Latest news with #ChineseManufacturers
The Verge
3 days ago
- Business
- The Verge
Is Trump about to ban DJI drones — or help them avoid a ban?
The Washington Post is reporting that he's expected to sign executive orders on drones next week, suggesting they could 'end Chinese drone sales in the US.' That might be true, but the main action WaPo describes is 'the executive order could direct the U.S. intelligence community to accelerate reviews of whether Chinese drone makers DJI and Autel are national security risks' — which is exactly what DJI would like the US to do. DJI products will be automatically banned unless an agency finishes that review. If there's a review, there's a chance. DJI explains why it won't stop drones from flying over the White House — and what happens in a US ban Sean Hollister Feb 5
Fast Company
16-05-2025
- Business
- Fast Company
How the U.S. can win back its manufacturing dominance with the Advanced Manufacturing Production Tax Credits
As a country, we have transitioned out of the industrial manufacturing phase to a service economy characterized by industries such as finance, healthcare, education, tourism, and information technology. These sectors, which added $19.61 trillion to the U.S. gross domestic product in 2023, focus on delivering value through knowledge and skills rather than tangible goods. Services trade accounted for $7.9 trillion of global exports in 2023, with the U.S. contributing $1 trillion to that total. But this country's future resilience rests on its manufacturing output and its ability to bring products to market. For the past few decades, the U.S. has been innovating new technologies, from cell phones to computer chips, but the manufacturing of these new products occurs overseas. However, manufacturing and innovation go hand in hand. China is now responsible for 35% of global gross manufacturing production. As its manufacturing capacity has gone up, investments in innovation have increased, up nearly 70% in the past five years. DOMESTIC MANUFACTURING PRIORITIES Technology is rapidly changing, and we need to be able to pivot just as quickly. In years past, the U.S. was secure in its position as a world leader in advanced technologies. Recent developments in the field of AI are raising some doubts. Right now, China has millions of people working on it, while the U.S. has thousands. Chinese manufacturers have leveraged affordable labor and economies of scale, along with significant government support, to overwhelm the competition. Given the sheer numbers, the next breakthrough is likely to come out of China rather than the U.S. The U.S. should focus attention on two industries: batteries and energy storage devices and advanced microchips. These two sectors touch everything from national defense to commercial applications. In the mid-1990s, the U.S. accounted for 37% of global semiconductor manufacturing. Today, most manufacturing capacity is in Taiwan, South Korea, and China, with the U.S. holding only 12%. What can be done to move the needle back in our favor? THE IMPACT OF THE ADVANCED MANUFACTURING PRODUCTION TAX CREDITS The Advanced Manufacturing Production provision (also known by its IRS Code Section, '45X') provides a credit for the production and sale of certain eligible components within the United States, including solar and wind energy components, inverters, qualifying battery components, and applicable critical minerals. Since its inception, this credit has contributed to more than $126 billion in manufacturing investment announcements, and it is expected to create over 560,000 jobs over the next 10 years. So, what does this actually mean? The credit accelerates our ability to build a domestic energy industrial base and supply chain by increasing capital expenditures and workforce development. These credits are useful tools for companies to bring forward investment projects on their roadmaps, which drive domestic manufacturing capabilities and secure our supply chain. In the U.S., the market expects a return on investment quickly. Rather than investing a billion dollars over 10 years, we'll make that investment in year one and expect a return in year three. In the past, manufacturing investments were a sure thing. But with rapidly changing technology and China's massive manufacturing base, it is hard for U.S. manufacturers to justify a project that is three to four years out when we can't quantify how fast China can move. BUILDING OUT THE ECOSYSTEM While the world has become more linked to China, China-based companies have become more vertically integrated. Not only have they reduced reliance on imports, but China has also increased the export of components other countries use in their manufacturing supply chain. The Advanced Manufacturing Production tax credit enables U.S. manufacturers to build a more diverse supply chain base by investing in the domestic manufacturing ecosystem. Companies can absorb a slightly higher production cost that may come with choosing domestic suppliers over subsidized Chinese imports. By supporting domestic suppliers, manufacturers can avoid potential tariffs, duties or foreign exchange rate challenges while also building a robust vertically integrated domestic supply chain. The additional investment in those suppliers can improve their processes, expand their operations and ultimately create one more barrier to entry from an import. The credit can also allow manufacturers to invest in their vertical integration strategy. By controlling every stage of the process, companies can ensure the quality and consistency of their products, which is vital to building trust with customers. Vertical integration makes domestic manufacturers more agile and better able to respond and adapt more quickly to market trends. Vertical integration also brings cost advantages by streamlining processes, reducing dependencies and providing a greater understanding of cost drivers. This visibility allows manufacturers to offer products at a competitive rate while protecting against supply chain disruptions and additional charges associated with long lead times. Currently, we have one player—China—that has become too big and too integrated, and they are holding down the global value of other players. We have allowed that competitor to get so big that it's starting to impede our ability to be self-sufficient. Other regions can deliver quality products for the global supply chain, although North American sourcing is preferable for U.S. companies to minimize potential disruptions. U.S. manufacturers have the discipline to stick with what they know how to do: maximize automation, manage costs, and control manufacturing complexity and the supply chain. The Advanced Manufacturing Production tax credit incentivizes domestic manufacturers to accelerate investments in their organizations. By retooling plants with new manufacturing processes and automation, building up their workforce, expanding capacity, and investing in R&D, U.S. companies will reclaim their positions in the manufacturing space that China currently dominates.
