Technology Battle: New US restrictions on chips to further hinder China's drive towards self-sufficiency

The Chinese chip sector could see substantial effects if key local suppliers are banned, according to insiders.

The decision by Washington is anticipated to impact not only venture capital firms closely linked to the Chinese semiconductor industry, but also businesses higher up the supply chain like special gas suppliers. This information comes from an individual briefed about the situation, who chose to remain anonymous due to the delicate nature of the issue.

On Wednesday, the Bureau of Industry and Security, a branch of the US Commerce Department, chose not to provide any comments. Mao Ning, the spokesperson for China's foreign ministry, criticized the proposed US trade restrictions. She asserted that Beijing would take firm actions to protect the business interests of the mainland.

The forthcoming penalties are expected to significantly intensify the technological competition between the US and China, which has been on the rise since October 2023. This was when the Biden administration increased its export restrictions, initially implemented in 2022, aimed at China's semiconductor industry. These actions were taken due to fears that cutting-edge technology could potentially strengthen Beijing's military power.

What's causing the global excitement about LNG? As the planet grapples with an environmental emergency, liquefied natural gas presents a greener, more viable energy alternative. But what makes LNG crucial to the shift in energy use, and how does it impact everyday living?

From the desk of the Morning Studio editors, November 28

Continue reading to delve into the narrative

With the global climate emergency on the rise, liquid natural gas presents a greener, more viable energy alternative. However, why is LNG crucial to the shift towards sustainable energy, and in what ways does it impact our everyday lives?

From the Morning Studio Editors, November 28, 202

Continue reading to delve into the narrative

The top experts in climate science forecast a significant increase in worldwide temperatures, surpassing the globally set limits in the future years. Preventing this impending climate disaster makes the shift to greener energy sources even more essential.

In order to meet the temperature goals outlined in the Paris Agreement, natural gas is viewed as an appropriate interim energy source as we move towards more environmentally friendly options. Specifically, liquefied natural gas (LNG), which emits less carbon than other conventional fossil fuels like coal, is a key player in initiatives to control global warming, as per the scholarly research resource, ScienceDirect.

LNG towards a more sustainable future

However, first, what exactly is LNG?

Why do certain energy specialists champion LNG as a key energy resource that might fuel our future?

Petronas' initiatives towards carbon neutrality

Top figures in the industry are taking action to make sure that LNG fulfills its potential for a future with less carbon emissions. Petronas has been a leader in this field for over four decades, providing and moving LNG.

LNG plays a vital role in Petronas' plans for a future with reduced carbon emissions. However, the Malaysian energy company is also dedicated to decarbonisation and lowering operational emissions through a number of significant measures set out in its "Net Zero Carbon Emissions by 2050" roadmap.

In order to fulfill its goal of net-zero emissions, Petronas has pledged to meet the subsequent decarbonisation objectives:

Immediate Objectives

By the conclusion of 2024, Petronas aims to limit their Malaysian operations' greenhouse gas emissions to 49.5 million metric tonnes of carbon dioxide equivalent (MtCO₂e). Also, the goal is to cut their global natural gas value chain's methane emissions in half by 2025, as compared to the levels recorded in 2019.

In line with its goal to reach net-zero emissions, Petronas has pledged to meet the subsequent targets for carbon reduction:

Goals for the Intermediate Term

Petronas aims to cut its overall emissions by 25 per cent by the year 2030. This target includes a 70 per cent decrease in methane emissions from its global natural gas value chain, alongside a 50 per cent decrease in methane emissions from Malaysia's natural gas value chain, all measured from the baseline levels of 2019.

In order to fulfill its goal of net-zero emissions, Petronas has pledged to meet the subsequent carbon reduction objectives:

Ultimate Objective

Achieve a balance of zero carbon emissions through

LNG observed in real-world settings

Globally, the dependence on LNG is increasing at an impressive rate, signaling a worldwide progression towards more eco-friendly energy. This form of energy is already being utilized in numerous countries globally, with Asia – specifically Japan, South Korea, and China – being notable examples. Petronas, as one of the world's leading LNG producers, has supplied LNG to over 55 terminals in more than 25 countries around the globe. LNG is instrumental in people's daily routines, enabling everyday tasks to proceed without hitches.

For instance, Japan heavily depends on LNG, accounting for approximately 24 per cent of its overall energy consumption. The rise in reliance on LNG largely stems from the country's learnings from the 2011 earthquake and tsunami, which resulted in a Fukushima power plant being put out of action.

