Southeast Asia: a business haven amid US-China tensions?

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Hello reader,

There’s an African saying that goes: “When elephants fight, it is the grass that suffers.”

I first heard this saying being used to describe Singapore’s position as a neutral party between the US and China. Whenever either side makes a move against each other, smaller countries like Singapore tend to suffer from the fallout, economically or otherwise.

This on-again, off-again relationship between the two world powers has soured in recent years, and one would think that the old adage would apply once more.

However, this time might be different. Instead of getting trampled in the fight, Singapore – along with the rest of Southeast Asia – could potentially come out on top.

Today we look at:

• How Southeast Asia might benefit from US-China tensions
• BasisAI’s co-founder stepping down from Aicadium
• Other newsy highlights such as 2C2P’s first loss in three years and GGV Capital dividing its business into two firms.

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Buttered on both ends

Image credit: Timmy Loen

When US President Joe Biden signed an executive order in August that barred certain US tech investments in China, it was kind of a wake-up call for me. “Well damn,” I thought, “things really don’t seem to be getting better.”

In an ideal world, the two would kiss and make up. But the night is dark and full of terrors, so I’ll make do with the silver lining that Southeast Asia could potentially benefit from the conflict.

• It just takes some time: According to Withersworldwide partner Simon Wong, the ban was not a surprise for major tech firms. It covers three tech sectors: semiconductors and microelectronics, quantum information technologies, and AI.
• Little girl, you’re in the middle of the ride: In these sectors, their Southeast Asia-based equivalents could become an alternative option for investors, but how much each country in the region can benefit from this activity could vary depending on its ties with the US and its openness to multinational firms.* Everything will be just fine?: The ban is expected to take effect next year. Before that happens, lawmakers will need to decide on the details, such as which types of investments and transactions the ban specifically covers and how its rules will be enforced.

Read more: The US-China tech rift’s surprising beneficiary: Southeast Asia

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