American officials are concerned that <a href="http://dailywire.com/topic/china" target="_blank" rel="noopener">Chinese</a> technology at ports across the country could provide the communist nation <a href="https://www.dailywire.com/topic/espionage" target="_blank" rel="noopener">insights</a> about <a href="http://dailywire.com/topic/supply-chain" target="_blank" rel="noopener">shipping</a> traffic and <a href="http://dailywire.com/topic/national-security" target="_blank" rel="noopener">national defense</a> activities, according to a Sunday <a href="https://www.wsj.com/articles/pentagon-sees-giant-cargo-cranes-as-possible-chinese-spying-tools-887c4ade" target="_blank" rel="noopener">report</a> from The Wall Street Journal.
Cranes and large steel structures manufactured by Shanghai Zhenhua Heavy Industries, also known as ZPMC, contain sensors that monitor the destination of shipping containers which move through American ports, the WSJ reported. Defense authorities have voiced concern that the Chinese-owned engineering company may be offering the Chinese Communist Party data regarding items shipped for the purpose of American military operations.
“Cranes can be the new Huawei,” former National Counterintelligence and Security Center Director Bill Evanina told the outlet, comparing the infrastructure to products <a href="https://www.dailywire.com/news/bipartisan-group-of-senators-introduce-bill-to-ban-chinese-telecom-giant-huawei" target="_blank" rel="noopener">manufactured</a> by the Shenzhen-based telecommunications company. “It’s the perfect combination of legitimate business that can also masquerade as clandestine intelligence collection.”
Evanina added that the cranes could be remotely controlled by adversarial actors seeking to disrupt the flow of goods from American shipping facilities.
Ports in Virginia, South Carolina, and Maryland which are sometimes used by nearby military bases have recently acquired new cranes from ZPMC. FBI agents reportedly uncovered information-gathering technology aboard a ship delivering ZPMC cranes to the Port of Baltimore in 2021.
The defense spending <a href="https://docs.house.gov/billsthisweek/20221205/BILLS-117hres_-SUS.pdf" target="_blank" rel="noopener">bill</a> passed by Congress at the end of last year directs the United States Maritime Administration and Department of Homeland Security to conduct an unclassified study to “assess whether there are cybersecurity or national security threats posed by foreign manufactured cranes at United States ports.” ZPMC claims to control 70% of the worldwide crane market, while one unnamed American official told The Wall Street Journal that some 80% of ship-to-shore cranes at ports in the United States are manufactured by the firm.
Chinese Ministry of Foreign Affairs spokesperson Mao Ning dismissed the revelations from The Wall Street Journal as “complete paranoia” during a Monday press briefing in Beijing, according to a <a href="https://www.newsweek.com/china-america-zpmc-cranes-ports-national-security-1785743" target="_blank" rel="noopener">report</a> from Newsweek, and said the concerns are &#8220;misleading to the American public.&#8221;
Reports of the possible spy cranes come shortly after at least one Chinese surveillance balloon recently traversed the continental United States. The vessel crossed Montana, the location of many defense assets and missile silos, then <a href="https://www.dailywire.com/news/chinese-spy-balloon-flies-out-of-montana-and-over-new-u-s-state" target="_blank" rel="noopener">traveled</a> over states such as Kansas and Missouri before the object was <a href="https://www.dailywire.com/news/u-s-military-shoots-down-chinese-spy-balloon-after-biden-let-it-travel-across-country" target="_blank" rel="noopener">shot down</a> by the American military off the coast of the Carolinas. The balloon was reportedly one of several deployed over military sites across the planet.
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Anxieties surrounding Chinese espionage also occur as President Joe Biden prohibits TikTok, a social media platform controlled by Chinese technology company ByteDance, on devices <a href="https://www.dailywire.com/news/senate-unanimously-votes-to-ban-tiktok-on-government-devices" target="_blank" rel="noopener">owned</a> by the federal government. The move was preceded by several similar bans issued by state governments and requests from lawmakers to limit the platform’s reach in the United States.
The White House is also expected to unveil an executive order that would ban American investors from funding the development of Chinese advanced semiconductors, quantum computing, artificial intelligence, and other technologies with surveillance and military applications, according to a recent <a href="https://www.dailywire.com/news/white-house-refining-executive-order-banning-american-companies-from-investing-in-key-chinese-sectors" target="_blank" rel="noopener">report</a> from The New York Times. Lawmakers threatened to pursue their own investment restrictions in the absence of plans from the executive branch.

Container ships at dock

Defense Officials Worry About New Chinese Espionage Threat, Report Says

Chinese Spy Cranes: Defense Officials Concerned By Surveillance Of American Ports From CCP-Owned Company

China

Espionage

National Security

Supply Chain

Technology

U.S.

Supermarket chains in the <a href="https://www.dailywire.com/topic/u-k" target="_blank" rel="noopener">United Kingdom</a> have started to ration <a href="http://dailywire.com/topic/food" target="_blank" rel="noopener">fruits and vegetables</a> as a nationwide <a href="http://dailywire.com/topic/supply-chain" target="_blank" rel="noopener">shortage</a> of fresh produce continues.
Tesco, the nation’s leading grocery retailer, has introduced limits on tomatoes, cucumbers, and peppers to three items per customer, according to a <a href="https://www.mirror.co.uk/money/breaking-aldi-becomes-latest-supermarket-29284106" target="_blank" rel="noopener">report</a> from The Mirror. Budget supermarket Aldi implemented an identical move, while the purchase limits at Asda also apply to lettuce, bagged salad, broccoli, cauliflower, and raspberries. Customers at Morrisons can purchase two items per individual when shopping for tomatoes, cucumbers, lettuce, and peppers.
Lidl was the latest supermarket chain to introduce limits on fruit and vegetable purchases as cold weather in Spain and Morocco impacts the availability of fresh produce in the United Kingdom, according to a <a href="https://www.bbc.com/news/business-64785676" target="_blank" rel="noopener">report</a> from BBC News. &#8220;Whilst we still have good availability across the majority of our stores, due to a recent increase in demand we have taken the decision to temporarily limit the purchase of peppers, tomatoes and cucumbers to three items per person,&#8221; a spokesperson for Lidl told the outlet. &#8220;This will help to ensure that all of our customers have access to the products they need.&#8221;
Beyond growers in the warmer climates of Spain and Morocco, rising prices for energy, fertilizer, and animal feed have introduced cost pressures for British farmers, leading one-third to change their cropping plans, according to a <a href="https://www.nfuonline.com/updates-and-information/rising-costs-government-needs-to-assess-impacts-on-farming/" target="_blank" rel="noopener">report</a> released last summer by the National Farmers Union. Some producers, for instance, are pivoting from growing milling wheat for bread to growing feed wheat for livestock because of the lower fertilizer required for the latter.
“Costs are rising rapidly on farms across the country and across all sectors,” National Farmers Union President Minette Batters said in a statement. “It’s already having an impact on the food we&#8217;re producing as a nation as well as leading to a crisis of confidence among farmers.”
British Farming Minister Mark Spencer met earlier this week with grocery executives to discuss the shortages. A statement from the British Retail Consortium, a trade association that represents supermarkets, said that consumers can expect relief in the coming weeks and that suppliers “acknowledged the importance of food security, but noted that this requires a wider strategy involving government, farmers, food manufacturers, retailers and hospitality,&#8221; according to a <a href="https://www.reuters.com/business/retail-consumer/uk-government-calls-supermarket-bosses-salad-crisis-talks-2023-02-27/" target="_blank" rel="noopener">report</a> from Reuters.
The shortages in the United Kingdom occur as the global economy continues to grapple with supply chain bottlenecks and the Russian war in Ukraine, which have increased worldwide food and energy prices. Customers in the United States have not been immune from the phenomena: expenses for food at home <a href="https://www.dailywire.com/news/inflation-rises-more-than-expected-in-january-after-biden-claimed-prices-are-coming-down" target="_blank" rel="noopener">increased</a> 11.3% between January 2022 and January 2023, while costs for food away from home rose 8.2% over the same period. A recent <a href="https://www.dailywire.com/news/crying-fowl-government-warns-of-turkey-shortage-ahead-of-thanksgiving" target="_blank" rel="noopener">bout</a> of the avian flu has likewise <a href="https://www.dailywire.com/news/the-price-of-eggs-soaring-138-is-no-coincidence" target="_blank" rel="noopener">decreased</a> the size of American poultry flocks, raising costs for chicken and turkey while causing a severe increase in prices for eggs.
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Despite the persistent increases in food expenses, President Joe Biden <a href="https://www.dailywire.com/news/biden-claims-families-have-a-little-bit-more-breathing-room-after-another-dismal-inflation-report" target="_blank" rel="noopener">responded</a> last week to an inflation data release by contending that “we have made progress on inflation, but we have more work to do.” He touted efforts from his administration to reduce prices and said Republicans undermine the economy by opposing his spending agenda.

