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The shock entrance of DeepSeek in the race to develop advanced artificial intelligence has put the world on notice as to China’s innovation prowess, a high-ranking Beijing official said Thursday.The startup released a new version of its AI chatbot in January, sending shockwaves across global markets.DeepSeek wowed industry insiders with its apparent ability to rival or even surpass the capabilities of Western competitors like ChatGPT at a fraction of the cost.”DeepSeek has stood out in the global field of AI,” said Wu Qing, Chairman of China’s Securities Regulatory Commission.”It is not just that the field of AI has been deeply shocked, but now also the world and the financial community have a new understanding of China’s ability to innovate in science and technology,” he said.The official added that DeepSeek had contributed to a “recent re-evaluation of Chinese assets”.”If someone does not talk about DeepSeek these days, it seems that they’re not fashionable,” Wu said.”But this phenomenon is indeed worthy of our high attention.”Recent weeks have seen shares in Chinese tech titans surge.Last month, long-shunned Alibaba co-founder Jack Ma was seen meeting President Xi Jinping at a business symposium — signalling a more welcoming stance from Beijing towards its domestic tech sector.Alibaba’s shares rose more than eight percent during Thursday trading in Hong Kong after it unveiled an AI model with a performance it said was “comparable” to DeepSeek.Investors are watching for announcements this week from Beijing — where officials are convening for a key annual political event known as the “Two Sessions” — on further government support to boost innovation and spending.Wu’s comments came during a press conference on China’s economy, which has struggled to fully recover from the pandemic.Authorities are banking on advanced technology as a lifeline to reach official growth targets this year as heightened trade winds batter the export-dependent nation.

China vowed to fight a trade war with the United States “to the end” on Thursday, as tariffs from Washington buffeted the global economy and threatened to hit Beijing’s lagging growth.Beijing set an ambitious annual growth target of around five percent this week, vowing to make domestic demand its main economic driver as the escalating trade confrontation with the United States hit exports.US President Donald Trump imposed more blanket tariffs on Chinese imports this week, following a similar move last month — levies expected to hit hundreds of billions of dollars in total trade between the world’s two largest economies.Commerce Minister Wang Wentao warned that US tariffs threatened to “disrupt the stability of the global industrial supply chain and hinder the development of the global economy”.”If the United States continues down this wrong path, we will fight to the end,” he told reporters, decrying what he called “unilateralism and bullying” by Washington.China’s top economic planner Zheng Shanjie acknowledged that “uncertainty in the external environment is further increasing”.But, he said, China has “full confidence” that it can reach its growth goal this year.”We have the basic support and guarantee of achieving this year’s growth target of around five percent,” Zheng said, speaking alongside Wang on the sidelines of Beijing’s annual “Two Sessions” political meetings.”We are also facing some problems — such as insufficient domestic demand, production and operation difficulties in some industries and some enterprises,” Zheng added.”However, we feel that these difficulties and challenges… can all be overcome and solved”.- Spending to expand -China’s headline growth figure, announced by Premier Li Qiang on Wednesday at an annual Communist Party conclave, was broadly in line with an AFP survey of analysts.But experts say it is ambitious considering the scale of China’s economic challenges — and are hoping officials will unveil further economic support this week.On Thursday, central bank chief Pan Gongsheng said the country would cut interest rates further this year “as appropriate, based on domestic and international economic and financial situations”.Beijing’s central bank cut two key interest rates to historic lows in October.Finance Minister Lan Fo’an vowed Thursday to “further expand” fiscal spending in 2025.That, he said, would promote “the sustainable and healthy development of the economy and society”.China has struggled to regain its footing since the Covid-19 pandemic, as domestic consumption flags and a persistent debt crisis in the vast property sector drags on.Trump’s latest round of tariffs has deepened the challenges.Beijing announced its own measures on Tuesday in retaliation to Washington’s latest tariff hike and vowed it would fight a trade war to the “bitter end”.The moves will see China impose levies of up to 15 percent on a range of US agricultural products including soybeans, pork and wheat starting from early next week.

