Tag: Supply Chain

Chinese Traders and Moroccan Ports: How Russia Flouts Global Tech Bans

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Shortly after Russia invaded Ukraine last year, engineers at Convex, a Russian telecommunications company, needed to find American equipment to transmit data to the country’s feared intelligence service. But no gear was flowing in after Western nations imposed sweeping new trade limits on Russia. Convex’s employees soon found a solution. While Cisco, a U.S. tech provider, had halted sales to Russia on March 3, 2022, Convex’s engineers easily obtained the Cisco gear they needed through an obscure Russian e-commerce site called Nag, which had gotten around international trade restrictions by…

U.S. Limits China’s Ability to Benefit From Electric Vehicle Subsidies

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The Biden administration proposed new rules on Friday aimed at shifting more production of electric vehicle batteries and the materials that power them to the United States, in an attempt to build up a strategic industry now dominated by China. The rules are meant to limit the role that firms in China can play in supplying materials for electric vehicles that qualify for federal tax credits. They will also discourage companies that seek federal funding to build battery factories in the United States from sourcing materials from China or Russia.…

U.S. Debates How Much to Sever Electric Car Industry’s Ties to China

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The Biden administration has been trying to jump-start the domestic supply chain for electric vehicles so cleaner cars can be made in the United States. But the experience of one Texas company, whose plans to help make an all-American electric vehicle were upended by China, highlights the stakes involved as the administration finalizes rules governing the industry. Huntsman Corporation started construction two years ago on a $50 million plant in Texas to make ethylene carbonate, a chemical that is used in electric vehicle batteries. It would have been the only…

China’s Xi Jinping Draws Elon Musk, Tim Cook and Other U.S. CEOs to Gala in San Francisco

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The streets outside the San Francisco hotel where the Chinese leader, Xi Jinping, addressed a crowd of American business executives Wednesday night were chaotic, echoing with police sirens and the chants of protesters. A woman had strapped herself to a pole 25 feet in the air in front of the hotel, yelling “Free Tibet!” as a cold rain fell. But inside the ballroom of the Hyatt Regency, the atmosphere was warm and friendly. More than 300 executives and officials listened attentively as Mr. Xi — the leader of a country…

The Rise and Fall of the U.S.-China Economic Partnership

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For more than a quarter century, the fortunes of the United States and China were fused in a uniquely monumental joint venture. Americans treated China like the mother of all outlet stores, purchasing staggering quantities of low-priced factory goods. Major brands exploited China as the ultimate means of cutting costs, manufacturing their products in a land where wages are low and unions are banned. As Chinese industry filled American homes with electronics and furniture, factory jobs lifted hundreds of millions of Chinese from poverty. China’s leaders used the proceeds of…

Foxconn, China Contractor for Apple, Said to Be Under Tax Audit

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Foreign and local companies in China are increasingly the targets of tax audits and other regulatory reviews, as local governments try to steady their finances by collecting more revenue. The latest company to come under scrutiny is Foxconn of Taiwan. Chinese state media outlets reported on Sunday that the company was facing investigations in four provinces. Foxconn, one of the world’s largest manufacturers of electronics, is Apple’s main contractor for the production of everything from iPhones to MacBook laptop computers. Global Times, a nationalistic tabloid and website owned by the…

Fragile Global Economy Faces New Crisis in Israel-Gaza War

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The International Monetary Fund said on Tuesday that the pace of the global economic recovery is slowing, a warning that came as a new war in the Middle East threatened to upend a world economy already reeling from several years of overlapping crises. The eruption of fighting between Israel and Hamas over the weekend, which could sow disruption across the region, reflects how challenging it has become to shield economies from increasingly frequent and unpredictable global shocks. The conflict has cast a cloud over a gathering of top economic policymakers…

Samsung and SK Hynix Get U.S. Waivers From Export Curbs

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The South Korean government said on Monday that the country’s semiconductor manufacturers have secured waivers from U.S. government rules that threatened to limit their businesses in China. At issue is the continuation of licenses granted last year by the U.S. Commerce Department to Samsung and SK Hynix, the two dominant South Korean chip makers. The licenses effectively suspended 2022 controls on exports of semiconductors and chip making equipment to China. South Korea, an ally in America’s chip war with China, relies heavily on its semiconductor sector for jobs and revenue.…

Ukraine’s War of Drones Runs Into an Obstacle: China

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Surrounded by rooms filled with stacks of cluster munitions and half-made thermobaric bombs, a soldier from Ukraine’s 92nd Mechanized Brigade recently worked on the final part of a deadly supply chain that stretches from China’s factories to a basement five miles from the front lines of the war with Russia. This is where Ukrainian soldiers turn hobbyist drones into combat weapons. At a cluttered desk, the soldier attached a modified battery to a quadcopter so it could fly farther. Pilots would later zip tie a homemade shell to the bottom…

What the U.S.-China Chip War Means for a Critical American Ally

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Samsung and SK Hynix, the semiconductor titans of South Korea, have spent over $52 billion to build up their operations in China. Business with China has long made up a sizable portion of their sales. But the ties between South Korea’s chip companies and China are under strain from geopolitics. South Korea, which relies heavily on its semiconductor sector for jobs and revenue, is wedged between China and the United States, South Korea’s longstanding ally, in their trade war over technology. To curb China’s access to advanced chips that could…