Suddenly we find ourselves in 2024, and it’s a muted beginning with no huge trends or issues shouting for attention. But there are some bellwether issues worthy of consideration.
Data security is a BIG DEAL for the Center and for companies operating globally, and it appears as if the regulations on the transfer by companies of data over the border to elsewhere are being implemented more from the perspective of security than economic development. The Financial Times reported this week that only around 25% of the applications made by companies for the movement of data across the border have been approved so far.
December saw the third biggest monthly outflow of foreign funds from China’s equity markets on record, as investors look to diversify away from the world’s second largest economy. That statement should be a contradiction, but unfortunately, right now it is not.
It was announced that visa-free travel between Thailand and China has been instituted, adding the Southeast Asian country to a list of several European countries, for whose citizens visa-free access to China was announced last month. This is presumably aimed at encouraging tourists and business people to visit China to help invigorate the economy, but it probably won’t feel like an earnest effort at changing the parameters unless a major entity like the United States, or the whole of the EU is included. And that seems, so far, very unlikely.
The Dutch Company, ASML, which produces the machines used to make semiconductors, hit a problem when the Dutch government revoked permission for the sale of some of its machines to a Chinese buyer, ahead of the planned deadline for such trades.
The bottom line to draw from all these points? Probably that decoupling remains a real thing, on both sides.
In these early days of the new year, and before the lunar new year comes into view, remember to stay warm.