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Tuesday, August 15, 2023

International community must take action to oppose the 'new Cold War'

 

Illustration: Liu Rui/GT

If recent developments in the three major areas of politics and diplomacy, international trade and economics, and military in the US are looked at together, there will be a chilling discovery. This week, the leaders of the US, Japan, and South Korea will hold a meeting at Camp David, a retreat of US presidents. This kind of summit is the first in the history of these three countries, and its target against China is no longer concealed. According to reports from Japanese media, Japan and the US will also agree this week to jointly develop an interceptor missile "to counter hypersonic warheads being developed by China, Russia and North Korea." As for the executive order on introducing investment restrictions on China recently signed by US President Joe Biden, its negative impacts are spreading and fermenting.

The actions and policy measures of the US mentioned above are all marked by a strong "new Cold War" color and exhibit a trend of continuity and escalating intensity. Can they be characterized as "new Cold War" thinking or actions? This can be discerned through the following four criteria. First, is it confrontational zero-sum competition or cooperative mutual benefit? Second, does it involve ideological delineation or equal exchange, mutual learning, and peaceful coexistence among different civilizations? Third, does it create cliques and alliances for confrontation or does it promote openness, inclusivity, and the construction of a community with a shared future for mankind? Fourth, does it resort to containment and suppression against perceived competitors, or does it engage in benign competition within the scope of international rules and principles? Upon comparison, the answer becomes self-evident.

Just as the drumbeats of the "new Cold War" are becoming more frequent and the smell of gunpowder more suffocating, prominent figures in the White House, including President Biden, have been emphasizing on various occasions that the US "does not seek a "new Cold War"," that "the US must reject neo-containment," and that "Washington should learn from the lessons of the Cold War and the old Cold War construct of blocs is not coherent." This has created a strange scene where there is not just a departure but even a contradiction between the actions and statements of the US, as well as between US self-assessment and the real impressions of the outside world about it. This issue goes beyond American hypocrisy or lack of self-awareness; it harbors a significant underlying risk.

There are at least two possibilities. The first one is that the US knows it is engaged in a "new Cold War" and is well aware that people all around the world, including Americans, strongly oppose and are deeply concerned about a "new Cold War." In other words, the US realizes that this is a highly risky undertaking and therefore would never admit to it. Instead, it might label its actions with a new term to deceive the world.

The second scenario is that the US has actually initiated a "new Cold War," but it does not really think that it is engaging in a "new Cold War." This will have more serious consequences than the first scenario, because the US not only refuses to make a reflection and change its course, but also will gain a stronger "moral drive" from self-hypnosis. In order to wake the US up from its pretended or genuine sleep, the international community needs to strengthen its resistance and criticism against the US' initiation of a "new Cold War" and take actions.

Regardless of what the US diplomatic strategists say or think, their actions speak louder. When faced with international challenges, especially when dealing with countries that have similar power with the US but different political and cultural backgrounds from the US, they habitually and unconsciously refer to the Cold War experience. They sometimes even directly resort to Cold War tactics, without taking off the "Cold War glasses" to view the world and era that have already undergone tremendous changes, even though they may also know that this is wrong and dangerous.

An article in the American magazine Foreign Affairs points out that Cold War history has become a straitjacket constraining how Americans perceive the world, including making Americans struggle to understand gray areas between friend and foe, making negotiations with rivals appear to carry impossibly high stakes and making it hard for Americans to imagine a less-militarized foreign policy.

The deeper the misunderstandings of history and reality, the stronger the limitations and misguidance of Cold War thinking on American foreign policy decision-makers. Binary thinking makes it impossible to understand the complexity and richness of a multipolar world, and severely lacks imagination for the future. The diplomatic strategies and approaches formulated based on this have distorted international politics.

More specifically, Washington has misunderstood history, misjudged the times, and misunderstood the Communist Party of China and the Chinese people. The destructive power of "new Cold War" is world-class, and the fate of all humanity stands at a crossroads. American political elites may believe that the US was the winner of the Cold War, which is controversial, but it is certain that the US cannot be the winner of the "new Cold War" and must bear historical responsibility for today's choices.