Bad Weather To Blame For Fresh Veg Shortage

British Supermarkets Ration Fruits And Vegetables

British Grocery Chains Begin To Ration Fruits And Vegetables

Economy

Food

Inflation

United Kingdom

World

Consumer goods company Reckitt announced a recall of <a href="https://www.dailywire.com/topic/baby-formula" target="_blank" rel="noopener">baby formula</a> products across the United States on Sunday due to possible bacterial contamination.
The company said two batches of ProSobee Simply Plant-Based Infant Formula may have been cross-contaminated with Cronobacter sakazakii, a species often linked to powdered formulas and possibly deadly to infants, according to a <a href="https://www.cdc.gov/cronobacter/infection-and-infants.html" target="_blank" rel="noopener">report</a> from the CDC. Reckitt will therefore recall 145,000 cans that were manufactured between August 2022 and September 2022 and then distributed throughout the United States.
“We are committed to the highest level of quality and safety and it is for this reason that we have taken this extraordinary measure,” Reckitt said in a <a href="https://www.reckitt.com/us/newsroom/latest-news/news/2023/february/reckitt-recalls-two-batches-of-prosobee-12-9-oz-simply-plant-based-infant-formula-because-of-possible-health-risk/#:~:text=Recalled" target="_blank" rel="noopener">statement</a>. “After a thorough investigation, we have identified the root cause, which was linked to a material from a third party. We have taken all appropriate corrective actions, including no longer sourcing this material from the supplier. The health and safety of infants is our highest priority.”
The recall comes roughly one year after Abbott Nutrition temporarily <a href="https://www.dailywire.com/news/baby-formula-ceo-has-a-message-for-parents-hit-by-nationwide-shortage" target="_blank" rel="noopener">shuttered</a> a baby formula facility in Sturgis, Michigan, and initiated a voluntary recall of several products. The absence of EleCare, a formula for children who are unable to digest other products, was especially worrisome to parents and government officials. The White House tried to alleviate the shortage with “Operation Fly Formula,” through which the military imported baby formula from Europe.
The recall was launched after the FDA found standing water, roof leaks, bacteria growths, and inadequate hygiene in the Abbott facility, which was <a href="https://www.dailywire.com/news/abbott-nutrition-reopens-baby-formula-plant-at-center-of-nationwide-shortage" target="_blank" rel="noopener">closed</a> between February 2022 and June 2022. Several babies across the country had reportedly been impacted by bacterial infections.
“We believe our voluntary recall was the right thing to do,” Abbott Nutrition CEO Rober Ford said, <a href="https://www.dailywire.com/news/baby-formula-ceo-has-a-message-for-parents-hit-by-nationwide-shortage" target="_blank" rel="noopener">per</a> The Washington Post. “We will not take risks when it comes to the health of children. The data collected during the investigation, genetic sequencing, retained product samples and available product from the four complaints did not find any connection between our products and the four reported illnesses in children. However, the FDA’s investigation did discover a bacteria in our plant that we will not tolerate.”
Baby formula shortages reached their zenith in July 2022, when out-of-stock rates surpassed 31%, according to <a href="https://www.usatoday.com/story/news/politics/2022/12/04/baby-formula-shortages-persist-after-biden-fixes/10795557002/" target="_blank" rel="noopener">data</a> from market research firm IRI shared with USA Today. Supply chain bottlenecks nevertheless continued to impact availability of the products: out-of-stock rates still reached 13% in November 2022.
Lockdowns and public health mandates imposed by many governments across the world fostered unpredictable supply chain shocks, contributing to inflation in many countries. Prices for baby formula increased 15% between July 2021 and July 2022, according to <a href="https://www.bls.gov/blog/2023/looking-at-recent-price-increases-for-baby-food.htm" target="_blank" rel="noopener">data</a> from the Bureau of Labor Statistics, but inflation in the product category remained as high as 10.7% between December 2021 and December 2022.
Democratic lawmakers and officials assert that <a href="https://www.dailywire.com/news/new-yorks-democratic-ag-goes-after-price-gouging-amid-formula-shortage" target="_blank" rel="noopener">corporate greed</a> is responsible for the inflationary pressures which have grappled with the economy over the past two years. New York Attorney General Letitia James warned baby formula companies to “stop overcharging” for the scarce products at the height of the crisis. “It’s unconscionable that some retailers are taking advantage of the national baby formula shortage while parents are struggling to find food for their children,” she said in a <a href="https://ag.ny.gov/press-release/2022/attorney-general-james-issues-warnings-more-30-retailers-stop-overcharging-baby" target="_blank" rel="noopener">press release</a>.

