Tag: Supply Chain

Chinese Government Steps In to Help an Apple iPhone Factory

Chin@Strategy

Apple’s largest iPhone factory, in the city of Zhengzhou, has been beset with production problems caused first by a Covid lockdown and then by a shortage of workers. Now, that plant is getting help from an unlikely source: the Chinese government. Officials in central China have tapped the government’s vast network of party members, civil servants and military veterans to help Foxconn, the Taiwanese-based assembler of Apple’s iPhones, with its recruitment drive. They called on them to “respond to the government’s call” and “aid in the resumption of production” at…

Did Germany Learn From Its Russia Trouble? The Test May Come in China.

Chin@Strategy

BERLIN — Germany understood the trap of strategic vulnerability that it had laid for itself in relying so heavily on Russian gas only after Moscow invaded Ukraine and turned off the spigot. But whether that lesson has been fully absorbed may be tested elsewhere: China. As Chancellor Olaf Scholz prepares for his first visit to Beijing on Thursday, a planeload of executives in tow, Germany’s intelligence chiefs and allies are warning him against pursuing business as usual with a China that is saber-rattling in the Taiwan Strait. Were tensions to…

Apple Earnings: iPhone Powers Growth, but Signs Point to a Slowdown

Chin@Strategy

When Apple released the 16th version of its iPhone in September, some tech reviewers described it as an incremental improvement over earlier models. Apple’s customers didn’t care. They bought the new iPhone 14 in droves. On Thursday, the world’s most valuable company said that strong demand for iPhones helped it increase total revenue by 8 percent to $90.1 billion for the three months that ended in September, bringing an end to a fiscal year in which it posted sales gains every quarter. The company reported that profits rose nearly 1…

A U.S. ‘Ships Act’ Would Break China’s Control of the Seas

Chin@Strategy

Soon after President Xi Jinping of China took power, he instructed top Communist Party leaders in a 2013 speech to turn the country into a “maritime superpower.” China already has the world’s largest navy, though its ability to contend with U.S. naval forces remains in doubt. But leaders in Beijing have realized that maritime strength is not measured solely in firepower. Success in commercial shipping would have “great and far-reaching significance” for Chinese national strength and security, Mr. Xi told the Politburo then, reminding the party that throughout history the…

In South Korea, President Yoon Treads Fine Line Between U.S. and China

Chin@Strategy

SEOUL — Four months into his new administration, President Yoon Suk Yeol of South Korea has found hi​mself in trouble. His national approval rating has plummeted, his governing People Power Party does not control Parliament and five of his cabinet-level appointees have been forced to step down amid accusations of nepotism, sexual harassment and other ethical lapses. Yet despite myriad domestic challenges, Mr. Yoon is hoping to boost his popularity at home and raise his profile on the world stage by pursuing a new foreign policy agenda, one that would…

Tech Companies Slowly Shift Production Away From China

Chin@Strategy

In the coming weeks, Apple and Google will unveil their latest generation of smartphones, jockeying to distinguish the new devices from previous models. But one of the most significant changes will go largely unnoticed by consumers: Some of these phones will not be made in China. A very small portion of Apple’s latest iPhones will be made in India, and part of Google’s newest Pixel phone production will be done in Vietnam, people familiar with their plans said. The shift is a response to growing concerns about the geopolitical tensions…

China’s Options for Punishing Taiwan Economically are Limited

Chin@Strategy

In retaliation for Speaker Nancy Pelosi’s visit to Taiwan last week, China conducted large-scale military exercises around the self-governing island democracy and suspended some trade between the sides. The exercises led to a few shipping disruptions, but they did not affect traffic at Taiwanese or Chinese ports, analysts say. And the trade bans were notable mainly for what they did not target: Taiwan’s increasingly powerful semiconductor industry, a crucial supplier to Chinese manufacturers. The bans that Beijing did impose — on exports of its natural sand to Taiwan, and on…

Biden Signs Industrial Policy Bill Aimed at Bolstering Competition With China

Chin@Strategy

WASHINGTON — President Biden on Tuesday signed into law a sprawling $280 billion bill aimed at bolstering American chip manufacturing to address global supply chain issues and counter the rising influence of China, part of a renewed effort by the White House to galvanize its base around a recent slate of legislative victories. Standing before business leaders and lawmakers in the Rose Garden, Mr. Biden said the bill was proof that bipartisanship in Washington could produce legislation that would build up a technology sector, lure semiconductor manufacturing back to the…

Global Brands Seek Clarity on Xinjiang

Chin@Strategy

Ms. Apter said that while no Eileen Fisher garments were being made in Xinjiang and that it wasn’t getting fabric or yarn from the region, the company didn’t know whether any of the cotton fiber it was using could be traced to Xinjiang. “Two years of pandemic and a deteriorating political situation made it impossible to fully vet what is happening on the ground,” Ms. Apter said. The Latest on China: Key Things to Know Card 1 of 4 Discontent among the population. The Chinese government’s censorship and surveillance, which…

What Dominated the World Economic Forum

Chin@Strategy

Davos’s talking points The annual World Economic Forum, delayed from its normal winter date by Covid, has wrapped up. The high-profile conference, which draws leaders from government, business and nonprofits, has returned for the first time since coronavirus shut down the world — but in the midst of a war in Europe. DealBook was on hand, and here are our big takeaways: Executives are worried about a slowdown. Nearly every conversation with chief executives was dominated by how to handle rising interest rates, inflation and supply chain shocks, with the…