Chinese Economics Thread

A

Andy1974

Senior Member
Registered Member
I find this incredible..

Please, Log in or Register to view URLs content!

Suppliers to Chinese telecom giant Huawei Technologies and China's top chipmaker Semiconductor Manufacturing International Corp (SMIC) obtained billions of dollars' worth of licenses from last November through April to sell them products despite their being listed on a US trade blacklist, the Reuters reported last month. Documents released by Congress reveal that 113 export licenses worth $61 billion were approved for suppliers to ship products to Huawei while another 188 licenses valued at nearly $42 billion were also greenlighted for SMIC during the period.
Click to expand...
So, in 6 months the US licensed for export $103B to 2 Chinese companies they have blacklisted.

This must account for a staggering proportion of US exports to China, considering they are only doing about $10B a month right now. The export figure for 2021 so far is only $105B.

Please, Log in or Register to view URLs content!

So, about ~90% US exports is dependent on Huawei and SMIC. This is mind blowing to me.
 
manqiangrexue

manqiangrexue

Brigadier
Andy1974 said:
I find this incredible..

Please, Log in or Register to view URLs content!


So, in 6 months the US licensed for export $103B to 2 Chinese companies they have blacklisted.

This must account for a staggering proportion of US exports to China, considering they are only doing about $10B a month right now. The export figure for 2021 so far is only $105B.

Please, Log in or Register to view URLs content!

So, about ~90% US exports is dependent on Huawei and SMIC. This is mind blowing to me.
Click to expand...
I think most of the licensed amount had yet to be or will not be ordered by Huawei. They are simply a high quota number not to be breached without further licensing. Huawei/SMIC are definitely not 90% of US exports to China.
 
A

Andy1974

Senior Member
Registered Member
Crang said:
Please, Log in or Register to view URLs content!

If covid continues another one year, perhaps there will be some degree of deglobalization of supply chains
Click to expand...
Yes, though even if Covid disappears tomorrow most of the port situation problems in the USA are still going to exist.

Money was allocated in the infrastructure bill just passed to improve ports, but as i could see it’s mostly for deepening harbors etc. I didnt see anything about new ports or making fully automated terminals, both things China can do easily.

If China really wants to stem the flow of low value, short supply chain goods such as clothes and shoes if can build fully automated terminals in Mexico and Canada.

Another thing to consider is who is:

- Building these new factories?
- Supplying them with equipment, and raw materials?
- Financing them?
- Transporting the finished products?, and on who’s infrastructure?

In a lot of cases, it’s probably Chinese companies, because I assume they want to build 5G, automated, smart factories?
 
FairAndUnbiased

FairAndUnbiased

Brigadier
Registered Member
siegecrossbow said:
Yes, you get to move a lot of human labor around the country. With HSR professionals can potentially work in Shanghai without having to deal with the exorbitant housing costs.
Click to expand...
Not just that. Opens up regular rail capacity for dedicated freight lines, moves people and light parcels around very quickly and efficiently to facilitate long term labor mobility, boosts tourism, decreases cost of imported fossil fuels, decreases cost of purchasing foreign capital equipment, etc.
 
O

Overbom

Brigadier
Registered Member
Andy1974 said:
Money was allocated in the infrastructure bill just passed to improve ports, but as i could see it’s mostly for deepening harbors etc. I didnt see anything about new ports or making fully automated terminals,
Click to expand...
The ports have politically powerfull unions. No way Biden is touching this political minefield. His approval ratings are already low

Andy1974 said:
If China really wants to stem the flow of low value, short supply chain goods such as clothes and shoes if can build fully automated terminals in Mexico and Canada.
Click to expand...
Eventually these low value industries should leave China or get automated. They take up a lot of labour which could be used in more value-added industries. Building automated terminals is a long term solution. US needs immediate relief from this problem
 
You must log in or register to reply here.
Top