway industry is experiencing a significant downturn, with a nearly 30% investment cut and a 5% freight volume decline, complicating trade with China amidst the economic impacts of the Ukraine war.
Downward Trend in Russia’s Railway Industry
Russia’s railway industry is currently experiencing a significant downturn, largely due to the impacts of the ongoing conflict in Ukraine. According to MMI Research, this sector is facing its biggest slowdown since the Great Financial Crisis, with freight volumes dropping by 5% in the first 11 months of 2024. The war-driven economy has hindered trade, particularly with China, which heavily relies on rail transport.
Investment Cuts and Economic Consequences
Investment in Russia’s railways is set to decrease by almost 30% next year, dropping to 890 billion rubles (approximately $8.5 billion). This reduction is attributed to high interest rates, currently at a record 21%, which further complicate financing options. The state-owned Russian Railways is reconsidering future investments, indicating potential cuts by another third through 2030.
Challenges Affecting Trade with China
The decline in rail capacity poses significant challenges for Russia’s trade with China. As Western sanctions push Russia to diversify its trade routes, rail transport has become increasingly vital for moving goods. However, supply bottlenecks, exacerbated by the need to transport war-related materials, threaten to disrupt this crucial trading relationship further.
Source : Russia’s overheated economy is squeezing one of Moscow’s key trading channels with China
Business
Democrat Claims Musk is Undermining Spending Bill Due to China Restrictions – The Hill
A Democrat claims Elon Musk influenced the reduction of a spending bill due to its restrictions on China, suggesting his actions impacted the legislation’s progress and funding allocation.
Allegations Against Musk
A prominent Democrat has accused Elon Musk of deliberately sabotaging a significant spending bill in response to China-related restrictions. This accusation comes amid ongoing tensions between the U.S. and China, particularly regarding technology and trade policies. The claims suggest that Musk’s influence is affecting critical legislative processes, raising concerns among lawmakers about foreign influence in American politics.
Implications for Legislation
The potential ramifications of Musk’s alleged actions could be significant. As a major player in the tech industry, his decisions can sway public opinion and impact the economy. Lawmakers fear that if influential figures like Musk oppose necessary legislation, it might hinder efforts to address vital issues such as national security and economic stability.
Political Reactions
The controversy has sparked debates among both Democrats and Republicans, highlighting the intersection of technology and politics. Many are demanding greater transparency and accountability from tech giants. As the situation unfolds, lawmakers may need to reassess their strategies to ensure that essential legislation moves forward uninterrupted.
Source : Democrat accuses Musk of tanking spending bill over China restrictions – The Hill
Business
HSBC Chairman to Head Key UK Business Delegation to China
HSBC Chairman Mark Tucker will lead a UK business delegation to China next month to boost trade and investment, amid concerns over national security and improving UK-China relations.
HSBC Chairman Leads UK Delegation to China
HSBC Chairman Mark Tucker will lead a pivotal British business delegation to China next month, marking the first significant visit since 2018. The trip aims to enhance Chinese investment in the UK, guided by Chancellor Rachel Reeves. Tucker, a seasoned financier with extensive Asia experience, is regarded as essential in resetting UK-China relations.
Reviving Economic Dialogue
Tucker will accompany senior bankers in seeking to rejuvenate trade, specifically focusing on financial services. Although there are apprehensions among some UK lawmakers regarding national security threats posed by closer ties to Beijing, the UK Treasury spokesperson confirmed Chancellor Reeves’ upcoming discussions on economic cooperation in Beijing.
A Shift in UK-China Relations
Since suspending most dialogues following China’s imposition of a national security law in Hong Kong, UK-China relations have soured. Nevertheless, the Labour government is prioritizing improved ties with China, emphasizing investment opportunities. Reeves asserts the necessity of a pragmatic approach to benefitting national interests amid ongoing concerns voiced by some lawmakers about security risks.
Source : HSBC Chairman to lead pivotal UK business delegation to China
- Russia’s Booming Economy is Straining a Vital Trading Route with China
- Democrat Claims Musk is Undermining Spending Bill Due to China Restrictions – The Hill
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