Edward Conard

Top Ten New York Times Bestselling Author

  • “Unintended Consequences should be read by anyone who takes for granted the superiority of progressive taxation and has not thought carefully about the trade-offs involved.” - The New Republic
  • “…a very valuable contribution.” - Larry Summers, former Secretary of the Treasury and director of the National Economic Council, president emeritus, Harvard University
  • “…reminds us that inequality sends a signal of what society lacks most, in America’s case, entrepreneurship and risk taking.” - Lawrence Lindsey, CEO, The Lindsey Group, former Director of the National Economic Council
  • “…challenges misconceptions that distort our economic debates.” - Arthur Brooks, President of the American Enterprise Institute
  • “Unintended Consequences is full of substance, it is one of the must-read books of the year, and once I finish it I will be giving it a second read through right away.” - Tyler Cowen, Professor, George Mason University
  • “…a comprehensive explanation of the modern economy.” - Julian Robertson, Founder, Tiger Management
  • “A full-throated defense of economic dynamism.” - The Wall Street Journal
  • “Unintended Consequences is far smarter and more thought-provoking than most economics written for the general public” - Greg Mankiw, Harvard University, Former Chairman of the Council of Economic Advisors
  • “Unintended Consequences represents the most cogent and persuasive analysis of the Financial Crisis to date.” - Andrei Shleifer, 1999 John Bates Clark Medal Winner
  • “…serious thinking for serious thinkers. …a thought-provoking blueprint for growing middle- and working-class incomes.” - Mitt Romney, former Governor of Massachusetts
  • “Unintended Consequences provides a provocative interpretation of the causes of the global financial crisis and the policies needed to return to rapid growth. Whether you agree or not, this analysis is well worth reading.” - Nouriel Roubini, New York University; Chairman, Roubini Global Economics
  • “…a very valuable contribution.” - Larry Summers, former Secretary of the Treasury and director of the National Economic Council, president emeritus, Harvard University
Upside of Inequality Oxford Unintended Consequences

Macro Roundup


Monday, April 17, 2023

AI Summary. The United Nations projects India's population will surpass China's, reaching 1.429bn versus China's 1.426bn, with both far above the United States at a projected 340m. India's population is projected to keep growing for four decades, peaking near 1.7bn in 2063.

Shan Li and Liyan Qi Wall Street Journal
Date Posted:

According to the UN, India’s population will overtake China’s this year if it hasn’t already. India’s population isn’t expected to peak until 2063.

Is India set to become the world's most populous country?

Core argument: The U.N. projects India's population will reach 1.429 billion by the end of the year, surpassing China's 1.426 billion and pushing China into second place.

The United Nations has said India’s population is projected to surpass China’s sometime this year. Many demographers estimate it could happen this month, if it hasn’t already. India’s population is expected to reach 1.429 billion by the end of the year, according to the U.N. China will fall to second place, with 1.426 billion people. Both dwarf the U.S. at a projected 340 million. India’s population is expected to keep growing for the next four decades, peaking at nearly 1.7 billion in 2063.

Takeaways by Macro Roundup® AI

  1. The U.N. projects India's population will reach 1.429 billion by the end of the year, surpassing China's 1.426 billion and pushing China into second place.
  2. India and China each dwarf the United States, whose population is projected at 340 million.
  3. India's population is expected to keep growing for the next four decades, peaking at nearly 1.7 billion in 2063.

AI Summary. Apple assembled more than $7bn of iPhones in India in a fiscal year, tripling output and lifting India's share to almost 7% of global iPhone production from an estimated 1%, as the company expands assembly partners including Foxconn and Pegatron beyond China.

Sankalp Phartiyal Bloomberg
Date Posted:

Apple made almost 7% of its iPhones in India last fiscal year, up from 1% in 2021 as it moves production out of China.

Apple made almost 7% of its iPhones in India last fiscal year, up from 1% in 2021 as it moves production out of China.

