The project, code-named ‘GW’, would provide internet services and could be used to spy on rival networks and carry out anti-Starlink missions, paper says
One major Beijing-based chip equipment firm has “filled several large warehouses” with materials and components, including those not even on the US export control list, one of the people said.
The unusual scale of the orders was partly driven by fears of greater export restrictions down the road, even though Tokyo has not officially started the process, the person said.
Sanctions, pandemic disruptions and technological-containment efforts are making international firms think twice about their plans for China
Some companies say the free trade of goods and services feels ‘under assault’, and the ‘troubling’ developments are weighing heavy on business operations
China’s exports to the US have remained relatively steady
Since Russia’s invasion of Ukraine, politicians in the EU have stepped up calls to reduce reliance on China by diversifying supply chains for technologies and critical raw materials while avoiding new vulnerabilities.
“China has been the go-to offshoring hub for European manufacturers for decades, and both sides have benefited significantly from the relationship,” Hansen said. “But in light of the growing geopolitical tensions involving China, manufacturers are becoming more concerned about overreliance in China.”
Joerg Wuttke, president of the EU Chamber of Commerce in China, said it could be very difficult for certain industries – such as chemicals, auto and machinery – to completely move away from China.
“In chemicals, half of the global market is in China; in the car industry, it’s one-third,” Wuttke said. “If you are developing electric-vehicle batteries, you have to be in China. The machinery market in China is as big as Europe, the US and Japan put together.”
Last year, China surpassed Germany to become the world’s second-largest car exporter, trailing only Japan, after mainland exports jumped 54.4 per cent, year on year, to 3.11 million vehicles in 2022, according to the China Association of Automobile Manufacturers (CAAM).
China is South Korea’s biggest trading partner, accounting for 22.8 per cent of South Korea’s total exports in 2022.
South Korea’s biggest semiconductor chip manufacturers, Samsung and SK Hynix, have multiple factories in China, but future production there has become unclear.
The US economic warfare upon China is making multi-national corporations leery about their China operations. But in some industrial sectors-China is the place to be.
