reedak
Well-Known Member
- Joined
- May 1, 2014
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1. STORY: China has condemned a move by the Dutch government to restrict exports of key chip technology.
On Wednesday (March 8) the Netherlands said it would join the U.S. in imposing controls to protect national security.
That’s important, as the country is home to a key player in the global semiconductor industry.
ASML is the leading producer of the lithography machines that make chips.
The Dutch government didn’t mention the company in its proposed restrictions, but did list some lithography systems as among those to be controlled.
On Thursday (March 9) a Chinese government spokesperson condemned the move:
"China is firmly opposed to the interference in economic and trade cooperation, and the sabotage of stability of global production and supply chains. This behaviour is not in the interests of any party. We also hope that the Netherlands can seriously consider the causes for this situation and what should be done."....
Source Link: https://news.yahoo.com/china-slams-dutch-move-halt-113900282.html
2. The US is trying to hold its high ground of dominance of the semiconductor industry via export restrictions and subsidies to increased domestic manufacturing, notably via the Chips Act. Yet experts are quietly warning that this plan to decouple from China may backfire, particularly if pursued too aggressively.
....there’s a weird myopia in not understanding that China has plenty of ways of retaliating if thing were to get ugly, given US dependence on China for many imports, starting with pharmaceutical ingredients and seemingly humble chemicals like ascorbic acid. And as we’ll address soon, a broad analysis of technology leadership by an Australian think tank shows the China to be number 1 in 37 of 44 categories....
Source Link: https://www.nakedcapitalism.com/202...-china-another-sanctions-backfire-coming.html
3. ....It is striking how the US government has mirrored China’s state-run regime, by wrestling control of the free market. Under the foreign direct product rule, BIS’s controls apply extraterritorially due to a global reliance on US patents and talent. The US Department of Commerce can issue export licenses to whichever entities it wants, and block sales deemed contrary to US commercial or strategic interests.
Such power naturally causes unease among US allies. Even Japanese trade officials — known for their measured demeanor — were “bemused by how Japan’s sovereignty could be so disregarded.” However, US diplomats and lobbyists are keen to ensure that Dutch and Japanese firms are equally unable to serve the world’s largest chip market....
Market intervention comes at a price — production silos are rarely economically efficient. US industry losses are measured in billions. Firms in Taiwan, Japan, South Korea and Europe must also restructure their organizations to stay onside. Even when BIS issues export licenses, the procedural opacity stokes hysteria about favoritism or US protectionism.
For the EU, the disproportionate focus on lithography was just another example of successive US administrations using China as a pretext to neutralize Europe’s lead. Similar suspicions were also raised over US attempts to enter the 5G race....
Source Link: https://asiatimes.com/2022/12/us-chip-war-hitting-allies-and-missing-china/
4. America's so-called chip war against China is akin to selling to an airline an aircraft without wings, or one without wheels or engines or a steering wheel or a fuel tank. If the chief executive officer (CEO) of the airline continues to buy the white elephants, he must be the idiot of all idiots.
It is high time for China to discard its Ah Q mentality (阿Q精神) of moaning and groaning. Anyway, there is no need for China to take any countermeasure against America and the US lackeys. Just like any sensible buyer, it just has to use its common sense. The response is simple -- just stop all business dealings with those foreign firms in the chip war.
Given the fragile global economic conditions, the "potato chip" gas-emitting White House incumbent's chip war is self-defeating. Millions of companies around the world, especially those from the Netherlands, Japan, South Korea and other US allies that are forced to join in the conflict, will suffer immensely from the collateral damages of his folly.
Common people like you or me have no need for microchips that are used in cruise missiles, aircraft or warships. They can't fill our stomachs like potato chips. Hence if China stops all business dealings with those firms in the chip war, they will most likely stumble into bankruptcy within a year. Kiyosaki and other prophets of doom, including Nouriel Roubini, have already seen economic and financial crisis ahead.
Now thousands of disgruntled American importers are demanding billions of dollars in reimbursements in a US court as President Biden has stuck with most of Trump-era tariffs since taking office in January 2021. Some years down the road, if the "potato chip" gas-emitting US leader is still fortunate or unfortunate to be around in this world, he will have to dig a hole six feet deep to hide himself from millions of companies that will chase after him for compensation from the collateral damages inflicted upon them by his suicidal chip war.
Additional Reference:
www.firstpost.com
en.wikipedia.org
www.worldbank.org
On Wednesday (March 8) the Netherlands said it would join the U.S. in imposing controls to protect national security.
That’s important, as the country is home to a key player in the global semiconductor industry.
ASML is the leading producer of the lithography machines that make chips.
The Dutch government didn’t mention the company in its proposed restrictions, but did list some lithography systems as among those to be controlled.