Is iPhone assembly shifting from China to India?

Core argument: Apple assembled more than $7 billion of iPhones in India last fiscal year, tripling production there as the company accelerated a move beyond China, according to people familiar with the matter.

Apple assembled more than $7 billion of iPhones in India last fiscal year, tripling production in the world’s fastest-growing smartphone arena after accelerating a move beyond China. The US company now makes almost 7% of its iPhones in India through expanding partners from Foxconn Technology Group to Pegatron Corp., people familiar with the matter said. That’s a significant leap for India, which accounted for an estimated 1% of the world’s iPhones in 2021.

Takeaways by Macro Roundup® AI

  1. Apple assembled more than $7 billion of iPhones in India last fiscal year, tripling production there as the company accelerated a move beyond China, according to people familiar with the matter.
  2. India now accounts for almost 7% of iPhones Apple makes, up from an estimated 1% of the world's iPhones in 2021, according to people familiar with the matter.
  3. Apple's Indian iPhone assembly runs through expanding partners from Foxconn Technology Group to Pegatron Corp. in what is the world's fastest-growing smartphone market.

AI Summary. Financial Times research identified more than 75 large-scale US manufacturing announcements following the passage of American semiconductor and clean-energy subsidy laws, with companies committing roughly $204bn to boost semiconductor and clean-tech production and promising at least 82,000 jobs. That is almost double the capital spending commitments made in those sectors two years earlier.

Amanda Chu and Oliver Roeder Financial Times
Date Posted:

The @FT has identified more than 75 large-scale manufacturing projects announced in the US in the aftermath of the passage of the Chips and Inflation Reduction Acts. More than 75% of this investment is heading to GOP-held Congressional districts.

Are manufacturing subsidies driving a surge in US factory investment?

Core argument: Companies have committed roughly $204bn to large-scale US semiconductor and clean-tech manufacturing projects as of April 14, promising to create at least 82,000 jobs, according to Financial Times research.

The US appears poised for a manufacturing boom as companies tap into Biden administration subsidies with pledges to spend tens of billions of dollars on new projects, according to Financial Times research.  The FT identified more than 75 large-scale manufacturing announcements in the US since the passage of the Chips Act and the Inflation Reduction Act. Companies have committed roughly $204bn in large-scale projects to boost US semiconductor and clean-tech production as of April 14, promising to create at least 82,000 jobs. While not all these projects were a direct result of the passage of these bills, they will probably be eligible for the tax credits. The amount is almost double the capital spending commitments made in the same sectors in 2021 and nearly 20 times the amount in 2019.

Takeaways by Macro Roundup® AI

  1. Companies have committed roughly $204bn to large-scale US semiconductor and clean-tech manufacturing projects as of April 14, promising to create at least 82,000 jobs, according to Financial Times research.
  2. The $204bn in commitments is almost double the capital spending pledged in the same sectors in 2021 and nearly 20 times the 2019 amount, according to Financial Times research.
  3. The Financial Times identified more than 75 large-scale US manufacturing announcements since passage of the Chips Act and the Inflation Reduction Act, noting not all resulted from the bills though they will probably be eligible for the tax credits.

AI Summary. Germany had 28 companies in the Fortune 500 in 2020, fewer than China's 134, America's 130, Japan's 62 and France's 40, but it has more than a thousand mid-sized firms ranking in the top three of their global niches. These "Mittelstand" companies account for the overwhelming majority of German businesses and about 60% of all jobs.

Adrian Wooldridge Bloomberg
Date Posted:

Germany’s Mittelstand are well positioned to continue to thrive as their relatively small global niches may help insulate them from new entrants. @markets

Can mid-sized niche leaders outweigh large corporations in an economy?

Core argument: Germany had only 28 Fortune 500 companies in 2020, against China's 134, America's 130, Japan's 62 and France's 40, yet more than 1,000 German firms rank in the top three of their respective markets.