The main use for Japan's supply of LNG is in power generation, but it also serves as a source of heat and fuel for cooking in the majority of homes.

In Singapore, nearly 95% of the power comes from natural gas, viewed by the nation as the most eco-friendly type of fossil fuel. The nation is constantly on the lookout for cleaner energy imports from foreign countries, such as Malaysia and Indonesia.

The city state is also expanding its natural gas sources through an LNG terminal functioning on Jurong Island, with intentions to construct a second terminal soon to assist new industrial areas and power stations.

The usage of LNG is becoming more popular due to its adaptability and effectiveness.

In 2023, the worldwide trade in liquefied natural gas (LNG) saw a rise to 401.4 metric tonnes, marking an increase of 8.4 metric tonnes. The United States held the top spot as the largest exporter of LNG in the same year, distributing a total of 84.5 metric tonnes, which signifies an 8.9 metric tonnes increase from the previous year.

China reclaimed its position as the globe's foremost LNG importer in 2023, with a total import of 71.2 metric tonnes, showing an increase of 7.6 metric tonnes from 2022.

As global efforts towards decarbonisation gain momentum, LNG is expected to play a pivotal role in leading the shift towards sustainable energy. The gas industry itself is evolving through a decarbonisation phase, which involves speeding up the use of carbon capture, low-carbon solutions, and renewable energy, as well as the eradication of methane emissions. These measures solidify the role of LNG and the wider energy sector in achieving global climate objectives. Through concerted efforts, the world can anticipate a greener and more sustainable future.

Narrative crafted by Morning Studio

Creative Supervisors

Venice Ng, Wing Chan

Editors

Fairoza Mansor, Reggie Ho

Assistant Editor

Megan McCoid

Observation Scope | China's tariff issues are minor compared to Germany's economic difficulties

An escalating trade conflict could cause more chaos to Europe's biggest economy, which is already grappling with economic slowdown, decreased exports, and geopolitical stress.

Trump, known for his unpredictable nature, has once again sparked debate regarding the depth, extent, and tactics of his tariff policies. Nevertheless, a quick look at the trade surpluses of the countries targeted by these policies – these three economies along with the euro zone have the biggest bilateral surpluses with the US – indicates Trump is acting consistently with his usual behavior.

Trump has a strong distrust towards trade, seeing it only from the shallow perspective of two-party balances. He is targeting countries that have significant trade surpluses with the US. According to the incoming president and his team, any country that has a large surplus with the US is likely taking high-paying manufacturing jobs away from the US, thus undermining the middle class.

With a significant downturn in China's economy, European exporters have turned to the US market to compensate for the shortfall. This is particularly evident in Germany, where trade surplus solely with the US makes up 40 per cent of the EU's total, as stated by GlobalData TS Lombard.

Standard Chartered's CEO suggests that while US import duties may cause disturbances, 'markets will find balance'. He asserts that 'Global trade is pushing ahead. It continues to provide vast benefits globally, a fact that is widely acknowledged,' says Winters.

"Although there may be disturbances, markets will eventually balance out. If a nation imposes a trade tax on another, commerce will simply redirect itself," Winters stated on his recent trip to Hong Kong.

Numerous promises were given throughout the [US presidential] campaign, and, in terms of their general intent, I'm certain they'll be respected.

The bank headquartered in London, that earns a significant portion of its revenue from Asia, is relying on its expertise in international transactions and investments for future expansion. In addition, it plans to focus on wealth management to serve the increasing number of wealthy clients in Asia.

In Vietnam, China emerged as the leading direct investor, accounting for 29.7% of all fresh initiatives in the initial seven months of the current year.

The 'Emperor's Home' penthouse in Hong Kong was purchased at a discount of 68% as financially struggling magnates sell off their assets. Analysts predict that this trend of asset disposal by owners under economic stress will persist until there is a significant reduction in interest rates.

Tycoons from Hong Kong and mainland China, under financial strain, persist in selling their real estate properties in the city at a loss. This is happening as the market experiences a resurgence in deals, drawing in more individuals looking for good deals.

A tri-level penthouse apartment located in The Arch complex on top of Kowloon station in Hong Kong was sold on Tuesday. This apartment was part of a collection of six properties in receivership that were sold for a total of HK$410 million (US$52.7 million). This is a significant 68% reduction from the original asking price of HK$1.3 billion in 2021. The property collection, which included six parking spaces, was previously owned by Hui Chi-ming, the ex-chairman of Sino Union Petroleum & Chemical International, as per the Land Registry.