Empty shelves, baby formula shortage, Target, Queens, New York

Baby Formula Recalled Nationwide Over Possible Bacterial Contamination

Baby Formula Company Recalls Product Nationwide Over Possible Bacterial Contamination

baby formula

baby formula shortage

Health

Democratic and Republican members of the <a href="https://www.dailywire.com/topic/u-s-senate" target="_blank" rel="noopener">Senate</a> Banking Committee drew attention on Thursday to the effect of low <a href="https://www.dailywire.com/topic/housing" target="_blank" rel="noopener">housing</a> supply on <a href="http://dailywire.com/topic/inflation" target="_blank" rel="noopener">prices</a>.
Labor shortages and <a href="http://dailywire.com/topic/supply-chain" target="_blank" rel="noopener">supply chain</a> bottlenecks induced by worldwide lockdown mandates raised input costs and thereby increased housing inventory shortfalls that have long plagued American would-be homeowners. Lawmakers on the Senate Banking Committee discussed the phenomenon during their first hearing of the new Congress.
“There just isn’t enough quality housing at prices that people can afford,” Sen. Sherrod Brown (D-OH) said in his <a href="https://www.banking.senate.gov/newsroom/majority/brown-housing-expensive-families-seniors" target="_blank" rel="noopener">opening statement</a>. “And because there aren’t enough homes, renters, and homeowners are stuck paying more every month or living with peeling lead paint or leaks.”
The housing market had witnessed a shortage of 3.8 million houses as of 2019, according to <a href="https://www.fanniemae.com/research-and-insights/perspectives/us-housing-shortage" target="_blank" rel="noopener">data</a> from government-backed mortgage company Fannie Mae. The National Association of Realtors <a href="https://www.nar.realtor/newsroom/once-in-a-generation-response-needed-to-address-housing-supply-crisis" target="_blank" rel="noopener">estimates</a> that homebuilders should have constructed between 5.5 million and 6.8 million more houses over the past two decades to match current demand.
Sen. Tim Scott (R-SC) asserted that policies such as rent control and inaction on the supply chain crisis from the Biden administration have worsened the housing inventory problem.
“It’s past time to rethink the tax-and-spend strategies that keep families trapped in generational cycles of poverty and find real solutions to meaningfully impact all households,” he said in his <a href="https://www.banking.senate.gov/newsroom/minority/scott-calls-for-less-failed-government-spending-more-solutions-in-response-to-housing-challenges" target="_blank" rel="noopener">opening statement</a>. “Government must begin responsibly helping families rather than doubling down on programs that fail to generate results. We need to leverage the successes of American capitalism by encouraging private investment in the housing sector and eliminating needless barriers that artificially restrict supply.”
Senior Biden administration officials have meanwhile <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2022/10/07/biden-harris-administration-announces-progress-in-implementing-its-housing-supply-action-plan/" target="_blank" rel="noopener">called</a> for Fannie Mae and Freddie Mac to provide affordable financing for multifamily housing construction, streamline regulations to make the construction of “mixed-income housing” and “housing that includes very low-income tenants” more simplified, and support housing projects near mass transit. Inflation rates for shelter costs increased 7.5% year-over-year as of December 2022, far exceeding the 1.8% year-over-year rate charted one month before President Joe Biden assumed office, according to <a href="https://fred.stlouisfed.org/series/CUSR0000SAH1#0" target="_blank" rel="noopener">data</a> from the Bureau of Labor Statistics.
Median home sale prices have likewise soared from $322,600 in the second quarter of 2020 to $467,700 in the fourth quarter of 2022, according to <a href="https://fred.stlouisfed.org/series/MSPUS" target="_blank" rel="noopener">data</a> from the Department of Housing and Urban Development. Costs plateaued in the second half of last year amid soaring mortgage rates caused by the Federal Reserve’s actions to decrease inflation.
The cooling home prices occur alongside a slowdown in homebuying activity and do not reflect an increase in affordability for would-be buyers. Monthly mortgage payments for the typical home increased more than 45% between the end of 2021 and the end of 2022, indicating that the salary required to afford such a property has increased from nearly $74,000 to more than $107,000, according to an <a href="https://www.dailywire.com/news/americans-now-need-a-six-figure-salary-to-afford-a-median-priced-home" target="_blank" rel="noopener">analysis</a> from real estate brokerage Redfin.
The number of homes on the market has “stayed near historic lows” despite the market slowdown, according to Harvard Joint Center for Housing Studies Christopher Herbert, who <a href="https://www.banking.senate.gov/imo/media/doc/Herbert%20Testimony%202-9-23.pdf" target="_blank" rel="noopener">testified</a> before the Senate Banking Committee. He observed that buyers who locked in favorable mortgage terms before the recent spike in borrowing costs are unlikely to sell.