The real engine of the German economy is not the big corporations but middle-sized companies that you’ve probably never heard of — companies that management gurus have dubbed “mighty minnows” (Tom Peters), or “hidden champions” (Herbert Simon) and the Germans call the “Mittelstand.” Germany only had 28 companies in the Fortune 500 in 2020 compared with China’s 134, America’s 130, Japan’s 62 and France’s 40. But it has more than a thousand companies that rank in the top three in their respective markets. Poeschl Tabak GmbH has 50% of the world market in snuff, for example; Flexi has 70% of the market for retractable dog leads. All told, the Mittelstand accounts for the overwhelming majority of businesses in Germany, and some 60% of all jobs. These companies are “hidden” in three senses: They dominate tiny global niches; they prefer to keep themselves to themselves and they are usually located in small towns.

Takeaways by Macro Roundup® AI

  1. Germany had only 28 Fortune 500 companies in 2020, against China's 134, America's 130, Japan's 62 and France's 40, yet more than 1,000 German firms rank in the top three of their respective markets.
  2. Germany's Mittelstand accounts for the overwhelming majority of the country's businesses and some 60% of all jobs, and serves as the real engine of the German economy rather than its big corporations.
  3. German niche leaders include Poeschl Tabak GmbH with 50% of the world snuff market and Flexi with 70% of the market for retractable dog leads, firms dubbed "mighty minnows" by Tom Peters and "hidden champions" by Herbert Simon.

AI Summary. France's constitutional council validated most of a law raising the minimum retirement age from 62 to 64, ruling it valid under the constitution and legally enacted. Turnout for labour-led marches and strikes against the reform has shrunk.

Akila Quinio and Leila Abboud Financial Times
Date Posted:

The French constitutional court approved Macron’s pension reform. Protests are still ongoing but have dissipated in recent weeks. @ft

The French constitutional court approved Macron’s pension reform. Protests are still ongoing but have dissipated in recent...

Has a legal challenge stopped a higher retirement age?

Core argument: France's nine-member constitutional council validated most of Emmanuel Macron's pension law, whose central measure raises the minimum retirement age from 62 to 64, ruling it valid under the constitution and enacted legally.

Emmanuel Macron’s plan to raise France’s retirement age cleared a final hurdle on Friday after the highest constitutional authority validated most of the draft law, marking a political victory for the president after months of protests over his unpopular reform. France’s nine-member constitutional council ruled that most of the proposed law, whose central measure is to raise the minimum retirement age from 62 to 64, was valid under the constitution and enacted legally. Some of the clashes have since dissipated, and turnout for the labour-led marches and strikes has shrunk in recent weeks, fuelling the government’s hopes that they could wait out the anger.

Takeaways by Macro Roundup® AI

  1. France's nine-member constitutional council validated most of Emmanuel Macron's pension law, whose central measure raises the minimum retirement age from 62 to 64, ruling it valid under the constitution and enacted legally.
  2. The ruling clears the final hurdle for Macron's retirement plan, marking a political victory after months of protests over his unpopular reform.
  3. Turnout for labour-led marches and strikes has shrunk and some clashes have dissipated, fuelling the French government's hopes that it could wait out the anger.

AI Summary. The United Nations refugee agency counted 116,868 Chinese asylum seekers worldwide at a point in mid-2022, up from 15,362 at the end of 2012. Panama migration data show 3,855 Chinese migrants crossed the Darién Gap in one quarter, versus 2,005 in all of 2022 and 376 total from 2010 to 2021.

Wenxin Fan and Shen Lu Wall Street Journal
Date Posted:

The number of Chinese citizens attempting to enter the United States illegally hit an all-time high, with 2,410 apprehensions along the southwest boarder through February 2023. @WSJ

How many Chinese are seeking asylum abroad now?

Core argument: The U.N. refugee agency counted 116,868 Chinese seeking asylum worldwide at a point measured in mid-2022, up from 15,362 at the end of 2012, the year Xi Jinping took power; China's population is around 1.4 billion.

