{"id":6568,"date":"2024-09-01T04:13:14","date_gmt":"2024-09-01T04:13:14","guid":{"rendered":"https:\/\/www.lonestar-supply.com\/?p=6568"},"modified":"2024-09-01T04:13:14","modified_gmt":"2024-09-01T04:13:14","slug":"chinese-firms-skip-over-us-tariffs","status":"publish","type":"post","link":"https:\/\/www.lonestar-supply.com\/en\/oil-industry\/chinese-firms-skip-over-us-tariffs\/","title":{"rendered":"Chinese Firms Skip Over US Tariffs by Setting Up Shop in Mexico"},"content":{"rendered":"<div class=\"title\">\n<div class=\"title-bottom\">\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/newsletters\/2022-09-14\/supply-chain-latest-china-companies-bypass-us-duties-by-going-via-mexico\"><b>Article by Bloomberg<\/b><\/a><\/p>\n<\/div>\n<\/div>\n<div class=\"post\">\n<p class=\"media-ui-Paragraph_text-SqIsdNjh0t0-\" data-component=\"paragraph\">Chinese manufacturers looking to sidestep US tariffs and shorten pandemic-ravaged supply chains have found the perfect solution: Mexico.<\/p>\n<p class=\"media-ui-Paragraph_text-SqIsdNjh0t0-\" data-component=\"paragraph\">Plants and warehouses are sprouting up south of the border as companies take advantage to proximity to the world\u2019s biggest consumer market.<\/p>\n<p class=\"media-ui-Paragraph_text-SqIsdNjh0t0- paywall\" data-component=\"paragraph\">\u201cIf you want to do good business with America, you must have something close to the market,\u201d says\u00a0<strong>Simon Huang<\/strong>, country manager for\u00a0<strong>Kuka Home<\/strong>, a Chinese furniture manufacturer with operations at Hofusan Industrial Park that\u2019s located in a prime spot between Mexico\u2019s industrial capital and the US border.<\/p>\n<ul class=\"media-ui-UnorderedList_unorderedList-7VnRVJDGrzM-\" data-component=\"unordered-list\">\n<li class=\"media-ui-UnorderedList_item-rgtJA5F2ZB4-\" data-component=\"unordered-list-item\"><a class=\"media-ui-Link_link-tVkXhPLPofs-\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-09-13\/chinese-companies-get-around-us-tariffs-with-some-help-from-mexico\" target=\"_blank\" rel=\"noopener\" data-component=\"link\"><em>To read today\u2019s Big Take on Chinese manufacturers in Mexico, click here<\/em><\/a><\/li>\n<\/ul>\n<p class=\"media-ui-Paragraph_text-SqIsdNjh0t0- paywall\" data-component=\"paragraph\">That isn\u2019t Mexico\u2019s only selling point. Thanks to the country\u2019s free-trade pact with the US and Canada, a chair made at Kuka\u2019s factory in Hofusan can travel across the border duty-free, whereas one shipped to the US from China would be hit with a 25% tariff, according to Huang.<\/p>\n<div data-testid=\"viewport-element\">\n<figure class=\"styles_chart-container__fnhzx\" data-component=\"toaster-chart\">\n<h3 class=\"media-ui-Subhead_subhead-kvbO7lQX1LU- styles_title__AMlyl\" data-component=\"subhead\">Annual Net Investment in Mexico From China and Hong Kong<\/h3>\n<p><iframe id=\"toaster-chart-391093660\" class=\"styles_chart__vtFvp\" title=\"Annual Net Investment in Mexico From China and Hong Kong\" role=\"application\" src=\"https:\/\/www.bloomberg.com\/toaster\/v2\/charts\/aad849181683175b1de3a071728a418a.html?brand=business&amp;webTheme=business&amp;web=true&amp;hideTitles=true\" height=\"269\" scrolling=\"no\" data-mce-fragment=\"1\"><\/iframe><figcaption class=\"styles_caption__JTuax\">Source: Mexican Secretariat of Economy<\/p>\n<\/figcaption><\/figure>\n<\/div>\n<p class=\"media-ui-Paragraph_text-SqIsdNjh0t0- paywall\" data-component=\"paragraph\">Chinese investment in Mexico jumped from $154 million in 2016 to $271 million the following year, when\u00a0<strong>Donald Trump<\/strong>\u00a0took office threatening a trade war. The pandemic\u2019s supply-chain snarls and the angst caused by Chinese President\u00a0<strong>Xi Jinping<\/strong>\u2019s tech crackdown have catapulted yet more Chinese companies across the Pacific, with investment in Mexico hitting just under $500 million last year.