Hong Kong and People’s Republic of China National Flags
Hong Kong and People’s Republic of China National Flags
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April 15th, 2021 marked the first National Security Education Day in Hong Kong, which came nearly a year after the passage of the national security law (NSL) in June 2020. The city celebrated the day with China’s military goose step marching, anti-terrorism drills, and resolute speeches on maintaining stability and curbing foreign intervention from a roster of top officials from Mainland China and Hong Kong. Officials hailed the NSL for ending several months of anti-Beijing demonstrations in 2019 and, at the same time, used this to justify a drastic overhaul of the city’s electoral system and governance structure. …


Semiconductor chips, or integrated circuits (“IC”), are pivotal technology building blocks used in computers, smartphones, medical equipment, vehicles, and more. Given the importance of the technology, China views domestic IC production capabilities as critical to its economy and national security, not only spotlighting chips as one of the seven critical strategic domains in its recent Five-Year Plan but also aiming to produce 70% of its chips domestically by 2025. However, IC supply chains are global and complex, requiring highly technical expertise along each manufacturing step, which China lacks in many regards. …


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Every year, the same question is asked, “When will robots make human employees obsolete?” Yet, the answer may be simpler than you think. The robots are not coming, they are already here. Unfortunately for many, technology and automation have already erased millions of jobs. Within the next three years, over 120 million workers worldwide could be displaced or heavily impacted due to outsourcing to technology. For China, it is estimated that 50 million workers could be displaced or impacted.

Despite apprehension over the inevitable robot takeover, Beijing continues to invest heavily in the robotics industry as part of its aim…


Despite the risks that the COVID-19 pandemic has introduced into China’s economy, the country has recovered quickly and been relatively successful in stimulating growth. However, policymakers in Beijing are now out of the fire and into the frying pan as they turn their attention to addressing the more systemic issues that could hinder China’s long-term recovery. One of these issues in particular, the unprecedented credit surge that started in the summer of 2020, has continued to gain steam.

Higher-than-normal quantities of medium- and long-term loans to non-financial companies and households has culminated in this credit surge, which has in turn…


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Perhaps most well-known for its love of tea, China’s tea culture has been meticulously cultivated for thousands of years. Millions of Chinese drink tea daily; yet, in recent decades, coffee has surged in popularity. China’s domestic coffee industry has enjoyed 15% year-over-year growth over the past thirty years to reach a valuation of over US$8 billion in 2019. Driving the charge are Starbucks and Luckin Coffee, with the most recent reports showing that, as of 2019, the former operated more than 4,700 shops in China, while in 2020, the latter had more than 6,500 locations.

Starbucks and Luckin are excellent…


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Amid the ongoing instability in Myanmar exists significant concern for Chinese supply chains. Rising global metals prices, systemic risk, and potential disruptions to rare earth minerals supply chains all threaten China’s economic stability as the world’s top metals consumer. By extension, as the world’s factory, the unfettered supply chain of rare earth minerals is not only vital to China, but to the broader global economy.

A Difficult Road Ahead for Myanmar

Myanmar has struggled with military rule since gaining independence from the British in 1948. However, Myanmar’s present conflict has its foundation in the nation’s November 2020 election. The military-backed Union Solidarity and Development Party disputed…


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Semiconductor chips are tiny data processors used in a wide range of electronic devices. As smartphones and computers become ubiquitous in everyday life, the importance and value of these chips continues to increase dramatically. China seeks to domestically produce 70% of the chips it uses by 2025; however, a trade war and tough sanctions against Chinese technology companies have severely hindered this goal.

One of the most crucial necessities to producing high-end chips is seasoned semiconductor experts. While Beijing has pledged a US$1.4 trillion investment into its digital economy, it is estimated that China has a talent gap of about


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Summary

A global RMB is a strategic long-term policy goal for China, and a deep offshore market is a crucial prerequisite. As a key offshore RMB hub, Hong Kong will have to embrace supportive policy and build financial market infrastructure to bolster the RMB’s internationalization. This article takes a look at the potential levers available to both Hong Kong and Mainland authorities to advance this agenda.

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It is well known that until 2009, virtually none of China’s external trade was…


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Summary

In the halcyon days before the pandemic, when headlines were dominated by the mundane trials and tribulations of the US-China trade war, China enacted a sweeping new Foreign Investment Law as the worst of the hostilities began to die down. The regulations enshrined in this high-level law provide many of the concessions that the US and other G7 nations with investments in China had long been clamoring for, but also contain provisions to review foreign investments for national security concerns.

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Summary

As he undertakes a thorough review of Trump’s China policies, President Biden is expected to formulate a China strategy that puts American interests first and strengthens US competitiveness in the global market. While he maintains that his administration will take a different path than his predecessor, there is no doubt that heated competition is on the horizon — and TikTok may find itself at the forefront of the battle.

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With over 800 million users worldwide, 100 million of which…

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Stay in the know with TCG’s fresh perspective on China’s economy, business environment, and political landscape.

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