“Deglobalization” has entered the narrative zeitgeist. But what’s happening on the ground? This weekly series seeks to answer that question with a round-up of deglobalization developments from the week that’s done.
1. Arcane Capital Partners, a family office in Little Rock, announced it has acquired Prairie Grove-based PolyTech Plastic Molding, a leading plastics-injection molding and extrusion company. “As we navigate the changing trends within the industry – including being a leader in reshoring of American manufacturing – we recognize the expertise PolyTech brings to the table and we look forward to combining our strengths as one company,” said Arcane Capital CEO Michael Hickmon of the acquisition.
2. The Financial Times reports that weak international demand for Chinese goods has led to a rise in shipping cancellations at the country’s biggest ports, putting a damper on the economic boost that was expected of China’s emergence from Covid-zero. The cancellation rate for ships traveling east from Asia across the Pacific or to Europe will reach 31 percent over the coming weeks, vice 23 percent over the same period last year and 16 percent in 2021.
3. Apple is targeting moving some 25% of its manufacturing to India as it seeks to diversify away from China, according to India’s trade and industry minister. After years of building a presence in China, Apple is now drawing down its presence due to geopolitical tension and Communist Party policies, including Covid-zero, that have undermined production.
4. On Force Distance Times, Phoenix Tailings co-founder Anthony Balladon writes about the new technological innovations that can fuel critical mineral production in the US – without the environmental and human costs that have long encouraged offshoring. “Policymakers have correctly recognized the need to reduce industrial reliance on foreign countries, especially adversarial countries, for critical manufacturing. American entrepreneurs are ready to meet that goal with modern, safe, and sustainable methods.”
5. Thirteen Republican senators introduced legislation to ban sales from the nation’s Strategic Petroleum Reserve (SPR) to any company under the control of the Chinese Communist Party and prohibit the export of any crude oil from the SPR to China. This bill mirrors legislation that passed in the House in a 331-97 bipartisan majority last week.
6. Canadian Minister of Natural Resources Jonathon Wilkinson said that Canada should play a “big role” in reducing reliance on China for vital industrial metals. He explained that Ottawa seeks not only to develop those resources, but also to process them in countries like Canada, Japan, and the United States – to build a supply chain less dependent on China.
7. The Biden Administration confronted the Chinese government with evidence that suggests Chinese State-owned companies are providing assistance for Russia’s war in Ukraine – warning of repercussions for doing so. Such repercussions likely include sanctions and secondary sanctions, and new regulatory and reputational risks for US and international companies associated with these Chinese players.
(Photo by Skitterphoto/Pexels)