<\/p>\n<div class=\"gap-1\">\n<div class=\"media-ui-BaseAd_baseAd-dXBqvbLRJy0- media-ui-BaseAd_adPlaceholder-W4Hid5G045M- media-ui-BaseAd_rendered-l1NeSo8x42M- media-ui-InBodyAds_inBodyAd-mz0YfknFCIM- styles_inBodyAd__23KGn\" data-component=\"in-body-ad\" data-ad-status=\"rendered\" data-ad-size=\"3x3\">\n<div id=\"in-body-98763-1\" class=\"display\" tabindex=\"-1\" role=\"presentation\" data-testid=\"sparkle-ad\" data-ad-status=\"rendered\">\n<div id=\"06e99196be1e027184997cf9a743bdd9\" class=\"bb-ads__ad bb-ads__rendered bb-ads__no_size bb-ads__size_3x3\" data-google-query-id=\"CJes0bbnoIgDFcELigMdWfwl3Q\">\n<div id=\"google_ads_iframe_\/5262\/newsletter\/supply-lines_2__container__\"><iframe id=\"google_ads_iframe_\/5262\/newsletter\/supply-lines_2\" tabindex=\"0\" title=\"3rd party ad content\" name=\"google_ads_iframe_\/5262\/newsletter\/supply-lines_2\" width=\"3\" height=\"3\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" aria-label=\"Advertisement\" data-google-container-id=\"3\" data-load-complete=\"true\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p class=\"media-ui-Paragraph_text-SqIsdNjh0t0- paywall\" data-component=\"paragraph\">Chinese companies aren\u2019t the first to seek shelter from US tariffs in Mexico. Japanese automakers began opening plants in the country in the 1990s in response to a barrage of import restrictions that began under\u00a0<strong>Ronald Reagan<\/strong>.<\/p>\n<p class=\"media-ui-Paragraph_text-SqIsdNjh0t0- paywall\" data-component=\"paragraph\">Firms from China have faced some operational challenges in Mexico. The US-Mexico-Canada Agreement, which replaced Nafta, requires that a higher proportion of the value of any good must come from North America to qualify for tariff-free treatment. But Mexico doesn\u2019t boast extensive networks of suppliers across a large number of industries, making it trickier to source materials.<\/p>\n<p class=\"media-ui-Paragraph_text-SqIsdNjh0t0- paywall\" data-component=\"paragraph\">Some of the new arrivals have other issues to contend with. Huang of Kuka Home says his Mexican workers are more inquisitive than those at home. \u201cMexican people always ask why\u2014\u2018Why should I do this?\u2019 \u2018Why should I do that?\u2019\u201d Huang says. \u201cThey want to understand the reason.\u201d Another difference: Workers in Mexico generally won\u2019t clock 16-hour days, like employees in China are willing to do.<\/p>\n<p class=\"media-ui-Paragraph_text-SqIsdNjh0t0- paywall\" data-component=\"paragraph\"><strong>Read More:<\/strong><\/p>\n<ul class=\"media-ui-UnorderedList_unorderedList-7VnRVJDGrzM-\" data-component=\"unordered-list\">\n<li class=\"media-ui-UnorderedList_item-rgtJA5F2ZB4-\" data-component=\"unordered-list-item\"><a class=\"media-ui-Link_link-tVkXhPLPofs- whitespace-normal\" href=\"https:\/\/www.bloomberg.com\/news\/terminal\/RI5M60DWLU68\" target=\"_blank\" rel=\"noopener\" data-component=\"link\">Mexico Tones Down Trade Rhetoric With US on Nearshoring Prospect<\/a><\/li>\n<li class=\"media-ui-UnorderedList_item-rgtJA5F2ZB4-\" data-component=\"unordered-list-item\"><a class=\"media-ui-Link_link-tVkXhPLPofs-\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-09-12\/us-officials-seek-to-persuade-mexico-s-amlo-on-energy-climate\" target=\"_blank\" rel=\"noopener\" data-component=\"link\">US and Mexico Express Optimism on Resolving Energy Dispute<\/a><\/li>\n<li class=\"media-ui-UnorderedList_item-rgtJA5F2ZB4-\" data-component=\"unordered-list-item\"><a class=\"media-ui-Link_link-tVkXhPLPofs-\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-07-05\/us-factory-boom-heats-up-as-ceos-yank-production-out-of-china\" target=\"_blank\" rel=\"noopener\" data-component=\"link\">US Factory Boom Heats Up as CEOs Yank Production Out of China<\/a><\/li>\n<li class=\"media-ui-UnorderedList_item-rgtJA5F2ZB4-\" data-component=\"unordered-list-item\"><a class=\"media-ui-Link_link-tVkXhPLPofs-\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-02-03\/mexico-readies-new-infrastructure-plan-to-jumpstart-the-economy\" target=\"_blank\" rel=\"noopener\" data-component=\"link\">Mexico