WASHINGTON – The National Association of Manufacturers expressed strong support for the decision by the US and European Union to initiate dispute settlement procedures in the World Trade Organization regarding China's export restraints.
In a press release, NAM vice president for International Economic Affairs Frank Vargo said, "NAM wants to see a robust, healthy, long-term trade relationship with China. That relationship must include adherence to the global trade rules that China committed to follow."
Vargo said China’s export restriction of nine key raw materials has "distorted trade and caused economic injury" to NAM members. China’s actions, NAM said, have "had the effect of subsidizing Chinese producers by allowing them to pay a lower price for those materials than US companies. In our view, this is a clear violation of commitments China made when joining the WTO."
The US and China have been engaged in discussions on the matter for two years.
NAM supported China’s inclusion in the WTO because it would bind the nation to international trade rules, including provisions for resolving trade disputes. "The decision by the Obama Administration to file this case is in fact a further sign of maturity in the US-China trade relationship," NAM said.
SAN JOSE -- Flextronics is among several Nortel Networks creditors calling for changes to the beleaguered telecom OEM's planned sale of certain wireless assets to Nokia Siemens Networks.
The Nortel-Nokia Siemens deal is worth some $650 million, which Nortel desperately needs to exit bankruptcy. But the creditors could hold up or cancel the deal, pending changes to the auction for the company's CDMA and LTE wireless assets.
Among their chief complaints: The $22.5 million breakup fee owed to Nokia Siemens, should Nortel sell the assets to someone else, and a term that permits Nokia Siemens to see competitors' bids. The creditors claim the rules unfairly handicap other potential bidders.
Nortel said it had one other bid besides the offer from Nokia Siemens. The Nokia Siemens deal is expected to close in July, pending other offers. According to reports, Nortel's creditors want the auction to last at least 15 more days in the hopes of generating additional bids.
Flextronics heads the major US creditors committee. The EMS firm makes a reported 70% of Nortel's equipment.
PARIS -- The electronics industry produces some €1.14 trillion worth of product last year, making it the world' second largest market, behind automotive, says a new research report.
WASHINGTON – Manufactured goods orders to US factories rose 1.8% in May, matching growth in April, the Commerce Department says.
This is a strong improvement over the economists’ expectation of a 0.6% decline.
Non-defense capital goods orders were up 4.8%, the largest increase in nearly five years.
Excluding transportation, durable goods orders were up 1.1% in May. Transportation products demand rose 3.6%, with commercial aircraft orders surging 68.1%.
However, demand for motor vehicles and parts dropped 8.1%. Machinery orders increased 7.7%, and demand for computers and related products rose 9.4%, say published reports.
Nevertheless, new home sales fell 0.6% during the month, the Commerce Department says. Sales were down nearly 33% year-over-year.
TAIPEI, TAIWAN – China handset makers saw first-quarter production volume drop 12.7% from last year to 135.4 million units, reports the Market Intelligence & Consulting Institute (MIC).
STAMFORD, CT – Worldwide PC shipments will drop 6% in 2009 to 274 million units, says Gartner Inc. in a revised forecast.
The firm had predicted a decline of 6.6% in May, and a 9.2% drop in March.
Gartner expects a 10% decrease in the second and third quarters, but predicts growth in the fourth quarter compared to 2008.
The firm also expects shipments to increase 10.3% in 2010.
Netbooks are expected to reach 21 million units in 2009 and 30 million next year, the firm says.
Gartner forecasts mobile PC units to increase 4.1% in 2009, but expects revenue to fall 12.8%. Desktops are expected to decrease 15.7%, with a 26.6% drop in spending.
