Chinese companies have invested over $100 billion in overseas clean energy technology projects since 2023, aiming to bypass growing trade barriers, according to a report by Australian research group Climate Energy Finance (CEF). China, the world’s largest producer of solar panels, lithium batteries, and electric vehicles, has seen its exports face steep tariffs, particularly from the US and Canada. The European Union is also considering similar tariffs to protect domestic industries from an influx of cheaper Chinese-made products.
Chinese firms like electric vehicle giant BYD and battery maker CATL have responded by expanding production abroad, with BYD building a $1 billion plant in Turkey and CATL planning factories across Europe. These investments are largely driven by the need to avoid punitive tariffs, including a proposed 40% EU tariff on Chinese electric vehicles. Despite China’s dominance in clean energy, concerns have emerged that it could oversupply the global market, driving down prices and undercutting competitors.
The surge in Chinese investment comes as the country faces increasing pushback from Western nations, who argue that Chinese products are unfairly flooding their markets. Beijing, however, insists that such restrictions will slow global efforts to combat climate change, emphasising the importance of affordable clean energy solutions. With China expected to have surplus production capacity by 2030, these overseas investments will play a critical role in finding new markets.
China has announced new regulations on network data security management, representing a significant step forward in its efforts to govern data processing activities effectively. Scheduled to take effect on 1 January 2025, these regulations establish a comprehensive framework that ensures organisations comply with legal standards and adopt best practices in data handling.
The regulations aim to bolster compliance and accountability across various sectors by clearly defining expectations for network data processing and fostering a safer digital environment. Additionally, they refine mechanisms for managing sensitive data, ultimately enhancing overall governance in this vital area. A primary focus of these regulations is the protection of the rights of individuals and organisations, guaranteeing that personal information is handled with the utmost care.
Moreover, China has introduced explicit guidelines for cross-border data transfers, recognising the complexities of international data flows in today’s interconnected economy. These regulations specify the conditions under which personal information can be shared with overseas entities, striking a balance between data security and global business and cooperation facilitation.
Furthermore, they impose rigorous obligations on internet platform service providers and third-party entities, mandating adherence to stringent data protection standards. These regulations cultivate a culture of responsibility in data management practices by holding service providers accountable for their data protection efforts. Overall, this comprehensive regulatory framework addresses critical issues of individual rights, national security, and global data flow, significantly enhancing data security management in China.
Former Chinese finance minister Lou Jiwei has raised concerns about cryptocurrency’s potential to destabilise the global financial system during a speech at the 2024 Tsinghua Wudaokou Chief Economists Forum in Beijing. Lou pointed out the risks associated with the volatility of crypto assets, particularly their role in money laundering and threats to anti-terrorism financing efforts. His comments come as cryptocurrencies continue to attract attention for their potential to impact financial stability.
Lou highlighted the US’s recent policy shift towards crypto, particularly the approval of spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC). He urged Chinese policymakers to take note of these global developments and adapt strategies accordingly, stressing that understanding international trends is key to China’s digital economic progress.
Despite China’s 2021 ban on Bitcoin mining and trading, Lou noted that the country still dominates the Bitcoin mining space, controlling over 55% of the global BTC network. However, this stronghold is starting to wane, with US-based mining pools now managing about 40% of global Bitcoin mining operations.
China and Africa cooperate to enhance digital infrastructure, which has emerged as a cornerstone of their evolving economic partnership. Over the past decade, substantial investments from Chinese enterprises have facilitated the construction of essential digital frameworks across Africa.
That includes initiatives such as laying extensive fibre optic cables, establishing robust 5G networks and creating data centres that ensure high-speed connectivity. As a direct consequence of this collaboration, millions of people are now connected, and local economies are being transformed through expanded e-commerce opportunities. Notably, the surge in digital trade has opened new avenues for economic growth in African nations, attracting vital investments and fostering entrepreneurship.
Moreover, Chinese companies have played a crucial role in this transformative process by offering technical support, financial backing, and infrastructure development. Consequently, these efforts have contributed to a vibrant marketplace where an increasing number of online shoppers can access a diverse range of goods and services. Additionally, efforts to promote sustainable development are evident in the improvements to service trade and the establishment of resilient financial infrastructures. By leveraging advancements in digital technology, the partnership optimises sectors such as transport and tourism, enhancing operational efficiency and user experiences.
Why does this matter?
Furthermore, as financial technology (fintech) rapidly evolves, there is a focus on bolstering the stability of financial systems in African countries. By harnessing technologies like blockchain, IoT, and AI, Chinese financial institutions collaborate with local partners to create innovative service models, addressing financial risks and fostering an investment-friendly environment. Through initiatives like the Belt and Road Initiative, both regions are committed to advancing digital transformation while ensuring economic growth aligns with sustainable practices that benefit future generations.
Semiconductor manufacturers are set to pour a record $400 billion into chip-making equipment from 2025 to 2027, as the global industry association SEMI estimates. This surge is being driven by China, South Korea, and Taiwan, who are ramping up their production capacity in response to US-China trade tensions and soaring demand for AI and memory chips. Investment is expected to jump by 24%, reaching $123 billion in 2025 alone.
China is projected to lead the investment race, committing over $100 billion in the next three years as it strives for self-sufficiency in semiconductor production. South Korea, home to major memory chip producers Samsung and SK Hynix, is expected to spend $81 billion, while Taiwan, led by chipmaking giant TSMC, plans to invest $75 billion. Other regions, including the Americas, Japan, and Europe, are also ramping up investments, driven by government policies aimed at securing semiconductor supply chains.