Readies New Infrastructure Plan to Jump-Start Economy<\/a><\/li>\n<\/ul>\n<p class=\"media-ui-Paragraph_text-SqIsdNjh0t0- paywall\" data-component=\"paragraph\"><em>\u2014<\/em><a class=\"media-ui-Link_link-tVkXhPLPofs-\" href=\"https:\/\/twitter.com\/MddeH\" target=\"_blank\" rel=\"noopener\" data-component=\"link\"><em>\u00a0<\/em><em>Max de Haldevang<\/em><\/a><em>\u00a0in Mexico City<\/em><\/p>\n<h3 class=\"media-ui-Subhead_subhead-kvbO7lQX1LU-\" data-component=\"subhead\">Charted Territory<\/h3>\n<div data-testid=\"viewport-element\">\n<figure class=\"styles_chart-container__fnhzx\" data-component=\"toaster-chart\">\n<h3 class=\"media-ui-Subhead_subhead-kvbO7lQX1LU- styles_title__AMlyl\" data-component=\"subhead\">Rail Strike Would Be Among Largest in Recent US History<\/h3>\n<p class=\"styles_subtitle__AWEks\" data-component=\"toaster-subtitle\">Potential for 125,000 workers walking off job<\/p>\n<p><iframe id=\"toaster-chart-391269406\" class=\"styles_chart__vtFvp\" title=\"Rail Strike Would Be Among Largest in Recent US History\" role=\"application\" src=\"https:\/\/www.bloomberg.com\/toaster\/v2\/charts\/7c3b11b574e144c0a78f4f16bcfdc2fd.html?brand=business&amp;webTheme=business&amp;web=true&amp;hideTitles=true\" height=\"236\" scrolling=\"no\" data-mce-fragment=\"1\"><\/iframe><figcaption class=\"styles_caption__JTuax\">Source: US Department of Labor<\/p>\n<p>Note: Data span biggest work stoppages since 1993<\/p>\n<\/figcaption><\/figure>\n<\/div>\n<p class=\"media-ui-Paragraph_text-SqIsdNjh0t0- paywall\" data-component=\"paragraph\"><strong><em>Race to Finish<\/em><\/strong><em>\u00a0| US railroads and unions have until Friday to resolve a\u00a0<\/em><a class=\"media-ui-Link_link-tVkXhPLPofs-\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-09-13\/ending-the-railroad-labor-fight-deal-strike-delay-or-congress\" target=\"_blank\" rel=\"noopener\" data-component=\"link\"><em>labor dispute<\/em><\/a><em>\u00a0that risks a crippling shutdown of the nation\u2019s freight-rail network, wreaking havoc on the US economy. The two major unions still working to reach a deal cover some 57,000 workers. In the event of a strike, the 75% of newly built autos that move by rail would be stranded at their factories. So would be tens of thousands of carloads that carry everything from wheat bound for bakeries to plastic pellets used in soda bottles. The White House is considering the use of\u00a0<\/em><a class=\"media-ui-Link_link-tVkXhPLPofs-\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-09-13\/white-house-is-pushing-unions-rail-companies-to-avoid-strike\" target=\"_blank\" rel=\"noopener\" data-component=\"link\"><em>emergency powers<\/em><\/a><em>\u00a0to ensure critical material \u2014 such as chlorine for wastewater treatment plants \u2014 can be delivered in the event of a strike in order to avoid devastating disruptions to services. Amtrak is\u00a0<\/em><a class=\"media-ui-Link_link-tVkXhPLPofs-\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-09-13\/amtrak-cancels-more-long-distance-trips-as-freight-strike-looms\" target=\"_blank\" rel=\"noopener\" data-component=\"link\"><em>expanding service cancellations<\/em><\/a><em>\u00a0and the railroads are poised to\u00a0<\/em><a class=\"media-ui-Link_link-tVkXhPLPofs-\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-09-13\/norfolk-southern-to-halt-bulk-rail-shipments-as-of-thursday\" target=\"_blank\" rel=\"noopener\" data-component=\"link\"><em>stop shipments of farm products<\/em><\/a><em>\u00a0and other key goods starting Thursday.<\/em><\/p>\n<h3 class=\"media-ui-Subhead_subhead-kvbO7lQX1LU-\" data-component=\"subhead\">Today\u2019s Must Reads<\/h3>\n<ul class=\"media-ui-UnorderedList_unorderedList-7VnRVJDGrzM-\" data-component=\"unordered-list\">\n<li class=\"media-ui-UnorderedList_item-rgtJA5F2ZB4-\" data-component=\"unordered-list-item\"><a class=\"media-ui-Link_link-tVkXhPLPofs-\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-09-14\/tesla-chair-defends-china-presence-as-key-to-20-million-car-goal\" target=\"_blank\" rel=\"noopener\" data-component=\"link\">Selling to China<\/a>\u00a0| Tesla Chair Robyn Denholm has defended the US electric carmaker\u2019s focus on China and plans to expand further there, saying reaching a goal of making 20 million vehicles a year by 2030 will require manufacturing capabilities on every continent.