Astra Diligence

Honda and Nissan are understood to have held exploratory talks about a potential merger to help them compete against electric vehicle (EV) makers, particularly in China. The discussions are understood to be in the early stages and there is no guarantee that a deal will be agreed. Earlier this year, the two Japanese car makers agreed to explore a strategic partnership for EVs. #EV #honda #Nissan #JapanBusiness #Automobile #ChinaBusiness #Merger #ElectricVehicle

A review of Chinese-language public sources found that the state-run China Daily published an article about Yang Tengbo in March 2021, which described him as an Executive Chairman of the Chinese Chamber of Commerce in the UK and a representative of overseas Chinese attending the Second Session of the 13th National Committee of the Chinese People's Political Consultative Conference (CPPCC), a key political advisory body in China which states that its main functions include “the handling of state affairs.” The said China Daily article noted that Yang "strongly feels the superiority of the Chinese system" during the global covid pandemic and told the news outlet that, during the 14th Five Year Period (2021-2025), China "will undoubtedly have an unprecedented influence globally."

Last night, the Spanish national TV channel La 1 reported extensively about Stellantis and China's CATL teaming up to build a EUR 4.1 billion (USD 4.3 billion) large-scale lithium iron phosphate battery plant in Zaragoza in northeastern Spain. The 50/50 joint venture is expected to be up and running by the end of 2026 and could reach a capacity of 50 GWh. The Prime Minister of Spain, Pedro Sánchez, said on his X account that he was "very satisfied with the news". The decision to award the factory to Spain comes after it abstained on a vote to impose additional EU tariffs on Chinese EV imports. Prime Minister Pedro Sanchez has also urged the EU to reconsider penalising Chinese-made EVs to avoid a trade war. Two months before the Stellantis-CATL investment deal in Spain, one of China's largest wind turbine makers, Envision Group, also signed a deal with the Spanish government under which Envision would build a USD 1 billion plant in Spain to manufacture machinery used for the production of green hydrogen. #CATL #Stellantis #JointVenture #Battery #ElectricVehicle #EVs #Manufacturing #Spain #ForeignInvestment #ImportsandExports #Tariff #EU #CrossBorderTrade #ChinaBusiness

Today, China’s State Administration for Market Regulation announced that it has launched an investigation into Nvidia over potential violations of antitrust law during its acquisition of Mellanox Technologies, an Israeli company that makes computer networking equipment. Nvidia’s shares fell 2.2% in pre-market trading in New York after the Chinese regulator’s announcement. The move comes a week after the Biden administration expanded restrictions on the sale of advanced US technology to China. Since then, Beijing has announced that it would ban the export of several rare minerals to the US and also imposed sanctions on more than a dozen American defence firms and defence industry executives. #Nvidia #China #Antitrust #Investigations #Regulatory #SinoUSTradeWar #geopolitics #exportcontrol #semiconductor #technology https://lnkd.in/dka8hYbV

China has banned shipments to the US of several minerals and metals used in semiconductor manufacturing and military applications including gallium, germanium, antimony, and superhard materials, in a rapid retaliation against new export controls imposed on Chinese firms by the US earlier this week. Separately, four major Chinese trade associations that represent the Internet, auto, semiconductor, and communications industries reacted to the US moves by telling members to reduce purchases of American chips. The US controls unveiled on Monday included tougher restrictions on the export of critical semiconductor manufacturing tools and a ban on exports to China of advanced high bandwidth memory (HBM) chips, a crucial component in artificial intelligence products. Washington also added 136 Chinese companies to a US trade blacklist, including major Apple and Samsung supplier Wingtech, which had been working to buy up foreign semiconductor technology in recent years. https://lnkd.in/dCskdtwc #exportcontrol #ChinaUSTradeWar #semiconductor #manufacturingtools #artificialintelligence #sanctions #regulatorycompliance #importandexport #hightech #Internet #automotive #minerals #metals #military #nationaldefence #blacklists #sanctionslists #mobilephones #supplychainriskmanagement #HBMchips

