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WSJ Original article ›
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Tim Cook talks to developers at a world wide virtual and in person event. 

Apple will introduce a new 13.5 inch Macbook Air with a inhouse M2 chip for $1195 on sale in July 2022. A new 13 inch Macbook Pro will also be made.

The new iPhone with 5G capability had sales of $191 billion in fiscal year ending in September 2021. iPhone sales up 6.2% in 2022 vs 39% in 2021 when the pandemic led to remote work on Apple and other PC's.

App store and ad sales up by 17% to $80 billion, larger than Mac and iPad sales. 

Apple Pay will break payments into 4 installments as an option. Messages will have an unsend or edit option for 15 minutes.

WSJ Original article ›
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In the past market forces pushed the US out of the chip business to highly subsidized chip companies TMC and SMIC in Taiwan and China. US cannot have it both ways. It cannot compete with China in chips and allow temporary market forces do the job of decimating its chip industry.    Market forces are rags to riches and mostly short term ignoring long term. Nvidia now valued at $1 trillion under market forces would not exist today. WSJ showed recently that only with the help of a loan from a Japanese Sega videogame executive Iramijiri to Nvidia founder Jensen Huang was Nvidia able to survive market forces in 1998. Qualcomm a maker of phone chips has made a takeover offer of Intel in 2024. Intel shares dropped 60% this year and is valued on share basis at $90 billion- yet was recently at $290 billion closer to its true value as America's chip pioneer and leader. Qualcomm is at $185 billion. Yet share values can be rags to riches as Nvidia story of going up to $1 trillion in 2021 and $3 trillion in 2024 shows. Such a deal draws anti trust concerns with too much control under one company. A deal for takeover of British owned ARM by Nvidia was stopped by regulatory authorites in UK and the EU in 2022. The US government is giving $8.5 billion to Intel to build up its chip making technology in competition with China. The Gelsinger plan is for manufacturing to be boosted up, so is the effort of the Biden administration. It may take time yet it is the right approach for the US. Pat Gelsinger is leading this effort at Intel. In the past market forces pushed the US out of the chip business to highly subsidized chip companies TMC and SMIC in Taiwan and China.    ...
Atlantic Council Original article ›
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This article in the Atlantic Council September 17, 2024, shows that the world may be fixating on the Straits of Hormuz when it should really be focusing on the Red Sea shipping for the Suez Canal. The Iranians ship 1.5 million barrels a day of oil through the Straits of Hormuz, and closing it off would close off the oil revenues that sustain its economy. Wald writes that even if the Iranians in a crisis would clsoe off its waters to shipping another route exists in the Straits of Hormuz through UAE waters when needed by oil shipping and it has been used by British ships. The Red Sea and Suez presents risks coming from Houthi rebels supported by Iran, who have attacked the US Navy ships in the region.

BBC News Original article ›
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Jack Horton of BBC Verify screens the former president Trump's speech at the Republican National Convention. “Our crime rate is going up, while crime statistics all over the world are going down".  Fact: FBI data shows crime down 6% and a drop in the murder rate by 13% in 2023. For the First Quarter of 2024 crime down by 15% and recorded murder rate down 26%. "We've had the worst inflation we've ever had under this person [Biden]. I will end the devastating inflation crisis immediately, bring down interest rates and lower the cost of energy . We will drill, baby, drill."  Fact: Inflation went up to 9.1% from 1.4% at the end of the Trump term in the first 2 years of of the Biden Administration by June 2022. Biden and Federal Reserves Powell brought this down to 3%. Explained: This inflation jump to 9% would have happened from supply chain in China for Trump administration as well. Trump's last year was 2019 the Covid pandemic started in January the lockdown by midyear meant sharp drop in demand and little room for inflation. The concentration of supply chain in China was the cause of the surge in inflation as China shut down and restarted late into 2022 causing shortages in factory parts and supplies. Biden focused on vaccination in 2020-2021. This inflation would have happened under Trump- this concentration of supply chain started with Reagan economic philosophy to ship production (and jobs) overseas, Clinton Bush Obama and Trump did little about it. Biden invested heavily in Make in America manufacturing and jobs at home. Biden and Powell did a good job of bringing this inflation down by 2023 to 3% before the European Union and UK. Younger voters don't know this they get their news from the internet and show little interest, see only that the low inflation under Trump and the higher inflation during the pandemic recovery under Biden and blame Biden. will Trump do better on inflation in 2024-2028. The WSJ does not think so its analysis shows inflation higher under Trump than Biden because of a planned 60% tax on imports from China. Trump follows Reagan/Friedman theory of the old Republican party of higher tax cuts for the wealthy, so no money is left for investing in American manufacturing and jobs as Biden free of this theory is able to do, leading to slowing growth with inflation under Trump.        ...
