Electric shock Nov 4, 2022 (WiC 606)
“We don’t want to have Chinese neighbours that sell at a loss in Europe and then put the automotive industry on their knees”
Carlos Tavares, CEO of carmaking giant Stellantis, talking at the Paris Motor Show last week where both BYD and Great Wall had huge stands promoting their electric vehicle brands. Tavares called for the EU to impose tariffs on EVs from China. Meanwhile BYD has announced a 350% surge in third-quarter profits to Rmb5.7 billion, exceeding its record Rmb2.8 billion haul in the second quarter.
The future is fabs Oct 28, 2022 (WiC 605)
“Where the oil reserves are defined geopolitics for the last five decades. Where the fabs are for the next five decades is more important”
Intel’s chief executive Pat Gelsinger tells a Wall Street Journal conference this week that it was “inevitable” that Washington would impose restrictions on US semiconductor exports to China. He said chip manufacturing located in the US and Europe should shift to about 50% of global output by the end of the decade, versus the 80% currently in Asia.
Cattle from the Kiwis Oct 20, 2022 (WiC 604)
Simon Limmer, CEO of Silver Fern Farms, told the China Daily of his confidence in Chinese demand, fuelled by the “consumption upgrade” trend. Beef imports into China reached 1.7 million tonnes in the first eight months, up 12% on a yearly basis, according to Chinese government data. Silver Fern Farms is New Zealand’s largest livestock processing and marketing company.
“China is the largest importer of New Zealand red meat, demonstrating its preference for New Zealand as a country of origin for the product category”
Slow, but not steady Oct 7, 2022 (WiC 603)
‘A slow-motion financial crisis’
How Logan Wright, a partner at the consultancy Rhodium Group in Hong Kong, described the impact of the slowdown in China’s property sector to the Financial Times this week. The crisis in the property market is spreading to other parts of the economy, Wright said, with predictions that thousands of local government financing vehicles are about to default.