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Sunday, August 13, 2023

Malaysia, China aim to enhance Research and Education; Malaysian hospitality a win for varsities

 



GEORGE TOWN: Malaysia and China will explore the need to increase collaboration in research and education, besides the export of durians, says Datuk Seri Anwar Ibrahim.

The Prime Minister said during a closed-door meeting with Chinese Foreign Minister Wang Yi that they also touched on regional matters such as an “Asean mechanism” for addressing pressing issues in the South China Sea.

“We discussed education since Malaysia hosts a substantial number of Chinese students at about 60,000, while there are about 7,000 Malaysian students studying in China.

“The Chinese minister also acknowledged the potential for further academic exchanges that could contribute to the growth and development of both countries,” he told reporters when met after the meeting here yesterday.

Anwar said despite sharing strong ties with China, Malaysia would strive to enhance normal diplomatic engagements through a strong, strategic partnership.

“Our strong relationship makes it easier for us to discuss other things because of the good ties we have,” he said, adding that he and Wang Yi touched on various aspects of cooperation and collaboration with a focus on investments, education and regional issues.

“Together with other Malaysian ministers, we also spoke on matters involving the strengthening of relationships on both sides.”

He also thanked Wang Yi for his role in facilitating significant Chinese investments in Malaysia, such as petrochemical giant Rongsheng and carmaker Geely, along with other key players.

The Chinese minister was in the country on a courtesy visit to meet Anwar.

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Malaysia and China to deepen ties in various fields









Malaysian hospitality a win for varsities



Home away home


Vibrant culture, lower cost, and ease of getting a visa among reasons more international students are flocking here.

MALAYSIANS are a friendly bunch and this, according to a recent global survey, is a pull factor for youths from other countries to study here.

The Global Student Experience Survey, conducted by the United Kingdom-based Tribal igraduate, found that overall, 89% of international students were satisfied with Malaysia, which is 2% more than the global benchmark.

In terms of making friends who are locals, 83% of those surveyed said they were satisfied. When it comes to making friends from other countries, 88% of the respondents said they were satisfied, while 85% said they were satisfied with how easy it was to make friends who were their countrymen.

These responses were all above the global average (see infographic), said Tribal igraduate Asia director Guy Perring.

“The friendliness aspect is a real positive for Malaysia,” he told StarEdu.

PerringPerring  

When international students go to the UK or Australia, they can sometimes find it difficult to make friends with the local British or Australians.

“Our data indicates that Malaysians are very friendly people and I think it’s because the country comprises a multicultural society,” he said, adding that the international students surveyed wanted to build a network and not just obtain a paper qualification from their places of study.

“They want to build a network as well as make friends for the future. Our survey contains 150 questions but in terms of friendliness, only three questions were asked.

“We asked about making friends. We asked if they were satisfied about making friends from Malaysia, from their home countries and from other countries.

“If they make friends from other countries, it shows they are in a good international university. If they are making friends from Malaysia, it shows they are integrating well into the society,” said Perring.

Of those surveyed, 84% described their courses as “value for money”.

The survey also showed that more international students were keen to study here with figures from the last quarter of 2022 showing that there was a 17% rise in the number of applications compared to the same period in 2021.

Perring said the nationalities most common in Malaysia – from China, Bangladesh, Indonesia, Nigeria, India, Yemen, Pakistan and Sudan – were drawn here by a combination of culture, cost and the relative ease of getting a visa.

“As well as the presence of overseas campuses from Australia and the UK, there is little doubt that the growth is likely to continue,” he said.

According to the survey report, there has been a sea of change in the student experience for both domestic and international students caused by investments in new campuses and facilities, as well as a greater desire to listen to the student voice and ensure student views are incorporated in long-term strategies and appropriate investments.

