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Tag: Chinese

  • Czech Republic bans Chinese AI startup DeepSeek in government work over cybersecurity concerns

    The move follows similar steps by some other countries, including Italy and Australia.

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    The Czech Republic has banned the use of any products by the Chinese artificial intelligence (AI) startup DeepSeek in state administration over cybersecurity concerns, authorities said Wednesday.
    Czech Prime Minister Petr Fiala said the government acted after receiving a warning from the national cybersecurity watchdog. The watchdog flagged a threat of unauthorised access to users’ data because DeepSeek is obliged to cooperate with Chinese state authorities.

    The move follows similar steps made by some other countries that aimed to protect users’ data, including Italy, which in January blocked access to the chatbot, as well as Australia.

    Related

    DeepSeek: Which countries have restricted the Chinese AI company or are questioning it?

    Last month, a German privacy official called on Apple and Google to ban DeepSeek from its app stores over privacy concerns.
    The Czech government has distanced itself from some Chinese technology in recent years. In 2018, it stopped using the hardware and software made by telecommunications companies Huawei and ZTE after a warning they posed a security threat.
    DeepSeek was founded in 2023 in Hangzhou, China, and released its first AI large language model later that year.

  • Apple Accelerates Friendshoring—Your Next iPhone Might Be Crafted in India

    Apple Accelerates Friendshoring—Your Next iPhone Might Be Crafted in India

    Apple Goes “Friend‑Shoring”: iPhones Head to India to Dodge China Tariffs

    Picture this: Apple, the tech giant that loves smooth design and flawless function, is giving its U.S. iPhone production a major makeover. Thanks to the lingering heat of President Trump’s trade war with Beijing, the company plans to move every single U.S.‑market iPhone from China to India starting next year.

    Why the Switch?

    • Tariff tank‑busters. Trump slapped a whopping 145% tariff on Chinese iPhones to keep competitors in check. Apple’s solution? “Friend‑shoring.”
    • Supply chain shuffle. The move tells a clear message: diversify now before tariffs become a permanent pest.
    • Future‑proofing. With a potential 60 million units on the line by 2026, the company’s India factories under Foxconn and Tata Electronics are primed for a U.S.‑market boom.

    Where the Magic Happens

    It’s not like Apple is abandoning China entirely – the heart‑beat of the iPhone still beats there, thanks to Chinese component suppliers. The big difference: the final assembly is happening in Bangalore, Chennai or even Tamil Nadu, depending on the model.

    Remember how the iPhone SE first made its debut from Wistron in Bengaluru back in 2017? Fast‑forward to 2019, the iPhone XR joined the assembly lineup, and by 2022, iPhone 14 production got a Tamil Nadu boost.

    What The Numbers Say

    • U.S. consumers bought 28% of Apple’s 232.1 million global handset shipments in 2024.
    • Local production already quietly curtains the 145% tariffs – no one in the U.S. knows how many phones made it out of India this year.
    Expert Take‑away

    Investment strategist Daniel Newman from the Futurum Group calls the shift “an important move for the company to keep its growth crew on the fast‑track.” He added, “See it unfold in real time? Apple’s speed in adjusting to tariff risk is next‑level.”

    Trump vs. India: A Side Story

    Amid Apple’s logistical drama, Trump slapped a 26% tariff on India, but the penalty was paused within days while trade talks warmed the air. Vice President J.D. Vance, on a field trip to India, proudly announced “very good progress” in US‑India trade talks – a relief for companies on both sides.

    Behind the Curtain

    Supply‑chain giant Sayari shows that Apple India Private Limited is sourcing mainly from China. Even while the headquarter has moved, there’s still that vintage Chinese touch inside the Indian factories.

    Apple’s change of game is more than a logistical tweak. It’s a lesson that in a world of tariffs and geopolitical drama, big tech can keep the wheels turning by being nimble and friendly with wherever the production lines are.

    Apple’s Supply Chain Shuffle

    Tim Cook’s New Game Plan

    Picture this: The Trump‑era trade war was like a reality show that slipped right into Apple’s boardroom. Suddenly, Tim Cook realized that the world of microchips, iPhones, and sleek laptops is a bit like a giant, fragile jigsaw puzzle that just might break apart if you’re not careful.

    Why the Switch?

    • Friend‑Shoring Fever – Moving key parts to nations where the vibe is friendly grabs both talent and trust.
    • The “Re‑Shoring” Twist – Bringing components back home? That’s the next bold move on our radar.
    • Supply‑Chain Resilience – One country, one crisis, one chain breaks: you’ll see the ripple effects.

    Inside the “Friend‑Shoring” Playbook

    Apple’s supply chain decides that “friend” isn’t just a word—it’s a state of mind. Bunch of countries now host parts that used to swing around Beijing. This diversification is both a shield and a good PR story.

