“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. The Canadian government has proposed strengthening its Investment Canada Act (ICA) to give ministers the power to block or unwind minerals investments if they believe that the deals threaten national security. The move is expected to be finalized this spring. Nearly half of the world’s mining companies are listed in Toronto; these changes will include mandatory pre-closing filings for investments in certain sectors and technologies.
2. The German government has launched a review of the country’s 5G high-speed mobile telecommunications networks, suggesting that Berlin is moving toward banning Chinese suppliers, namely Huawei and ZTE, from parts of German networks.
3. Cornell Engineering research finds that domestic US production of solar panels would speed up decarbonization in the US and reduce climate change faster. “If we bring solar panel manufacturing back to the US, it helps us realize decarbonization goals faster.”
4. The head of French shipping giant CMA CGM cautioned that US businesses are rethinking Chinese supply chains, seeking alternative freight routes as geopolitical tensions rise.
5. A bipartisan group of senators introduced a bill that would give the federal government new powers to restrict, and potentially ban, technology emanating from adversary countries. The bill doesn’t explicitly target TikTok, but there is little doubt that the video-app is a catalyst.
6. China’s new Foreign Minister Qin Gang warned that unless the US changes course in its policy, “there will surely be conflict and confrontation” between the US and China. This after Xi Jinping declared that China faces “all-around containment, encirclement, and suppression” at the hands of Western nations.
7. And because we have to mention it: Silicon Valley Bank – which officially fell on Friday – was among the first financial institutions to start catering to Chinese startups. The bank established its first Chinese arm nearly two decades ago.
(Photo by Pexabay/Pexels)