The rise in international student numbers is due to positive word of mouth, said Perring, adding that about 70% of the students surveyed said they would encourage their friends and family to study in Malaysia.

The three survey questions on friendliness, he said, can be used as a guide for institutions of higher learning to foster greater integration on campus and to provide the necessary social support in terms of social activities.

“While international students should be encouraged to make more local friends, they also need friends from their own home countries,” he said.

The survey was carried out from September to December 2022, with the next round scheduled to be conducted from October to December this year.

Over 120,000 international students and 69,400 domestic students from 146 universities across 17 countries took part in the survey.

NovieNovie

In Malaysia, about 3,500 of the 12,441 international students studying here were involved in the survey.

Commenting on the findings, Education Malaysia Global Services (EMGS) chief executive officer Novie Tajuddin said the warm culture and hospitality of Malaysians make the country a great place to study.

EMGS, he added, is consistently working on promoting Malaysia and its tertiary education sector in untapped markets.

“To maintain the quality of our education providers, monthly engagement sessions with universities are held to ensure everything is okay.

“We also open the door and streamline Malaysia and various countries in terms of course accreditation. This will enable international students to study here seamlessly,” he said.

National Association of Private Educational Institutions (Napei) secretary-general Dr Teh Choon Jin said the country’s diversity creates acceptance and inclusivity, which make international students feel welcome.

TehTeh

“Malaysia, with our diverse culture and society, has a friendly environment so it is not surprising that international students rate us higher than other frontier markets known predominantly for being destinations for international students,” he said.

He said Malaysian universities that are very successful in attracting international students put great emphasis on enriching students’ experience and ensuring high student satisfaction.

Outside of the classroom, multicultural activities also take place on campus, he added.

With support from the universities, cultural activities and respective national days are celebrated on campus as part of student activities throughout the year, he said.

“Such events usually see a great number of students from different nationalities participating. When we see students of diverse backgrounds gaining an understanding of the many cultures that are different from theirs, it is evident that we have created a successful integration model.

“Our local students also benefit from the enriching learning experience, where they have friends from different countries which would help them in their future careers,” he said.

Asia Pacific University of Technology & Innovation (APU) chief executive officer Datuk Parmjit Singh said apart from a harmonious learning and living environment on campus, students benefit strongly through their engagement with those from various cultural backgrounds, as this provides them with perspectives on how people from different cultures respond to situations and how to communicate effectively with each other.

Parmjit

Parmjit

He said the varsity’s strategy has always been to achieve strong and meaningful integration rather than assimilation.

“Students are encouraged to maintain and showcase their rich cultural heritage while at the same time learning about other cultures and sharing their unique cultural identities. “To make this happen, mental and cultural barriers have to be broken from day one,” he added.

Parmjit said throughout the international students’ time at APU, they are encouraged to appreciate their own cultures, tolerate other cultures and learn from each other.

“These broaden their horizons and ensure that our students graduate as well-equipped global citizens who are capable of adapting to different challenges within the global business environment,” he explained.

APU, with its student body of over 130 nationalities, took part in the Global Student Experience Survey.

Almost half of the students at APU are international students.

Commenting on the survey, Parmjit said both the varsity’s Malaysian and international students experience a diverse cultural mix as global citizens and create long-lasting friendships in Malaysia.

“On the whole, all of APU’s students, regardless of nationality, are very positive about their multicultural experience.

“International students view their Malaysian counterparts to be very friendly and most of our students develop lifetime relationships across the continents that last well beyond graduation.

“APU has always believed in bringing together as many communities of international students as possible from all around the world, without allowing any one country to dominate,” he said.

