Front-loading Trump, China girds for trade battle

Plus, Lockheed Martin's new low-tech solution to wildfire prevention.

In today’s edition:

— China is already sending messages it expects a trade war. Could TikTok save the day?

— U.S. Senate votes to exempt homeowners from taxes on wildfire settlements from utilities

— High-tech Lockheed Martin turns low-tech for wildfire mitigation: a herd of goats in Colorado

— Large parts of the earth are rapidly transforming into deserts from humid climates, threatening economies, study says

— World Economic Forum estimates transition finance to cost another $370 billion annually between now and 2050

The BYD Dolphin is a compact hatchback EV currently available in Europe, Australia and Southeast Asia. Will it ever come to the U.S.? Photo: BYD.

China wasted no time preparing for a trade war with President-elect Donald Trump. Chinese exports, many of them renewable products such as solar panels, surged almost 7% in November, including to their highest levels to the U.S. in more than two years.

Analysts said behind the surge are a combination of front-loading shipments before January, sending more products to other Asian nations to be assembled and shipped to the U.S., and even American consumers ordering more goods from Chinese websites.

No doubt global trade politics are at play here, but China plays hardball. Witness its sudden decision this week to investigate Nvidia NVDA 0.00%↑ for antitrust violations, which knocked a chunk off the high-flying AI company’s stock price. Almost all of the so-called Magnificent 7 tech giants could suffer this harassment if things start to get ugly.

What could diffuse it? Ironically, it could come down to TikTok. The U.S. ban on the social media app is set to take effect Jan. 19, one day before Trump becomes president, if it is not spun off by its Chinese parent, ByteDance. An appeals court rejected a Chinese appeal this week.

But if the Supreme Court weighs in and the case gets extended into Trump’s term, it becomes what could be an extraordinary bargaining chip. Maybe there is too much intrigue here, but that’s the way Trump likes it; with him as the dealmaker.

In the meantime, battle preparations are on.

Don’t forget to contact me directly if you have suggestions or ideas dcallaway@callawayclimateinsights.com.

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Utility company PG&E pleaded guilty to 84 counts of involuntary manslaughter after its poorly maintained equipment sparked the 2018 Camp fire in Northern California, which killed 85 people and destroyed more than 18,000 structures. Photo: CalFIRE.

U.S. Senate vote on wildfire settlement taxes sets disaster precedent