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- 👀 DeepSeek facing EU expulsion?
👀 DeepSeek facing EU expulsion?
Reading time: 4 min 22 sec
☕️ Good morning, friends,
on this last day of June, we want to say thank you. Our community keeps growing, and we appreciate all the positive feedback.
🚀 Benchmarks
| Index | Current | 24 h | YTD | 52W High |
|---|---|---|---|---|
| 🇩🇪 DAX | 24,033.22 | +1.62 % | +20.02 % | 24,479.42 |
| 🇺🇸 NASDAQ | 20,273.46 | +0.52 % | +5.15 % | 20,311.51 |
| 🇰🇷 KOSPI | 3,055.94 | –0.77 % | +27.39 % | 3,129.09 |
| 🇯🇵 Nikkei | 40,150.79 | +1.43 % | +2.15 % | 42,426.77 |
| 🇭🇰 Hang Seng | 24,284.15 | –0.17 % | +23.75 % | 24,874.39 |
| 🇨🇳 Shanghai | 3,424.23 | –0.70 % | +4.96 % | 3,674.41 |
🔢 Facts & Figures
5.9 billion USD
That’s how much China’s CATL, the world’s largest battery maker, is investing in a nickel project in Indonesia.
-9.1%
The drop in profits reported by Chinese industrial firms in May, driven by weak demand and falling prices.
15.3 trillion JPY
The construction backlog in Japan’s building sector. Labor shortages and stricter overtime rules are delaying new projects worth over $100 billion.
Top Bit: 🔒 DeepSeek Faces Potential EU Ban – And This Could Be Just the Beginning
Berlin’s data protection authorities are urging Apple and Google to remove the Chinese AI app DeepSeek from their stores, alleging that user data is being transferred to China without safeguards.
But observers warn: this decision could trigger a chain reaction far beyond a single app…
Details
🇩🇪 Regulatory Alarm: Data protection chief Meike Kamp has called DeepSeek’s transfer of data to China clearly “illegal.”
📲 Store Pressure: Apple and Google now face a swift decision on whether to remove the app in Germany.
🇪🇺 Domino Effect: A German ban could quickly lead to an EU-wide delisting under unified GDPR rules.
🚫 Precedent: Italy has already blocked DeepSeek; Ireland and Spain are conducting reviews, and the Netherlands has banned its use on government devices.
🔍 Data Risks: Chinese security laws grant authorities broad access to company servers, including exported EU data.
Why it matters
Data Protection & Sovereignty: This case will test whether Europe’s GDPR can be enforced globally or if loopholes will emerge around AI apps.
Market Shifts: An EU ban could block millions of users from accessing the app while strengthening Western AI platforms.
Geo-Tech Tensions: Following TikTok and Huawei, a new fault line could emerge between Brussels and Beijing, with unclear consequences for trade and tech cooperation.
Background
DeepSeek, known for its low-cost large language model, has attracted users worldwide. According to its own privacy policy, chat queries and uploads are stored on servers in China. Since the EU does not recognize China as providing an “adequate level of data protection,” such data transfers are illegal without additional safeguards. Similar concerns led to a ban in Italy in 2024, and other EU countries are considering sanctions. Apple and Google’s decision could therefore become a precedent for all China-linked AI services.
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Head Of The Day
Bom Kim
💄 Former Goldman Analyst who founded clean beauty brand Evereden in 2018 has now raised over $100 million and turned the brand into the No. 1 premium family skincare label in more than 20 countries, including key markets like the US and China.
Lesson learned: With an eye for market gaps and a global mindset, even long-established cosmetics giants can be outpaced.
Market Bit: 👟 Nike Cuts China Production, Eases $1 Billion Tariff Shock
Details
📉 Halving China Share: Currently, 16% of shoes destined for the US come from China; by May 2026, this figure is set to drop to the “high single digits” through shifts to Vietnam, Indonesia & others.
💸 Tariff Burden ≈ $1 Billion: Trump’s 55% import tariffs hit hard – Nike is responding with “surgical” price increases starting this fall and leaner corporate cost structures.
🏃 Running Line Comeback: Investments in Pegasus & Vomero are paying off – the Running division is growing again, marketing budget up 15% YoY; classics like the Air Force 1 are being scaled back.
📊 Better-Than-Feared Numbers: Q4 revenue down 12% to $11.1 billion (consensus: -14.9%), Q1 outlook at “mid-single-digit” decline instead of expected -7.3%; stock jumps 11% after hours.
Why it matters
Supply Chain Shift: Nike is setting the tone for US consumer goods – moving more manufacturing out of China could become a blueprint for other brands facing tariff pressure.
Inflation Impact: Targeted price increases on sportswear will directly affect back-to-school shopping baskets; consumers should brace for higher costs.
Competitive Dynamics: If the running segment turnaround succeeds, Nike can defend market share despite tariff pressures. Rivals like Adidas have announced similar price adjustments.
Top Reads
🇮🇳 India’s First ISS Astronaut Launches: Pilot Shubhanshu Shukla has departed for the International Space Station aboard the private Axiom Mission Ax-4. For two weeks, the team will conduct around 60 experiments. Prime Minister Modi called it the “hopes of 1.4 billion Indians.” Full story.
🇻🇳 Vietnam Abolishes Death Penalty for Corruption: Parliament has eliminated capital punishment for eight crimes, including embezzlement, espionage, attempts to overthrow the government, and medicine counterfeiting. Sentences for those already convicted, such as real estate billionaire Truong My Lan (involved in a $12 billion fraud), will be converted to life imprisonment. Executions will still apply for murder, terrorism, severe child abuse, and drug trafficking. Full story.
🚀 China’s Rocket Start-Ups Gain Momentum: LandSpace and Galactic Energy have launched six satellites into orbit within two days. China plans over 70 launches in 2025, with its commercial space market expected to grow from approximately 2.8 trillion yuan (2025) to 6.6 trillion yuan (2029). Full story.
Optional Reads
China: Liu Shaoyong, who led China Eastern Airlines from 2009 to 2022, is under investigation by the top anti-corruption authority for “serious disciplinary and legal violations.” More on this.
Japan: The success of Chinese video games in Japan is driving a surge in demand for Japanese voice actors. More on this.
Singapore: The city-state reportedly has over 200 upgraded Leopard 2 tanks—making it unmatched globally in tanks per area and capita. More on this.
As if we didn't already have enough traffic jams…
👜 World Record Steamer: Louis Vuitton docks in central Shanghai. Adding to an already crowded cityscape, a 30-meter-long hull made of silver monogram trunks now stands on display. On the cruise café deck, guests can enjoy dim sum and champagne.
Finally, Shanghai has a new spot where you can queue for hours just to take a photo!
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Thomas, Michael & the Team of asiabits.
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Editors: Michael Broza, Thomas Derksen, Raymond Kwok, Eva Trotno, Cindy Zhang
Content responsibility: Thomas Derksen
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