China’s economy slows down

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Slowdown in China’s economic growth | Common ground on green steel? | Semiconductor delays | Trade rules and new technologies | More research from Hinrich Foundation

Slowdown in China’s economic growth

China’s economy is sputtering, posing a challenge for global growth, says the New York Times, while Reuters asks “Will China ever get rich”?  Nikkei Asia explores whether China is headed for deflation. Meanwhile, China is still a developing country by some measures, says Philippe Benoit in Foreign Policy.

Mentioned publications

1. China’s Economy Is Sputtering, Posing a Challenge for Global Growth – The New York Times, July 17, 2023
   How will China’s poor economic recovery affect global trade flows and future economic growth?

2. Will China ever get rich? A new era of much slower growth dawns – Reuters, July 17, 2023
   What are the factors underlying China’s new era of slower growth?

3. China Inc's profit warnings reveal deflationary pressures – Nikkei Asia, July 21, 2023
   Weak demand is pushing down the prices of key industrial products in China.

4. China Is Developing and Developed at the Same Time – Philippe Benoit, Foreign Policy, May 23, 2023
   By many factors, China is still a developing country.

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Common ground on green steel?

American and EU negotiators have so far failed to agree on a common approach to trade rules reducing emissions in steel and aluminum production. They have reached a transatlantic impasse, notes Alan Beattie in the Financial Times. The US proposal for a ‘climate club’ presents a false promise, says Dave Kleimann in Bruegel.  Is there a third way? Paul Bledsoe and Ed Gresser propose an Alliance for Clean Trade for the Progressive Policy Institute.

Mentioned publications

1. Transatlantic impasse over turning steel green – Alan Beattie, Financial Times, July 3, 2023
   Can the US convince the EU to accept its terms for a green steel deal and avoid reimposition of tariffs?

2. Section 232 Reloaded: the False Promise of the Transatlantic ‘Climate Club’ for Steel and Aluminium – David Kleimann, Bruegel, July 10, 2023
   The US proposal for a green steel and aluminum club may do more harm than good.

3. Alliance for Clean Trade: A Framework Proposal for a New Climate and Trade Alliance Between the U.S., EU, and Allies – Paul Bledsoe and Ed Gresser, Progressive Policy Institute, June 13, 2023
   Could an innovative proposal forge a cooperative path forward for the US and the EU?

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Semiconductor delays

What do recently announced delays and investment cancellations indicate about the challenges of expanding chip production?  TSMC is expecting a delay in advanced chip production in Arizona due to a lack of skilled workers, reports Nikkei Asia.  Foxconn is pulling out of a chip-producing joint venture in India, per Michael Kugelman in Foreign Policy.

Mentioned publications

1. TSMC delays U.S. chip plant start to 2025 due to labor shortages – Nikkei Asia, July 20, 2023
   TSMC will push back mass production in its Arizona plant due to shortage of skilled workers.

2. Why Did Foxconn Pull Out of Its India Deal? – Michael Kugelman, Foreign Policy, July 12, 2023
   Foxconn has pulled out of a joint venture to set up semiconductor plants in India.

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Trade rules and new technologies

Is trade policy ready for Chat GPT? asks Pascal Krummenacher for the International Institute for Sustainable Development.  The OECD explores whether customs valuation systems and rules of origin must change.  Have the USMCA’s new rules of origin affected North American trade flows? The US International Trade Commission presents its first report.

Mentioned publications

1. International Trade and Artificial Intelligence: Is trade policy ready for Chat GPT? – Pascal Krummenacher, International Institute for Sustainable Development, April 14, 2023
   What are the opportunities and challenges for the WTO in developing trade rules for AI?

2. Interactions Between Goods and Services in International Trade: Implications for Customs Valuation and Rules of Origin – OECD Trade Policy Paper No. 274, July 2023
   Do rules of origin need to change to meet the challenge of new products combining goods and services?

3. USMCA Automotive Rules of Origin: Economic Impact and Operation, 2023 Report – US International Trade Commission, July 2023
   A first look at how the new rules of origin in USMCA are shaping North American trade.

Mentioned publications from HF:

• Is China’s growth narrative an illusion?
• India: A 21st century technology hub?
• Regulating artificial intelligence through digital trade agreements

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