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Monthly Archives: November 2022 - 5. page

China Is Building Its Influence In Central Asia

The French newspaper Le Monde published an article on how China is building up its influence in Central Asia. Russia used to provide military security guarantees to the countries there that were former republics of the USSR. However, as Russia is trapped and weakened in the Ukraine war, it has started losing its grip in Central Asia. Recently confrontations between Armenia and Azerbaijan and between Tajikistan and Kyrgyzstan demonstrated that Russia is not very effective as the police there.

On the other hand, China’s influence is growing. Beijing is the dominant economic power in that region. Its involvement in the past related more to grabbing local natural resources, such as Kazakhstan’s uranium and oil and Turkmenistan’s natural gas. It has also built up its influence through the Belt and Road Initiative. Now, Beijing is expanding to the security field. It supports these countries to be more independent and to have less control from Russia.

Source: Radio France International, October 20, 2022
https://www.rfi.fr/cn/专栏检索/法国世界报/20221020-趁俄罗斯受到削弱,中国正在中亚布网络,准备伏击

 

SK Hynix Considers Abandoning Fab Factories in China

Chinese online high-tech news site ICS Smart recently reported that major South Korean memory chip maker SK Hynix just reported its poor third-quarter results. To make matters worse, SK Hynix has doubts about the future fate of its fab factories in China due to new US export control regulations. The company explained that, due to the deteriorating global macroeconomic environment, sluggish demand for DRAM and NAND products, sales and prices have declined, resulting in a sharp decline (-20.5 percent) in revenue month-over-month. Also, on October 7 this year, the United States issued new export control regulations against China, restricting wafer manufacturers located in China from obtaining multiple advanced chip technologies, unless licensed by the U.S. Department of Commerce. This impacts the fab factories of Korean companies such as SK Hynix and Samsung in China. Although on October 11, SK Hynix and Samsung Electronics both obtained a license from the US Department of Commerce for an additional year, yet after that, what will happen? SK Hynixs’ chief marketing officer Kevin Noh said on a conference call that, as a contingency plan, the company is considering selling fab factories, selling equipment, or moving equipment to Korea. Records show that, as of 2020, SK Hynix had invested more than US$20 billion in China. Under the new U.S. regulations, the operation of SK Hynix in China will be subject to many restrictions.

Source: ICS Smart, October 26, 2022
http://www.icsmart.cn/57115/