The United Nations refugee agency counted 116,868 Chinese seeking asylum around the world at a point measured in mid-2022, up from 15,362 at the end of 2012, the year Mr. Xi took power. The U.N. numbers don’t include Chinese who enter other countries using work, tourist or other types of visas—often people with more assets and education—which have also increased in the past decade. China has a population of around 1.4 billion. In the first three months of this year, 3,855 Chinese migrants crossed the Darién Gap, the 60 miles or so of treacherous terrain connecting South and Central America. That compares with 2,005 for the full year in 2022, and just 376 Chinese total in the years from 2010 to 2021, according to Panama migration data. Chinese nationals were the fourth-largest group making the Darién crossing from Colombia in the three months, the data showed. The Chinese taking the Latin America route are generally those with low incomes, education levels and skills, who have little to no chance of securing a U.S. visa.

Takeaways by Macro Roundup® AI

  1. The U.N. refugee agency counted 116,868 Chinese seeking asylum worldwide at a point measured in mid-2022, up from 15,362 at the end of 2012, the year Xi Jinping took power; China's population is around 1.4 billion.
  2. Panama migration data show 3,855 Chinese migrants crossed the Darién Gap in the first three months of this year, compared with 2,005 for all of 2022 and 376 in total from 2010 to 2021.
  3. Chinese nationals were the fourth-largest group crossing the Darién Gap from Colombia in those three months, and those taking the Latin America route generally have low incomes, education levels and skills, with little to no chance of securing a U.S. visa.

AI Summary. Singapore's central bank has asked major banks to minimize public discussion of the origins of large inflows of money into the city-state, much of it from wealthy Chinese, an issue that has become politically sensitive domestically. Lawyers and industry groups estimate Singapore hosts roughly 1,500 family offices, a large share of them Chinese.

Mercedes Ruehl, Kaye Wiggins and Leo Lewis Financial Times
Date Posted:

The Monetary Authority of Singapore is trying to limit public discussion of Chinese capital flight as it increasingly becomes a domestic political issue in the city-state. @ft

The Monetary Authority of Singapore is trying to limit public discussion of Chinese capital flight as it increasingly...

Are regulators asking banks to stay quiet about foreign wealth inflows?

Core argument: Singapore had an estimated 1,500 family offices by the end of last year, with a large chunk of them from China, according to lawyers and industry groups.

Singapore has asked the world’s biggest banks to avoid discussing the origins of the significant sums of money flowing into the city over the past year, as wealthy Chinese funnel billions into the Asian financial hub. The tacit directive from the Monetary Authority of Singapore was given during a February 20 meeting of an industry group made up of bankers and regulators, according to multiple people who attended. The flow from China into Singapore has become a politically sensitive issue domestically, and the MAS wants banks to keep public discussion of the phenomenon to a minimum, said three people with knowledge of the talks. Lawyers and industry groups estimate Singapore had 1,500 family offices by the end of last year, with a large chunk of them from China.

Takeaways by Macro Roundup® AI

  1. Singapore had an estimated 1,500 family offices by the end of last year, with a large chunk of them from China, according to lawyers and industry groups.
  2. The Monetary Authority of Singapore gave banks a tacit directive at a February 20 industry group meeting of bankers and regulators to avoid discussing the origins of the large sums flowing into the city, according to multiple attendees.
  3. The flow of money from China into Singapore has become a politically sensitive issue domestically, and the Monetary Authority of Singapore wants banks to keep public discussion of it to a minimum, said three people with knowledge of the talks.

AI Summary. The authors find that the shift of US economic activity away from manufacturing, where sales and employment concentration is higher on average than in other sectors, pushes measured concentration down, with a modest effect nationally and a large one locally. Using Economic Census data, they document that local employment concentration at the county-by-industry level fell while local sales concentration rose.

