China announces sanctions on Paraguay, Belize ministers over Taiwan ties

China has imposed sanctions on Paraguay's Communications Minister, Gustavo Villate, and Belize's foreign minister, Francis Fonseca, over their countries' ties with Taiwan, which Beijing claims as its own territory, and has systematically pressured countries to cut ties with Taipei in a bid to isolate it.

Paraguay and Belize are two of just 12 countries to maintain formal diplomatic relations with Taiwan.

China says Taiwan is one of its provinces with no right to the trappings of a state, a view Taipei's government strongly rejects.

The sanctions are largely symbolic given ministers from Taiwan's diplomatic allies generally don't travel to China.

Such sanctions have previously mainly been applied to Western politicians for their support of democratically governed Taiwan.

Latin America is a key diplomatic battleground between China and Taiwan.

The US State Department has said that the Trump administration opposes "coercion and aggression" by China against countries for exercising their sovereign rights.

The Chinese foreign ministry spokeswoman Mao Ning said the sanctions against Paraguay's Communications Minister Gustavo Villate and Belize's foreign minister Francis Fonseca were designed to "penalise them and serve as a warning to others."

Reference Sources

1. nikkei - China sanctions Paraguay, Belize ministers over Taiwan ties
2. thestarmy - China says sanctions on Latin American ministers over Taiwan ties 'a warning to others'
3. usnews - US Says It Opposes Chinese 'Coercion', After Belize, Paraguay Ministers Sanctioned
4. thestarmy - China announces sanctions on Paraguay, Belize ministers over Taiwan ties
5. bloomberg - China Sanctions Officials of Taiwan’s Allies for the First Time

South Korea’s Kospi index sinks more than 7% on semiconductor share sell-off over AI boom worries

Asian technology stocks fell on Tuesday as investors awaited a crucial earnings season and the release of key US data.

The selloff overshadowed a drop in oil prices that came even as Yemen's Houthis stepped up their attacks on Saudi Arabia, fanning tensions in the Middle East and raising further concerns about supplies.

South Korea's Kospi index tanked more than 6% as chip titans SK Hynix and Samsung took a beating following reports that China's CXMT had made progress on new technology to boost memory density, which other firms have been working on. In Japan, shares of tech-focused investment giant SoftBank Group sank 8.8%.

The group, which has significant exposure to the global AI industry, led a broader retreat in Japanese semiconductor and electronics shares.

The global sell-off in semiconductor shares deepened on Tuesday as Asian chipmakers supplying the AI build-out fell sharply, dragging South Korea's main stock index down by 6.6%. Shares in Samsung Electronics and SK Hynix, the world's two largest memory-chip makers, fell as much as 7.7% and 9.2% respectively in morning trading in Seoul.

The two companies account for about half the benchmark Kospi and have now shed about 15% over the past five days.

Despite the falls, Seoul remains almost 39% higher since the start of the year.

Reference Sources

1. thejakartapost - The Jakarta Post
2. nbc - South Korea’s Kospi index sinks more than 7% on semiconductor share sell-off over AI boom worries
3. cnbc - SK Hynix, SoftBank shares plunge as tech stocks in Asia track Wall Street chip sell-off
4. ft - Chip stocks slide as fears mount over scale of AI investment
5. usnews - South Korea's Kospi Index Sinks More Than 7% on Semiconductor Share Sell-Off Over AI Boom Worries

ASEAN Digital Pact to Drive Cross-Border Payments

Standard Chartered sees ASEAN's upcoming Digital Economy Framework Agreement (DEFA) as an impetus for cross-border payments, as the Southeast Asian bloc looks to sign the accord next month.

The document will have ASEAN members establish common rules on cross-border E-Commerce and electronic payments for greater Digital integration.

Standard Chartered Indonesia's CEO, Donny Donosepoetro, said Tuesday that the DEFA signing could change the way ASEAN economies do business with fellow members and its external partners. Bilateral frameworks have enabled Indonesian businesses to settle cross-border trade with Malaysia, Singapore, and Thailand, among others, in rupiah or their respective currencies.

Standard Chartered is the only international bank that serves all ASEAN markets, except the club's newcomer Timor-Leste.

ASEAN expects the DEFA to double its Digital economy to $2 trillion by 2030, as the document is set to have a particular focus on the ever-growing artificial intelligence (AI).

The group will sign the document when its leaders gather in the Philippines in November.

Reference Sources

1. jakartaglobe - ASEAN Digital Pact to Drive Cross-Border Payments

The CommonWealth English daily news digest is a service curated by CommonWealth English team with the help of AI tools.  

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