It’s day 377 of the U.S.-China techno-trade war by our count. Here is the latest:
A blow to dronemaker DJI: Cape, a California-based startup that is “a supplier of drone technology to dozens of state and local law enforcement and public safety agencies…will stop working with Chinese drone manufacturers, citing security concerns,” reports Bloomberg (porous paywall).
“Apple is about to start trial production of its popular AirPods wireless earphones in Vietnam as the company accelerates plans to diversify manufacturing of its consumer electronics lineup beyond China,” says the Nikkei Asian Review (porous paywall).
“The ‘Defending America’s 5G Future Act’ was introduced in the Senate by Republicans Cotton, Marco Rubio and Mitt Romney and Democrats Chris Van Hollen, Mark Warner and Richard Blumenthal,” reports Reuters, noting that the Act is intended “to keep tight restrictions on Huawei Technologies Co Ltd, amid concern about President Donald Trump’s easing of curbs on the Chinese firm.”
“How has Duke Kunshan University been affected by the U.S.-China trade war?” asks the Duke Chronicle:
Duke Kunshan University has managed to stay out of the cross fire — at least for now… As far as operations and the general situation of the school, we’ve been fairly immune from the impact of difficult relations,” said Denis Simon, executive vice chancellor of DKU.
“China’s holdings of U.S. Treasury securities dipped in May to the lowest in two years” from $2.8 billion to $1.11 trillion, in the third straight month of declines, reports Bloomberg (porous paywall).
What does this mean? Probably not a lot. Despite the frequent media mentions of the threat of China dumping its U.S. Treasury holdings, no serious analyst — as far as we can tell — believes this to be a real possibility. Just yesterday, we published an explainer on this very subject on SupChina:
Note, in apology for the headline: China holds not only T-bills (which mature within a year), but also Treasury notes (two to 10 years) and Treasury bonds (longer than 10 years) as well as other instruments of U.S. government debt.