
Dollar demand shrinks with tariff tug-of-war
Dollar demand shrinks with tariff tug-of-war
David Goldman analyzes the rally of Asian currencies amid mounting US tariff threats, arguing that a structural shift in global trade patterns away from US-centered supply chains is weakening the traditional relationship between US real yields and dollar strength.
Germany's Deep State moment
Diego Faßnacht assesses Germany's deepening political crisis following Friedrich Merz's unprecedented second-round election as chancellor, a signal of internal coalition fractures, looming legislative gridlock, and strategic paralysis.
The Japan that must say 'No'
Scott Foster details how Japan's ruling coalition is under intense domestic pressure, especially after electoral setbacks, and that Tokyo is firm in rejecting any trade agreement with Washington that does not include a full review of tariffs on autos, auto parts, steel, and aluminum.

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RTHK
2 hours ago
- RTHK
North Korea has 'no interest' in Seoul overtures
North Korea has 'no interest' in Seoul overtures Kim Yo Jong says North Korea is "not interested" in any proposal from Seoul, and there is "nothing to discuss." File photo: AFP North Korea has no interest in any policy or proposals for reconciliation from South Korea, the powerful sister of its leader Kim Jong Un said on Monday in the first response to South Korean liberal President Lee Jae Myung's peace overtures. Kim Yo Jong, who is a senior North Korean ruling party official and is believed to speak for the country's leader, said Lee's pledge of commitment to South Korea-US security alliance shows he is no different from his hostile predecessor. "If South Korea expects to reverse all the consequences of (its actions) with a few sentimental words, there could be no greater miscalculation than that," Kim said in comments carried by official KCNA news agency. Lee, who took office on June 4 after winning a snap election, called after the removal of hardline conservative Yoon Suk Yeol over a failed attempt at martial law, has vowed to improve ties with Pyongyang that had reached the worst level in years. In one measure aimed at easing tensions, Lee suspended loudspeaker broadcasts blasting anti-North propaganda across the border and banned the flying of leaflets by activists that had angered Pyongyang. Kim, the North Korean official, said those moves are merely a reversal of ill-intentioned activities by South Korea that should never have been initiated in the first place. "In other words, it's not even something worth our assessment," she said. "We again make clear the official position that whatever policy is established in Seoul or proposal is made, we are not interested, and we will not be sitting down with South Korea and there is nothing to discuss." (Reuters)


South China Morning Post
12 hours ago
- South China Morning Post
Trump is right to reverse Biden's failed curbs on chips to China
China policy – or for that matter any policy – coming out of the Donald Trump White House is not usually known for being the product of considered thought and deliberation. Advertisement But allowing China to resume buying more legacy chips other than the most advanced ones may be its most rational and defensible yet. Negotiations after Geneva and London led to China loosening export controls on rare earths and the US allowing chipmakers such as Nvidia to resume selling its H20 artificial intelligence (AI) chips to China. That's usually interpreted as a quid pro quo. However, it's clear Washington also thinks it's good policy as well as good for business. H20 was tailor-made for the China market when the US started imposing chip curbs. But it eventually fell under expanding US restrictions covering even legacy ones. At one time, Gina Raimondo, Joe Biden's commerce secretary, boasted that she would tighten the curbs every time a firm like Nvidia tried to get around them. But it soon became clear that the curbs weren't working. First, the squeeze actually made China move quickly to refashion its entire chipmaking industry. When Raimondo was making an official visit to Beijing in the summer of 2023, Huawei released its Kirin 9000s chip for its Mate 60 smartphones, using China's SMIC 7nm node. That was a clear challenge to Raimondo and her boss at the White House. Advertisement Soon, articles questioning the effectiveness of the chip curbs were appearing in mainstream American media, including Foreign Affairs, the semi-official publication of the US foreign policy establishment.


South China Morning Post
13 hours ago
- South China Morning Post
Hong Kong slams Western countries over criticism of bounties for second straight day
The Hong Kong government has hit out at 'irresponsible remarks' by Western countries for the second straight day following its decision to pursue overseas-based activists for alleged national security violations related to a group called 'Hong Kong Parliament'. Advertisement Authorities said on Sunday that they strongly opposed and disapproved of 'smears with distorted facts' that had been communicated by officials and politicians from countries such as the US, Canada and Australia, as well as 'anti-China organisations'. 'Not only did such foreign government officials and politicians, as well as anti-China organisations, turn a blind eye to illegal acts of criminals, but also deliberately smeared and spread irresponsible remarks, in an attempt to mislead the public, about the measures and actions taken by the [Hong Kong government] in accordance with the law,' the government said. The statement followed a similar one issued a day earlier, which had slammed remarks made by UK Foreign Secretary David Lammy and Home Secretary Yvette Cooper, who had described the latest round of bounties as 'transnational repression'. Western governments and politicians have been voicing their criticism since the city's decision on Friday to place bounties on 15 activists and issue new arrest warrants for four more over their involvement in the 'Hong Kong Parliament', a group deemed subversive by authorities. Advertisement US Secretary of State Marco Rubio condemned the latest round of warrants issued for activists, including those based in his country, saying Washington would not tolerate 'transnational repression on US soil'. In Canada, Minister of Foreign Affairs Anita Anand and Minister of Public Safety Gary Anandasangaree said in a joint statement that actions taken by Hong Kong 'threaten the sovereignty of Canada and security of the people in this country'.