哈囉 – here you’ll find posts related to Hong Kong. That includes the territory, the culture, business, creativity and history. I lived and travelled to Hong Kong a number of times, so sometimes the content can be quite random.
In addition, I have long loved Cantonese culture and cuisine, so these might make more appearances on this category. I am saddened by the decline in the film and music production sectors.
I tend to avoid discussing local politics, and the external influence of China’s interference in said politics beyond how it relates to business and consumer behaviour in its broadest context.
Often posts that appear in this category will appear in other categories as well. So if Apple Daily launched a new ad format that I thought was particularly notable that might appear in branding as well as Hong Kong.
If there are subjects that you think would fit with this category of the blog, feel free to let me know by leaving a comment in the ‘Get in touch’ section of this blog here.
Sheryl Sandberg is leaving Meta. She has roughly 1.6 billion reasons never to work again – that isn’t lives ruined by Facebook, but her net worth on leaving Meta after 21 years at Google and Facebook building advertising sales operations teams.
Sandberg’s resignation has been a long time coming, and was repeatedly predicted since the early 2010s when the toxic nature of Facebook’s ad model became apparent. You had the sense that she viewed herself as a presidential candidate in waiting. Her exhortations to lean in were at odds with the ‘tech bro’ culture that still permeates Meta and other Silicon Valley firms. Sandberg leaves Meta with her reputation in tatters and with less chance of becoming president than More on Sheryl Sandberg leaving Meta here: Sheryl Sandberg calls it quits – by Casey Newton & Axios Login: Sandberg’s ad jackpot
Number of Hongkongers applying for BN(O) scheme rises 25 per cent in first quarter of 2022, likely from families applying before new school year | South China Morning Post – Some 123,400 Hongkongers have applied for pathway to British citizenship since January 31 last year, with 92 per cent of them successful. Canada, Australia have offered alternative routes, but immigration experts say BN(O) and Canadian programmes will remain most popular. – A few observations on this. There has been a strong historic connection between Hong Kong and Vancouver going back to at least the 1967 riots. The South China Morning Post used to have a Vancouver column until April this year. Prominent people like Li Ka-shing had their families there. There is a similar connection with the UK, though I found that I was running into more Canadians than British born Chinese during my time in Hong Kong. Secondly, the dominance of mainland Chinese in creating a threatening atmosphere for Hongkongers in Australia is a big issue
Ideas
Should Cities Disband their Police Departments? – ScienceDirect – the short answer social science data research says no they shouldn’t. The long answer. Unlike the UK, in the US large towns can have their own police forces. There are then county sheriffs departments and state police as well. Closing a ‘city police department just means less responsive policing with less crime solved, less transparent data indicating the quality of policing going on. Crime still happens.
FT’s How To Spend It magazine rebrands as big spenders go out of style | Financial Times | The Guardian – The How To Spend It name was created in 1967, when the FT’s first female employee suggested the wives of its readers might enjoy a section on how to spend their husband’s income. It later became a standalone magazine, riding the luxury goods – and financial services boom – of the 1990s and 2000s. Alice Pickthall, of Enders Analysis, told a 2018 Guardian long read that the magazine was best understood as the “Argos catalogue for rich people” – my issue with HTSI has been less about nice things and more about the lack of quality many of the items have in terms of design, build quality and longevity
Marketing
How the 968CS rebuilt the Porsche powerhouse | Financial Times – ‘You don’t understand: if we don’t get a car at under £29,000 then we’re dead’,” says Gaskell, now 63, a multiple non-executive director, investor and speaker – and a transatlantic rowing record-holder too. He got together with some colleagues to work out how to get a 968 priced at £28,995. “Out went air conditioning, electric windows, rear seat, rear wiper, boot lock – and the big electric driver and passenger seats were replaced with lighter ones.” They got it down to £28,975, then realised they had another problem: “Buyers wouldn’t like saying they’d bought a cheap Porsche.” The solution was to position it as a “lightweight” road-racer. “We lowered the suspension, quietly had a special steering wheel made for us by Italian manufacturer Momo – the factory would have gone nuts if they’d known – and called it the ‘Club Sport’. A couple of professional drivers reported that it was a fantastic driver’s car. We’d accidentally created a game-changer, and in 1993 it was named ‘Performance Car of the Year’.” – interesting tale about innovating in adversity. There are a some bits missing however. Porsche had form making lightweight cars like this, notably the Porsche 911 Club Sport from 1987. So there was a ready use case, concept and language that could be adapted for the cheap 968 rather than a completely new creation as implied by this article.
