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China conducts 5-day military drill off Zhejiang Coast

China launched a 5-day military drill in the East China Sea expected to continue through July 23 showcasing capabilities that reinforce the military’s ability to retake Taiwan. The Zhejiang Maritime Safety Administration cautioned merchant and civilian vessels transiting between Zhoushan to Wenzhou along the east coast of Zhejiang Province on July 16 to avoid the area, which is roughly the size of Taiwan. Read more on potential impacts to business operations and policy here.

Apple Launches Green Energy Fund in China

Apple, a leading American tech giant, is showing its growing interest in renewable energy development in China, even amid trade tensions with the U.S. On July 13, Apple announced plans for a $300 million US dollar (USD) investment to launch a clean energy fund in China. The fund aims to develop renewable energy projects and generate more than 1 Gigawatt of clean energy which hopes to power 1 million households in China. – Weiting Li

American Meat Export is Likely to Take a Big Hit Following Chinese Tariffs

Following the latest round of American tariffs on Chinese goods July 5, Beijing responded with retaliatory tariffs imposed on July 6, adding a 25% duty targeting American soybeans, meat, and vehicles. US farm produce, especially beef and high-end steaks, is expected to take a significant hit as exports to China becomes increasingly more expensive. The duty rate on US beef to China is being tripled from 12% to 37%, just as US beef was beginning to reemerge as a strong player in Chinese markets. – Dillon Billingham

Trump’s Trade War with China has started

United States President Donald Trump’s first round of tariff on $34 billion worth of Chinese imports will take effect on Friday, July 6, 2018. The first 25% tariff will impact a variety of products including farm machinery, industrial products, medical devices, automobiles, and aircraft parts. Read a more detailed summary and our assessment here.

Tensions high as US Commerce Department bans exports to ZTE

The Committee of Foreign Investment in the United States (CFIUS) announced a ban that makes it illegal for American companies to supply ZTE with components and technology, through intermediaries or otherwise, effective immediately, for 7 years. CFIUS says this is due to the discovery that ZTE was selling US goods to Iran despite American sanctions in 2017. – Adriana Ray

China-Based US Businesses May Already Be Suffering from Ongoing Tariffs Talks

The Friday, July 5 deadline of US president Donald Trump’s $34 billion USD tariffs on Chinese goods has already started causing trouble for American businesses in China. Smaller firms have been struggling with new obstacles in customs, regulations, inspections, and licensing applications. For a more detailed summary and our analysis, read more here.

Growing fear of Chinese Investment in the West

Following increasing trade tensions between China and the United States, more countries have raised national security concerns surrounding Chinese foreign investment. After the U.S. blocked several deals with China, Germany, Canada, and the U.K. all raised concerns on proposed Chinese investment in their own countries. -Weiting Li

For a detailed summary and our assessment on business impacts, read more here.

Thailand Seeking Bids for High-speed rail Project as part of Belt & Road Initiative

Thailand would be seeking $5.5 billion-dollar bids for a high-speed rail project by end of 2018. The winning bidder would build the 157-mile route connecting central and northeastern Thailand with their neighbor to the east, Laos. American infrastructure and energy enterprises interested in investing in Thailand should consider cooperating with Thai companies like energy giant PTT Public Company Limited, urban railway operator BTS Group Holdings, and construction company CH. Karnchang Public Company Limited in-order-to avoid potential government red tape.

Australia Passes New Law Targeting Foreign Interference

On June 28, in the middle of disputes with Chinese telecom giant Huawei on a 5G network, Australia passed a law to prevent foreign interference in the country’s politics and domestic affairs. The new legislation adds 38 new crimes related to foreign interference to the register, including stealing state secrets on behalf of a foreign government, and expands the definition of what can be considered espionage. Read a detailed summary and assessment here.