Central Texas Global Business Pulse - November 3rd 2024 - Big Plan

Central Texas Global Business Pulse

China International Import Expo (CIIE) 2024: Opportunities for Foreign Businesses

The 2024 China International Import Expo (CIIE) will be held from November 5-10 2024 in Shanghai, China, showcasing global products and fostering partnerships for foreign businesses in China’s vast consumer market. This is the 7th year of the expo, where businesses can maximize benefits by localizing products, enhancing brand visibility through media engagement, and staying informed on trade policies and market trends.

Big Plan LLC is excited to participate in this year's CIIE.

News & Updates

International

Mexico Wants to Curb Chinese Imports With Help From U.S. Companies

Mexico wants to reduce its dependence on imports from China and is asking some of the world’s biggest manufacturers and tech firms operating in the country to identify Chinese products and parts that could be made locally.

The administration of leftist President Claudia Sheinbaum, who took office last week, wants U.S. carmakers and semiconductor manufacturers as well as global giants in the aerospace and electronics sectors to substitute some goods and components manufactured in China, Malaysia, Vietnam and Taiwan, said Deputy Trade Minister Luis Rosendo Gutiérrez.

Brics+ group expected to surpass G7 in global trade by 2026: EY India

The Brics+ grouping of nations like India, China and Russia is rapidly increasing its share in global merchandise exports and imports and is expected to surpass G7 group by 2026, EY India said in its latest edition of EY Economy Watch.

The share of Brics+ group in global merchandise exports has increased from 10.7 per cent in 2000 to 23.3 per cent in 2023, an increase of 12.6 percentage points. On the other hand, the share of the G7 group in global exports has fallen by a margin of 16.2 percentage points from 45.1 per cent to 28.9 per cent over the same period.

AI Leaders Gather in Saudi Arabia to Talk Energy

Some of the world’s top financiers, tech CEOs and investors are in Riyadh this week for the Future Investment Initiative, also known as Davos in the Desert, for a conference that is mostly centered on AI.

Despite the ongoing conflict in the Middle East, the event features an impressive lineup that includes Alphabet Inc.’s Ruth Porat, former Google Chief Executive Officer Eric Schmidt, TikTok CEO Shou Chew, Blackstone Inc.’s Stephen Schwarzman and Blackrock Inc.’s Larry Fink.

South Africa looks to Africa and China ties as global trade fences go up

South Africa's trade minister said his country is pursuing more robust trade and investment ties within the continent and with China- its biggest trade partner - as the global trade environment becomes increasingly fraught. Parks Tau said that while he has had extensive and positive engagements with leaders in the United States, and collaborative relationships with Europe, South Africa is keen to develop more trade within Africa.

Hydro-Quebec’s EVLO to use Hithium DC block for 25-year warranty BESS solution

EVLO, the battery storage subsidiary of Canadian utility Hydro-Quebec, has signed a Master Supply Agreement (MSA) with China’s Hithium.

Announced last week (24 October), the deal will see manufacturer Hithium provide system integrator EVLO with DC blocks equipped with 314Ah lithium iron phosphate (LFP) cells.

USA

Foreign Markets Fear Possible Reverberations of a Trump Election Win

Foreign officials and economists worry that a Donald Trump victory could usher in a worldwide cascade of new trade barriers and an extended stretch of higher interest rates—a potentially punishing cocktail for weaker economies abroad.

Trade advocates have been concerned about Trump’s return to the White House since he won the Republican nomination earlier this year. Their distress has deepened as the former president doubles down on threats of high tariffs, and as some polls paint Trump the favorite with early voting now underway.

Goldman Institute calls for ‘data center diplomacy’ as U.S. competes in global AI race

Goldman Sachs Institute’s Jared Cohen says the U.S. will need to outsource its data center capacity, and choose its global partners wisely, as the AI race heats up. Big Tech companies are set to spend roughly $600 billion on AI data center infrastructure and development. “Data may be the new oil, and it’s ultimately nations, not nature, that’s going to determine the future of AI infrastructure built,” says Cohen.