Zawya
07-05-2025
- Automotive
- Zawya
4th UAE China Tyre & Auto Parts Expo to be held at Expo Centre Sharjah from May 16-18
Sharjah, The 4th UAE China Tyre & Auto Parts Expo is set to drive into Sharjah, building on the success of its past three editions and promising to make a significant impact on the market once again. Designed to provide the regional market with direct access to the Chinese auto parts industry, a global leader known for its extensive manufacturing capabilities and rapid technological advancements, the 4th UAE China Tyre & Auto Parts Expo 2025 will begin at Expo Centre Sharjah from May 16, 2025. Organized by Inter Commerce Expo Corporation, the three-day event will feature more than 300 leading Chinese manufacturers and distributors who will showcase some of their latest products and services to the regional market. The event, supported by the Sharjah Chamber of Commerce and Industry (SCCI), will continue until May 18, 2025. A press conference was held today by Inter Commerce Expo Corporation at SCCI's headquarters to announce the launch of the fourth edition of the 4th UAE China Tyre & Auto Parts Expo. The conference was attended by Abdul Aziz Al Shamsi, Assistant Director-General for Communication and Business Sector at SCCI, and Mr. Steve Zhou, Director of International Affairs, Inter Commerce Expo Corporation, along with several officials from both sides. Abdul Aziz Al Shamsi affirmed the Sharjah Chamber's commitment to supporting the exhibition as a strategic platform for the growing tyre and auto parts industry in the UAE and wider region. He noted that the exhibition brings together leading Chinese and regional companies specializing in manufacturing, distribution, retail, and installation. It not only serves as a vital platform for business networking and innovation exchange in the tire and auto parts industry but also offers Chinese enterprises the opportunity to expand their market reach across the region. The previous show in May 2024 highlighted the impressive growth and technological advancements of China's tyre and auto parts industry. It successfully attracted around 10,000 professional visitors from the Middle East, Africa, Central, and South Asia, further cementing the UAE's position as a key trading hub. 'The rise in demand for Chinese auto parts is driven by competitive pricing, improving quality, technological advancements, and production efficiency. China's strategic bilateral relations and supply chain advantages with the UAE, along with its growing influence in the new energy vehicle industry, are key elements that will significantly contribute to the growth of the UAE automotive industry and the success of the UAE China Tyre & Auto Parts Expo," said Mr. Steve Zhou , Director of International Affairs, Inter Commerce Expo Corporation, the organizer of the Exhibition. The 4th UAE China Tyre and Auto Parts Expo 2025 will leverage the impressive $102 billion trade between the UAE and China in 2024, a 7% increase from the previous year. This growth highlights the strengthening economic ties and strategic importance of their bilateral relations, further emphasized by the 40th anniversary of diplomatic relations celebrated in 2024. These milestones make the Expo a key event for industry stakeholders. Industry observers note that the UAE's auto industry is significantly benefiting from its growing ties with Chinese manufacturers, particularly in market share expansion and electric vehicle adoption, which will be a key focus at the UAE China Tyre & Auto Parts Expo. The event will also feature a dedicated forum, which will delve into critical topics such as the current state of the Chinese tyre industry, the advanced technologies employed in tyre manufacturing, and the introduction of a new platform for online match meetings and warehousing. This forum will provide valuable insights and foster discussions among industry leaders, enhancing collaboration and innovation within the sector. The event will be a must-visit for decision-makers from various sectors of the aftermarket and supply chain, including garages, body shops, retailers, dealers, detailing services, vehicle manufacturers, and more. Held in association with Shandong Port Overseas Supply Chain (Qingdao) Co., Ltd. and Hualun Inter Tech FZCO, the event will feature a comprehensive range of exhibits, including all types of tyres, auto parts, electric vehicles, and charging stations, aiming to connect the regional market to the Chinese tyre and auto parts industries.
