Central Texas Global Business Pulse - September 15th 2024 - Big Plan

Central Texas Global Business Pulse

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US locks in steep China tariff hikes, some industries warn of disruptions

The Biden administration on Friday locked in steep tariff hikes on Chinese imports, including a 100% duty on electric vehicles, to boost protections for strategic industries from China's state-driven industrial practices.

The U.S. Trade Representative's office said that many of the tariffs, including a 100% duty on Chinese EVs, 50% on solar cells and 25% on steel, aluminum, EV batteries and key minerals, would take effect on Sept. 27.

South Korean, U.S. ambassadors to make stop in Williamson County as part of three-state trip

Update: On Sept. 11, Hyungdong Cho and Philip S. Goldberg visited the Austin area, attending a roundtable event to talk about strengthening the economic development partnership between the United States and Korea, meeting with Texas Gov. Greg Abbott and Samsung executives, and eating barbecue at Louie Mueller Barbecue in Taylor.

British Airways to almost double number of flights from Austin beginning in March

British Airways will almost double the number of flights it operates from Austin to London beginning in March 2025.

Currently, the airline operates one flight daily between AUS and London Heathrow. That will increase to 13 flights a week beginning March 31, with daily flights operating Monday-Saturday.

Flights currently leave Austin daily at 6:05 p.m., arriving in London at 9:35 a.m. the following day. The new flight will take off at 10:15 p.m. and arrive in London at 1:40 p.m. the next day.

Big Plan Highlights

Delta + Central Texas Food Bank Partnership

Fang Fang, CEO of Big Plan LLC, proudly volunteered with the Central Texas Food Bank, supporting their incredible work in partnership with Delta to provide nearly 54 million meals to families and nonprofits in need. Pictured with Olympian Gold Medalist Gabby Thomas and a surprise photobomb from Kanye H. Regional Sales Manger for Delta Airlines, this initiative showcases the power of community collaboration in fighting hunger.

News & Updates

International

US companies see record-low profits in China amid geopolitical tensions and slow growth

American companies in China are seeing record-low profits, with business confidence at an all-time low amid U.S.-China tensions and a slowing Chinese economy, according to a report published Thursday by a U.S. business group.

Out of 306 companies polled, a record-low 66% were profitable in 2023, according to the China business report published by the American Chamber of Commerce in Shanghai.

China auto suppliers, EV makers flood major trade fair in Germany

Nearly 900 Chinese auto suppliers and a handful of electric vehicle makers are taking part in a trade fair in Frankfurt as the country's car sector defies looming trading barriers to expand its global presence and counter sinking profits at home.

China’s central government will ‘expand’ Hong Kong’s role in Belt and Road Initiative

The central government has pledged that Hong Kong will play a bigger part in the Belt and Road Initiative, with mainland Chinese officials throwing their weight behind the city’s “irreplaceable” role in financial and professional services at a high-level conference.

Beijing made the assurance at the opening of the Belt and Road Summit at the Hong Kong Convention and Exhibition Centre on Wednesday, where the newly appointed deputy prime minister of Vietnam, Nguyen Hoa Binh, also called on city authorities to promote two-way tourism and business links with his country.

USA

Biden targets Shein, Temu with new rules to curb alleged ‘abuse’ of U.S. trade loophole

The Biden administration announced new steps on Friday to curtail what it calls the “overuse and abuse” of a longstanding trade law that permits low-value shipments to enter the United States without paying import duties and processing fees.

The steps include a new rule proposal, which would bar overseas shipments of products that are subject to U.S.-China tariffs from being eligible for the special customs exemption.

Known as the de minimis loophole, the trade provision allows packages with a value of less than $800 to enter the United States with relatively little scrutiny. Over the past decade, the number of de minimis shipments has exploded, from roughly 140 million to more than a billion, according to a White House estimate.

