Today’s notes link top headlines from various news sources throughout the day. I’m gradually trying to distill the signal from the noise. For now, this will require parsing through a great deal of noise.
Headlines are more diverse in 2024 than during the pandemic years from 2020-2022.
The United States and the world appear to be facing various ongoing and emerging crises. Domestic political turmoil persists within the United States and other countries.
The United States, under the Biden administration, defines China as a “pacing threat.”
Is President Biden attempting to position Intel as America’s national champion?
United States China Policy
Official Talks DOD Policy Role in Chinese Pacing Threat, Integrated Deterrence (US Department of Defense)
The top priority for the department is getting China right, Kahl said. Austin has described China as America's pacing threat, and the undersecretary spelled out what this means to members of the DOD. "It means that China is the only country that can pose a systemic challenge to the United States in the sense of challenging us, economically, technologically, politically and militarily," he said.
US-India Relations
India 'screwed up': How the U.S. lobbied New Delhi to reverse laptop rules (Reuters)
The U.S. government emails - obtained under a U.S. open records request - underline the level of alarm the Indian curbs caused in Washington, and how the U.S. scored a rare lobbying win by persuading Prime Minister Narendra Modi's usually inflexible government to reverse policy.
U.S. officials have often been concerned about India's sudden policy changes which they say create an uncertain business environment. India maintains it announces policies in the interest of all stakeholders and encourages foreign investments, even though it often promotes local players over foreign ones.
US Semiconductors
What $8.5 Billion Can Buy: Biden Aims to Bolster Chip Manufacturing (New York Times)
President Biden’s announcement on Wednesday of an $8.5 billion federal grant to Intel to build some of the world’s most advanced computer chips is one of the most remarkable American experiments in industrial policy since Dwight D. Eisenhower used federal funds to build the nation’s highway system.
Intel Receives $8.5 Billion in Grants to Build Chip Plants (New York Times)
“Nearly all manufacturing of leading-edge chips across the entire industry moved overseas to Asia years ago,” Mr. Biden said. “That’s why today’s investment is such a big deal: We will enable advanced semiconductor manufacturing to make a comeback here in America.”
Global Shipping Crisis*
*Also known as the Red Sea shipping crisis
Somali pirates return, adding to global shipping crisis (Reuters)
As a speed boat carrying more than a dozen Somali pirates bore down on their position in the western Indian Ocean, the crew of a Bangladeshi-owned bulk carrier sent out a distress signal and called an emergency hotline.
No one reached them in time. The pirates clambered aboard the Abdullah, firing warning shots and taking the captain and second officer hostage, Chief Officer Atiq Ullah Khan said in an audio message to the ship's owners.
What are the impacts of the Red Sea shipping crisis? (JP Morgan)
With 30% of global container trade passing through the Suez Canal, the Red Sea shipping crisis is upending supply chains. This is compounded by the ongoing shipping disruptions caused by blockages in the Panama Canal, which is experiencing one of the region’s worst droughts since the 1950s.
“The lengthening of supplier delivery times acts as an adverse supply shock. The rerouting of ships around Africa’s Cape of Good Hope equates to a roughly 30% increase in transit times, and this implies an approximately 9% reduction in effective global container shipping capacity,” said Nora Szentivanyi, a Senior Economist at J.P. Morgan.
Photo by Shubham Dhage on Unsplash