HONG KONG: A senior Alibaba executive slammed the United States’ treatment of China’s Huawei Technologies as “extremely unfair,” saying measures by the country to curb the firm’s access to their markets was “very politically motivated.”
Joe Tsai, the e-commerce giant’s executive vice-chairman, also sharply criticized what he called an attempt by the US government to curb China’s rise via a trade war.
He struck an optimistic note about China’s economy, saying it remained fundamentally strong despite a slowdown, and added that stimulus such as tax cuts needed to be imposed to prop it up even as it battles US efforts to dent its businesses.
US President Donald Trump’s administration has not only slapped crippling tariffs on Chinese imports, it has also stepped up scrutiny of Chinese investments in the country and torpedoed many deals citing national security concerns.
Huawei, the world’s biggest network equipment maker, has been caught up in the crosshairs, with the United States alleging its products could be used by Beijing for espionage.
Huawei has repeatedly denied the allegation.
“I think what the American government and together with the Five Eyes Alliance – what they’re trying to do with Huawei — is a bit unfair, there’s definitely a political agenda behind it,” Tsai said at a Reuters BreakingViews event in Hong Kong.
The United States and its allies, Australia and New Zealand, have restricted Huawei’s access to their markers, while Canada and the United Kingdom are reviewing whether to curb access.
Last month, Meng Wanzhou, Huawei’s finance chief, was arrested in Canada, sparking a diplomatic row between Canada and China. She faces extradition to the United States.
Tsai, a Canadian passport holder, said he hoped the relationship between Canada and China would improve.
“I love Canadians, they’re great,” Tsai joked when asked about Meng’s arrest, calling it a politically charged question.
“ANTI-CHINA PROBLEM“
Relations between Washington and Beijing have deteriorated rapidly amid a tit-for-tat escalation in tariffs that has roiled financial markets and raised fears over the impact on global supply chains and investment plans.
“President Trump may have started it focusing on the trade deficit itself ... but over the course of the last nine months it was blown into a bigger anti-China problem,” Tsai said, adding the trade war has spurred anti-China sentiment.
“It worries everybody.”
Alibaba has been previously critical of the trade war as well, with founder Jack Ma calling the spat the “most stupid thing in the world.”
The company, which promised in 2017 to create a million US jobs, backed out last year, blaming the trade war.
Tsai said US regulators had made it very difficult for Alibaba to make investments in the country, adding that the company would look at other parts of the world for investment.
Just last year, a US government panel rejected a bid by Ant Financial, which Ma owns together with Alibaba executives, to buy US money transfer company MoneyGram International Inc. on national security concerns.
Among the most high-profile Chinese deals to be scuttled under the Trump administration, the $1.2 billion deal’s failure was a major blow for Ma, who was looking to expand Ant’s footprint amid fierce competition back home from rival Tencent Holdings Ltd’s WeChat.
CHINA OPTIMISM
Brushing aside the pains of the trade war, Tsai said people were over worried about China’s economy. Chinese consumers are still fundamentally very strong and consumption in China is going to grow over the next 5-10 years, he said.
Comments from Tsai come at a time when China’s economic growth has slowed to its weakest pace in nearly three decades amid faltering domestic demand and bruising US tariffs.
Growth is expected to ease further this year.
Tsai said Alibaba will continue to invest aggressively despite the uncertain business environment.
Asia’s second most valuable public company has been investing heavily in offline retail and rural e-commerce to win new customers as China’s urban market shows signs of saturation.
Alibaba slams US treatment of Huawei, efforts to curb China’s rise
Alibaba slams US treatment of Huawei, efforts to curb China’s rise
Oil Updates – prices climb after Israel strikes Gaza, truce talks continue
SINGAPORE: Oil prices edged higher on Tuesday after Israel struck Rafah in Gaza, while negotiations for a ceasefire with Hamas continued without resolution, according to Reuters.
Brent crude futures were up 9 cents, or 0.11 percent, at $83.42 per barrel at 9:35 a.m. Saudi time, while US West Texas Intermediate crude futures rose 7 cents, or 0.09 percent, to $78.55 a barrel.
“Oil prices opened up this morning, with some roadblocks in the ceasefire talks between Israel and Hamas leading market participants to price for geopolitical tensions to potentially drag for longer,” said Yeap Jun Rong, market strategist at IG.
Market participants will be looking ahead to upcoming US crude inventories data releases, Yeap added.
