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WSJ Original article ›
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Apple relies on Chinese suppliers for about 90% of its products. So reliant is Apple on China that it is slow to make changes to adapt to president Biden's policies for a new US Asian Economic Framework that builds new supply chains. By contrast Samsung has largely stayed out of China using supply chain manufacturing in Vietnam and other countries. India and Vietnam are major alternatives and only India can offer the well trained workforce and supplies of land, labour, incentives and facilities that China offers. This makes Apple a laggard in the changes that are happening today to supply chains bringing manufacturing closer to home and making products in countries allied to the US in Asia. This includes South Korea, Japan, India and Vietnam as production hubs for parts and assembly of advanced technology products. Apple is only now beginning the task of building supply chains outside China and returning manufacturing to the US which will bring back US technological leadership by 2030, American policy set by president Biden. ...
WSJ Original article ›
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Much of what is written here about Xi Jinping pursuing Chinese socialist vision was known since he became president in 2013 when China's Communist party was losing its appeal, and efforts were made to seize power within the communist party by a leader in the western province of Chongqing. Bo Xi Lai attempted to take advantage of the situation with appeals to the working class and without any genuine commitment beyond a power grab. It was well known that Xi Jinping is a son of one of the veterans of the Communist party under Mao, Xi Zhongxun, unlike leaders who followed premier Deng Xiaoping such as Jiang Zemin. Zemin was a relatively unknown figure who was in university during the crucial period of 1947-49 when Mao came to power in mainland China. It would not be correct to say that little was known about Xi's own ideas about socialism as the long term answer to China's problems. Xi also came in as president at a time when the Communist party was losing its appeal to working class people after three administrations that followed premier Den Xiaoping. These three administrations followed a form of state capitalism that allowed companies to pollute the environment, compete without any regulations, and allowed to operate without any controls as long as they pursued growth aggressively and expanded the economy.There was an effort by Communist party regional leader in western Chinese province of Chongqing, Bo Xi Lai, to use this as an opportunity to grab power in China. During his first year as president Xi had to resolve this issue by having a court trial after revelations of corruption and misuse of power by Bo Xi Lai.  Xi's father Zhongxun's role in the revolutionary movement offers clues to Xi's own convictions and faith in the party. Zhongxun was a communist soldier who set up the revolutionary base areas in Shanxi-Gansu northwest border region of China that provided a refuge for Mao's army following the Long March. Other clues come from Zhongxun's role as head of propaganda during the period after 1944 and in 1952. Xi's family background particularly on his mother's side shows a fervent commitment to Chinese socialist vision during the chaotic years when the Japanese invaded China and Chiang Kai-Shek's nationalist forces failed to defend China's sovereignty. One reason Xi has been less understood is that little attention is paid to Xi's mother, Qi Xin who was highly educated and fervently believed in Chinese socialism and nationalist spirit during the Japanese invasion in 1938. In fact Qi Xin had to leave middle school after the Japanese took over Beijing. She joined the Counter Japanese Political and Military University to continue education and in 1941 attended the Central Party school. She met Xi's father Zhongxun in 1944. In 1953 she enrolled in the Marx School of Communism, and it was her position at the school that offered her husband added protection during the Cultural Revolution that affected Deng Xiaoping and others. With such a history in the 1930's, 1940's, and 1950's it is likely that Xi was profoundly influenced by his father's role in the revolutionary movement, and his mother's faith in socialism with national spirit as the way to protect against the foreign invasions. It would now appear that by the time Xi joined the Politburo in 2003 there was no question about the future course China would take given the role of his parents, and the events of 1938 the fall of Beijing, his mother having to flee, and the events that followed. Xi showed resilience during the period of the Great Proletarian Revolution when he was sent to the villages at a time when he would be studying in school and college. He was sent to an agricultural commune in largely rural Shanxi province where he worked as a manual laborer alongside other people and developed a relationship with the local farmers. Unlike other leaders during that period which could even be said about premier Deng Xiaoping in 1989, Xi took a different lesson from this experience largely because his father and mother were committed to the socialist vision for the long run. His father was still not fully rehabilitated by premier Chou en-lai when Xi was allowed to enter Beijing's Tsinghua University