Trade Archive

Last week, Samsung announced that the rollout of its new Galaxy Note smartphone would be delayed, warning of a “serious imbalance” in the chip industry. It’s just the latest impact of a global shortage in the supply of semiconductor chips, caused by a unique combination of the coronavirus, climate change and Donald Trump. Semiconductors are the brains of all things electronic. Like the brain, they perform different functions—memory, processing—and range in sophistication from standard, repetitive routines to high-performance chips that can support machine learning, artificial intelligence and high-end graphics. All things electronic these days are pretty much all things chips. […]

When BTS performed its smash hit “Dynamite” for the first time at MTV’s Video Music Awards in August, the seven-member South Korean pop group was unable to fly to New York City for the ceremony due to the coronavirus pandemic. Instead, it intended to film its part of the show outdoors, to “show everyone the scenery in Seoul,” one of its vocalists, Jin, told Vogue. But summer rain got in the way of that plan, so it ended up recording its performance in front of giant green screens. Seven months later, still unable to visit the U.S., the group finally […]

In retrospect, the early 2000s can be considered, if not the high-water mark, then the golden age of contemporary globalization. Liberalized trade had achieved a quasi-theological status, with the catalogue of its benefits—both real and anticipated—extending far beyond its strictly economic impact. Trade, it was argued, would allow countries in the developing world to lift their populations out of poverty and into the “global middle class.” With this new affluence would come greater expectations for effective governance, generating protean demands for accountability that would eventually lead to political liberalization in countries where authoritarianism was the rule. Meanwhile, the lowered barriers […]

The World Trade Organization made history last month when its members chose Ngozi Okonjo-Iweala as director-general, the first woman and first African to hold that position. A former Nigerian finance minister and senior World Bank official, Okonjo-Iweala enjoyed near-unanimous support, but her candidacy had been stalled by opposition from the Trump administration. One of President Joe Biden’s early actions after taking office in January, however, was to reverse Donald Trump’s veto and join the consensus behind her appointment. That, along with Biden’s overall preference for multilateral cooperation over unilateralism, opens space for the WTO to get out of the cul […]

Depending on who you ask, there are either good reasons to panic about China one day weaponizing its dominance of the market for rare earth elements, or to think that the risk is overblown. Judging from President Joe Biden’s executive order last week calling for a major 100-day review of U.S. strategic supply chains, including rare earths, in order to spur domestic production, Washington is starting to take that risk more seriously than ever. That could be a very good thing, not only for the United States but for the world. There is no debating that the coming shift to […]

Editor’s Note: Every Wednesday, WPR contributor Rachel Cheung and Assistant Editor Benjamin Wilhelm curate the week’s top news and expert analysis on China. Subscribers can adjust their newsletter settings to receive China Note by email every week. Pineapples are the latest product to land in China’s crosshairs, as its deteriorating relationship with Taiwan spills over into trade. For years, Taiwanese farmers have made handsome profits selling their pineapples to Chinese consumers, expanding their fields each year. Even as cross-strait relations soured, they ignored warnings about their overreliance on the Chinese market. That all came to an end this week, as […]