Archive for ‘Semiconductors’

08/04/2020

Internet giant Tencent pledges to invest in Wuhan as city emerges from coronavirus lockdown

  • Wuhan, where the first cases of the novel coronavirus were detected, is ending a 76-day lockdown
  • A day before the lockdown was fully lifted, Tencent announces a slew of initiatives focused on helping to revive the digital industry in the city
Passengers leaving Wuhan city are pictured at the Hankou Railway Station in Wuhan city, central China's Hubei province, on Wednesday morning, April 08, 2020. Photo: SCMP/Simon Song
Passengers leaving Wuhan city are pictured at the Hankou Railway Station in Wuhan city, central China’s Hubei province, on Wednesday morning, April 08, 2020. Photo: SCMP/Simon Song
A day before China lifted a months-long lockdown of Wuhan city, the initial epicentre of the coronavirus pandemic, Chinese internet giant Tencent Holdings pledged to invest in digital government, online education and artificial intelligence (AI) in the city, among other fields.
“During the epidemic, Tencent has been supporting Hubei and Wuhan’s fight against the virus through funds and technology,” the company best known for its gaming business said in a statement posted on Tuesday on WeChat. “In the future, we will also fully support Wuhan’s post-pandemic reconstruction and continue to support the development of Wuhan’s digital industry.”
China’s major tech companies have played a big role in the fight against the coronavirus, and are now playing their part in the economic recovery of Wuhan and other areas that have suffered under extended travel restrictions and business closures.
Last week, China’s biggest e-commerce services providers Alibaba Group Holding
JD.com

and Pinduoduo each announced their own initiatives to help revive sales of farm goods from Hubei as the province emerges from its months-long lockdown.

Popular mobile payments app Alipay also created a dedicated section for Wuhan merchants to allow users to buy from merchants in the city, and offered loans to small local merchants in need of financial support, according to an Alipay statement. Alipay is operated by Ant Financial, an affiliate of Alibaba, which owns the South China Morning Post.
How tech has helped China in its public health battle with coronavirus
23 Mar 2020

Wuhan, an industrial powerhouse for the steel, semiconductors and automotive sectors, is emerging from an unprecedented lockdown which began on January 23 and prevented people from moving in and out of the city.

Since restrictions began easing gradually in late March, business activity has shown signs of recovery: Tencent’s mobile payment platform WeChat Pay recorded a 162 per cent increase in offline transactions in a 10-day period from March 25, compared to the same period the previous month, according to a separate statement by Tencent on Wednesday.

Searches for “work resumption certificates” – which businesses need to submit to local authorities to prove their staff can safely restart work – also increased 320 per cent on Baidu, China’s biggest search engine, in the past month, Baidu said in a report on Wednesday.

Tencent declined to provide specific details regarding the size of its latest investment in Wuhan or a timeline for its implementation, but said in the statement that it will involve closer cooperation with city authorities in the areas of digital government, education, smart mobility, AI and cybersecurity to help the city with its digital industries.

Among these initiatives, it will push ahead with a plan to build a headquarters focusing on digital industries in Wuhan, specifically digitalisation for the government and smart city initiatives.

It will also establish a base in Wuhan for its online education initiatives, set up an AI lab and cybersecurity academy and build a school focusing on smart mobility in collaboration with Chinese carmaker Dongfeng Motor Corporation, the company said in the statement.

Source: SCMP

05/04/2020

As Trump administration debated travel restrictions, thousands streamed in from China

(Reuters) – In defending his strategy against the deadly coronavirus, President Donald Trump repeatedly has said he slowed its spread into the United States by acting decisively to bar travelers from China on Jan. 31.

“I was criticized by the Democrats when I closed the Country down to China many weeks ahead of what almost everyone recommended. Saved many lives,” he tweeted, for instance, on March 2.

But Reuters has found that the administration took a month from the time it learned of the outbreak in late December to impose the initial travel restrictions amid furious infighting.

During that time, the National Security Council staff, the state department and other federal agencies argued about everything from how best to screen for sick travelers to the economic impact of any restrictions, according to two government officials familiar with the deliberations.

The NSC staff ultimately proposed aggressive travel restrictions to high-level administration officials – but it took at least a week more for the president to adopt them, one of the government officials said.

In meetings, Matthew Pottinger, deputy national security adviser and a China expert, met opposition from Treasury Secretary Steven Mnuchin and National Economic Council director Larry Kudlow, said two former NSC officials and one of the government officials involved in the deliberations. The two top aides were concerned about economic fallout from barring travelers from China, the sources said.

Each day that the administration debated the travel measures, roughly 14,000 travelers arrived in the United States from China, according to figures cited by the Trump administration. Among them was a traveler who came from Wuhan to Seattle in mid-January, who turned out to be the first confirmed case in the United States.