'I find the people in Malaysia to be generally friendly and welcoming. They often display warm hospitality towards international students, which has made my stay here more enjoyable. The locals are open-minded and accepting of different cultures, making it easier for me to connect and build friendships with them. The country has a diverse and vibrant culture, so it is not at all difficult for me to adapt. I really feel at home here. Additionally, the affordable cost of living and tuition fees compared to other countries allows me to pursue quality education without breaking the bank. While studying in Malaysia has been a rewarding experience overall, I did face some challenges. Language barriers have always existed, especially considering I’m not well-versed in the local language. This made it difficult to get along with some of my coursemates and do classroom activities, and interact with the staff. '– Quazi Isha Nafisa, 24, Bangladesh

'I’ve been here for four years and while the people are friendly, the language barrier is sometimes an obstacle for me to get along with people. The thing that first attracted me to study here is the fact that it has universities that are globally well ranked, and on top of that, they are affordable compared to universities in other countries with the same rankings. As a Muslim, I don’t face many challenges in Malaysia. I find many similarities between Malaysia and my home country. It is very convenient living here.' – Omar Elmanzalawy, 22, Egypt

'Malaysians are known for their warm hospitality and open-mindedness, which have made it easier for me to adjust to this new environment. Additionally, the university’s diverse student community has provided me with the chance to meet people from all over the world, and we’ve formed lasting friendships. The people around me have also been incredibly friendly and welcoming.' – Manaal Kurrumbacus, 21, Mauritius

'When I came to Malaysia, I spoke zero English. I thought I would feel like a stranger and everyone would judge me or not bother befriending me. However, it was completely the opposite. They made me feel like my English proficiency was not a barrier to forming friendships. I was treated like an old friend they’d known forever. Although they all spoke better English than me, it was not an issue to them. Instead, they would teach me English words. Each and every one of them acted like a teacher who is a friend. I will never forget how much it helped me to gain my confidence and build my self-esteem. Malaysians are very welcoming and kind. Most of the people here, be they local or from other countries, bring such a wonderful energy to the conversations we have. Everyone is trying to enjoy their time on campus and get the best out of the experience.' – Mohammed Adel Mohammed Ba Hamid, 22, Yemen

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Malaysia and China to deepen ties in various fields









Navigating the Future of China-Malaysia Relations 

Friday, August 11, 2023

US' ban on high-tech investment cannot stifle China's high-tech development

Backfiring moves.Illustration:Liu Rui/GT

US President Joe Biden signed an executive order on Wednesday restricting investments in China, intended to further stymie China's advances in three cutting-edge technology areas: semiconductors and microelectronics, quantum information technologies and certain artificial intelligence systems. The "decoupling" of high tech from China began under Donald Trump, and the Biden administration has continued that ambition. However, the new order doesn't target US investments already invested in China, but the new ones.

The Biden administration has repeatedly claimed that the US restrictions will be narrowly targeted and will not "have a fundamental impact on affecting the investment climate for China." Biden's new executive order is still subject to consultation with the US business community and the public and is not expected to take effect until next year.

The order has been brewed for a long time and has generated a lot of publicity. But almost no one believes that this executive order will deal a new practical blow to Chinese high technology, because almost everyone knows that China needs American technology more than American money. The order has gained much attention because it is seen as part of a broader trend of the US drifting away from China.

The promulgation and brewing process of the executive order reflects the strong desire of American political elites to suppress China's high-tech development, as well as a fierce game between those supporting the executive order and the concerns of the technology and economic sectors about a potential backfire on the US. It is a kind of compromise. Washington obviously hopes that major allies will follow Biden's executive order. The UK's Sunak government has made cautious statements, stating that it is consulting business and the financial sector before deciding whether to follow suit.

In fact, China also has the ability to influence the extent to which Biden's executive order is implemented, as well as the extent to which the US will go in terms of "decoupling" from China. We are definitely not just passive recipients of US policies. American political elites are eager to "decouple" from China as quickly and deeply as possible, but they fear two things:

First, this will immediately damage the performance of relevant high-tech companies in the US, undermine their influence and further innovation. The current Biden administration, in particular, does not want to incur strong resentment from Silicon Valley and Wall Street toward the escalating "decoupling," which will ultimately lead to the loss of support for the Democratic Party.