in 1975. He studied chemical engineering at Tsinghua graduating in 1979. Upon graduation he worked as a assistant for 3 years to a vice premier who was minister of defense. He then left Beijing for Hebei province to work as a deputy secretary of the provincial CCP. He was made Mayor of Xiamen, then governor of Fujian province in 1999 where he tackled environmental conservation before moving to Zheziang province. His father passed away in 2002 and it would appear that he was carefully trained in different provinces instead of staying in Beijing, for a position of national leadership. Xi got his break in 2007 when the upper leadership of Shanghai city was tainted in a wide ranging pension fund scheme. He was made party secretary for Shanghai. This was the position Jiang Zemin had held before he succeeded premier Deng Xiaoping. In only a few months in October 2007 Xi was made one of the 8 Politburo members, ready to succeed Hu Jintao as president. Xi's perception of being sent to the villages and making it to university education was that it was part of the long run socialist struggle, with pain that his father had also endured as simply a phase in which things would be right in the end. Xi's mother comes across as a resilient figure and one who had herself gone through the struggles of the 1930's and aided her husband on one occasion. Some of this resilience could have been passed on to the son. Xi's wife is a zealous participant in Chinese dance and music performances that created enthusiasm for the Chinese socialist revolution from the 1930's period. In his conversations  with colleagues in the party, in culture and temperament, Xi has been forthright about this background and his style of work.  Xi is unlike premier Deng and the presidents who succeeded him such as Hu Jintao mentored by a former mayor of Shanghai Jiang Zemin who came to power in 1989. Xi is more in line with the leaders around Mao like his father in his outlook and thinking, with a cautious temperament that comes from years going through ups and downs of political struggles. He is once said to have responded with dismay about being in a top position in the government knowing how precarious this had been for his father. The education at Tsinghua, his engineering background, and his easy familiarity with farmers in the provinces, mean that he understands China and its history well enough to have the confidence to shape Chinese policies in a way that none of his predecessors had except Mao, premier Chou-en-lai, Liu Shao Chi and a few veterans from that time in the 1930's. That Xi waited patiently for so long to gradually assert his ideas about socialist vision for China may be the surprising part of his behaviour till 2021.  It may be that he wanted to make the changes only after he could persuade party leaders and colleagues of his vision and long run goals. And because the Chinese economy had grown so large that it would take time to steer the ship in a different direction for the long term. In most of the negotiations with president Trump he cautiously let trade negotiators handle the situation, all the time learning about how to tackle problems of China's relationship with US and Europe. US president Biden also has a vision that is veering towards a socialist perspective in terms of bringing gains of progress to workers and families. So does Mr. Trump, Mr. Boris Johnson in UK, and Social Democrat's Scholz in Germany. It is both economic and political as Mr. Xi is quoted as saying in this WSJ report. The necessities of such action are both economic, social and politically driven as capitalism has veered way off course.  In this report it is mentioned that Soho China 40% stake was taken by a large capital markets firm in New York in the hope of large gains, as Soho China developer was a tycoon who wanted to leave China. Seeing it as not favorable to his company following events in Hong Kong. This behaviour of capital markets groups in New York and tech companies in Silicon Valley, driven by profits and not aware of the social and economic problems of working class American families is a problem in the US and in Europe. It is also what has driven so many large tech companies to expand manufacturing operations in China, that hurt US manufacturing capabilities and American workers jobs- an issue raised by president Trump and taken up by president Biden. Biden has already moved to make Intel Corporation change its plans and invest in American manufacturing technologies in a quietly implemented U turn. US president Biden is left with the unenviable job of solving this huge problem during the pandemic. He has also committed to a somewhat socialistic vision with a $3.5 trillion plan for workers and families, as has vice chancellor Scholz in Germany with his own version of programs, after the failures of unregulated forms of capitalism. Scholz goes so far as to say his mission is to show that there is really no such thing as a self-made man, that it is help from society, his fellow citizens, and government, that makes it possible for him to do his work. In a sense the world is shifting away from Reagan forms of capitalism without regulation after seeing disastrous results during the pandemic. Not just China. Some form of government guidance and regulations are now seen as essential in China, the US, UK, Germany and India for a better society and a better, healthier life, and for opportunity for all in each country.   ...
