Breakingviews - War for Chinese talent is next trade flashpoint
It's not clear what's behind the latest Foxconn move. In January, Bloomberg reported, opens new tab that Chinese officials had "verbally encouraged" local governments and regulators to curb technology transfers and equipment exports to India and Southeast Asia, where companies like Apple (AAPL.O), opens new tab and even domestic outfits including electric car maker BYD (002594.SZ), opens new tab, (1211.HK), opens new tab are setting up shop. At the time, China's Ministry of Foreign Affairs said the country "treats all countries equally and is open to enterprises" from everywhere.
Either way, this bodes ill for the Cupertino giant and others that are shifting supply chains out of the People's Republic to avoid high tariffs or geopolitical risks – or both. The iPhone-maker has made quick progress; boss Tim Cook reckons "the majority" of all U.S.-bound products will be made in India and Vietnam by the third quarter of this year.
This relocation will be painful for the world's second-largest economy. According to Cook, Apple supports 5 million Chinese jobs, over half of which are in manufacturing. Making it hard for manufacturers like Foxconn to move personnel and equipment might help in the short term, though that risks a response from India.
Over the longer run, technology transfers pose a far greater threat. Take China's stranglehold on rare earths. Countries are racing to develop their own supply chains, but most of the know-how is in the People's Republic. Beijing has already banned the export of certain processing and magnet-production technologies, but it is going further: last month, the Wall Street Journal reported, opens new tab that authorities were compiling a catalogue of Chinese nationals with expertise and restricting their travel.
Officials may be scrutinising artificial intelligence firms, too. Some employees at startup DeepSeek, for instance, are banned from travelling abroad freely, according, opens new tab to The Information in March. It will not be lost on Beijing that some of Silicon Valley's top AI talent, opens new tab, including those at Meta (META.O), opens new tab, are Chinese.
China knows the power of enticing expert workers to its shores. Taiwan has long complained, opens new tab of mainland firms poaching its engineers, including renowned chip engineer Liang Mong Song, who left TSMC (2330.TW), opens new tab in 2017 to be the co-CEO of Shanghai-based rival SMIC (0981.HK), opens new tab. That should give Beijing enough reason to dig a deep trench for the global war for talent.
Follow Robyn Mak on X, opens new tab.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
30 minutes ago
- The Independent
China warns Trump's tariff war will have ‘no winners' as deadline looms
Han Zheng warned, in an apparent jab at Donald Trump, that tariff and trade wars would have no winners even as Beijing and Washington stepped up efforts to resolve their disputes. Addressing the World Peace Forum in Beijing, Mr Han said the multilateral trade system was key to avoiding disruptions in global supply chains. He made the remarks just days ahead of the 9 July deadline for countries on Mr Trump's tariffs list to negotiate trade deals with the US. The Chinese commerce ministry said this week that it hoped the US would continue to meet it halfway and maintain the stability of bilateral trade and economic relations, which nosedived earlier this year when Mr Trump imposed punishing import levies on the country. 'We hope the US side will deeply understand the mutually beneficial and win-win nature of China -US economic and trade relations," the ministry said. It called on Washington to preserve the positive momentum on talks to resolve disputes while warning third countries against "making a deal at the expense of China 's interests' with the US. China had retaliated against the Trump levies by suspending exports of a wide range of critical minerals and magnets. During a round of trade talks in Geneva in May, Beijing committed to removing the restrictions imposed since 2 April but the US said the critical materials were not moving as fast as agreed. A breakthrough came during talks in London the following month when the two sides agreed a framework to implement the Geneva agreement. 'China is currently reviewing and approving eligible export licence applications for controlled items," the commerce ministry said, referring to the rare earth export curbs. In response, the US took actions "to lift a series of restrictive measures against China' and 'informed Beijing about the relevant situation", the ministry said, confirming reports that Washington had resumed exports of chip design software, ethane and jet engines to the Asian giant. "Teams on both sides are stepping up efforts to implement relevant outcomes of the London framework," the ministry said, calling the framework "hard-won". US commerce secretary Howard Lutnick told Bloomberg last month that China was 'going to deliver rare earths to us" and, once they did, the US would 'take down our countermeasures". Thanks to this trade truce, China is not at risk of being hit with higher levies when the 90-day pause on the implementation of Mr Trump's tariffs ends next week. But Mr Trump's trade deals with the UK and Vietnam suggest China may remain an indirect target, according to China Economics head Julian Evans-Pritchard. "It seems that Trump is keen to crack down on the rerouting of Chinese exports via third countries, which has diminished the effectiveness of US tariffs," Mr Evans-Pritchard told Reuters.