Media
Amazon to close China Kindle Store after losing out to domestic rivals | Financial Times – Amazon will leave behind a growing customer base of digital book lovers. More than 500mn Chinese listened to or read books on a digital device in 2021, according to research by the China Audio-video and Digital Publishing Association. China’s digital reading market generated more than Rmb40bn ($6bn) of sales last year, an increase of more than 18 per cent from 2020 – back when I started going to China there was a substantial trade in purchasing Kindle tablets from the US and Japan. For regulatory reasons Amazon China has been slow to get into e-books. So local competitors fuelled a parallel trade in Kindles. These tablets were then refreshed and pointed to local e-book stores. It must be galling to Amazon to know that not only did they lose out on e-tailing in China, but the subsidised Kindles from other markets built China’s rivals in e-book sales.
Davis Polk Asia chair withdraws from Hong Kong security law forum | Financial Times – Guessing that Davis Polk Asia didn’t do a thorough opportunity cost analysis before agreeing to participate in the Hong Kong National Security Law Forum. An alternative hypothesis that I have heard about Davis Polk Asia could be due to being really screwed globally and will ANYTHING for some billings. Even if David Polk Asia really desperate, I can’t imagine that there will be that much upside in the greater China market and maybe some backlash in the law firm’s other international and US domestic offices. The backlash happened as soon as the FT published news of their forthcoming participation. I can also imagine that the subsequent Davis Polk Asia withdrawal will cause blowback with mainland clients and government contacts. The smart play for Davis Polk Asia would have been to decline the place in the first instance. It is even more surprising when David Polk Asia could have looked at Mayer Brown pulling away from representing Hong Kong University last year was a case study in likely outcomes. Given that one would want solid wise heads in the senior staff of a law office rather than status seeking sycophants, the Davis Polk Asia chairman Mr Rogers doesn’t look like a credit to his firm. Discretion might have been the better part of valour in this case.
Shanghai lockdown exposes global supply chain strains | Financial Times – the Port of Los Angeles, for example, is monitoring data from China on energy consumption, traffic patterns and pollution, to understand how busy the country’s factories are so it can prepare for the volumes of cargo to come. “I’m on the phone most evenings with friends . . . in Shanghai telling me what’s happening on the ground,” – interesting how they’re having to rely on abstract data
As Q1 results disappoint, should brands look beyond China? | Advertising | Campaign Asia – brands were able to offset these losses thanks to the strength in North America and Europe. Aeffe, the parent company of Mochino, nearly tripled its net income in the three month period, as Europe (which represents almost one-third of its total revenue) jumped 37.5% thanks to Germany and the UK. Tapestry shares even climbed on May 12 after it posted that sales in North America rose 22% year-on-year, fully offsetting mid-teens decline in China. These two regions will be crucial as China slowly recovers from its worst Covid wave since 2020. Although the mainland is on track to become the world’s largest luxury market by 2025, the US is still in top spot, accounting for 31% of the global market (China accounts for 21%). As such, it is important for brands to continue building traction in North America and Europe to cushion against near-term losses in Asia
China Brief: Expanding State Power Still Tops Xi Jinping’s Agenda – The published speech shows how much of Xi’s economic thinking is about control, tied to what he sees as a necessary expansion of government power. The speech frames China’s problems as coming down to the “reckless expansion of capital,” or private industry, which can only be curbed by expanding the CCP’s power. That idea relates to one of Xi’s favorite terms from last year: “common prosperity,” achieved via the redistribution of wealth. Publishing the 2021 speech now may be an attempt to revitalize that language. Other Chinese officials, such as Premier Li Keqiang, are focused primarily on addressing economic issues, but party power still tops Xi’s agenda. One part of the speech may seem incompatible with its profession of socialist values: how conservative it sounds about welfare. Xi explicitly states that “common prosperity” isn’t welfare. His words also suggest a fear of overpromising what the government can deliver, but they also echo an idea I’ve heard from rich and powerful people in China—that people living in democracies never vote to cut welfare benefits because the public is lazy and entitled
