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China and Huawei lack the manufacturing capabilities needed to make some of the component parts that go into 5G systems. The U.S. Commerce Department in May restricted chip makers globally who use U.S. technology from supplying semiconductors to Huawei. This means Taiwan's Taiwan Semiconductor Manufacturing Company which uses U.S. technology in manufacturing 5G component parts cannot supply Huawei.

This gives the U.S. and Japan, South Korea to catch up with initiatives of their own to match China's state subsidies model that finances its semiconductor companies and 5G companies. 

U.S. Undersecretary of State Keith Krach says "We've utilized the strengths of semiconductor equipment companies and electronic design software companies to eliminate Huawei's access to the necessary sophisticated chips to build 5G systems and their most sophisticated smartphones." Huawei he says is a security threat to the U.S.

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China is gradually getting back to normal. With few new infections from coronavirus, factories are starting production again, and stores are reopening, people gradually coming outdoors.

For factories there is one problem- as Europe and the U.S. battle the coronavirus and impose their own lockdowns demand has evaporated. Factories are seeing canceled orders and having to operate with smaller number of workers.

All the graphs shown in this report for Beijing traffic congestion, Guangzhou subway rides and property transactions show the curves for 2020 way, way below the curves for 2019.

This also gives some idea of what the road ahead will look like in the U.S. and Europe. That the recovery will take time and patience after a difficult period ahead tackling the coronavirus state by state. Lost jobs, diminished confidence and fallen income will take time to recover.

 

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Auto sales for 2010 are expected to come in at 11.5 million, a significant drop from the 17.5 million in 2000. A better job market expected to push the unemployment rate down a bit to 9.7% from 9.8% in November will help, but not by enough. Credit Suisse analyst Christopher Ceraso says each percentage point that the rate is above normal ( about 5%) keeps sales back by about a million auto sales on an annual basis. To get sales back to a 16 million range this would require an unemployment rate of 6%. Economists expect a better US economy in 2011 but the prospects remain uncertain for 2012, bringing unemployment down to about 8-9% if hiring picks up. The other concerns are high consumer debt and a rise in gasoline prices. If gas prices rise and buyers shift back to smaller vehicles, as they did in 2008, this would squeeze margins and profits. This is especially a concern as automobile companies have increased profits with a larger truck and large size vehicle component of sales, in a reverse shift after the shift to smaller cars in 2008-2009. Ford Motor is one example of this. It helps Ford use the extra profits to reduce its debt load but automakers have to be prepared for a sales shift to smaller cars in the face of higher gas prices....

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The evolution of Mumbai from the British period to the post independence period with trade union movements, was followed by a shift to politics on the basis of getting jobs for local Marathi people in what was once the commercial capital of the British Empire. This kind of politics was led by Mr. Thackeray after 1967. As this report in The Hindu says Mr. Thackerayand the party Shiv Sena highlighted the plight of unemployed Marathi youth  through his party's weekly Marmik. The first government of Mr. Thackeray's party was formed for the state of Maharashtra which includes the city of Bombay by Manohar Joshi in 1995.  Both the trade union movements of Mr. Fernandes in Mumbai and the ethnic politics of Mr. Thackeray failed to provide the development needed for the state of Maharashtra because of the lack of the technology and capital needed and the knowledge of industry needed that could be applied on an American scale, much like the flawed efforts of Mao's politics in the Great Leap Forward, and the Great Proletarian Revolution in the post 1960's period.   ...

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WSJ's Chief Editor Emma Tucker comments on its choices in writing Style in its pages. It is appropriate we comment here on our own choices in Lyrarc.com. We respect the old forms such as Cornell English Professor William Strunk's Elements of Style for its basic emphasis on simplicity. We take from the new to always keep in mind how it sounds as is suggested by Ben Yagoda in Sound on the Page. In actual practice it goes back to our mix of reading influences and the style in each- from Shakespeare, Wordsworth, Conrad, Whitman, Lincoln. We strive for the simplicity and directness of a Walt Whitman or a Abraham Lincoln, while developing a directness of our own drawing from these influences. Inside this are all the other influences- Gandhi's amazing candour adding to directness. There is also in the background individually for this writer the energy of Prof. Kuruvila who helped transform some of the writings in English just described into living spoken words with ideas that held one's imagination.   ...

