Tag: Supply Chain

U.S. Issues Final Rules to Keep Chip Funds Out of China

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The Biden administration on Friday issued final rules that would prohibit chip companies vying for a new infusion of federal cash from carrying out certain business expansions, partnerships and research in China, in what it described as an effort to protect United States national security. The regulations come as the Biden administration prepares to disburse more than $52 billion in federal grants and tens of billions of dollars of tax credits to build up the U.S. chip industry. The new rules aim to prevent chip makers that benefit from U.S.…

Senate Committee Backs Bill to Deepen U.S. Economic Ties With Taiwan

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The Senate Finance Committee on Thursday passed a bill that would deepen economic ties between the United States and Taiwan and effectively create a tax treaty that is expected to pave the way for more Taiwanese investment in the American semiconductor industry. The effort by Congress could inflame tensions between the United States and China at a time when the Biden administration has been working to stabilize the relationship. President Biden dispatched three cabinet officials to Beijing this summer to improve dialogue between the world’s two largest economies. In a…

European Union Will Investigate Chinese Subsidies of Electric Cars

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The European Union will begin an investigation into Chinese subsidies of electric vehicles, the bloc’s top official announced Wednesday, in a move that highlights Europe’s growing industrial and geopolitical competition with China. Chinese automakers have gained a dominant position in the world’s electric vehicles industry and see Europe as a big potential market. Automakers in Europe, who are racing to expand their battery-powered lineups, have expressed concern that they face tough competition against low-priced models from China. Ursula von der Leyen, the president of the European Commission, announced the initiative…

China’s Exports Fall for Fourth Straight Month

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The Background Economists had expected the August trade numbers to be slightly worse. A Reuters survey forecast that exports had fallen 9.2 percent in August from a year earlier, and that imports had dropped 9 percent. Exports had plunged 14.5 percent from a year earlier in July. Many multinationals, especially large retailers in the United States, have become worried about the dependence of their supply chains on China as geopolitical tensions have increased in recent years and as international trade disputes have intensified, particularly between the United States and China.…

Factories May Be Leaving China, but Trade Ties Are Stronger Than They Seem

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The United States has spent the past five years pushing to reduce its reliance on China for computer chips, solar panels and various consumer imports amid growing concern over Beijing’s security threats, human rights record and dominance of critical industries. But even as policymakers and corporate executives look for ways to cut ties with China, a growing body of evidence suggests that the world’s largest economies remain deeply intertwined as Chinese products make their way to America through other countries. New and forthcoming economic papers call into question whether the…

When Great Power Conflict and Climate Action Collide

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Produced by ‘The Ezra Klein Show’ The global decarbonization effort is colliding headfirst with the realities of great power politics. China currently controls more than 75 percent of the world’s electric vehicle battery and solar photovoltaic manufacturing supply chains. It also processes the bulk of the so-called critical minerals, like lithium, cobalt and graphite, that are essential to building out clean energy technologies. There is no clean energy revolution without China. What would happen if China decided to weaponize its clean energy resources in the same way Russia recently weaponized…

Intelligence Agencies Warn Foreign Spies Are Targeting U.S. Space Companies

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Chinese and Russian intelligence agencies are targeting American private space companies, attempting to steal critical technologies and preparing cyberattacks aimed at degrading U.S. satellite capabilities during a conflict or emergency, according to a new warning by American intelligence agencies. The National Counterintelligence and Security Center, the F.B.I. and the Air Force issued a new advisory to American companies Friday morning. The broad warning to industry said that foreign intelligence services could be targeting space firms, their employees and the contractors that serve those companies. Space companies’ data and intellectual property…

Solar Supply Chain Grows More Opaque Amid Human Rights Concerns

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Global supply chains for solar panels have begun shifting away from a heavy reliance on China, in part because of a recent ban on products from Xinjiang, a region where the U.S. government and United Nations accuse the Chinese government of committing human rights violations. But a new report by experts in human rights and the solar industry found that the vast majority of solar panels made globally continue to have significant exposure to China and Xinjiang. The report, released Tuesday, also faulted the solar industry for becoming less transparent…

Lawmakers Challenge Ford and Chinese Battery Partner Over Forced Labor

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A partnership between Ford Motor and a major Chinese battery maker is facing scrutiny by Republican lawmakers, who say it could make an American automaker reliant on a company with links to forced labor in China’s Xinjiang region. In a letter sent to Ford on Thursday, the chairs of the House Select Committee on the Chinese Communist Party and the House Ways and Means Committee demanded more information about the partnership, including what they said was a plan by Ford to employ several hundred workers from China at a new…

Why What We Thought About the Global Economy Is No Longer True

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When the world’s business and political leaders gathered in 2018 at the annual economic forum in Davos, the mood was jubilant. Growth in every major country was on an upswing. The global economy, declared Christine Lagarde, then the managing director of the International Monetary Fund, “is in a very sweet spot.” Five years later, the outlook has decidedly soured. “Nearly all the economic forces that powered progress and prosperity over the last three decades are fading,” the World Bank warned in a recent analysis. “The result could be a lost…