New York Times (December 13)
“By itself the United States cannot keep up with China’s soaring industrial capacity, which translates directly into military might. China has close to a 28 percent share of global manufacturing, while the United States has around 17 percent.” China “is acquiring advanced weapons systems and equipment five to six times faster than America…. The United States now risks finding itself in the position of Britain in the late 19th century and Germany and Japan in the 20th: overtaken militarily by a rising industrial powerhouse.”
Tags: Advanced weapons systems, Britain, China, Germany, Global manufacturing, Industrial capacity, Industrial powerhouse, Japan, Military might, Overtaken, U.S.
Wall Street Journal (December 9)
President Trump promised “a manufacturing boom. He got one—in China.” Cementing its ”status as the world’s indispensable factory floor…. Chinese industrial production broke records this year as its factories churned out more cars, machinery and chemicals than ever before. Despite the disruptions of tariffs, the country’s trade surplus in goods has set a record, as growing shipments to Asia, Europe, Latin America and Africa offset the hit from Trump’s levies on direct sales to the U.S.”
Tags: Africa, Asia, Cars, Chemicals, China, Europe, Factories, Indispensable, Industrial production, Latin America, Machinery, Manufacturing boom, Shipments, Status, Tariffs, Trade surplus, Trump, U.S.
Time (November 24)
Only half a month after Japanese Prime Minister Takaichi “met with Chinese President Xi Jinping in what both sides said affirmed bilateral ties,” a growing “rift” has emerged that “could cost both countries.” The pain is already being felt in Japan, where lost tourism during the remainder of the year could deal an economic blow of between $500 million and $1.2 billion, while China is likely to share in the pain if “the dispute drags out.”
Tags: $1.2 billion, Affirmed, Bilateral ties, China, Cost, Dispute, Economic blow, Pain, Rift, Takaichi, Tourism, Xi
Reuters (November 16)
“China’s factory output and retail sales grew at their weakest pace in over a year in October, piling pressure on policymakers to revamp the $19 trillion export-driven economy as mounting supply and demand strains threaten to further curtail growth.” Officials may be running out of options to keep “the world’s second-largest economy humming…. even an economy of China’s size can only squeeze so much growth from building more industrial parks, power substations and dams.”
Tags: China, Dams, Demand, Economy, Export-driven, Factory output, Industrial parks, October, Officials, Policymakers, Retail sales, Substations, Supply, Weakest
The Guardian (November 15)
The Guardian and Carbon Brief found that “just a fifth of funds to fight global heating” actually “went to the world’s 44 poorest countries, known as the least developed countries (LDCs).” In contrast, “China and wealthy petrostates… are among countries receiving large sums of climate finance.” For example, the “UAE, a fossil fuel exporter with a GDP per capita on a par with France and Canada, received more than $1bn in loans from Japan that were logged as climate finance” while “Saudi Arabia, which is one of the top 10 carbon emitters…received about $328m in Japanese loans.”
Tags: $1bn, 44 LDCs, Canada, Carbon Brief, China, Climate finance Fossil fuel, Exporter, France, GDP, Global heating, Guardian, Japan, Loans, Saudi Arabia, UAE, Wealthy petrostates
Barron’s (October 31)
“A U.S.-China summit in South Korea did just enough, even if it didn’t fix everything that has kept the two sides at odds.” It has “put markets at ease,” at least for a while. “The de-escalation appeared to be more a win for China than for the U.S., but also took a worst-case scenario off the table for markets.”
Tags: At ease, China, De-escalation, Fix, Fragile, Markets, South Korea, Summit, Temporary, Trade truce, U.S., Win, Worst-case scenario
Bloomberg (October 30)
“The one-year truce struck on Thursday in South Korea is likely to only stabilize relations between the world’s two largest economies rather than resolve fundamental differences, with both sides buying time to further reduce dependence on each other in strategic areas. And it made clear just how much stronger China has become since Trump’s first term in office.”
Tags: Buying time, China, Dependence, First term, Fundamental differences, Resolve, South Korea, Stabilize, Strategic areas, Stronger, Truce, Trump
Bloomberg (October 22)
“Six months into Donald Trump’s trade war, the resilience of Chinese exports is proving just how essential many of its products remain even after US levies of 55%.” The weaknesses of Trump’s tariffs are becoming clear. They “appear somewhat limited in their ability to control what American firms import, as China’s sway over sectors such as rare earths and electronics makes its products hard to dislodge.” On top of that, loopholes play a factor. “American importers are able to pay a lower levy by declaring the customs value of goods based on their first sale in a third country, and then raising the price when the items reach a US port. Transhipping via Mexico or Vietnam means some firms are likely not paying the full tax.”
Tags: China, Customs value, Dislodge, Electronics, Essential, Exports, Importers, Loopholes, Mexico, Price, Products, Rare earths, Resilience, Tariffs, Trade war, Transhipping, Trump, U.S., Vietnam
New York Times (October 16)
China is trying “to beat U.S. at its own game” by imposing rare earth restrictions. “Beijing’s latest effort to weaponize global supply chains is modeled on the American technology controls that it has long criticized.” This new thrust was in some way catalyzed by “Mr. Trump’s aggressive actions — including new fees for Chinese-owned ships that dock at U.S. ports.” Some analysts believe that “with its dominance over the production of these rare earth minerals and its control of other strategic industries, China may have an even greater ability than the United States to weaponize supply chains.”
Tags: Aggressive actions, Analysts, Beat, China, Dominance, Fees, Imposing, Ports, Rare earth, Restrictions, Ships, Supply chains, Technology controls, Trump, U.S., Weaponize
The Ecoomist (October 13)
Politicians, economists, investors and others have long argued whether China’s economy is “a bubble waiting to burst” or “a sustainable success.” The argument is shifting, however, as “a new debate is now emerging, which is potentially far nastier. Much of the world falls into one camp: admiring China’s accomplishments, but also reeling from a deluge of Chinese exports. In the other camp is China, utterly convinced of the rightness of its economic model.”
Tags: Accomplishments, Admiring, Argument, Bubble, Burst, China, Convinced, Debate, Deluge, Economists, Economy, Emerging, Exports, Investors, Nastier, Politicians, Reeling, Rightness, Success, Sustainable