Unprecedented interest rates, along with a decline in the real estate market in Hong Kong and mainland China, have compelled some heavily indebted borrowers to resort to desperate sales. In the meantime, the prolonged slump in the property market has dwindled the personal wealth of regional and mainland business proprietors and real estate magnates.

"Owners under financial strain will persist in selling off their properties until there is a significant decrease in interest rates," stated Tom Ko, the executive director and leader of capital markets for Cushman & Wakefield in Hong Kong.

In the meantime, the relatives of the deceased 'Shop King' of Hong Kong, Tang Shing-bor, are attempting to offload their Hotel Ease Access located in Tsuen Wan, as stated by Cushman & Wakefield, the exclusive broker. The 21-floor hotel, which comprises 170 rooms, is now priced at HK$300 million, experiencing a 40 per cent depreciation from its initial selling price last year.

Naomi Osaka shares personal experiences at Women Aces in Leadership gathering

The renowned tennis player teamed up with other female sportspersons and worldwide executives at the discussion event, which took place alongside the Prudential Hong Kong Tennis Open.

One hour and seventeen

Naomi Osaka is set to be one of the speakers at the Women Aces in Leadership event.

In both the sporting and corporate world, women have tirelessly battled for upper echelon positions. This made the Prudential Hong Kong Tennis Open an appropriate occasion to gather a renowned group of international tennis athletes and high-ranking executives from across the globe for a special event celebrating the achievements of women leaders.

Last month, Prudential hosted the Women Aces in Leadership event in Hong Kong. This event was linked with the women's tennis tournament that Prudential has been sponsoring since 2014, as a part of their initiative to emphasize the significance of resilience to the younger generations. Additionally, Prudential aims to promote diversity, equality, and inclusivity in both the sports and business sectors.

At the commencement of the event, Angel Ng, the Regional Chief Executive Officer for Greater China's customer and wealth division at Prudential Group, stated: "Promoting a healthy and active lifestyle among individuals is one of Prudential's key objectives. This is why we are intensely dedicated to backing women in the field of sports."

Over 120 attendees convened to listen to two panel debates where seven women achievers from the spheres of sports and business, featuring four-time Grand Slam tennis winner Naomi Osaka, recounted their individual paths to triumph in their respective industries.

The initial conversation, named "Emerging Talents: Guidance and Psychological Strength for Future Leaders", showcased Osaka as well as Lilian Ng, the director in charge of the Strategic Business Group at Prudential Group, and Mary Huen, the Chief Executive Officer for Hong Kong, Greater China, and North Asia at Standard Chartered Bank.

BOC Life provides insurance policies for those in Hong Kong who wish to spend their retirement years in cities on the mainland. In 2022, it's estimated that about 88,000 individuals from Hong Kong, aged 65 and older, resided in the southern region of Guangdong. This represents an increase of 11% compared to the numbers from 2017.

BOC Life has announced a strategy to provide insurance protection for Hong Kong retirees intending to reside in mainland China, citing the city's aging population as a rising business prospect.

The company, a subsidiary of China's third largest bank, Bank of China, plans to provide cheaper insurance packages for its approximately 150,000 current clients who are considering residing in 18 major cities in mainland China. These cities include nine from the southern Guangdong province, which is part of the Greater Bay Area, as well as Hangzhou, Chengdu, Dali, and Qingdao.

Through their RetireCation plan, policyholders have the option to utilize their cash value to cover the cost of accommodations offered by the company's business associates, stated CEO Wilson Tang. The insurance company also provides guidance on transportation logistics, as well as cultural, medical, and other social events. Policyholders have the flexibility to choose a stay duration of a week or more, he further explained.

"Hong Kong is witnessing a surge in its elderly population, leading to a high need for retirement services," Tang stated during a press conference on Thursday. "Given the steep living expenses, numerous retirees are looking at more affordable living alternatives elsewhere. This is predicted to give rise to fresh business prospects in the future."

In 2023, approximately 22 per cent of Hong Kong's population of 7.5 million were individuals aged 65 and older, as per the data from the statistics department. Life expectancy in Hong Kong has seen a significant rise since 1971, going up to 82.5 years from 67.8 for males and increasing to 88.1 from 75.3 for females. Government records revealed that in 2022, about 88,000 Hong Kong inhabitants aged 65 and above resided in Guangdong, indicating an 11 per cent increase compared to 2017.