Wall Street Journal Original article ›
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Intel expects to rebound in its chip sales with its new products- the Ivy Bridge line for ultra thin notebooks called Ultrabooks (about 100 designs of Ultrabooks expected in 2012-2013), and the new Xeon chip for servers to handle the surge in internet data. The new Windows 8 for tablet type devices may also boost sales of new convertible devices expected on the market that have features of both tablets and notebooks. Intel gross margin declined slightly from 64% to 62% in the first quarter 2012. CEO Otellini says demand is strong in emerging markets, and for tablet devices using Intel chips.
NYTimes.com Original article ›
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From 2007 to 2022 US electricity demand flattened with new energy efficient technologies. It is now poised to increase from 2022 to 2035 and the process is happening  with approval of new natural gas plants and new data centers, new manufacturing plants needing large amounts of renewable energy. This say Plumer and Popovich in NYT could very well upset president Biden's plans to get 100% of energy from renewables by 2035 and cut greenhouse gas emissions by half to tackle climate change. Utilities are moving ahead with putting up new natural gas plants, and new data centers are needed for the shift to remote work since 2020, electric automobile and chip making plants are coming up at a rapid pace. Without a sustained effort the climate change action needed may not take place with the long lead times to bring renewable solar, wind and other energy and put it in place for transmission. This report looks at the data centers coming up in Virginia and the EV manufacturing plants in Georgia as examples for the new demand and how it could upset plans for climate change action. ...
WSJ Original article ›
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The move is one DJT made on his trip to Saudi Arabia in May 2025. DJT signed agreements that let the Saudis (and UAE, Qatar) have access to US made AI chips in exchange for $1 trillion in investments in US AI infrastructure. This is the only way the Saudis can access AI technologies in the US. For the US and for Saudi this is a way to efficiently utilize funds that go from the rest of the world to the Saudis for oil, much of it being wasted on foreign wars not development and science in other oil producing regions. To do this DJT rescinded the Diffusion prevention rule made by the Biden administration to not let even allies have a way to invest in American AI and have AI chips exported to allies.

One result can be seen in the 73% growth in Nvidia's data center sales in 2025, which makes AI chips, even after a $4.5 billion charge for DJT administration rules blocking sales of AI chips to a competitor China.

WSJ Original article ›
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Boeing's gumdrop shaped ship that will take Sunita Williams 58 years and Barry Wilmore 61 years  to the International Space Station in May 2024. It launched at 10.34 am on Monday May 6, and will reach the Space Station in 1 day and return a week later to earth. Both Williams and Wilmore have made 2 trips on NASA space shuttle and on Russia's Soyuz vehicles to the International Space Station.

WSJ Original article ›
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Surges in capital value can be wildly misleading. Nvidia a rapid computing company propelled in stock value. From the growth of crypto currency that led to losses and was perceived as a danger to the financial system by central banks and governments. This is happening when capital investment is a dire need in education and schools, good teachers and good classrooms, when only a third of American students pass NAEP tests on reading comprehension. Today's capital allocation system was never designed to accomplish this even as it sends hundreds of billions of dollars in one single day to a single company. Nvidia is now seeing a surge from chatbots computing coming out of ChatGPT,  leading to $184 billion change in its market value on May 25, 2023.  Nvidia was mostly a graphics processing company setup to make graphics on PC's look better. In 2006 Jensen Huang made the decision to open it up to developers to tinker with it and develop more computing capabilities. This has led to Nvidia designing much more powerful computing chips that perform thousands of calculations at the same time.   Nvidia designs the chips and sends production out to Taiwan Semiconductor Manufacturing. Suddenly Nvidia sees its share price surge and it joins companies such as Apple, Amazon, Microsoft, and Tesla that have seen one day surge in the value of the companies by over $100 billion shown in this WSJ graph by date. Huang says he thinks that this is the beginning of a ten year period in which companies will redo their data centers to build them up with AI computing capabilities. WSJ also says China's top nuclear weapons research institute has bought these advanced chips even though it is on a US export blacklist since 1997. In 2022 the Biden administration imposed new licensing requirements on export of the most advanced chips. Since then Nvidia is following specifications for chips that allow it to export to China, says the WSJ.     ...
