SEA the winner of US-China trade war?

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Hello reader,

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

Image credit: Timmy Loen

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 an eye on

Hot stocks, earnings reports, restructuring, pressure from activist investors, and more.

2 Eye-popping facts

The one you didn’t see coming