After Made in China 2025, are foreign firms at risk of losing tech edge, market share?
With Beijing having spent the past decade finding ways to bolster the nation's technological independence through its 'Made in China 2025' (MIC2025) initiative, European companies with a stake in the world's second-largest economy have watched with growing concern – fearful of becoming further marginalised.
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In the pursuit of China's technological strides – aiming to be a global leader in some sectors, as outlined in MIC2025 plans – foreign companies are sometimes seen as a valuable bridge to more advanced tech. But China's rapid progress has fuelled concerns that foreign firms may be excluded once that complementary edge is gone, the European Union Chamber of Commerce in China has said in a report titled 'Made in China 2025: The Cost of Technological Leadership'.
'Once Chinese companies have comparable technology, market-access restrictions or an inability to compete can lead to a significant loss of market share for foreign companies,' said the chamber's report, released on Wednesday.
Although China has achieved a high degree of self-reliance in only a few sectors, the chamber noted that China has been intent on undoing dependencies on key foreign technology and that it was likely to continue marginalising foreign companies in strategic sectors.
'This will result in a less globalised world, with China further isolated,' the chamber report warned. 'It will also likely continue to trigger external actions that cause more damage to both China's economy and its global standing.'
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The chamber has recommended that China focus on executing existing plans for opening up and attracting foreign investment with clear metrics and accountability practices, according to its annual
European Business in China Position Paper released in September, which showed that European business confidence in China was at an all-time low.
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Asia Times
5 hours ago
- Asia Times
We're hearing financial crisis talk again
Commentators are still buzzing over something unusual that started happening in financial markets a few weeks ago. The anomaly is a sharp increase in yields on long bonds combined with a significant fall in the value of the dollar. You can see it in the illustration above charting the 30-year Treasury bonds yield and the US Dollar Index. To understand why this is unusual, imagine you're an Asian or European investor. An increase in the interest rates available from relatively safe 10- and 30-year US Treasury paper would typically tempt you to buy. With a yield close to 5% in the last several weeks, the 30-year bond would be especially tempting. And you'd be paying less for it; bond prices and yields move inversely. To buy US debt, you and your fellow foreign investors would typically exchange your local currency for dollars. This would tend to push the dollar's value higher. That the dollar instead fell while yields were rising suggests those higher yields didn't tempt you. Rather than buying, some big foreign investors were US debt sellers. Are foreigners now seeing the US as a riskier place to invest? The longer this unusual concurrence of higher bond yields and a weaker dollar continues, the more likely that seems. Commentators are all gloom and doom. The Economist has written about a possible 'dollar crisis.' JPMorgan Chase CEO Jamie Dimon predicts 'a crack in the bond market.' In a new book, Ray Dalio, long thought to be one of the smartest men on Wall Street, sees the US on the verge of an economic 'heart attack.' Many of us tune out such talk; after all, there have been many such forecasts in the past. Yet the long bond-dollar anomaly suggests this time really may be different. It's certainly an issue worth another look. There's a fair consensus that the reason for the foreign investors' reassessment is US policy changes. Start with tariffs. The dollar had been strong when President Donald Trump was elected – 'All Bow Before the Almighty US Dollar' was the headline on a DTN piece of mine last December – and it strengthened further through mid-January. The greenback began its downward trend once investors realized he was serious about big tariffs, which investors see portending slower economic growth and higher inflation. But for the first two months of Trump's presidency, the yield on the 30-year bond was declining with the dollar. It's risen in recent weeks as it became clear that the US government's debt burden will continue to mount even with Republicans controlling the White House and Congress. That the dollar hasn't risen with the yield suggests foreign investors aren't as willing to brush off Washington's fiscal profligacy as they were in the past. They want to be paid more for the risk of being Uncle Sam's creditors. If that is indeed what's happening, it would be a big deal for financial markets. It's worth at least asking the big questions. Is a dollar crisis possible? Could the dollar be dethroned as the world's reserve currency? Foreign investors will play a large role in answering these questions. They own more than $8.5 trillion of US government debt, or more than a quarter of the total. Their sales, unlike those of US investors who turn bearish on long bonds, drag the dollar down with them. A bond-market crash isn't inevitable, to be sure. There are no signs of panic in the market. Investors are just saying it will take