Central Texas Global Business Pulse
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3 Stories that are must read
A Texas House committee weighed similar proposals at a Capitol hearing Wednesday. The state lawmaker who led the effort to ban citizens of China and other “hostile” nations from owning property in Texas says she will refile the legislation in 2025. Texas lawmakers on Wednesday convened to consider legislation to limit “hostile foreign organizations” from owning Texas land and assets, pointing to security threats that national security experts testified could stem from Chinese-affiliated companies operating in Texas.
Sino-Mexican trade is not reciprocal and the North American country must review China’s practices, its finance minister said on Saturday, echoing American concerns about industrial overcapacity. Mexico buys “US$119 billion a year from China and we sell US$11 billion”, according to Rogelio Ramirez de la O, who accused Beijing of boosting its share of global exports “at the expense of North America”.
Tesla plans to take a 183,000-square-foot, rail-served building being built by Houston-based Partners Real Estate. It marks the latest example of the electric vehicle manufacturer's growing footprint in the Austin suburbs. The Elon Musk-led company has more than 1 million square feet combined in Kyle, Hutto and now Taylor that offer ancillary support to its massive gigafactory in eastern Travis County, which spanned 10 million square feet of floor space at last count.
News & Updates
International
Taiwan firms are shifting supply chains to India from China, as Taipei and New Delhi strengthen economic ties, the head of the island's key trade body told Reuters, as global trade tension rises among major economies. Trade conflict between the United States and China drove up Taiwan's foreign direct investment (FDI) in India to more than $665 million in the five years to 2023, said James Huang, chairman of the Taiwan External Trade Development Council.
Vietnam will let electricity-guzzling factories buy electricity from wind and solar power producers, helping big companies like Samsung Electronics meet their climate targets and relieving pressure on the country's overstrained grid. The government decree allowing Direct Power Purchase Agreements, or DPPAs, was approved earlier this month. It lifts a regulation requiring all consumers of power to rely only on the state-run utility Vietnam Electricity, or EVN, and its subsidiaries, which distribute electricity at rates fixed by the government. Foreign investors that are vital to Vietnam's ascent as a major exporter had been clamoring for such a change.
Electric vehicle and energy storage maker Tesla initiated its Megafactory in Shanghai in December 2023 and completed the signing ceremony for land acquisition. Once delivered, the new plant will span an area of 200,000 square meters and come with a price tag of RMB 1.45 billion. This project, which marks its entry into the Chinese market, is a key milestone for the company’s strategy for the global energy storage market. As demand for energy storage continues to grow, the China-based factory is expected to fill Tesla’s capacity shortage and become a major supply region for Tesla’s global orders.
USA
Chinese officials warned a delegation of top U.S. executives visiting Beijing this week that higher tariffs on imports from China will harm their businesses inside the country. The delegation of influential business people belonging to the U.S. China Business Council, including the CEOs of FedEx and Micron, followed a top-level meeting last week where ruling Communist Party leaders endorsed a blueprint for policies that included numerous pledges to improve the business environment for foreign investors. But they also vowed greater vigilance in protecting state secrets, a potential minefield for foreign businesses that face intense scrutiny of their China operations by authorities.
The Missouri treasurer’s race highlights a new facet of opposition to China, which has been cast as a top threat to the U.S. by many candidates seeking election this year. Indiana and Florida also have restricted their public pension funds from investing in certain Chinese companies. Similar legislation targeting public investments in foreign adversaries was vetoed in Arizona and proposed in Illinois and Oklahoma.
The U.S. trade deficit in goods narrowed in June for the first time this year amid a broad rebound in exports, but that probably was insufficient to prevent trade from remaining a drag on economic growth in the second quarter. The impact on gross domestic product from the trade gap is, however, likely to be offset by a rise in inventories at wholesalers and retailers in June. The government is scheduled on Thursday to publish its advance estimate of second-quarter GDP growth, which is expected to show a pick-up in activity, thanks to a spurt in consumer spending in June.
The US aims to revitalize its domestic semiconductor manufacturing industry, but will there be enough skilled workers to meet the ambitious goals? This column presents evidence, based on a global dataset of 1.6 million employees with chip manufacturing skills, that US protectionist policies – increased tariffs and visa restrictions – implemented since 2018 may have undermined the very workforce the industry needs to thrive.
Texas
Tesla’s second-quarter net income fell 45% compared with a year ago as the company’s global electric vehicle sales tumbled despite price cuts and low-interest financing. The Austin, Texas, company said Tuesday that it made $1.48 billion from April through June, less than the $2.7 billion it made in the same period of 2023. It was Tesla’s second straight quarterly net income decline. Second-quarter revenue rose 2% to $25.5 billion, beating Wall Street estimates of $24.54 billion, according to FactSet. Excluding one-time items, Tesla made 52 cents per share, less than analysts’ expectations of 61 cents.
Celina, Texas, a city about 40 miles north of Dallas, earned the top spot as its population grew by more than 143% between 2020 and 2023. As of July 2020, the city had a humble population of just over 17,800. By July 2023, that number had swelled to more than 43,300, according to Census Bureau estimates. Residents say Celina is incredibly safe, has excellent economic health and offers an overall great quality of life, according to a 2022 community engagement survey the city sponsored. Fulshear, Texas, which lies about 30 miles west of Houston, experienced similar growth. Its population more than doubled, from 17,558 in 2020 to 42,616 in 2023.
Austin
Saronic Technologies has developed three types of drone boats that can be dropped into the water from the sky or deployed from beaches or larger boats. They can then operate in fleets that spread out and provide communication hubs, surveil other ships with advanced artificial intelligence and carry kinetic weapons, such as missiles, and non-kinetic weapons, like devices for cyber attacks and electrical disruptions. Its primary customers are the U.S. Navy and its allies. The company said July 19 that has raised a $175 million series B funding round and revealed that it is now valued at $1 billion, giving it unicorn status in startup parlance.
Events
Austin Big Business, Tech & Entrepreneur Professional Networking Soiree
August 19th, 2024
6PM-8:30PM
Calling All: Tech Startups ! Entrepreneurs ! Business Owners ! Professionals ! Free-lancers, policy-makers, game-changers, and heroes! Starting 2024 with Austin’s Best Professional Networking Affair.
Please join us for an evening of creativity, inspiration and passionate conversations. Join & raise a glass – make connections with co-founders, partners, coaches or core team members for your start-up- meet fellow professionals and mingle with makers of great and big ideas – take home treats from growing community and some business cards.
Hosted By – Austin’s Entrepreneurs, Startup & Business Coalition.
10300 Springdale Road Austin, TX 78754
Austin Small Business Expo 2024
November 14th, 2024
10AM-5PM
Austin Small Business Expo is a fantastic opportunity for small businesses to showcase their products and services, connect with potential customers, and network with like-minded entrepreneurs.
At the Expo, you’ll find a vibrant atmosphere buzzing with innovation and creativity. Discover the latest trends and technologies that can help your business thrive in today’s competitive market. Engage in insightful discussions, attend informative workshops, and gain valuable insights from industry experts.
Whether you’re a startup looking for guidance or an established business seeking growth opportunities, the Expo is the perfect platform to learn, collaborate, and expand your network. Connect with exhibitors from various industries, explore new partnerships, and build lasting relationships that can take your business to new heights.
Don’t miss out on this exciting event! Mark your calendars for November 14, 2024 and join us at the Palmer Events Center for the Austin Small Business Expo 2024. We look forward to seeing you there!
900 Barton Springs Road Austin, TX 78704
