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Tensions between the U.S. and China have escalated as the U.S. imposes a ban on Huawei's AI chips, citing national security concerns, despite a recent trade truce. Beijing condemned the ban as an attempt to suppress its tech industry, while analysts suggest it reflects U.S. anxiety over China's advancing AI capabilities. In response, China is focusing on self-sufficiency and regional influence, indicating that the tech and trade wars are far from resolved.
Huawei Cloud is accelerating AI adoption in the Asia Pacific by signing cooperation MoUs with Silverlake and GlobeOSS, and hosting the 2025 Asia Pacific Partner Conference, which gathered over 500 partners. The company emphasizes building a robust ecosystem to enhance competitiveness and drive growth through strategic partnerships and localized solutions. With significant investments in AI-native cloud services and infrastructure, Huawei Cloud aims to empower enterprises and foster innovation across key industries in the region.
Chinese exports surged by 8.1% year-on-year in April, reaching a record USD 315.7 billion, despite a 21% drop in exports to the US due to increased tariffs. Exports to ASEAN and the EU rose significantly, indicating resilience in global trade, which may support the CNY against depreciation in the coming months.
A2D Ventures has partnered with India’s We Founder Circle to foster cross-border innovation and investment opportunities for startups in Southeast Asia and India. This collaboration comes amid a funding reset in Southeast Asia, where startups are now prioritizing sustainable business models and diversifying capital sources, with a notable increase in AI and climate tech investments. The partnership aims to enhance transparency and efficiency in investment processes, reflecting a broader trend of cross-border expansion as startups seek growth beyond fragmented local markets.
Malaysian Prime Minister Anwar Ibrahim announced that the US is open to discussions on reducing tariffs on Malaysian exports, with a 24% tariff set to take effect in July unless an agreement is reached. He noted that Malaysia may not meet its economic growth target of 4.5% to 5.5% this year due to the global trade war, while the central bank is likely to revise growth forecasts downward. Despite challenges, Malaysia's trade volume increased by 9.2% in 2024, reflecting a strategic diversification in response to US tariffs.
Chinese solar manufacturers are relocating to Indonesia to evade high US tariffs, which can reach up to 3,500%. This shift follows a pattern of "tariff hopping" seen since 2012, as firms seek to maintain production capacity for US exports while navigating trade barriers.Despite Indonesia's potential for solar energy, with a target of 23% renewable energy by 2025, it faces significant domestic challenges, including regulatory hurdles and fossil fuel interests. The recent influx of investments highlights the need for addressing local market barriers to ensure effective renewable energy adoption.
Amazon's Prime Day is seeing reduced participation from third-party sellers, many of whom are opting out due to high tariffs on Chinese goods and shrinking profit margins. The event, which has evolved into a major retail phenomenon since its 2015 launch, now faces challenges as sellers reassess the costs of participation amid economic pressures.This shift highlights Amazon's reliance on its third-party ecosystem, which accounted for 62% of units sold in Q4 2024. As competition intensifies from other shopping events, the potential reduction in product selection could undermine Prime Day's appeal and impact Prime membership growth.
[Source]
[Bloomberg]
Ministerial-level trade talks between Thailand and the US, scheduled for April 23, 2025, have been postponed, with further details to be provided by Deputy Prime Minister Pichai Chunhavajira on April 22. The delay comes amid rising tensions over a significant trade imbalance, as Thailand's surplus with the US surged to $45.6 billion in 2024, prompting concerns over potential tariffs that could impact economic growth and export-dependent sectors.
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