higher rates to tempt them to buy. When Treasuries command the desired rates, the buying will put upward pressure on the dollar. The problem is those higher rates will also exacerbate the government's debt problem. Interest payments are already nearing $1 trillion a year and climbing. It's easy to imagine a snowball effect: As the debt burden increases, investors' concerns increase, causing them to demand still higher rates. Or they bail on US bonds, taking the dollar down with them. Again, we're talking possibilities, not inevitabilities. But the risk of possibilities becoming realities is rising. One thing the US still has going for it is that investors' options are limited. As long as the US dollar continues to be the world's reserve currency, foreigners will need dollars; as long as the US has the deepest capital markets, dollar assets will be an obvious parking place. At the moment, there's no currency that can take the dollar's place. The yuan would be an obvious candidate, but China's capital controls make a reserve yuan impossible. The euro is another obvious candidate, but the European Union's financial-assets market is too shallow for the euro to play the reserve role. Though the dollar is likely to remain the reserve currency for a while, foreign investors will likely seek safety in diversification. The dollar's status will continue to be at risk of erosion as long as the US government's debt continues to metastasize. Dollar weakness benefits US exporting industries like agriculture. They may not have as much appetite for it if it's served with a side of financial system chaos. Former longtime Wall Street Journal Asia correspondent and editor Urban Lehner is editor emeritus of DTN/The Progressive Farmer. This article, originally published on June 3 by the latter news organization and now republished by Asia Times with permission, is © Copyright 2025 DTN/The Progressive Farmer. All rights reserved. Follow Urban Lehner on X @urbanize
HKFP
2 days ago
- HKFP
Japanese photographer Miyuki Kume on her decades-long fascination with Made in Hong Kong products
When Japanese photographer Miyuki Kume moved to Hong Kong in late 1993, she fell in love with the city. It was the delicious Cantonese cuisine that first captured her heart, but what kept her in the city for more than three decades was her passion for collecting Made in Hong Kong goods. It all began when Kume started buying ceramic plates and bowls from local shops and markets 'as a simple habit of making myself happy,' the photographer told HKFP. Her work for a Japanese travel magazine had brought her to Lascar Row in Sheung Wan. The outdoor street market, full of antiques, opened Kume's eyes to products and designs she had never seen in Japan before. She began planning little treasure-hunting trips to different areas in Hong Kong, sneaking into narrow lanes 'like a stray cat,' Kume described. However, when she reviewed her collection, she realised that most of the kitchenware she had purchased was labelled 'Made in China.' Knowing that Hong Kong still had a few industrial sites – albeit operating on a much smaller scale than in previous decades – Kume became determined to track down products that were made locally. She was in luck. The photographer first stumbled upon a book by design scholar Matthew Turner, titled Made in Hong Kong: A History of Export Design in Hong Kong. It served as an introductory guide to household items and toys manufactured in Hong Kong for Kume, who developed a habit of checking the label or stamp of each item of interest to see where it was manufactured. It was 'natural' for her to want to find locally made products, Kume said, drawing a comparison to Hongkongers seeking out Made in Japan goods while travelling. 'Hongkongers are used to seeing these household items. As a foreigner, it's easier for me to spot the characteristics of locally made products,' she said. 3,000-piece collection One of the earliest Hong Kong-made products Kume found was a blue-green vacuum flask by Camel. The brand, founded in 1940 and still operating in Kowloon Bay, caught Kume's attention with its colourful designs. She has since begun hunting for unique vacuum flasks produced in Hong Kong. So far, Kume has collected around 300 vacuum flasks from Camel and other local brands such as Gold Coin and Ox Head. But these flasks are only part of her 3,000-piece vintage collection stored at home, which also includes Chinese-made products she collected in the earlier days. As her collection expanded over the years, Kume decided to keep a better record by photographing the items. Her extensive collection eventually led to the publication of her first book, Hong Kong Department Store, in October 2024. The 196-page book is divided into four chapters. The first explores the world of made-in-Hong Kong products; the others focus on household items made by local artisans, unique Made in China products found in Hong Kong, and various items produced in the city during British colonial rule. In addition to showcasing her collection, the book also features stories of local brands and artisans, interviewed by the Japanese photographer herself. To promote her book, she also had an exhibition, held concurrently in two locations in Kowloon from October to November. It highlighted her eclectic collection, from ceramic tea cups and glass flower vases to plastic chairs and enamel basins. Kume, who learned Cantonese through watching television dramas and reading local newspapers, said she spent a lot of time building rapport with the