Tim Scott

Senators Call To Increase Housing Supply As Affordability Plummets

Lawmakers Draw Attention To Low Housing Supply

Congress

Housing

Politics

Senate

Sherrod Brown

<a href="http://dailywire.com/topic/tesla" target="_blank" rel="noopener">Tesla</a> unveiled intentions to build two more factories and hire thousands of people in the state of <a href="http://dailywire.com/topic/nevada" target="_blank" rel="noopener">Nevada</a>.
The company has invested some $6.2 billion in the Silver State over the past nine years, according to a <a href="https://www.tesla.com/blog/continuing-our-investment-nevada" target="_blank" rel="noopener">press release</a> from the <a href="https://www.dailywire.com/topic/electric-vehicles" target="_blank" rel="noopener">electric</a> automaker. The new investment of $3.6 billion will allow for updates to Gigafactory Nevada, one of the world&#8217;s highest volume <a href="https://www.tesla.com/giga-nevada" target="_blank" rel="noopener">plants</a> for electric motors and batteries, as well as a cell factory capable of producing enough batteries for 1.5 million vehicles each year and the first high-volume Tesla Semi factory.
“Thank you to the Tesla team, our supply chain partners and the local community that has made accelerating the world’s transition to sustainable energy possible at Gigafactory Nevada,” the company’s statement said.
The new facilities will employ an additional 3,000 individuals; Tesla hired 6,500 full-time employees and 17,000 construction workers over the previous decade to build and run Gigafactory Nevada, which currently spans 5.4 million square feet and produces 7.3 billion battery cells per year.
“Nevada is open for business, effective immediately,” Gov. Joe Lombardo (R-NV) <a href="https://twitter.com/JosephMLombardo/status/1618046041349316610" target="_blank" rel="noopener">said</a> on social media. “This is an incredible investment in our state.”
Tesla CEO Elon Musk <a href="https://twitter.com/elonmusk/status/1557236629412007937" target="_blank" rel="noopener">announced</a> last year that the Tesla Semi, which was unveiled in 2017 and originally scheduled to begin production in 2019, would begin by the end of 2022. The first completed vehicles were <a href="https://www.dailywire.com/news/elon-musk-announces-start-of-tesla-semi-production-will-reach-clients-within-two-months" target="_blank" rel="noopener">delivered</a> to Pepsi in December.
The Tesla Semi can accelerate from a standstill to 60 miles per hour within 20 seconds, according to a <a href="https://www.tesla.com/semi" target="_blank" rel="noopener">webpage</a> from Tesla. Charging the vehicle is considerably cheaper per mile in comparison to diesel alternatives, resulting in an estimated $200,000 in cost savings within the first three years, while fewer moving parts and software updates reduce the need for repairs.
On the other hand, diesel trucks can travel 2,100 miles on a single tank, according to <a href="https://driveknight.com/blog/trucker-lifestyle/fun-facts-about-semi-trucks-the-trucking-industry/#:~:text=How%20Far%20Can%20The%20Average,around%20seven%20miles%20per%20gallon" target="_blank" rel="noopener">data</a> from Knight Transportation, while the Tesla Semi will have a range of 500 miles. During the launch event six years ago, however, Musk asserted that drivers could recharge while taking periodic breaks already required by law.
Musk recently <a href="https://www.dailywire.com/news/elon-musk-makes-bold-predictions-about-tesla-performance-global-recession-twitter-deal" target="_blank" rel="noopener">said</a> that Tesla has “excellent demand” and expects to “sell every car that we make for as far into the future as we can see.” The company’s third quarter automotive revenue constituted a 55% increase from the previous year, while executives expect to maintain 50% annual growth in vehicle deliveries. “The factories are running at full speed and we’re delivering every car we make, and keeping operating margins strong,” Musk remarked.
The robust performance for the brand comes despite <a href="https://www.dailywire.com/news/elon-musk-laments-tesla-factories-becoming-gigantic-money-furnaces-thanks-to-supply-chain-issues" target="_blank" rel="noopener">supply chain bottlenecks</a> and is spurred by new tax incentives for electric vehicle ownership. A recent set of guidelines from the California Air Resources Board mandates that all new cars sold in the state must produce zero emissions by 2035, while the governments of Massachusetts, Washington, and Virginia have <a href="https://www.dailywire.com/news/ridiculous-edict-virginia-gov-glenn-youngkin-blasts-californias-gas-car-phase-out" target="_blank" rel="noopener">enacted legislation</a> adopting the standards. President Joe Biden’s Inflation Reduction Act <a href="https://www.dailywire.com/news/energy-sec-granholm-families-should-use-ev-tax-credits-weatherize-their-homes-finance-solar-panels-to-cope-with-inflation" target="_blank" rel="noopener">includes</a> $7,500 tax credits for some new domestically produced electric vehicles and $4,000 tax credits for used electric vehicles.
Musk has nevertheless faced <a href="https://www.dailywire.com/news/tesla-investors-are-worried-that-elon-musks-work-with-twitter-could-hurt-automaker" target="_blank" rel="noopener">pressure</a> from investors and policymakers over his acquisition of social media company Twitter, as some believe the move distracted the billionaire entrepreneur from his work at the publicly traded automaker. The purchase also caused considerable political controversy: net favorability of Tesla among Democrats decreased 20.3% between October and November, the time frame of the acquisition, according to a <a href="https://morningconsult.com/2022/11/17/elon-musks-politically-polarizing-effect/" target="_blank" rel="noopener">survey</a> from Morning Consult, while net favorability among Republicans rose 5.5% over the same period.

US-ECONOMY-TRANSPORT-TESLA-TRUCK

‘An Incredible Investment’: Tesla Announces Two New Factories, $3.6 Billion Investment In Nevada

Tesla Announces Two New Factories In Nevada

electric vehicles

Elon Musk

Nevada

Tesla

Agriculture Secretary <a class="c-link" tabindex="-1" href="https://www.dailywire.com/topic/tom-vilsack" target="_blank" rel="noopener noreferrer" data-stringify-link="https://www.dailywire.com/topic/tom-vilsack" data-sk="tooltip_parent" data-remove-tab-index="true">Tom Vilsack</a> never attended meetings of the task force he co-chaired to help resolve the nation’s <a class="c-link" tabindex="-1" href="http://dailywire.com/topic/supply-chain" target="_blank" rel="noopener noreferrer" data-stringify-link="http://dailywire.com/topic/supply-chain" data-sk="tooltip_parent" data-remove-tab-index="true">supply chain</a> woes, according to a public records request from the Functional Government Institute.
A public records request from the Functional Government Institute revealed that the Supply Chain Disruptions Task Force, created by the White House two years ago, suffered from nonexistent leadership. The Agriculture Department only produced 19 pages of <a href="https://freebeacon.com/wp-content/uploads/2023/01/2022-OSEC-04513-F-Responsive_Redacted.pdf" target="_blank" rel="noopener">records</a> related to the entity after five months and a federal lawsuit from the Functional Government Institute; 14 of the pages were copied from public statements about the initiative, and none of the records provided evidence that Vilsack or his deputies attended any meetings.
“As the administration rightly recognized in creating the Task Force, supply chain issues threaten the economic and national security of the country,” Functional Government Institute Spokesman Peter McGinnis said in a <a href="https://functionalgovernment.org/usda-secretary-vilsacks-leadership-of-the-supply-chain-task-force-all-hat-and-no-cattle/" target="_blank" rel="noopener">press release</a>. “Secretary Vilsack’s failure to convene a single meeting with his fellow leaders, while dedicating federal resources to investigate and blame the private sector, shows that the Task Force was little more than a cynical attempt to signal engagement on supply chain disruptions while, in fact, doing little or nothing.”
Transportation Secretary Pete Buttigieg and Commerce Secretary Gina Raimondo were also named co-chairs of the task force, according to a June 2021 <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2021/06/08/fact-sheet-biden-harris-administration-announces-supply-chain-disruptions-task-force-to-address-short-term-supply-chain-discontinuities/" target="_blank" rel="noopener">statement</a> from the White House, which added that the officials would focus on bottlenecked products such as construction materials, semiconductors, and food supplies. Vilsack said in another <a href="https://www.usda.gov/media/press-releases/2021/06/08/usda-invest-more-4-billion-strengthen-food-system" target="_blank" rel="noopener">press release</a> that he was eager to “mobilize a whole-of-government effort to address the short-term supply challenges our country faces as it recovers.”
The Functional Government Institute noted that Buttigieg’s calendars during his two-month <a href="https://www.dailywire.com/news/transportation-secretary-pete-buttigieg-has-been-on-paid-leave-for-months-amid-supply-chain-crisis" target="_blank" rel="noopener">paternity leave</a> likewise show he did not participate in any meetings for the initiative. More recently, Buttigieg <a href="https://www.dailywire.com/news/buttigieg-vacationed-in-posh-european-tourist-destination-as-rail-unions-neared-strike" target="_blank" rel="noopener">vacationed</a> in Portugal as the possibility of a nationwide rail strike loomed at the end of last year.
Lockdowns and public health mandates imposed by many governments across the world fostered unpredictable supply chain shocks, contributing to inflation in many countries. Sectors impacted most severely by foreign bottleneck exposure, such as automotive manufacturing, textiles, and basic metals, also witnessed the most potent inflationary pressures, according to an <a href="https://research.stlouisfed.org/publications/economic-synopses/2022/05/12/supply-chain-disruptions-and-inflation-during-covid-19" target="_blank" rel="noopener">analysis</a> from the Federal Reserve Bank of St. Louis.
The creation of the Supply Chain Disruptions Task Force occurred after industry leaders pressed the Biden administration to offer “strong leadership” in addressing the crisis. “The supply chain disruption issues, especially the congestion affecting our key maritime ports, are causing significant challenges for America’s retailers,” National Retail Federation CEO Matthew Shay wrote in a <a href="https://www.dailywire.com/news/we-need-strong-leadership-executives-beg-biden-to-fix-supply-chain-issues" target="_blank" rel="noopener">letter</a> to President Joe Biden. “As the administration undergoes supply chain reviews for critical sectors, including transportation, addressing the current state of our nation’s ports and freight movement needs to be a critical component of the strategy.”
Biden administration officials have nevertheless taken credit for partial mitigation in price level increases. Treasury Secretary Janet Yellen recently remarked that “we continue to see improvement in supply chains” during an <a href="https://www.dailywire.com/news/janet-yellen-says-inflation-has-been-quite-moderate-quite-low-for-the-last-six-months" target="_blank" rel="noopener">interview</a> with NPR and claimed that inflation “has really been quite moderate, quite low for the last six months or so,” even as price increases remain well above the 2% annual rate seen before the lockdown-induced recession.

