Displaying items by tag: trade and commerce

Coronavirus restrictions are easing, and Germany’s economy is picking up as traders and service providers benefit, but industry suffers delivery problems. Global lockdowns have lowered production levels and interrupted supply chains. Essential raw materials, chemicals and component parts are in short supply and prices are skyrocketing. There are disruptions in container shipping, traffic congestion in ports and a shortage of containers, where three consortia control over 80% of the world market and dictate prices. For various reasons, the highest inflation since 2008 is on the horizon. In addition to the CO2 tax, world market prices for grain, which have risen 30%, are already raising the cost of living. Germany is an exporting country, dependent on international value-added trade-chains. There is now changed thinking concerning regional supply chains within the EU: now, instead of ‘just in time delivery’, storing becomes important.

Although Donald Trump and President Xi recently announced a trade agreement between the US and China, some believe 5G mobile networks might yet spark a further ‘trade war’. These mobile data networks will be rolled out commercially over the next decade, preparing the way for driverless cars and smart cities. Some say 5G technology, 100 times faster than today’s connections, could be a bigger leap forward than the original internet, and countries using it successfully will dominate 21st-century trade and commerce. Whoever builds and controls the new networks will take on huge political and economic importance. The US now wants to stop Chinese technology companies from taking a lead in this field. China is racing to gain a head start in these new technologies, and views 5G as potentially the key to 21st-century superpower status. See also UK article 3.