Consumer behaviour
“Macho pink” menswear takes over in China | Vogue Business – “Macho pink” can be seen as a kind of “rebellion”, however, this rebellion currently remains limited to product categories considered mainstream for men, such as e-sports, sneakers and electronics. As male consumers in China put more emphasis on self-expression, this is validated to some extent by pink goods. – this reminds me of the bold neon colours of 1980s skiwear brands like Nevica. More on the social impact here: Millennial Pink Begone, Enter the Age of Hot Pink Fury | High Sobriety
Liberals Should Be Worried About the Conservative Comedy Scene – POLITICO – Conservative humorists aren’t merely catching up to their liberal counterparts in terms of reach and popularity. They’ve already caught them — and, in some cases, surpassed them, even as the liberal mainstream has continued to write conservative comedy off as a contradiction in terms. “[Liberals] are ceding ideological territory in the culture wars to the right via comedy,” Marx told me, noting that once-beloved liberal comedians like Stewart are struggling to find their footing in the treacherous landscape of post-Trump humor. “This thing that we thought we have owned for the last 20 years has been leaking, and the borders are slowly getting shifted.”
Company Reviews on Glassdoor: Petty Complaints or Signs of Potential Misconduct? – HBS Working Knowledge – Whether it’s Theranos and its fraudulent blood testing technology, Wells Fargo and its fake financial accounts, or Volkswagen and its bogus emissions data, a whistleblower eventually comes forward to expose the behavior, and executives are held accountable. “But what you start to realize is that the problems that have been uncovered have been going on for a very long time,” says Dennis Campbell, a professor of business administration at Harvard Business School. Far from being just a few bad apples, most business improprieties occur within a widespread culture of bad behavior—or at least, a lot of people looking the other way as misconduct is taking place, he says.
Koreans Think AI Is the Future – The Chosun Ilbo – 1/ artificial intelligence 2/ robotics 3/ future mobility 4/ hydrogen fuel 5/ energy 6/ biotechnology 7/ aerospace 8/ new materials 9/ batteries 10/ semiconductors – skews to Korea’s current strengths in semiconductors, hydrogen fuel cells and robotics
Luxury
LVMH-owned watchmaker Tag Heuer to accept crypto payments | Vogue Business – terrible timing given the bear market in crypto at the moment. Its also part of the odder financial aspects happening in the watch sector. From companies going vertical into the pre-owned marketplace to Breitling adopting a car lease type model for watches
Marketers, investing in market research is not superfluous – there is the big initial deep dive that happens when a new CMO arrives or a new product or market is contemplated. Second, there is the lesser but more common annual research that updates the organisation on the market, its segments and associated behaviour that feeds annual market planning. Finally, there is the more occasional inquiry into a specific micro issue that springs up. A pricing problem, a sudden reduction in market share or some other occasional issue that demands customer insight to guide management action
Hong Kong Considers Blocking Telegram Messaging App, Local Paper Says – Bloomberg – Hong Kong authorities are deliberating whether to curtail public access to the messaging service Telegram, the Sing Tao Daily reported, potentially reviving fears the former British colony is moving closer toward Beijing-style internet controls. The Privacy Commissioner for Personal Data is considering invoking regulations for the first time to restrict access to a platform it found to be rampant with doxxing, the local newspaper reported Tuesday. The widespread doxxing — or online exposure of sensitive and personal data — was aimed at government officials as well as citizens, the newspaper said, citing unidentified people.
