The author is an analyst for NH Investment & Securities. He can be reached at bk@nhqv.com -- Ed.The two terms that defined last year’s stock market were ‘new cold war’ and ‘supply chain reshaping’. In 2024, decoupling between DMs and EMs is to become a new market-defining feature. Today, the US’s bu
As Germany, which shares a similar economic structure with South Korea, takes steps to improve its economic structure and reduce its trade dependence on China, there is a call for South Korea to draw lessons from Germany’s example and work towards improving its own economic structure.According to a
The author is an analyst for Shinhan Securities. He can be reached at jk.ahn@shinhan.com -- Ed.BOK likely to keep base rate at 3.50% given inflation and household debtAt the upcoming October meeting, we expect the Monetary Policy Board (MPB) of the Bank of Korea (BOK) to make a unanimous decision to
The second day of HUAWEI CONNECT 2023 was off to a good start with the keynote speech by Mr. Zhang Ping'an, Executive Director of Huawei and CEO of Huawei Cloud. In "The Cloud Foundation for an Intelligent World: Reshaping Industries with AI", he announced Huawei's Pangu models for mining, governmen
South Korea’s battery industry is on high alert due to the potential designation of companies as “Foreign Entities of Concern” (FEOC) by the United States. If Chinese companies that supply raw materials and substances to Korean firms get listed as FEOCs, it could hinder these firms from receiving th
Germany has enjoyed an amicable relationship with China. But China’s economic crisis is putting Germany on pins and needles. Voices are growing in Germany that the country needs to decouple from China to reduce risks from internal issues such as a Chinese real estate slump and the US-China conflict.
Despite the escalating power struggle between the United States and China leading to increased calls for decoupling from China, an analysis suggests that it may not be easy for many countries, including South Korea, among the participants in the Indo-Pacific Economic Framework for Prosperity (IPEF),
The author is an analyst for NH Investment & Securities. He can be reached at sw.kang@nhqv.com -- Ed.We attribute August’s bear-steepening to a combination of: 1) fears of upward revisions to i* and r*; and 2) supply-demand pressures. Although supply-demand factors linger, concerns about increases t
On Aug. 9 (local time), the U.S. federal government made a decision to regulate American capital investment in China’s advanced technology sector. This marks an escalation of the economic battle between the U.S. and China, expanding its front from trade and technology to the investment domain. This
The author is an analyst for Shinhan Securities. He can be reached at ym.ko@shinhan.com -- Ed.Micron’s earnings release raises expectations for SK Hynix’s decouplingSK Hynix is likely to have seen operating loss of KRW2.3tr (continued loss QoQ) on sales of KRW6.8tr (+34% QoQ) in 2Q23. Micron Technol
Tony Blinken, the U.S. Secretary of State who is currently visiting China, has announced that he met with President Xi Jinping of China and reached an agreement on the stabilization of U.S.-China relations.From June 18 to 19, Secretary Blinken had a two-day schedule during which he sequentially met
Micron has begun making significant investment in China even though its sales have been blocked in the Chinese market. Apple’s new Apple Vision Pro has a significant number of components made in China. Some analysts say this is a sign that the U.S.-China power struggle is shifting from decoupling, w
“The Korean government has not promoted a policy of decoupling from China,” Prime Minister Han Duck-soo said. Han reaffirmed the Korean government’s position that there was no decoupling from China and no reason to do so as stated by Deputy Prime Minister and Minister of Strategy and Finance Choo Ky
The United States is officially shifting its Chinese strategy from “decoupling” to “derisking.”On June 4, White House National Security Advisor Jake Sullivan said in a CNN program, “The U.S. economy does not seek to decouple from China, it seeks to derisk it.” This came more than two months after he
The United States and the European Union (EU) are preparing a joint regulatory proposal to limit Chinese investment in high-tech sectors such as semiconductors. They are stepping up their pressure on Beijing after the leaders of the Group of Seven (G7) announced a joint response to China’s economic
“Korea considers its relationship with China important,” Korean Vice Prime Minister and Minister of Strategy and Finance Choo Kyung-ho said at a plenary session of the National Assembly’s Planning and Finance Committee, when asked about the impacts of the Korean government’s focus on the United Stat
The European Union (EU) has included in its draft strategy for dealing with China the need to cooperate with relevant countries in the event of an emergency involving Taiwan amid escalating tensions between the West and China over Taiwan’s independence.On May 14, Japan’s Yomiuri Shimbun newspaper re
The author is an analyst for Shinhan Securities. He can be reached at chee@shinhan.com -- Ed.Reasons behind decoupling between USD/KRW rate and US Dollar IndexThe USD/KRW exchange rate has moved higher recently to approach KRW1,350 after remaining range bound in the KRW1,300 levels since March. This
According to China’s state-run Xinhua News Agency on April 13, President Xi visited LG Display’s factory and the R&D center for electric vehicle Aion under China’s Guangzhou Automobile Group (GAC) as part of a tour of Guangzhou in Guangdong Province of China on April 12.The Chinese political leaders
Samsung Electronics announced on April 7 that its first quarter operating profit plunged about 96 percent year over year. It was the first earnings shock in 14 years since 2009. The company changed its stance of making no artificial production cuts as its operating profit in the first quarter (Janua