NYTimes.com Original article ›
LyrArc Article Gist
Zelensky is going to Hiroshima to make his own case for support directly to all G7 leaders. The fact that G7 leaders are meeting in Japan also has significance as Japan unlike Europe with NATO faces Russian presence in its northern islands and China in the South China Sea and around Taiwan, North Korea, with only the American defense agreement in any conflict. Japan, Australia and India would want to see a clear end to the conflict in Eastern Europe that also sends a message that the status quo will be preserved on Taiwan and other issues in Asia. 

BBC News Original article ›
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2014 Xi visits Gandhiji's Sabarmati Ashram as is shown in this picture in BBC News and is curious how the weaving is done by hand taking a try at it with prime minister Modi, both sitting on the floor Asian style. In 2020 China advances its troops in a part of Ladakh leading to a clash with Indian forces. What happened? India's resilience in the face of the pandemic and the bright future for its economy, greater integration with the American and European Union economies in its draft plan to 2030. A sense in China's leadership that India's modernization would follow in the same way that China's and South Korea's have followed Japan's modernization. A sense also that better relations with the US and the European Union would require better relations with India, as an indispensable condition. A sense also that the issue of Taiwan was a bigger issue and a core interest for China than the border disputes in the remote regions of the Himalayas. It just did not make sense to have a conflict with India in the priorities of China to 2030 or 2040. That India needed to be seen not through the lens of the British but as an ancient nation that had similarities with China and Japan from its Buddhist roots. ...
WSJ Original article ›
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Strict enforcement actions taken by the US to enforce sweeping restrictions on the export of technology and industrial goods to Russia ,and any foreign countries who seek to help circumvent the action taken to undemine the Russian defense and technology industries. Airlines in Russia, Aeroflot, Azur Air, and UTair are denied access to US made parts or to receive services anywhere in the world including refueling. The actions would apply to China and other countries if they circumvent controls. The controls are enforced through coordination with US allies and partners that monitor for compliance.

WSJ Original article ›
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The new national security law put forward for Hong Kong in China gives key powers to Beijing to enforce national security In Hong Kong. A dedicated national security office will be setup in Hong Kong to make assessments, advise and supervise local authorites. This is seen as a move to unravel the legal autonomy Hong Kong had under earlier agreements with the UK that resulted in the transfer to China.

WSJ Original article ›
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US and China agree on the first step to a broader trade deal. US offers to take in Chinese students at American Universities, something DJT says he was good with.  “Chinese students using our college and universities,” adding that such attendance has “always been good with me.”  China for its part will not slow move export of magnets and rare earth minerals on which it has established a near monopoly of the supplies. These rare earth minerals are needed for technology products made in the US. US tariffs of 55% will still say in place as "deterrance" that the other side keeps its promises and to cut the trade deficit with China not simply talk about it has has happened for a decade of Bush, Obama, Biden. Treasury Secretary Bessent and Jamieson Greer US Trade Representative were at London talks with Commerce Secretary Howard Luttnick to find ways to get an impasse resolved. Both sides lack confidence in what the other is doing so that theis the first step to clarify the direction of talks for achieving a broader deal.  ...