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Jim Tankersley in the NYT says administration officials point out that president Biden is determined not to repeat the political and economic mistakes of the Obama era. Economists now say that these economic mistakes slowed the recovery from the 2008 financial crisis caused by faulty mortgages of banks and excessive leveraging. Obama cut back on spending on education, on relief for workers and families affected by the financial crisis of 2008, and in investing in education and other public goods. Administration officials also point to polls that show the public increasingly sides with the president on this. "The American people are absolutely right in saying that having the super wealthy and special interests pay their fair share is the right way to cut the deficit," says a communications adviser to the National Economic Council. Huge social gaps opened up in America with these economic mistakes, including the transfer of America's manufacturing base to China, an overconcentration in one country that is only now being reversed under president Biden. Jim Tankersley has covered this loss of opportunity for American workers for over a decade. ...

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Wisdom shared by students on picking a place to study. Ten people look back to reflect on how their college was chosen, their experience at that college, the cost of tuition. Some changed to other schools where they fit in better, others struggled with large tuition bills when the same education could be obtained at state universities with lower tuition fees. You are never stuck says one of them as you can change schools if it is not the right one. Others point out the risk of relying on "the best school", the most "rigorous program," and one engineering student points out that one can get a good engineering education at many less costly or famous schools. The general feeling is find what will be good for you without being overawed by big names, consider cost carefully, one can get a good education at most universities and colleges just find the place where you feel valued as a person and which fits in with your sentiments and mental makeup. The rest is effort studying and concentration which is entirely upto you.  ...

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NYT columnist David Brooks says Biden will be judged in the long run by what he has done to bring the two parts of America together that have drifted apart -one educated, affluent, city based and the other less educated, poorer, living in smaller towns and rural areas. One from the professional classes, and college educated that benefited from the tech boom, the other from working classes that felt the brunt of the shift of jobs to China. Biden is old enough to remember his emotional mentor Franklin Delano Roosevelt who faced a similar split America with farmers in small towns and workers who lost jobs in the Depression on one side and the smaller affluent classes of professional workers, small business owners in the earlier tech boom of the 1920's. Biden's father experienced unemployment and had experiences as a blue collar worker in Pennsylvania after business failures. It is an experience that has shaped Biden's views on America and the need to bring back hope after the pandemic that followed decades of neglect of working class Americans.   ...

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Viewing people as "pass throughs for units of fiscal stimulus" that is no longer an option, no longer wise, no longer possible. Brian Deese, US president Biden's economic adviser, uses this sentence as he describes the approach of president Biden in putting together a $2 trillion plan to invest in infrastructure and in the people of America. He compares 2009 to 2021 and talks about the differences then and now after the pandemic. The coronavirus pandemic exposed all the weak spots in the American fabric and society and in the way national life was organized. Today the pain is felt in socio economic groups throughout the country.    US president Biden wants to make a decisive impact with large investments in infrastructure, education, health and jobs. In American manufacturing competitiveness and in America's technological advancement. The investments made in 2009 were in simple recovery mode, this time the investments are intended to bring America back to its position in the world after 1945, the hope and the optimism for a better future. ...

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Living longer and healthier lives the sixty year old of today may look like a 40 year old. Working years may now be much longer say experts. Instead of 30 years, it could be 40 or 50 years. People may need to engage with meaningful work longer to have the stimulation that comes from work that interests them. The work may even be broken up in increments of 20 years, each devoted to different areas of interest. Experts say the friendship and stimulation from work is better than that in bingo halls, beaches or on a golf cart. Working part time or going back to school is in the works. It makes more sense too to accumulate savings longer as the official social security retirement ages are being extended to beyond 66 years. In fact the only age group where labor participation is already growing is in the over 55 years age group. In this sense the struggle to preserve older pension schemes retiring early look more like a thing of the past, even though they arouse passions such as in mass protests in France on this issue. ...

