Unstable Hydrogen Supply and Soaring Electricity Costs
ArcelorMittal Concludes: “The Project Is Not Viable”
A Warning Light for the Global Green Steel Boom

In the global race to decarbonize the heavy industries that power modern life, hydrogen steelmaking emerged as a symbol of hope, a high-stakes technological leap that promised to slash emissions from one of the world’s dirtiest industrial processes. Europe, with its ambitious climate goals and generous public subsidies, was well-positioned to lead this transformation. But that vision is now facing a harsh industrial reality. ArcelorMittal, the world’s second-largest steelmaker, has made the stunning decision to cancel its hydrogen steelmaking project in Germany, citing overwhelming energy costs, a lack of supporting infrastructure, and mounting questions over long-term profitability. The move not only shakes Germany’s green transition agenda, but it also signals deeper structural fissures in Europe’s decarbonization drive.

Green Steel Falters: Subsidies No Match for Industrial Realities

On June 23, Nihon Keizai Shimbun (Nikkei) reported that ArcelorMittal had formally withdrawn from its plan to establish hydrogen reduction steelmaking facilities in Germany, despite being offered €1.3 billion (approximately 2 trillion KRW) in government subsidies. The project was designed to replace coal with hydrogen in the iron reduction process, a next-generation method aimed at dramatically cutting CO₂ emissions.

The company’s plan was ambitious. It aimed to transform existing blast furnaces in Bremen (northern Germany) and Eisenhüttenstadt (eastern Germany) into hydrogen-based facilities by 2030. A final investment decision was initially due by the end of June 2025. ArcelorMittal had also committed more than USD 1.14 billion to installing hydrogen-based plants and electric arc furnaces (EAFs), which melt scrap using electricity instead of fossil fuels. The overarching goal was to reduce carbon emissions by more than 40% within this decade through the step-by-step commercialization of carbon-neutral technology.

However, financial headwinds grew stronger. The company’s operating profit, which stood at a robust USD 16.6 billion in 2021, plummeted to just USD 2.2 billion in 2023. With capital-intensive investments requiring long-term policy stability and predictable market conditions, ArcelorMittal found itself unable to justify the project's financial risk. The steelmaker also announced it would suspend investments in carbon capture and utilization (CCU) technologies, which were intended to trap and store emissions produced during steelmaking.

Beyond profits, the core issue was energy. Germany’s persistently high electricity costs, among the highest in the industrialized world, made the economics of operating hydrogen-based facilities untenable. ArcelorMittal highlighted the slow pace of Germany’s green infrastructure rollout, citing a lack of affordable, large-scale green hydrogen supply. “Due to delays in decarbonization policy, green hydrogen is not a viable fuel because of a lack of infrastructure to supply it in stable quantities and prices,” the company said in a statement. ArcelorMittal also cited weakened steel demand due to an influx of low-cost imports, particularly from China, and policy uncertainty as critical factors in its decision.

Significantly, the company hinted it would redirect its clean steel investments to other countries with more stable and competitive energy markets, specifically naming France, whose nuclear-based energy policy provides lower, more predictable electricity rates.

Profit Pressures Ripple Through the Global Steel Industry

ArcelorMittal’s decision has rattled the steelmaking industry across Europe and beyond. Its retreat is not an isolated incident, but rather a warning shot highlighting the structural limitations of hydrogen steelmaking in its current form. Germany’s federal government had committed USD 8 billion in subsidies to support domestic steelmakers’ hydrogen transition efforts. Key beneficiaries included industry giants such as Thyssenkrupp, Salzgitter, and Saarstahl.

Thyssenkrupp, for instance, received USD 2.3 billion to build a new hydrogen-enabled facility in Duisburg, in western Germany. However, the company recently announced it would delay the plant’s operational start from 2026 to 2027. In an interview with German news agency DPA, Thyssenkrupp said that access to affordable hydrogen remained insufficient and warned that “the profitability of the current plan is reaching its limit.”

The caution extends beyond German borders. Swedish steelmaker SSAB, one of the first in the world to deploy the HYBRIT hydrogen reduction process, had intended to begin commercial production of low-carbon steel at its Swedish plant by 2026. But in a surprise move, SSAB recently scrapped its low-carbon steel plant project and withdrew from negotiations with the U.S. Department of Energy for project support. While the company has not publicly detailed the reasons for its withdrawal, reports suggest that a volatile green hydrogen market and high electricity costs were decisive factors.

These setbacks suggest that even flagship green steel projects, backed by billions of dollars in public and private capital, remain vulnerable to market volatility, policy delays, and high operating costs. They also reflect the growing consensus that without reliable, cost-effective energy infrastructure, hydrogen-based decarbonization remains a distant goal for much of the global steel sector.

Hyundai Steel Eyes Louisiana: Chasing Competitive Energy Abroad

The burden of electricity costs is not unique to European firms. South Korea’s Hyundai Steel is making its own strategic pivot, one that underscores just how central energy pricing has become in global steelmaking. The company has decided to construct a steel plant with an annual production capacity of 2.7 million tons in the U.S. state of Louisiana. The move is not just about expanding overseas; it is a calculated response to South Korea’s soaring industrial electricity prices.