US-POLITICS-HARRIS-SPACE

Top Biden Officials Responsible For Leading Supply Chain Task Force Never Even Showed Up To Meetings: Report

Vilsack, Buttigieg Absent From Supply Chain Task Force Meetings As Economy Languished

Biden Administration

Pete Buttigieg

Tom Vilsack

<a href="http://dailywire.com/topic/blackrock" target="_blank" rel="noopener">BlackRock</a> CEO Larry Fink denounced criticism of the <a href="http://dailywire.com/topic/esg" target="_blank" rel="noopener">ESG</a> movement and expressed skepticism toward <a href="http://dailywire.com/topic/supply-chain" target="_blank" rel="noopener">supply chain</a> resiliency efforts at the <a href="http://dailywire.com/topic/world-economic-forum" target="_blank" rel="noopener">World Economic Forum</a>.
During an <a href="https://www.bloomberg.com/news/articles/2023-01-17/blackrock-s-fink-says-esg-narrative-has-become-ugly-personal?leadSource=uverify%20wall" target="_blank" rel="noopener">interview</a> on Tuesday in Davos, Switzerland, the asset management company executive remarked that disputes concerning environmental, social, and corporate governance investing have created significant controversy.
“I’m taking this very seriously,” he told Bloomberg News. “We are trying to address the misconceptions. It’s hard because it’s not business anymore, they’re doing it in a personal way. And for the first time in my professional career, attacks are now personal. They’re trying to demonize the issues.”
The reference to critics&#8217; attempts to “demonize” the ESG movement comes days after Elon Musk <a href="https://www.dailywire.com/news/elon-musk-the-s-in-esg-stands-for-satanic" target="_blank" rel="noopener">quipped</a> on social media that “the S in ESG stands for Satanic.” The billionaire entrepreneur formerly called the philosophy a “scam” that has been “weaponized by phony social justice warriors.”
Fink traveled to Switzerland for the conference days after his company <a href="https://www.dailywire.com/news/blackrock-introduces-first-mass-layoff-in-years-after-losing-1-5-trillion" target="_blank" rel="noopener">announced</a> plans to dismiss hundreds of employees following a $1.5 trillion loss in assets over the past year. BlackRock has witnessed extensive criticism from opponents of the ESG movement who argue that the investment philosophy compromises profit maximization for left-wing causes such as climate change and racial equity.
“Let’s be clear, the narrative is ugly, the narrative is creating this huge polarization,” Fink continued. “We are doing everything we can to change the narrative.”
Republican state treasurers have <a href="https://www.dailywire.com/news/states-have-pulled-nearly-12-billion-from-blackrock-this-year" target="_blank" rel="noopener">pulled</a> some $12 billion from BlackRock over the past year, citing unnecessary risks to investments and vendettas against their fossil fuel sectors. The divestments constitute a fraction of the $8 trillion managed by the company but reflect broader market hesitancy toward ESG funds after a year of <a href="https://www.dailywire.com/news/virtue-signaling-isnt-free-how-woke-investing-fell-apart-once-the-economy-got-bad" target="_blank" rel="noopener">lackluster</a> stock market performance.
Fink was among hundreds of corporate leaders who attended the World Economic Forum, an advocate of increased cooperation between public and private actors to enact policy agendas. He advanced the philosophy as he spoke on a <a href="https://www.weforum.org/events/world-economic-forum-annual-meeting-2023/sessions/relaunching-trade-growth-and-investment" target="_blank" rel="noopener">panel</a> about the future of global trade.
Fink asserted that private corporations should assume the role of battling climate change through investments as policymakers contend with the increased national debt.
“I believe there’s a greater need for governments to be working with the private sector, especially in the areas of infrastructure and decarbonization, because on the back of less fiscal flexibility, the need for private capital is greater than ever before,” he commented. “And the private capital is there, as long as they believe over the horizon of the investment the returns can be achieved.”
World Economic Forum President Børge Brende, the host of the panel, lauded the Bipartisan Infrastructure Law and the Inflation Reduction Act as two measures advanced by the Biden administration to bankroll renewable energy initiatives. Fink said he is “very optimistic” about the future of decarbonization in the United States.
The executive also argued that global trade fragmentation is occurring because countries are increasingly concerned about “national security” concerning their semiconductor and energy sectors.
“That phrase is being abused repeatedly, obviously for reasons like the war in Ukraine, but fragmentation is one of the causes of inflation,” he contended. “Now the idea with most corporations is creating resiliency. Resiliency means more inflation.”
Some have asserted, on the other hand, that heightened <a href="https://www.dailywire.com/news/chinese-manufacturing-is-quickly-collapsing" target="_blank" rel="noopener">global supply chain</a> interdependence in recent years increased the risk of worldwide economic fallout. Supply chains continue to see disruptions after government lockdowns, particularly in China and other Asian nations, prevented consumer and industrial goods from reaching advanced economies.