BOC Life isn't the only company capitalizing on this market sector. Other firms like Ping An Insurance, HSBC Life and Manulife have also launched retirement-focused products and services to secure a part of the market share. To cope with increasing living expenses, many Hong Kong residents are choosing to spend their money across the border where they can get more value for their money on necessities such as food, leisure activities, and housing.

Four thirty-six

People from Hong Kong are searching for deals on items like roast chicken and soap at an American warehouse retailer located in mainland China.

As an illustration, Ping An provides in-home elderly care services to their policyholders and is in the process of establishing three luxury elderly care facilities in Shenzhen, Guangzhou, and Foshan, according to co-CEO Michael Guo Xiaotao's statement in August. Meanwhile, HSBC Life and Manulife have recently introduced services to assist retirees in Hong Kong in managing their wealth.

Hong Kong provides funding to encourage the release of tokenised bonds with the aim of becoming a centre for cryptocurrency. The city's unofficial central bank is offering up to HK$2.5 million in subsidies for each issuance to eligible issuers of tokenised bonds.

The unofficial main bank of the city has initiated a grant program that will last for three years. This program will provide up to HK$2.5 million (US$321,000) in financial support for each release to eligible tokenised-bond issuers, with a limit of two releases, according to the HKMA's announcement on Thursday.

Tokenized bonds log advantageous interests on a blockchain, which is a decentralized digital record, rather than utilizing conventional computer-based ledger entries.

The initial release demonstrated that the provision of tokenised bonds is successful in Hong Kong, stated Kenneth Hui, a high-ranking official at HKMA, during a press conference on Thursday. He further added that the second release confirmed that this business approach could aid in popularising bond tokenisation in the primary market.

The financial watchdog aims to "expand the limits" by transforming theories into practical uses, as stated by Hui.

Mexico hastens to soothe concerns of Chinese investors in light of Donald Trump's tariff warnings. There's a growing concern among several Chinese individuals that Mexico might yield to the US's coercion to suppress Chinese-backed factories.

Mexican representatives are quickly working to reassure Chinese firms that their investments in Mexico are still appreciated, amid increasing pressure to regulate factories funded by China.

Santiago Toledo, a trade advisor at the Mexican embassy in China, advised Chinese companies in Mexico on Wednesday to stay composed and "wait and see" the developments following the inauguration of the US President-elect Donald Trump.

Toledo emphasized that, despite the unclear future of trade relations in North America, any Chinese firm establishing a manufacturing plant in Mexico would be considered a local manufacturer under current legislation.

"Regardless of whether it originates from Japan, Germany, or China, it transforms into a Mexican firm and integrates into the local supply chain," Toledo stated, during an off-stage conversation at the China International Supply Chain Expo in Beijing.

The country in Latin America is a favored selection due to its closeness to the US and its involvement in the US-Mexico-Canada Agreement (USMCA). This pact ensures that if a specific portion of a product is manufactured within North America, it can be imported into the US market without any tax implications.

The Automobile Industry is undergoing significant transformation, with sustainability driving the rise of electric vehicles, impacting Vehicle Manufacturing and Automotive Sales. Consumer demands for personalized vehicles are reshaping Aftermarket Parts and Vehicle Maintenance, while advancements in Automotive Technology, such as autonomous driving, are becoming the new norm. The need for expertise in Automotive Repair and adaptation in Car Rental Services is growing due to these tech integrations. Supply Chain Management's role has been emphasized by global disruptions, necessitating more resilient operations. Staying compliant with tightening regulations on emissions and safety is critical across the board, from Vehicle Manufacturing to Car Rental Services. Top businesses are leveraging Industry Innovation and Automotive Marketing, using big data to meet shifting Consumer Preferences and Market Trends. Success in this evolving landscape requires a focus on customization, quality, digital marketing, and a deep understanding of market dynamics for Car Dealerships, Aftermarket Parts, and Automotive Repair sectors.

In the fast-paced world of the automotive industry, businesses ranging from vehicle manufacturing giants to local car dealerships are constantly navigating a landscape marked by rapid technological advancements and shifting consumer preferences. At the heart of this bustling ecosystem lie automotive sales, aftermarket parts, car rental services, and automotive repair businesses, each playing a pivotal role in keeping the wheels of the economy turning. As these entities strive for success amid a competitive market, understanding the latest industry innovations, market trends, and effective automotive marketing strategies becomes paramount. This article delves into the critical aspects that drive the automotive business forward, from the top trends shaping the future of vehicle manufacturing to the strategies that ensure profitability in automotive sales and services. With sections dedicated to "Navigating the Road Ahead: Top Trends and Innovations in the Automobile Industry" and "Revving Up Success: Strategies for Automotive Sales, Aftermarket Parts, and Repair Services in Today's Market," readers will gain insights into how businesses can adapt and thrive in an environment influenced by automotive technology, consumer preferences, regulatory compliance, supply chain management, and industry innovation. Whether you're involved in vehicle maintenance, run a car dealership, or are part of the broader automotive sector, this article offers a comprehensive overview of the key factors essential for achieving success in the dynamic automotive market.