Chinese Hackers Tried to Steal Russian Defense Data, Report Says – The New York Times – The emails landed on March 23 in the inboxes of scientists and engineers at several of Russia’s military research and development institutes, purportedly sent by Russia’s Ministry of Health. They carried a subject line that offered seemingly tantalizing information about a “list of persons under U.S. sanctions for invading Ukraine.” But the emails were actually sent by state-sponsored hackers in China seeking to entice their Russian targets to download and open a document with malware, according to a new report to be released Thursday by the Israeli-American cybersecurity firm Check Point… The Chinese campaign targeted Russian institutes that research airborne satellite communications, radar and electronic warfare
Bongbong Marcos aka Ferdinand Romualdez Marcos Jr is the son of former Filipino president Ferdinand Marcos. The Asia Society did a really good talk on the election which explains what got Bongbong Marcos elected as president of the Philippines. Yes there was a lot of misinformation and sketchy tactics by the Bongbong Marcos campaign, but there is more going on.
Much of the issue seems to be that Marcos is viewed as standing against local Filipino dynasties that have most of the economic power in the country. I found this particularly interesting as Bongbong Marcos and his running mate Sara Duterte are both from dynasty families.
Marcos’ mother Imelda had a dad who as a lawyer, an uncle who was a supreme court judge, a cousin who was in the lower house of parliament and her brother was a provincial governor. On his father’s side, Bongbong’s grandfather was a lawyer and politician, and the mother was a school teacher. While both of Bongbong’s parents had known poverty, they could rely on a strong powerful network of family ties to help get them good jobs. Ferdinand Marcos even managed to get away with murder in 1939.
Bongbong Marcos is supposed to be stuffing people he can trust through blood ties into key government and political positions such as speaker of the house and ministerial roles.
Opposition party strategy
The Marcos campaign managed to play on nostalgia for older voters and addressed young voters through TikTok. The opposition party strategy failed in online marketing. Misinformation was an aggravating factor.
Corrosion of liberal democracy
The average Filipino voter doesn’t feel invested in democracy in the same way that the middle class would be. 7 out of 10 surveyed by Pew wouldn’t mind an authoritarian leader like Bongbong Marcos – so Marcos was pushing against an open door. The middle classes are looking for ‘order and discipline’ rather than dysfunction. They think that economic success and freedom are mutually exclusive. They look to the United Arab Emirates and Singapore as exemplars. There are similarities with middle income countries like Modi in India, Erdoğan in Turkey, Urban in Hungary and Bolsonaro in Brazil.
From an economic perspective what does Bongbong Marcos mean? Noah Smith made their most optimistic take on the economics of the Philippines Can the Philippines sustain its growth? – by Noah Smith. An authoritarian Bongbong Marcos government might see the departure of foreign companies who have been responsible for powering the past two decades of economic growth in the Philippines. The only reason why you might not see a foreign multi-national company exit would be ‘de-Chinaisation’ of global supply chains.
Siemens to discontinue business in Russia – eeNews Europe – Siemens stopped all new business with and international deliveries to Russia and Belarus. The comprehensive international sanctions and the current and potential countermeasures are affecting the company’s business activities in Russia – especially its railway service and maintenance business. For companies that are mainly active in B2B business, the decision to completely exit a region is more difficult to make than for companies that sell consumer goods. The reason: contracts for the maintenance of industrial plants and trains are concluded for many years, sometimes decades – this is an opportunity for Chinese railway businesses
Firms as Revenue Safety Nets: Political Connections and Returns to the Chinese State | The China Quarterly | Cambridge Core – restructured state-owned enterprises (SOEs) with political connections pay more tax than their assessed amount, independent of profits, in exchange for more preferential access to key inputs and policy opportunities controlled by the state. Examining taxes rather than profits also offers a new interpretation for why China continues to favour its remaining SOEs even when they are less profitable – it also explains why apparently inefficient SOEs get so many bank loans from state owned banks
California’s demography is at odds with the old California Dream | The Economist – The population fell to 39.2m in the year to January 2022, 400,000 lower than in 2020 (see chart). In 1990, the number of Californians had been rising by a robust 2.5% a year. The biggest contribution to the decline came from migration. In 2021, the net change (people moving out of state minus those moving in) was twice as large as the number of covid deaths and four times the population’s natural change (the excess of deaths over births). Big cities have been hit hardest; the population of Los Angeles County has fallen for the past four years. Even if these declines were no worse than average—and national demographic trends are slowing, too—they might seem worse in a state where, as its governor once said, “the future happens here first”. In fact California’s demography is worse than average. The state’s total fertility rate (tfr, an estimate of the number of children women will bear over their lifetimes) fell from 2.2 in 2006 to 1.5 in 2020, more than in America as a whole, where the fall was from 2.1 to 1.6.