Washington Post Original article ›
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Allyson Chiu and Emily Wright show how inventors in India are working on more efficient residential air conditioning units that cool single rooms. About 1.2 billion units are there across the globe, billions more may be needed to replace the old ones and to meet surging demand in Asia, Latin America and Africa. International Energy Agency estimate is for these AC units to triple by 2050 what they are now, adding 2.4 billion AC units. Using the existing technology and emissions would mean putting 2 billion metric tons of emissions from these older AC units into the atmosphere in 2050 or what 476 million cars put out, says IEA.  The Indian government, RMI, a global coalition including Gree of China, and Daikin of Japan are doing the research on new AC units. In 2015 about 5% of India's 300 million households had such AC units. 8-10 million units were sold in 2023. This would rise to 1 billion units sold and installed by 2050 says IEA, that would emit 25 gigatons of cumulative emissions in 2050, or what a staggering  6 billion gas powered cars emit. ...
WSJ Original article ›
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What happened on September 10, 2024 in the Harris Trump ABC television debate moderators David Muir and Linsey Davis? It is hard to prepare for a debate, things can go wrong, unanticipated situations may arise. 67 million audience, 51 million for Biden Trump last debate, it can stress you out- UNLESS you Trust your authentic self knowing people can see through you if you are not honest forthright and stating it clearly. Harris could say she did approve fracking now as policy action she cast decisive vote for new oil leases. I am from a family like yours struggled with a single parent mother, ("not $400 million platter")I also support small businesses. If the other side is telling lies prolifically, make it clear vigorously yet with it not changing your demeanor and your focus on housing, cost of living, experience for NATO "from the same old playbook" and a warning about the lies to come to prepare the audience very early. Save the time responding to insult to use every moment constructively to define your message for the question at hand which is in addition to the questions put to you which are merely for organization immigration, crime, economy, cost of living, chips and science competition, Ukraine, Afghanistan. Harris said nothing about "Marxist economic professor father, other personal insults just acknowledged "It is a tragedy," don't you think fellow citizens? What would 4 years be like under Harris? (and 4 years under Trump?) Here's my plan for housing, for not starting trade wars while letting chips and science help competitors as Trump.   ...
BBC News Original article ›
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On BBC: See key moments video of US Liberation Day, Rose Garden April 2, 2025. DJT describes decades of inaction by previous American presidents as the US and American workers, and factory towns were looted and pillaged of their factories by other nations. At one point he said the US lost 90,000 factories and it would be impossible to put 90,000 tacks on a map to show these lost factories from cheating by other trading nations including Japan, China, Taiwan, South Korea. And use of third nations Mexico and Vietnam by China, and Mexico by Germany to ship into the US. All this stops on April 2, 2025. In this way the US which made 100% od the worlds computer chips lost an entire industry to Taiwan. It also lost its electronics industries. And its pharmaceutical industry, so that antibiotics if not imported would not be available to the people of the United States. It becomes a antional security issue when the shipbuilding industry is also gone where one shipbuilding plant in china makes more ships than all the plants in the USA. And nothing was done about this till today. DJT said there is a simple way to avoid these tariffs- make in the USA and there are no tariffs. Already Apple he says has committed to invest $500 billion in the US and Taiwan to build the largest semiconductor plant in the world in the USA. And total investments in the US now add up to $10 trillion, says DJT. ...
NYTimes.com Original article ›
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A small group of founders of the Pay Pal company Sacks, Thiel and Musk  are only a small fraction of the larger tech universe that includes Apple, Google and Amazon and other technology companies in many industries including auto, aerospace, chips, other manufacturing,  possibly no more than 10--20%. They are now enabled by US Supreme Court decisions to allow business supported PAC's to operate freely to influence political events in 2024 for promoting their own business interests.  The influence operates through social media channels in ways that limit verifying of information because of the speed with which information can be posted on the internet. This has created new challenges for 2024 and the American system of representative government enshrined in the words in the preamble of the Constitution about  "We the People" - "We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America." ...
