Huawei beats the U.S. bans
...and Cleverly post-mortem, Guatemala | September 5, 2023
Dear reader:
China is finding ways around the U.S. restrictions on semiconductor and microchip technology. Thatโs the takeaway from a โteardownโ of a new Huawei phone done by TechInsights, a semiconductor research firm, and the topic of our top story today. The firm found that the phone is built using a new chip at the 7-nanometer (nm) process โ in other words, itโs a high-end product, more advanced than many analysts had expected. This wonโt surprise you if youโve been reading our coverage of the growing range of American curbs on sales of high-end tech to China: Several industry experts predicted that the rules will actually spur Chinaโs development of its indigenous semiconductor industry as well as harm companies in the U.S. Itโs not clear if Huawei will be able to make or procure advanced chips at scale. The Chinese government and its companies are masters at faking it till they make it, so the cheering from Chinese nationalists and their supporters about the new Huawei phone might be a bit premature. But with todayโs news that the government is going to inject another $40 billion into its semiconductor sector through a new state-backed investment fund, it is very clear that Beijing is going to throw everything it has at the chip problem. If you want to know more about the global and Chinese semiconductor industries, come to our NextChina Conference 2023, where we will dive deep into this topic with a number of leading specialists. |
Jeremy Goldkorn Editor-in-Chief |
BUSINESS AND TECHNOLOGY
Huaweiโs latest smartphone defies U.S. export restrictions |
Customers try out new Huawei Mate 60 Pro smartphones at the Huawei flagship store in Shanghai, on September 3, 2023. Photo by Liu Xingzhe/VCG via Reuters. |
ย Huawei last Tuesday launched online pre-order sales of its latest smartphone, the Mate 60 Pro, which contains advanced tech that some observers believe shows the Chinese telecommunications company has found ways around U.S. export controls.
The processors in Huaweiโs new phone are not as advanced as those produced by Taiwanese manufacturer TSMC for companies like Apple, but the development still represents an important technological leap in defiance of American efforts to restrict the company, said Paul Triolo, Technology Policy Lead at Dentons Global Advisors ASG, a Washington-based consultancy.
Eduardo Jaramillo |
NEWS BRIEFING
Hereโs what else you need to know about China today:
China plans to inject $40 billion into its semiconductor sector through a new state-backed investment fund, in an effort to become more self-sufficient in its chip industry, Reuters reported, citing two people familiar with the matter. Italian Foreign Minister Antonio Tajani wrapped up his visit to China from September 3 to 5, as his country considers an exit to the Belt and Road Initiative (BRI), Chinaโs global infrastructure project, while trying to avoid angering Beijing. Tajani held talks with Chinese Foreign Minister Wรกng Yรฌ ็ๆฏ and other top officials in Beijing. โWe didnโt achieve great results with the Belt and Road, but that doesnโt matter,โ Tajani told reporters. โWe are determined to move ahead with plans to strengthen our commercial ties.โ Italy became the first G7 country to join the BRI when it signed a memorandum of understanding with China four years ago, sparking sharp criticisms from the U.S. and EU. But now Rome has until the end of this year to withdraw from its 2019 BRI agreement, or have it automatically renewed for another five years. Chinese Premier Lว Qiรกng ๆๅผบ will attend the 18th G20 Summit in New Delhi on September 9โ10, the Chinese Foreign Ministry announced on September 4. It confirms speculation that Chinese President Xรญ Jรฌnpรญng ไน ่ฟๅนณ will skip the meeting, dashing hopes that he would meet face-to-face with U.S. President Joe Biden and Indian Prime Minister Narendra Modi amid fraying ties. China is creating a new government body to shore up private businesses in the latest attempt to bolster its sluggish economic recovery and reinvigorate business confidence. Chinaโs National Development and Reform Commission (NDRC), the countryโs top economic planner, yesterday announced (in Chinese) that it would set up a new private economy development bureau to help monitor the state of the industry, establishing channels for regular communication with private enterprises, and coordinate and draft policies to promote private sector growth. Meanwhile, activity