Arrest of Cardinal Zen send chills through Hong Kong’s Catholic church | Financial Times – a diocesan administrator tendered their resignation over a posting on the “Catholic Way” Facebook page on April 27. The post, which was quickly deleted, summarised a television interview in which a local priest accused China of attempting to control religion in Hong Kong. The diocese said the administrator had resigned of their own accord. The police investigation of the 612 Humanitarian Relief Fund, of which Zen was a trustee and which supported pro-democracy protesters, could also have implications for Hong Kong’s legal system. Police said on Thursday that they had complained to the Bar Association and Law Society about alleged misconduct by unnamed lawyers who took on the fund’s cases
Talking about white privilege online can backfire – Futurity – The relationship between question language and the content of the responses was mediated by their support or opposition to renaming buildings. This suggests that, rather than causing people to think differently about the world, the term white privilege causes an emotional reaction which then affects their response, Quarles says. Inclusive ways of speaking about race online, such as the term “racial inequality,” are more likely to create a sense of shared purpose, he says. Policymakers who want to promote racial equity should consider how their language can either unite people or alienate potential allies, he says. – but this doesn’t understand that white privilege as a term comes from left-wing thinking and isn’t designed for dialogue. The emotional reaction is elicited by design as part of the narrative of ideological struggle. Either the party is worn down to the ideology or they are part of the enemy, which is then followed to its conclusion in Stalinism
Recovery for Bosch as it warns of slowdown – eeNews Europe – It’s worth taking a closer look at how the war affects climate action. My assessment is nuanced: in the short term, the acute conflict will slow progress in reducing carbon emissions, but in the long term, it will accelerate the technological transformation in Europe – Bosch also particularly keen on green hydrogen
Lex in depth: why the luxury market needs to hedge against China | Financial Times – Customers at the exclusive Shinsegae department store in the Gangnam district of Seoul prefer to display their wealth discreetly. But their high spending was exposed to the wider world when it revealed annual sales had topped $2bn in 2021 — the highest turnover for a single store in the world. It outpaced even Harrods in London, which before the coronavirus pandemic had long held the world’s top spot
EU plans to require backdoor to encrypted messages for child protection | AppleInsider – “When executing the detection order, providers should take all available safeguard measures to ensure that the technologies employed by them cannot be used by them or their employees for purposes other than compliance with this Regulation,” says the proposal, “nor by third parties, and thus to avoid undermining the security and confidentiality of the communications of users.” – congratulations EU you’ve just empowered authoritarian regimes and risked the lives of millions elsewhere
Will supply chain technology facilitate problematic global supply chain management?
Investors Are Piling Into Supply-Chain Technology – WSJ – Newly minted unicorns, or companies that exceed $1 billion valuations, in the logistics sector in 2021 include e-commerce fulfillment specialist ShipBob Inc., digital warehouse and distribution provider Stord Inc. and Flock Freight, a platform that matches shipper loads to trucks and is backed by a venture arm of Japan-based conglomerate SoftBank Group Corp. Backers including big investment funds are pumping money into logistics technology at a rapid pace, driving up valuations for digital-focused ventures across freight, delivery and warehousing. The influx of cash is giving startups in a once-overlooked sector expanded access to capital to build out their businesses, particularly for the top companies that have already developed their core products, according to venture-capital executives who focus on logistics and supply chains. Supply-chain technology startups raised $24.3 billion in venture funding in the first three quarters of 2021, 58% more than the full-year total for 2020, according to analytics firm PitchBook Data Inc. Besides venture-capital firms, backers included global investment managers like Tiger Global Management LLC and Coatue Management LLC and the venture arms of large corporations such as shipping giant A.P. Moller-Maersk A/S and Koch Industries Inc. And then you have Venture capitalists chase industrial tech start-ups as supply shocks widen | CNBC – this reminds me of the B2B dot com frenzy around companies like GoIndustry, i2 Technologies and JDA Software / Blue Yonder.