The Japanese owner of 7-Eleven announced on Thursday a raft of new measures to fend off a takeover by a Canadian rival, including a huge share buyback and an IPO of its US unit.The announcements are the latest twist in a saga that began last year, when Seven & i rebuffed a takeover offer worth nearly $40 billion from Canada’s Alimentation Couche-Tard (ACT).”We’re convinced that now is the time to take our initiatives to the next level, and our leadership will further pursue the improvement of shareholder value and implement transformative policies,” outgoing company president Ryuichi Isaka said in a statement.”We have decided to conduct an initial public offering (IPO) of our SEI shares that operate the North American convenience store business, 7-Eleven, on one of the major US stock exchanges by the second half of 2026,” Seven & i said.It said it plans to buy back two trillion yen ($13.2 billion) of its own shares, using funds generated by that IPO and other restructuring measures.The company also plans to sell its non-convenience-store business — comprising supermarkets, restaurants and other assets — to US private investment firm Bain Capital for $5.4 billion.Seven & i, which operates some 85,000 convenience stores worldwide, also named Stephen Dacus as its first foreign chief executive to replace Isaka.Reports of the raft of measures, that appeared before the retailer’s announcement, caused its shares to surge as much as 10 percent in afternoon trade.They later trimmed those gains and were trading up 6.5 percent before the market closed.- Behemoth -ACT’s takeover would be the biggest foreign buyout of a Japanese firm, merging the 7-Eleven, Circle K and other franchises to create a global convenience store behemoth.Japan’s Yomiuri daily reported this week that a special committee scrutinising ACT’s raised offer of reportedly around $47 billion had decided formally to reject that too.Isaka told a news conference on Thursday that an ACT takeover would pose “serious US antitrust challenges”, and that there had been “no meaningful progress” towards resolving them.”Hence the proposal has no assurance that it would be in the best interest of group shareholders and other stakeholders,” Isaka said through an interpreter.He added however: “We will continue to examine and consider all strategic options, including the proposal from ACT, in order to realize the unlocking of our share value for our shareholders.”- Rice balls -7-Eleven, the world’s biggest convenience store brand, began in the United States but has been wholly owned by Seven & i since 2005.Its stores are a beloved institution in Japan, selling everything from concert tickets to pet food and fresh rice balls, although sales have been flagging.ACT, which began with one store in Quebec in 1980, runs nearly 17,000 convenience store outlets worldwide, including Circle K.Dacus told the news conference that his father was a 7-Eleven franchisee in the United States and that he worked weekend night shifts as a teenager.”I had no way of knowing that nearly 50 years later, I would be selected to run the global parent company of my father’s small store,” Dacus said in Japanese.”As you all know, recently we have lost some momentum. We have to humbly face the fact that we have lost some market share,” he added through an interpreter.

Asian stocks climbed on Thursday as investors welcomed US President Donald Trump’s auto tariff delay and were expecting China to announce a large stimulus package.The White House announced Wednesday an exemption on any autos coming through the United States, Canada and Mexico free trade pact, after Trump held talks with the “Big Three” US automakers — Stellantis, Ford and General Motors.US automakers have been among the most exposed to Trump’s trade policy, which saw 25 percent blanket tariffs imposed on America’s neighbours earlier this week — with a lower rate for Canadian energy.Wednesday’s tariff delay buoyed global markets and lifted the auto sector, with stocks in Shanghai, Tokyo and Seoul also rising Thursday.Hong Kong’s stock exchange was up more than three percent.”We have little details on what products the pause will cover — whether this will only apply to finished cars or also automotive parts — but given the exceptional degree of integration across North America for this industrial value chain, the decision is hardly surprising,” said Maeva Cousin of Bloomberg Economics.A global bond selloff also spread to Asia on Thursday as geopolitical sways over the past weeks, including Ukraine peace efforts and trade tariffs, drove benchmark yields upwards.Japanese 10-year yields hit 1.5 percent for the first time in more than a decade while bonds in Australia and New Zealand also saw their yields jump.The selloff was triggered by a sharp rise in German bund yields after Berlin announced on Wednesday plans to massively boost defence spending.