1.     AI FDI trend

Increase in AI FDI in 2022 than 2021 and 3.5% of all projects were AI projects. The US was the top recipient of AI related projects with 122 followed by UK with 27 and India with 35.

AI Regulation remains a hot topic of conversation with the European Union’s AI Act due not to come into force for 2 years yet, and Rishi Sunak’s recent announcement that the UK should “lead the way” on AI regulation.

Regulation by its nature stifles and inhibits innovation. Premature regulatory controls could reduce the attractiveness of the UK as an AI FDI destination and as the full potential of the new technology is not yet known, legislation may stimmy the UK’s future growth. The US has never managed to pass a federal law to regulate technology.

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2.     US Free Trade Agreement partners by import and export values

Image Jorge Alcala via Unsplash

The US has free trade agreements with 20 countries: Australia exports $38.5 billion, imports $20.2 billion; Bahrain exports $2.1 billion, imports $1.8 billion; Canada exports $360.4 billion, imports $358 billion; Chile exports $21.3 billion, imports $13 billion; Colombia exports $22 billion; imports $18.7 billion; Costa Rica exports $8.2 billion; imports $8.2 billion; Dominican Republic exports $11.9 billion, imports $11 billion; El Salvador exports $4.9 billion, imports $3.3 billion; Guatemala exports $8.4 billion, imports $5.2 billion; Honduras exports $5.3 billion, imports $4.5 billion; Israel exports $20.2 billion, imports $26.9 billion; Jordan exports $2.2 billion,  imports $2.8 billion; Korea export $80.5 billion, imports $88.1 billion; Mexico exports $289.5 billion, imports $387.8 billion; Morocco exports $4.3 billion, imports $2.3 billion; Nicaragua exports $2 billion, imports $4.3 billion; Oman exports $2.5 billion, imports $1.3 billion; Panama exports $9.9 billion, imports $3.2 billion; Peru exports $13.7 billion, imports $7.5 billion; Singapore exports $51.6 billion, imports $42.1 billion.

Exports to FTA countries in 2020 totalled $959.4 billion and imports from FTA totalled $1,010.2 billion leaving a trade surplus of $50.8 billion. The only countries the US has a trade deficit with are: Israel, Jordan, Korea, Mexico and Nicaragua.

The UK does not currently have a trade deal with the US: exports were $147.4 billion; imports were $125.6 billion.

3.     London Tech Week

Caroline Hyde at the London Tech Week editathon at Bloomberg London via Wikimedia Commons

Caroline Hyde at the London Tech Week editathon at Bloomberg London via Wikimedia Commons

Last week was London Tech Week where 30,000 visitors and 3,500 startups attended events around the Queen Elizabeth II centre in Westminster. It was the 10th anniversary of London Tech Week. 2023 was focused on AI.

Attendees can listen to presentations; startup founders can pitch their idea to investors and attendees can network with other attendees.

600 delegates from Asia Pacific attended the event and 50 from Mexico.

4.     Indonesia’s new capital

Image BPMI President’s Secretariat/Muchlis Jr – President of the Republic of Indonesia via Wikimendia Commons

Image BPMI President’s Secretariat/Muchlis Jr – President of the Republic of Indonesia via Wikimendia Commons

Indonesia has put in place tax incentives for investors willing to fund its new capital ‘Nusantara.’ As at 10th March 2023 the new city was 14% complete, bringing into question the planned opening date of August 2024. The Government has announced up to 100% corporate tax holiday for 10-30 years for investors who invest greater than $650,745.

The current capital Jakarta with a population of 10.5 million is sinking into the Java Sea.

The Indonesian Government has only committed 35% of the costs of the construction, or $35 billion.

59% of experts surveyed last June were unsure the new city would ever be built. Japan’s SoftBank pulled out of the project last December over concerns over profitability and future load on the state.

5.     National Security and Investment Act

Image Deniz Fuchidzhiev via Unsplash

222 reports were raised in the first three months after the National Security and Investment Act came into force in the UK. The initial data would imply that around 1,000 cases per year would expect to be examined. 5 cases were blocked in the first 16 months and 10 subject to remedies. Beijing Infinite Vision Technology Company’s purchase of image technology by University of Manchester, Hong Kong’s Super Orange purchase of Pulsic, Chinese Nexperia’s purchase of Welsh chip factory Newport Wafer Fab, and two other deals.

The Act was originally designed to prevent foreign countries purchasing assets of national value below the market price during COVID.

6.     100 Indian tech companies attend London Tech Week

Credit Amrit Kaur Lotay via LinkedIn

100 Indian technology companies attended London Tech Week to explore investment and expansion plans. The event was attended by delegates from 150 countries.

The Indian attendees went to the AI summit, presentations and networking and an event at the High Commission of India.

This year was the 10th London Tech Week event. An estimated $107 billion in funding has been raised in total during this time with VC funding increasing 800% since 2014.