Wall Street Journal (February 17)
“The new plan for western companies is ABC: ‘Anything But China.’” Many multinationals had previously tried to correct their overreliance on Chinese suppliers through a “‘China Plus 1’ strategy of augmenting China-based suppliers with those in other countries.” Rising tensions between the U.S. and China are now prompting many tech businesses to instead adopt the ABC strategy. They are “accelerating moves to shift production out of China and look for suppliers elsewhere, signifying a global tech world that is increasingly bifurcated between the two powers.”
Tags: ‘Anything But China, ABC strategy, Bifurcated, China Plus 1, Companies, Multinationals, Overreliance, Production, Suppliers, Tech, Tensions, U.S., Western
Bloomberg (June 26)
“China is losing the war against shadow banking. Look beneath the headline numbers and you’ll see that activity is picking up, a sign of the economy’s overreliance on this opaque funding channel.” In the first quarter, “financing using trust assets climbed 4.4%” and the “proportion prone to default and repayment risks climbed to a record high of 90% from a year earlier.” Despite the talk of deleveraging, “what’s clear is that China needs its shadow banks now more than ever.”
Tags: China, Default, Deleveraging, Opaque funding, Overreliance, Repayment risks, Shadow banking, Trust assets