WSJ Original article ›
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The 25% auto imports tariff goes into effect April 2nd 2025. How much will it increase prices in the US for automobiles? The average is about 10%, say some experts cited in WSJ. This includes price increases on higher priced brands such as German brands BMW's and Audis, Mercedes Benz, and VW cars made in Mexico to ship into the US. It also includes European car makers including Stellantis that make cars in Europe and Mexico to ship into the US which could lose market share to American car makers who make most of their cars in the US. Ford makes 80%, GM 60%.  Overall US international Trade Commission in 2024 looked at the 25% US tariff in a study and showed 5% increase in auto prices in the US. President Trump's call to GM and Ford asking for restraint in pricing may be coupled with the government returning some of the money in tariffs revenue pool to American or foreign manufacturers investing more to make more cars in the US including to Hyundai which announced a $21 billion investment. More such investment decisions are expected from Japanese automakers. For example Subaru has capacity for 450,000 cars in Lafayette Indiana plant and sells 650,000 cars in the US. One would expect it to increase the capacity of the plant or add a new plant in the US. The Japanese government and Japanese business will have additional incentives to invest in the US because of the US support for Japan in the Asia-Pacific, US openness to give trade benefits to Japan in the post war period, incentive to make the Republican DJT plan for tariffs to work as a united Japan-US effort. This would include restraint on pricing.  Toyota is in much better financial shape than VW and has a large market share in the US which it will work protect with pricing restraint and more US investment. Only VW and German luxury car makers BMW, Mercedes may not cooperate. Yet VW sells only 300,000 cars in the US compared to 2.3 million for Toyota. BMW and Mercedes sell luxury cars where buyers could absorb the additional luxury brand cost without impacting inflation overall. Some of VW's car sales would be absorbed by American and other automakers considering VW was losing market share and nearly exiting the US market. before this. ...
Wall Street Journal Original article ›
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1. ACCELERATION OF DECLINING PRODUCTION FROM GULF OF MEXICO AS DRILLING RIGS LEAVE THE GULF. Offshore oil production mostly in the Gulf fell by 19% between 2003 and 2005. Natural gas production fell by about 22% from 2001 to 2004, according to EIA. The drilling rigs jack-up rigs and deep-water rigs that drill for oil and gas are declining rapidly in the Gulf of Mexico. There were 148 rigs in 2001, now only 90 remain with more leaving soon. Many of the rigs that are leaving are jack-up rigs, used for drilling for natural gas in shallower waters, and this should lead to a pronounced effect on natural gas production. Gulf Gas reservoirs that use these jack-up rigs are quickly exhausted requiring new wells to be drilled to just maintain production. Fewer rigs available mean upward pressure on natural gas prices more so than oil because gas is a market supplied locally. EIA estimates natural gas will move from recent close (July 5, 2006) of $6.10 per million BTU's to a price of $10.00 by end of 2007. This compares with a price in 2001 of $2.43. Hurrican related disruptions pushed oil prices up by $10 a barrel for hurricanes Katrina and Rita, in each of two years, so there will be continued upward pressure on oil price from this acceleration in production declines in the Gulf. 2. SEA CHANGE IN THE OFFSHORE DRILLING RIG MARKET, IN DAY RATES, IN PREFERRED DRILLING LOCATIONS, AND IN RIG PRODUCTION. The hurricanes Katrina and Rita destroyed 5 rigs. What is a bigger effect is that drilling companies are signing longterm deals with companies overseas. Global Santa Fe Corp. for instance signed a deal last month to send 4 jack-up rigs to Saudi Aramco at $160,000 per day, for 4 years. Ensco International will send one to Tunisia at rates approaching $200,000 for 2 years. There are hotter prospects for petroleum offshore in the Middle east, and in Africa, whereas the easier drilling spots in the Gulf have already been tapped. Worldwide 91 major offshore rigs are under construction compared to 10 in 2003 according to ODS-Petrodata. The new rigs may take till 2009 and may have delays so as to come out after 2009. They cost $160-190 million for one jack-up rig and about $600 million for one deep-water rig. All this has pushed day rates throug the roof. BP PLC agreed to pay Transocean Inc $520,000 a day for three years for a massive drill ship. The same ship cost BP PLC $185,000 a day in 2004. The drilling ship is as large as 3 football fields and can drill in oceans upto 10,000 feet deep. ...
