Crypto News: Bad for business

Taiwan has no closer friend than the US when it comes to military and diplomatic support, but now Taipei is getting nervous that American warnings about the risk of a Chinese attack could hurt the island's business environment.

Taiwanese officials are quietly urging their US counterparts to tone down their rhetoric about the dangers of relying on supplies from Taiwan Semiconductor Manufacturing Co., the industry's leading producer of high-end chips used for things like smartphones and AI.

As Debby Wu and Jenny Leonard explain, their ire is particularly focused on Commerce Secretary Gina Raimondo, who recently called America's dependence on Taiwan for more than 90% of its most advanced chips "untenable." But the frustration crosses US party lines: A top Republican lawmaker, Michael McCaul, said the "window's closing" on diversifying supply chains.

Taiwan has recognized the need to spread out some of its production — it's committed to a $40 billion project in the US state of Arizona — but it also wants to keep manufacturing the most valuable chips on the island.

Its worries aren't theoretical: Warren Buffett's Berkshire Hathaway cut its holdings in TSMC by 86% in the fourth quarter, with the billionaire citing geopolitical risks over Taiwan as the main reason.

And the tensions are worsening. US President Joe Biden plans to sign an executive order soon to limit American investment in key parts of China's economy.

Taiwan remains a fundamental focus for Beijing, with Chinese Foreign Minister Qin Gang calling it the "core of the core interests of China."

"Those who play with fire on Taiwan will eventually get burned," Qin said at a forum in Shanghai today.

While Taiwan's ruling party previously benefited from warning of Chinese overreach and has trumpeted the dangers posed by Beijing for months, now it's looking to tone things down to avoid any long-term economic fallout. — Bill Faries

A circuit board displayed at Macronix International in Hsinchu, Taiwan. Photographer: Annabelle Chih/Getty Images

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Russian weapon sales to India have halted as the countries struggle to avoid violating US sanctions. As Sudhi Ranjan Sen and Adrija Chatterjee report, Moscow has stopped supplying credit for about $10 billion worth of spare parts and two undelivered S-400 missile-defense systems. Russia is India's biggest supplier of weapons used to deter Pakistan and China.

Follow our rolling coverage of the war in Ukraine.

Biden may launch his reelection campaign as early as next week with an official announcement, setting up a potential rematch with Donald Trump. Biden, at 80 the oldest US president in history, has long signaled he intends to seek a second term next year, making it something of an open secret.

India was the biggest recipient of remittances last year, marking a 12% rise to more than $100 billion, according to London-based mobile payments provider TerraPay. The data, which echoes World Bank and United Nations estimates, indicates 18 million Indians live outside their country of birth, making up the biggest diaspora in the world.

Sudan's army and a rival paramilitary group are facing mounting international pressure to end their battle for control of the North African nation that has claimed hundreds of lives since it erupted last weekend. While the African Union and countries including the US, China and Russia condemned the violence and called for an immediate cease-fire, residents today reported heavy shelling in Khartoum, the capital.

North Korea warned the US it will never give up its atomic weapons and pledged to punish Group of Seven members who try to change that. Foreign Minister Choe Son Hui's first formal statement directed at the US in about half a year served as a reminder that leader Kim Jong Un may try to force his way on to the agenda when G-7 leaders meet next month in Japan.

Theories abound surrounding the underwater detonations that caused gas to bubble up from the Baltic seabed, turning the surface into a gurgling cauldron. As Willem Marx reports, seven months on, the mystery of who was behind the explosions that damaged the Nord Stream 1 and 2 natural gas pipelines from Russia to Europe remains unsolved.

The leak near the Danish island of Bornholm. Source: Danish Defense

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UK Prime Minister Rishi Sunak's deputy, Dominic Raab, resigned after an independent investigation criticized his behavior toward civil servants.
Biden is seeking $500 million to bolster Brazil's strategy to protect the Amazon, a gesture to his counterpart Luiz Inacio Lula da Silva amid recent tensions over Russia's invasion of Ukraine and relations with China.
Indonesia's ruling party has chosen Central Java Governor Ganjar Pranowo, seen as a natural successor to incumbent Joko Widodo, as its presidential nominee.
Colombian President Gustavo Petro asked Biden during a White House meeting for more military aid to fight cocaine smuggling, as his government pledges a new approach in the fight against drugs.
South African President Cyril Ramaphosa is facing increasing pressure to hand powers to his new electricity minister and enable him to make decisions to stave off more intense blackouts as peak winter demand looms.

Pop quiz (no cheating!) In which country's top court did landmark hearings on same-sex marriage begin this week? Send your answers to balancepower@bloomberg.net.

And finally ... For a few moments yesterday, Elon Musk's SpaceX gave the world a glimpse into what the future of space travel could look like as its Starship rocket lifted off into the skies. But the giant vehicle's explosion just four minutes after launch showed how far there still is to go before the company's biggest ambitions — transporting people to the moon and beyond — might be reality.