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- ⛽️ Iran Crisis: US Asks China for Help
⛽️ Iran Crisis: US Asks China for Help
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☕️ Good morning comrades,
good news for all fans of real estate and construction: the world’s largest Legoland is opening in Shanghai! Bad news: tickets cost up to $85.
Speaking of building blocks: Houston has a problem. As of now, citizens of Russia, China, Iran, and North Korea are banned from buying property in Texas. We wonder how North Korea’s future homeowners will react – we’ll ask them next time we visit…
🚀 Benchmarks
| Index | Current | 24 h | YTD | 52W High |
|---|---|---|---|---|
| 🇩🇪 DAX | 23,350.55 | +1.27 % | +16.61 % | 24,479.42 |
| 🇺🇸 NASDAQ | 19,447.41 | –0.51 % | +0.86 % | 20,204.58 |
| 🇰🇷 KOSPI | 3,021.84 | +1.48 % | +25.97 % | 3,022.06 |
| 🇯🇵 Nikkei | 38,403.23 | –0.22 % | –2.30 % | 42,426.77 |
| 🇭🇰 Hang Seng | 23,530.48 | +1.26 % | +19.91 % | 24,874.39 |
| 🇨🇳 Shanghai | 3,359.90 | –0.07 % | +2.98 % | 3,674.41 |
🔢 Facts & Figures
6
Magnitude of the June 22 earthquake off the coast of Hokkaido; the hypocenter was just 10 km deep.
3.3 million
Barrels per day produced by Iran’s oil industry in May, according to the OPEC report; 1.84 million bpd were exported, mostly to China.
138 billion USD
Amount China’s central government is injecting in 2025 to keep its “scrappage incentive” program running. Many provincial funds are already depleted.
Top Bit: ⚠️ Hormuz: Washington urges Beijing to rein in Tehran
U.S. Secretary of State Marco Rubio has called on China to stop its top oil supplier, Iran, from closing the Strait of Hormuz — the world’s most critical oil and LNG chokepoint, through which about one-fifth of global supply flows.
Details
🗣️ U.S. Pressure: Rubio calls a blockade “economic suicide” for Iran and warns of a joint naval response.
🛢️ Chokepoint Risk: Around 20 million barrels of crude pass daily through the 34 km-wide strait between Iran and Oman.
📈 Market Reaction: Brent crude jumped past $104 in early Asia trading; analysts warn of $120/barrel if disruption lasts.
💹 China's Leverage: About half of China’s oil imports come from the Gulf — giving Beijing notable influence over Tehran.
Why it matters
Price shock: A sustained disruption could fuel global inflation and pressure central banks to act.
Trade flows: Europe would need to replace supply with pricier U.S. shipments — boosting shale and LNG exporters.
Insurance & Freight: War risk premiums for tankers could surge, further straining global supply chains.
Background
Following U.S. airstrikes on Iranian nuclear facilities, Tehran’s parliament formally threatened to shut Hormuz. A similar threat in 2011 fizzled out after a swift response from the U.S. Fifth Fleet in Bahrain.
Iran is currently exporting about 1.8 million barrels per day — mostly to China. Analysts note that even minor skirmishes in 2019 pushed Brent prices up nearly 10%; with low global inventories and little OPEC spare capacity, the risk of extreme price swings is now significantly higher.
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Head Of The Day
Masayoshi Son
🚀 From software dealer to Vision Fund mastermind: In 1981, he launched SoftBank as a PC software distributor, bet $20 million on Alibaba in 2000, and later turned his company into Asia’s largest tech investor with the $100 billion Vision Fund.
Today, his personal net worth is $33.2 billion (#55 on the Forbes billionaire list). For that, he could treat 385.95 million children to a day at Legoland Shanghai. Sounds like a solid investment, doesn’t it?
Market Bit: 🤖 SoftBank Plans Massive AI Robot Campus in Arizona
Masayoshi Son (second from left) at a meeting with Sam Altman
Details
📰 Trillion-Dollar Ambition: According to Bloomberg, Masayoshi Son plans to build an industrial park for AI-powered robots in Arizona — reported investment volume around $1 trillion.
🤝 Seeking Partners: SoftBank is in talks with TSMC and Samsung; U.S. Secretary of Commerce Howard Lutnick is exploring tax incentives at federal and state levels.
🏭 Shenzhen Model: “Crystal Land” is set to integrate research, chip manufacturing, robotics assembly, and residential space into a single campus.
🚀 Vision Portfolio: SoftBank aims to involve Vision Fund startups like Agile Robots as anchor tenants and build on previous mega-projects (e.g., OpenAI “Stargate”).
🔋 Tariff Shield: Local production avoids Trump’s 50% steel and tech tariffs and strengthens U.S. supply chains against China dependency.
Why it matters
Reshoring high tech: A “Shenzhen in Arizona” could bring the most advanced chip and robotics manufacturing to the U.S. – geopolitically and industrially significant.
Capital signal: A trillion-dollar investment would be Son’s biggest single bet on AI hardware and mark SoftBank’s comeback.
Cluster effects: Such a hub would attract suppliers, create new jobs, and consolidate U.S. capabilities in AI servers, e-mobility, and automation.
Further reading: Handelsblatt, Financial Times
Top Reads
🇸🇬 Singapore’s Prime Minister Lawrence Wong visits China: On his first trip as head of government, he meets Xi Jinping and Li Qiang and advocates for open markets at the “Summer Davos” in Tianjin. The visit offers Beijing a chance to present itself to ASEAN partners as a reliable counterbalance to looming U.S. tariffs. More on this.
🇰🇷 Trade Minister Yeo Han-koo seeks an audience in Washington: From June 22 to 27, he is negotiating with the U.S. Trade Representative for a way out of Trump’s proposed 10% global tariff plus a 25% surtax. A deal is expected by July 8. If it falls through, South Korea’s economy could face severe turbulence. More on this.
🚗 Ex-VW designer decodes China’s turbo recipe: Using Changan as an example, the designer shows how speed, software focus, and radical customer orientation are making European automakers look outdated. More on this.
Optional Reads
China: EHang equips air taxi with more powerful Gotion batteries for extended range. More on this.
North Korea: Lets tourists marvel at Chinese prosperity during Yalu River excursions. More on this.
Hong Kong: Launches real-time payment system “Payment Connect” for cross-border mobile transfers with mainland China. More on this.
🎤 BTS returns: After 18 months of mandatory service, all seven members have finally completed their duty in the South Korean military. The BTS ARMY responds with chants and tears.
The big question: Can they bring back the lost energy to K-pop and revive a stagnating industry? We’ll be watching!
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See you tomorrow,
Thomas, Michael & the Team of asiabits.
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Editors: Michael Broza, Thomas Derksen, William Hu, Eva Trotno, Cindy Zhang
Content responsibility: Thomas Derksen
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