Wall Street Journal Original article ›
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The Japanese yen surged in value following the 2008 financial crisis as it was seen as a safe haven. As a result the Korean won declined by 42% against the Japanese yen. This continued till 2012. Japanese companies had to compete overseas at 80 yen to the dollar and shifted operations overseas. Now with the policy of monetary expansion of the Japanese central bank the situation is reversed in December 2014. The Korean won is up 40% against the Japanese yen since 2012. The Japanese yen is now down to 118 to the dollar in Dec. 2014. Abenomics gets a new mandate with the snap election in Dec. 2014. Aaron Back says Samsung may have gained ground in televisions and smartphones but other areas in electronics such as chips, displays and image sensors remain competitive and responsive to price. In autos Hyundai market share has declined to 4.4% by Dec. 2014 from 5.1% in 2011, according to MotorIntelligence.com. So far Japanese companies have used the currency advantage to improve profits and come up with better products. By using profits to invest in new technology and productivity Japanese companies can provide more features at the same price points to gain market share without having to cut price. After years of declining margins in electronics, autos and other markets this appears to be the current strategy. Another reason for this is that Japanese companies have already shifted production overseas, the shift being higher for Honda than for Toyota. Technological improvements from investments in R&D in Japan can be transferred to manufacturing operations overseas just as Apple is doing with smartphones manufacturing in China. The currency shift also improves Japan's position relative to American and European competitors in international markets....
Le Monde.fr Original article ›
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A brief history of the US presence in Greenland and US-Denmark relations in Le Monde. On a map Greenland is located closest to Canada on the Smith Sound with the American base of Thule nearby. Next closest is Iceland. Norway and Denmark are further away. Around 1814 when Britain invaded and occupied Denmark in the Napoleonic Wars, Norway which was part of Denmark since 1400 was given to Sweden by Treaty of Kiel. Greenland, Faroe and Iceland were Norwegian dependencies. All three were kept by Denmark.  Icelanders set up small settlements on shores of Greenland in the 10th century which did not survive. Other parts of the island's shore were visited by the Dutch who came into conflict with the Danes after 1500. No country could claim ownership of Greenland as because of the harsh climate there very few settlements survived except of the native Inuit people population of 14,000 by 1900 who lived there. In 2025 about 56,000 Inuit live on Greenland. Robert Peary explored the vast Greenland region for the US Navy on on many trips from 1894 to 1909. With his ship The Roosevelt he reached a point about 100 kilometres from the North Pole in 1909. This is part of the US history on Greenland. Denmark signed documents asking for US protection of Greenland after Denmark was occupied by Nazi Germany in 1941. The Danish ambassador in Washington signed an agreement with Cordell Hull US Secretary of State making Greenland a protectorate of the US. The US set up military bases in Greenland. Today the US base in Thule is 1220 miles north of the Arctic Circle. It has a giant radar capable of detecting ballistic missile attack and a control center of the US military satellite network. At one time 10,000 soldiers were stationed at Thule base, today about 150 soldiers are in Thule. ...