Collage Maker-18-Jan-2023-01.35-PM

BlackRock’s Larry Fink Says ESG Opponents Are Trying To ‘Demonize’ The Movement After Elon Musk Calls It ‘Satanic’

BlackRock CEO Larry Fink Hits Back At ESG Criticism During World Economic Forum

BlackRock

World Economic Forum

The Consumer Price Index decreased 0.1% in December 2022, marking the largest <a href="http://dailywire.com/topic/inflation" target="_blank" rel="noopener">inflationary</a> decline in nearly three years, according to a <a href="https://www.bls.gov/news.release/cpi.nr0.htm" target="_blank" rel="noopener">report</a> from the Bureau of Labor Statistics.
The month-to-month decrease of 0.1% was in line with analysts’ forecasts, while core inflation, which factors out the more volatile food and energy categories, rose 0.3%, also reflecting expectations. Food prices increased 0.3% and shelter prices increased 0.8% even as energy prices fell 4.5%. The month-to-month decrease was the largest since April 2020, when consumer and business spending plummeted amid government lockdown mandates.
Year-over-year inflation was charted at 6.5% in December 2022, marking a decline from the 7.1% recorded in the previous month. The decrease in energy prices responsible for much of the lower headline inflation follows gas prices attaining their <a href="https://www.dailywire.com/news/gas-prices-in-2022-were-the-highest-on-record-heres-where-they-could-be-heading-next-year" target="_blank" rel="noopener">highest levels</a> on record last year.
Bankrate Chief Financial Analyst Greg McBride said in comments provided to The Daily Wire that “the tide has turned, and improvement is now the prevailing trend,” implying that policymakers at the Federal Reserve could slow their aggressive actions to increase target federal funds rates as a result of the new inflation report. “But that may just mean more small rate hikes rather than fewer large rate hikes,” he said. “The end point is still to be determined.”
Officials at the Federal Reserve <a href="https://www.dailywire.com/news/breaking-federal-reserve-hikes-target-interest-rates-half-a-percentage-point" target="_blank" rel="noopener">raised rates</a> by three-quarters of a percentage point on four consecutive occasions last year before implementing a half-percent increase last month, causing higher interest rates across the economy. McBride observed that prices for goods are generally declining even as prices for services continue to increase.
“Moderating inflation is most apparent in the prices for goods such as used cars and trucks that have declined for six straight months. But it is in services where labor shortages are most pronounced, making services inflation tougher to corral,” he commented. “Despite the headline and core results meeting expectations, the broad-based improvement that needs to be seen to get inflation truly under control is still lacking. In addition to shelter, plenty of other necessities increased at an outsized pace last month: food, apparel, vehicle insurance, and household furnishings and operations.”
Employers have expressed concern regarding a labor shortage that has worsened inflation as companies hike pay to attract new workers. The phenomenon comes as labor force participation failed to recover over the past two years, worsening a <a href="https://www.dailywire.com/news/americans-continue-to-opt-out-of-the-workforce" target="_blank" rel="noopener">decades-long trend</a> of low engagement in the job market. The metric dropped from 63.4% in February 2020 to 60.2% in April 2020 amid government lockdowns and business closures, according to <a href="https://fred.stlouisfed.org/series/CIVPART" target="_blank" rel="noopener">data</a> from the Bureau of Labor Statistics. Labor force participation climbed to 62.3% as of December 2022.
Federal Reserve Chair Jerome Powell <a href="https://www.dailywire.com/news/federal-reserve-chair-jerome-powell-discusses-future-slowdown-of-rate-hikes" target="_blank" rel="noopener">believes</a> the “participation gap” is mostly a result of “excess retirements” that occurred beyond “what would have been expected from population aging alone,” even as younger individuals largely returned to the workforce.
The most recent inflation data come after one of the <a href="https://www.dailywire.com/news/stocks-had-their-worst-year-since-2008-after-biden-boasted-about-their-performance" target="_blank" rel="noopener">worst stock market</a> performances in modern history as soaring prices, geopolitical pressures, and backlogged supply chains plagued the economy. The S&amp;P 500 index plummeted nearly 20% in 2022, rivaling the 37% decline seen in 2008 amid the collapse of the banking system, as well as the 12% and 22% declines witnessed in 2001 and 2002 amid the dot-com bubble.
This report has been updated to include additional information.

grocery store

Inflation Rate Sees Largest Slowdown Since 2020

Gas Prices

Major retail chain Bed Bath &amp; Beyond has reported severe losses and even said that bankruptcy use could be on the table for the company.
The major retail company is planning to report net sales of around $1.259 billion, down from $1.878 billion in the same time period a year ago. In a <a href="https://bedbathandbeyond.gcs-web.com/news-releases/news-release-details/bed-bath-beyond-inc-provides-business-update" target="_blank" rel="noopener">statement</a>, the company said that this reflects “lower customer traffic and reduced levels of inventory availability, among other factors.”
The time span included the lead-up to Black Friday, The New York Times <a href="https://www.nytimes.com/2023/01/05/business/bed-bath-beyond-bankruptcy.html" target="_blank" rel="noopener">reported</a>, which is a bad sign for a company that relies on the holidays.
The company also said it is set to have a net loss of around $385.8 million for the third quarter of this fiscal year, “including impairment charges of approximately $100.0 million.” The net loss is an increase from $276.4 million in the same time span last year.
The Wall Street Journal <a href="https://www.wsj.com/articles/bed-bath-beyond-faces-potential-bankruptcy-filing-11672926677" target="_blank" rel="noopener">reported</a> that <a href="https://www.cnn.com/2023/01/05/business/bed-bath-and-beyond-future/index.html" target="_blank" rel="noopener">sources</a> said the company is already in the early phase of getting ready to file for a chapter 11 bankruptcy, and talks could go into February.
The company said in its statement Thursday that utilizing bankruptcy was on the table.
“The Company continues to consider all strategic alternatives including restructuring or refinancing its debt, seeking additional debt or equity capital, reducing or delaying the Company&#8217;s business activities and strategic initiatives, or selling assets, other strategic transactions and/or other measures, including obtaining relief under the U.S. Bankruptcy Code. These measures may not be successful,” it noted.
The Journal added that the company’s stock closed out down 30% on Thursday. The sources also told the outlet that creditors the company already has will probably provide it with the money to get it through the bankruptcy procedure.
The amount of debt that the company is carrying has also been a concern. It has almost $1.2 billion of unsecured notes with maturity dates throughout 2024, 2034, and 2044. It has also said that it has been going through funds at a rapid rate, according to <a href="https://www.cnbc.com/2023/01/05/bed-bath-beyond-shares-plummet-as-company-warns-of-deeper-financial-troubles.html" target="_blank" rel="noopener">CNBC</a>.
A Bed Bath &amp; Beyond spokeswoman said that the retailer is still operating with counselors to enhance its liquidity and get back its market share. “No determinations have been made as of this time,” she reportedly said in a statement.
&#8220;Strengthening our ability to serve our customers will continue to drive our decision-making. We are resetting foundational elements to create a stronger and more nimble infrastructure that aligns closely with customer demand and preference,” CEO and President Sue Gove said in the statement Thursday. “We continue to manage our financial position amidst a changing landscape and work with expert advisors as we consider all paths and strategic alternatives to accomplish our short- and long-term goals. We look forward to providing an update on these fronts on our formal third quarter earnings call next week.&#8221;

