The podcast explores stop-gap funding for Ukraine's weapons, China's infrastructure cutbacks, US inflation increase. Tension between US and China prompts companies to move to SE Asia for technology access. Malaysia emerges as a key player in chip wars.
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Quick takeaways
EU and US provide military aid to Ukraine against Russia
Malaysia emerges as a key player in chip manufacturing amid US-China tensions
Deep dives
Boost in Military Aid for Ukraine
Both the EU and the U.S. have provided additional military aid to Ukraine to support its war with Russia. The EU is set to approve 5 billion euros in military aid, while the U.S. has allocated $300 million for ammunition and artillery. Ukraine faces challenges in funding its war efforts against Russia, prompting concerns among Western policymakers about the need for continual support to combat Russian forces.
China's Economic Growth Targets and Spending Cuts
China aims for a 5% economic growth target this year but has ordered deep cuts in local infrastructure spending to achieve this goal. The cuts are focused on highly indebted areas to reduce excessive spending, affecting provinces like Goy Joe. However, reducing investments in these provinces could lead to negative impacts on consumption, jobs, and government spending, potentially hindering overall economic growth.
Malaysia's Semiconductor Industry Boom
Malaysia emerges as a hotspot for chip manufacturing investments amid tensions between Beijing and Washington. Companies worldwide seek alternatives to Chinese technology due to U.S. sanctions, benefiting Malaysia's semiconductor industry. Malaysia received significant foreign direct investment, with Penang State alone seeing a surge of 60 billion ringgit. Challenges such as talent shortages and fears of restrictions on Chinese technology could potentially slow down Malaysia's semiconductor industry growth.
The EU and US found some stop-gap funding for weapons for Ukraine, China is scrapping a number of infrastructure projects in indebted regions, and US inflation ticked up unexpectedly. Plus, tension between Beijing and Washington over access to technology has prompted many companies to open factories in south-east Asia.
The FT News Briefing is produced by Fiona Symon, Sonja Hutson, Kasia Broussalian and Marc Filippino. Additional help by Sam Giovinco, Breen Turner, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Monica Lopez. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.