Good evening. South Korea is on the hunt for “chip alliances” as it tries to reinvent its semiconductor industry. Our cover story this week explains how the U.S.-led chip “decoupling” from China has put South Korea in a tricky spot. Elsewhere, we have infographics on McDonald’s big ambitions in China; an interview with Jason Matheny on tech, national security and China; a reported piece on Chinese consumer tech brands’ efforts to go global; and an op-ed about why China won’t fight the Houthis. If you’re not already a paid subscriber to The Wire, please sign up here.
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Seoul’s Big Switch
South Korea dominates the world’s production of memory chips, but its semiconductor firms have long depended on Chinese manufacturing. With the U.S. now trying to “decouple” the semiconductor industry from China, South Korea faces a significant challenge to reinvent itself. Eliot Chen reports.
The Big Picture: Big Mac, Big Ambitions
McDonald’s is aiming to have more than 10,000 restaurants in China by 2028. This week’s infographics by Aaron Mc Nicholas trace the path McDonald’s took to enter China, the highs and lows of its time in the country, and assesses why the company feels the time is right to double down.
A Q&A with Jason Matheny
Jason Matheny is one of the nation’s leading experts on the interplay between technology and national security. In the Biden White House, he held three positions simultaneously: Deputy Assistant to the President for National Security, National Security Council Coordinator for Technology, and Deputy Director of the Office of Science and Technology. He was the go-to guy in making sure that the administration understood how advances in technology affected national security, particularly when it comes to China. After leaving the administration in 2022, he became CEO of RAND Corp., the national security think tank. In this week’s Q&A with Bob Davis — part of our ‘Rules of Engagement’ series — he talks about semiconductors, AI and the future of Chinese investment in the United States.
Jason Matheny
Illustration by Lauren Crow
Chinese Consumer Tech Brands Are Going Global
While chuhai (出海 or ‘going overseas’) has been a buzzword among Chinese entrepreneurs and businesses since the start of this decade, companies are pursuing the strategy with greater urgency amid China’s economic slowdown. As domestic consumption slows, Rachel Cheung reports, Chinese businesses are trying to gain a foothold elsewhere.
Why China Won’t Fight the Houthis
China’s main aim is to blame the U.S. and Israel for turmoil in the Middle East, argues Yun Sun.
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