- ‘Full confidence’ of hitting 5% -Chinese stocks were also responding well to Beijing announcing its 2025 growth target of around five percent, at the start of its annual meeting of the National People’s Congress (NPC) on Wednesday.China has vowed to make domestic demand its main economic driver despite facing persistent economic headwinds, and as an escalating trade war with the United States hit exports.Beijing also announced a rare hike in fiscal funding, allowing its budget deficit to reach four percent this year.Investors are hoping a huge fiscal stimulus package is coming.China’s central bank chief said Thursday that the country would further cut interest rates in the coming year to boost the economy.And another top Chinese economic official said the government has “full confidence” that it can reach its goal of five percent growth this year.”The commitment to five percent means one thing: more stimulus is coming,” said Stephen Innes of SPI Asset Management.”China isn’t leaving anything to chance — expect a mix of credit easing, fiscal firepower, and the occasional ‘suggestion’ to state banks to keep the machine humming.”Alibaba was among Hong Kong’s top-performing stocks, with shares surging more than seven percent after the Chinese tech giant launched an artificial intelligence model it says can compete with DeepSeek.Jakarta and Manila were up while Singapore and Wellington rose more modestly, and Sydney, Bangkok and Taipei were slightly down.- Key figures around 0715 GMT -Tokyo – Nikkei 225: UP 0.8 percent at 37,704.93 (close)Hong Kong – Hang Seng Index: UP 3.00 percent at 24,302.41Shanghai – Composite: UP 1.2 percent at 3,381.10 (close)Euro/dollar: UP at 1.0812 from 1.0790 on WednesdayPound/dollar: UP at $1.2912 from $1.2896  Dollar/yen: DOWN 148.54 from 148.89 yenEuro/pound: UP at 83.73 pence from 83.67 penceWest Texas Intermediate: UP 0.6 percent at $66.72 per barrelBrent North Sea Crude: UP 0.6 percent at $69.72 per barrelNew York – Dow: UP 1.1 percent at 43,006.59 (close)London – FTSE 100: DOWN less than 0.1 percent at 8,755.84 (close)

Japan’s top court said Thursday it had finalised the acquittal of two former executives from the operator of the Fukushima nuclear plant charged with professional negligence over the 2011 meltdown.The decision concludes the only criminal trial to arise from the plant’s 2011 tsunami-triggered accident, the world’s worst nuclear accident since Chernobyl.Ichiro Takekuro and Sakae Muto, formerly vice presidents of Tokyo Electric Power Company (TEPCO), had been accused of liability for the deaths of more than 40 hospitalised patients, who had to be evacuated following the nuclear disaster.Former chairman Tsunehisa Katsumata, who died last year, had also faced the same charges.The men had faced up to five years in prison if convicted.But the Tokyo District Court ruled in 2019 that the men could not have predicted the scale of the tsunami that hit the plant.That verdict was upheld by the Tokyo High Court in 2023, but an appeal was then filed.The Supreme Court on Wednesday “dismissed the prosecutors’ appeals regarding Takekuro and Muto”, a top court spokesman told AFP.”Katsumata’s public prosecution was dismissed in November” after his death, he added.In March 2011, a massive tsunami swamped the Fukushima Daiichi plant on Japan’s northeastern coast after an undersea 9.0-magnitude earthquake, the country’s strongest in recorded history.The tsunami left 18,500 people dead or missing.But no one was recorded as having been directly killed by the nuclear accident, which forced evacuations and left parts of the surrounding area uninhabitable.Despite the non-guilty criminal court verdict, in a July 2022 verdict in a separate civil case, the same three men and another were ordered to pay a whopping 13.3 trillion yen ($90 billion) for failing to prevent the disaster.Lawyers have said the enormous compensation sum was believed to be the largest amount ever awarded in a civil lawsuit in Japan — although they admit that is symbolic, as it is well beyond the defendants’ capacity to pay.