Hyundai Steel operates 11 electric arc furnaces, which are notorious energy guzzlers. In 2023 alone, the company spent a staggering USD 730 million on electricity. By contrast, electricity rates in Louisiana are remarkably low. While the average industrial electricity rate in South Korea is approximately USD 132 per megawatt-hour (MWh), Louisiana offers electricity at a rate of just USD 56 per MWh. The U.S. national average sits at USD 85. That means Hyundai will pay less than half what it would in Korea.

Louisiana’s cheap electricity is largely thanks to its abundant and inexpensive natural gas reserves, which account for 73.5% of the state’s power generation. An additional 17.1% comes from nuclear energy, further ensuring supply stability. This energy profile makes Louisiana a magnet for energy-intensive industries. It ranks 4th among U.S. states in total energy consumption and 2nd in per capita usage. Lotte Chemical, another major Korean firm, recognized this early. In 2019, it invested USD 3.1 billion to build one of the world’s largest petrochemical complexes in the state.

Louisiana’s appeal lies not just in affordability but in the reliability of its energy mix. For steelmakers like Hyundai, whose margins are squeezed by global price competition, this can be the difference between success and stagnation. By relocating production to regions with competitive electricity prices and stable energy policy, firms are not just reducing costs, they’re securing the future of their industrial operations.

Masayoshi Son’s High-Stakes Gamble: Reshaping U.S. Manufacturing with 'Dark Factories'
Plans to Build Semiconductor Production Base in Partnership with TSMC
Success Hinges on Securing Strategic Partners and Funding

In a bold and unprecedented move, Masayoshi Son, the founder and chairman of Japan’s SoftBank Group, is setting his sights on transforming the American manufacturing landscape. Son’s latest endeavor, the Crystal Land Project, is an ambitious plan to develop a USD 1 trillion AI and robotics industrial complex in Arizona. This proposed mega-zone not only dwarfs SoftBank’s previous technological ventures but also signals a high-stakes gamble by Son to reimagine the future of industry.

At the core of this initiative lies a sweeping vision: to move beyond merely building smart factories and instead create a fully automated manufacturing ecosystem powered by artificial intelligence. This vision aligns with Son’s broader strategy to secure SoftBank’s position amid intensifying global competition, particularly between the U.S. and China, and to adapt to the shifting political landscape in America. However, as monumental as the plan is in scope, its success hinges on one critical factor, financing.

From Dark Factories to Humanoid Robots: A New Industrial Blueprint

The Crystal Land Project goes far beyond the conventional notion of a manufacturing hub. Inspired by the massive tech-centric industrial cities like China’s Shenzhen, Son envisions building an integrated AI-powered production ecosystem in the United States. At its heart will be a new generation of factories, “dark factories,” named for their complete lack of lighting due to the absence of human workers.

These fully unmanned facilities will operate around the clock, driven entirely by artificial intelligence that can predict demand and design production lines accordingly. Rather than requiring human oversight, the facilities will use advanced humanoid robots, equipped with vision and decision-making capabilities. According to Nikkei, the core AI chips powering these operations will be sourced from NVIDIA, while robotic technology will be supplied by Agile Robotics, a German company specializing in humanoid automation, and notably backed by SoftBank’s Vision Fund.

SoftBank is also exploring the revival of partnerships with Foxconn (Hon Hai Precision Industry), the Taiwanese manufacturing giant that previously handled production for SoftBank’s humanoid robot, Pepper. Foxconn’s proven track record in scalable manufacturing makes it a strategic candidate for realizing Son’s AI-driven production model. The broader vision is to minimize human intervention across the production of diverse goods, from smartphones and automobiles to home appliances, such as air conditioners, by embedding AI at every step of the assembly process.

This radical rethinking of manufacturing responds directly to labor shortages and rising wage pressures worldwide. With dark factories and intelligent robots at its core, Crystal Land is meant to demonstrate how AI can optimize and future-proof manufacturing systems on a national and global scale.

Strategic Partnerships and Diplomatic Leverage in a Shifting Geopolitical Landscape

Realizing such a colossal project demands more than technology, it requires robust geopolitical and industrial alliances. To that end, Masayoshi Son is proactively seeking collaboration with leading global technology firms, including Taiwan Semiconductor Manufacturing Company (TSMC), which currently produces NVIDIA’s state-of-the-art AI chips. While details remain unclear, Son is reportedly pushing for a strategic partnership that could make use of TSMC’s existing footprint in Arizona, where the chipmaker has already invested over USD 165 billion and launched mass production at its first U.S. plant.

Son has also approached Samsung Electronics and other major players in the semiconductor and robotics industries, gauging their interest in joining this AI industrial renaissance. There is speculation that companies from the SoftBank Vision Fund portfolio, many of which are on the cutting edge of AI and automation, may also be invited to join the project, further strengthening its technological depth and international reach.

Simultaneously, SoftBank has opened discussions with both federal and state officials in the U.S., seeking government support in the form of tax incentives, infrastructure aid, and policy backing. Bloomberg reports that SoftBank has already held talks with U.S. Secretary of Commerce Howard Lutnick, signaling high-level engagement with Washington.