Earlier this week, Volkswagen Group announced that it would sell its operations in China's Xinjiang region after years of mounting pressure from rights groups. At the same time, the automaker announced that it signed an agreement to extend its joint venture partnership with the Chinese state-owned SAIC Motor by a decade to 2040 with a focus on accelerating electrification and intelligent vehicle technologies. Media reports noted that Volkswagen stakeholders including the state of Lower Saxony, the company’s second-largest shareholder, welcomed the sale of the said plant. Top 20 shareholder Deka Investment, one of several investors who had been pressuring the carmaker to divest from Xinjiang, said the exit would bring controversial discussions to an end with minimal financial impact. #Volkswagen #automobile #sustainability #humanrights #ethicalbusiness #chinabusiness #electricvehicles #EV #intelligentvehicle #manufacturing #supplychainduediligence #labourrights

A powerful bipartisan group that advises the US Congress on China has proposed some of the most aggressive legislative moves yet to tackle what they believe are mounting economic and security risks posed by China. On 14 November 2024, Rep. John Moolenaar, chair of the House Select Committee on the Chinese Communist Party, introduced the Restoring Trade Fairness Act, seeking to suspend China’s Permanent Normal Trade Relations (“PNTR”) status. This comes after a group US Senators, including Marco Rubio, Tom Cotton, and Josh Hawley, introduced an identical bill in the Senate earlier this year, the Neither Permanent Nor Normal Trade Relations Act. The Restoring Trade Fairness Act, if enacted, would significantly impact the US-China trade relationship and would very likely cause disruptions in supply chains. China would almost certainly retaliate with its own tariffs and trade barriers, further escalating trade tensions. Key points of the Act are as follows: 1) 𝗧𝗵𝗲 𝗔𝗰𝘁 𝘀𝗲𝗲𝗸𝘀 𝘁𝗼 𝘀𝘂𝘀𝗽𝗲𝗻𝗱 𝗖𝗵𝗶𝗻𝗮'𝘀 𝗣𝗡𝗧𝗥 𝘀𝘁𝗮𝘁𝘂𝘀, 𝘄𝗵𝗶𝗰𝗵 𝘄𝗮𝘀 𝗴𝗿𝗮𝗻𝘁𝗲𝗱 𝗶𝗻 𝟮𝟬𝟬𝟭. This would result in Chinese goods being subjected to duties at rates specified in column 2 of the Harmonized Tariff Schedule (HTS) of the US, from a minimum of 35% and up to 100% for specified articles mentioned in Section 10 the Act. These increases would be phased in over five years, with initial increases starting 180 days after the Act's enactment. 2) 𝗧𝗵𝗲 𝗔𝗰𝘁 𝗴𝗿𝗮𝗻𝘁𝘀 𝘁𝗵𝗲 𝗨𝗦 𝗣𝗿𝗲𝘀𝗶𝗱𝗲𝗻𝘁 𝗮𝘂𝘁𝗵𝗼𝗿𝗶𝘁𝘆 𝘁𝗼 𝗳𝘂𝗿𝘁𝗵𝗲𝗿 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲 𝗱𝘂𝘁𝗶𝗲𝘀 𝗼𝗻 𝗖𝗵𝗶𝗻𝗲𝘀𝗲 𝗴𝗼𝗼𝗱𝘀 𝗯𝗲𝘆𝗼𝗻𝗱 𝘁𝗵𝗲 𝗺𝗮𝗻𝗱𝗮𝘁𝗲𝗱 𝗺𝗶𝗻𝗶𝗺𝘂𝗺𝘀 𝗶𝗳 𝗱𝗲𝗲𝗺𝗲𝗱 𝗻𝗲𝗰𝗲𝘀𝘀𝗮𝗿𝘆 𝘁𝗼 𝗰𝗼𝘂𝗻𝘁𝗲𝗿𝗮𝗰𝘁 𝗨𝗦 𝗱𝗲𝗽𝗲𝗻𝗱𝗲𝗻𝗰𝗲 𝗼𝗻 𝗖𝗵𝗶𝗻𝗲𝘀𝗲 𝗶𝗺𝗽𝗼𝗿𝘁𝘀 𝗼𝗿 𝘁𝗼 𝗽𝗲𝗻𝗮𝗹𝗶𝘀𝗲 𝗖𝗵𝗶𝗻𝗮 𝗳𝗼𝗿 𝘂𝗻𝗳𝗮𝗶𝗿 𝘁𝗿𝗮𝗱𝗶𝗻𝗴 𝗽𝗿𝗮𝗰𝘁𝗶𝗰𝗲𝘀. The US President could also impose quotas to progressively eliminate US reliance on Chinese imports or prohibit the importation of specific articles based on national security threats, human rights violations, or unfair trade practices. 3) 𝗧𝗵𝗲 𝗔𝗰𝘁 𝗮𝗹𝘀𝗼 𝗰𝗮𝗹𝗹𝘀 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗲𝘀𝘁𝗮𝗯𝗹𝗶𝘀𝗵𝗺𝗲𝗻𝘁 𝗼𝗳 𝗮 𝘁𝗿𝘂𝘀𝘁 𝗳𝘂𝗻𝗱 𝗳𝗶𝗻𝗮𝗻𝗰𝗲𝗱 𝗯𝘆 𝗱𝘂𝘁𝗶𝗲𝘀 𝗰𝗼𝗹𝗹𝗲𝗰𝘁𝗲𝗱 𝗼𝗻 𝗖𝗵𝗶𝗻𝗲𝘀𝗲 𝗶𝗺𝗽𝗼𝗿𝘁𝘀. This fund would be used to: a) compensate US producers for losses resulting from Chinese retaliatory actions; b) purchase agricultural commodities that US producers are unable to export to China due to retaliatory measures; c) acquire articles from critical industries, such as semiconductors, mineral fuels, and aircraft, affected by Chinese retaliation; d) fund the Department of Defence's acquisition of munitions to defend Taiwan and other US allies in the Indo-Pacific region. #SinoUSRelation #tradewar #crossbordertrade #legislation #supplychain #importandexport #Chinabusiness #geopolitics #riskassessment #supplychainriskmanagement

