Global Trade Gazette April 7 -24
The Commerce Compass
A roundup of some of the top trade stories of the week
Summary: Chinese exports are expected to crash into countries around the world due to production overcapacity in many industries, and as China focuses on exports to steady its economy.
Analysis:
2: WSJ - Noncompetes in Tech can crush job prospects and finances
Summary: Temu non-competes have such penalties that some ex-employees are faced without jobs or large fines
Analysis: As technology roles, especially in high growth, intensely competitive industries such as AI, e-commerce, and quantum computing, become more valuable, companies are putting in severe non-competes to ensure staff stay, or if they go, they do not take the secret sauce with them. Companies that want to hire these skilled workers often now shy away due to potential lawsuits and potential penalties.
3: WP - Power demand is making America run out of power
Summary: Data centers and new factories are driving new power demand on an electrical grid that is old and is not built for it, affecting businesses and citizens alike. Any solution would take a long time, and be fraught with political challenges along the way, hampering any increase in power availability.
Analysis:
4: Janet Yellen visited China, saying the US will protect itself against China
Summary: “Washington will not allow a glut of Chinese production to wipe out American manufacturers of green technology…” This could be done using a variety of trade barriers such as additional tariffs, country of origin content, etc.
Analysis: Chinese products are often lower priced, and good quality when compared with homegrown manufacturers. This is due to a variety of reasons such as subsidies, the ecosystem available to businesses, and scale. This is a problem that isn’t going to end anytime soon.
5: The US wants ASML and others to stop working on China machines
Summary: The US is asking European, Japanese, and South Korean firms to stop providing maintenance to machines bought by Chinese companies and located inside the country.
Analysis: The US is trying to cut off large swaths of technology to China, including chip making. What was a “small yard, high fence” has become a slippery slope and looks like an “anything to stop China approach.”
Something unique… A ban on manufacturing and selling certain funeral-related items was issued by the Nantong city government Link Here
Summary: The Nantong city government wants to stop “superstitious” practices and beliefs for funerals. This includes stopping the manufacturing of anything that is deemed not “civilized” and contributes to said superstitious customs. It remains to be seen how enforceable, or legal, this ban is. was