Geeky Gadgets
42 minutes ago
- Geeky Gadgets
A Complete Overhaul: iOS 26 Transforms Your iPhone Camera Experience
Apple has unveiled a fantastic update to the iPhone camera app with iOS 26, blending a minimalist design with advanced functionality. This redesign emphasizes simplicity, usability, and a sleek aesthetic, making it easier for you to capture high-quality photos and videos. The update not only enhances the user experience but also hints at future innovations, signaling a new chapter in mobile photography and videography. The video below from AppleDsign gives us more details on the new camera in iOS 26. Watch this video on YouTube. Streamlined Interface: Simplicity at Its Core The iOS 26 camera app introduces a refined two-mode layout, focusing on Photo and Video modes as the primary options. Other features, such as Slow-Mo, Time-Lapse, and Cinematic, are now accessible through intuitive swipe gestures, reducing visual clutter and allowing seamless navigation. This approach ensures that you can quickly switch between modes without disrupting your creative process. A key highlight of the redesign is the 'liquid glass' dynamic interface, which enhances both the app's visual appeal and usability. This fluid design creates a cohesive experience, allowing you to focus on capturing the perfect shot without unnecessary distractions. The interface adapts dynamically, making sure that essential tools are always within reach. Advanced Photo Features for Greater Precision iOS 26 introduces a suite of new tools designed to give you greater control over your photography. Settings such as resolution, aspect ratio, and exposure, which were previously buried in menus, are now easily accessible within the app. This improvement allows you to make quick adjustments to key parameters, making sure a smoother and more efficient workflow. One of the most exciting additions is the 3D photo feature, which enhances depth and detail in your images. This feature creates a sense of immersion, making landscapes, portraits, and other scenes feel more lifelike. By adding a new dimension to your photography, the 3D photo tool enables you to capture moments with unprecedented realism. Upgraded Video Capabilities For video enthusiasts, iOS 26 delivers a range of notable enhancements. Adjusting resolution and frame rate is now more intuitive, with these options integrated directly into the interface. Whether you're shooting in 4K resolution or experimenting with cinematic frame rates, these settings are just a swipe away, making the app more user-friendly for creators of all skill levels. The introduction of the Action mode is a standout feature, designed to stabilize footage during movement. This tool ensures smoother, professional-quality videos, even in dynamic or fast-paced environments. Additionally, settings like filters and aspect ratio adjustments can now be accessed with a simple swipe-up gesture, streamlining the editing process and enhancing usability. Centralized Controls for a Cleaner Experience Apple has reorganized the camera app's controls to improve accessibility and reduce complexity. Features such as flash, filters, and aspect ratio adjustments are now centralized within the interface, eliminating the need to navigate through multiple menus. This decluttered approach ensures that you can focus on capturing the moment rather than searching for settings. The redesigned layout also incorporates context-sensitive controls, which adapt based on the mode you're using. For example, video-specific tools are highlighted when in Video mode, while photography tools take precedence in Photo mode. This intelligent organization enhances efficiency and ensures that the tools you need are always at your fingertips. Speculation About 8K Video Recording Although Apple has not officially confirmed it, the redesigned interface and enhanced resolution controls suggest the potential for 8K video recording in future updates. This feature, if introduced, would represent a significant leap forward in mobile videography, allowing for ultra-high-definition footage with exceptional clarity and detail. The inclusion of such a capability would further cement the iPhone's reputation as a leader in mobile video technology. Balancing Simplicity and Innovation The iOS 26 camera app exemplifies Apple's commitment to delivering a user-friendly experience without compromising on functionality. By simplifying navigation, centralizing controls, and introducing innovative features like 3D photos and Action mode, this update enables you to capture stunning visuals with ease. The modern design, combined with forward-thinking enhancements, sets a new standard for mobile photography and videography, making sure that the iPhone remains at the forefront of creative technology. Master iPhone camera redesign with the help of our in-depth articles and helpful guides. Source & Image Credit: AppleDsign Filed Under: Apple, Apple iPhone, Top News Latest Geeky Gadgets Deals Disclosure: Some of our articles include affiliate links. If you buy something through one of these links, Geeky Gadgets may earn an affiliate commission. Learn about our Disclosure Policy.
Telegraph
an hour ago
- Telegraph
China to start paying families to have babies
China will pay families to have children in an attempt to combat the country's declining birth rate. Xi Jinping's government will give parents 3,600 yuan (£367) a year per child until they are three years old under plans that will come into force this year, according to Bloomberg News. It comes amid concerns that China will not be able to care for its ageing population unless a baby boom creates a new generation of future workers who can pay taxes. Demographic decline also threatens to be a drag on economic growth. China's birth rate reached a record low of 6.39 births per 1,000 people in 2023, down from 6.77 births in 2022. That same year, India overtook China to become the world's most populous country. In 2023, China suffered the largest population decline since 1961, when the Great Famine of the Mao Zedong era claimed millions of lives. The population fell for a third consecutive year in 2024, with the number of deaths outpacing births. China is one of the world's most expensive countries to raise a child. A 2023 report by the YuWa Population Research Institute found. The average nationwide cost from birth to 17 was about £59,000, rising to £74,500 to support a child through university. More than 20 administrations in local provinces across the country have already started offering childcare subsidies. Hohhot, the capital of Inner Mongolia, also promised in March to provide 'care' for new mothers by giving them a daily cup of free milk. One-child legacy Authorities are struggling to boost the birth rate after 35 years of a strictly enforced one-child policy, which was only dropped in 2015. President Xi said in 2023 that women must establish a 'new trend of family '. He told China's state-run news agency that the country needed to 'actively cultivate a new culture of marriage and childbearing and strengthen guidance on young people's views on marriage, childbirth and family'. The number of people aged 65 or above makes up more than 14pc of the Chinese population. Without a change in trends, the number of over-60s is the country is forecast to reach 500m by 2050, according to the National Bureau of Statistics. At that point, pensioners would account for nearly 35pc of the population. China is not the first country to experiment with payments to boost ailing birth rates. Russia's Oryol region began offering cash payments of nearly £1,000 to girls as young as 16 who are more than 12 weeks pregnant in an effort to combat a population slump.
