China tech will double-down in Southeast Asia 5 Aug 2020 As Washington and New Delhi block Chinese apps, fast-growing markets like Indonesia and Vietnam have gained importance for mainland technology firms. Early movers like Alibaba found limited traction in the region, but the next wave is nimbler, and may enjoy more success.
Corona Capital: PizzaExpress, Aerospace pain 4 Aug 2020 Concise views on the pandemic’s corporate and financial fallout: The UK restaurant chain’s restructuring is not that tasty a meal for creditors; Airplane-parts maker Spirit’s reliance on Boeing’s 737 MAX has it heading into worse turbulence.
WeChat makes bigger brick in anti-China firewall 3 Aug 2020 Tencent’s app is next in line for a White House ban after TikTok. Blocking WeChat, crucial to life and business in the People’s Republic, would protect overseas Chinese from Beijing’s spies, but cut them off from home. That would hasten and deepen the decoupling of the internet.
TikTok learns old lesson about U.S. art of deal 2 Aug 2020 President Trump had significant influence on conversations between Microsoft and TikTok after owner ByteDance’s proposed minority stake in earlier talks posed concerns. On M&A that raises national security worries, Chinese firms will find Uncle Sam is the new poison pill.
Trump’s Venezuela curveball smashes more norms 27 Jul 2020 The U.S. belatedly asked a district court to reverse a decision allowing the forced sale of shares in refiner Citgo – a crown jewel among Venezuela's assets. Despite D.C.’s weak logic and wishful premise, it could muck up the case. There may be broader damage, too.
China’s Huawei holds a 5G trump card 27 Jul 2020 The telecom kit maker’s stack of next-gen wireless patents will be essential as a global standard for 5G emerges. So even as Vodafone and others ditch Huawei hardware, they might end up licensing its intellectual property, and doing so on Chinese terms. That could be punishing.
“America First” mantra is here to stay 22 Jul 2020 President Donald Trump says election rival Joe Biden’s $700 bln "Buy American" plan is policy plagiarism. Both are running partly as economic nationalists. Biden would repair international relations, but he's no fan of globalized supply chains or unfettered trade.
Corona Capital: Movies, Basketball, Tech optimism 21 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: Warner Bros’ indefinite delay of its blockbuster movie “Tenet” spells bad news for the industry; healthy players and good social-media stats give the NBA a boost; Silicon Valley shows a hint of pessimism.
Huawei might starve overseas before it sells 20 Jul 2020 The Chinese telecoms kit maker is under renewed attack from Downing Street to Washington. Founder Ren Zhengfei has mulled divesting intellectual property, but buyers for that, or for overseas handset or network units, are few. Nor will Beijing permit a sale that looks like defeat.
Apple and peers could lose “when in China” shield 16 Jul 2020 The iPhone maker is one of many firms that tailors products to suit China’s demands, recently deleting an app used by Hong Kong protesters. Such decisions could soon be treated by U.S. authorities as foreign lobbying. That would curtail a delicate – and profitable – dance.
Viewsroom: Wall Street, Huawei, Chinese taxpayers 16 Jul 2020 Investment bankers have had a very nice lockdown indeed, says U.S. Editor John Foley. British Prime Minister Boris Johnson backtracks on 5G, delivering his pal Donald Trump a tech victory against China. Meantime President Xi Jinping takes some unusual tax pointers from Uncle Sam.
OPEC maintains illusion of control over oil price 15 Jul 2020 The producer group and allies stuck to plans to hike output, after coordinating a huge cut in April. While that will soothe jittery oil traders, a second virus wave would ruin the calm. And the more prices rise, the harder it will be to stop members pumping what they like.
China can turn the other cheek, for now 9 Jul 2020 The U.S. government slapped sanctions on Chinese officials for abuses of Muslim Uighurs, escalating tensions. Beijing may want to drop a trade deal in retaliation but patience is more useful. Xi Jinping will want threats in his back pocket following the November election.
Viewsroom: Chinese access to U.S. money, Boohoo 9 Jul 2020 Chinese companies’ access to American capital is imperiled for all sorts of reasons, says Hong Kong columnist Robyn Mak. The stingy LBO of New York-listed Sina by its CEO won’t help. Also, British fast-fashion retailer Boohoo’s not-quite dark satanic mills are in the spotlight.
China-UK feud could spill over into nuclear power 7 Jul 2020 The two countries are facing off over Huawei mobile phone kit and Hong Kong. China’s key role in new British nuclear power stations may be the next flashpoint. Unpicking the agreement would upend strategic plans on both sides. But rising tensions suggest a rethink is looming.
India’s war on China apps will have network effect 30 Jun 2020 TikTok and others from Tencent to Alibaba are among those banned on security concerns. It narrows a growth market for Chinese tech and may embolden other governments to close doors. But Beijing has plenty of ways to retaliate, including in pharmaceutical supply chains and more.
Corona Capital: U.S.-China fight, Canada downgrade 25 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: Washington deploys sanctions over Hong Kong, adding to trade and Covid-19 tensions; and a double whammy of the coronavirus and low oil prices costs Canada one of its AAA ratings.
Silicon Valley VCs perform balancing act in China 18 Jun 2020 Covid-19 has boosted delivery, robotics and e-commerce technology. U.S. investors want to back Chinese startups capitalizing on those trends. But firms investing in the People’s Republic risk Washington's ire. The trick is to pair high potential ROIs with a low profile.
China-UK stock link’s glitches go beyond politics 17 Jun 2020 China Pacific Insurance is just the second Shanghai-listed company to offer shares in London, raising $2 bln. Political tension between Britain and the People’s Republic may be a factor. But lack of liquidity and trouble hanging onto foreign investors are the bigger impediment.
Economic arsenals intensify India and China clash 17 Jun 2020 Their first deadly border fight in decades is weightier given deepening commercial ties. Tension is rising there too, however, as India erects barriers to Chinese capital and looks to become a manufacturing rival. The geopolitical and financial battles will feed on each other.