These diplomatic overtures are not just economic, they are strategic. In the face of former President Trump’s protectionist trade policies, which have pressured global firms to commit to “Made in America” production, SoftBank’s Crystal Land Project serves multiple functions: It provides a U.S.-based manufacturing option for international firms, allows Japanese and Asian companies to sidestep trade penalties, and positions Japan as a technological ally in revitalizing American industry. By offering a cutting-edge, AI-powered manufacturing solution on American soil, SoftBank aims to transform potential regulatory pressure into a mutual opportunity.

A USD 1 Trillion Gamble: Financial Realities and Middle Eastern Lifelines

At a staggering USD 1 trillion, the Crystal Land Project is twice the scale of SoftBank’s USD 500 billion Stargate Project, which focuses on building AI data center infrastructure in the U.S. in partnership with OpenAI, Oracle, and MGX. But while Stargate lays the groundwork, Crystal Land is about execution. bringing AI to life in real-world production environments.

The magnitude of this financial commitment, however, casts a long shadow. Despite holding USD 25 billion in cash, SoftBank’s debt load has ballooned to USD 126 billion, leaving little room for error. Moreover, with up to USD 30 billion slated for investment in OpenAI this year alone, Son’s dual-project strategy is expected to strain SoftBank’s liquidity like never before. Financing these initiatives simultaneously would require massive asset sales, aggressive fundraising, or new borrowing mechanisms.

To navigate this challenge, SoftBank is courting capital from the Middle East, a region rapidly emerging as a global financial powerhouse in tech investment. Industry insiders point to Abu Dhabi-based MGX and Saudi Arabia’s Public Investment Fund (PIF) as promising backers. Both have the financial muscle and strategic interest in AI, enabling them to play pivotal roles.

Their interest isn’t speculative. During President Trump’s recent diplomatic visit to the Middle East, UAE President Mohammed bin Zayed Al Nahyan announced plans to invest USD 1.4 trillion in the U.S. over the next decade, targeting key sectors such as technology, AI, and energy. Meanwhile, Saudi Arabia has launched HUMAIN, a new national AI company aimed at securing its position across the entire AI value chain. With clear ambitions to become a central hub in the global AI ecosystem, both countries could see Crystal Land as a natural extension of their long-term strategies.

SoftBank’s efforts to align with Middle Eastern sovereign wealth could be the key to unlocking the immense capital needed to bring Crystal Land to life. If successful, it would represent not only the birth of a revolutionary industrial complex but also the convergence of Asian innovation, Middle Eastern capital, and American geopolitical opportunity.

U.S. Notifies Plan to Tighten Semiconductor Regulations
Industry on Alert Over Possible Abolition of ‘VEU’ Program
Experts Predict Limited Impact on Korean Firms

South Korea’s semiconductor powerhouses, Samsung Electronics and SK Hynix, are bracing for possible disruption as the Trump administration signals the rollback of a critical export exemption that has underpinned their operations in China. At the heart of this development is the potential termination of the Verified End-User (VEU) designation. This special U.S. trade mechanism has allowed designated foreign companies to import American semiconductor equipment into China without undergoing lengthy case-by-case licensing procedures.

If the VEU policy is rescinded, it could complicate the operations of Korean chipmakers in China, disrupt upgrade cycles for advanced manufacturing equipment, and introduce greater uncertainty into global semiconductor supply chains. Yet, despite the rising tension, many industry experts believe that South Korea’s chipmakers have long seen this moment coming—and that their proactive realignment strategies may cushion the blow.

Trump’s Policy Reversal: Washington Reaches Out to Samsung, SK, and TSMC

According to reports from the semiconductor industry on June 23, Jeffrey Kessler, U.S. Assistant Secretary of Commerce for Industry and Security, formally notified Samsung Electronics, SK Hynix, and Taiwan’s TSMC that the U.S. government may soon impose new restrictions on the export of U.S.-origin semiconductor equipment to their facilities in China. In practice, this amounts to the withdrawal of the VEU designation, a move that would force these companies to navigate standard, more time-consuming licensing protocols.

The VEU program has played a vital role in helping allied companies operate efficiently in China. It granted broad, pre-approved permission to import sensitive equipment without additional scrutiny. Samsung and SK Hynix, two of South Korea’s flagship technology firms, have leveraged this status to maintain and expand their high-tech fabrication facilities in China, including NAND flash and DRAM production.

Samsung operates NAND flash plants in Xi’an and backend processing facilities in Suzhou, while SK Hynix runs DRAM manufacturing in Wuxi, packaging in Chongqing, and a NAND fab in Dalian. These facilities are particularly dependent on advanced U.S. equipment. Notably, the Wuxi plant is responsible for roughly 40–50% of global DRAM production, underlining the high stakes involved.

The policy shift comes amid a broader U.S. strategy to curb China’s rise in advanced manufacturing. This is not a new trend. In October 2022, the Biden administration imposed sweeping restrictions on the export of advanced semiconductor tools and related technologies to China, while granting a one-year waiver to Samsung and SK Hynix. In 2023, the companies were given indefinite VEU status, a move seen as a diplomatic acknowledgment of their strategic importance within the U.S.-Korea tech alliance.