Economic activity in the manufacturing sector contracted in October

Economic activity in the manufacturing sector contracted in October for the seventh consecutive month and the 23rd time in the last 24 months, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee

US finalizes rules to curb AI investments in China, impose other restrictions

The Biden administration said on Monday it is finalizing rules that will limit U.S. investments in artificial intelligence and other technology sectors in China that could threaten U.S. national security.

The rules, which were proposed in June by the U.S. Treasury, were directed by an executive order signed by President Joe Biden in August 2023 covering three key sectors: semiconductors and microelectronics, quantum information technologies and certain AI systems.

Revival Of Battery Manufacturing Sector Could Bolster Main Streets

The Biden-Harris Administration made a recent pledge of over $3 billion to support domestic battery manufacturing that could be a game-changer for the U.S. electric vehicle (EV) industry. This initiative through the Department of Energy, part of the broader Invest in America agenda, is projected to create 12,000 jobs and onshore key aspects of the battery supply chain — from lithium extraction to refining and recycling. This is critical to enhancing the nation’s competitiveness in the growing EV market.

Reviving battery manufacturing in the U.S. is not just an energy or environmental issue — it is also about adjusting to maintain America’s place as a global economic leader before it is too late to do so. As the demand for electric vehicles continues to rise, the country must ensure it has access to the materials and proprietary technologies required for their production. With lithium demand expected to skyrocket 500% by 2030 in just the US alone, ensuring a domestic supply is critical.

Texas

Newly built 1.4M SF industrial park in Kyle, TX sold

JLL Capital Markets announced today the sale of Kyle 35 Logistics Park, a newly constructed 1,392,379-square-foot industrial park in Kyle, Texas, located in the rapidly growing corridor between Austin and San Antonio.

JLL represented the seller, Alliance Industrial Company. MDH Partners acquired the asset.

Completed in 2023, Kyle 35 Logistics Park consists of five state-of-the-art industrial Class A buildings ranging from 140,300 to 474,397 square feet. It features 36- to 40-foot clear heights, ESFR sprinkler systems, ample parking and other modern amenities sought after by industrial tenants. The property is 100% leased to Tesla, Inc., one of the world’s leading electric vehicle (EV) manufacturers and advanced technology companies.

American Airlines launches longest nonstop flight from a Texas airport to Australia

American Airlines launched its longest nonstop flight from the Dallas-Fort Worth International Airport last weekend as a part of its 2024 winter schedule.

The airline's longest scheduled flight was from Dallas to Brisbane Australia at the Brisbane Airport, traveling about 16 1/2 hours, which is 8,300 miles.

Kroger to test ‘Asian Experience’ stores in North Texas

Kroger is piloting “Asian Experience” stores in North Texas in 2025 that will feature products that cater to Asian cooking, according to a story in the Dallas Morning News.

The exact locations have not been announced, but one will be in Denton County and the other in Collin County.

TGI Fridays, the Casual Dining Chain, Files for Bankruptcy

The Dallas-based company filed for Chapter 11 bankruptcy in the Northern District of Texas to begin a “restructuring process” to ensure the “long-term viability of the brand,” according to a company statement.

The move comes as the company struggles with financial challenges brought, in part, by the Covid-19 pandemic, Rohit Manocha, the executive chairman of TGI Fridays Inc., said in the statement.

Austin

Big expansion on tap for Tesla gigafactory near Austin, according to filings

Tesla Inc. appears to be on the verge of a major expansion of its huge factory in eastern Travis County, with recent filings indicating the Elon Musk-led company intends to have construction crews working on 5 million square feet. Its current size is about 10 million square feet.

The electric vehicle manufacturer has submitted 10 filings to the Texas Department of Licensing and Regulation for ground-up construction and interior finish-out at the electric vehicle plant. The work is expected to encompass 5.2 million square feet, according to the filings, but it's unclear how much will be ground-up construction and how much will be devoted to fleshing out the factory's current shell.