On Jan. 22, Trump downplayed the threat posed by the virus, telling CNBC from the World Economic Forum in Davos, Switzerland, “We have it totally under control.”

The battle within the White House over whether and how to stop infected travelers from China lasted nine more days.

On Jan. 31, Trump issued a proclamation barring entry of non-U.S. citizens, other than the immediate family of citizens and permanent residents, who had traveled to China within the last two weeks. The restrictions have since been expanded to many other countries.

It is unclear when the president was made aware of the NSC’s proposal and what prompted his decision to act, but the decision followed the World Health Organization’s declaration the day before that the epidemic was a “public health emergency of international concern.”

U.S. Centers for Disease Control and Prevention officials told Reuters that they contributed to the decision as part of the administration’s newly convened coronavirus task force.

A Treasury Department spokesperson said that Mnuchin “never objected to the decision to restrict flights from China.”

A White House spokesman, Judd P Deere, said: “Any suggestion that Larry Kudlow objected to restricting flights from China to contain COVID-19 and protect the health of the American people is completely false. Larry fully supported the President’s bold decision.”

In a statement, NSC spokesman John Ullyot said that the council’s early meetings about the coronavirus involved great expertise and robust discussion and were professional.

As of April 4, the coronavirus has infected more than 300,000 people in the United States, and killed over 8,000, according to the Reuters coronavirus tracker. The country has more cases than anywhere else in the world.

The sources for this story, former NSC members, public health officials and others involved in, or briefed on, the administration’s response, spoke on condition of anonymity because they were not authorized to comment on the record.

POPPING A FLARE

The NSC, which operates within the White House to coordinate policies and recommendations involving national security across agencies, was at the center of the effort to formulate the early response to the outbreak.

The council was first notified of the outbreak on the morning of Dec. 31, according to one of the government officials involved, when an NSC official was forwarded an email from a Department of Health and Human Services (HHS) attache in Beijing that had been sent to senior HHS officials the night before.

The “pop-a-flare” notice, as it is known, described strange cases of pneumonia that could not be definitively traced to seasonal flu, said the government official, who saw the message. The email said the Chinese would soon be notifying the World Health Organization, the official said.

On Jan. 3, Dr. Gao Fu, head of China’s disease control agency, informed his U.S. counterpart, Dr. Robert Redfield, director of the CDC, in an emotional telephone call that the outbreak was growing out of control, according to the same federal official and a former NSC official. Both said they had been informed of the details.

Gao’s agency did not respond to a request for comment.

Ullyot, the NSC spokesman, disputed the timeline, saying the council did not learn of the coronavirus outbreak until Jan. 3. The CDC, a part of HHS, confirmed to Reuters that it learned of an outbreak in late December and that the call with Gao occurred Jan. 3.

Health agencies were scrambling to gather information, the two government officials involved in the deliberations said. Questions went back to the U.S. Embassy in Beijing, and experts across the government: How many travelers arrive daily from Wuhan, China, the initial site of the outbreak? What U.S. airports do they fly into? What would be the pros and cons, including costs, of any travel restriction?

In discussions with the NSC, public health officials, including from HHS and CDC, initially argued for the targeted approach of medically screening travelers from Wuhan, as they sifted through information about where and how quickly the virus was spreading, one of the government officials involved said. Public health officials tend not to favor border closures because they can restrict medical response and divert limited resources.

The NSC’s Pottinger was pushing hard for strict travel restrictions – expressing doubt about the truth of the data China was releasing, according to the official.

There was “a lot of yelling, a sign of frustration,” said a former NSC staffer who was not in the meetings but got messages from colleagues in attendance expressing dismay. The person described the messages but did not share them with Reuters. The two current federal officials confirmed the acrimony.

The NSC struggled to reconcile conflicting viewpoints, the two government officials involved said.

The debate delayed the screening of travelers from China by at least a week, one of the officials said. CDC officials ultimately announced enhanced medical screenings for travelers from Wuhan at three international airports, in Los Angeles, San Francisco and New York’s John F. Kennedy, on Jan. 17, expanding them to 20 U.S. airports by Jan. 28.

At one point, during a meeting, Pottinger snapped at health officials that their approach “really has to take a step back,” so that national security interests could shape the response, the official said.

The CDC declined to comment on the debate.

Some former NSC officials who spoke to Reuters traced what they saw as an ineffective response by the council in part to structural changes in 2018 in which former National Security adviser John Bolton had folded the council’s Global Health Security and Biodefense directorate into a larger operation, with the result that pandemic planning was not as great a priority. Others said that, under Bolton, the NSC worked effectively on biopreparedness, but after he departed it lost a number of important experts.

NSC spokesman Ullyot rejected as false the suggestion that the council lacked expertise. The council is staffed by officials with “extensive experience in virology, infectious disease epidemiology, global health security, public health, and emergency response,” he said.

