Weaponized Interdependence

The world is being weaponized

[Jennifer Jacobs @JenniferJJacobs]

Scoop: US and EU are weighing new tariffs on Chinese steel and aluminum as part of a bid to fight carbon emissions and global overcapacity. @jendeben @AlbertoNardelli @europressos
https://t.co/Oe0NwAnvkU

[Rashad Ahmed @VARshad_]

USD dominance depicted

“Half of global trade is invoiced in USD.. despite the US accounting for just over 10% of global trade”

Link to the @BIS_org quarterly review: https://t.co/vFxxFrx4zj

[Demetri @AsiaLens]

Dutch chip toolmaker ASMI warns of escalating tensions over export controls, as US officials about to hold talks with Dutch officials in Netherlands this week. US wants #Netherlands & #Japan to agree to a trilateral deal. #Chips (@AnnaSophieGross & @Dimi)

https://t.co/4QnD1TYj3E

[Todd N. Tucker @toddntucker]

Further indication of the strain that weaponized interdependence places on economic integration, as the Netherlands tries to distance itself from an all-EU strategy on semiconductor inputs. @WorldWeaponized.

[Paul Triolo @pstAsiatech]

“It’s so hard to cut China out of this supply chain,” said Chad Bown, a senior fellow at the Peterson Institute for International Economics. “In order to do it, you have to use policy instruments that we have never thought about using before.”

[Jacqueline Hazelton drjlhazelton.bsky.social @DrJLHazelton]

This is a great piece on the Chinese party-state and the weaponization of globalization. @HarvardHBS @Journal_IS @BelferCenter

[Paul Triolo @pstAsiatech]

US government policy pronouncements related to China and technology have ramped up over the past six months…it is important to understand their evolution, and implications for allies...a thread🧵

[Adam Segal (@[email protected]) @adschina]

Chinese chip maker CXMT hits out at anti-globalisation in semiconductor sector https://t.co/MzeoTr5TMq via @scmpnews

[Paul Triolo @pstAsiatech]

#ASML @TSMC @TaiwanSupplyChainWatch

[Brad Setser @Brad_Setser]

As my quote in the prospect article makes clear, I don't think there has been much of a shift in global supply chains out of China.

At least not yet.

And there is a really big data puzzle here too. The Chinese data tells a different story than the US data.

1/

[Laura Rozen @lrozen]

New EU sanctions designations here -> https://t.co/WuGfZFRhud (starting page 11)

[Nicholas Mulder @njtmulder]

To me a big question about US-China tech competition is whether the world system can handle growth-stifling strategies among the largest economies. Since the 1940s US hegemony stabilized territorial order by enabling rapid growth for all. What happens when it no longer does?

[Dr Maria Shagina @maria_shagina]

OFAC targeted Armenia- and Taiwan-based front companies Milur Electronics and Sharp Edge for assisting a Russian microelectronics company Milandr to illicitly procure microelectronics. A Swiss company was used to facilitate financial transfers.
https://t.co/i8oUDy3gzk

[Thorsten Benner @thorstenbenner]

Habeck: "Today there no longer is unpolitical trade". Responding to Siemens CEO Busch who talked about "cooperation & competition with 🇨🇳" Habeck said "I'd put stress bit more on competition. In the past we didn't look closely enough at critical sectors".
https://t.co/Tx3sKSFuil

[Darren Sissons @KiwiPMI]

Semi Thread for October 2022. 🧵

Focus: 1) Not on specific names, but rather industry dynamics now versus the past. 2) Front vs back-end. 3) Sector Spend. 4) Recent Events of interest.
@kittysquiddy

/1

[Albert Pinto @70sBachchan]

FT: Indonesia is studying the establishment of an Opec-like cartel for nickel & other key battery metals, highlighting geopolitical confidence of nations that are rich in resources

discussed in Polycrisis "Geopolitics of Stuff" https://t.co/BjDbnGAP0q
https://t.co/XyzaI6sKzX

[Margaret O'Mara @margaretomara]

Meanwhile, a reminder that the internet is indeed ultimately a series of tubes

[Tomasz Wlostowski @TomWlost]

Maria's post below and the Bloomberg article on possible circumvention - through Armenia and Kazakhstan - of EU #sanctions on Russia raised some interesting discussion, so I felt it could be useful to unpack some legal issues involved.

(thread)

[Nicholas Mulder @njtmulder]

This is an open call for a Latourian study of sanctions compliance regimes and export controls.

[Nicholas Mulder @njtmulder]

What better illustration of geopolitical actor-network theory than Western worries about imports of breast pumps, washing machines and fridges: by themselves harmless appliances but whose "sub-threshold" components can be reassembled by weapons engineers?

https://t.co/5Rn0aVivgE