US crude oil and product stockpiles were expected to have fallen last week, a preliminary Reuters poll showed on Monday. The crude inventories could have on average fallen by about 1.2 million barrels in the week to May 3, based on analyst forecasts.
During the session, a stronger dollar capped gains in oil futures as it makes crude more expensive for traders holding other currencies. The dollar index, which measures the greenback against six major peers, was last up at 105.25.
Oil prices had settled higher on Monday, partially reversing last week’s declines. Both contracts had posted the steepest weekly losses in three months as the market focused on weak US jobs data and the possible timing of a Federal Reserve interest rate cut.
Palestinian militant group Hamas on Monday agreed to a Gaza ceasefire proposal from mediators, but Israel said the terms did not meet its demands and pressed ahead with strikes in Rafah while planning to continue negotiations on a deal.
Israeli forces struck Rafah on Gaza’s southern edge from the air and ground and ordered residents to leave parts of the city, which has been a refuge for more than 1 million displaced Palestinians.
The absence of a settlement between the parties in the now seven-month long conflict has supported oil prices, as investors worry regional escalation of the war will disrupt Middle Eastern crude supplies.
Saudi Arabia’s move to raise the official selling prices for its crude sold to Asia, Northwest Europe and the Mediterranean in June also supported prices, signalling expectations of strong demand this summer.
The world’s top exporter hiked its flagship Arab Light crude oil price to Asia to $2.90 a barrel above the Oman/Dubai average in June, the highest since January and at the upper end of traders’ expectations in a Reuters survey.
Saudi Aramco’s net profit hits $27.27bn in Q1 2024
RIYADH: Energy giant Saudi Aramco reported a net profit of $27.27 billion in the first three months of this year, marking a 2.04 percent increase compared to the previous quarter.
According to the company’s statement, the state-owned oil firm’s total revenue for the first quarter stood at $107.21 billion, with the total operating income for the period reaching $58.88 billion.
Amin H Nasser, president and CEO of Saudi Aramco, said: “Our first quarter performance reflects the resilience and strength of Aramco, reinforcing our position as a leading supplier of energy to economies, to industries and to people worldwide.”
However, when compared with the first quarter of the previous year, the net profit of the Tadawul-listed firm declined by 14.44 percent by the end of March 2024.
Despite lower net income, Aramco declared a base dividend of $20.3 billion for the first quarter and anticipates distributing its fourth performance-linked dividend of $10.8 billion in the second quarter.
PIF’s Alat unveils electrification, AI infrastructure business units
RIYADH: Alat, a flagship company of the Public Investment Fund, unveiled two business units in electrification and AI infrastructure, to establish Saudi Arabia as a premier manufacturing hub globally.
The company unveiled its plans during the Milken Institute Conference held in Los Angeles.
According to a press release, the move comes as part of the PIF company’s strategic vision to spearhead a paradigm shift in industry sustainability while propelling Saudi Arabia on the global stage.
Alat Global CEO Amit Midha said: “I am pleased to announce these two exciting new divisions as they will make a significant contribution to Alat’s overall strategic goal of developing an advanced, sustainable future for the industry.”
The electrification arm will fortify grid technology, catering to the burgeoning demand for electricity driven by exponential growth in renewable energy sources like solar, wind, and hydrogen.
By harnessing Saudi Arabia’s solar energy and other clean resources, the firm seeks to manufacture innovative solutions that will catalyze the global energy transition and drive decarbonization in industry.
The electrification unit will specifically focus on enhancing transmission and distribution technologies, facilitating the integration of renewable energy into existing grids, and pioneering advancements in gas and hydrogen generation and compression technologies.
On the other front, the AI Infrastructure business unit will address the escalating global demand for AI capabilities across industries.
This entails the development of cutting-edge technologies encompassing network and communications equipment, servers, data center networking, storage, industrial edge servers, and Industry 4.0 computing.
“The global electrification market size reached $73.64 billion in 2022 and it is expected to hit around $172.9 billion by 2032, growing at a CAGR of 8.91 percent between 2023 and 2032,” the press release added.
The global AI Infrastructure market is set to hit $460.5 billion by 2033, with a robust 28.3 percent compound annual growth rate, driven by widespread adoption across industries for innovation, decision-making enhancement, and task automation.
As a gold sponsor at the Milken Institute Conference, the firm now has nine business units focused on sustainable technology manufacturing.