Second, they are afraid of pushing China toward more resolute independent innovation to achieve breakthroughs in key technologies such as chips. If the US "decoupling" policy gives birth to major technological achievements in China, it means that Washington will completely lose the gamble: They originally wants to stifle China's high-tech development, but ends up strangling their own companies.

What China needs to do next is to fully unleash our innovation vitality, continuously reduce our dependence on high-tech products from the US, and prove that as long as we are determined to achieve independent innovation, we have the ability to accomplish things. We need to prove that being pressured by the US will only make us stronger. As long as there are several solid proofs of this trend, the US policy community will fall into unprecedented chaos, and their panic will be much more severe than when they saw the rapid expansion of the Chinese economy before Trump started the trade war.

Regardless of the future of China-US relations, the current battle will be the key battle that determines the future competition between China and the US. China can only win and cannot afford to lose. High-tech products such as chips are not isolated. The innovation power of China's entire manufacturing industry and the creative vitality of the whole society are the foundation for shaping these key achievements. When pressured by the US, our society needs to generate confidence and resilience from all directions, and we need to accelerate and seize every opportunity, rather than shrink and simply defend. Otherwise, the US will gain the upper hand in momentum, and we will truly be in a passive and defensive position.

We must see that the US is on the offensive, but its offensive is becoming weaker and weaker, and it is always hesitant with each step. What is presented to China are difficulties and risks, but also the dawn of victory. 

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The author is a Chinese media professional. opinion@globaltimes.com.cn 


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Thursday, August 10, 2023

TSMC: The global giant it didn’t aspire to be; US hijacks Taiwan's high-tech industries, squeezes island's economic future

 

FILE PHOTO: A smartphone with a displayed TSMC (Taiwan Semiconductor Manufacturing Company) logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

 

Coupled with current plans, TSMC will have factories in five countries spread over three continents, rivalling the sprawl of rivals Intel Corp and Samsung Electronics Co. 

 

A LITTLE over three years ago, Taiwan Semiconductor Manufacturing Co (TSMC) was among the world’s most geographically concentrated technology giants with almost the entirety of its capacity within a 300-mile radius.

Now, it is on the verge of becoming one of the most globally diversified chipmakers. This wasn’t the plan.

A new facility near Dresden, Germany, is set to begin operations in 2027, the Hsinchu-based company said yesterday.

Coupled with current plans, TSMC will have factories in five countries spread over three continents, rivalling the sprawl of rivals Intel Corp and Samsung Electronics Co.

These overseas plants add to the significant operations it has in Taiwan and the two existing sites in China. (For more than 25 years it has also owned a fab near Portland, which though profitable is small and not seen as a company success story.)

Having all its manufacturing close to home has always been an advantage for the made-to-order chip foundry.

The tight relationship between research and development, and factory operations, where engineers can easily shuffle between production lines, helped TSMC become a fast-moving supplier in a high-stakes industry. Dotting the world with fabs risked diluting this advantage.

But then TSMC’s true global expansion kicked off in May 2020 with the announcement of a new facility in Arizona, a project which was enhanced two years later to include a second plant at the site, taking total investment in the Southwestern state to US$40bil.

A venture with Japan’s Sony Group Corp, unveiled in 2021, took TSMC in a new direction. Instead of owning a factory outright, Sony Semiconductor Solutions Corp will take a 20% stake in a factory being built in Kumamoto.

Automotive components supplier Denso Corp later signed on to take a stake of over 10%. That plant is closer to Shanghai than Tokyo.

Dresden is a continuation down that path of working with clients to jointly own facilities, largely to supply the growing demand for components used in automobiles.

TSMC will invest up to €3.5bil for a 70% share of newly formed European Semiconductor Manufacturing Co.

Robert Bosch GmbH, Infineon Technologies AG and NXP Semiconductors NV each take 10%, and total capital expenditure is expected to be around US$11bil, with the money coming from equity, debt and German and European Union funding.

Since its founding by Morris Chang more than three decades ago, TSMC eschewed equity partnerships in favour of maintaining full control over its operations, and thus its destiny.