However, if the Trump administration abolishes the VEU mechanism entirely, it would mark a new phase in the tech decoupling process—one that injects procedural delays and operational risks into the previously stable flow of equipment and technology. It would also affect U.S. equipment makers such as Applied Materials, Lam Research, and KLA, whose tools would face heightened restrictions, even when destined for non-Chinese firms with factories in China.

This tightening of policy also aligns with the recent high-level U.S.-China trade talks in London and Geneva, and with shifting rhetoric from U.S. officials. At the Asia Security Dialogue, U.S. Defense Secretary Pete Hegseth called for a reassessment of the long-standing approach of "安美經中"—a doctrine that prioritized security with the U.S. and economic engagement with China. Hegseth emphasized the need for a unified approach where economic decisions reflect national security imperatives.

Korean Firms Adjust Course: China Exposure Tapers as Production Rebalances

Despite the policy turbulence, many Korean industry insiders are cautiously optimistic. The dominant narrative in the sector suggests that while the U.S. restrictions could create short-term inconvenience, the long-term damage may be limited. That’s largely because Korean chipmakers, aware of the shifting geopolitical currents, have been actively preparing for this scenario under the broader U.S. “de-risking” policy.

This policy, which emerged under Biden and is now being continued or expanded under Trump, seeks to eliminate strategic dependencies on China, particularly in sensitive technology areas. With the writing on the wall, companies like SK Hynix and Samsung have had time to rethink their global production strategies.

According to Omdia, a global market research firm, SK Hynix plans to increase production in its domestic facilities, especially at its M14 and M16 fabs in Icheon, South Korea. While the company had originally intended to increase quarterly DRAM wafer output at its Wuxi plant from 480,000 to 520,000 wafers, rising demand is now expected to be addressed via domestic capacity expansion. This strategic pivot is likely to lower Wuxi’s share of SK Hynix’s total DRAM output, currently at around 40%.

Samsung Electronics has made similar adjustments. It has significantly scaled down planned production at its Xi’an NAND flash plant, which was previously expected to reach 600,000 wafers per quarter. In parallel, Samsung Display announced a USD 1.75 billion investment in a new OLED factory in Vietnam, and speculation is growing that Samsung’s semiconductor division (DS) may soon follow suit.

Supporting this regional shift, Samsung’s suppliers are also investing abroad. Notably, Korean packaging firm Signetics is investing USD 100 million to build a plant in Ba Thien Industrial Complex, located in Vinh Phuc Province, Vietnam. This signifies a growing industry consensus that future growth lies outside of China.

Cautious Optimism: Risks Remain, but the Industry Is Not Unprepared

Despite this proactive repositioning, analysts warn that the potential abolition of the VEU regime could still create friction, especially in the form of procedural delays and bureaucratic slowdowns. Kim Yang-paeng, a senior researcher at the Korea Institute for Industrial Economics & Trade, noted that while firms have had time to adjust their production and investment strategies, a shift to case-by-case export licensing could introduce new inefficiencies.

“Because companies already underwent waiver periods, they likely adjusted their investment and advanced production strategies in China accordingly,” Kim said. “So this latest move may not cause a major shock immediately.” However, he cautioned that “if the system shifts to a permit-based model, administrative delays could disrupt operations.”

Kim also hinted at a broader strategic motive behind Washington’s actions, suggesting the possibility that this policy shift may be a prelude to more formal trade sanctions, such as tariffs. “It may be more about testing responses ahead of official moves,” he said, stressing the importance of watching how the situation unfolds in the coming months.

As the global semiconductor landscape continues to evolve in response to intensifying U.S.-China tech rivalry, South Korean firms find themselves at a pivotal crossroads—caught between maintaining access to the Chinese market and aligning with the United States’ tightening grip on critical technology flows. While the road ahead is uncertain, what’s clear is that Korean chipmakers are not standing still.

Generative AI Triggers a Flood of Unqualified Resumes
Employers Turn to AI Tools to Screen Applicants
“In the End, It Will Come Down to Real Skills and Authenticity”

The job market is facing growing disruption as resumes generated using generative artificial intelligence (AI) flood in. With the advancement of AI making resume writing significantly easier, some job seekers are engaging in indiscriminate "spray-and-pray" applications to numerous companies. As a result, industry experts point out that the surge of AI-generated applications is increasing the workload for recruiters, causing both employers and job seekers to lose trust and efficiency in the hiring process.

“11,000 Resumes per Minute” on LinkedIn

On the 22nd (local time), The New York Times (NYT) reported that a growing number of job seekers are using generative AI tools like ChatGPT to submit mass-produced, generic resumes—making it increasingly difficult for recruiters to sift through applications. According to the NYT, Katie Tanner, a human resources consultant based in Utah, recently posted a remote tech job opening on LinkedIn and was immediately overwhelmed by the response. Within a single day, 600 people had applied, and the number exceeded 1,200 just a few days later. The posting was ultimately taken down early. Tanner described the situation as “insane,” saying, “We were flooded with applications—it was unmanageable.”

