3 China Articles

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.


As noted yesterday, if China did start shipping military hardware to Russia, what could the west do? Beyond the impact on western “JC” investment in China, embargoes would put western supply chains back where they were in 2020, when China was shut down.


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Blocking China’s access to the most sophisticated chips and manufacturing equipment/technology is likely to cause China to develop their own technology. It may very well be Chinese copies of what they have learned by dipping into company cyberfiles.

Meanwhile they can probably acquire anything they want for a price. Of course the Dutch equipment that arrives in multiple airplane loads might be a little tricky. But who knows. Maybe it will fit in shipping containers on ships.

The ban merely delays China’s technology efforts a bit. Its foolhardy to think they have been blocked.

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China is being blocked by something else. The sanctions are just a good shove as they should be. China is no longer exporting deflationary forces. Their edge in economics is diminishing and will continue to diminish. Even producing chips will slump over the decades…how do I know this? Ask the US. We had supply side economics.

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And of course this happened in Japan. After World War II, made in Japan was mostly dime store junk. But they worked their way up the food chain and also trained their work force to do more difficult work. As this occurred, workers demanded more pay.

I visited Japan twice in the '80s. The second time, pay in Japan was so high that Japanese companies were starting to have their products made elsewhere in Asia.

Over time this will probably happen in China too. It is good in that it raises the standard of living for the typical citizen. But China has a much larger population to deal with. It might take a while. A decade or two. What do the figures say about Japan? 30 years is my guess.


I am not sure what you are saying or asking?

Part of being a bot… :rofl: :rofl: :rofl:

@tjscott0 -

Thanks for these links. I’ll admit up front I did not read each one fully. However, I get the gist for sure.

It’s appropriate to raise these issues here on the METaR board as I believe the current global tensions will start to impact the general public globally and the global economy as a whole. The events that you and I (and everyone else) are hearing about are occurring all simultaneously at internet speed and scope of communication. I believe human nature, being what it is, will be a factor in these, what are small skirmishes today (with sanctions, tariffs, tanks, artillery, surface to air missiles) but can quickly escalate to unreasonable actions (bigger, ugly stuff) taken by either side. Especially if China starts to throw around some of their global influence as well, such as messing with Taiwan.

I’m positioned very defensively, and have been for a while, as I am risk adverse. I just want to share that I am even more concerned as the days go by. Let’s hope we make it to Christmas 2023 without some really messy event occurring. That would be really bad for the markets.

It sure seems like a mess out there - on many fronts.

> Those are my thoughts for a Friday night after going out for Chinese food.


Yes, those bot replies can be frustrating.

Are figures available on how long it took Japan to move from primitive after war economy to expensive manpower costs? My guess is 30 years.


It sounds like we are entering a “new world order” - Trade Wars in Space.

When Japan fixed the rusting out problem in Hondas they were welcome in the big leagues.

Yahoo news housing prices had their worst quarter I think it was end of 2022 since 2008.

I have previously thought housing was not going to be a problem…but right now that is like the Titanic scraping by an iceberg. Who knows?

Adding, I began a thread on the Barbara Corcoran interview. The article encompasses a discussion on housing prices.

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Meanwhile Toll Brothers and Lenar home builder stocks continue to do well.

I don’t understand.

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The ‘Japanese miracle’ (post-war recovery) peaked in 1989. At that point about 5% of their industrial production was overseas. Since then it has risen to 25%.