But the global winds have changed, and its new leaders, chairman Mark Liu and chief executive officer CC Wei, have had little choice but to adapt.

TSMC’s balance sheet is solid, its cash flow is stable, and its credit rating is high. It doesn’t need clients nor governments to hand it money in order to pay for these new facilities.

What it does need, though, is buy-in. These remote factories at locations many time zones from home require firm orders as well as a solid commitment from third parties motivated to ensure the company’s success.

Having the likes of Sony, Infineon and NXP on the ownership list ensures they have skin in the game, while government involvement should help secure political and economic support.

Suddenly, TSMC goes from being an under-the-radar Taiwanese supplier solely focused on a coterie of semiconductor clients, to a global entity with multiple stakeholders across numerous national and local jurisdictions. It’s already proving to be a difficult adjustment.

Liu last month announced the delay of its Arizona opening by about a year. Time spent navigating local regulations and a struggle for talent, including among vendors, means TSMC won’t kick off operations there until 2025.

Last week, the company signed an agreement with Arizona governor Katie Hobbs to follow a worker safety programme that’s stricter than federal rules, a sign that TSMC needs to keep adjusting to a changing regulatory landscape.

Continued concerns about pay and conditions among local workers means a labour dispute could flare up at anytime, a situation uncommon at home in Taiwan.

Also of surprise is the escalating scale of divergence between costs in the United States and Taiwan, which will likely force the chipmaker to charge clients like Apple Inc and Nvidia Corp significantly more for products made in Arizona.

The Japan plan appears to remain on track for production late next year, with a high chance a second fab will be added to the project. Yet despite the US$60bil to be spent in total by all parties, the new facilities will account for no more than 10% of global capacity.

And not all fabs are created equal; the best stuff will remain in Taiwan for the foreseeable future, with Dresden and Kumamoto both deploying much older production technology – which is fine because automotive chips don’t need anything more modern.

Still, these foreign partners have no reason to complain. Clients are getting a stake in, and access to, precisely the factories and know-how they need.

Governments, meanwhile, can tell their constituents that they’ve been successful in luring the world’s most important technology company to their shores.

TSMC is also a winner. Just five years ago, the company warned investors that the European Commission was looking into concerns about “alleged anti-competitive practices” in relation to semiconductor sales.

The US Fair Trade Commission was also showing interest, it was reported at the time. Nothing came of these probes, but it would be particularly awkward for regulators in either jurisdiction to now accuse TSMC of being a predatory tech giant when its management has bent over backwards (and spent billions of dollars) to set up shop on their turf.

These overseas plants also dampen the constant drumbeat among rivals that TSMC is overly concentrated in one place, and that governments and chip customers need to look elsewhere.

Now, the company is giving them that “elsewhere.” Half the world gets a piece of TSMC, and in return all the chipmaker had to do was lean into globalisation. — Bloomberg

Tim Culpan is a Bloomberg Opinion columnist covering technology in Asia. The views expressed here are the writer’s own. 

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RRUS attempts to cannibalize TSMC and hollow out Taiwan's chip industry R


 US attempts to cannibalize TSMC and hollow out Taiwan's chip industry. Cartoon: Carlos Latuff 

 

US hijacks Taiwan's high-tech industries, squeezes island's economic future

Washington has firmly taken grip over the Democratic Progress Party (DPP) authorities' mind when it comes to “relying on the US to seek secession,” while at the same time hollowing out Taiwan region's economy, and making the island a complete ...

 

Restricting investments in China, US is creating a 'dammed lake' for itself: Global Times editorial

The high-tech field is crucial for a country's future development prospects, but it also naturally possesses the new characteristic of interconnectedness in this era. It is unrealistic for any country to isolate itself and strive for research dominance in the field of technology. The future of the technology field belongs to countries that embrace the world with open arms. If the US fails to understand this, it will only get further away from its goal to “outcompete” China.

 

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