LinkedIn has revealed that, over the past year, the number of job applications submitted on the platform has surged by more than 45%, with an average of 11,000 applications submitted every minute. Behind this explosive growth lies the automation capability of tools like ChatGPT. Users can now generate resumes that include all the keywords from a job listing in mere seconds. Some job seekers even outsource the process entirely by paying for AI agents to apply for jobs automatically on their behalf. Industry expert Hong Li expressed concern, warning, “The applicant tsunami is only going to intensify.”

It Takes an Average of 9.24 Days Just to Filter Out Unqualified Resumes

The situation is not unique to the U.S. A global HR platform called Remote conducted a survey of corporate leaders and hiring decision-makers across 10 countries—South Korea, Japan, Australia, the U.S., the U.K., Germany, France, the Netherlands, Sweden, and Spain. The results showed that a flood of AI-generated resumes is also being experienced in these countries. On average, companies spend 9.24 days just filtering out unqualified resumes.

In the same survey, companies reported increasing difficulties in recruiting efficiently due to:

- A surge in applicant volume

- A persistent shortage of local talent

- A rapidly evolving labor market

As the number of AI-generated applications continues to grow, businesses are forced to spend more time reviewing resumes, making it even harder to identify truly qualified candidates. Approximately 65% of respondents reported that the number of unqualified applicants has increased significantly, and 74% considered this a serious issue.

Recruitment Methods Evolve Amid Resume Flood

As AI-generated resumes inundate recruiters, new solutions are rapidly emerging to detect text written by generative AI. Muhayu, the company behind the plagiarism detection tool Copykiller, is offering a service specifically tailored to generative AI called "GPT Killer" for corporate use. In the U.S., services like Turnitin have also been developed to tackle the same issue.

Job Van Der Voort, CEO of the global HR platform Remote, noted, “Companies are increasingly adopting new AI solutions to screen large volumes of applications efficiently and to identify the most suitable candidates. The use of AI in skill assessments and administrative support is also growing rapidly.”

These detection tools typically work by identifying differences between human-generated and AI-generated writing based on commonly used vocabulary and sentence structures. According to Muhayu’s analysis of 890,000 self-introduction letters submitted to financial institutions and public agencies using its solution last year, 48.5% were suspected to have been written with the help of generative AI.

As trust in resumes declines, recruitment methods are evolving in response. In addition to AI detection tools, companies are supplementing task-based assessments with skills verification to ensure applicants possess the actual skills required. Some employers even go as far as to question candidates on every keyword they include in their applications to assess authenticity through their responses.

An HR industry source commented, “Even in the age of AI, hiring is ultimately a human process—people evaluating people. Whether your resume was written by AI or your interview answers sound polished, if you can’t show your true self, your application will end up being nothing more than a shiny but empty shell.”

Career coach Jeremy Schifeling added, “The more desperate job seekers become, the more they turn to paid AI tools. This trend will likely continue for a while, but in the end, both employers and applicants will return to valuing authenticity and real competence.” He warned, however, “Until then, we’re likely stuck in a vicious cycle of wasted time, resources, and money.”

“Japan’s Real Estate Market Attracted USD 11.2 Billion in the First Quarter Alone”
“Market Recovery, Weak Yen, and Stable Investment Conditions Attract Investors”
“China, Unable to Shake Its Property Slump, Left Out in the Cold”

Global investors targeting Asian real estate are shifting their focus away from China and redirecting funds toward Japan. With China’s property slump dragging on, signs of a real estate boom in Japan have triggered a significant shift in investment flows. The focus is particularly on Hong Kong investors—once heavily involved in mainland Chinese real estate—who are now showing clear signs of “changing their allegiance.”

Global Investors Eye Japan’s Real Estate Market

On the 22nd (local time), the South China Morning Post (SCMP) in Hong Kong reported, citing data from global real estate consultancy Colliers, that global investors poured a total of USD 11.2 billion into Japanese real estate in the first quarter of this year. This figure is 6% higher than the five-year average, making Japan the fifth-largest real estate investment destination globally.

According to Colliers, the countries that invested the most capital into the Japanese real estate market were the United States, Singapore, and Hong Kong. Mainland Chinese investors also invested USD 1 billion in Japanese real estate during the same period, more than double the five-year average of USD 428 million.

Experts are particularly focused on the movements of Hong Kong investors. Masahiro Tanikawa, Head of Investment Services at Colliers Japan, analyzed, “Hong Kong investors have traditionally focused on mainland Chinese real estate, but the collapse of China's property market has redirected capital flows toward more stable markets such as Japan and Australia.” He added, “Both Japan and Australia offer deep and liquid multifamily investment markets, which are among the largest in the Asia-Pacific region.”

Slump in China’s Real Estate Market

As noted by Masahiro Tanikawa, China’s real estate market has been mired in a prolonged slump for several years. Since the end of 2020, stringent regulations on property developers—combined with a continuing economic slowdown following the COVID-19 pandemic—have caused the broader market to freeze.

Office vacancy rates in China’s major cities are expected to exceed 20% this year, and office rents are projected to fall by approximately 10% year-on-year. At the beginning of this year, the number of new housing starts in China dropped by around 30% compared to the previous year, while new home prices have declined for 21 consecutive months.