artisans before convincing them to be interviewed. Many of them were very busy, while some had rejected her invitation because they thought she was doing a paid advertisement. After visiting the shops repeatedly, some shop owners were moved by her persistence and agreed to be featured in her book. The book, which is available in Chinese and Japanese, can serve as a guide for Japanese tourists who enjoy shopping for antique goods in Hong Kong, Kume said. She added that she had hoped to include a fifth chapter focusing on Japanese goods from the Showa period that can be found in Hong Kong, but it was left out due to page constraints. East meets West After being a collector for more than three decades, Kume finds it difficult to summarise the characteristics of Hong Kong-made products. The items reflect the 'design of the city,' Kume said, pointing to Hong Kong's unique position as a place where East meets West. She said she was very impressed by Hong Kong artisans who 'digested' designs from all around the world and added their own flair, giving rise to the distinctive local designs and products. 'There is no place in the world that can have access to Eastern and Western goods so easily,' Kume said. One of Kume's favourites, which she said would never be up for sale, is a panda-shaped radio produced by the company Sonix in Hong Kong during the 1960s. The funky, asymmetrical design — using the channel and volume knobs as eyes and featuring a playful smirk — was very 'evocative of the era,' Kume said. Another reason Kume loves vintage Hong Kong-made goods is their durability and the fact that one can often find beautiful pieces at relatively low prices. Kume used to be able to find affordable Made in Hong Kong products in good condition at shops and markets in older districts of the city. In recent years, however, the prices of these items have risen, and instead of searching on the streets, Kume now conducts her treasure hunts online. The photographer once discovered ceramic pieces from Hong Kong in an online shop based in Malta, which came as a total surprise. She later realised that it was due to Malta being part of the Commonwealth, and that Hong Kong-made products can also be found in other countries that were formerly under British rule. Some Hongkongers may still be able to find old products made in the city, handed down from their grandparents or even earlier generations. Kume urged people to hold on to these items, as they will 'disappear' soon. After publishing her first book and hosting a small exhibition last year, Kume has set her sights on writing a sequel. She said she must race against time to interview as many of Hong Kong's old artisans as possible to ensure their oral histories are recorded and passed on to future generations. 'I think it is my responsibility to listen to and document their stories because I have access,' she said. 'Made in Hong Kong' museum She has no plans to retire in the city due to the high rent, the photographer said. Kume, who refused to disclose her age, said she would likely return to her home in Japan in the future to take care of her ageing mother. While she does not intend to relocate in the coming few years, Kume said she would not be able to bring her entire Made in Hong Kong collection with her. This is primarily because Japan is prone to earthquakes, and her ceramics collection would not survive. Thermal flasks, on the other hand, would not be a problem, Kume said. 'I will have a smaller, but more curated collection.' Kume has considered the possibility of donating her collection when she moves back home, but the collector has a bigger dream — to donate her cherished items to a Made in Hong Kong museum. Although museums in the city have hosted exhibitions about locally made products before, just a corner in a museum is 'not enough,' she said. 'I've always thought that Hong Kong should have a Made in Hong Kong museum. The public can donate what they have at home, and we can have everything there. I think we have enough items for an independent museum.'
RTHK
2 days ago
- RTHK
Postecoglou sacked by Spurs despite Europa League win
Postecoglou sacked by Spurs despite Europa League win Ending Tottenham's 17-year trophy drought was not enough to save Ange Postecoglou. File photo: AFP Ange Postecoglou was sacked as Tottenham manager on Friday, just 16 days after the Australian ended the club's 17-year trophy drought by winning the Europa League. Postecoglou led Tottenham to a 1-0 victory over Manchester United in Bilbao to clinch the north Londoners' first European prize in 41 years and secure a place in next season's Champions League. But the Australian paid the price for Tottenham's worst domestic season since they were relegated from the top flight in 1976-77. "Following a review of performances and after significant reflection, the Club can announce that Ange Postecoglou has been relieved of his duties," a statement on Tottenham's official X account said. Exactly two years after he was hired from Celtic, Postecoglou's eventful spell in north London was brought to an end by chairman Daniel Levy. Tottenham lost 22 of their 38 Premier League games to finish 17th in the table, above only relegated trio Leicester, Ipswich and Southampton. "The Board has unanimously concluded that it is in the best interests of the club for a change to take place," the statement said. "Whilst winning the Europa League this season ranks as one of the club's greatest moments, we cannot base our decision on emotions aligned to this triumph." (AFP)