    Can “Re‑Shoring” Work Without Breaking the Bank?

    We all love the idea of a faster, smarter production line in the U.S. but let’s be honest: “re‑shoring” has its own potholes. The question isn’t whether people will want it, it’s whether Apple will actually roll the dice.

    • Labor costs ready to climb — but so are the tech workers’ ambitions.
    • Supply crunch? Probably. Yet the upside is that the company can buffer against global politics.
    • Visibility? Tons of intuition. In the right lanes, everything can be sorted.

    For the Love of Resilient Supply Chains

    If you’ve ever seen an iPhone shoot out of the production line, you know the stakes. Apple’s new supply‑chain strategy is less about the technology itself and more about keeping the whole operation humming in a world that feels a bit unpredictable.

    With a mix of humor, steep ambition, and a clear picture of the wins, Tim Cook’s approach is not just about replacing old friends— it’s about defending the future of every single Apple product we can imagine.

  • Los Angeles Port Faces Sharp Traffic Decline as West Coast Reaches Critical Juncture

    Los Angeles Port Faces Sharp Traffic Decline as West Coast Reaches Critical Juncture

    What’s the Deal at the Port of L.A.? A Trade‑Tension Rollercoaster

    In the bustling heart of the Western Hemisphere’s biggest container hub, the Port of Los Angeles is feeling the tug of a possible trade thaw—thanks to a sudden overnight shout from President Trump that might ease the heat with China.

    Why the Port is on the Front Line

    The port’s scheduled import volumes are the first numbers that traders and ship owners read to gauge the health of the trade pipeline. When those numbers slip, it’s a canary in the coal mine for supply chain shuffle.

    Last Week’s Snapshot

    • Week ending May 3 saw a sharp drop of 38.53% day‑over‑day.
    • Year‑over‑year, that volume sank by 9.79%.

    All the Way to the Next Week

    • By May 10, the downward trend kept rolling, with a staggering roughly 35% year‑over‑year decline.

    These numbers paint a picture of a port that’s waiting for a sign that the U.S. trade war is cooling down. If President Trump’s hints turn into real policy moves, LA’s conveyors might pick up the pace again.

    What’s the Bottom Line?

    • The port’s traffic is a key barometer for global trade health.
    • Big drops could signal logistics hiccups or hidden tariffs yet to hit the surface.
    • Meanwhile, market players are keeping an eye on the president’s next move—because even a few raised eyebrows can send shockwaves down the line.

    In short, the Port of Los Angeles is on standby, watching the capital’s chessboard. The coming days will show whether the trade storm has truly mellowed or if the sailors still have to brace for rough seas.

    Tariff Storm Hits US West Coast: What’s Going On?

    The Big 145% Tariff Blow

    After the blast of 145% duties on Chinese imports, the ripple effect has beached itself on the West Coast. The once bustling doors of Long Beach, Los Angeles, Oakland, and Seattle are drying up faster than you can say “logistics.”

    Supply Chain Shocks Begin

    Ken Adamo, analytics chief at DAT Freight & Analytics, recently told CNBC, “We’re in a tipping point on the West Coast.” He added a grim update: “In the past week, more than 700,000 loads have disappeared nationwide, compared with two weeks prior.” This vanishing act coincides neatly with a spike in cancelled ocean sailings.

    Retail Giants Take a Hit

    • Amazon has started pulling orders from its marketplace.
    • Walmart is unloading its forecast—no more displays, whatever that means.
    • Chinese sellers on Amazon are panicking, all because Trump’s “tariff bazooka” just blew the switch off.

    Chinese Logistics in Crisis

    For traders, the game‑changer isn’t just tariffs; the road traffic indicators in China are also about to plunge. Factories have been hit off‑shelf, and the “Liberation Day” tribute saw Chinese port volumes plummet under the weight of Trump’s tariff blitz.

    Carriers Crunch the Numbers

    • Titanic Alliance (Maersk & Hapag Lloyd) shows a 24.39% cancellation rate.
    • Ocean Alliance (CMA CGM, Cosco Shipping, Evergreen, OOCL) sits at 18%.
    • Premier Alliance (Ocean Network Express, Hyundai Merchant Marine, Yang Ming) runs at 15%.
    • MSC and ZIM remain at a 10% cancellation rate.

    Across the board, carriers are juggling the reduced orders that tariffs hammered home against the rising tensions in the trade war. CNBC reported 80 blank sailings coming out of China as demand nosedives.

    Possible Trade War De‑Escalation?

    Trump’s flirtation with easing the trade war could be a silver lining. The IMF noted that these tariffs forced a cut in global growth forecasts, hinting the pendulum might swing back.