• 1. "Navigating the Road Ahead: Top Trends and Innovations in the Automobile Industry"
• 2. "Revving Up Success: Strategies for Automotive Sales, Aftermarket Parts, and Repair Services in Today's Market"

1. "Navigating the Road Ahead: Top Trends and Innovations in the Automobile Industry"

In the fast-paced world of the automobile industry, understanding the top trends and innovations is crucial for businesses aiming to stay ahead. The sector, encompassing vehicle manufacturing, automotive sales, aftermarket parts, car dealerships, vehicle maintenance, automotive repair, and car rental services, is witnessing a significant transformation driven by advancements in automotive technology, shifts in market trends, consumer preferences, and the need for regulatory compliance.

One of the most influential trends reshaping the landscape is the increasing emphasis on sustainability and eco-friendliness, leading to a surge in the production and demand for electric vehicles (EVs). Vehicle manufacturing companies are investing heavily in research and development to create EVs that are not only environmentally friendly but also competitive in terms of performance and affordability. This shift is also affecting automotive sales, with dealerships now needing to adapt their strategies to cater to the growing market segment interested in electric and hybrid vehicles.

In the realm of aftermarket parts and vehicle maintenance, there is a growing trend towards customization and personalization, fueled by consumer preferences for vehicles that stand out. Automotive repair shops and aftermarket suppliers are thus expanding their offerings to include a wider range of parts and accessories that allow for vehicle customization, from aesthetic upgrades to performance enhancements.

Another key trend is the integration of advanced technologies into vehicles and the automotive repair process. Automotive technology, such as autonomous driving features, advanced driver-assistance systems (ADAS), and connected car technologies, is becoming increasingly common. This evolution requires car dealerships, repair shops, and rental services to stay abreast of the latest developments and ensure their staff are trained to handle new technologies. Additionally, the use of big data and analytics in automotive marketing is enabling businesses to better understand consumer preferences and tailor their offerings accordingly.

Supply chain management has also come to the forefront, especially in the wake of global disruptions caused by the pandemic. The automotive industry has felt the impact of supply chain challenges, leading to a renewed focus on building resilience and flexibility in parts sourcing and inventory management. Companies are exploring ways to mitigate risks, such as diversifying their supplier base and leveraging technology to improve supply chain visibility.

Regulatory compliance continues to be a pivotal area, with governments around the world tightening emissions standards and safety regulations. Companies across the automotive spectrum, from vehicle manufacturing to car rental services, must navigate these regulatory landscapes, ensuring their products and operations comply with the latest rules and standards.

Finally, industry innovation remains a cornerstone for success in the automotive sector. From exploring new business models, like subscription-based car rental services, to adopting cutting-edge manufacturing techniques, businesses are constantly seeking ways to innovate and differentiate themselves in a competitive market.

In conclusion, navigating the road ahead for businesses in the automobile industry involves a delicate balancing act of embracing new technologies, adapting to changing consumer preferences, ensuring regulatory compliance, managing supply chain complexities, and driving forward with innovation. Those that can effectively leverage these trends and innovations are well-positioned to lead the market and meet the evolving needs of today’s consumers.

2. "Revving Up Success: Strategies for Automotive Sales, Aftermarket Parts, and Repair Services in Today's Market"

In today's rapidly evolving automobile industry, businesses within automotive sales, aftermarket parts, and repair services sectors are constantly seeking innovative strategies to rev up their success and maintain a competitive edge. Understanding and implementing top practices in market trends, consumer preferences, and industry innovation is crucial for companies aiming to thrive. Here's how businesses in these sectors can accelerate growth and customer satisfaction.

**Automotive Sales: Navigating the Road Ahead**

For car dealerships, staying ahead in the highly competitive automotive sales landscape requires a multifaceted approach. Embracing automotive technology and digital marketing strategies are key. Today's consumers begin their journey online, making a strong digital presence essential for dealerships. From virtual showrooms to online financing options, providing a seamless digital experience can significantly boost sales. Additionally, understanding and adapting to consumer preferences, such as the increasing demand for electric vehicles (EVs) and sustainable practices, can position dealerships as forward-thinking leaders in vehicle manufacturing and sales.