BBC News Original article ›
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US Russia relations improve in 2025. The new national security document of US put out by the DJT Administration says that Russia is not a threat.  It sticks to migration and western identities when facing civilizational erasure over next two decades as key threats to the US. It poses questions for the European Union, Germany and France, yet also offers away out of the "mess" in Ukraine with the Russians saying NATO was too close to their borders as the real issue, and the US not aligning itself with NATO reducing big power tensions including nuclear arsenal expansion. Germany rebuilding the Bundeswehr and it's military offers a rebalancing of the military situation yet is not the long term solution to the Ukraine problem, NATO limiting it's role and the US limiting it's role in NATO offers a solution that preserves the long term interests of Western Europe(Germany, France, Italy, UK, Spain) and preserves world peace and dialogue. It also promotes integration of India and Russia into the world trade and world economy as it diversifies from the dominance of China in world trade and the world economy of the last 20 years of free trade that deindustrialized US and Europe. What this national security document does not say is that China's dominance in world trade and the errors of the US, Europe, Japan, Russia, India in world trading relationships and their economic approach that made this possible is the central issue and calls for diversification of supply channels in the world economy. This shifts the direction of the world in a peaceful direction where the US, Japan and Europe, India can compete in economic growth and trade with China on equal terms. ...
WSJ Original article ›
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The European Union plans to rebuild its solar panel industry by manufacturing in the home country. This means shifting away from supply channels where China controls 80% of production. Chancellor Merkel failed to see the risks of letting German companies be decimated by China's subsidy program supporting solar panel makers in China. A system of customs duties failed when China threatened to retaliate with duties on German car exports. In the end Germany like the US under president Obama and Trump after 2010 failed to support domestic solar panel makers.  Now subsidies are accepted way of competing with China for both the US and the EU. The US under the Biden administration is fully committed to compete with China by developing its own solar panel manufacturing industry with the kind of help China is giving to its own solar panel makers. The EU is following the same path. From 200 gigawatts in 2023 the EU's target is 600 gigawatts from solar by 2030. The 400 gigawatts will come from through a policy of make at home in the EU, including raw materials, polysilicon, wafers, and assembly. Subsidies are now the way the US and the EU plan to get back what they lost to China, their critical manufacturing advantage through errors in policy. The European Commission is also changing the rules to accomodate the move. A story of one more critical advantage surrendered through the orthodoxy of free markets without policymakers understanding what they were doing. ...
NYTimes.com Original article ›
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Over the next 20 years China will need 6500 737 Max single aisle planes and 1500 Dreamliners, Boeing says. China will make up 20% of world demand. The US visit of Xi Jinping and the major efforts for good relations of president Biden through vigorous diplomacy by Blinken, Yellen and others gives Boeing an opportunity to meet this demand.

Detroit News Original article ›
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The new Ford Focus being unveiled at the Detroit Auto Show in 2009, is a new kind of car for Ford. This is a new kind of effort, a new discipline that Ford CEO Mullaly has advocated from the beginning. Making one car for all markets worldwide. Early on Mullaly told Ford's chairman Bill Ford that Boeing did not have a 737 for Europe and a 737 for the US and a 737 for Asia, why was Ford building a Focus for Europe and a Focus for the USA. In fact before Mullaly the Focus for the USA was a stripped down version of the European Focus and did not make much of an impression. The new Focus will have 80% common parts and 75% of parts from the same suppliers worldwide, so that a Focus made in Germany and the USA will share the same parts as a Focus made in Russia and a Focus made in China. And all of these plants will go into production at about the same time with the new Focus. To accomplish this transformation of Ford for "One Ford" worldwide, which is also on every business card carried by Ford managers, Mullaly appointed Derrick Kuzak as head of global manufacturing. See link for Derrick Kuzak. And the strategy was announced in mid-2008 with the start of retooling of truck factories in Mexico, Kentucky and Michigan, to make small cars designed in Europe for global markets. The task of coming up with one design for a global car was given to Martin Smith, a British designer based in Cologne, Germany. Smith says tastes are converging worldwide with the internet use, and customers are more unified than one would think, and whats emerging is a new kind of global cool if one looks for it. This is what happened when Focus protypes were shown to consumer panels in Europe, the USA and Asia, with a good impression created in all 3 markets. Aligning the US and European tastes was easier, China was a bit harder and the yellow leather interior popular in Shanghai had to be crossed out. Another challenge that had to be met in adisciplined manner was the varying safety rules and emissions around the world. For example European designers liked to have the windshield further forward, and Ford's global small car chief had to tell his engineers to move it back to meet US crumple zone standards. Similiar challenges had to be met in purchasing by global purchasing chief, Tony Brown, with a massive coordination effort needed to be done globally. And plastic trim from Michigan has to fit perfectly with sheet metal stamped in Michigan, and Ford used a virtual manufacturing system that allows the car to be built in cyberspace, and the bugs taken out at that early virtual build stage. The entire change is part of a metamorphosis at Ford, a change of culture and mastering a new discipline in coordinated effort worldwide for "One Ford." One year ago the Wayne Truck plant here in Detroit made the Navigator and the Expedition large vehicles.. With a $550 million investment this plant will make the Ford Focus a year from now. ...
