Tag Archives: China suppy chain

China’s Nuclear Triad: Land, Sumbarines and Bombers

Based on United States Report released in 2020 “Military and Security Developments Involving the People’s Republic of China” by the Secretary of Defense, China’s progress in upgrading its strategic bombers to carry nuclear payloads puts it on the cusp of achieving a “triad” of delivery systems ((1) land-launched nuclear missiles, (2) nuclear-armed submarines, and (3) aircraft delivered nuclear bombs).  The development of a nuclear triad raises the long-term stakes in the complex relationship between Beijing and Washington. …The heavy emphasis on China’s nuclear improvements will probably be used by the Pentagon to press lawmakers and the public to support the massive reinvestment already underway in modernized nuclear weapons. This includes the B-21 bomber, an $85 billion Ground Based Strategic Deterrent ICBM program and the $128 billion Columbia-class ballistic missile submarine.

China’s defense ministry denounced the report as a document created with a “zero-sum-game mindset and Cold War mentality,” saying that the U.S. had “misinterpreted” the country’s nuclear policy and stirred up confrontation with Taiwan. “It’s extremely wrong and China firmly rejects it.”  As part of President Xi Jinping’s efforts to build a “world class” military by 2049, the Defense Department report said the People’s Liberation Army has already achieved parity with or exceeded the U.S. in at least three key areas: shipbuilding, land-based conventional ballistic and cruise missiles and integrated air defense systems.

While the country has one overseas military base, in the East African nation of Djibouti, China’s government “is very likely already considering and planning for additional overseas military logistics facilities to support naval, air and ground forces…”.  China’s current nuclear arsenal includes 100 silo or road-mobile intercontinental ballistic missiles, as many as six Jin-class nuclear missile submarines capable of carrying 12 missiles each and a new air-refuelable H-6N long-range bomber. The bomber is an upgrade on a previous model and comes with a modified fuselage “that allows it to carry either a drone or an air-launched ballistic missile that may be nuclear-capable. 

Excerpts from Anthony Capaccio, Pentagon Warns China Is Nearing a Milestone in Nuclear Weapons Buildup, Bloomberg, Sept. 1, 2020

China denounced the Pentagon report. According to Xinhua, the Pentagon report is crowded with anti-China hogwash. Fear-mongering over China has always been the Pentagon’s trick to demand more appropriations from the U.S. Congress. A fabricated grave threat to world peace can also help Washington sell more weapons to its allies, and serves as an excuse for America’s pursuit of global domination…While Washington is selling its latest “China-scare” fiction to the world, it is hard to overlook such facts that the United States spent more on military than 144 countries combined in 2018 and maintains nearly 800 military bases in over 70 countries.

Excerpt from Commentary: Lies, conspiracies behind Pentagon’s China military report, Xinhua, Sept. 5, 2020


Trade in Human and Animal Hair in the 21st Century

“My outfit for the day determines what hair I will be wearing,” says Olayinka Titilope, a Nigerian wigmaker. She has a different peruke for each day of the month…She sells wigs for between $60 and $800. Those at the top end are made of human hair from Cambodia, she says.  Some African feminists argue that to wear a long, straight-haired wig or hair extension is to grovel to Western ideals of beauty. Yet wig-buyers in Nigeria seem to enjoy variety. Sellers advertise hair from everywhere. Brazilian is praised for its sheen and durability; Vietnamese, for its bounce; Mongolian, because it is easy to curl. One seller in Lagos offers “Italian posh hair” which is supposedly odour-free. Whatever the label says, much of the hair really comes from elsewhere, often China, a source some buyers deem downmarket.

It is hard even for the most conscientious hair-traders to trace where their wares came from. Most of the hair that reaches Africa travels via factories in China, where it is sorted and often treated, dyed or curled. Bundles of human hair may be bulked up with horse mane or goat thatch….“The demand for hair generally exceeds supply, fuelling an almost constant sense of scarcity,”…

In the past decade Myanmar has quadrupled the volume of hair it ships out and is now the world’s fourth-largest exporter. Nay Lin, a hair-trader in the former capital, Yangon, says he knows when the economy is bad because more women turn up at his shop to sell their tresses. …Some 500km north of Yangon, in the town of Pyawbwe, farmers who once harvested onions and chillies now spend their days unpicking hairballs. These are often gathered by door-to-door collectors, who buy hair from people’s combs and bathroom plugs. Some hairballs arrive in sacks from India and Bangladesh. Workers in Pyawbwe (which has earned the nickname “Hair City”) make about $1.20 a day untangling them and removing lice or white strands. This hair is so common in Chinese factories that it is referred to as “standard hair”. It costs more than the fake stuff, but less than locks cut straight from a head. “We call that stuff factory trash,” scoffs Ms Titilope, who insists that none of it goes into her products…

Excerpts from Nigeria’s demand for fancy wigs fuels a global trade, Economist, Aug. 15, 2020

Made in China, Always? COVID-19, the Survival of Resilience

As they walk through the valley of the shadow of death brought by COVID-19 chief executives and corporate strategists are beginning to look to the post-covid world to come. What they think they see, for good or ill, is an acceleration. Three existing trends—the deglobalisation unpicking the business world that grew up in the 2000s; the infusion of data-enabled services into ever more aspects of life; a consolidation of economic power into the hands of giant corporations—look likely to proceed at a faster rate than before, and perhaps to go further, too…

China’s government may encourage its state-owned firms to go global by buying distressed car companies in Europe. The share price of Daimler is less than half what it was when Geely, a Chinese carmaker, bought a 10% stake in 2018. Car companies may also see offers from technology giants keen to improve co-operation between metal bashers and the engineers of autonomy—currently wary at best. The healthier airlines, such as Qantas and IAG, owner of British Airways, will snap up airport slots from their bankrupt rivals and may try to acquire others only just staying aloft. Private-equity firms, which have mountains of committed investor cash, may start buying up fundamentally sound but impecunious suppliers in various industries, aware that when demand returns such companies will see its first fruits…

In 2019 many global firms sought to reduce their dependency on China. One of their favoured strategies was to put more business into factories elsewhere in Asia.  But the acute stage of China’s covid-19 crisis made it clear how essential China remains as a provider of inputs to such factories elsewhere in Asia and around the world. “What people thought was a global supply chain was a Chinese supply chain,”…

Joerg Wuttke, president of the EU Chamber of Commerce in China, says that if there is one lesson people are drawing from the pandemic in this regard it is that “single source is out and diversification is in.” In other words, companies do not just need suppliers outside China. They need to build out their choice of suppliers, even if doing so raises costs and reduces efficiency

Excerpts from Sinking, Swimming and Surfing, Economist,  Apr. 11, 2020, at 13