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The simple fact that other countries are subsidizing heavily the early period for building a new industry, as Taiwan has done in semiconductors, China in solar panels, and European governments in other industries, had serious industrial implications that were ignored for too long. US president Biden is following the same approach to bring back American leadership in manufacturing of semiconductors - supporting and nurturing American manufacturing. The unavoidable fact is that tens of billions of dollars are needed in risky bets on semiconductor manufacturing that is feasible only with the help and cooperation of governments. The choice is do this or lose leadership in one sector after another autos, semiconductors, renewable energy, and so on. What many fail to understand is that loss of this leadership leads inevitably to dependence, and loss of national sovereignty or economic security in some form or other. The path to leadership comes through gaining a storehouse of knowledge and technologies which makes it harder for new entrants including ones such as the US who have ceded this position of leadership completely as in semiconductors manufacturing. ...

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Decriminalizing hard drugs led to all sorts of problems in Portland Oregon and citizens feeling unsafe with and increase in homelessness and increase in drug activity. Mike Baker talks to Portland Mayor Ted Wheeler about how a Proposition Measure 110 in 2020 decriminalized drugs with three fourths of Portland supporting it. Not anymore as most people still feel unsafe. Governor Gina Kotek has reimposed criminal penalties for possession of drugs. And Wheeler now supports expanding the police force. It is a three year experiment that went wrong also creating a sense that there a personal safety problem for ordinary residents of the city. The lack of behavioural facilities to help people affected added to the problem. This has lessons for all parts of the country, Wheeler also says the politics also went awry. Safe streets, safe neighborhoods is part of the infrastructure that America is building across the country under the Biden administration, safety and ease of living are what infrastructure and rebuilding America is about. And the perception of the need for good law enforcement and safe neighborhoods, safe transportation is now embraced across America. ...

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"Once social change begins it cannot be reversed. You cannot uneducate a person who has learned to read. You cannot humiliate a person who feels pride." The United Farmworkers union was formed by migrant farm workers Cesar Chavez and Dolores Huerta to bring decent wages and good working conditions for farm labour in the US, with most of the work done in California farm areas. March 31st is now Cesar Chavez Day in the US with a Biden proclamation. His niece is shown in the adjoining article as an adviser in the White House and now campaign manager for 2024. She is a softspoken Latina who grew up around Chavez in the fields and farm pickup trucks of the sixties and seventies, as shown in the Washington Post on this page. Biden has proposed an overtime rule for farmworkers, and ensuring farm workers get a fair wage and decent working conditions is the goal of the White House- including recovering $21 million in back pay and wages ensuring 26,000 farm workers get the wages they earned. And remaining steadfast says Biden to ensure workers get paid sick leave, good working conditions. ...

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This report in the NYT says a little known donation raising method used by the Republican National Senatorial Committee may affect Republican chances of taking control of the Senate in the US. The method is considered part of hyper aggressive methods that ask people provocative questions such as "Should Biden resign?" in millions of text messages sent out and asked to reply click YES to Donate, the amount is then processed immediately, says NYT. It was so controversial that WinRed the main Republican donation processing platform banned the practice. It appeared to be working earlier but with the cost of living crisis in 2022 donors are holding back. NYT says the digital ads to get these donations cost more than the donations in some situations. It cost $23.3 million for digital ads and expenses and raised only $6.1 million leading to a $17 million deficit, according to NYT. Senate Minority Leader Mitch McConnell now thinks it could affect chances for the Senate. The NSRC Republican group has $23 million about half what the Democrats have. ...