in Chinaโs services sector expanded at the slowest pace in eight months in August, according to the Caixin PMI today. The index dropped to 51.8 in August from 54.1 in July, the lowest reading since December 2022, when people were still confined to their homes under the Chinese governmentโs COVID-zero policy. Hong Kongโs top court partially approved a landmark appeal to recognize same-sex partnerships today, the first time the cityโs highest court has directly addressed the issue of same-sex marriage. The Court of Final Appeal handed a partial victory to jailed democracy LGBTQ activist Jimmy Sham (ๅฒๅญๆฐ Cรฉn Zijiรฉ), who for the past five years has launched a string of legal challenges to fight for the city to recognize his marriage to his partner, whom he wedded in the U.S. in 2013. โThere is no constitutional right to same-sex marriage in Hong Kong,โ the judges wrote in their ruling. But โit does not follow that there cannot be same-sex marriage in Hong Kong.โ Hong Kong does not permit same-sex marriage, despite repeated government appeals. But the city does recognize some overseas marriages or civil partnerships in specific circumstances through tax benefits, spousal visas, and public housing โ largely won through piecemeal court cases over the years. Typhoon Haikui made landfall on Chinaโs coastal regions in east Fujian Province and southern Guangdong Province today, bringing heavy rains and more floods in the latest episode of unrelenting downpours this summer. Chinese state media: The Peopleโs Daily print edition today focuses on Xi Jinpingโs encouragement of technological innovation with stories on the publication of an “in-depth study of Xi’s important exposition on technological innovation,” and on Xi sending โa congratulatory letter to the 2023 China International Smart Industry Expo.โ Xinhua News Agency today leads with a report on Xi meeting with the president of the International Committee of the Red Cross, Mirjana Spoljaric Egger, in Beijing. |
CHINA TIES
A closer look at Guatemala, an important Taiwan ally |
Demonstrators take part in an anti-corruption protest to back President-elect Bernardo Arevaloโs transition in Guatemala City. September 2, 2023. Photo by Josue Decavele, Reuters. |
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Central America, once a crucial area of Taiwanese support, has seen Honduras, Nicaragua, Panama, and El Salvador all switch diplomatic relations from Taiwan to the P.R.C. over the past seven years. Only two remain in the region: Belize and Guatemala.
But bribes, and the hope of keeping goodwill with the U.S., has done some heavy lifting, too.
Could Arรฉvalo get the best out of both worlds? Alex Colville takes a closer look in this weekโs China Ties. |
THE CHINA AGENDA
ASEAN and the G20 |
Diplomats and officials (detailed list at bottom of page) from ASEAN members in Jakarta, Indonesia, July 13, 2023. MAST IRHAM/Pool via REUTERS. |
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From our new weekly preview of upcoming events from September 4โ10: The key event this week is the G20 summit in New Delhi, which Xรญ Jรฌnpรญng ไน ่ฟๅนณ is not expected to attend.
The G20โs not the only thing happening though:
Click through for the full agenda for this week. |
POSTMORTEM ON CLEVERLY TRIP
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FROM THE NEWSBASE
Below are links from our NewsBase to other noteworthy reports published in the last 24 hours from and about China.BUSINESS AND TECHNOLOGY:Economic gloom or boom China versus the dollar Chinaโs secretive talent search Online shopping shuts down brick and mortar locations Semiconductors Auto price war in China Electric vehicles Batteries Chinese businesses look to Hong Kong to expand Exports from China Chinese agency helps assist private businesses Companies turn to Xi Jinping thought Real estate Huawei SCIENCE, HEALTH, AND ENVIRONMENT:The new space race Renewable energy POLITICS AND FOREIGN AFFAIRS:The Communist Party, elite politics, and government Foreign states can now be sued in China Corruption G20 ASEAN Belt and Road South China Sea Who will replace the Dalai Lama? Taiwan Taiwanโs elections Xinjiang U.S.-China competition and tensions Italy Australia Aftermath of Chinaโs ban on Japanese seafood India Myanmar Indonesia Russia Africa SOCIETY AND CULTURE:LGBTQ Food and drink Chess Catholicism WeChat blurs the line between work and home Taoism Chinaโs problem with personal info being leaked ย |
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