>> APAC Mondays

GEOPOLITICAL RISK + GLOBAL MARKETS

WHAT YOU NEED TO KNOW

GLOBAL RISK

Will Trump's Visit to Asia Mark the Moment US Leadership in the Region Is Irrevocably Ceded to China? Trump must show that he can think strategically and not just transactionally to avoid the worst. -The Diplomat

What Trump is missing by skipping the DMZ A first-hand look at the 'surreal,' 'eerie' and tension-filled border zone between the Koreas would be a valuable experience for the president -Politico

Asia’s New Entente Just as Germany’s rapid ascent prior to WWI spurred a “triple entente” among France, Russia, and the UK, China’s increasingly aggressive behavior is creating strong impetus for the Asia-Pacific democracies to build a more powerful strategic coalition. This goal should become the centerpiece of these countries' regional policies. -Project Syndicate

CHINA RISK

Riding high, Xi looks to soothe Trump as U.S. pressures China When they met at U.S. President Donald Trump’s Mar-a-Lago estate in April, China’s President Xi Jinping found a way to charm the mercurial former real estate mogul. Trump hailed the “good chemistry” of the sunny summit in Florida and predicted “lots of very potentially bad problems will be going away.” -Reuters

7 Do's and Don’ts for Trump’s China Trip Here’s what the president should and should not say in Beijing. -Politico

Towards a world-class Chinese military by 2050 -The Straits Times

Xi’s new power won’t stop dissent Chinese leader's efforts to curb journalism and social media could be his largest mistake yet -Reuters

China Has Upper Hand, While U.S. Is Hobbled by Trump Xi Jinping, who may be the strongest Chinese leader since Mao, plays the high cards on Korea. -Bloomberg View

HONG KONG RISK

China extends national anthem 'disrespect' law to Hong Kong China’s largely rubber-stamp parliament formally extended a law banning disrespect of the national anthem on Saturday to cover Hong Kong, a move that critics have said undermined the Chinese-ruled city’s autonomy and freedoms. -Reuters

JAPAN RISK

Trump, Abe to tout alliance amid North Korean tensions US and Japanese leaders aim to dial up pressure on rogue state The U.S. and Japanese leaders seek to showcase a solid bilateral alliance in a summit here Monday as they confront increasing threats from a North Korea eager to drive a wedge between the two countries. -Nikkei

Trump in Japan stresses unity on North Korea; talks trade, too U.S. President Donald Trump ramped up his tough rhetoric against North Korea when he arrived in Japan on Sunday, saying the United States and its allies are prepared to defend freedom and “no dictator” should underestimate U.S. resolve. -Reuters

Election shows Japan is more united than ever When I came to Tokyo last year, two real estate agents, both women in their 40s, took me to check apartments. It went well. I found one I really like. From them, I heard the name of Yuriko Koike for the first time. The two ladies were going to vote for her to be the governor of Tokyo. I still remember their enthusiasm for her. “She is going to win.” They were very certain. As we all know, she did. -The Japan Times

KOREAS RISK

Pentagon says securing North Korean nukes would require U.S. ground invasion -The Japan Times

North Korea calls for a halt to 'brutal' sanctions North Korea called on Friday for a halt to what it called “brutal sanctions”, saying the measures - imposed after its latest nuclear test - constituted genocide. -Reuters

TAIWAN RISK

Ian Easton on Military Dynamics in Cross-Strait Relations Just how likely is a war over Taiwan? Though North Korea dominates the headlines today, tensions across the Taiwan Strait continue to play out amid lingering concerns about potential military conflict involving not just China and Taiwan, but the United States as well. -The Diplomat

Act lifting restrictions on foreign workers is passed The Legislative Yuan yesterday passed the new Act Governing Recruitment and Employment of Foreign Professionals (外國專業人才延攬及雇用法), which allows foreigners interested in working in Taiwan to extend their work visa, lifts the restriction on the minimum duration of their stay and includes faster enrollment in the National Health Insurance system. -Taipei Times

SOUTHEAST ASIA RISK

China says hopes U.S. can 'help, not cause problems' in South China Sea -Reuters

Vietnam: A Tale of Two APECs As Asia comes back to Vietnam to talk economics, Hanoi navigates its own rough economic waters. -The Diplomat

Jakarta open to more cooperation with Singapore Speaking to reporters after talks with Ambassador Anil Kumar Nayar from Singapore, Mr Sandiaga said that while land reclamation was not raised at the meeting, it could be one of many areas the two sides may discuss in the future. -The Straits Times

APAC || GLOBAL MARKETS IMPACT + OPPORTUNITY

GLOBAL BUSINESS

Ex-VP of Alibaba Porter Erisman on clash of ecommerce models in Asia, costly mistakes -Tech-in-Asia

Tech giants primed the explosion of unicorns in China Baidu, Alibaba, Tencent, JD.com fund nearly half of Chinese billion-dollar startups -Nikkei

Great Wall buys into lithium miner, eyes China's green target Automaker to secure stable supply from Australia for electric car batteries -Nikkei

Qualcomm dispute hurts development of 5G: minister -Taipei Times

Teva's Misplaced Chinese Passion Teva's spokespeople denied the companies have any current agreement on a China joint venture. The non-denial denial suggests this is far from a final deal. In any case, Teva should probably take a closer look before signing on the dotted line. -Bloomberg

Sprint, T-Mobile talks collapse as Masayoshi Son goes it alone –The Japan Times

Broadcom Explores Deal to Buy Chipmaker Qualcomm -Bloomberg

Indonesia’s digital economy will thrive as small businesses come online, says gov’t -Tech-in-Asia

Amazon allowed by law to undercut Australian businesses: regulator Competition laws will allow Amazon to undercut local businesses with loss-making prices when it opens for business in Australia, expected to be later in November, the Australian competition regulator said on Saturday. -Reuters

GLOBAL MACRO

China's Central Bank Chief Renews Warnings About Financial Risk China’s financial system is getting significantly more vulnerable due to high leverage, according to central bank governor Zhou Xiaochuan, who also flagged the need for deeper reforms in the world’s second-biggest economy. -Bloomberg View

China’s central bank is developing its own digital currency, even as it bans bitcoin and private cryptos China’s central bank is conducting research to issue the country’s own sovereign digital currency, a move in parallel with similar efforts ongoing in Russia, even as the government has doubled down on banning the use and exchange of bitcoin and other cryptocurrencies. -SCMP