David Autor, Christina Patterson and John Van Reenen National Bureau of Economic Research
Date Posted:

Between 1992 and 2017 the shift from manufacturing to the service sector reduced local employment concentration, even as national concentration rose. @davidautor @johnvanreenen

How does the shift away from manufacturing affect measured business concentration?

Core argument: Using near-population data from the Economic Censuses, the authors document that the Herfindahl index of local employment concentration, measured at the county by six-digit NAICS industry cell level, fell between 1992 and 2017 even as local sales concentration rose.

The structural transformation of economic activity in the US and other advanced economies is well known. What has potentially escaped attention is that this force pushes concentration downward due to the simple fact that both sales and employment concentration are greater in manufacturing on average than other sectors. At the national level, this de-concentrating effect is modest. It looms large at the local level, however, offsetting by half the effect of rising sales concentration within sectors and more than fully offsetting the effect of rising employment concentration within county by industry cells. National industrial concentration in the U.S. has risen sharply since the early 1980s, but there remains dispute over whether local geographic concentration has followed a similar trend. Using near population data from the Economic Censuses, we confirm and extend existing evidence on national U.S. industrial concentration while providing novel evidence on local concentration. We document that the Herfindhahl index of local employment concentration, measured at the county by- NAICS six-digit-industry cell level, fell between 1992 and 2017 even as local sales concentration rose.

Takeaways by Macro Roundup® AI

  1. Using near-population data from the Economic Censuses, the authors document that the Herfindahl index of local employment concentration, measured at the county by six-digit NAICS industry cell level, fell between 1992 and 2017 even as local sales concentration rose.
  2. Structural transformation pushes concentration down because sales and employment concentration are on average greater in manufacturing than in other sectors, an effect that is modest nationally but large locally.
  3. At the local level, the de-concentrating effect of structural transformation offsets half of rising within-sector sales concentration and more than fully offsets rising employment concentration within county-by-industry cells.

Tuesday, April 18, 2023

AI Summary. The prime-age labor force participation rate, which took more than a decade to recover after the Great Recession, has returned to those high levels, indicating that the "missing workers" discussed during the pandemic recovery are largely back in the labor market.

CEA Staff Council of Economic Advisors
Date Posted:

.@WhiteHouseCEA argues that the 0.7% decline in labor force participation since February 2020 is a function of population aging, not Covid. Prime age LFP is above pre-pandemic levels, and overall LFP is back at its pre-pandemic forecast.

Have the pandemic's "missing workers" returned to the labor force?

Core argument: The prime-age labor force participation rate has returned to pre-Great Recession levels, a recovery that had previously taken more than a decade to achieve.

The prime-age labor force participation rate, which had taken more than a decade to recover to pre-Great Recession levels, has now returned to those very high levels. Throughout the economic recovery from the pandemic, there was much speculation about the “missing workers” who had not yet returned to the labor market. Numerous theories were offered to explain this apparent shortfall of workers. Analysts speculated that an epidemic of long Covid was keeping workers on the sidelines, that individuals were sitting out the labor market due to excess savings built up during the pandemic, that a “Great Resignation” was occurring as workers reassessed work/life balance or that the country had experienced a collective loss of work ethic. Yet despite the enormous disruptions of the pandemic, these “missing workers” are now largely back in the labor market.

Takeaways by Macro Roundup® AI

  1. The prime-age labor force participation rate has returned to pre-Great Recession levels, a recovery that had previously taken more than a decade to achieve.
  2. The "missing workers" who had not returned to the labor market during the pandemic recovery are now largely back, despite the pandemic's disruptions.
  3. Theories offered to explain the apparent worker shortfall included an epidemic of long Covid, excess pandemic savings, a "Great Resignation" driven by work/life reassessment, and a collective loss of work ethic.

AI Summary. Discounted growth, inflation, discount rates, and risk premiums have diverged widely between Western blocs and Asia, with North America and Europe correlated but differing in magnitude. Such divergences are likely to persist as Europe and Asia, with China at its center, become more independent economic blocs with their own monetary policies.

