US imports from southeast Asia are clearly up. But how much has that really reduced US dependence on China? The Trump tariffs clearly had two effects a) they created an incentive to move final assembly to SE Asia; b) they created an incentive to avoid the US tariff (small value shipments/ de minimus) being the most obvious case. As a result, China’s reported exports to the US now exceed recorded US imports from China by a significant margin (about 10%). China has lost a bit of market share over the last 12 months, so there is some evidence of a shift in the location of final assembly. In the Chinese data though the shift comes only after a rise in China’s market share during the pandemic (lots of imported electronics). The bigger question (unanswerable by the trade data) is how much Chinese content is embedded in the United States rising imports from SE Asia? The US bilateral deficit with China was exaggerated in the past because China relied on a lot of imported chips and high-end components from Korea, Taiwan, and Japan. The same argument now applies to SE Asia. Chinese components don’t just appear in the data for China. Related: China Set to Account for Less Than Half of US’s Low-Cost Imports from Asia
- Date Posted:
- June 2, 2023
A Chinese research team said they have significantly improved the safety of the world’s most powerful explosive by engineering a five-fold boost to its shock resistance capacity. The breakthrough could speed up the large-scale application of the explosive in battle, making Chinese weapons far superior in terms of destructive power, according to the scientists. CL-20 is the most deadly non-nuclear explosive in existence. When detonated, it can produce destructive shock waves with blast pressures many times higher than other common explosives like TNT and RDX. The mass production of CL-20 is extremely difficult. China is the only country so far to possess such industrial capability and has used the explosive in some of its newest weapons, according to a US Energetics Technology Centre study commissioned by the Pentagon in 2021.