DW.COM Original article ›
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Which European port is at the center of Europe's wind energy project. Answer: Esbjerg, Denmark. On May 18, 2022 the heads of state of Denmark, Germany, Netherlands, and Belgium came together to sign the Declaration of Esbjerg. Together the countries want to increase wind energy production in the North Sea to 65 gigawatts (GW) by 2030 and rising to 150 GW by 2050. Esbjerg is one of the few ports in Europe and the key port serving the offshore wind industry. Industry leaders Vestas and Siemens Gamesa ship wind turbines from here, and Orsted provides spare parts that weigh several tons.  German ports such as Bremerhaven lack the infrastructure and it is tied up in disputes ending up in court. Dutch port of Eemshaven is much smaller. The harbor was recently expanded in Esbjerg by 0.5 million square metres to 4.5 million square metres or 45 million square feet. Environment groups are also part of this and there is no dissent in the planning. Here are some useful facts on wind power- Environment cost is 70 times less than that of coal fired power according to Germany's Federal Environment Agency. Within 3  to 11 months wind turbines generate the energy required to build them. No CO2 is produced in the electricity generation process but they do alter the landscape. The future of wind power giants is in the sea where the wind is reliable and strong. One such modern turbine can have an output of 10 to 15 thousand kilowatts to provide electricity for 40,000 people. Pioneers in wind energy are Denmark and Germany. Denmark gets 50% of its energy from wind power, for Germany this is 25%. Jobs are generated installing and operating these wind energy turbines. 1.3 million people are employed in it today. With additional wind propulsion energy consumption of freighters carrying most of the world's freight would be reduced by 30%. Wind and photovoltaic solar can combine for providing most of India's energy because of its sea coastline and having a lot of sun. To get an idea of what is doable in India - in Germany 41% of electricity demand is met from renewables mostly solar and wind. German farmers get 25% of their income from solar energy. Where Germany lags is in use of renewables for transport which falls to about 9% and for heating and cooling where it is about 18%, and it is making great strides to correct this. A big change is technology and how people use transport (more train than airline or automobiles), which will change the entire picture of how energy is created and used in the future. Energiewende the  term for this change is only beginning to take place with urgency in Germany in 2022. India needs to work closely with Denmark and Germany to stay in front of these developments.   ...
Washington Post Original article ›
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The Climate Change Bill, Inflation Reduction Act of 2022, CHIPS and Science Act, gun control legislation have moved forward president Biden's program for Build Better America forward leading to a huge change in the perception of his administration. There may be a sense that Biden could do more in Congress in the way FDR and Truman changed America, and creating once more a beacon for the world shaken by the pandemic.

WSJ Original article ›
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This report in WSJ says 4 months before becoming China's president in 2012 Xi Jinping issued a Communist party directive as head of the party committee overseeing the former British colony. The directive cautioned officials about a growing separatist sentiment in Hong Kong. It said "we must dare to struggle and be good at fighting," a retired official describes as Xi's approach. Another facet of Xi's views on Hong Kong are that his father as a party leader for the southern province of Guangdong in 1978 to 1980 near Hong Kong was the first after the Cultural Revolution to set up ties between the mainland and the British colony of Hong Kong. China was experimenting with a different model for the economy and Xi's father set up the early links with Hong Kong so that the flow of economic refugees from mainland China to Hong Kong could be reduced and the gap in living standards could be narrowed. He set up the first "Special Economic Zone" and met delegations to start the Sino-British talks on Hong Kong's future. Xi Jinping grew up in the turmoil of the Cultural Revolution. His father Xi Zhongzun, was jailed in 1962 in internal party struggles, and his family was persecuted during the Cultural Revolution that started in 1966. The Cultural Revolution that went on till 1976 ironically was an attempt to stamp out possible capitalist or imperialist influences from the colonial period and the opium wars with Britain. He was later rehabilitated under premier Deng. During the turmoil Xi with some difficulty was admitted to University after spending some years in the countryside. His father remained loyal to the ideals of the Chinese Revolution even though he had suffered from the internal party struggles, an experience remains a strong memory for Xi Jinping. It is as if the period is seen as a period of experimentation and failure for the party not for its ideals of China rising from the colonial period after its failure to engage with the world before the colonial period leading to backwardness. The unity of the country had to be maintained bringing Hong Kong and possibly Taiwan together with the mainland. Rejuvenation was happening and stability was essential for Chia to grow and emerge into the "China Dream" a word coined by Xi for its emergence in the community of nations as an equal to western powers after the colonial period of oppression and cultural backwardness. In this way he is different than other leaders before him who followed premier Deng who started the experimentation with markets and economic structures. The leader preceding him was