Bob Prince, Aaron Goone and Gurchit Chatha Bridgewater Associates
Date Posted:

.@Bridgewater notes a geographical divergence in markets, as their calculation of discount rates and risk premiums have declined sharply in the US and Europe, while remaining relatively steady in Asia.

Does deglobalization make geographic diversification more valuable for investors?

Core argument: Differences in discounted growth, discounted inflation, discount rates, and risk premiums have been very large between the Western blocs and Asia since the onset of the global tightening cycle.

Looking at the past year since the onset of the global tightening cycle, differences in discounted growth, discounted inflation, discount rates, and risk premiums have been very large between the Western blocs and Asia. And while the discounting has been correlated between North America and Europe, the magnitudes of the changes have been quite different, especially in discounted inflation and changes in risk premiums. Are these divergences likely to persist? Structurally, the rising independence of Europe and Asia (with China at its center) as economic blocs with their own monetary policies makes that highly likely. Whereas in the past the US dominated globalized economic and capital flows and the business cycles were more aligned, today each bloc is in a different cyclical position due to its response to the pandemic. And these cyclical differences are being compounded by today’s policy decisions and how that will influence future conditions.

Takeaways by Macro Roundup® AI

  1. Differences in discounted growth, discounted inflation, discount rates, and risk premiums have been very large between the Western blocs and Asia since the onset of the global tightening cycle.
  2. Discounting has been correlated between North America and Europe, but the magnitudes of the changes have differed considerably, especially in discounted inflation and changes in risk premiums.
  3. The rising independence of Europe and Asia, with China at its center, as economic blocs with their own monetary policies makes persistent divergence highly likely, in contrast to past US dominance of globalized economic and capital flows.

AI Summary. Realized volatility in 10-year US Treasury notes rose nearly four standard deviations, reaching levels previously seen only during major financial crises, while the two-year Treasury note posted its largest weekly move in over a decade at -72 basis points. The authors argue such volatility can chill corporate credit issuance, much of which is priced off Treasurys.

Chris Satterthwaite Verdad
Date Posted:

Chris Satterthwaite notes that Treasury volatility is at a level that was previously seen only during crises. He notes, “High volatility—and therefore high uncertainty about credit availability—can have pernicious downstream consequences.”

Does Treasury market volatility chill corporate credit issuance?

Core argument: Realized volatility in 10-year Treasurys rose nearly four standard deviations, reaching levels previously seen only in March 2020, the Eurozone debt crisis, and the 2008 financial crisis.

Treasurys—the same safe-haven asset that might have brought down Silicon Valley Bank—saw a nearly four standard deviation rise in volatility. Figure 1 below shows realized volatility in 10-year Treasurys reaching levels previously only seen in March 2020, during the Eurozone debt crisis, and during the 2008 financial crisis. The failure of Silicon Valley Bank caused a significant downward shift in the forward implied curve. We believe this led a strong rally in Treasurys as rate expectations came down. In fact, the two-year Treasury note had the single largest weekly move (-72bps) in over 10 years. This kind of Treasury volatility can have a chilling effect on corporate credit issuance, much of which is priced off Treasurys. High volatility—and therefore high uncertainty about credit availability—can have pernicious downstream consequences.

Takeaways by Macro Roundup® AI

  1. Realized volatility in 10-year Treasurys rose nearly four standard deviations, reaching levels previously seen only in March 2020, the Eurozone debt crisis, and the 2008 financial crisis.
  2. The two-year Treasury note moved -72 basis points in a single week, its largest weekly move in over 10 years, amid a Treasury rally that followed Silicon Valley Bank's failure as rate expectations came down.
  3. Treasury volatility of this magnitude can chill corporate credit issuance, much of which is priced off Treasurys, by raising uncertainty about credit availability.