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German chancellor Olaf Scholz is on his first trip to Africa. He called for serious attention to problems of food and energy supplies, energy prices, in African countries. He visited Niger, Senegal, and this interview with DW.com was done in Johannesburg, South Africa. Scholz called for European countries to assume responsibility for their colonial past and to increase food supplies to Africa. He said "it is obvious that a lot of countries are suffering from this war" with the grain shortages that are hitting Africa hard. In the intervew Scholz tells DW Political Editor Michaela Kufner that he has talked directly with Putin and told him that the war "will never have a good outcome" for Russia. "They will go back in their opportunities of economic development for decades, tey will suffer and they are suffering, and for getting out of this Putin has to stop the war." Scholz said Putin had made the decision to wage " a very brutal war" with "an imperialistic approach" and manner of thinking. ...

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The US is sending the M142 High Mobility Artillery Rocket System to Ukraine to counter Russian artillery and long range rocket attacks in the eastern Donbas region. This is part of a new $700 million 11th military aid package to Ukraine. Germany will provide its IRIS-T system to Ukraine with radar to track Russian artillery, so that entire cities can be protected from Russian artillery attacks. The US has obtained assurances from Mr. Zelensky that the HIMARS US system will only be used on Ukrainian territory and not into Russian territory. Ukraine currently lacks this type of system that reaches for 45 miles for its midrange system, and it is seen as crucial for defending Ukraine, as Ukrainians are being forced back with Russian artillery attacks. Mr. Biden in an article in the New York Times said the US goal was simply to see "a democratic, independent, sovereign Ukraine," not to oust Mr. Putin, or seek a broader conflict with Moscow. Mr. Biden said that this aid will make a diplomatic settlement more likely, as it will strengthen Ukraine's negotiating position. ...

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The Indian Express looks at the migration to European Union countries from Asian countries. Entry points include Serbia in Eastern Europe with tourist history built for entry. Routes that are long and hazardous. The lack of rapid industrialization and development in Asian countries leads to a flow of migrants to the EU and the US. Better management of this flow requires stable and good governance in Asian states and willingness of the EU and the US to share technology and invest in South Asian and South east Asian nations. Reports of Vietnamese or Indian immigrants in cramped spaces hidden in trucks or lorries, shows how the welfarism or handing out of government benefits is not the answer to the need for rapid industrial development and investment in infrastructure needed in South Asia and South East Asia. With accelerated development made possible with business in the EU and the US investing in manufacturing  in this part of the world. This is also part of what is seen as diversification of American and EU investment so that manufacturing is not simply concentrated in one Asian country. ...

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Turkey's inflation rate continues to rise even after a government effort in December to stabilize the economy by stabilizing the lira. Annual inflation jumped from 21% in November to 36% in December, according to the Turkey Statistical Institute. The true inflation rate could be much higher. The ENAGrup estimate after assessing thousands of prices is that true annual inflation is 82%. Ordinary Turks have difficulty affording essential food supplies, says this WSJ report. Turkey has overdependence on the US dollar in its government and bank borrowings which has intensified the impact of the cost increases world wide with the supply chain problems and higher energy prices. Food imports now are much costlier. Depreciation of the lira currency by about 50% added to the impact of the overall global inflation. The lira has come back a bit to 40% loss of value after an unorthodox government plan, yet inflation continues to rise. Deeper problems within the economy that were hidden when the economy was in high growth years are now apparent as the world sees an inflationary surge during the second year of the pandemic. ...

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Stellantis CEO Carlos Tavares is an engineer from Portugal who joined Renault as a test track driver in 1981. In 2014 Fiat merged with Chrysler and in 2021 the PSA Group merged with Fiat creating the Stellantis car company with sales in Europe and the US. As CEO of PSA Group Carlos Tavares headed Stellantis. Tavares has skills in persuading unions in Europe to work with him, and motivates his people with his working style. At Chrysler even with losses from 10% absenteeism he has managed to reach operating profit margin of 16.4%. Stellantis plans investments of $35 billion in EV vehicles by 2025 which means it is putting back profits into investing in the future. Stellantis is today larger than GM or Ford. It has 47,000 employees in the US.  Earlier PSA had acquired lossmaker Opel from GM in 2017. Tavares is known for his careful attention to cost, and he has skills in negotiating with the labor unions in Europe for job cuts to stabilize loss makers.  ...