party secretary in Tibet with a prime minister who was an engineer working on public projects, in sharp contrast to Xi who had the the sense of authority from seeing different phases of Communist party experimentation in his early years. The Bo Xi Lai incident during the transition before 2012 also influenced Xi. This was an attempt similar possibly to the attempt by Lin Piao under Mao to subvert Communist Party leadership into a new direction bringing China under Soviet influence after the break by Mao. Bo Xi Lai, a party secretary for an interior less developed region Chongqing, who rose from being Mayor of Dalien to governor of Liaoning province. Bo Xi Lai attempted to subvert the process operating since the Cultural Revolution of leadership by consensus within the party ensuring stability and continuity needed for development and pushing the trauma of the Cultural Revolution out of memory. He did this by seeking high party office for his own ambitions not for the party and China's interests that guided leaders after the Cultural Revolution. This incident and the period of two decades of growth of market economy had led to growing corruption and Xi was convinced that "corruption would doom the Communist Party and the State" and the resulting instability was bad for China. During this period in 2012 Xi Jinping said that it was necessary to remove "tigers and flies" who could endanger the party's ideals and the future growth and stability of the country.  About 10,000 party officials were removed for corruption, and the rule of Politburo Standing Committee immunity (PSC) of the party operating after the Cultural Revolution was removed. The PSC is the body that at the top of the organization structure that runs China. On Hong Kong Xi now believes that the problem is best tackled by the Hong Kong government not by intervening from Beijing. There is increasing perception in Beijing and Hong Kong that the local government, business leaders have messed things up, by getting into the habit of telling Beijing planners what they wanted to hear, and failing to communicate with the 7 million people of Hong Kong. These leaders are also in a bind because Xi believes that Beijing exercized "overall governance authority" over Hong Kong. A 2014 government white paper warns against "confused or lopsided perceptions" of Hong Kong's status, saying that its partial autonomy comes "solely from the authorization of the central leadership."     ...
WSJ Original article ›
LyrArc Article Gist
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.   ...
Wall Street Journal Original article ›
LyrArc Article Gist
The different strategies of Apple and Samsung in getting to the point where the two companies now dominate the smartphone market. Whereas Apple makes only one phone, its iPhone, Samsung's strategy is to have multiple phones in each price segment. It has five levels of Android based phones, with 2-3 models in each price segment. Samsung also benefits from doing its own maufacturing. When faced with a number of technologies Samsung's strategy is to bet on all of the technologies until one of them emerges as a winner, and then concentrate resources on that technology. It uses a similiar strategy for televisions. Apple by contrast places more emphasis on original design and profit margins over sales, gaining sales without eroding margins by being the first innovator in the market. It also has its own unique arrangement for manufacturing at lowcost with Foxconn in China that supports its high margins. Apple is secretive about its designs and promotes its brand heavily with its own retail stores. Apple also uses its innovative edge as leverage to steer profits away from carriers. Analyst estimates are that carriers such as AT&T and Verizon pay about $400 per iPhone to subsidize its cost because this is the only way to get customers into their retail stores. IDC estimates are that the smartphone market is $219 billon in 2012. Both companies are very close in volume- IDC estimates Apple shipped 93.2 million smartphones in 2011, compared to Samsung's 94 million units. Apple has market share of 23.5% in the fourth quarter 2012, up from 16% in 2010. Samsung has 22.8%, up from 9.4% in 2010. Apple and Samsung have together taken 91% of operating profits of all cellphone companies in the fourth quarter, an increase of 30% from 2011, according to Strategy Analytics....
Wall Street Journal Original article ›
LyrArc Article Gist
Comparison of cost of components and margins for Nokia's Lumia smartphone and the Apple iPhone 4S in 2012. The Lumia 900 retail price is $450 vs. Apple iPhone 4S for $649. Total component cost for Lumia $209 vs. $190 for Apple. Margin of $241 for Lumia vs. $459 for Apple.
Wall Street Journal Original article ›
New York Times Original article ›
LyrArc Article Gist
The lack of U.S. leadership and slow response by the Obama administration to the rapidly developing situation in the region risks spillover effects from Syria to affect the entire Middle East. Russia's stakes are minimal in the region because it is simply trying to retain some of its old influence in the region, yet it is having an outsized influence in the region through its early military assistance to the Assad regime. The stakes are much higher for the U.S. because of the decade spent and resources invested in Iraq, higher for Iraq with its need for civil harmony between Shiite and Sunni communities, for Turkey with its large Kurdish minority and flow of refugees from the border with Syria, for Saudi Arabia as a defender of Sunni interests. Without active U.S. leadership the situation is allowed to drift and young people of the Free Syrian Army are basically taking on the bulk of the role of resolving the situation. France's Sarkozy and Britain's Cameron offered this kind of leadership in Libya as Libya's young people struggled to resolve the situation there. ...

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