<\/li>\n<li class=\"media-ui-UnorderedList_item-rgtJA5F2ZB4-\" data-component=\"unordered-list-item\"><a class=\"media-ui-Link_link-tVkXhPLPofs-\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-09-14\/typhoon-on-track-to-slam-shanghai-with-strong-winds-and-flooding\" target=\"_blank\" rel=\"noopener\" data-component=\"link\">Storm update<\/a>\u00a0| Typhoon Muifa barreled toward Shanghai, threatening to bring strong winds and flooding to the heavily populated region along China\u2019s eastern coast.<\/li>\n<li class=\"media-ui-UnorderedList_item-rgtJA5F2ZB4-\" data-component=\"unordered-list-item\"><a class=\"media-ui-Link_link-tVkXhPLPofs-\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-09-12\/liverpool-dockworkers-reject-pay-offer-plan-strike-next-week\" target=\"_blank\" rel=\"noopener\" data-component=\"link\">Strike wave<\/a>\u00a0| Two of Britain\u2019s largest ports are bracing for overlapping dockworker walkouts in coming weeks, threatening more disruption to the nation\u2019s trade flows in a dispute over pay.<\/li>\n<li class=\"media-ui-UnorderedList_item-rgtJA5F2ZB4-\" data-component=\"unordered-list-item\"><a class=\"media-ui-Link_link-tVkXhPLPofs-\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-09-14\/zara-s-owner-inditex-posts-jump-in-first-half-sales-and-profit\" target=\"_blank\" rel=\"noopener\" data-component=\"link\">Retail surprise<\/a>\u00a0| Inditex, the world\u2019s biggest fast-fashion retailer, reported first-half results that topped estimates as the owner of the Zara clothing brand defied a global surge in inflation. It also built up inventory to cushion against supply-chain snarls.<\/li>\n<li class=\"media-ui-UnorderedList_item-rgtJA5F2ZB4-\" data-component=\"unordered-list-item\"><a class=\"media-ui-Link_link-tVkXhPLPofs-\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-09-13\/xi-returns-to-world-stage-with-putin-to-counter-us-global-order\" target=\"_blank\" rel=\"noopener\" data-component=\"link\">Xi returns<\/a>\u00a0| In the almost 1,000 days since Xi Jinping last ventured abroad, China has found itself increasingly isolated within the US-led world order. He\u2019s finally reemerging this week alongside Russia\u2019s Vladimir Putin to showcase his vision for a viable alternative.<\/li>\n<li class=\"media-ui-UnorderedList_item-rgtJA5F2ZB4-\" data-component=\"unordered-list-item\"><a class=\"media-ui-Link_link-tVkXhPLPofs-\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-09-13\/eu-pushes-for-rationing-and-levies-in-energy-crisis-fight\" target=\"_blank\" rel=\"noopener\" data-component=\"link\">Rationing nears<\/a>\u00a0| European Commission President Ursula von der Leyen will call for radical steps to stem the energy crisis, edging closer to rationing measures and calling for a swoop on energy companies\u2019 profits.<\/li>\n<\/ul>\n<h3 class=\"media-ui-Subhead_subhead-kvbO7lQX1LU-\" data-component=\"subhead\">On the Bloomberg Terminal<\/h3>\n<ul class=\"media-ui-UnorderedList_unorderedList-7VnRVJDGrzM-\" data-component=\"unordered-list\">\n<li class=\"media-ui-UnorderedList_item-rgtJA5F2ZB4-\" data-component=\"unordered-list-item\"><a class=\"media-ui-Link_link-tVkXhPLPofs- whitespace-normal\" href=\"https:\/\/www.bloomberg.com\/news\/terminal\/RI5MOUDWRGG1\" target=\"_blank\" rel=\"noopener\" data-component=\"link\">Risk alert<\/a>\u00a0| Rising rates and recessionary fears are growing, yet credit across continents and sectors may be well positioned for additional supply and demand headwinds, Bloomberg Intelligence says in the FICC Focus Podcast.