Supply chain technology underpins supply chain management (SCM). SCM as a term sprang out of management consultancy Booz Allen Hamilton in 1982. But the originals of supply chain technology go back much further. Railway companies were experimenting with barcode type readers with British Rail having a system that read the codes on trains passing at 100mph error free. This system was eventually shut down when British Rail was privatised. In the US they were using KarTrak in the late 1960s, but that was later abandoned. The codes were incorporated into the computer software used to schedule freight rail transport. Shipping containers sprung out of work done for the US military and were proved successful in Korea. The standards for the ‘intermodal’ container where hammered out from 1968 through 1972 covering everything from the containers themselves to safe handling. So you had a standard box and a method of tracking it, which is at the core of supply chain technology.
Containers did a number of things:
It helped prevent ‘shrinkage’. Seiko no longer had to worry about shrinkage due to dockers kicking in the corner of a crate to steal a watch or ten and sell them down the pub.
It encouraged automation of docks and handling, reducing the amount of unskilled labour required
Simplified freight forwarding and handling through standardisation
Facilitated easier global supply chains. Goodyear would know how many tractor tyres it could fit in a 40 foot trailer and ship from Singapore. The ports of Singapore and Hong Kong managed to parlay their use of logistics management software to move containers faster, which proved to be a competitive advantage for a number of years, even after Hong Kong deindustrialised with the mainland opening up
Once logistics management was in place, attention could be turned to sourcing, procurement and the integration of enterprise resource planning to provide an end-to-end picture through supply chain technology. The Japanese developed a lot of management practices designed to master supply chain management and these practices drove a wider demand for supply chain technology.
Packet network infrastructure provided a way to connect systems from channel partners, intermediaries and third party suppliers with a company through a standard interface for supply chain technology to work. What is called EDI or electronic data interchange. The rise of the web made it even easier which is why you had a plethora of supply chain technology companies to simplified the process of EDI. They democratised supply chain technology.
It also allowed retailers like Tesco to use supply chain technology to become vertically integrated from upstream suppliers and downstream customers.
Divergent views on China’s investment landscape | Financial Times – JPMorgan last month called China’s internet sector, once an engine of growth, “uninvestable”. Many big investors have headed for the exits. This week we revealed that Weijian Shan, the chair of PAG, a $50bn fund and one of Asia’s biggest investors, has diversified away from China.
The age taboo in workplaces means we miss out on talent | Financial Times – Research by two Harvard psychologists, Tessa Charlesworth and Mahzarin Banaji, suggests that negative stereotypes of ageing are actually more persistent than those about race and gender. Drawing on data from more than 4mn tests of conscious and unconscious bias, they have found that attitudes to sexual orientation, race and skin tone have improved during the past decade, compared to stubborn biases about age and disability, and increasing negativity about people who are overweight. Charlesworth and Banaji predict that anti-gay bias could reach “neutrality” in 20 years’ time, but that on current trends it will take 150 years for the same to happen to ageism. The raw reality is that older workers tend to be more expensive than younger ones, and are more vulnerable to cuts to middle management. But it may be a false economy to lower initial salary costs by hiring the young, if familiarity with procedures and teamwork are lost
FMCG
Investigating the Pink Tax: Evidence Against a Systematic Price Premium for Women in CPG by Sarah Moshary, Anna Tuchman, Natasha Bhatia :: SSRN – We find that women’s products are more expensive in some categories (e.g., deodorant) but less expensive in others (e.g., razors). Further, in an apples-to-apples comparison of women’s and men’s products with similar ingredients, the women’s variant is less expensive in three out of five categories. Our results call into question the need for and efficacy of recently proposed and enacted legislation mandating price parity across gendered products. – so there is actually a ‘blue tax’ rather than a pink tax
British Historian Antony Beevor: “Putin Wants to Be Feared – Like Stalin and Hitler” – DER SPIEGEL – the liberal West is now facing a decline, and even possibly a collapse, in confidence in parliamentary democracy. The heroic resistance of Ukraine is perhaps the only hope that we will recognize in time the dangers of the general slide towards authoritarianism in an increasingly Manichaean world – that is to say, a new dualism of two power blocs confronting each other: one with a free and liberal stance, and one without.
