In April 2018, it was revealed that Singapore has invested SGD 27 billion into the Chongqing Connectivity Initiative since the project broke ground in 2015. The four priority sectors are financial services, aviation, transportation and logistics, and ICT.
The incoming Imran Khan government of Pakistan will ask the IMF for a USD 12 billion bailout package, highlighting the new economic reality facing some Belt and Road Initiative participating countries and the need to formulate new rules governing the program.
China used more than 45 percent of global semiconductor production, and it only makes 15 percent of worldwide semiconductors locally. The country ran a trade deficit of USD 193 billion in 2017 on semiconductor trade.
ASEAN’s plans to strengthen connectivity has prompted and heightened competition between the two Asian giants of China and Japan, particularly in the areas of infrastructure financing and high-speed rail construction.
The US is preparing for a new round of tariffs on USD 200 billion worth of Chinese products, following an earlier 25 percent tax on USD 34 billion in Chinese imports. The second wave of tariffs includes finished products sought after by the average US consumer.
China has tried to develop its high technology industry through foreign direct investment since the 1990s. Despite the clear growth in high technology production, China has continued to rely on capital equipment and key components imported from foreign countries.
President Donald Trump announced the US would be applying tariffs amounting to USD 34 billion on certain Chinese goods imported by the US, commencing from midnight of July 6, 2018. The liberal Western media responded as if the sky was going to fall.
Why did ZTE settle after its initial announcements to be in a state of shock and that the denial order caused major operating activities to cease? Perhaps it is as simple as China’s desire that it does not want an escalation of bilateral trade friction.