Tag: Supply Chain

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

Chin@Strategy

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

Chin@Strategy

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

Chin@Strategy

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…

I.M.F. Forecasts U.S. and China Slowdowns Will Hold Back Growth

Chin@Strategy

The pandemic has changed the way people in many parts of the world spend their money, shifting funds that might have been used for dining, travel and entertainment to goods they can play with, sit on or consume at home. That increased demand, combined with persistent difficulties in moving goods from one city or continent to another, skyrocketing energy prices and labor shortages, has driven up costs. Some of those pressures are expected to wane toward the end of the year — but not everywhere. “In the United States the…

Your Monday Briefing: A U.K. Accusation

Chin@Strategy

Good morning. We’re covering reports of Russia’s positioning in Ukraine, Beijing’s hard-line Olympic strategy and miserable conditions at a Chinese tire factory in Serbia. Britain accuses Russia of Ukraine plot The British government said that the Kremlin appeared to be developing plans to install a pro-Moscow leader in Ukraine. The highly unusual public statement, backed by U.S. officials, comes at a pivotal moment in high-stakes negotiations. Moscow has deployed more than 100,000 troops on Ukraine’s borders that could, according to American officials, attack anytime. According to the assessment, Russian planners…

Biden Looks to Intel’s U.S. Investment to Buoy His China Agenda

Chin@Strategy

WASHINGTON — In celebrating a $20 billion investment by Intel in a new semiconductor plant in Ohio, President Biden sought on Friday to jump-start a stalled element of his economic and national security agenda: a huge federal investment in manufacturing, research and development in technologies that China is also seeking to dominate. With two other major legislative priorities sitting moribund in Congress — the Build Back Better Act and legislation to protect voting rights — Mr. Biden moved to press for another bill, and one that has significant bipartisan support.…

Zero-Covid Policy Shakes Hong Kong’s Economy and Its ‘Soul’

Chin@Strategy

HONG KONG — Perry Lam felt confident that his business had weathered the worst of the pandemic. Several rounds of bar closures in Hong Kong had dimmed the city’s vibrant nightlife, threatening to destroy his brewery. But things seemed better late last year. After the government’s relentless effort to stamp out the virus, there were no local infections, bars began ordering kegs of his lager again and money was coming in. “You saw the silver lining,” said Mr. Lam, 34. That changed this month when Omicron started spreading, and officials…

Supply Chain Woes Could Worsen as China Imposes Covid Lockdowns

Chin@Strategy

WASHINGTON — Companies are bracing for another round of potentially debilitating supply chain disruptions as China, home to about a third of global manufacturing, imposes sweeping lockdowns in an attempt to keep the Omicron variant at bay. The measures have already confined tens of millions of people to their homes in several Chinese cities and contributed to a suspension of connecting flights through Hong Kong from much of the world for the next month. At least 20 million people, or about 1.5 percent of China’s population, are in lockdown, mostly…

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

Chin@Strategy

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

Chin@Strategy

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…