    In short—if this keeps up, we could soon find ourselves staring at empty shelves instead of empty inboxes, the real‑world version of a COVID‐style shortage. The stakes are high, the margin for error is thin, and the West Coast is where the drama is unfolding. Stay tuned; this is one headline you’ll want to read twice.

  • Nippon Steel Secures US Steel Acquisition Despite State Pushback

    The pursuit by Nippon Steel of the Pittsburgh-based company has hindered by national security concerns

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    Nippon Steel and US Steel said on Wednesday they have finalised their “historic partnership”, a deal that gives the US government a say in some business matters and comes a year-and-a-half after the Japanese company first proposed its nearly $15bn (€13bn) buyout of the iconic American steelmaker.
    The pursuit by Nippon Steel of the Pittsburgh-based company was buffeted by national security concerns and presidential politics in a premier battleground state, dragging out the transaction for more than a year after US Steel shareholders approved it.

    It also forced Nippon Steel to expand the deal, including adding a so-called “golden share” provision that gives the federal government the power to appoint a board member and have a say in company decisions that affect domestic steel production and competition with overseas producers.
    “Together, Nippon Steel and US Steel will be a world-leading steelmaker, with best-in-class technologies and manufacturing capabilities,” the companies said.
    The combined company will become the world’s fourth-largest steelmaker in an industry dominated by the Chinese, and bring what analysts say is Nippon Steel’s top-notch technology to US Steel’s antiquated steelmaking processes, plus a commitment to invest $11bn (€9.6bn) to upgrade US Steel facilities.
    In exchange, Nippon Steel gets access to a robust US steel market, strengthened in recent years by tariffs under President Donald Trump and former President Joe Biden, analysts say.
    Anthony Rapa, a Blank Rome lawyer in Washington who advises firms on trade, operations and investments, said the government’s intervention in the Nippon Steel-US Steel deal is another sign of a trend that the US is increasingly equating economic security with national security.

    He doesn’t see the government’s intervention as chilling foreign investment and said that using a “golden share” mechanism to ease national security concerns is unlikely to happen frequently — only in sensitive and complex cases.
    Still, the episode could cause investors to be more strategic in how they approach transactions, Rapa said.
    Anil Khurana, executive director of the Baratta Center for Global Business at Georgetown University, said the US government’s interest in the deal is a sign of the growing importance it places on economic competition with China.
    “Clearly the definition of what is national security has expanded to include national economic security, which is where I think this comes in,” Khurana said.

    Nippon Steel and US Steel did not release a copy of the national security agreement struck with Trump’s administration.
    But in a statement on Wednesday, the companies said the federal government will have the right to appoint an independent director and get “consent rights” on specific matters.

    Related

    US Steel and Nippon file lawsuit after Biden blocks merger dealPresident Trump orders review into Nippon Steel’s bid for US Steel

    Those include reductions in Nippon Steel’s capital commitments in the national security agreement; changing US Steel’s name and headquarters; closing or idling US Steel’s plants; transferring production or jobs outside of the US; buying competing businesses in the US; and certain decisions on trade, labour and sourcing outside the US.
    Nippon Steel announced in December 2023 that it planned to buy the steel producer for $14.9bn (€13bn) in cash and debt, and committed to keep the US Steel name and Pittsburgh headquarters.
    The United Steelworkers union, which represents some US Steel employees, opposed the deal, and Biden and Trump both vowed from the campaign trail to block it.
    Biden used his authority to block Nippon Steel’s acquisition of US Steel on his way out of the White House after a review by the Committee on Foreign Investment in the United States.
    After he was elected, Trump changed course, expressing openness to working out an arrangement and ordering another review by the committee.
    That’s when the idea of the “golden share” emerged as a way to resolve national security concerns and protect American interests in domestic steel production.
    As it sought to win over American officials, Nippon Steel began adding commitments. Those included putting US Steel under a board made up of a majority of Americans and a management team of Americans.
    It pledged not to conduct layoffs or plant closings as a result of the transaction or to import steel slabs to compete with US Steel’s blast furnaces in Braddock, Pennsylvania and Gary, Indiana.
    In the final agreement, it pledged to produce and supply US Steel from domestic sources — such as mining operations in Minnesota — and to allow US Steel to pursue trade actions under US law.
    It also made a series of bigger capital commitments in US Steel facilities, tallying $11bn (€9.6bn) through 2028, it said.
    Nippon Steel said its annual crude steel production capacity is expected to reach 86mn tons, closer to its goal of 100mn tons.
    The United Steelworkers on Wednesday noted that its current labour agreement with US Steel expires in 2026.
    “Rest assured, if our job security, pensions, retiree health care or other hard-earned benefits are threatened, we are ready to respond with the full strength and solidarity of our membership,” its international president, David McCall, said in a statement.