The US leads a group of major economies now determined to break China’s grip on resources vital to a green transition. While efforts to diversify the supply chain are understandable, without cooperation, the battle for control may lead to unfair and unsustainable practices.
US-China tensions, coupled with Beijing’s strict immigration policy and stringent coronavirus-control measures, have slowed the flow of foreign talent as low birth rates and ageing populations shrink talent pools.
SK Group chairman Chey Tae-won says the company has made plans for a number of scenarios as US-China rivalry intensifies, including a military clash over Taiwan.
The immediate impact of the US government’s new plan to strengthen its domestic biotechnology industry will be limited, according to consultants, despite worries that it could severely hurt Chinese companies in the sector.
The Plaza Accord, signed in New York in 1985, did its job of hobbling Japanese competitiveness and forcing a “hollowing out” of the country’s economy. While the US has been unable to use a Plaza-like weapon against China, it now seeks to protect “economic security” by intervening in supply chains.