New York Times Original article ›
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Easwar Prasad, Cornell University economist, and a former head of the IMF's China division, says the new report by the World Bank and the Development Reform Commission (DRC), is part of an effort by government officials in China to push the agenda for change forward during the transition to a new leadership. This includes Premier Wen. There is pushback from large state enterprises. The DRC and the World Bank had called for a change from the current situation to allow more private sector involvement in the economy, which means restricting the growth of the large state owned companies and letting the private sector operate in more parts of the economy. The alternative is to see growth slowing quickly and -some economists- say suddenly without warning. The role of Zhu Rongji, a former prime minister during the period Jiang Zemin was president, in pushing for changes appropriate to the period, is also cited. The last decade under prime minister Wen Biao is seen as one in which China relentlessly pursued its currrent export led model of development with large state run companies and state run banks dominating the economy. This has made change even harder to achieve because of the pushback to preserve the status quo....
NYTimes.com Original article ›
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The new coronavirus test for antibody detects antibodies Immunoglobulin G and M. It is designed for people with symptoms and is a quick test used in China, and to be deployed in Britain. The FDA approved the first antibody test for coronavirus developed by Cellex. Immunoglobulin M is made a few days after infection. Immunoglobulin G is made later and is designed by nature in the human body to neutralize the invading virus. The test gives a positive or negative answer whether these antibodies are present to overcome the virus. Unlike the swab test for the nose this test takes only a pin prick and is quick with quick results. For asymptomatic people the swab test is needed as it detects the material in the nose which carries the virus itself.

NYTimes.com Original article ›
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US trade deficit of $46 billion with India and DJT call to buy oil and gas from the US, to shift away from purchases of $50 billion of oil from Russia, of 2 million barrels a day. India only imported $1 billion of oil from Russia in 2020 and this is a call from the US to India to stop financing Russia's increasing air attacks on Ukraine in August 2025. For India this oil came at $70 a barrel when prices were around $90-$100 a barrel in 2022-2024. In 2025 oil prices are at $60 a barrel, and even if prices increase to $70 a barrel India can make the shift. US and Germany, the EU, Britain which seek negotiated end to the war in Ukraine will continue to pressure India in 2025. Russia could shift some of the oil to other places but the huge demand from a country India's size will not then be seen as a factor in prolonging the war. India needs to think ahead for the next 20 years and its goal of modernization by 2047 like China has done in 2000-2020. And not get into a nationalistic mode that may not be in the best interests of the Indian people seeing that this may serve the interests of all nations including Russia to phase out this European war. ...
WSJ Original article ›
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China improves relations with South Korea after protesting a decision to install anti-missile system THADD made by South Korea. In a meeting in Beijing, South Korea's president Moon and China's president Xi affirmed their commitment to a denuclearized Korean peninsula, agreeing that a repeat of the 1950-53 Korean war cannot be tolerated. The effort is part of a move to restore normal economic relations after economic retaliation by China on the issue of THADD system to deter North Korea. Mr. Moon was accompanied by 200 South Korean executives, the largest trade delegation ever sent overseas by South Korea.