Asian markets climbed on Thursday after US President Donald Trump announced a one-month tariff delay on auto imports from Mexico and Canada.The White House announced Wednesday an exemption on any autos coming through the North American neighbours’ free trade pact, after Trump held talks with the “Big Three” US automakers — Stellantis, Ford and General Motors.US automakers have been among the most exposed to Trump’s trade policy, which saw 25 percent blanket tariffs imposed on Mexico and Canada earlier this week — with a lower rate for Canadian energy.Wednesday’s tariff delay buoyed global markets and lifted the auto sector, with stocks in Hong Kong, Tokyo and Seoul also climbing Thursday morning.”We have little details on what products the pause will cover — whether this will only apply to finished cars or also automotive parts — but given the exceptional degree of integration across North America for this industrial value chain, the decision is hardly surprising,” said Maeva Cousin of Bloomberg Economics.The prospects of wider relief were dampened, however, after Trump said he was unconvinced Canada had done enough to address Washington’s concerns over cross-border fentanyl smuggling.Canada contributes less than one percent of fentanyl to the United States’ illicit supply, according to Canadian and US government data.In Asia, Chinese stocks were also responding well to Beijing announcing its 2025 growth target of around five percent, at the start of its annual meeting of the National People’s Congress (NPC) on Wednesday.Hong Kong jumped as much as 2.6 percent Thursday morning and Shanghai climbed above 0.5 percent.China has vowed to make domestic demand its main economic driver despite facing persistent economic headwinds.It also announced a rare hike in fiscal funding, allowing its budget deficit to reach four percent this year.Investors are hoping a huge fiscal stimulus package will follow, which could be announced at a key NPC economic policy meeting later Thursday. “The commitment to five percent means one thing: more stimulus is coming,” said Stephen Innes of SPI Asset Management.”China isn’t leaving anything to chance — expect a mix of credit easing, fiscal firepower, and the occasional ‘suggestion’ to state banks to keep the machine humming.”Jakarta and Manila were up while Singapore rose more modestly, and Sydney was down.- Key figures around 0230 GMT -Tokyo – Nikkei 225: UP 0.9 percent at 37,773.68Hong Kong – Hang Seng Index: UP 2.4 percent at 24,151.56Shanghai – Composite: UP 0.8 percent at 3,314.84Euro/dollar: UP at 1.0813 from 1.0790 on WednesdayPound/dollar: UP at $1.2902 from $1.2896  Dollar/yen: UP 148.96 from 148.89 yenEuro/pound: UP at 83.80 pence from 83.67 penceWest Texas Intermediate: UP 0.7 percent at $66.77 per barrelBrent North Sea Crude: UP 0.7 percent at $69.76 per barrelNew York – Dow: UP 1.1 percent at 43,006.59 (close)London – FTSE 100: DOWN less than 0.1 percent at 8,755.84 (close)

Global stocks rallied on Wednesday, buoyed by Germany’s plan to massively boost spending on defense and a move by the White House to pause tariffs on auto imports from Mexico and Canada.In European trading, Frankfurt surged 3.4 percent after the likely next chancellor, Friedrich Merz, announced the spending plans in the hope of also reviving Europe’s biggest economy.European defense and manufacturing stocks also climbed as bourses in Paris and Milan won solid gains.”This is huge,” Kathleen Brooks, research director at XTB trading platform said in reaction to the news out of Germany.”For years, economists have said that Germany needed to change its spending rules to get out of the economic hole. It’s taken a Conservative chancellor-in-waiting to pull the trigger,” she added.Back in New York, Wall Street stocks got a positive jolt from President Donald Trump’s latest pivot on tariffs. US automakers have been among the most exposed to Trump’s trade policy, with 25 percent tariffs on Mexico and Canada, warning of devastating impacts from the levies.But following talks with the “Big Three” US automakers — Stellantis, Ford and General Motors — Trump decided to “give a one-month exemption on any autos coming through USMCA,” White House Press Secretary Karoline Leavitt said, referring to the North American free trade pact.Shares of each of the three automakers rose about six percent or more, while auto supply companies like Magna International and Lear also gained as the broader market picked up momentum.The three major US indices finished up by more than one percent.”It confirms what investors suspect, which is that Trump & Co are watching the markets and they don’t want to have a bear market named after them,” said Jack Ablin of Cresset Capital. – Chinese economy -In Asia, investors welcomed China’s economic targets for the coming year and the prospect of tariff relief, with Hong Kong closing up almost three percent.China set an annual growth target of around five percent and vowed to make domestic demand its main economic driver, as lawmakers attended the annual meeting of the National People’s Congress.Beijing also announced a rare hike in fiscal funding, allowing its budget deficit to reach four percent of its GDP this year.It