Leading chip-making equipment suppliers, such as ASML, Applied Materials, KLA Corp, Lam Research, and Tokyo Electron, are set to benefit significantly from this investment boom. By 2027, spending on semiconductor equipment in the US, Japan, and Europe is expected to more than double from 2024 levels as countries push to stabilise semiconductor supply chains for emerging technologies.
Uber Technologies and WeRide announced a partnership on Wednesday to integrate the Chinese self-driving technology firm’s vehicles into Uber’s rideshare platform, beginning in the UAE. This collaboration represents WeRide’s first foray with a global ride-hailing service. This allows Uber to expand its reach beyond China while continuing to incorporate robotaxis into its offerings. Earlier this month, Uber also expanded its partnership with Waymo to roll out robotaxis in Austin and Atlanta, and in August, it teamed up with General Motors’ Cruise to feature autonomous vehicles on its platform beginning next year.
The WeRide partnership is scheduled to launch in Abu Dhabi later this year, following the company’s acquisition of the UAE’s first and only national license for self-driving vehicles, which allows it to test and operate robotaxis on public roads across the country. WeRide had aimed to list its shares in the US, targeting a valuation of up to $5 billion; however, its initial public offering has been postponed as the firm completes the necessary documentation.
Meanwhile, the Biden administration recently proposed restrictions preventing Chinese automakers from testing self-driving cars on US roads, extending to vehicle software and hardware produced by other foreign adversaries, including Russia.
While South Korean memory giants Samsung Electronics and SK hynix experienced a significant sales increase in China during the first half of this year, the report by the Korea Eximbank Overseas Economic Research Institute indicates that South Korea’s reliance on China for critical semiconductor raw materials is also growing. Key materials such as silicon, germanium, gallium, and indium have seen notable increases in demand, with South Korea’s dependence on silicon rising from 68.8% to 75.4% in 2022.
The report emphasises an increasing reliance on rare earth elements, crucial for semiconductor abrasives, and a slight uptick in dependence on tungsten, which is vital for semiconductor wiring. This trend is occurring against the backdrop of export restrictions enacted by the Chinese government on critical minerals such as germanium and gallium, in response to US sanctions. Currently, China dominates the global supply, producing 98% of the world’s gallium and 60% of its germanium, underscoring its pivotal role in the semiconductor supply chain.
Dependence on germanium rose significantly by 17.4 percentage points to 74.3% in 2022, and reliance on gallium and indium also increased by 20.5 percentage points to 46.7%. Despite the Chinese government’s export restrictions, local production among major Chinese firms has remained stable. For example, Samsung’s NAND flash facility in Xi’an has boosted its share of the company’s total NAND capacity from 29% in 2021 to 37% in 2023, with expectations to reach 40% this year.
During a visit to Washington, Netherlands’ economy minister Dirk Beljaarts emphasised the significance of China as a trading partner. They advocated for the semiconductor equipment maker ASML to operate with maximum freedom. His discussions with US Deputy Secretary of Commerce Don Graves were focused on enhancing bilateral trade rather than addressing export restrictions, which are not under his jurisdiction.
Beljaarts’ visit comes amid anticipation of expanded US export rules affecting semiconductor sales to China. ASML, a leading supplier to chip manufacturers, recently faced new export license requirements imposed by the Dutch government, influenced by US pressure.
While the US is a crucial ally of the Netherlands, Beljaarts highlighted that ASML’s main markets are in Taiwan, China, and South Korea. He stressed the need to maintain balanced trade relationships, arguing that ‘We have our economy to uphold,’ and expressed pride in ASML as a vital asset for the Dutch economy.
The United Arab Emirates (UAE) President Sheikh Mohamed bin Zayed Al Nahyan is set to meet US President Joe Biden at the White House to discuss deepening cooperation in AI and advanced technology. The UAE, a major oil producer and long-time US ally, has ambitions to build its own tech industry and seeks increased access to American technology. However, US officials are cautious about the UAE’s growing ties with China, which has led to restrictions on certain tech exports.
In response to US concerns, the UAE has taken steps to reduce Chinese influence in its tech sector, including removing Chinese hardware and selling off investments from Chinese companies. These moves came ahead of a $1.5 billion investment from Microsoft into G42, a UAE-based tech firm. Despite concerns, the US sees potential to strengthen AI collaboration with the UAE, which is investing heavily in the field, with a focus on developing its own AI capabilities.
The UAE hopes that its investment in AI will secure its position as a global technology leader, well beyond its oil-producing years. While China also views the UAE as a potential long-term AI partner, Emirati officials have expressed a desire for closer alignment with the US, prioritising transparency and partnership in their AI ambitions.
Canada’s central bank has halted its plans to develop a Central Bank Digital Currency (CBDC), focusing instead on research as other nations like China and Nigeria press ahead. The Bank of Canada initially launched the project in 2017 to explore the potential of a digital Canadian dollar. However, after years of investigation and public consultations, the bank has decided to rethink its approach due to low public interest and security concerns.
A recent survey revealed that 87% of Canadians said they would never use a digital currency, with 92% expressing a preference for traditional payment methods. Major concerns included cybersecurity threats and the privacy of digital transactions. Despite this, the central bank had maintained that the digital dollar would not replace paper currency but serve as a simplified way to make online payments.
While Canada shifts away from its CBDC project, other countries are making progress. China’s digital yuan pilot, for example, has already facilitated nearly $986 billion in transactions, making it the largest initiative worldwide. Global efforts to introduce CBDCs continue to grow, driven in part by geopolitical events and changing payment technologies.