WSJ Original article ›
LyrArc Article Gist
Current responses to China's different posture in international relations obscure the huge investments made by US and European Union business in China that lead to about $1 trillion in exports from China to US and EU in 2021. This could not happen without the hyper investment in China by business in the US and EU that not only neglected manufacturing technologies in the home country but did this on a immense scale that would end up shipping almost the whole of the manufacturing supply chains to China from the US and EU. Done as a carefully planned shift of some manufacturing operations it could have benefitted both China and the US and EU. In what way was this hyper move in pace and scale damaging? China's water, air and land was contaminated at a rapid pace never before seen in history, seen as early as 2005. And the hyper shift by 2015 and in 2020 is now showing the severe effects of climate change with droughts, floods and fires all over the world. The German Environment Ministry today counts the cost at 90 times in the use of coal and fossil fuels over time. On the scale that this massive and fast shift was done of manufacturing to China even more so- a hugely imprudent response of US and EU business management and executives. Instead of tackling and confronting head on the challenging problems of quality control and cost in the 1990's through 2000 and beyond at home, management at Apple and other companies simply shifted all manufacturing to China. The other ill effect of the imprudent response of American business was in the massive and wholesale shift of supply chain to China by offshoring practically the entire manufacturing base. It was to lead to the massive losses that workers, families  and communities in the US and EU that countries could not cope with as it moved on an accelerated hyper level and pace. The result was to lead to intense criticism of China and a level of rancor that has poisoned the relations with China. Some of this counsel to China was given to leaders of the Communist party who had little knowledge of American capitalism operating within constraints of social democracy in 1990. Some of that counsel was self interested given by investment banks to Chinese officials- investment bankers that have now disappeared from view- who themselves lacked an understanding of the social constraints of American and European democracies. It is that rancor that is now leading to China and the US disconnecting the supply chains leading to questions one is certain within China about how this will affect unemployment in China in the years to come. The pandemic simply accelerated this realization on both sides of this untenable situation. Still a trillion dollars in exports are taking place even as the political situation is now totally adrift -as the situation in Taiwan in August 2022 shows- the political and trading relationships at opposite ends and seemingly at war with each other. ...
New York Times Original article ›
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In a speech to 3000 party officials Xi Jinping says it is the "central and united leadership of the party that made possible this historic transition." He was speaking at the 40th anniversary of the Deng reforms to open up China's economy. He said China was right to have "lofty aspirations." Yet he said China "would not sacrifice the interests of other countries," while preserving its own interests. The speech comes as China is trying to find a way out of the trade tensions with the U.S. through negotiations. The U.S. sees China in the same way that it saw Japan's rise as an industrial power in the 1980's. and seeks to preserve U.S. economic strength and balanced trade relations that give no unfair advantages to Asian competitors. The U.S. negotiating team is led by the same negotiator who led the team that negotiated for the Reagan administration with Japan-Robert Lighthizer.

WSJ Original article ›
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This WSJ Exclusive report shows the lives of Afghan officials in large residences in Florida, California, and the Emirates after they fled the Taliban takeover of Afghanistan. Mr. Ashraf Ghani who headed the government fled the country early with the help of Turkey says this report in the WSJ, leading to the collapse of Kabul. The US sacrificed many lives and trillions of dollars to support different regimes in Afghanistan under presidents Bush and Obama. It was only under the Trump and Biden administrations that the US conducted a swift and complete withdrawal. Mr. Trump made the issue of wasted billions of dollars in the war a major issue of his campaign, in addition to the issue of technology and capital going to China with offshore movement of American manufacturing. The pandemic has made the job of returning American manufacturing to America and investment in infrastructure, ease of living, good healthcare and education, even more critical for America and the American people. ...
https://www.hindustantimes.com/ Original article ›
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This analysis of coal use using graphs shows a clear move away from coal in the world, except for two growth markets China and India which account for 60% of the increase in coal use since 2008. India has gone black in its shift to increasing use of coal. China has begun the shift away from coal to address the smog over large urban areas, poor air quality and health impact of coal use. Because China used five times the coal used by India in 2017, the overall impact in China and India is showing a shift away from coal to hydropower, other renewables including solar energy. It is likely that India will make the shift following China's example in the future. 

The trend is clear when one looks at the incremental terawatt hour and where it comes from. The shift is clear to renewables, hydropower, and non fossil uses in the rest of the World and China which account for most of the coal use in the world.