The cognitive dissonance of corporate life | Financial Times – employers’ efforts to drag people back into the office by offering them “perks” from free snacks to company swag. One particularly eager (and rich) organisation offered workers who were willing to trek back in the chance to win a Tesla. But Spiers, like me, isn’t biting. “I’ve come to think of these corporate toys and rewards as the work equivalent of the cheap prizes you win at a carnival after emptying your wallet to play the games,” she writes. “The difference is that the point of the carnival is to have fun and the prizes are incidental. In the workplace, this is just a laughably terrible trade-off. Who wants to give up the two hours a day they gain by not commuting for a free coffee mug? – interesting challenge that probably only a recession will right
Indonesia’s new law removes redtapes for foreign investors | DigiTimes – With abundant natural resources and young labor, Indonesia attracts – and needs – more foreign investment. The three largest foreign investors in Indonesia are Singapore, China (including Hong Kong), and Japan. Data provided by Indonesia’s Ministry of Investment (BKPM) showed that in the first three quarters of 2021, Singapore accounted for 32% of the total foreign investment, Hong Kong 13.8%, China 10%, and Japan 7.7%. – its also a great option for the move away from Chinese manufacturing
Crypto crackdown stifles China’s ability to offshore cash | Financial Times – With the government applying more scrutiny to digital asset transactions, one of the oldest and most conventional methods to bypass capital controls is gaining popularity: the luxury collectible trade. While it’s difficult to bring suitcases filled with cash through customs, a Tang dynasty-era vase or a couple of Patek Philippe watches can easily pass as personal belongings. Rich buyers can purchase them in China and resell outside the country. Indeed, demand for designer time pieces is taking off, high-end watch sellers in China told the FT. One wealthy Chinese heir also told the FT about another existing loophole, in which Chinese developers building condo projects in Thailand or Malaysia market them at home, and accept renminbi. Once properties are purchased, they can be sold locally into currencies that can be more easily exchanged into dollars – this probably explains why auction houses Sotheby’s and Phillips have expanded their Hong Kong operations
RupertMurdoch’s Sky realised that you could buy football rights for far more than anyone had ever thought of paying before, and you could make your money back by selling the games on subscription instead of pay-per-view or advertising, and you would be able to deliver that subscription using encrypted satellite channels. This was a big deal, both for Sky and for the UK Premiership league, and it was the beginning of something much bigger.
Skyused technology as a crowbar to build a new TV business. Everything about how it executed that technology had to be good, and by and large it was. The box was good, the UI was good, the truck-rolls were good, and the customer service and experience were good. Unlike American cable subscribers, Sky subscribers in the UK are generally pretty happy with the tech. The tech has to be good – but, it’s still all about the TV. If Sky had been showing reruns of MASH and I Love Lucy no-one would have signed up. Sky used tech as a crowbar, and the crowbar had to be good, but it’s actually a TV company.
I look at Netflix in very much the same way today. Netflix realised that you could spend far more moneyon far more hours of scripted drama than anyone had ever spent before, and you could (hopefully) make your money back by selling it on subscription directly to consumers instead of going through aggregators, using a new technology, broadband internet, that both gave you that access and made it possible for people to browse that vast selection of shows – and this: Ads are coming to Netflix: What do top media buyers and analysts think? – It’s plausible that Netflix will play a key role in driving the roll out of hybrid AVOD/SVOD around the world. Today, such models are mostly found in the U.S. and in Asia, but should Netflix add this on a global basis, it could be the next big thing. It’d force others to move beyond pure paid-for streaming models. I’ve long argued that it is unsustainable to expect customers to buy more than five SVOD services — so hybrid models are part of the solution as it eases the pressure on consumerwallets.
Ad agencies have persistently asked Netflix over the last few years to start running ads on the service. But they’ve been firmly against this until now. However, as Netflix management said on the investor call, what has changed is that this is a proven model that works: Hulu, HBO Max and Disney+ are doing it, so ofcourse
Singaporeans must benefit’: expats fleeing Hong Kong meet rising resentment | Financial Times – Chia is not alone in holding anti-expat beliefs. Over the past decade, perceptions that international employers have discriminated against locals have placed increasing pressure on the government to clamp down on immigration. While some anger has been directed towards manual labourers from elsewhere in Asia, Singaporeans are also frustrated by the significant proportion of westerners that make up the city’s elite workforce. After the recession triggered by the coronavirus pandemic refocused attention on employment and inequality in Singapore, the discontent has intensified. Experts warned that an influx of white-collar staff from Hong Kong risked deepening tensions, complicating Singapore’s bid to attract foreign money and talent. – Singapore’s answer to populism?
