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Afternoon All, 
 

Pressure on China is mounting from all sides. Overnight, the US announced the Chinese consulate in Houston required to shut in the 72 hours, US/Japan to conduct naval exercises in the South China Sea, French all but ban Huawei 5G equipment by 2028. Even John Howard slipped in the slipper to Xi Jinping yesterday, calling him a "bully". 

The push back is real against China, as are the implications for certain sectors and companies.  From a markets perspective, think about the push to break dependence on China (for key materials that could be bargaining tools) - for example, Lynas (LYC.ASX $LYC) helping the US on rare earths, or Novonix (NVX.ASX $NVX) which will be the only producer of synthetic graphite outside of China for the EV battery market (setting up their plant in the US).

 

Cheers

Tom

In Houston China has a problem - Embassy to shut in 72 hrs

The basis for the closure was espionage, stealing intellectual property. Not unprecedented, as the Russians did the same thing when asked to leave an embassy (I think in New York), but it was straight out the back to start burning documents.

Video Below. BBC Article


US Secretary of State Address to Governors on Chinese Interference & Competition
 

Worth listening to Pompeo's address to Governors back in February, for a framework to understand how the US feels about opening up to China. It is (or was) a one way street to the US, with very conditional to access back into China.

To quote from the address - "The Chinese Government has been methodical in the way it’s analyzed our system, our very open system, one that we’re deeply proud of. It’s assessed our vulnerabilities, and it’s decided to exploit our freedoms to gain advantage over us at the federal, state, and the local level."


Click Below to listen to address and transcript

French limits on Huawei 5G equipment amount to de facto ban by 2028

Huawei is pretty much being rejected everywhere.

They won't be able to renew the licences in France, so an effective ban.

Click below for Reuters Article


US accuses Chinese of stealing COVID Research
 

"The U.S. Justice Department indicted two Chinese nationals over their role in what the agency called a decade-long cyber espionage campaign that targeted defense contractors, COVID researchers and hundreds of other victims worldwide" Reuters Link


Novonix - NVX - Only Synthetic Graphite Production being scaled up outside China

($NVX NVX $1.23)

The updates post the recent equity raise have been incredibly interesting. Their latest presentation is well worth a look. Breakthroughs in the cathode/anode technology for battery production. Speculation these new breakthroughs will be part of the Tesla million mile battery (Tesla Battery Day scheduled for 15th September). Building the only synthetic graphite (a major component in EV/Battery production) outside of China/Asia, initial 500t order with Samsung.

On a run today - no doubt Chinese tensions, along with coming US listing are helping. (Slide below from their Presentation in May)

Best, 
Tom

Thomas Schoenmaker
Head of Wealth Management
Director

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