comes alongside a pledge to create 12 million new jobs in China’s cities and a push for two percent inflation this year.The world’s second-largest economy is also planning to increase defense spending by 7.2 percent, the same as last year.But observers have tempered expectations for an expected stimulus given that China is facing strong economic headwinds, especially in light of US tariffs.These include a persistent property sector debt crisis, stubbornly low consumer demand and stuttering employment for young people. – Key figures around 2130 GMT -New York – Dow: UP 1.1 percent at 43,006.59 (close)New York – S&P 500: UP 1.1 percent at 5,842.63 (close)New York – Nasdaq Composite: UP 1.5 percent at 18,552.73 (close)London – FTSE 100: DOWN less than 0.1 percent at 8,755.84 (close)Paris – CAC 40: UP 1.6 percent at 8,173.75 (close)Frankfurt – DAX: UP 3.4 percent at 23,081.03 (close)Tokyo – Nikkei 225: UP 0.2 percent at 37,418.24 (close) Hong Kong – Hang Seng Index: UP 2.8 percent at 23,594.21 (close)Shanghai – Composite: UP 0.5 percent at 3,341.96 (close)Euro/dollar: UP at 1.0790 from 1.0626 on TuesdayPound/dollar: UP at $1.2896 from $1.2795  Dollar/yen: DOWN at 148.89 from 149.79 yenEuro/pound: UP at 83.67 pence from 83.05 pence West Texas Intermediate: DOWN 2.9 percent at $66.31 per barrelBrent North Sea Crude: DOWN 2.5 percent at $69.30 per barrelburs-jmb/bfm

European and Asian stock markets rallied on Wednesday, buoyed by Germany’s plan to massively boost spending on defence, signals that US President Donald Trump could ease huge tariffs and China’s economic targets.But Wall Street stocks and the dollar slid as a survey showed a sharp slowdown in hiring by private firms in the United States and data demonstrated a massive build-up of US crude oil stockpiles, both suggesting that economic growth is faltering.The surge in US crude stockpiles sent the main US oil contract down four percent and the main international contract, Brent, fell below $70 per barrel to its lowest level since 2021.In European trading, Frankfurt surged 3.4 percent after the likely next chancellor, Friedrich Merz, announced the spending plans in the hope of also reviving Europe’s biggest economy.The yield on 10-year German government bonds posted its biggest daily increase since reunification in an indication of the magnitude of the change in spending and debt policy.European defence and manufacturing stocks also climbed.The Paris stock exchange gained 1.6 percent while Milan jumped 2.4 percent. London dipped less than 0.1 percent.”This is huge,” Kathleen Brooks, research director at XTB trading platform said in reaction to the news out of Germany.”For years, economists have said that Germany needed to change its spending rules to get out of the economic hole. It’s taken a Conservative chancellor-in-waiting to pull the trigger,” she added.Sentiment during the European and Asian trading sessions was boosted by comments from US Commerce Secretary Howard Lutnick, who said late on Tuesday that he thought Trump would “work something out” with regards to Canada and Mexico, whose goods were hit with 25 percent levies.”Markets would take even the slightest rollback from Trump as a positive sign, helping to settle nerves following concerns about a full-blown trade war,” said Russ Mould, investment director at investment platform AJ Bell.But hopes for overall tariff relief faded after Lutnick said that Trump was now looking at excluding certain sectors from the higher levies.Global stocks tumbled on Tuesday after US tariffs on China, Mexico and Canada took effect and the three countries retaliated, while fears grew that Europe could be Trump’s next target. Meanwhile, US bond yields fell sharply as investors fled to safety from riskier equities.- Chinese economy -In Asia, investors welcomed China’s economic targets for the coming year and the prospect of tariff relief, with Hong Kong closing up almost three percent.China set an annual growth target of around five percent and vowed to make domestic demand its main economic driver, as lawmakers attended the annual meeting of the National People’s Congress.Beijing also announced a rare hike in fiscal funding, allowing its budget deficit to reach four percent of its GDP this year.It comes alongside a pledge to create 12 million new jobs in China’s cities and a push for two percent inflation this year.The world’s second-largest economy is also planning to increase defence spending by 7.2 percent, the same as last year.But observers have tempered expectations for an expected stimulus given that China is facing strong economic headwinds, especially in light of US tariffs.These include a persistent property sector debt crisis, stubbornly low consumer demand and stuttering employment for young people. – Key figures around 1430 GMT -New York – Dow: DOWN 0.1 percent at 42,470.71 pointsNew York – S&P 500: DOWN 0.4 percent at 5,756.29 New York – Nasdaq Composite: DOWN 0.4 percent at 18,209.40London – FTSE 100: DOWN less than 0.1 percent at 8,755.84 (close)Paris – CAC 40: UP 1.6 percent at 8,173.75 (close)Frankfurt – DAX: UP 3.4 percent at 23,081.03 (close)Tokyo – Nikkei 225: UP 0.2 percent at 37,418.24 (close) Hong Kong – Hang Seng Index: UP 2.8 percent at 23,594.21 (close)Shanghai – Composite: UP 0.5 percent at 3,341.96 (close)Euro/dollar: UP at 1.0770 from 1.0485 on TuesdayPound/dollar: UP at $1.2871 from $1.2694  Dollar/yen: DOWN at 148.56 from 149.32 yenEuro/pound: UP at 83.69 pence from 82.60 pence West Texas Intermediate: DOWN 4.0 percent at $65.50 per barrelBrent North Sea Crude: DOWN 3.4 percent at $68.64 per barrelburs-rl/bc