The military race for low Earth orbit satellites – and why China is behind | South China Morning Post – LEO satellite broadband projects going on in addition to Elon Musk’s StarLink – In Europe, Germany-based Airbus Defence and Space has teamed up with satellite internet firm OneWeb to provide services to the military. Canadian firm Telesat, partly funded by Ottawa, is eyeing the US Defence Department as a customer for its global LEO internet service, which is expected to start in 2024. Amazon’s Kuiper project also has been approved to launch 3,236 satellites but has been tight-lipped on its plans in the defence market. In China, LEO satellite internet is a fledgling industry working to connect remote parts of China and countries involved in the Belt and Road Initiative. GalaxySpace, a private start-up in a field of state-owned giants, launched China’s first LEO broadband constellation comprising six satellites in March. But state media reports have described them as commercial and made no reference to military services. Separate state-owned enterprises also launched test satellites for the Hongyun and Hongyan LEO broadband projects in 2018 but little has been said publicly about them since. Another state-owned company, China Satellite Network Group, aims to create a Chinese version of Starlink but was only formed last year
An interesting essay on the nature of scientific slow down that applies as much to applied innovation as well – Scientific slowdown is not inevitable – Works in Progress – The most popular version of the low-hanging fruit model is that we are picking fruit at a slower rate because the higher-up fruit are harder to get to. You can only invent fire, the wheel, or a flint axe once. This story says that declining research productivity is inevitable. The fact that we once saw increasing scientific progress is because we were continually increasing inputs: adding more researchers, more research tools and technology. But now research is getting so much harder that even this is not enough. But another explanation for falling innovation ‘yields’ is that we are getting worse at picking it, despite the progress in picking methods that has happened. We’ve handed in our stepladders for footstools, without realising it. Our recent decline in innovation vibrancy might be explained by ideas becoming inherently harder to find, but it may just as easily be explained by us becoming worse at finding them. – The scientific slow down is real and is occurring across disciplines:
Pharmaceutical research is taking longer and there is a patent cliff on blockbuster drugs
Each process change in semiconductors costs more money and takes more time
Software takes more lines of code
But the scientific slow down might also be down to problems with incentives. Technology executive and engineer Judy Estrin talked about the way ‘hard innovation’ is no longer invested in compared to ‘soft innovation’. Innovation itself has become financialised with blockchain being like a snake eating its tale. The scientific slow down could be as much related to the incentives and choices that drive research. The scientific slow down could also be down to the divorce between developing and making things. Silicon Valley is no longer making silicon. So it is harder to foster an eco-system to deal with scientific slow down.
China Will Be Deglobalization’s Big Loser by Minxin Pei – Project Syndicate – China was headed toward at least a partial decoupling with the United States well before Russia invaded Ukraine. And it has been seeking to ensure that this process happens on its terms, by reducing its dependence on US markets and technology. To that end, in 2020 China unveiled its so-called dual-circulation strategy, which aims to foster domestic demand and technological self-sufficiency. And yet, last year, China was still the world’s largest exporter, shipping $3.3 trillion in goods to the rest of the world, with the US its leading export market. In fact, overall trade with the US grew by more than 20% in 2021, as total Chinese trade reached a new high. Trade with the European Union also grew, reaching $828 billion, even as disagreements over human rights torpedoed a controversial EU-China investment agreement.
Cleaning Up Streetwear’s Act | High Snobriety – the European Commission are proposing new standards which would dictate how durable apparel would need to be in addition to bans on the destruction of unsold materials. This comes at a time when a cavernous dichotomy exists between the cohort of people who require their products to be sustainably minded and the growing number of consumers who succumb to the whims of fast fashion led by retailers like Shein mushrooming to a $100 billion valuation