“Alat will invest $100 billion by 2030 across these business units to develop key partnerships and build advanced manufacturing capabilities in Saudi Arabia to bring jobs and economic diversification to the Kingdom,” the press release said.
Saudi Arabia’s Qiddiya to build region’s largest water theme park
- Aquarabia will also feature the first underwater adventure trip with diving vehicles
RIYADH: Saudi Arabia Qiddiya Investment Co. will construct the region’s largest water theme park as a cornerstone of its Six Flags Qiddiya City venture it was announced on Monday.
To be named Aquarabia, Qiddiya hopes to draw visitors from around the globe with 22 attractions and water experiences suitable for all family members, as well as some “world-first” attractions, Saudi Press Agency reported.
These attractions include the world’s first double water loop, the tallest water coaster with the highest jump, the longest and highest water racing track, and the tallest water slide.
Aquarabia will also feature the first underwater adventure trip with diving vehicles, catering to adventure enthusiasts with water sports areas designated for rafting, kayaking, canoeing, free solo climbing, and cliff jumping.
Additionally, the park will introduce the first surfing pool in the Kingdom, incorporating immersive design elements themed around ancient desert water springs and Qiddiya’s wildlife.
With sustainability in mind, Aquarabia will implement advanced systems capable of reducing water waste by up to 90 percent and decreasing energy consumption. As part of the Six Flags Qiddiya project, the venture, the first Six Flags of its kind outside North America, aims to recycle operational waste, diverting over 80 percent from landfill.
Scheduled to open in 2025, both Aquarabia and Six Flags Qiddiya City are situated within Qiddiya City, forming a fully walkable neighborhood offering a diverse array of activities, accommodations, dining options, and relaxation spots.
Abdullah Al-Dawood, managing director of Qiddiya Investment Co., hailed the announcement as a significant milestone for Qiddiya and the entertainment, tourism, and sports sectors in the Kingdom.
He emphasized that the projects will cater to diverse entertainment needs while contributing to economic diversification and job creation in the tourism sector.
The project also aims to meet the growing local demand for immersive entertainment experiences, particularly in water activities, aligning with the goals of Saudi Arabia’s Vision 2030 to enhance local tourism and employment opportunities.
The unveiling of Aquarabia follows the announcement of several other entertainment, sports, and cultural attractions in Qiddiya, including the world’s first multi-use gaming and electronic sports area, the multi-sport Prince Mohammed bin Salman Stadium and the Dragon Ball amusement park.
Saudi Arabia ascends as key destination for global talent: BCG report
RIYADH: Saudi Arabia has emerged as a key player in attracting global talent amid ongoing geopolitical shifts and financial uncertainty, moving up two spots on the list of preferred countries for workforce mobility.
The “Decoding Global Talent 2024” report by Boston Consulting Group highlights Saudi Arabia’s rise to the 26th most preferred country, underscoring the success of the Kingdom’s strategic initiatives to position itself as a global hub for professionals.
This fourth edition of the study draws insights from over 150,000 professionals across 188 nations, tracking global talent trends since 2014.
Riyadh’s rise to the 54th rank globally underscores its emergence as a hub of opportunity and progress in the eyes of global talent.
Christopher Daniel, managing director and senior partner at BCG, said: “As the global talent shortage becomes an increasingly pressing challenge for the world's foremost economies, Saudi Arabia is emerging as a pivotal player in narrowing this gap.”
He added: “With a significant proportion of respondents citing the quality of job opportunities, the attractive income, tax, and cost of living, as well as the assurance of safety, stability, and security as key reasons for choosing the Kingdom, it’s evident that Saudi Arabia’s strategic investments in its labor market are bearing fruit.”
Daniel noted that the Kingdom is leveraging labor migration to enhance its workforce, offering a secure and hospitable environment that caters to the diverse needs of international professionals.
“By fostering a job market that is attuned to the evolving aspirations of global talent while prioritizing their well-being, Saudi Arabia is positioning itself as a compelling destination for those seeking growth and fulfillment in their careers,” he said.
Furthermore, the report highlights that younger generations and individuals from rapidly expanding populations are particularly attracted to global mobility, pursuing diverse experiences and opportunities for professional growth.
With 23 percent of global professionals actively pursuing international positions and 63 percent remaining receptive, Saudi Arabia is well-positioned to capitalize on this trend.
The Kingdom offers an enriching environment for a globally oriented workforce to excel and progress in their careers, presenting an enticing option for individuals seeking both personal and professional advancement in an ever more interconnected global landscape.
