The Return of Jack Ma

There is no end in sight to the war in Ukraine, but do both sides have what they need to keep going? Modern warfare requires missiles, tanks, drones and military aircraft packed with guidance systems, radar and night-time image sensors, but all of these things depend on one vital component: chips.

Most high-end chips are produced by U.S. companies such as Intel and Advanced Micro Devices, and Washington has banned their export to Russia since the war broke out. But a Nikkei investigation has revealed that Russia continues to import these vital components through circuitous routes, with a large portion flowing through small traders in Hong Kong and mainland China.

Our reporters in Tokyo, Hong Kong, Taipei and London worked together on this investigation for several months, analyzing customs data and visiting shady offices that purportedly export chips to Russia. They talked to chip companies and experts, piecing together the story like a mystery novel. I never imagined that chips -- now in the midst of a global demand slump -- could play such a crucial role in the war in Ukraine.

This special Nikkei report is also covered in this week's podcast episode. Make sure to follow our new audio series, Tech Latest, out every Friday afternoon.

One of the reporters for this investigative project, Cissy Zhou in Hong Kong, also wrote this week's Big Story on Alibaba. It was widely known that the company's co-founder, Jack Ma, had been staying away from China lately -- he was even spotted at a high-end restaurant not far from the Nikkei office in Tokyo. Up until late March, the Chinese tech mogul's whereabouts had been largely unknown.

However, Ma abruptly broke the silence. He flew to the Chinese city of Hangzhou on the morning of March 27, ending nearly a year of "exile." The next day, Alibaba announced a plan to split the company into six business groups that would pursue separate listings.

Does this shake-up have anything to do with Ma's return to China? Has there been a shift in China's crackdown on big tech? Zhou examines the aims and impacts of the restructuring plan by talking to various sources inside and outside of Alibaba.

Here in Japan, we are in the middle of the campaign season for both nationwide local assembly elections and five special elections for the Diet. Everyone I speak with in Tokyo's political nerve center of Nagatacho -- home to the Diet and the prime minister's office -- is speculating about how the election outcomes will affect Prime Minister Fumio Kishida's political capital.

The recent recovery in Kishida's approval ratings is mostly due to his diplomatic achievements, from his successful meeting with the South Korean president to his surprise visit to Ukraine. This week's Asia Insight by diplomatic correspondent Ken Moriyasu takes an in-depth look at Japan's National Security Council (NSC) -- the powerful but not very well-known organization that works behind the scenes of diplomacy.

Japan's NSC was created under the government of the late Prime Minister Shinzo Abe, who demonstrated strong diplomatic leadership and maximized the use of the council. To the frustration of many in the Foreign Ministry, Abe tapped Shigeru Kitamura, then Japan's chief intelligence officer and a former National Police Agency official, to head the organization. Following Abe's resignation, Takeo Akiba, a senior Foreign Ministry official, assumed the top NSC post. Akiba led discussions on the National Security Strategy and two accompanying defense documents that were released last December.

This month marks one year since GoTo, the Indonesian superapp and e-commerce platform provider, was listed in Indonesia. All the big tech companies are downsizing, mainly through job cuts, to meet the challenge of profitability. This week's Business Spotlight explains why GoTo has been unable to ride the recovery wave while its Southeast Asian peers are gradually making progress.

Meanwhile, Market Spotlight sheds light on the nonperforming loans of Chinese banks. The financial instability originating from the U.S. and Europe has highlighted the stability of Chinese financial institutions, which are heavily regulated by authorities. However, the story indicates that despite Beijing's initiative to sell off the bad loans, the overall situation has not improved.

Lastly, for something truly unique from the Life & Arts section, I recommend a piece about Mohammad Ghalib, a 60-year-old katib (calligrapher) who works in Delhi's Urdu Bazaar as the last living practitioner of Urdu calligraphy.