Hiya, that is Kenji from Hong Kong. The town is progressively shifting away from among the strictest Covid management measures on the planet, as native authorities scrapped the obligatory lodge quarantine for inbound travellers beginning this week. It’s definitely a optimistic step, however we aren’t fairly again to regular. Different social distancing guidelines stay in place and a number of other main occasions will likely be cancelled once more, together with the October 1 Nationwide Day fireworks, taking its suspension to 4 years since “social unrest” was cited as a cause in 2019.
One other kind of restriction reveals no signal of easing. China’s army tech firms try to get well from US sanctions inhibiting American buyers from shopping for their shares. Although the principles have been softened simply earlier than going into impact, numerous firms are scrambling to rebuild their shareholder bases.
And in lighter information, progress in meals tech is bringing extra bugs to our eating tables within the type of different meat. The quantity of carbon emissions concerned in elevating crickets is trivial in comparison with farming cows and pigs, that means “burgers” might quickly be as sustainable as they’re scrumptious.
In search of new buyers
China’s military-industrial complicated has been hit exhausting in a number of methods by US-China tensions. One instance of how is Washington’s determination to nearly ban American people and establishments from investing in 68 Chinese language entities.
Nikkei Asia’s Kenji Kawase appeared into 40 of the listed firms positioned off-limits to US buyers. Lots of them confirmed substantial modifications in shareholder buildings and drops in exterior funding by way of Hong Kong.
Beijing has been utilising varied assets to mitigate the harm to those strategic firms, together with elevating cash by way of state funds, permitting “homecoming listings” in Shanghai and inspiring mergers.
Chinese language firms caught within the US-China crossfire hardly ever talk about their troubles publicly. However Tai Ming Cheung, professor on the College of California San Diego and an skilled on Chinese language and regional defence points, believes the sanctions “actually have had a significant affect on Chinese language corporations,” given their reliance on American capital.
With US allies and companions taking related steps, the sanction has “compelled China to double-down” on its push for self-reliance, however bouncing again from this setback, he reckons, will take time. “They’re hoping, in a number of years, that these Chinese language corporations can resume their technological developments, regardless of these hits.”
Increasing the metaverse
Asia’s largest metaverse platform, Zepeto, is stepping up its international enlargement because it appears to compete towards the Huge Tech teams which are betting billions on creating avatar-filled digital worlds, writes the Monetary Occasions’ Christian Davies.
Owned by South Korean tech group Naver, Zepeto has shortly turn into the biggest metaverse platform in Asia. It has about 15mn to 20mn energetic month-to-month customers, predominantly in East Asia. Of these, 70 per cent are feminine and largely aged between 13 and 21.
Ricky Kang, head of enterprise at Naver Z, the Naver subsidiary that operates Zepeto, now needs to develop its recognition globally.
“Now we have established a really sturdy presence in Asia-Pacific, so we wish to develop additional within the area, however we additionally place a really sturdy emphasis on rising within the US and western Europe,” Kang mentioned.
He added that Zepeto was fashionable in Brazil, and that it was engaged on Turkish and Arab language variations of the platform as a part of a push into the Center East.
Zepeto gives customers the possibility to customize their avatars and to design and commerce hundreds of thousands of things — primarily clothes, equipment and hairstyles — in addition to to create their very own digital worlds. It operates a licensing mannequin, forming partnerships with luxurious style manufacturers and main Okay-pop companies.
But it surely has an extended technique to go to meet up with US rival Roblox, the $50bn on-line gaming firm that additionally has a faithful pre-teen following amongst its 200mn month-to-month energetic customers.
Some analysts have additionally questioned the sustainability of Zepeto’s recognition, citing its restricted person base. “It must develop its person base past youngsters, as Fb and Instagram did,” mentioned Choi Joon-chul, head of VIP Analysis and Administration.
The Apple conundrum
South Korean digicam module maker LG Innotek earned greater than Won11tn ($7.9bn) from gross sales of iPhone elements final 12 months. Its flagship manufacturing facility in Southeastern metropolis of Gumi is operating at full throttle to fill orders for the newest iPhone14, and the corporate has earmarked Won1.4tn to develop manufacturing capability to fulfill doubtlessly elevated demand from Apple.
Enterprise is nice, however Nikkei’s Seoul correspondent Kotaro Hosokawa factors out that the LG unit now will get about 75 per cent of its gross sales from Apple. A veteran tech reporter, he attracts parallels with Japan Show, a liquid crystal show maker that additionally relied closely on Apple and spent large getting ready for a possible enhance in orders. Contemplating the downfall of the Japanese firm, the comparability isn’t more likely to be a comforting one for LG Innotek.
The fitting dimension for chew
Insect-based different meat is catching on as issues concerning the local weather, meals safety and animal welfare persuade diners to beat their squeamishness. Enhancements in style are additionally serving to, experiences Nikkei’s Uina Otake.
BugMo, a start-up from the traditional Japanese capital of Kyoto, is specializing in crickets, making them into soup and “hamburger” patties. One of many largest challenges, says the start-up’s product growth director, entails grinding the bugs right into a powder with simply the precise consistency. Too advantageous, and the resultant paste is runny and bland. Too coarse, and bits of exoskeleton can present up within the ultimate product.
There’s a lot using on BugMo’s grinding method. Farming crickets emits solely a hundredth of the greenhouse gasses that cows and pigs do, in response to the UN Meals and Agriculture Group. In addition they have much less of an environmental affect than soyabeans, its founding CEO Yusuke Matsui says, declaring crickets will be raised on rice bran and soyabean curd refuse.
Urged reads
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Apple expands iPhone manufacturing in India in shift away from China (FT)
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