Weekly Highlights of Global Investment | Issue 79, July 20, 2024
Brief
The world's first AI Act will come into effect on August 1 across the EU；Google OpenAI and other 14 giants set up a security AI alliance；The EU plans to reduce import duties on Volkswagen and BMW electric vehicles in China；China grants five-year multiple-entry visas to Hungarian citizens ；144-hour Visa-free Transit to 37 Locations in China；Two of Singapore's largest law firms are expanding their operations in China, capitalizing on the trend of Chinese companies going global ；Three major solar companies announce "entry" into Saudi Arabia；BYD intensifies its offensive in Southeast Asia, to build a second electric vehicle factory in Cambodia ；Gestamp in the US invests $390 million in Michigan；Huawei Opens Innovation Hub in Singapore；BYD Invests in New Battery Plant in Hungary；Amore Pacific's luxury skincare brand AP YOUNGBIN officially enters the Chinese market；GAC Aion Expands Global Footprint with New EV Factory in Thailand.
Policy and Industry Dynamics
The world's first AI Act will come into effect on August 1 across the EU
The EU's first AI Act, released globally, will come into effect across the EU on August 1, marking the most comprehensive regulatory act for artificial intelligence to date. The act also sets the foundation for global AI regulation, aiming to achieve the "Brussels effect" similar to the General Data Protection Regulation (GDPR). According to the latest act, companies that violate the regulations will be subject to administrative fines of up to 35 million euros or up to 7% of their annual revenue, whichever is higher.
Google OpenAI and other 14 giants set up a security AI alliance
On July 18, the global technology giant Google joined hands with 14 leading companies including Microsoft, Amazon, Intel, Nvidia, IBM, Cisco, Paypal, OpenAI, Anthropic, Cohere, Chainguard, WIZ and GenLab. The Aspen Security Forum officially announced the formation of the Alliance for Secure Artificial Intelligence (CoSAI). CoSAI aims to build a resource sharing platform for all AI practitioners and developers to help them design safer and more reliable AI systems by providing detailed manuals and efficient tools.
144-hour Visa-free Transit to 37 Locations in China
On July 15, 2024, the Chinese National Immigration Administration announced that three new ports of entry—Zhengzhou Xinzheng International Airport, Lijiang Sanyi International Airport, andMohan Railway Port—have been added to the list of ports eligible for the 144-hour visa-free transit policy. This brings the total number of ports of entry in China where this policy is applicable to 37.
Under the relevant policy, citizens of 54 countries, including the United States, Canada, and the United Kingdom, holding valid international travel documents and a connecting flight ticket with a confirmed date and seat for a destination within 144 hours, can transit through these ports to a third country (region) without a visa. They can stay in the designated areas for up to 144 hours and engage in short-term activities such as tourism, business, visiting relatives, or other purposes (if the country has signed a visa-free agreement with China or if China has unilaterally granted visa-free status, those rules apply).
Two of Singapore's largest law firms are expanding their operations in China, capitalizing on the trend of Chinese companies going global
Hew Kian Heong, the head of Rajah & Tann Asia's Shenzhen representative office, said in a phone interview on July 17 that Rajah & Tann Asia will open a representative office in Shenzhen's Qianhai district in October this year, with an initial team of 10 lawyers. The office, located in the city's technology hub, will focus on international arbitration and sectors such as construction, technology, media, and telecommunications. Allen & Gledhill, a Singaporean law firm, opened a new representative office in Shanghai in January this year to enter China and help Chinese companies "navigate the challenging and ever-changing business and legal environment" in Southeast Asia.
on the same day On July 16, after Yineng Power announced that it had signed a contract with Saudi Arabia's ALGIHAZ to build the world's largest energy storage project, Jinko Energy and TCL Zhonghuan announced their own heavyweight investment plans. Jinko Energy plans to build a 10GW high-efficiency battery and module project in Saudi Arabia, while TCL Zhonghuan plans to build a 20GW photovoltaic crystal wafer project in Saudi Arabia. Earlier, solar power industry leaders such as GCL Technology, JunDa Shares, CITIC Power and Trina Solar all announced plans to build factories in the Middle East. A full-fledged photovoltaic industry chain is emerging in the Middle East, with capacities covering the upstream and downstream of polysilicon and important auxiliary materials.
On July 16, Cambodian Prime Minister Hun Manet said on a social media platform that he had met with Liu Xueliang, general manager of BYD's Asia-Pacific Automotive Sales Business, and that BYD plans to invest in setting up an electric vehicle assembly plant in Cambodia, with an annual capacity of 20,000 electric vehicles. The Cambodian factory will become BYD's second production base in Southeast Asia. Hun Manet said that the electric vehicles produced by BYD's Cambodian factory will not only be supplied to the Cambodian market, but also exported to other Southeast Asian countries. On July 4, BYD's Thailand factory was completed and put into operation, with an annual capacity of about 150,000 vehicles.
On July 15, Spanish auto parts supplier
Gestamp plans to invest $390.2 million in Michigan, creating 580 new jobs, including building a new factory in Chesterfield Township to supply General Motors.
Huawei Opens Innovation Hub in Singapore
On July 15, 2024, Huawei launched a new innovation hub in Singapore with a $300 million USD investment to drive advancements in 5G technology and artificial intelligence. This centre will serve as a regional base for research and development, aiming to foster collaboration with local startups and universities.
BYD Invests in New Battery Plant in Hungary
On July 14, 2024, BYD announced plans to construct a new battery manufacturing plant in Hungary with an $800 million USD investment. This facility will cater to the growing demand for electric vehicle batteries in Europe. The plant is expected to start production by the end of 2025 and create approximately 2,000 jobs.
Indonesian billionaire Sukanto Tanoto, through his flagship company Royal Golden Eagle (RGE), plans to invest 11 billion yuan (US$1.5 billion) to build a lyocell fibre plant in Shandong province, China. This follows RGE's recent US$3.3 billion acquisition of Vinda International, a tissue-paper manufacturer. The investment, located in Jining city with an annual capacity of 600,000 tonnes, reflects RGE's confidence in Shandong's industrial foundation and growth prospects. Belinda Tanoto, RGE's managing director, emphasized the partnership's role in promoting green, low-carbon development in the region.
China’s GAC Aion has launched its new electric vehicle (EV) factory in Rayong, Thailand, marking a key step in its international expansion. The $64 million facility, with a capacity of 50,000 vehicles annually, is part of a broader push to establish Thailand as a central EV production hub. Utilizing advanced technologies such as AI and big data, the plant aims to enhance production efficiency and support Thailand's goal of making EVs 30% of its total vehicle output by 2030. This development follows the recent opening of another Chinese EV plant in Thailand, reflecting the country's growing significance in the global automotive industry.