Jupiter Power Secures $225 Million Corporate Credit Facility to Accelerate Energy Storage Growth

Jupiter Power LLC ("Jupiter Power"), a leading developer and operator of utility-scale battery energy storage systems, announced today the successful close of a $225 million corporate credit facility. The transaction strengthens Jupiter Power's ability to advance its expanding U.S. portfolio, which includes one of the nation's largest energy storage development pipelines, totaling over 12,000 MW.

The $225 million in total revolving credit facilities includes up to $175 million in letters of credit and $50 million in revolving loans. Barclays Bank PLC, HSBC Bank USA, and Sumitomo Mitsui Banking Corporation led the transaction on the lender side, serving as Coordinating Lead Arrangers. Kirkland & Ellis acted as borrower's counsel and Latham & Watkins as lenders' counsel.

Tech-centric shipping company Veho opening 'flagship' office in Austin as CEO relocates here

The top executive of a tech company that focuses on the shipping industry has moved to Austin as part of its plan to establish what it describes as a "flagship" office in the city.

Veho, which has a platform for package deliveries and returns, announced Oct. 31 that Austin is the site of its second flagship office — it says its first is in New York City — and that its CEO, Itamar Zur, has moved here. The office is at 823 Congress Ave. downtown.

Utah-based Sky Zone sees opportunity for multiple sites in Austin metro

Sky Zone, an indoor trampoline park, is entering the Austin market with multiple locations.

Franchisee Kersan Partners Inc. has already been tapped to open three locations in the metro and has sent letters of intent for properties in Cedar Valley, Leander and Round Rock, said Mike Revak, president of Sky Zone Franchise Group. The first is slated to debut in the first quarter of 2026, according to a company announcement, although it didn't specify which city will be first.

Hill Country sees surge in battery energy storage sites

Battery energy storage sites are becoming a booming industry across Texas, and the nearby Hill Country is proving to be a key part of that growth.

About 15 miles northwest of Boerne, an 8-acre site near Comfort is being developed by Albany, New York-based Key Capture Energy. The company is working on a new battery energy storage system site that was proposed over the summer. When complete, the site will store 100 megawatts of energy, which can be used by the Electric Reliability Council of Texas' electrical grid supporting the state and community during times of peak demand.

Opinion Editorial

Supply Chain Woes Carry High Risks, Big Rewards for Some Companies

Supply chains that underpin the economy are facing ongoing stress from geopolitical tension, labor disruption and natural disasters. Some companies say they’re gaining an edge in their markets with tools aimed at managing the risks, but it doesn’t come cheap or easy.

A new generation of strategies and technologies to manage risk is growing as the strains in supply chains persist following the upheaval during the Covid-19 pandemic that left many companies scrambling to plug gaps simply to remain in business.

Building Resilient Supply Chains Post-Pandemic: Why Nearshoring is Key

The COVID-19 pandemic exposed global supply chain vulnerabilities, pushing resilience to the forefront of business strategy. In this post, we’ll explore why nearshoring—relocating production to nearby countries—has emerged as a powerful approach to building resilient, stable supply chains.

Chinese companies use Biden’s climate law to expand their solar dominance

A year ago, the Biden administration accused one of China’s largest solar manufacturers of evading American tariffs. Now the company is building a massive panel factory in Texas — and it could receive more than $1 billion in tax subsidies under President Joe Biden’s signature climate law.

The strategic move by Trina Solar marks an emerging dilemma for U.S. officials: Should America reward the companies of one of its biggest adversaries for creating domestic jobs and expanding clean energy?

Events

U.S. Mexico Supply Chain Summit in El Paso Texas (March 27, 2025)

Global Diversity Export Initiative (GDEI) Trade Mission to India, Singapore, and Hong Kong (March 2-8, 2025)

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