APAC MONDAYS

GEOPOLITICAL RISK+GLOBAL MARKETS

APAC | GEOPOLITICAL RISK

In Xi’s China, the Center Takes Control of Foreign Affairs Exploring China’s new Central Foreign Affairs Commission. -The Diplomat

The question facing Chinese diaspora: for love of country or party? Beijing changes its tact towards overseas Chinese from appealing to their sense of kinship to preaching that true patriotism must include admiration for the Communist Party -SCMP

China depletes its ammunition belt with latest tariff threat Watching his back at home, Xi takes aim at American LNG -Nikkei

The Trump administration has already imposed or proposed tariffs on a total of $250 billion in Chinese products -- about half of its $505 billion in goods imports from China for 2017. China now targets a total of $110 billion, or 80%, of imported goods from the U.S. Washington still has plenty of room to crank up the pressure, but Beijing is starting to run out of targets.

"Working on the premises that U.S.-China trade relations don't escalate into a tit-for-tat imposition of tariffs across a host of sectors, LNG presents a real opportunity for the U.S. and China to forge common ground (and economic benefit)” @oxbowadvisory via Anchorage Daily News

Tit-For-Tat Becomes the Norm as U.S., China Dig In for Trade War -Bloomberg

Can Modi Keep Winning? As India gears up for the largest democratic exercise on the planet, what are the prospects for 5 more years of Modi? -The Diplomat

Abe arranging September talks with Xi, will skip Yasukuni: sources Abe also plans to avoid visiting Yasukuni Shrine in Tokyo on the Aug. 15 anniversary of Japan’s surrender in World War II, the officials said. The Shinto facility, which honors Japan’s war dead along with Class-A war criminals, is regarded by China as a symbol of the nation’s past militarism. -The Japan Times

US appreciates growth of democracy in Indonesia: Pompeo -The Straits Times

Reactionary ‘red flags’ tilt Vietnam to the Alt-right Ultra-nationalist movement rails against liberals, Catholics and the United States in a rally cry for more, not less, Communist Party repression -Asia Times

Duterte on Robredo as next president: She’s also good -Philstar 

“If you are careless, maybe you want a new president. She’s also good. No problem about that,” the Chief Executive said, adding: “Every Filipino is always good.”

Police fire tear gas on students as Dhaka protests enter eighth day Bangladeshi police fired tear gas on students occupying an intersection in central Dhaka on Sunday as thousands of protesters took to the streets for an eighth day to demand road safety measures. -DPA

APAC | MARKETS IMPACT + OPPORTUNITY

GLOBAL BUSINESS

Beyond tariffs: China’s ‘precision strikes’ on US businesses American firms in China report higher costs and much greater regulatory scrutiny, and fear a major drop-off in business from rising nationalism, observers say -SCMP

Google Plans to Launch Censored Search Engine in China, Leaked Documents Reveal Google is planning to launch a censored version of its search engine in China that will blacklist websites and search terms about human rights, democracy, religion, and peaceful protest, The Intercept can reveal. -The Intercept

Google Struggles to Contain Employee Uproar Over China Censorship Plans -The Intercept

Google in talks with Tencent for cloud services in China Tech titan actively seeking ways to re-enter market -Nikkei

How Chinese Cybersecurity Standards Impact Doing Business In China As bilateral U.S.-China tensions intensify, standards related to a new system of cybersecurity reviews are likely to be among the first tools Beijing may use to retaliate against U.S. companies in a trade war. -CSIS

PICTURE IT China Is Still Sorting Through Its Colorful Bike-Share Graveyards -The Atlantic

The Western Illusion of Chinese Innovation Many Western observers – in media, academia, and government – now portray China as a fierce competitor for global technological supremacy, with top-down industrial policies that are enabling it to stand virtually shoulder-to-shoulder with Europe and the US. This is a serious misrepresentation. -Project Syndicate

China’s 500th largest firm is first casualty of trade war with US The bankrupted Shandong-based company is owned by Shao Zhongyi, who was once Shandong’s richest man -Asia Times

India is threatening the made-in-China industry The signs of a shift are everywhere. China, the world’s mobile phone manufacturing hub, is swiftly losing ground to India. -Tech-in-Asia

There’s nothing new about Japan’s online backlash against tourists Still, when netizens talk — and moan — about tourism, they are still mostly talking about Chinese visitors to the country (which soon tips over into right-wing online spaces). However, this in and of itself isn’t new, nor is it limited to Japan — it’s just the perceived image of a tourist here. -The Japan Times

Three airlines still refer to Taiwan as a country despite ultimatum from China Chinese netizens are angry at Air Asia, Vietnam Airlines and Lion Air -Taiwan News

GLOBAL MACRO

Asia's New Stock-Market King Has Strong Profits, BOJ Support With Japan regaining its place as the second-biggest stock market amid growing trade tensions between the world’s two largest economies, investors expect the nation’s equities to garner more attention. -Bloomberg

Asia’s ‘big six’ who will be in big trouble if China pulls the yuan trigger Malaysia, Singapore, Philippines, Thailand, Vietnam and Indonesia are the most exposed if caught in the crossfire of the US-China trade war -SCMP

Hedge Funds Unnerved by Trade War Cut Oil Bets to 2-Year Low -Bloomberg

Cambodia's biggest port sees China coveting Japan's dominant role Fast-growing Sihanoukville harbor thrives amid Tokyo-Beijing rivalry -Nikkei