Astra Diligence will be attending the United Nations Forum on Business and Human Rights in Geneva next week. We look forward to reconnecting with familiar faces and building new connections with industry professionals and organisations. If you are attending as well, let’s connect and make the most of this opportunity together! Feel free to drop us a message if you'd like to arrange a meeting during the event. See you in Geneva! #UNForumBHR #BusinessAndHumanRights #Sustainability #SupplyChainIntegrity #SupplyChainDueDiligence #SupplyChainRiskManagement #Networking

Solar panels shipped from a Mexico factory by manufacturer Maxeon Solar - a Singapore-based solar energy firm - have been blocked from entry to the US market by Customs and Border Patrol (CBP). In early September, Maxeon reported that CBP detained solar panels imported from its module factories in Ensenada and Mexicali, Mexico, for the first time. The company explained that the US authorities were trying to determine whether the panels comply with the UFLPA. Maxeon has now filed a request for further review with the CBP. Maxeon’s CEO said that“CBP has found no evidence of non-compliance with the UFLPA…Nonetheless, the Partnership track of CBP Electronics Center of Excellence and Expertise has decided to bar entry of our products…None of our supply chains involve entities on the UFLPA list, two of our supply chains do not even enter China, and yet the reviewers have declined to make the appropriate determination that UFLPA does not apply…” In July this year, three different Maxeon products manufactured in Mexico were detained by the CBP. Since then, all shipments have been excluded. This is despite Maxeon’s claims that it has established the supply chains for each component, from quartz to module, outside the scope of the UFLPA. #SolarModule #SolarPV #SolarPanel #Maxeon #UFLPA #SupplyChainIntegrity #SupplyChainDueDiligence #RenewableEnergy #GreenEnergy #CustomsandBorderPatrol #CBP #ExportandImport #SolarEnergyMarket https://lnkd.in/dM96QZUJ

Albemarle, the world’s largest lithium producer, says it is not economically viable to build a supply chain in North America and Europe that could end reliance on China for critical minerals. “We were trying to pivot to the west . . . the prices we see in the market don’t really allow us to do that,” Kent Masters, CEO of Albemarle, told the Financial Times, adding that the US was “absolutely” at risk of losing the race to compete with China on lithium. While the US Inflation Reduction Act included tax credits to encourage the sourcing of non-Chinese sourced materials and domestic production, Albemarle says the law has not accelerated the buildout of a supply chain down to the minerals sector. Last year, China made up 65% of the world’s refining capacity of lithium and is expected to generate more than half of the world’s supplies through 2040, according to the International Energy Agency. #lithium #supplychain #criticalminerals #china #EV #greenenergy #RenewableEnergy https://lnkd.in/ewvaS9Hf