Key indicators reflecting housing supply and demand have also weakened in tandem. According to April economic statistics released by China’s National Bureau of Statistics, real estate development investment from January to April amounted to USD 386 billion, a 10.3% decrease from the same period last year. During the same timeframe, the total sales of newly launched apartments stood at USD 376 billion, down 3.2% year-on-year, with the rate of decline increasing 2.1 percentage points from Q1.

Given the bleak outlook for China’s real estate recovery in the near term, global investors are increasingly pulling out of the local market. U.S.-based BlackRock, the world’s largest asset management company, reportedly sold an office building in China late last year at a loss of over 40%, and in March this year, it sold its final real estate holding in the country, the Trinity Place office tower in Shanghai, completing its exit from the Chinese property market.

Similarly, in January, the Canada Pension Plan Investment Board (CPPIB) sold its 49% stake in four shopping malls located in Shanghai, Suzhou, Chengdu, and Chongqing to China’s Dajia Insurance Group. Meanwhile, Hong Kong’s Parkview Group, a real estate developer, has put its mixed-use shopping complex Fangcaodi, located in central Beijing, up for sale.

Japanese Real Estate Awakens

In contrast, Japan’s property market, long dormant since the burst of its economic bubble, has recently shown noticeable signs of recovery. According to Japan’s Ministry of Land, Infrastructure, Transport and Tourism, as of January 1 this year, the country’s official land prices rose by an average of 2.7% nationwide compared to a year earlier, marking the fourth consecutive year of increases. These land prices are based on the assessed values of 26,000 standard sites nationwide.

Buoyed by recovering property values, transaction demand is also rebounding rapidly. According to Nikkei Asia, real estate transaction volume in Japan is expected to reach approximately USD 3.6 billion this year, the highest in a decade. One of the main drivers of this growth is the large-scale asset sales by Japanese corporations. Pressured by shareholder activism and demands for greater asset efficiency, major Japanese companies are offloading key real estate holdings.

For instance, Seibu Holdings, the parent company of Seibu Railway, plans to sell the Tokyo Garden Terrace Kioicho for approximately USD 2.73 billion to the Blackstone Group. Likewise, Sapporo Holdings, the parent company of the beverage giant Sapporo Breweries, is in the process of selecting a partner to manage assets valued at around USD 2.73 billion. The influx of high-quality assets onto the market is naturally driving up investor demand.

Japan’s low vacancy rates and stable rental income structure are also key advantages. The country’s tenant protection laws and culture of long-term leasing ensure steady cash flows, making it an attractive environment for long-term investors. Compared to neighboring markets like South Korea and China, Japan’s real estate market also offers lower volatility, adding to its appeal. For investors seeking to build a global portfolio, investing in Japanese real estate provides a means to diversify geopolitical risks while pursuing both stability and growth potential.

Netanyahu: “Thanks to Trump for Striking Iran’s Nuclear Facilities”
U.S. Pressures Iran — Tightening the Noose on China as Well
Was the 'Rockbridge Network' Behind the Decision to Launch the Airstrikes?

Israeli Prime Minister Benjamin Netanyahu expressed gratitude to U.S. President Donald Trump for his decision to strike three Iranian nuclear facilities. Following the successful completion of the operation — carried out through close coordination between the two countries — Netanyahu credited the United States, which had played a key “partner” role in the mission.

However, experts caution that Israel’s national interests did not solely drive President Trump’s actions. On the contrary, some analysts argue that Trump may have leveraged Israel to tighten pressure on China, suggesting a broader strategic motive behind the operation.

U.S.–Israel Joint Strike

According to Reuters and other foreign media on the 21st (local time), Israeli Prime Minister Benjamin Netanyahu expressed his appreciation for U.S. President Donald Trump’s decision to strike three Iranian nuclear facilities. In a speech that day, Netanyahu stated, “History will remember President Trump as the one who acted to stop the most dangerous regime and the most dangerous weapons in the world.” He added, “At a time when the Middle East stood at a crossroads, President Trump’s leadership created a historic turning point, guiding the region and beyond toward a future of prosperity and peace.” Concluding his remarks, Netanyahu offered direct thanks: “The people of Israel and I are grateful to you.”

Earlier, President Trump had posted on his social media platform, Truth Social, declaring, “We have completed highly successful strikes on three of Iran’s nuclear facilities: Fordow, Natanz, and Isfahan.” In reality, a squadron of U.S. Air Force aircraft entered Iranian airspace in the south on the 21st, deploying 14 GBU-57 bunker-buster bombs, along with 75 precision-guided missiles, using B-2 stealth bombers to target the three sites. Notably, no Iranian fighter jets or surface-to-air missiles were launched in response.

According to U.S. media outlet Axios, the two countries had been in close consultation over the operation since the previous week. President Trump approved the strike on the 17th and began in-depth discussions with Prime Minister Netanyahu. When Netanyahu reportedly asked, “How can we assist the operation?” Trump requested the dismantling of Iran’s southern air defense systems, clearing a path for bombers to reach their targets at Fordow, Natanz, and Isfahan. In the following days, U.S. Vice President J.D. Vance and Secretary of Defense Pete Hegseth remained in contact with Netanyahu and Israeli Defense Minister Israel Katz, coordinating a series of preliminary airstrikes aimed at weakening Iran’s anti-air defenses.