Panamanian President Jose Raul Mulino on Wednesday accused his US counterpart Donald Trump of “lying” about Washington taking back the Panama Canal. “Once again, President Trump is lying. The Panama Canal is not in the process of recovery,” Mulino wrote on X.”I reject, on behalf of Panama and all Panamanians, this new affront to the truth and to our dignity as a nation,” Mulino added, after Trump said that his administration had started to take back the vital waterway.”To further enhance our national security, my administration will be reclaiming the Panama Canal, and we’ve already started doing it,” Trump said in a speech to Congress Tuesday. “We’re taking it back.”Under mounting pressure from Washington, Hong Kong firm Hutchison said Tuesday it had agreed to sell its lucrative Panama Canal ports to a US-led consortium.CK Hutchison Holdings said it would offload a 90-percent stake in the Panama Ports Company (PPC) and sell a slew of other non-Chinese ports to a group led by asset manager BlackRock.The sellers will receive $19 billion in cash, the company said.Hutchison subsidiary PPC has for decades run ports at Balboa and Cristobal on the Pacific and Atlantic ends of the interoceanic waterway.But since taking office in January, Trump has complained that China controls the canal — a vital strategic asset that the United States once ran.He has refused to rule out a military invasion of Panama to regain control, sparking angry protests and a complaint to the United Nations by the Central American nation.Since 1999, the canal has been run by the Panama Canal Authority (ACP) — an autonomous entity whose board of directors is appointed by Panama’s president and National Assembly. The 80-kilometer (50-mile) long canal handles five percent of global maritime trade, and 40 percent of US container traffic.Beijing has consistently denied interfering in the canal.

British chip giant Arm Holdings signed an agreement with Malaysia on Wednesday to bolster the Southeast Asian country’s efforts to produce high-end semiconductors amid the US-China tech trade war.Malaysia is a key player in the vital chips sector but has been largely focused on packaging, assembly and testing services — the lower end of the market.The agreement will see Softbank-owned Arm provide chip designs and other technology, helping Malaysia to move into more value-added production such as wafer fabrication and integrated circuit design.The Southeast Asian nation is paying $250 million over a decade to receive support from the British company, journalists were told at a briefing by Malaysia’s economic ministry.”Through a comprehensive partnership with Arm, we have conceived one of the most ambitious technological plans Malaysia has ever seen — to pioneer Made-by-Malaysia AI chips,” Prime Minister Anwar Ibrahim said in remarks before witnessing the signing.”These chips will be designed, manufactured, tested and assembled here, and sold to the rest of the world.”In addition, Arm will also establish its first office in Southeast Asia in Kuala Lumpur, aiming to expand the company’s reach in the region as well as Australia and New Zealand, Anwar said.”We won’t let you down. This is going to be an extremely exciting 10 years and more,” said Arm chief executive Rene Haas.- ‘Red carpet’ -Malaysian Economy Minister Rafizi Ramli said the collaboration would enable Malaysia and Arm “to build a complete supply chain in advanced industries such as AI (artificial intelligence) data servers, autonomous vehicles, IoT (internet of things), robotics and others.”He said that around 10,000 local semiconductor engineers would be trained under the deal.Dedi Iskandar, Asia Pacific regional director at datacenterHawk, said the agreement would make Malaysia “as one of the elite countries in Asia Pacific that possess advanced AI chip design capabilities other than Taiwan, and Singapore.””Malaysia is laying the red carpet and showing the world that they are serious in this tech war,” he told AFP.Tensions between Washington and Beijing over advanced tech, especially semiconductors, in recent years have forced many firms to look into relocating their manufacturing from China to other countries including Malaysia, Vietnam and India.”This deal creates equilibrium to the region as Taiwan is always a sore thumb between China and US tech war, and Malaysia are friends to both of them,” added Dedi.A prominent player in the industry for decades, Malaysia accounts for an estimated 13 percent of global back-end manufacturing, according to German tech firm Bosch.Malaysia’s northern island of Penang, home to a number of facilities, is often dubbed the country’s Silicon Valley.And in April 2024, Anwar announced plans to build a massive semiconductor design park, an effort to move Malaysia beyond chips production.