Impact of critical inputs on trade

The Canadian Government ordered three Chinese companies to divest from Canadian lithium miners. Argentina, Bolivia, and Chile consider forming an OPEC–style cartel to control the price of lithium. Chinese ceramics companies are shifting their focus to lithium refining, according to Bloomberg. Germany has blocked the sale of two chip makers to Chinese investors, writes Bloomberg. Meanwhile, TSMC is doubling down on US production of high–end chips in Arizona, reports the Wall Street Journal. Nvidia has engineered a chip for the Chinese market that meets US export control requirements, notes Reuters. We must prepare for the chip wars, opines Rana Foroohar in the Financial Times. Chad Bown explains the ins and outs of national security and semiconductors in his latest Trade Talks podcast.

Mentioned publications

Government of Canada orders the divestiture of investments by foreign companies in Canadian critical minerals companies – Government of Canada, 2 November 2022
Canada Orders Chinese Companies to Divest From Miners After Security Review – Paul Vieira and Vipal Monga, The Wall Street Journal, 2 November 2022
Canada determines that Chinese companies must divest from investments in critical minerals.
China’s lithium hold won’t be undercut by Opec-style cartel as Argentina, Chile, Bolivia consider alliance – Connor Mycroft, South China Morning Post, 5 November 2022
Argentina, Chile, and Bolivia consider creating a cartel for lithium similar to OPEC.
Lithium Frenzy Sees China Ceramics Hub Refocus on Battery Metals – Annie Lee, Bloomberg, 7 November 2022
Demand for EV battery inputs is so high that even ceramics manufacturers are getting in on the action.
Germany Blocks Two Chip Facility Sales to Chinese Investor – Michael Nienaber and Arne Delfs, Bloomberg, 9 November 2022
Strategic and national security concerns take priority over commercial considerations in Germany.
Chip-Making Juggernaut TSMC Eyes Multibillion-Dollar Arizona Factory Expansion – Asa Fitch and Yan Jie, The Wall Street Journal, 9 November 2022
TSMC doubles down in US cutting–edge chip production with help from the CHIPS Act.
Exclusive: Nvidia offers new advanced chip for China that meets U.S. export controls – Jane Lanhee Lee, Reuters, 8 November 2022
To save its business in China, Nvidia has engineered an alternative to meet US export control requirements.
We must prepare for the reality of the Chip Wars – Rana Foroohar, Op–ed: Financial Times, 31 October 2022
US actions to restrict China’s access to semiconductors are a reaction to an uncomfortable geopolitical reality.
National security, semiconductors, and the US move to cut off China – Chad P. Bown, Trade Talks (Podcast), 2 November 2022
An indepth discussion of the recent evolution of US export controls toward China.