 

WSJ Original article ›
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This WSJ report looks at the work of Alexei Miller as head of Gazprom which supplies Russian natural gas through the Nordstream pipeline to Europe. Mr. Miller is shown to have put too much reliance on the European market which is now shrinking with the European decision to cut dependence on Russian gas. compared to alternative markets in China Russia has invested too little in pipelines to other regions in Asia. He has also not invested in LNG which could be shipped to China and other countries leaving Russia too dependent on pipelines that run mostly to Europe such as Nordstream 1 and 2.  Russia was sending 160 billion cubic metres of natural gas to Europe and only 11 billion cubic metres to China in 2021. A major shift requires much new infrastructure. Miller also did not grasp how shale oil and gas would boom in the US. Mr. Miller started as a 39 year old economics PhD in 2001 when Putin made him head of Gazprom. Both had worked together in St Petersburg local government, and Miller was Deputy Energy Minister for 1 year, briefly head of a pipeline system to the Gulf of Finland. ...
WSJ Original article ›
LyrArc Article Gist
Where did the numbers in the US president DJT's charts come from wjen shown in the Rose Garden on Liberation Day April 2 2025? The number for example 68% for China comes from a ratio- deficit by country divided by total imports to US.  The numerator reflects the US concern about trade deficits. It is exports minus imports for China in this instance. In 2024 China's exports were $438 billion to the US. It's imports were $143 billion. The difference is the surplus or deficit China has with the US. China's surplus is $295 billion. China's surplus is also America's deficit with China when turned around and seen from the viewpoint of America. The denominator reflects the US concern about how much it is importing from each country- this is how much it is not making inside America and which it has to get from another country. The more that it imports from another country the less it makes at home. If labor in the US gets too costly and is not cooperative to make well designed reliable products more factories close and are build outside in another country. This has consequences- serious consequences over time as it spreads to different industries. FOr the first time in history. A foreign nation makes practically everything and US acts only as a consuming nation- this means the workers jobs and incomes in the US are destroyed. It is often a sign of serious decline in the Nation. $295 billion/$438 billion is 67%. This is the China number shown on DJT's chart in the Rose Garden. The tariff and non tariff barriers and currency manipulation that China conducts in trade with US is measured in this way as an estimate, much higher than actual tariffs which is why US products don't get the treatment they deserve in China's market.   ...
WSJ Original article ›
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This WSJ story shows how China started its steel industry from small beginnings when Chinese leader Deng visited a Nippon Steel plant in 1978. He made the decision to go big with Baosteel, with an investment of $6 billion, with the words- "if we do it lets do it big." This was 36 times the Chinese foreign exchange reserves at the time. From 4% of steel production, this went up and up, passing the U.S. in 1993, past Japan in 1996, and in 2018 producing three times the steel of U.S., Russia and China combined, producing 923 million metric tons of steel in 2018, or more than half of world production of steel. With steel China was able to build its automobile industry, shipbuilding, bridges, infrastructure, high speed rail network. This was done using global demand, subsidies from the government, cheap loans and tax breaks. Markets worldwide were affected by substantial excess production in China. From Baosteel the spread of the steel industry to all 23 Chinese provinces led to China accounting for 25% of world exports. By 2016 5 million workers mostly from the agrarian countryside were employed in the steel industry, helping China transform itself into an rapidly urbanizing and modern economy. It was a period when the rail network was tripled between 1975-2017, with shipping companies that ensured access to Australian coal and Brazilian iron ore. From 2011 to 2017 Chinese steel dropped global prices by 57% triggering closure of steel mills in EUrope and the U.S. About a third of trade complaints since 2001 by G20 countries against China are about steel. After entry into the WOrld Trade Organization Chinese steel exports rose to 8% of GDP from 2%. Subsidies, cheap energy, and shift of agrarian workers to cities. U.S. investigations around 2006 showed Chinese steelmakers subsidies covered 30% to 45% of the subsidized value of steel pipes exported overseas. China's steel prices were set 20-40% lower than the U.S. China