A4B02516-53EA-41E1-B0DE-7953BC8E6A0F_1_201_a

Report: Bed Bath & Beyond Set To File For Bankruptcy After Announcing Struggles

Business

Money

Various polls show that <a href="http://dailywire.com/topic/economy" target="_blank" rel="noopener">economists</a> generally expect a <a href="http://dailywire.com/topic/recession" target="_blank" rel="noopener">recession</a> this year, although there is no consensus among leading analysts.
The economy has been throttled by <a href="http://dailywire.com/topic/inflation" target="_blank" rel="noopener">inflationary</a> pressures, <a href="http://dailywire.com/topic/unemployment" target="_blank" rel="noopener">labor</a> shortages, and backlogged <a href="http://dailywire.com/topic/supply-chain" target="_blank" rel="noopener">supply chains</a>, contributing to negative growth in the first two quarters of last year. Central bankers at the <a href="http://dailywire.com/topic/federal-reserve" target="_blank" rel="noopener">Federal Reserve</a> are embarking upon the most aggressive campaign to suppress rising price levels in decades as geopolitical pressures in eastern Europe and southeast Asia continue to mount.
Roughly 70% of economists <a href="https://www.bloomberg.com/news/articles/2022-12-20/economists-place-70-chance-for-us-recession-in-2023?srnd=premium" target="_blank" rel="noopener">surveyed</a> by Bloomberg last month said that the United States would witness a recession this year. Respondents predicted that gross domestic product would show flat readings in the first and third quarters, as well as an annualized decline of 0.7% in the second quarter. They project year-over-year inflation, as measured by the Personal Consumption Expenditures Price Index, to approach 3% in the fourth quarter as the Federal Reserve hikes the target federal funds rate, a reality that will also produce 4.9% unemployment.
Another poll of professional economic forecasters from the National Association for Business Economics showed that most respondents say recessionary risks have surpassed 50% amid slower economic growth, higher inflation, and a lackluster labor market. “Panelists expect job growth will slow over the first three quarters of 2023 but remain positive,” Conference Board Chief Economist Dana Peterson said in a <a href="https://nabe.com/NABE/Surveys/Outlook_Surveys/December_2022_Outlook_Survey_Summary.aspx" target="_blank" rel="noopener">statement</a>.
Beyond the United States, a study from the World Bank likewise predicts that contractionary monetary policy in leading developed countries heightens the risk of a global recession.
“My deep concern is that these trends will persist, with long-lasting consequences that are devastating for people in emerging market and developing economies,” World Bank Group President David Malpass said in a <a href="https://www.worldbank.org/en/news/press-release/2022/09/15/risk-of-global-recession-in-2023-rises-amid-simultaneous-rate-hikes" target="_blank" rel="noopener">press release</a>. “Policies should seek to generate additional investment and improve productivity and capital allocation, which are critical for growth and poverty reduction.”
On the other hand, economists at Goldman Sachs place the risk of a recession in the United States at a significantly lower 35%, forecasting that the nation will “stick a soft landing” as inflation decreases with only a slight impact on unemployment.
“There are strong reasons to expect positive growth in coming quarters,” Goldman Sachs Research Head Jan Hatzius said in the investment bank’s <a href="https://www.goldmansachs.com/insights/pages/outlook-2023-us-expected-to-escape-recession.html" target="_blank" rel="noopener">outlook</a>. “Our economists expect real disposable income to increase to a pace of more than 3% over the next year. Even as financial conditions have tightened and are now subtracting about 2 percentage points from growth, the rise in real income is likely to be the stronger force next year.”
Positive growth could come as other major economies are rocked by problems more severe than those in the United States, as noted by a <a href="https://www.americanprogress.org/article/despite-global-inflation-the-u-s-economic-recovery-is-among-the-strongest-of-g-7-nations/" target="_blank" rel="noopener">report</a> from the Center for American Progress. Soaring energy prices in Europe driven by the Russian invasion of Ukraine and aggressive renewable power goals have led to higher price levels. The economy of China has suffered as zealous lockdown measures slow manufacturing activity and prompt some firms to start new operations abroad. Indeed, the pressures in major economies could prompt the rise of emerging markets such as India, which is projected to <a href="https://www.dailywire.com/news/major-indian-company-to-start-producing-semiconductors-as-global-shortages-threats-from-china-continue" target="_blank" rel="noopener">surpass</a> Japan and Germany as the world’s third-largest economy sometime in the next decade.

Times Square As U.S. Stocks Climb On Earnings

Economists Predict Whether 2023 Will See A Recession

Will There Be A Recession In 2023?

Federal Reserve

Recession

Last-minute <a href="http://dailywire.com/topic/christmas" target="_blank" rel="noopener">Christmas</a> shoppers may be left in the cold as major <a href="http://dailywire.com/topic/supply-chain" target="_blank" rel="noopener">delivery services</a> announce delays as a result of severe winter <a href="https://www.dailywire.com/topic/weather" target="_blank" rel="noopener">weather</a>.
Residents of the Midwest and the Great Lakes region will contend with an Arctic front causing snowfall and frigid temperatures until Christmas Eve, according to a <a href="https://twitter.com/NWSWPC/status/1605137973703573504" target="_blank" rel="noopener">forecast</a> from the National Weather Service, posing threats to travel plans as <a href="https://www.dailywire.com/news/massive-snowstorm-expected-to-impact-christmas-travel-nationwide-airlines-brace-for-cancellations" target="_blank" rel="noopener">airlines cancel flights</a> and poor driving conditions impact the nation’s roads. Services such as FedEx and UPS warned of widespread delays on Friday.
“FedEx Express experienced substantial disruptions at our Memphis and Indianapolis hubs last night due to severe winter weather that has been moving across the United States,” FedEx said in a <a href="https://www.fedex.com/en-us/service-alerts.html" target="_blank" rel="noopener">statement</a>, adding that delays are possible for nationwide package deliveries on Friday and Saturday. “The safety of our team members remains our number one priority.”
UPS said in a <a href="https://www.ups.com/us/en/service-alerts.page" target="_blank" rel="noopener">statement</a> that “significant weather events across several regions” of the country are impacting air and ground networks, including hubs in Louisville and Rockford. “We will work to ensure the safety of our employees while minimizing effects on service,” the company announced. “Contingency plans are in place to help ensure that shipments arrive at their final destinations as quickly as conditions permit.”
The United States Postal Service also said that 89 post offices have been closed as a result of the storm, according to a <a href="https://www.cnn.com/2022/12/23/business/winter-storm-holiday-deliveries/index.html" target="_blank" rel="noopener">report</a> from CNN. Most of the affected locations are in North Dakota and South Dakota, with six closed locations in Nebraska and five each in Minnesota and Iowa.
Amazon also reported the temporary shuttering of some locations. “Out of an abundance of caution, we’ve temporarily closed some of our sites in the impacted areas,” Amazon spokesperson Barbara Agrait told the outlet. “We’ll continue monitoring weather patterns and will reopen sites and resume operations when it’s safe to do so.”
The dismal news for major delivery services comes as holiday retail sales are expected to grow between 6% and 8% since last year to possibly surpass $960 billion, according to <a href="https://www.dailywire.com/news/rise-in-holiday-spending-to-be-outpaced-by-inflation-forecast-says" target="_blank" rel="noopener">data</a> from the National Retail Federation. Consumers are increasingly reliant upon online shopping rather than in-store purchases, continuing a trend that accelerated during the lockdown-induced recession.
Although the growth appears to surpass the average 4.9% annual increase witnessed over the past decade, the expansion will be eclipsed by record inflation, which rose year-over-year at a 7.1% rate as of last month, according to a <a href="https://www.bls.gov/news.release/cpi.nr0.htm" target="_blank" rel="noopener">report</a> from the Bureau of Labor Statistics.
With respect to holiday travel, nearly 102 million Americans plan to drive to their holiday destinations, marking an increase of two million drivers since last year despite recent increases in gas prices, according to <a href="https://newsroom.aaa.com/2022/12/nearly-113-million-people-will-travel-from-december-23-to-january-2/" target="_blank" rel="noopener">data</a> from AAA. Meanwhile, roughly 54 million passengers will depart from airports between December 18 and January 3, constituting a 20% increase from last year, according to <a href="https://media.hopper.com/research/christmas-2022-holiday-outlook" target="_blank" rel="noopener">data</a> from Hopper.
An explanation for the increase in holiday travel could lie in the growing acceptance of virtual work arrangements. “With hybrid work schedules, we are seeing more people take long weekends to travel because they can work remotely at their destination and be more flexible with the days they depart and return,” AAA Senior Vice President of Travel Paula Twidale remarked.