<\/li>\n<li class=\"media-ui-UnorderedList_item-rgtJA5F2ZB4-\" data-component=\"unordered-list-item\"><a class=\"media-ui-Link_link-tVkXhPLPofs- whitespace-normal\" href=\"https:\/\/www.bloomberg.com\/news\/terminal\/RI5RCFT0G1KW\" target=\"_blank\" rel=\"noopener\" data-component=\"link\">ITC ban<\/a>\u00a0| The US International Trade Commission issued an order blocking imports of a Chinese company\u2019s clinical-grade, genetically engineered rice seeds for medical uses after finding they infringe a patent held by Kansas developer Ventria Bioscience, Bloomberg Law reports.<\/li>\n<li class=\"media-ui-UnorderedList_item-rgtJA5F2ZB4-\" data-component=\"unordered-list-item\">Use the\u00a0AHOY\u00a0function to track global commodities trade flows.<\/li>\n<li class=\"media-ui-UnorderedList_item-rgtJA5F2ZB4-\" data-component=\"unordered-list-item\">Click\u00a0HERE\u00a0for automated stories about supply chains.<\/li>\n<li class=\"media-ui-UnorderedList_item-rgtJA5F2ZB4-\" data-component=\"unordered-list-item\">See\u00a0BNEF\u00a0for BloombergNEF\u2019s analysis of clean energy, advanced transport, digital industry, innovative materials, and commodities.<\/li>\n<li class=\"media-ui-UnorderedList_item-rgtJA5F2ZB4-\" data-component=\"unordered-list-item\">Click\u00a0VRUS\u00a0on the terminal for news and data on the coronavirus and here for maps and charts.<\/li>\n<\/ul>\n<\/div>\n<div><\/div>\n<div>Reference: <a href=\"https:\/\/www.bloomberg.com\/news\/newsletters\/2022-09-14\/supply-chain-latest-china-companies-bypass-us-duties-by-going-via-mexico\">https:\/\/www.bloomberg.com\/news\/newsletters\/2022-09-14\/supply-chain-latest-china-companies-bypass-us-duties-by-going-via-mexico<\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>Article by Bloomberg Chinese manufacturers looking to sidestep US tariffs and shorten pandemic-ravaged supply chains have found the perfect solution: Mexico. Plants and warehouses are sprouting up south of the border as companies take advantage to proximity to the world\u2019s biggest consumer market. \u201cIf you want to do good business with America, you must have something close to the market,\u201d says\u00a0Simon Huang, country manager for\u00a0Kuka Home, a Chinese furniture manufacturer with operations at Hofusan Industrial Park that\u2019s located in a prime spot between Mexico\u2019s industrial capital and the US border. To read today\u2019s Big Take on Chinese manufacturers in Mexico, click here That isn\u2019t Mexico\u2019s only selling point. Thanks to the country\u2019s free-trade pact with the US and Canada, a chair made at Kuka\u2019s factory in Hofusan can travel across the border duty-free, whereas one shipped to the US from China would be hit with a 25% tariff, according to Huang. Annual Net Investment in Mexico From China and Hong Kong Source: Mexican Secretariat of Economy Chinese investment in Mexico jumped from $154 million in 2016 to $271 million the following year, when\u00a0Donald Trump\u00a0took office threatening a trade war. The pandemic\u2019s supply-chain snarls and the angst caused by Chinese President\u00a0Xi Jinping\u2019s tech crackdown have catapulted yet more Chinese companies across the Pacific, with investment in Mexico hitting just under $500 million last year. Chinese companies aren\u2019t the first to seek shelter from US tariffs in Mexico. Japanese automakers began opening plants in the country in the 1990s in response to a barrage of import restrictions that began under\u00a0Ronald Reagan. Firms from China have faced some operational challenges in Mexico. The US-Mexico-Canada Agreement, which replaced Nafta, requires that a higher proportion of the value of any good must come from North America to qualify for tariff-free treatment. But Mexico doesn\u2019t boast extensive networks of suppliers across a large number of industries, making it trickier to source materials. Some of the new arrivals have other issues to contend with. Huang of Kuka Home says his Mexican workers are more inquisitive than those at home. \u201cMexican people always ask why\u2014\u2018Why should I do this?\u2019 \u2018Why should I do that?\u2019\u201d Huang says. \u201cThey want to understand the reason.