responded to complaints saying it was trade protectionism. The WTO rules call for full disclosing of all subsidies. This was disclosed 5 years after joining WTO in 2001, and only for central subsidies. Local government subsidies were not disclosed till 2016- the U.S. says 15 years late. Still the Bush and Obama administrations failed to take action. In 2018 Mr. Trump seized on this as a campaign issue that resonated with American workers in manufacturing communities across the U.S. In 2018 November president Trump announced a 25% tariff on imports of Chinese steel. A six month probe by U.S. officials had already shown 40% of sales value came from subsidies for corrosion resistant steel from China. The U.S. Trade Commission imposed tariffs of its own from 39% to 241%, with the Trump tariffs of 25% coming as an additional tariff to tackle the trade surplus with China. Meanwhile in China the government is closing uncompetitive smaller steel mills and in 2016 it combined baosteel with Wuhan Steel to create a larger company, and consolidate remaining companies. Baosteel now provides the steel for CIMC to dominate the steel container business, and to make ship to shore cranes, and make the San Francisco-Oakland Bay Bridge.  It also goes to show what can be accomplished from small beginnings for countries in the developing world from Asia to Africa and Latin America, with government and industry focussed on development and growth.   ...
WSJ Original article ›
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In an unusual move the chairman of China's carmaker Geely, takes a 9.7% stake in Germany's Daimler AG. The investment was made not by Geely but by Mr. Li on his own. Geely acquired Volvo in 2010. After a decade of effort to turn Geely into a high quality brand from the low quality brand it was seen in 2008, Geely has now set its sights on expanding in the electric car field by allying itself with Daimler and other car companies. Geely is now the largest domestic brand in China.

WSJ Original article ›
LyrArc Article Gist
The leaders of India and China, Narendra Modi and Xi Jinping will meet at a 2 day summit in the central Chinese city of Wuhan, China, on April 27, 2018.  The meeting is significant because for the first time the 2 leaders will meet on a one on one basis for a significant part of the time without aides to get a better understanding of each other, and a get a sense of how to establish a good relationship between the 2 countries. Ma Jiali of the China Reform Forum, a think tank affiliated with the Communist Party's Central Party School says a better relationship would serve China's interests for regional calm, so that China can focus on internal issues of tackling poverty in the interior of China, tackle economic issues arising from a difficult trading relationship with the U.S. including the tariffs of the Trump administration.  China's leadership have not anticipated the decisions made by president Trump and the Trade Representative Robert Lighthizer to take a strong stand on correcting an imbalance in trade that leads to about $1 billion in trade deficit each day for the U.S. with China. Previous administrations in the U.S. have not taken action. Also at issue in the U.S. China relationship is for the first time transfer of technology for "Made in China 2025." China's earlier advances were made with a free flow of technology from the U.S. and Europe.  The last time the two leaders met was in 2014. This time the issues of border relations in the Himalayas, and the relations with China in the Indian Ocean and Pacific Ocean region, the growing relationship between Australia, U.S., India and Japan, are seen in a different light with the strong disagreements on trade relations with the U.S.  China sees a need for improving relations with India. Prime Minister Modi faces new elections in 2019 and the need to focus on infrastructure and development to win a second term in office for the ruling BJP Party.  A reduction in tensions serves the interest of both countries and leaders.   ...
WSJ Original article ›
LyrArc Article Gist
For someone in his 100th year and having conducted the opening to China Mr Kissinger deserves to be heard. He brings a perspective from the Austrian German school of thinking which adds to other perspectives of where the world is and the way forward. His insights are shaped by the Austrian Metternich and Briton Casterleigh in his book A World Restored (1957) and the experience gained from their shaping a peace that lasted from about 1815 to 1914. He sees China but completely misses the future and potential of India and Indonesia that together make up the largest population and twin nations in the world. India changes everything as seen from its potential to bring peace to Ukraine and bring Russia- and even China with its shared heritage of Buddhism- into the world shaped by the Anglo-Saxons (US and Britain, France) and Germany.


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