The NSC’s own public health experts were involved in the discussions from the beginning, advocating “early and often” for traveler screening and raising the issue of banning flights from Wuhan, he said.

While the conflict soured the interactions, one of the government officials involved said, data soon emerged that led the health agency officials to agree with Pottinger: A travel restriction for all of China was needed. They saw that there were thousands of travelers arriving daily from Wuhan’s Hubei province to the United States, as well as a rising number of Covid-19 cases reported by the Chinese government beginning in mid-January, the source said.

In its statement to Reuters, the CDC did not directly address what led to its ultimate decision to support the travel restrictions.

By Jan. 24, the staff of the NSC had proposed restricting flights from China, said the government official involved in the deliberations. But as Pottinger met with deputies from other cabinet-level agencies, the recommendation met with resistance because of concerns about spooking the markets and scaring the public, three sources with knowledge of the deliberations told Reuters.

STILL DIVIDED

With opinions still divided, the matter went to top White House aides, at which point Treasury Secretary Mnuchin and National Economic Council director Kudlow argued strongly against the travel restrictions, said two former NSC officials and the government official involved in the deliberations.

In addition to the impact on the stock market, the two top aides expressed concern about the supply chain for everything from semiconductors to ingredients for pharmaceuticals, said one of the government officials involved in the deliberations.

Pottinger was “pleading with Mnuchin and others” to stop travelers from coming, the former NSC official said.

By then, the first known patient in the United States – a man in his 30s who had traveled from Wuhan to Seattle on Jan. 15 – tested positive for the coronavirus disease, COVID-19.

He had slipped through travel screenings because his trip had been broken up, so the Wuhan origin of his trip had not been obvious to customs agents, said the government official with knowledge of the deliberations.

At the World Economic Forum in Davos, Switzerland, President Trump told CNBC on Jan. 22: “It’s one person coming in from China, and we have it under control. It’s going to be just fine.”

On Jan. 29, the Council of Economic Advisers, which advises the president on economic policy, presented an analysis describing a worst-case scenario of what a pandemic and travel restrictions could do to the economy, according to one of the government officials involved in the deliberations, who read it. The report supported Kudlow and Mnuchin’s arguments against such restrictions and “scared everyone,” the source said.

The next day, at an afternoon meeting of the White House’s newly formed coronavirus task force, as well as other attendees, travel restrictions were still being debated, according to the government official involved in the deliberations and a former NSC official who learned of the meeting from former colleagues.

During the meeting, Mick Mulvaney, then President Trump’s chief of staff, entered the room, telling a smaller group, including Pottinger: “The president wants to see you now,” according to the official involved in the deliberations and the former NSC officials.

Mulvaney referred questions to the White House, which did not respond.

Trump issued the order the next day. By then, the novel coronavirus was already carving a lethal path through a Seattle nursing home.

Source: Reuters

04/10/2019

South Korea’s Samsung closes its last smartphone factory in China

  • ‘Difficult decision to cease operations’ at plant in Huizhou taken to ‘enhance efficiency’, company says
  • Firm’s market share in China has dwindled to near insignificance as competitors like Huawei and Xiaomi have taken upper hand
Samsung said operations at its last factory in China ended last month. Photo: Reuters
Samsung said operations at its last factory in China ended last month. Photo: Reuters
Samsung Electronics

said on Friday it has ended the production of smartphones in its last factory in China.

Operations at the plant in the south China city of Huizhou, Guangdong province, ended last month, it said in an email.
The company made “the difficult decision to cease operations of Samsung Electronics Huizhou” in order “to enhance efficiency” in its manufacturing, it said.
Samsung’s market share in China has dwindled to near insignificance as competitors like Huawei and Xiaomi have taken the upper hand. It once had 15 per cent of China’s smartphone market.
Samsung once had a 15 per cent share of China’s smartphone market. Photo: AFP
Samsung once had a 15 per cent share of China’s smartphone market. Photo: AFP
The South Korean giant has moved a large share of its smartphone production to Vietnam and closed a factory in northeastern China’s Tianjin last year.

“The production equipment will be reallocated to other global manufacturing sites depending on our global production strategy based on market needs,” the statement said.

Samsung is the world’s biggest manufacturer of semiconductors and smartphones and a major producer of display screens. But the flagship of South Korea’s largest conglomerate is currently weathering a spell of slack demand for computer chips.

Like other South Korean electronics makers, it also is facing the impact of tightened Japanese controls on exports of hi-tech materials used in semiconductors and displays.

On Wednesday, Sony said it was closing its Beijing smartphone plant and would only make smartphones in Thailand.

But Apple still makes major products in China.