\u201d Another difference: Workers in Mexico generally won\u2019t clock 16-hour days, like employees in China are willing to do. Read More: Mexico Tones Down Trade Rhetoric With US on Nearshoring Prospect US and Mexico Express Optimism on Resolving Energy Dispute US Factory Boom Heats Up as CEOs Yank Production Out of China Mexico Readies New Infrastructure Plan to Jump-Start Economy \u2014\u00a0Max de Haldevang\u00a0in Mexico City Charted Territory Rail Strike Would Be Among Largest in Recent US History Potential for 125,000 workers walking off job Source: US Department of Labor Note: Data span biggest work stoppages since 1993 Race to Finish\u00a0| US railroads and unions have until Friday to resolve a\u00a0labor dispute\u00a0that risks a crippling shutdown of the nation\u2019s freight-rail network, wreaking havoc on the US economy. The two major unions still working to reach a deal cover some 57,000 workers. In the event of a strike, the 75% of newly built autos that move by rail would be stranded at their factories. So would be tens of thousands of carloads that carry everything from wheat bound for bakeries to plastic pellets used in soda bottles. The White House is considering the use of\u00a0emergency powers\u00a0to ensure critical material \u2014 such as chlorine for wastewater treatment plants \u2014 can be delivered in the event of a strike in order to avoid devastating disruptions to services. Amtrak is\u00a0expanding service cancellations\u00a0and the railroads are poised to\u00a0stop shipments of farm products\u00a0and other key goods starting Thursday. Today\u2019s Must Reads Selling to China\u00a0| Tesla Chair Robyn Denholm has defended the US electric carmaker\u2019s focus on China and plans to expand further there, saying reaching a goal of making 20 million vehicles a year by 2030 will require manufacturing capabilities on every continent. Storm update\u00a0| Typhoon Muifa barreled toward Shanghai, threatening to bring strong winds and flooding to the heavily populated region along China\u2019s eastern coast. Strike wave\u00a0| Two of Britain\u2019s largest ports are bracing for overlapping dockworker walkouts in coming weeks, threatening more disruption to the nation\u2019s trade flows in a dispute over pay. Retail surprise\u00a0| Inditex, the world\u2019s biggest fast-fashion retailer, reported first-half results that topped estimates as the owner of the Zara clothing brand defied a global surge in inflation. It also built up inventory to cushion against supply-chain snarls. Xi returns\u00a0| In the almost 1,000 days since Xi Jinping last ventured abroad, China has found itself increasingly isolated within the US-led world order. He\u2019s finally reemerging this week alongside Russia\u2019s Vladimir Putin to showcase his vision for a viable alternative. Rationing nears\u00a0| European Commission President Ursula von der Leyen will call for radical steps to stem the energy crisis, edging closer to rationing measures and calling for a swoop on energy companies\u2019 profits. On the Bloomberg Terminal Risk alert\u00a0| Rising rates and recessionary fears are growing, yet credit across continents and sectors may be well positioned for additional supply and demand headwinds, Bloomberg Intelligence says in the FICC Focus Podcast. ITC ban\u00a0| The US International Trade Commission issued an order blocking imports of a Chinese company\u2019s clinical-grade, genetically engineered rice seeds for medical uses after finding they infringe a patent held by Kansas developer Ventria Bioscience, Bloomberg Law reports. Use the\u00a0AHOY\u00a0function to track global commodities trade flows. Click\u00a0HERE\u00a0for automated stories about supply chains. See\u00a0BNEF\u00a0for BloombergNEF\u2019s analysis of clean energy, advanced transport, digital industry, innovative materials, and commodities. Click\u00a0VRUS\u00a0on the terminal for news and data on the coronavirus and here for maps and charts. 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