U.S. Department of Commerce’s Post

'European and U.S. firms are increasingly siloing production in China as a way to reduce exposure to political risks, including the potential of import tariffs, outbound investment screening, new regulations, and other economic sanctions. For example, following the economic turmoil of the COVID-19 pandemic, BMW invested substantial sums to insulate and isolate its production in China. In February 2022, BMW increased its ownership share in the joint venture it had with Brilliance China Automotive Holdings from 50 percent to 75 percent. Four months later, BMW-Brilliance opened a $2.2 billion vehicle assembly plant in Shenyang, China, specializing in the production of EVs. To support its China-based EV production, BMW invested $1.4 billion to expand its EV battery plant, also located in Shenyang. At the same time, the firm announced plans to manufacture its Neue Klasse EVs in China for the Chinese market using electric batteries produced in the newly expanded Shenyang plant by 2026. These investments increased BMW’s reach into the Chinese market while decreasing its dependency on external suppliers and its exposure to tariffs.'

💥 US ban on China escalated? The US government reportedly urges allies to halt domestic companies from servicing specific chip-making tools for Chinese clients! ⚠️ This move could imply additional constraints on non-essential components that Chinese firms can handle alone, impacting allies like the Netherlands, Germany, South Korea, and Japan. 💡 Explore more on the rumored restriction escalation here: https://buff.ly/3IXUZUw 🔗 #US #China #Sanction

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🔴🇺🇸🇨🇳 (Part 5 of 5) Yellen’s Mission in Beijing Apr 09, 2024 Warwick Powell Adjunct Professor, Queensland University of Technology, Senior Fellow, Beijing Taihe Institute The evidence simply does not support Yellen’s propositions. That’s one of the reasons why they won’t fly. 🔶Her argument is that Chinese output and exports are distortionary. 🔸If by distortionary she means ‘driving down prices’, then I guess she’s right. 🔸The issue is thus distributional. Incumbent legacy motor vehicle manufacturers will be impacted. That’s what competition does. 🔸Unsurprisingly, and perhaps not so coincidentally, as the U.S. becomes the most vocal critic of Chinese EVs, 🔸let it not be forgotten that the U.S. is also the world’s single largest producer of crude oil. 🔶If you’ve no incumbent motor vehicle manufacturing capacity, 🔸then lower costs to support electrification is a desirable outcome. 🔶Detroit-based manufacturers are no doubt at the forefront of Yellen’s mind, 🔸but that means much less to households and enterprises in developing countries seeking to 🔸reduce costs, 🔸electrify for green development 🔸and increase energy sovereignty. Chinese EV manufacturers are investing in factories in other parts of the world to service markets. They are already establishing factories in Hungary, Vietnam, Thailand, Malaysia, Mexico and Brazil. 🔶If the U.S. was concerned about ‘cheap imports’, 🔸Yellen may have been better advised to take a leaf out of Italian Prime Minister Georgia Meloni’s book and reach out to Chinese car makers to invite them to set up shop in the U.S.. ❇️🇺🇸🇨🇳 (Part 1 of 5) Yellen’s Mission in Beijing Apr 09, 2024 Warwick Powell 🌐 https://lnkd.in/gUvxTw8P ❇️ APPENDICES 🔶🌐 .

Video of the day from Productronica - As the electronics supply chain realigns, this panel will discuss the EU Chips Act and it’s ability to meet the industry’s supply chain needs. https://lnkd.in/eEEwGGqp

Some tips to help you and your businesses to maximize tax saving and minimize tax exposure shared with BFM.

A Trump victory could force Japanese businesses to rethink their entire production network due to potential increases in tariffs, changes in trade agreements, and regulatory shifts. Many Japanese companies, including automakers like Toyota, Honda, Nissan, Mazda, Suzuki Motor, and their affiliates, as well as technology companies such as Sony, Panasonic, and Canon, have already established manufacturing sites in Mexico, where costs are lower than in the US, to lessen these effects. Regarding semiconductors, tighter US restrictions on China could deal a significant setback to Japanese companies that supply semiconductor manufacturing equipment to China. #supplychain #Japan #China #geoeconomics #semiconductors #Trump #internationalrelations #geopolitics #globalaffairs #economy https://lnkd.in/ewuaZyYd