On Thursday (March 9) a Chinese government spokesperson condemned the move:
"China is firmly opposed to the interference in economic and trade cooperation, and the sabotage of stability of global production and supply chains. This behaviour is not in the interests of any party. We also hope that the Netherlands can seriously consider the causes for this situation and what should be done."....
Source Link: https://news.yahoo.com/china-slams-dutch-move-halt-113900282.html
2. The US is trying to hold its high ground of dominance of the semiconductor industry via export restrictions and subsidies to increased domestic manufacturing, notably via the Chips Act. Yet experts are quietly warning that this plan to decouple from China may backfire, particularly if pursued too aggressively.
....there’s a weird myopia in not understanding that China has plenty of ways of retaliating if thing were to get ugly, given US dependence on China for many imports, starting with pharmaceutical ingredients and seemingly humble chemicals like ascorbic acid. And as we’ll address soon, a broad analysis of technology leadership by an Australian think tank shows the China to be number 1 in 37 of 44 categories....
Source Link: https://www.nakedcapitalism.com/202...-china-another-sanctions-backfire-coming.html
3. ....It is striking how the US government has mirrored China’s state-run regime, by wrestling control of the free market. Under the foreign direct product rule, BIS’s controls apply extraterritorially due to a global reliance on US patents and talent. The US Department of Commerce can issue export licenses to whichever entities it wants, and block sales deemed contrary to US commercial or strategic interests.
Such power naturally causes unease among US allies. Even Japanese trade officials — known for their measured demeanor — were “bemused by how Japan’s sovereignty could be so disregarded.” However, US diplomats and lobbyists are keen to ensure that Dutch and Japanese firms are equally unable to serve the world’s largest chip market....
Market intervention comes at a price — production silos are rarely economically efficient. US industry losses are measured in billions. Firms in Taiwan, Japan, South Korea and Europe must also restructure their organizations to stay onside. Even when BIS issues export licenses, the procedural opacity stokes hysteria about favoritism or US protectionism.
For the EU, the disproportionate focus on lithography was just another example of successive US administrations using China as a pretext to neutralize Europe’s lead. Similar suspicions were also raised over US attempts to enter the 5G race....
Source Link: https://asiatimes.com/2022/12/us-chip-war-hitting-allies-and-missing-china/
4. America's so-called chip war against China is akin to selling to an airline an aircraft without wings, or one without wheels or engines or a steering wheel or a fuel tank. If the chief executive officer (CEO) of the airline continues to buy the white elephants, he must be the idiot of all idiots.
It is high time for China to discard its Ah Q mentality (阿Q精神) of moaning and groaning. Anyway, there is no need for China to take any countermeasure against America and the US lackeys. Just like any sensible buyer, it just has to use its common sense. The response is simple -- just stop all business dealings with those foreign firms in the chip war.
Given the fragile global economic conditions, the "potato chip" gas-emitting White House incumbent's chip war is self-defeating. Millions of companies around the world, especially those from the Netherlands, Japan, South Korea and other US allies that are forced to join in the conflict, will suffer immensely from the collateral damages of his folly.
Common people like you or me have no need for microchips that are used in cruise missiles, aircraft or warships. They can't fill our stomachs like potato chips. Hence if China stops all business dealings with those firms in the chip war, they will most likely stumble into bankruptcy within a year. Kiyosaki and other prophets of doom, including Nouriel Roubini, have already seen economic and financial crisis ahead.
Now thousands of disgruntled American importers are demanding billions of dollars in reimbursements in a US court as President Biden has stuck with most of Trump-era tariffs since taking office in January 2021. Some years down the road, if the "potato chip" gas-emitting US leader is still fortunate or unfortunate to be around in this world, he will have to dig a hole six feet deep to hide himself from millions of companies that will chase after him for compensation from the collateral damages inflicted upon them by his suicidal chip war.
Additional Reference:
China criticises Dutch plan to curb access to chip tools
China on Thursday criticised the Netherlands for joining Washington in expanding curbs on Chinese access to technology to make processor chips that Western governments say might be used in weapons or to commit human rights abuses
The True Story of Ah Q - Wikipedia
What is the meaning of Ah Q? - Studybuff
In modern Chinese language, the term the Ah Q mentality (阿Q精神, Ā Q jīngshén) is used commonly as a term of mockery to describe someone who chooses not to face
studybuff.com
Global Economic Prospects: Sharp, Long-lasting Slowdown to Hit Developing Countries Hard
Global growth is slowing sharply in the face of elevated inflation, higher interest rates, reduced investment, and disruptions caused by Russia’s invasion of Ukraine, according to the World Bank’s January 2023 Global Economic Prospects report.
www.worldbank.org
