Tesla’s Aura Dims as Its Plunging Stock Highlights the Risks It Faces

Chinese consumers “are edgy, they’re worried about the future,” Mr. Dunne said. “It’s a double whammy that Tesla confronts in China.” Tesla shares are reacting in part to the same forces that are roiling stock markets around the world: war in Ukraine, rising interest rates, the threat of recession, supply chain chaos and surging inflation. But Tesla shares have fallen much more than other Silicon Valley giants like Apple or Alphabet, the company that owns Google. Tesla accounted for three-quarters of the electric cars sold in the United States last…

China’s GDP Data Hint at Heavy Cost of its Zero Covid Strategy

BEIJING — Faced with its worst Covid-19 outbreak yet, China has been enforcing an expanding number of mass quarantines, strict lockdowns and border controls. The measures may yet work, but official data released on Monday show they are exacting a grim toll on the world’s second-largest economy. China’s economy expanded 4.8 percent in the first three months of this year compared to the same period last year. That pace was barely faster than the final three months of last year, and it also obscured a looming problem. Much of that…

Companies Stay In China Despite Political Risks and Travel Limits

BEIJING — American companies are increasingly worried about coronavirus restrictions, regulatory issues and trade tensions with China, but have been cautious so far about moving production elsewhere, new figures show. American companies in China are as worried now about relations between the United States and China as they were when President Donald J. Trump’s trade war peaked in 2019, according to an annual survey released on Tuesday by the American Chamber of Commerce in China. A brief “Biden bump” in sentiment, when relations seemed as if they might improve after…

How the Computer Chip Shortage Could Incite a U.S. Conflict With China

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But Taiwan and its semiconductors are far more important to America’s economy than Ukraine is — meaning it would very likely be far more difficult for the United States to stay out of a conflict involving Taiwan. Taiwan accounts for half of the overall production of microchips that are critical to the functioning of mobile phones, consumer electronics, cars, military equipment and more. South Korea, the nearest competitor, has about 17 percent of the overall market. But Taiwanese chips are the smallest and fastest, and its foundries account for 92…

Democrats Renew Push for Industrial Policy Bill Aimed at China

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WASHINGTON — Biden administration officials and Democrats in Congress are pushing to revive stalled legislation that would pour billions of dollars into scientific research and development and shore up domestic manufacturing, amid deep differences on Capitol Hill about the best way to counter China and confront persistent supply chain woes. House Democrats unveiled a 2,900-page bill on Tuesday evening that would authorize $45 billion in grants and loans to support supply chain resilience and American manufacturing, along with providing billions of dollars in new funding for scientific research. Speaker Nancy…

Vestas, a Danish Wind Giant, Warns of Supply Chain Turbulence

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Wind energy projects are being proposed around the world to help meet climate goals, but the largest maker of turbines is finding that supply chain issues and pandemic lockdowns are hampering wind farm construction and hurting financial results. “It is troubling and challenging out there,” Henrik Andersen, chief executive of the Danish company Vestas Wind Systems, said on a call with analysts on Wednesday. Mr. Andersen said the company had to recently navigate the disruption caused by the compulsory mass testing of 14 million residents in Tianjin, China, where Vestas…

Supply Chain Woes Prompt a New Push to Revive U.S. Factories

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Called near-shoring, the move to Mexico is paralleled in Europe with factories opening in Eastern Europe to serve Western European markets like France and Germany. “We’re starting to see it in Mexico as well as in the U.S.,” said Theresa Wagler, chief financial officer of Steel Dynamics, a steel maker based in Fort Wayne, Ind. “Many companies now prefer security of supply over cost.” Mr. Knizek of EY-Parthenon expects industries with complex and more expensive products to lead the resurgence, including automobiles, semiconductors, defense, aviation and pharmaceuticals. Anything that requires…

U.S. Effort to Combat Forced Labor Targets Corporate China Ties

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A far-reaching bill aimed at barring products made with forced labor in China became law after President Biden signed the bill on Thursday. But the next four months — during which the Biden administration will convene hearings to investigate how pervasive forced labor is and what to do about it — will be crucial in determining how far the legislation goes in altering the behavior of companies that source products from China. While it is against U.S. law to knowingly import goods made with slave labor, the Uyghur Forced Labor…

How China’s CATL Became the Top Electric Car Battery Maker

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CATL’s initial public offering in 2018 made Mr. Zeng and two CATL vice chairmen, who together own a 40 percent stake, rich. Other early investors, some with deep political connections, did well, too. The company’s success was never assured, but China had let the world know that it planned to dominate the electric vehicle industry. It said in a sweeping announcement in 2016 that a “third industrial revolution” focusing on digitization and “new energy” would allow China to take the lead in autos. CATL invited a few outside investors to…

How Tesla Helps China’s Firms Compete With the U.S.

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Forty-two years ago, Liu Siong Song built machines to help factories make cheap toys and watches. Then he made them for motorcycle companies. Now he helps Tesla, in the words of Elon Musk, “make full-size cars in the same way that toy cars are made.” Mr. Liu, 69, may have come full circle, in a sense, but he also may play a role in the future of driving. His company is one of the emerging Chinese manufacturers competing aggressively and competently with traditional players in the United States, Japan and…

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