Biden Signs Industrial Policy Bill Aimed at Bolstering Competition With China

biden signs industrial policy bill aimed at bolstering competition with china

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…

What Dominated the World Economic Forum

what dominated the world economic forum

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…

Your Thursday Briefing: A Ban on Russian Oil?

Good morning. We’re covering the E.U.’s plan to ban Russian oil, growing U.S. frustration with the politicized Supreme Court and a separatist movement in Pakistan. The E.U. may ban Russian oil With no end to the Ukraine conflict in sight, the European Union took a major step on Wednesday toward weakening Moscow’s ability to finance the war, proposing a total embargo on Russian oil. If approved this week as expected, it would be the bloc’s biggest and costliest step yet toward supporting Ukraine and ending its own dependence on Russian…

Your Friday Briefing: China’s Stimulus Plan

Good morning. We’re covering China’s economic stimulus plan, President Biden’s push for war funds and extreme heat in India and Pakistan. China’s Covid stimulus plan As China’s lockdowns continue and new infections continue to spread in Beijing, the central government has laid out a wide-ranging economic stimulus plan to staunch expected losses. The government will subsidize businesses, pausing unemployment insurance payments if companies avoid mass layoffs, as well as electricity and internet charges. Young people graduating from college will be subsidized if they start their own businesses, since few jobs…

How the Supply Chain Crunch is Hurting California Farmers.

During a normal spring, the sight of orchards bursting with clusters of almonds is a boon throughout California’s Central Valley. Here is money growing on trees. Not this year. As Scott Phippen looks out on his orchard on a recent afternoon, he feels a sense of foreboding tinged with rage. His warehouse is stuffed with the leftovers of last year’s harvest — 30 million pounds of almonds stored in wooden and plastic bins stacked to the rafters, and overflowing into his yard. Orders assembled for customers sit in giant white…

Globalization Is Over. The Global Culture Wars Have Begun.

Next, I’m describing a world in which divergence turns into conflict, especially as great powers compete for resources and dominance. China and Russia clearly want to establish regional zones that they dominate. Some of this is the kind of conflict that historically exists between opposing political systems, similar to what we saw during the Cold War. This is the global struggle between the forces of authoritarianism and the forces of democratization. Illiberal regimes are building closer alliances with one another. They are investing more in one another’s economies. At the…

Federal Reserve Walks a Tightrope Between Inflation and Recession

federal reserve walks a tightrope between inflation and recession

In an interview, James D. Hamilton, professor of economics at the University of California, San Diego, and a leading expert on the economic effects of oil shocks, said they had “made major contributions to recessions over many decades.” At current oil price and supply levels, the effects of the Russian war “are fairly manageable for the American economy.” But Professor Hamilton pointed out that Russia’s oil, which amounts to about 10 percent of world production, could not be easily replaced if totally cut off — an outcome that he does…

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

i m f forecasts u s and china slowdowns will hold back growth scaled

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…

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

biden looks to intels u s investment to buoy his china agenda scaled

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.…

Supply Chain Woes Could Worsen as China Imposes Covid Lockdowns

supply chain woes could worsen as china imposes covid lockdowns scaled

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…