AI Summary. Stock-based compensation for companies in the Russell 3000 index of large U.S. stocks is estimated at about $270bn in 2022, up from roughly $25bn in 2006, while sales rose from $11.5tn to $21.1tn. As a share of sales it was nearly 5x its 2006 level, though it remains 6–8% of total compensation at U.S. public companies.

Michael Mauboussin and Dan Callahan Morgan Stanley
Date Posted:

Stock-based compensation was around 6-8% of total compensation for public American firms, up 5x from 2006. At approximately 1.2% sales, stock-based compensation was up 6X since 2000. @mjmauboussin

How much has stock-based compensation grown relative to sales?

Core argument: Stock-based compensation for Russell 3000 companies is estimated at about $270 billion in 2022, up from roughly $25 billion in 2006, the year companies had to reflect SBC as an expense on the income statement.

In 2006, the year that companies had to reflect SBC as an expense on the income statement, total SBC expense for companies in the Russell 3000 was about $25 billion. The Russell 3000 is an index that tracks the largest stocks by market capitalization in the United States. We estimate that SBC was about $270 billion in 2022, or 6- 8 percent of total compensation for public companies in the U.S. Sales over the same period went from $11.5 to $21.1 trillion. Stock-based compensation (SBC) in 2022 was nearly 5 times what it was in 2006, measured as a percentage of sales, although total SBC remains less than 10 percent of total employee pay.

Takeaways by Macro Roundup® AI

  1. Stock-based compensation for Russell 3000 companies is estimated at about $270 billion in 2022, up from roughly $25 billion in 2006, the year companies had to reflect SBC as an expense on the income statement.
  2. Measured as a percentage of sales, stock-based compensation in 2022 was nearly 5 times its 2006 level, while sales over the same period rose from $11.5 trillion to $21.1 trillion.
  3. Stock-based compensation is estimated at about 6–8 percent of total compensation for U.S. public companies in 2022, remaining under 10 percent of total employee pay.

AI Summary. Taiwan is purchasing as many as 400 land-launched Harpoon anti-ship missiles from Boeing, intended to repel a potential Chinese invasion, under a contract issued on Taiwan's behalf by the US Naval Air Systems Command. Taiwan had previously bought only ship-launched versions of the missile.

Anthony Capaccio Bloomberg
Date Posted:

Taiwan is buying up to 400 land-launched Harpoon missiles intended to repel a potential Chinese invasion. @markets

Taiwan is buying up to 400 land-launched Harpoon missiles intended to repel a potential Chinese invasion. @markets

Is Taiwan buying land-launched US anti-ship missiles to repel an invasion?

Core argument: Taiwan will buy as many as 400 land-launched Harpoon anti-ship missiles intended to repel a potential Chinese invasion, completing a deal Congress approved in 2020, according to a trade group's leader and people familiar with the issue.

Taiwan will buy as many as 400 land-launched Harpoon missiles intended to repel a potential Chinese invasion, completing a deal that Congress approved in 2020, according to a trade group’s leader and people familiar with the issue. Taiwan has previously purchased ship-launched versions of the Harpoon, which is made by Boeing Co. Now, a contract with Boeing issued on Taiwan’s behalf by the US Naval Air Systems Command marks a first for the mobile, land-launched version, according to Rupert Hammond-Chambers, president of the US-Taiwan Business Council. Three other people familiar with the deal, including an industry official, confirmed the contract is for Taiwan.

Takeaways by Macro Roundup® AI

  1. Taiwan will buy as many as 400 land-launched Harpoon anti-ship missiles intended to repel a potential Chinese invasion, completing a deal Congress approved in 2020, according to a trade group's leader and people familiar with the issue.
  2. The contract with Boeing, issued on Taiwan's behalf by the US Naval Air Systems Command, marks a first for the mobile, land-launched Harpoon version, according to Rupert Hammond-Chambers, president of the US-Taiwan Business Council.
  3. Taiwan has previously purchased ship-launched versions of the Boeing-made Harpoon, and three other people familiar with the deal, including an industry official, said the contract is for Taiwan.