“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. Vanguard plans to close its Shanghai-based wholly owned investment management unit and exit an investment advisory joint venture with Ant Group. Vanguard cited a “crowded” market.
2. Japanese, US, and European companies are working to decouple software development from China, reports Nikkei Asia, an effort to ensure trusted foundations, greater security, and compliance with government requirements.
3. A new paper from the Solar Energy Industries Association (SEIA) describes a “transformational buildout of domestic solar and storage manufacturing” in the US – and calls for “reduc[ing] reliance on China for solar and storage manufacturing equipment and raw materials.” “SEIA’s vision and goal is that by the end of this decade, the United States will be the most competitive and collaborative solar and energy storage industry in the world.”
4. The Committee on Foreign Investment in the United States (CFIUS) told ByteDance to sell its shares in TikTok, or the company could face a US ban. Washington’s concerns over TikTok range from Chinese legislation that compels firms to hand data over to Beijing to fears that China could use the app for influence operations.
5. The EU is considering ways to control how European companies invest in overseas production facilities – following similar, US moves intended to restrict the ability of China and other rivals to acquire cutting-edge technologies. The EU trade commissioner said that new restrictions are required to stop companies from circumventing export bans on sensitive technology by manufacturing it elsewhere.
6. A new report, commissioned by the European Parliament’s committee on Environment, Public Health, and Food Safety, found that increasing API production in Europe would be beneficial – both reducing supply chain disruption and improving quality.
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