APAC MONDAYS

GEOPOLITICAL RISK+GLOBAL MARKETS

APAC MARKETS | RISK REALIZED = IMPACT + OPPORTUNITY

GLOBAL BUSINESS

Huawei poses security threat to Australia's infrastructure, spy chief says Australian Signals Directorate chief says using ‘high-risk vendor equipment’ could pose threat to water supply and electricity grid -The Guardian

NOTA BENE US INC. - CHINA INITIATIVE FACT SHEET The National Security Division (NSD) is responsible for countering nation state threats to the country’s critical infrastructure and private sector. In addition to identifying and prosecuting those engaged in trade secret theft, hacking and economic espionage, the initiative will increase efforts to protect our critical infrastructure against external threats including foreign direct investment, supply chain threats and the foreign agents seeking to influence the American public and policymakers without proper registration. -U.S. DOJ

EU INC. European businesses hope China launches reforms to improve market access at Shanghai trade fair 500 European companies among 2,800 firms from 130 companies taking part in the inaugural China International Import Expo -SCMP

SMART JAPAN INC. Southeast Asia passes China in luring Japanese staff and money Trade war pushes Panasonic and others to relocate -Nikkei

Buyout firm Cerberus to buy SGI for foothold in frontier markets Singapore-based SGI, which does not disclose its assets under management, invests in countries such as Ethiopia, Georgia, and Mongolia. These are considered earlier in their economic development than emerging markets like China and India. -Reuters

INCREDIBLE INDONESIA? Indonesia has lost focus in improving investment climate: BKPM head -Jakarta Post

VIRTUAL TAXES; REAL MONEY Malaysia mulls digital tax to regain ‘Asian tiger’ status. Here’s what it means -Tech In Asia

Goldman says 1MDB dealings may still result in penalties -Reuters

Bangladesh fights for future of its garment industry Sector that earns 83% of country's export revenue faces intensifying competition -Nikkei

GLOBAL MACRO

The Reforms China Needs Under pressure from Donald Trump’s tariffs, China might be tempted to try to stimulate aggregate demand using short-term measures, much as it did after the 2008 global economic crisis. A better strategy, however, would be to focus on structural reforms. -Project Syndicate

US-CHINA TRADE November 2018 Trade Bulletin -USCC

Trade war: Chinese exporters’ front-loading beats US tariffs – but for how long? As manufacturers operate flat-out to fulfil US orders brought forward to avoid tariffs, the possibility of a sharp fall in demand in 2019 looms large -South China Morning Post

JANUARY 1, 2019 + 25% = ESCALATION -USTR

Japan’s busy year on trade likely to shake up the economy for years to come -The Japan Times

JAPAN OPENING? Abe bets big on adding foreign workers New visa rules aim to tackle labor shortage but come with political risks -Nikkei

Japan expects acceptance of 40,000 foreign workers in first year of proposed new visas rules The new plan to allow in foreign workers, however, has drawn criticism from opposition parties, who argue the government hasn’t yet figured out how to integrate foreign nationals into still-conservative Japanese society. -The Japan Times

Hong Kong plans sandbox for crypto exchanges -Tech In Asia

DATA LOCALIZATION Vietnam releases cybersecurity draft The draft requires firms providing a range of services, including e-mail or social media, to set up offices in Vietnam if they collect or analyze data, let their users conduct anti-state actions or cyberattacks and if they fail to remove content deemed anti-state, fake, slandering or inciting violence. -Taipei Times

Shipping regulators plan to cut greenhouse-gas emissions Ironically, the matter is made more urgent by the decision of the International Maritime Organisation (IMO), the United Nations body responsible for the world’s shipping, to reduce the amount of sulphur allowed in bunker fuel from 3.5% to 0.5% by 2020. -The Economist