Balance of Power: EUA desejam que a China reveja a sua política industrial e "excesso' de exportações - Jenni Marsh (Bloomberg)

 Balance of Power 

Bloomberg, April 8, 2024

President Xi Jinping’s vision for powering China’s economy through a major manufacturing drive is raising tensions with some of his nation’s biggest trading partners.

The domestic need for growth means he’s unlikely to change course.

During her visit to China this week, US Treasury Secretary Janet Yellen implored top Chinese leaders to rethink their industrial strategy, saying the Asian nation was producing more goods than the world could bear.

The trained economist advised policymakers to improve “retirement security” and “affordable education” to reduce household savings and encourage domestic spending, in a bid to rebalance the world’s second-largest economy.

Essentially, she proposed an entire rethink of their economic strategy.

The leadership in Beijing well knows the problems, and even outlined overcapacity as an issue in a major policy document earlier this year.

But an entrenched crisis in the property sector that once drove about a quarter of annual expansion means China can’t afford to abruptly shift plans if it wants to hit an ambitious growth target of around 5% this year.

President Joe Biden’s campaign to severely restrict China’s access to cutting-edge semiconductors only adds to the impetus. China has made technological self-sufficiency a national priority, as it tries to advance domestic chip design and manufacturing to protect against threats from US policy.

With a US presidential election looming in America this November, Beijing is facing increasing pressure from the world’s biggest economy with Republican contender Donald Trump threatening 60% tariffs on China.

As Xi tries to challenge the US-led world order, his main partner in that mission is President Vladimir Putin.

The Chinese leader’s continued support for his Russian counterpart might be leading to more tension with the US, but it’s another area where he’s unlikely to back down. 

Jenni Marsh

A Bloomberg sobre a guerra na Ucrânia: o poder da artilharia

 

Russia continues to wreak havoc on Ukraine as temperatures there hover below freezing, with missile strikes today further damaging energy infrastructure and making it harder for people to access power, heating and water. As the war heads toward its 11th month, it’s also prompting rapid reassessments elsewhere about the way militaries are funded and the equipment they have now and will need in future. Tony Capaccio and Courtney McBride report how the Pentagon is a case in point. For decades it has struggled to make procurement more agile, able to respond to changing threats and demands. It has also sought to get weapons-makers to commit to longer-term contracts. Key reading: War in Ukraine Hinges on Who Gets More Rockets and Shells First A Million Shells and More: Pentagon Revs Up Ukraine Weapons Aid Here’s How the Pentagon Is Speeding Up Weapons Contracts EU Nations Back Russia Sanctions on Drone Imports, Banks Follow our rolling coverage of the war here. The US is among the allies that have sent masses of weaponry to Ukraine — from missile-defense systems to artillery shells — and is staring at dwindling stockpiles with anxiety. Countries in Europe face a similar dilemma: how to keep supplying Ukraine when they are running low on weapons. That’s especially the case because the conflict has shown that 21st century wars are not just about very high-tech equipment. Yes, Russian missiles are having an impact and testing Ukraine’s defenses, with the US gearing up potentially to send Patriot batteries to Kyiv. But one of the most efficient weapons so far has been combining old-fashioned artillery with a drone for pinpoint accuracy. As Marc Champion wrote this week, there has been a heavy use of artillery by both sides — the Royal United Services Institute puts it in excess of 24,000 shells fired per day, at times much more. Ukraine is burning through 100,000 shells per month. The US produces far less than that right now. The head of Estonia’s defense intelligence center estimates Russia still has about 10 million artillery shells in stock. That all points to the war dragging on for a while. In the end, who has the advantage in the spring may come down to who has the greater arsenal by then to hand. — Rosalind Mathieson