China Shaken by the Fallout of the Conflict

Experts believe that President Trump’s cooperative posture toward Israel masked a deeper strategic maneuver targeting China. One diplomatic analyst explained, “On the surface, it appears Trump acted according to Netanyahu’s will — but in reality, it’s more complex. By enabling Israel to undermine Iran’s national power, the U.S. indirectly delivers a blow to China, which maintains close ties with Tehran.”

If the conflict between Israel and Iran escalates, China’s energy supply chain could face severe disruption. According to energy research firm Kpler, over 90% of Iran's crude oil exports currently go to China, with most of it being delivered to small, private refineries in Shandong Province. These independent refiners, operating outside the state-owned oil sector, have actively purchased Iranian oil since 2022, despite it being subject to Western sanctions. They rely on the relatively cheap crude to maintain profitability.

However, if the Strait of Hormuz is blocked or if Israel attacks Iran’s oil export infrastructure, this distribution network could be severely threatened, possibly bringing Iranian crude exports to a halt. As a result, Chinese refiners would suffer major aftershocks, with cascading impacts across the country’s energy market.

The economic losses from war would also be significant. China and Iran previously signed a 25-year comprehensive cooperation agreement, which includes major investments in energy and infrastructure to support Iran’s economic development. Chinese capital has been heavily involved in Iran’s oil and gas development projects, and a large-scale destruction of energy infrastructure could mean that much of China’s investment is wiped out.

Should Iran suffer severe damage in the war, its military cooperation with China is also likely to weaken. If the U.S. and its allies impose comprehensive sanctions on Chinese companies involved with Iran, it could cripple China’s military investments and arms trade with Tehran. If China continues to support Iran actively, it would face heightened economic sanctions and military pressure from the West. This could, in turn, undermine the anti-American alliance between the two and narrow China’s diplomatic maneuvering space on the global stage.

Is the U.S. Political Powerhouse 'Rockbridge' Involved in the War?

Some speculate that behind the U.S. government’s favorable stance toward Israel lies the influence of Jewish capital, suggesting involvement by powerful interests within Washington. A key focus of this theory is the Rockbridge Network, said to be backed by Jewish funding and wielding considerable sway over the American political establishment.

Rockbridge is a political fundraising organization founded in 2019 by Vice President J.D. Vance and conservative columnist Christopher Buskirk. The group was created to build a new conservative political foundation, replacing what they viewed as a waning traditional Republican Party. Membership requires a USD 25,000 fee, while lifetime membership costs USD 1 million. Rockbridge reportedly spends up to USD 75 million annually on various political activities, including candidate support, shaping public opinion, and voter mobilization.

Rockbridge rose to prominence during last year’s U.S. presidential election. In April, Trump’s campaign found itself cornered in the Republican primaries as its funds dried up. Traditional Republican donors, such as the Koch Network, had shifted their support to Florida Governor Ron DeSantis and former U.N. Ambassador Nikki Haley. That’s when Rockbridge stepped in, injecting massive campaign funds into the Trump camp and recommending Vance as Trump’s vice-presidential running mate. It was Donald Trump Jr., a Rockbridge member, who acted as the bridge between the network and his father.

Rockbridge’s ability to exert such extensive political influence stems from its high-profile membership. Among the most prominent figures is Peter Thiel, current chairman of Palantir and long-time supporter and mentor to Vice President Vance. Thiel is widely regarded as one of the key power brokers behind Rockbridge. In January 2024, Palantir signed a formal strategic partnership with Israel’s Ministry of Defense, playing a central role in the Gaza conflict by supplying AI and data analytics platforms that supported intelligence operations of both the Israeli Ministry of Defense and the IDF (Israel Defense Forces).

Global biotech licensing deals: from 0% to 30%
China surpasses the U.S. in number of oncology clinical trials
U.S. responds with accelerated new drug approvals within a month

With regulatory easing and shorter review times as its main weapons, China is aggressively targeting the global biotech market. Its strategy goes beyond merely catching up with the United States—it aims to seize dominance through institutional innovation. Industry experts predict that this bold move by China could have a significant impact on the global new drug development ecosystem. Some even forecast that, much like the global artificial intelligence (AI) industry, the biotechnology sector may also become bifurcated between the U.S. and China.

China Adopts FDA-Style Reforms, Cuts Clinical Trial Review to 30 Days

As of June 20, according to the biotech industry, China’s National Medical Products Administration (NMPA) announced on June 16 a plan to shorten the waiting period for new drug clinical trial reviews from the current 60 days to 30 days. The change applies to key pharmaceuticals with clear clinical value backed by government support, including cancer and rare disease treatments under two projects overseen by the NMPA’s Center for Drug Evaluation (CDE). The NMPA will collect public opinions until July 16 before formally implementing the policy.

