Month: May 2023

De-risking trade with China is a risky business

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The contest for word of the year is already over. In the geopolitical category, the winner is “de-risking”. This D-word has moved from obscurity to ubiquity in less than two months. It was the centrepiece of a speech about China made in late March by Ursula von der Leyen, the European Commission president. De-risking was then seized upon by the Biden administration. Then, last week, it was endorsed by a G7 summit. One reason why western leaders have embraced de-risking with such alacrity is that it gets them off a…

Apple supplier Foxconn raises pay and bonus packages for new recruits at world’s largest iPhone factory ahead of next product launch

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Apple supplier Foxconn Technology Group has raised the pay and bonus packages for new recruits working at the world’s largest iPhone factory in Zhengzhou, capital of central Henan province, several months before the US tech giant launches the next generation of its flagship device. From Monday, new employees will be entitled to receive bonuses of up to 3,000 yuan (US$424) for at least 90 days of work at the factory, while drawing an hourly pay of up to 21 yuan, according to a WeChat post on Saturday by Foxconn’s integrated…

Hong Kong court rebuffs effort to dismiss Jimmy Lai national security trial

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Hong Kong’s high court has rejected an attempt by lawyers acting for the jailed pro-democracy activist Jimmy Lai to have his national security trial dismissed. The court ruled on Monday that the argument the trial may appear to be biased had “no merits”, and gave the proceedings, which are scheduled to start in September, the green light. The legal team for Lai, a former media mogul who was arrested during Beijing’s crackdown on pro-democracy protests in 2020, had argued that the fact his trial would be presided over by judges…

Japan threatens to shoot down any North Korean missile that enters its territory

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Japan has threatened to shoot down any projectile posing a risk to its territory after North Korea signalled its intention to launch its first military reconnaissance satellite within the next two weeks. Japan’s defence ministry said on Monday that it had put its ballistic missile defences on alert and was preparing “destructive measures” after Pyongyang made a rare notification through the International Maritime Organization of a satellite launch planned between May 31 and June 11. North Korea last month claimed to have completed work on its first-ever military reconnaissance satellite,…

Temasek cuts pay of employees behind failed $275mn bet on FTX

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Singaporean state investor Temasek cut the pay of staff responsible for its failed $275mn investment in FTX, Sam Bankman-Fried’s cryptocurrency exchange that collapsed last year. Temasek, one of the world’s largest investors, said it was “disappointed” with the investment and the “negative impact on our reputation”, after it was criticised for backing the start-up. The investment constituted 0.09 per cent of its S$403bn (US$298bn) portfolio. “Although there was no misconduct by the investment team in reaching their investment recommendation, the investment team and senior management, who are ultimately responsible for…

The Mystery of the Disappearing van Gogh

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The bidding for Lot 17 started at $23 million. In the packed room at Sotheby’s in Manhattan, the price quickly climbed: $32 million, $42 million, $48 million. Then a new prospective buyer, calling from China, made it a contest between just two people. On the block that evening in November 2014 were works by Impressionist painters and Modernist sculptors that would make the auction the most successful yet in the firm’s history. But one painting drew particular attention: “Still Life, Vase with Daisies and Poppies,” completed by Vincent van Gogh weeks…

Cathay Pacific Struggles With Aftermath of Covid, and China Crackdown

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Few major airlines in the world were hit by the Covid pandemic as hard as Cathay Pacific, the flagship carrier of Hong Kong, or have labored so mightily to recover from it. Its business was decimated by some of the industry’s most expansive flight bans and quarantine requirements. And the pandemic wasn’t the start of Cathay’s troubles. In 2019, when Hong Kong was convulsed by pro-democracy protests, Cathay Pacific was caught in the crossfire with Beijing. Flights were canceled or delayed by airport sit-ins involving thousands of demonstrators, among them…

China Announces Plan to Land Astronauts on Moon by 2030

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China plans to complete a mission to land a person on the moon by 2030, a government official announced on Monday, in the highest-level confirmation of China’s ambitions for a crewed lunar landing. Chinese scientists have previously nodded at a 2030 goal in a less formal capacity; for example, the chief designer of China’s lunar exploration program said last month that a 2030 landing would be “no problem.” “We can clasp the moon in the ninth heaven,” Lin Xiqiang, the deputy director of China’s Manned Space Agency, said at a…

Chinese defence chief Li Shangfu will speak at Shangri-La Dialogue, ministry says

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Washington also said Beijing refused to talk to Austin after the US brought down a suspected Chinese spy balloon flying over its airspace in February, and US military leaders say China is not interested in maintaining the lines of communication that contribute to a stable defence relationship. During last year’s defence conference, after Austin set out America’s vision for the Indo-Pacific, Li’s predecessor, General Wei Fenghe, accused the US of trying to contain and “smear” Beijing. Advertisement Monday’s statement said Li would outline China’s new security initiative during his first…

China developers: the main quake is over but the aftershocks are not

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A year ago the demolition of China’s property sector was well under way. Developers struggled to borrow, home buyers were on strike. This year, sagging financial foundations have been underpinned. The central bank has made about $29bn in loans. Local banks have extended deadlines for borrowers. A bounce in April’s new home prices was a sign of hope. But a surge in new court-ordered liquidations and developer defaults should give investors pause for thought. Another Chinese developer, KWG Group, faced a court-ordered liquidation in Hong Kong earlier this month. It…