Apr 24, 2024

I recently learned about concerns from U.S. officials regarding China’s growing capacity in industries such as electric vehicles, lithium-ion batteries, and solar. The focus of the concern is on underconsumption rather than “overcapacity,” which poses a threat to the green transition and global economic stability. It was noted that Chinese production of motor vehicles has been relatively low and total industrial production has been running below the 2014-2019 trend.

The news also emphasized the need to increase both demand and supply at home and abroad to address the issue of underconsumption. The focus should be on encouraging sustainable production rather than trying to suppress foreign production. This reframing of the problem could lead to more effective policies to address the issue and promote prosperity and sustainability.

In other news, the FTC has sued to block Tapestry from acquiring rival luxury goods maker Capri for $8.5 billion, citing concerns about reduced competition for consumer pricing and employee compensation. Additionally, SKKY is facing challenges in raising new funds in a soft fundraising environment, and the latest SRS Acquiom Deal Terms Study shows that earnouts have become more prevalent in non-life sciences acquisitions.

Lastly, Rippling, an SF-based employee onboarding company, raised $200m in Series F funding at a $13.5b valuation, while Coatue led a $100m funding round for Lumeris, a St. Louis-based value-based care enabler. These developments provide valuable insights into the current economic situation and the challenges that need to be addressed in the financial and business sectors.

Stay Well!