Amazon Warehouse In Pennsylvania Evacuated After Roof Sags Under Weight Of Snow

Amazon, FedEx, Post Office Warn Of Delivery Delays As Winter Weather Persists

Delivery Services Warn Of Delivery Delays As Winter Weather Persists

Amazon

Christmas

FedEx

Severe Weather

U.S. Postal Service

One of the most noteworthy geopolitical and <a href="http://dailywire.com/topic/economy" target="_blank" rel="noopener">economic</a> developments in modern history has been the emergence of <a href="http://dailywire.com/topic/china" target="_blank" rel="noopener">China</a> as a superpower. The miraculous rise of the once-ascendent communist nation, however, could lose tremendous momentum as the strength of its manufacturing sector rapidly dissipates.
China’s gross domestic product has expanded at an average of 9% since the country opened and reformed its economy more than four decades ago, according to <a href="https://www.worldbank.org/en/country/china/overview" target="_blank" rel="noopener">data</a> from the World Bank, enabling more than 800 million residents to escape poverty. Over the past two years, however, the Chinese government has been among the most zealous enforcers of COVID lockdown policies on the planet.
Quarantines mandated under the nation’s zero-COVID policy have fostered unpredictable <a href="http://dailywire.com/topic/supply-chain" target="_blank" rel="noopener">supply chain</a> shocks for foreign companies in recent months, causing a push to build manufacturing and logistics capabilities elsewhere. American manufacturing orders from China have plummeted as much as 40%, according to <a href="https://www.cnbc.com/2022/12/04/manufacturing-orders-from-china-down-40percent-in-demand-collapse.html" target="_blank" rel="noopener">data</a> from the CNBC Supply Chain Heat Map.
“The fall in demand is a combination of persistent COVID-19 related shutdowns in China leading to bottlenecks in the export of products out of China, lower American consumer spending on merchandise goods, and supply chains gradually moving out of or diversifying away from China,” Hudson Institute senior fellow John Lee told The Daily Wire. “The latter reason will be a major cause of lower American demand for Chinese goods in structural terms as more goods into America will come from other markets.”
<a class="c-link" tabindex="-1" href="https://get.dailywire.com/readers-pass/read-only-v2?utm_campaign=dwplus&amp;utm_medium=editorial&amp;utm_source=dwsite&amp;cid=dwplus&amp;mid=z&amp;xid=0" target="_blank" rel="noopener noreferrer" data-stringify-link="https://get.dailywire.com/readers-pass/read-only-v2?utm_campaign=dwplus&amp;utm_medium=editorial&amp;utm_source=dwsite&amp;cid=dwplus&amp;mid=z&amp;xid=0" data-sk="tooltip_parent" data-remove-tab-index="true" aria-describedby="sk-tooltip-35350">TIRED OF THE LEGACY MEDIA’S BIAS CONTROLLING THE NARRATIVE AND OBSCURING THE TRUTH? JOIN US.</a>
In one high-profile example, an iPhone manufacturing facility in Zhengzhou was rocked by protests over zero-COVID restrictions, severely disrupting operations and leading Apple to accelerate production shifts to economies such as India and Vietnam, according to a <a href="https://www.wsj.com/articles/apple-china-factory-protests-foxconn-manufacturing-production-supply-chain-11670023099" target="_blank" rel="noopener">report</a> from The Wall Street Journal. The world’s most valuable technology company had already <a href="https://www.dailywire.com/news/apple-shifts-ipad-manufacturing-away-from-china-due-to-harsh-covid-lockdowns" target="_blank" rel="noopener">moved</a> some iPad production earlier this year to Vietnam, where the AirPod earbud series is manufactured, in reaction to lockdowns in Shanghai.
Lee, who formerly worked as senior national security adviser to Australian Foreign Minister Julie Bishop, remarked that “permanent geopolitical tensions” are another factor behind the “deliberate decoupling” of manufacturing deals between the United States and China. The trend is especially apparent in the technology sector, which has been the subject of <a href="https://www.dailywire.com/news/u-s-makes-historic-move-to-block-certain-chinese-tech-after-national-security-concerns" target="_blank" rel="noopener">increased scrutiny</a> over American regulators’ unease regarding Chinese espionage and intellectual property theft.
“In most merchandise goods which are not high-tech products, the supply chains moving out of China due to firms hedging against geopolitical tensions will continue to be a cause for lower American demand of Chinese goods into the future,” Lee commented. “Hence, it is geopolitical tensions leading to lower American demand for Chinese goods rather than lower American demand being the cause of geopolitical tensions.”
Staunch geopolitical aggression will likely be a central tenet of the nation’s foreign policy in the foreseeable future. Chinese President Xi Jinping, who recently began an unprecedented third term, lauded the defeat of democratic aspirations in Hong Kong and forecasted the imminent conquest of Taiwan in a <a href="https://www.dailywire.com/news/chinas-xi-issues-dark-warning-on-taiwan-as-he-consolidates-power-over-ccp" target="_blank" rel="noopener">speech</a> at the Chinese Communist Party’s twice-per-decade meeting of senior legislators. The executive has largely staked his reputation as a leader on the zero-COVID policy over the past two years.

Made in China. Cardboard boxes with text made in China and chinese flag on the roller conveyor.

Chinese Manufacturing Is Quickly Collapsing

Chinese Manufacturing Is Collapsing As Other Nations Rise In Prominence

Lockdowns

Xi Jinping

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