This move is interpreted as an effort to accelerate clinical trials by adopting a review model similar to that of the U.S. Food and Drug Administration (FDA). According to biotech journal Fierce Biotech, China, like the FDA, uses an "indented review" system—where clinical trials automatically proceed unless objections are raised by regulators within a set timeframe. With the new rule, China’s clinical review period will now align with that of the FDA.

According to Grand View Research, China’s bio market is expected to grow from USD 74.53 billion in 2023 to USD 265.2 billion by 2030. In fact, China’s share of new drug technology exports to global pharmaceutical firms has risen from 0% a decade ago to 30% last year. China has already surpassed the U.S. and Europe in the scale of anticancer drug development. The global pharmaceutical industry expects China’s deregulation of clinical trials to positively influence future investments and licensing deals with big pharma.

It has been less than a decade since China began aligning its new drug development regulations with international standards. Multinational clinical trials were only permitted starting in 2015, and China joined the International Council for Harmonisation of Technical Requirements for Pharmaceuticals for Human Use (ICH) in 2017. The clinical trial review period, once lasting six months to a year, was cut to 60 days in 2018. With this latest policy, review periods for important new drugs are now down to 30 days.

These reforms have already produced tangible results. According to market research firm DealForma, about 29% of global big pharma licensing deals worth over USD 50 million involved technologies developed by Chinese biotech companies—up from just 3% in 2015. Chinese firms have shown particular strength in oncology. As of last year, 54% of China’s technology licensing deals were related to anticancer drugs. China’s share of global oncology clinical trials jumped from 2% in 2009 to 39% last year—surpassing the U.S. (32%) and Europe (20%).

China’s Biotech Ambitions

China’s rapid ascent in the biopharmaceutical industry is also evident in the highly competitive antibody-drug conjugates (ADC) market, which is gaining global attention. According to GlobalData, as of April, 5 out of the top 10 global companies with the highest number of ADC drug candidates in development were Chinese biotechs.

Major global pharmaceutical companies (big pharma) are increasingly licensing ADC candidates from Chinese firms, pushing up the value of such deals. In December last year, Bristol Myers Squibb (BMS) signed a licensing agreement with Chinese biotech SysImmune for a bispecific ADC candidate, in a deal worth USD 8.4 billion—of which USD 800 million was non-refundable upfront. This marks the largest-ever deal in the ADC field for a single pipeline.

China’s biotech rise has been fueled by robust government support. Since 2010, China designated biotechnology among eight “strategic emerging industries,” offering tax benefits and easing regulations like simplifying clinical trial processes. From 2015, policies such as “Made in China 2025” and “Healthy China 2030” have guided national-level biotech development strategies, while detailed policies have helped strengthen company capabilities.

U.S. Strengthens Countermeasures with Biosecurity Law and National Priority Voucher Program

Based on these developments, China is significantly narrowing the gap with the U.S. pharmaceutical industry. While the United States continues to push legislation like the Biosecurity Law to restrict transactions with Chinese biotech firms, it is also stepping up efforts to counter China's accelerating pace. Just one day after China announced its plan to shorten clinical trial review periods, the U.S. FDA unveiled the 'Competitive National Priority Voucher (CNPV)' program on the 17th. This initiative dramatically shortens the New Drug Application (NDA) review period from the usual 10–12 months to just 1–2 months for companies with manufacturing facilities in the U.S. or deemed politically friendly. FDA experts will conduct focused one-day meetings to evaluate applications—offering pharmaceutical companies a powerful incentive.

In April, a U.S. Senate committee also called for measures to prevent China from acquiring American citizens’ biometric data. Lawmakers warned that if China were to analyze U.S. bio data and develop drugs especially effective for Americans, the U.S. bio-sovereignty could be jeopardized—similar to how the world depended on vaccine-producing countries during the COVID-19 pandemic. The committee cautioned, “China has prioritized biotech as a strategic sector for the past 20 years and is rapidly gaining the upper hand. Without swift countermeasures, the U.S. may fall behind and never recover.”

The reason the U.S.—the world’s largest pharmaceutical power—is so wary of Chinese biotech firms becomes evident when looking at their recent achievements. Chinese genomic analysis company BGI acquired U.S.-based Complete Genomics (CGI) in 2012, entering the American market and disrupting the genomic analysis equipment sector long dominated by firms like Illumina and Thermo Fisher.

China is also rolling out "super-me-too" drugs—new medications created by modifying the chemical structure of existing ones—alongside highly sought-after global drug candidates. With strong government support, streamlined clinical trials, and access to large patient populations, China has significantly reduced drug development times and enhanced its competitiveness. Some experts in the global pharmaceutical sector even say, “Within the next 10 years, a significant portion of blockbuster drugs will originate from Chinese laboratories.”

Moreover, China now dominates the active pharmaceutical ingredient (API) market—an essential component in final drug formulations. APIs are crucial because they determine a medicine’s efficacy. China leads the world in the API market for antibiotics, and it also holds a substantial share of the API intermediate market (the semi-processed form of APIs). According to bio-industry analysts, 70% of API intermediates used in Europe come from China. This year, China’s API market revenue is projected to reach USD 15.97 billion, with an estimated compound annual growth rate (CAGR) of 7.86% through 2030.