SEA the winner of US-China trade war?

Opening Bell 🔔 is Tech in Asia’s free newsletter that brings you the biggest news and latest trends around Asia’s publicly listed tech companies. [Read from your browser]( Opening Bell 🔔 Welcome to the Opening Bell! Delivered every Monday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and latest trends on Asia’s publicly listed tech companies. If you’re not a subscriber, get access by [registering here](. --------------------------------------------------------------- Written by Peter Cowan Journalist Hello {NAME} If a butterfly flapping its wings in Beijing can cause rain in New York’s Central Park, what happens when two superpowers go to (trade) war? As the US-China trade spat rumbles on, it’s becoming harder to ignore the fallout, which has escalated to more than a drop of rain. One just needs to scan the headlines to see the changes writ large as Chinese firms expand beyond their borders and pump more cash into what is fair to call a [tech arms race](. The US$40 billion fund China will use to boost its [semiconductor industry]( is one such example of the cash that the country is willing to splash on the war. Meanwhile, in the private sector, GDS Holdings (GDS, NDAQ) recently announced plans to build a [data center]( in Indonesia. The partner for that particular deal is sovereign wealth fund Indonesia Investment Authority, which gives the joint venture a degree of gravitas - or authority, you might say. Today’s Big Story by my colleague Melissa dives into how the latest salvo from the US in this trade war could actually benefit Southeast Asian companies. This is one flapping butterfly worth keeping an eye on. -- Peter  ---------------------------------------------------------------  THE BIG STORY [The US-China tech rift's surprising beneficiary: Southeast Asia]( As US investments in China-based quantum, AI, and semiconductor firms face scrutiny, their Southeast Asian peers could have the most to gain. ---------------------------------------------------------------  3 TRENDS TO KEEP EYE ON Hot stocks, earnings reports, restructuring, pressure from activist investors, and more. 1️⃣ Camelback ride for Gojek: Gojek has announced its latest partnership in Vietnam. It signed a [deal]( with local electric vehicle (EV) startup Selex Motors to use the company’s Selex Camel electric motorbikes across its services. Gojek, which is owned by Indonesian conglomerate GoTo (GOTO, IDX), says the EVs will help drivers save on fuel and maintenance costs by 35% and 50%, respectively. The company announced partnerships with two other Vietnamese players earlier this year: EV firm Dat Bike and payments company MoMo. 2️⃣ The chips are down: Despite the brouhaha between the US and China over the industry, an Allianz Trade report has actually predicted that global semiconductor sales will [fall]( this year to US$495 billion. That would represent a drop of 15% compared to 2022, after the sector recorded a 24% year-on-year growth in 2021. While the US and China tussle is partly related to the ability of semiconductors to boost military capabilities, weakening consumer electronics demand could push down the chip industry as a whole. Asian markets and companies like TSMC (TSM, NYSE) that have long been dominant in the semiconductor industry may be getting a touch hot under the collar. 3️⃣ Holding on for a hero: Hero MotoCorp (HEROMOTOCO, NSE) and Singapore’s sovereign wealth fund GIC are [investing]( US$108 million in Ather Energy, an Indian EV startup. Before the fresh investment, Hero MotoCorp had a 33.1% stake in Ather, which looked like it was on its way to becoming a unicorn until the Indian government [cut]( subsidies for two-wheel EVs. Ather has about 1,500 charging points across India and [said]( the funds would be used to launch new products and expand its charging network.  2 EYE-POPPING NUMBERS Tech in Asia scours the internet to bring you head-turning numbers from the world of business. - [US$15 million]( The amount that Amazon (AMZN, NDAQ) announced it will invest in nature-based projects in Asia Pacific through its US$100 million Right Now Climate Fund. Doesn’t seem like an awful lot for a company with over US$500 billion in annual revenue and one that[ emittedÂ]( million metric tons of carbon dioxide last year.  - [US$3 billion]( Delivery Hero’s (DHER, FWB) cumulative losses by [adjusted EBITDA]( since 2018. The good news for the German food delivery firm and owner of Foodpanda is that in the first half of this year, it actually recorded a profit of US$10 million by the same metric. THE ONE YOU DIDN'T SEE COMING We spotlight the story that had everyone talking and social media buzzing during the past week. Take my money or my life, but not my iPhone: Apple (AAPL, NDAQ) enthusiasts in the employ of central Chinese government agencies were dealt a crushing blow this week, as they were [banned]( from using their iPhones at work. According to the Wall Street Journal, which first reported the news, the move is a part of Beijing’s efforts to reduce reliance on foreign tech and to increase national cybersecurity. No word yet on if the ban is actually a secretive ploy to reduce soaring screen time among bored civil servants. Kidding aside, reports of the ban have had a serious effect on Apple’s stock already, as the company’s shares [fell]( 3.6% after the news broke. China is Apple’s [second-biggest market]( by sales after the US, so any widening of the ban beyond public officials could hurt big time. That’s it for this edition - we hope you liked it! Not your cup of tea? You can unsubscribe from this newsletter by going to our preference center at the bottom of this email. Happy investing and see you next week! Disclaimer: This content is for informational purposes only. Kindly do not construe any such information as legal, tax, investment, financial, or other advice. [ADVERTISE]( | [SUBSCRIBE]( | [HIRE]( | [FIND JOBS]( P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails? Switch to a different frequency or get new content through our [preference center]( or [unsubscribe](. 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