China Is Trying To Control Rising Semi Prices By Fining Auto Chip Manufacturers
China is taking a page out of the Keynesian central banking playbook on how to micromanage an entire economy and is now reportedly fining auto chip sales companies for driving up prices.
And, like central banks will soon find out, we expect China to find out the hard way that you can’t print, fine or tax your way to productivity.
The price increases are likely a normal result of a shortage of supply in semiconductors, which has plagued auto manufacturers for the better part of the last year.
China’s State Administration for Market Regulations said it had fined three local companies a total of 2.5 million yuan, according to a report in Automotive News Europe.
The companies fined included Shanghai Chengsheng Industrial, Shanghai Cheter and Shenzhen Yuchang Technologies.
Further, the regulator said it would continue to “closely monitor” prices and “crackdown on illegal market behavior”. You know, like letting supply and demand set prices…
Recall, we noted just days ago how the semi shortage, combined with a Covid outbreak in South Asia, were causing auto manufacturers to slash production targets.
Toyota is the latest legacy auto manufacturer to come out and announce it is revising its full year production forecast by about 300,000 units to 9 million units for the year, Bloomberg reported Friday morning.
The company is citing the Covid outbreaks in Southeast Asia that we have written about extensively, as well as continued shortages resulting from the semiconductor drought.
Output will be lower by 70,000 units in September and 330,000 units in October, the automaker said. It says its outlook for November, only two months away, is still “unclear” despite “very strong” demand.
We had cited Malaysian Covid outbreaks as throwing a wrench into the gears of already-stressed auto manufacturing plans for the summer. IHS predicts that 2.1 million units could wind up being lost in the third quarter of 2021 alone.
Malaysia is home to names like Infineon Technologies AG, NXP Semiconductors NV and STMicroelectronics NV, who all have operating plants in the country. With Covid infections soaring locally, plans for lifting lockdowns and re-opening production looked as though they could fall by the wayside last month. Daily infections were up to 20,000 per day in August, up from just 5,000 per day in late June.
- Cuba Becomes First Country To Mass Vaccinate Children As Young As 2-Years Old September 20, 2021
- Ron DeSantis and 25 Republican Governors Demand Southern Border Crisis Meeting with Biden September 20, 2021
- White House: Illegal Aliens Do Not Need Proof of Vaccination Because ‘Not Intending to Stay’ September 20, 2021
- DHS Steps Up Removal Flights for Haitian Migrants at Border Bridge Camp September 20, 2021
- When The Levee Breaks… September 20, 2021
- If Only We Could Find A Cure For Trump Derangement Syndrome September 19, 2021
- The Fed Has Liquidated Its Entire Corporate Bond Portfolio September 19, 2021
- Report: Secondary Schools in Afghanistan Open Without Female Students or Teachers September 19, 2021
- U.S., Mexico Begin Removal Flights for Haitian Migrants September 19, 2021
- Report: Beto O’Rourke Eyes Political Comeback in Texas Gubernatorial Race September 19, 2021
- Rickards: No Recovery Until 2045? September 19, 2021
- Kadish: Is It Puppeteers Or Puppets In Control In Washington? September 18, 2021
- Hospital Staff That Decline COVID Vaccine For Religious Reasons Must Attest To Also Swearing Off Tylenol, Tums, & Other Common Meds September 18, 2021
- ‘Justice for J6’: Protesters Call for Due Process for Capitol Attack Detainees September 18, 2021
- Mexican State Cops Stop Buses with Caribbean Migrants Headed for Border, They Kept Walking September 18, 2021
- EXCLUSIVE VIDEO: Venezuelan, Colombian Migrants Cross Border Upstream from Del Rio Migrant Camp September 18, 2021
- Could Biden Nominate Anti-Gun Activist David Chipman As “Gun Czar”? September 16, 2021
- COVID Hysteria Could Destroy A Generation September 16, 2021
- The Illusion Of Getting Rich While Producing Nothing September 16, 2021
- Report: John Durham Will Seek Indictment of Democratic Lawyer for Allegedly Lying to the F.B.I. During ‘Russian Collusion’ Investigation September 16, 2021
- 1,659,971 hits