3 January Pingu News Briefing

Happy Tuesday 3 January (^_−)−☆

Starting off, I think by now it has become clearly evident in my attempts to work across timezones and write a briefing I constantly get the date wrong! If you see a wrong date, mention it to me on Twitter!

To the schedule for this week:

• Tuesday: Weekend news

  • CNY Caixin PMI: 49.0 (expected 48.8, previous 49.4)¹

  • German Unemployment Change: -13K (expected +15K unemployment claims)

  • Great Britain PMI: 45.3 (expected 44.7)

• Wednesday: Ukraine Focus

  • US Manufacturing PMI

  • EUR Services PMI

• Thursday: Cyber Focus

  • US ISM Manufacturing PMI

  • Great Britain Composite & Services PMI

• Friday: People’s Republic of China Policy Shifts

• Saturday: Week-end economic data

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1. South Korea asked US for role in managing nuclear weapons
   The shift of deterence with nuclear weapons from a US-centric role to focusing on South Korea would mark a signficant change in the US and South Korean policy on North Korea. The pariah northern state has made a marked change in aggression over the past year, launching 77 missiles in 2022. The policy would include joint planning and joint exercise, while the missiles still belong to Korea.
   Later, however, President Biden did not committ publicly to the plan.
   Bloomberg | Yonhap News Agency | TheKoreaTimes

2. South Korea passes K-Chips act to boost chip manufacturing
   The K-Chips Act passed in late December offers an 8% tax reduction for South Korean companies expanding chip production facilities, in an effort to fight the Chip War and maintain relevancy as a chip-producing nation. Lawmaker Yang Hyan-ja, a leader in South Korea’s chip market, is attempting to widen the legilsation and protection for Korean chip production, largely in attempts to create a third home for chip production outside of the US-China frame.
   Dongda | Bloomberg | Taiwan TechNews (繁體中文)

3. New PRC Foreign Minister Qin Gang offers praise of Americans
   The new Foreign Minister of the PRC, Qin Gang, former top diplomat to the US, offered praise of Americans and ‘their hard-working friendly nature’, to paraphrase. The tone is a stark contrast to previous years of “wolf-warrior” diplomacy which has marked Xi Jinping’s second-term. However, the tone is all that may change as hardline policies and aggressive action towards Taiwan persist. Bloomberg

4. The Philippines President Marcos Jr. set to sign 10 agreements with China
   When President Marcos Jr. visited China this week, he is set to shift the relationship between China and The Philippines into ‘high gear’. This follows Xi securing a third-term in office, and Marcos Jr. not courting China for almost the first year he was in office. During his presidential campaign he was criticised for being a pawn of China and the heir to a corrupt family dynasty resurged. The agreements will include policy on agricultural, fishing, and maritime cooperation. Bloomberg

5. Croatia joins border-free Schengen zone, adopts Euro
   Croatia, the youngest member of the EU, has joined the border-free Schengen zone and adotped the Euro on 1 January, celebrating a journey from the war of independence to reform and jonining the EU. Economically, joining the Schengen zone should boost the tourism industry, which accounts for 20% of Croatia’s economy. | BBC

6. Tesla’s China boss now deputy to Elon Musk
   Tom Zhu now has oversight of Tesla’s assembly plants and sales in North America, EU, and China according to a private promotion which Reuters reviewed. This comes as investors called for more executives following Musk’s wild temperment. Before joining Tesla in 2014, Zhu (a New Zealand passport holder, born in the PRC) advised Chinese contractors working on China’s Africa infrastructure projects. Reuters

7. India drafts regulation of online betting market
   After growing complaints of online gambling addicitions, a new set of regulation has been drafted for India to oversee online gambling markets, setting aside online casinos and card games from video games such as EA’s FIFA, which will be regulated under the sports ministry. Online gambling has persisted as a marketing and gaming strategy after mobile gaming has growin rapidly in India. Bloomberg

1. PMI mid-line is 50, below indicates contraction above indicates growth