“In China, people buy low-priced smartphones from domestic brands and high-end phones from Apple or Huawei,” Park Sung-soon, an analyst at Cape Investment & Securities, said.

“Samsung has little hope there to revive its share.”

Samsung’s factory in Huizhou was built in 1992, according to the company. South Korean media said it employed 6,000 workers and produced 63 million units in 2017.

Samsung manufactured 394 million handsets around the world in 2107, according to its annual report.

Source: Reuters

23/02/2019

Trump says he’s inclined to extend China trade deadline and meet Xi soon

WASHINGTON (Reuters) – President Donald Trump said on Friday there was “a very good chance” the United States would strike a deal with China to end their trade war and that he was inclined to extend his March 1 tariff deadline and meet soon with Chinese President Xi Jinping.

“I think that we both feel there’s a very good chance a deal will happen,” Trump said.

Liu agreed there had been “great progress”.

“From China, we believe that (it) is very likely that it will happen and we hope that ultimately we’ll have a deal. And the Chinese side is ready to make our utmost effort,” he said at the White House.

The Republican president said he probably would meet with Xi in March in Florida to decide on the most important terms of a trade deal.

 

Optimism that the two sides will find a way to end the trade war lifted stocks, especially technology shares. The S&P 500 stock index reached its highest closing level since Nov. 8. Oil prices rose to their highest since mid-November, with Brent crude reaching a high of $67.73 a barrel. [.N] [O/R]

CURRENCY AGREEMENT

Trump and Treasury Secretary Steven Mnuchin said the two sides had reached an agreement on currency. Trump declined to provide details, but U.S. officials long have expressed concerns that China’s yuan is undervalued, giving China a trade advantage and partly offsetting U.S. tariffs.

Announcement of a pact aimed at limiting yuan depreciation was putting “the currency cart before the trade horse,” but would likely be positive for Asian emerging market currencies, said Alan Ruskin, global head of currency strategy at Deutsche Bank in New York.

“How can you agree to avoid excessive Chinese yuan depreciation or volatility if you have not made an agreement on trade that could have huge FX implications?” Ruskin asked in a note to clients.

In a letter to Trump read aloud by an aide to Liu at the White House, Xi called on negotiators to work hard to strike a deal that benefits both country.

Trump said a deal with China may extend beyond trade to encompass Chinese telecommunications companies Huawei Technologies and ZTE Corp.

The Justice Department has accused Huawei of conspiring to violate U.S. sanctions on Iran and of stealing robotic technology from T-Mobile US Inc.

Chinese peer ZTE was last year prevented from buying essential components from U.S. firms after pleading guilty to similar charges, crippling its operations.

MEMORANDUMS NO MORE

Trump appeared at odds with his top negotiator, U.S. Trade Representative Robert Lighthizer, on the preliminary terms that his team is outlining in memorandums of understanding for a deal with China. Trump said he did not like MOUs because they are short term, and he wanted a long-term deal.

“I don’t like MOUs because they don’t mean anything,” Trump said. “Either you are going to make a deal or you’re not.”

Lighthizer responded testily that MOUs were binding, but that he would never use the term again.

Reuters reported exclusively on Wednesday that the two sides were drafting the language for six MOUs covering the most difficult issues in the trade talks that would require structural economic change in China.

Negotiators have struggled this week to agree on specific language within those memorandums to address tough U.S. demands, according to sources familiar with the talks. The six memorandums include cyber theft, intellectual property rights, services, agriculture and non-tariff barriers to trade, including subsidies.

An industry source briefed on the talks said both sides have narrowed differences on intellectual property rights, market access and narrowing a nearly $400 billion U.S. trade deficit with China. But bigger differences remain on changes to China’s treatment of state-owned enterprises, subsidies, forced technology transfers and cyber theft of U.S. trade secrets.

Lighthizer pushed back when questioned on forced technology transfers, saying the two sides made “a lot of progress” on the issue, but did not elaborate.

The United States has said foreign firms in China are often coerced to transfer their technology to Chinese firms if they want to operate there. China denies this.

The U.S. Chamber of Commerce on Friday urged the U.S. government to ensure the deal was comprehensive and addressed core issues, rather than one based on more Chinese short-term purchases of goods.

China has pledged to increase purchases of agricultural produce, energy, semiconductors and industrial goods to reduce its trade surplus with the United States.

China committed to buying an additional 10 million tonnes of U.S. soybeans on Friday, U.S. Agriculture Secretary Sonny Perdue said on Twitter. China bought about 32 million tonnes of U.S. soybeans in 2017. The commitments are a “show of good faith by the Chinese” and “indications of more good news to come,” Perdue wrote.

China was the top buyer of U.S. soybeans before the trade war, but Beijing’s retaliatory tariffs on U.S. soybeans slashed business that had been worth $12 billion annually.

Source: Reuters

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