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The US Fed under Jerome Powell is going to raise interest rates one more time in 2023 following rate increases in 2022- by a quarter percentage point this week. This is not only a fight against inflation but a way to reverse a situation that has affected the wealth and standard of living of ordinary Americans by reducing interest on savings to a paltry less than one percent. Only stock market investors benefitted under the previous regime widening income and wealth disparities in America. Just as today's story in the WSJ showing Bath and Body Works returning to basics such as producing soap in America, something that would not even have been given a second of thought in the 1900's, the Fed is doing its job under Jay Powell of going back to the basics. Where interest on savings provided retirees a comfortable stress free retirement and the inducement to save help build a savings pool in America to invest in what really improves the standard of living for all Americans across this country, from rural to urban, from all parts of the land. ...

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Depleting ground water reserves are leading to water shortages in India's cities. About 40% of India's people lack drinking water by 2030, according to government think tank NITI Aayog 2018 report. Water shortages are hitting cities such as Chennai. This report looks at the water shortage in remote Himalayan region Ladakh. WOrld Resources Institute points out that India is the 13th most water stressed country in the world, with a population three times the combined population of 16 countries that are water stressed. By 2030 water demand will double in India. The government is giving drinking water top priority in its plan for the next 5 years as key to development.  One of the problems is that farmers in the northern plains pay little for gorundwater use resulting in the planting of water intensive crops. The government plans to promote conservation of water as a national priority with education on this subject of water critical to achieving its objective of providing 100%  access to drinking water for Indians. Drip irrigation with minimal water use is also being encouraged to conserve water. ...

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This view in WSJ about Trump the candidate being no different in 2024 than eight years back in 2016, by Gerard Baker, gets 3813 Comments from Readers. It says Trump today in 2024 is no different than in 2016, only then he faced a candidate Hillary Clinton who had spent so much time in endless foreign travel as Secretary of State, that she had lost touch with the American people. In that situation Trump prevailed and that by only 90,000 votes in 3 states. Baker comes to this conclusion by reading carefully and objectively assessing the meaning of the Mar Lago interview that Trump gave last week. He says this time Trump is up against someone who is clearly in touch and and a seasoned politician. One that is able to give voters a chance to project on a clean slate whatever they want to see. This even though Kamala Harris has well known views from her days as Attorney General and Senator. Baker sees Trump lacking a coherent message and failing to provide a vision for the future, simply restating what was said before. ...

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Ann J. Selzer who does the polling for the local Iowan Des Moines Register for three decades says- “It’s hard for anybody to say they saw this coming.” Yet the process does drive results. The only time Democrats did poorly in Iowa with reason was under Hillary Clinton, and it was clear that Obama did not have Tom Vilsack's back. Vilsack the three time popular governor of Iowa was Agriculture Secretary, yet Obama distracted by Silicon Valley did not give the support he needed. Joe Biden as president made Tom Vilsack one of, if not the most important part of his Domestic Agenda, underlining also to all that foreign policy would be driven by domestic agenda, and by domestic is meant in large part long neglected Rural America. Growing up as an adopted child in difficult childhood, Tom Vilack represented the best of Iowa and America in his public service in the state and the entire Great Prairie states that form the heartland of America's breadbasket, and for the world.   ...

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NYT looks at the corruption in city government in Los Angeles. During the turn of the century Tammany Hall was a term used for the organization down to city wards that controlled city government and under city bosses led to much corruption. Rapid real estate development in the city of Los Angeles with Chinese developers investing in building high rise office and other buildings in the city led to corruption. A large concentration of power, the lack of news coverage from local sources as one of the effects of the internet, surges in real estate growth, have led to reduced attention to the effects of corruption in the city of Los Angeles and in the state of California. Jose Huizar on the City council and Raymond Chang deputy mayor are shown here in this NYT report to be convicted of racketeering charges.  Over a decade 576 public officials in California have been convicted on federal corruption charges, according to Justice Department reports, says the NYT. This is more than the number of cases in states better known for public corruption, including New York, New Jersey and Illinois. ...