**Aftermarket Parts: Customizing the Route to Success**

The aftermarket parts sector thrives on customization and quality. With vehicle owners looking to personalize their rides or enhance performance, businesses that offer unique, high-quality aftermarket parts are more likely to capture the market. Supply chain management plays a pivotal role in ensuring the timely availability of these parts. Furthermore, staying informed about the latest automotive technology and trends enables businesses to offer the most sought-after products. Effective automotive marketing strategies, highlighting the benefits and unique selling propositions of these parts, can significantly improve sales and customer loyalty.

**Automotive Repair: Tuning Up for Future Challenges**

For automotive repair services, expertise and trust are the cornerstones of success. In a market where vehicle maintenance and repair are in constant demand, businesses that offer reliable, high-quality services stand out. Staying updated with industry innovation and training staff on the latest automotive technology are essential. This not only improves the efficiency and quality of repairs but also ensures compliance with the latest regulatory standards. Additionally, adopting effective supply chain management practices ensures that necessary parts are always available, minimizing downtime for customers. Offering personalized services and establishing strong customer relationships through excellent service can lead to repeat business and referrals, which are invaluable in this sector.

**Conclusion**

Success in the automotive business, be it in sales, aftermarket parts, or repair services, demands an acute awareness of market trends, consumer preferences, and the ability to leverage automotive technology. By focusing on industry innovation, regulatory compliance, and crafting effective automotive marketing strategies, businesses can navigate the challenges of today's market and drive towards a prosperous future. Whether it's through enhancing online sales platforms, providing top-notch customized parts, or offering trustworthy repair services, the key to accelerating success lies in exceeding customer expectations and adapting to the ever-changing automotive landscape.

In conclusion, navigating the complexities of the automobile industry requires businesses to stay ahead of market trends, embrace industry innovations, and respond effectively to consumer preferences and regulatory changes. Whether it's vehicle manufacturing, automotive sales, aftermarket parts, car dealerships, vehicle maintenance, automotive repair, or car rental services, success hinges on a multifaceted approach that includes a deep understanding of automotive technology, strategic automotive marketing, and excellence in supply chain management. As we've explored in this article, from the latest in industry innovation to the best practices in revving up sales and services, the key to thriving in today's dynamic automotive market lies in the ability to adapt and innovate. Businesses that can navigate the road ahead with agility, ensuring regulatory compliance while meeting the evolving needs of their customers, will not only survive but flourish. The automobile industry stands at the cusp of a new era, driven by technology and transformed by consumer demand and environmental considerations. As such, embracing the shifts in automotive sales, aftermarket parts availability, car dealership operations, and vehicle maintenance and repair services will be critical. By focusing on the top trends and adopting effective strategies, automotive businesses can accelerate their journey towards growth and success in the ever-competitive automotive sector.

EU's leading trade official asserts that an electric vehicle agreement with China is far from being finalized. Despite fifty hours of discussions, there's still no consensus on cost commitments, states Sabine Weyand, EU's director general for trade.

A high-ranking official from the European Union has stated that the EU and China are still a long way from resolving their ongoing disagreement over electric vehicles. This official also claimed that any reports implying the contrary are misleading.

"Various reports regarding the impending agreement on battery electric vehicles have been somewhat perplexing," Sabine Weyand, the European Union's trade director general, stated in Brussels on Tuesday.

We've engaged in 50 hours of talks with our colleagues from China. The conversations were productive, yet we were unable to reach a consensus on pricing commitments. Furthermore, there are still unsettled structural matters," she stated.

The committee contends that these financial aids have played a significant role in boosting China's immense expansion in the sector. There's a concern that if these imports continue without regulation, their low pricing could hurt the revenue of Europe's domestic electric vehicle industry.

The duties, varying from 7 per cent for Tesla to a high of 35.3 per cent for the government-owned SAIC, have significantly strained the EU-China relations.

Hong Kong's advancements in AI serve as a bridge between China and the rest of the world despite political friction. The Chief Technology Officer at the Hong Kong Productivity Council emphasizes that Hong Kong continues to be a significant platform for global AI companies.

"Often, we're unsure if we should approach our Western colleagues for collaboration," Cheung admitted to the South China Morning Post. "This is because, despite their potential interest in partnering with us… they might not possess the liberty to [do so]. This situation is somewhat disheartening."

"He stated that from a scientific perspective, it has been challenging in recent years, especially in the field of AI."