The Manufacturing Of Solar Panels In The US Is Soaring Thanks To IRA Policies

The Solar Energy Industries Association (SEIA) reported on September 9, 2024, that the policies and incentives promoted by the Inflation Reduction Act of 2022 have spurred the growth of solar panel manufacturing in the US. This year, the total output of US-made solar panels will be four times greater than it was before the IRA was passed. According to the US Solar Market Insight Q3 2024 report released yesterday by SEIA and Wood Mackenzie, the solar industry has added 75 GW of new capacity to the grid, representing over 36% of all solar capacity built in US history. Nearly 1.5 million American homes have installed solar since the IRA passed.

Climate Action Plans for States Made Easier with Free Tool

RMI and Energy Innovation’s free Energy Policy Simulator (EPS) can help states craft the most effective energy and climate plans. We developed EPS models for the 48 states in the continental US that estimate the environmental, economic, and human health impacts of different policies. The EPS is open-access and open-source, which allows for transparent planning and stakeholder engagement.

Texas

ExxonMobil joins forces with Mitsubishi for hydrogen plant in Texas, US

ExxonMobil has signed a project framework agreement with Japan’s Mitsubishi for participation in its proposed hydrogen and ammonia facility in the US state of Texas.

Under the agreement, the companies will continue discussions on Mitsubishi’s acquisition of low-carbon ammonia and its potential investment in the project.

Texas woos Taiwan's chip giants with US$700M fund and tax perks

In July 2024, Texas Governor Greg Abbott visited Taiwan to strengthen bilateral ties between the two regions, aiming to attract Taiwanese semiconductor companies to set up operations in Texas. As part of this effort, Abbott signed an economic cooperation agreement with Taiwan's Ministry of Economic Affairs (MOEA) and established the State of Texas Taiwan Office (STTO).

The STTO's mission is to boost economic collaboration and increase Taiwanese investment in Texas, particularly in the semiconductor sector. STTO Director Joe Nieh highlighted Texas' competitive advantages, particularly its business-friendly tax system. "Texas doesn't have a state-level corporate income tax or personal income tax. We also waive sales and use taxes for manufacturing equipment and energy used for manufacturing. Additionally, there are property tax exemptions and R&D tax incentives that make Texas attractive to high-tech industries," he explained.

To further support semiconductor companies, Nieh pointed out the Texas Semiconductor Innovation Fund (TSIF), a US$700 million fund offering cash grants to the semiconductor ecosystem, including fabs and related businesses. "This fund can be particularly helpful for companies already considering a presence in Texas," he added.

Austin

Singapore-based 65 Equity Partners buys a stake in Kendra Scott

One of Austin's most well-known homegrown brands has a new investor.

65 Equity Partners, a Singapore-based private equity firm owned by Temasek Holdings, said Sept. 13 that it has made a minority investment in Austin-based jewelry and lifestyle company Kendra Scott Design Inc.

Korean ambassador touts Williamson County as 'top destination' for foreign investment

Williamson County was touted as the "top destination" for foreign investment from South Korea during a recent visit from the country's lead diplomat.

Hyundong Cho, South Korea's ambassador to the U.S. and Philip Goldberg, the U.S. ambassador to South Korea, stopped by Taylor High School on Wednesday to discuss the area's semiconductor industry and economic development.

"Texas has become the major trading partner [of] Korea, and also, Texas has become the top destination of Korea's investment in the United States," Cho told reporters during the visit.

Opinion Editorial

Pre-Election Analysis: International Trade

As the 2024 US general election approaches, international trade has emerged as a pivotal issue, with presidential candidates Vice President Kamala Harris and former President Donald Trump navigating a complex web of global trade dynamics, from shifting supply chains and geopolitical tensions to emerging markets and trade agreements as they make their case for election. Engaged voters will be keenly aware that the approach taken by the winner of the presidential contest will have profound implications not only for the US economy but also for the nation’s standing in the global arena.

Events

How to leverage skills-based volunteering (Sep 26th at 4:30 PM - 6:00 PM)

State of the City (Oct 15th at 8am to 10 am)

Tagged airlines, asia, austin, austintx, battery, china, cleantech, economicdevelopment, entrepreneurship, minorityownedbusiness, news, smallbusiness, solar, southkorea, supplychain, tariff, technews, texas, tx, usa, williamson