Efforts by the U.S. and its allies to erase China from semiconductor supply chains are being met by parallel moves in China itself. Beijing is undertaking an aggressive plan to build commercial chips with only domestic tools, a technological self-survival tactic that would help insulate China from U.S. sanctions. The WSJ’s Yoko Kubota reports the effort is part of a broader campaign to eradicate American technology in China, dubbed “Delete A” or “Decouple From A.” The plan is focused on sites such as a SMIC plant outside Beijing that incorporates chip-production equipment into its manufacturing line. It’s one sign of how geopolitics is recasting the global supply chains for chips that are at the center of crucial electronics and a range of manufactured goods, and shifting trade flows for the high-value goods. This year, the country will add more new semiconductor-production capacity than the rest of the world combined.

• China’s industrial sector shows clear signs of overcapacity, raising alarms in Western capitals about a potential new flood of cheap goods. (WSJ)
• Michigan Gov. Gretchen Whitmer will put $10 million toward an initiative aimed at developing workers in advanced semiconductor technology. (Detroit News)

The pressure on China’s electric-vehicle battery supply chain is growing. Several Republican lawmakers are calling on the Biden administration to ban top Chinese battery companies tied to Ford and Volkswagen from shipping to the U.S. The WSJ’s Richard Vanderford reports the lawmakers want Contemporary Amperex Technology, also known as CATL, and Gotion High-Tech barred over alleged forced labor in their supply chains. That could have a far-reaching impact in the automotive world: CATL is the world’s largest maker of electric-car batteries and works with Ford, while Gotion is partly owned by Volkswagen. It also complicates efforts by CATL and Gotion to establish themselves in the U.S. Lawmakers say the companies are “deeply compromised” because of links to China’s Xinjiang region, a target of accusations over forced labor. Both companies have had plans to build factories in the U.S. sideswiped by what CATL has called the “transitory issue” of geopolitics.

• Honda began production of a fuel-cell passenger vehicle at its Marysville, Ohio, plant. (Nikkei Asia)

Canadian border agents say they will begin strike action Friday afternoon unless they secure a new labor agreement. (WSJ) 

U.S. service-sector activity grew sharply in May, with sectors including transportation and warehousing reporting expansion. (MarketWatch)

The Bank of Canada cut its main interest rate by a quarter percentage point. (WSJ)

Australia’s economy expanded 0.1% in the first quarter. (WSJ)

The number of job openings in the U.S. sank in April to a more than three-year low. (MarketWatch)

New York indefinitely pushed back a controversial congestion pricing plan to charge drivers entering part of Manhattan. (WSJ)

Farm and construction machinery maker Deere is reducing production and cutting an unspecified number of salaried workers. (WSJ)

Discount retailer Dollar Tree is considering selling its Family Dollar business. (WSJ)

Hanesbrands is selling its Champion business to Authentic Brands in a deal valued at up to $1.5 billion. (WSJ)

Sales at Zara owner Inditex jumped 12% to start the second quarter. (WSJ)

Deutsche Bahn narrowed the list of bidders for freight forwarder DB Schenker down to a final four. (Reuters)

A study says U.K. clothing exports to the European Union have dived since Brexit ushered in new rules and red tape. (The Guardian)

Large numbers of shippers and forwarders say their contracted container shipments are being rolled from vessels at congested Asian ports. (The Loadstar)

Barcelona and other ports in the western Mediterranean region are being swamped by container volumes due to ship diversions. (Journal of Commerce)

A joint World Bank and S&P Global Market Intelligence report on container port performance included no U.S. sites in its top 50 rankings for efficiency. (Splash 247)

ACT Research says shippers’ elevated use of private fleets is contributing to the downturn in commercial for-hire trucking demand. (Commercial Carrier Journal)

AutoZone is expanding its distribution network in a push to improve availability of its automotive parts. (Supply Chain Dive)

Electrical supplies distributor Border States will add multiple North American distribution centers as it resets its operations and supply chain. (Modern Distribution Management)

Paul Page is editor of WSJ Logistics Report. Reach him at paul.page@wsj.com.

Follow the WSJ Logistics Report team: @PaulPage, @bylizyoung and @pdberger. Follow the WSJ Logistics Report on X at @WSJLogistics.