Japan and Netherlands agree to join the US chip curbs against China

reedak

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1. (Reuters) -- Japan and the Netherlands have agreed in principle to join the U.S. in tightening controls over the export of advanced chipmaking machinery to China, Bloomberg News reported on Monday, citing people familiar with the matter.

In October, the Biden administration published a series of curbs aimed at stopping the export of chipmaking technology and certain chips made through U.S. equipment anywhere in the world to China.

Apart from some U.S. gear suppliers, Japan's Tokyo Electron and Dutch lithography specialist ASML Holding were the two critical players needed to make the sanctions effective, making their governments' adoption of the curbs a key milestone, the report said....

Source Link: https://asia.nikkei.com/Politics/In...lands-to-join-U.S.-in-China-chip-curbs-Report

2. Let us analyse what the "gas-emitting" White House incumbent means when he talks about his so-called US "competition" with China. If it is a real and healthy competition like the Olympic marathon, it should be welcomed by all countries, because it will advance science and technology to higher levels for the benefits of all mankind.

The malicious motives of the US, however, are very obvious when we see how it pressures its allies, even all countries, to join it in its chip curbs and tech war against China. Using the analogy of a rogue runner in a marathon, the rascal is getting his lackeys and all other people to obstruct the progress of his rival by all dirty means, such as pushing, tripping, throwing banana skins, spilling oil in the path, etc.

Despite the US boast about open transparency in all words and deeds, it is not transparent after all. The so-called "competition" is obviously an arms race with China.

3. If we look at back at history, there is nothing new in the so-called "competition" or tech curbs or arms race against China. Such tech curbs have been in existence since the establishment of modern China in 1949. Such tech restrictions, however, could not prevent China from obtaining the nuclear bombs, making huge advance in space technology, arms modernisation, etc. Similarly, US tech curbs and sanctions have failed to prevent such "backward" countries as North Korea and Iran from obtaining the nuclear bombs or modernising their weapons. It is ironical that a nuclear superpower like Russia is alleged to rely on Iranian and North Korean weapons in its invasion against Ukraine.

The US chip curbs against China shows that Uncle Sam has not learned his bitter lessons from history. As an example, in the First and Second World Wars, Germany could build powerful new weapons such as the U-boats despite restrictions by its enemies. There is no doubt that China will win in the chip race just like its early success in the space and nuclear race. The Chinese military does not need to set up a huge semiconductor corporation to win the arms race. Taking a leaf from its past success in nuclear and space technology, China just has to build a few secret laboratories together with huge investment in technological research.

4. China is the world's largest consumer of semiconductors because of the size of its electronics market and its status as the "world's factory." Consumer market is always a life-and-death matter for any enterprise, and semiconductor manufacturer is no exception. The US chip curbs against China are a double-edged sword. There will be a big drop in the business of semiconductor manufacturers all over the world if such companies yield to US pressure not to do business with China. In other words, the chip curbs against China are suicidal for such companies.

Semiconductor chips are not potato chips and crisps that can find a ready market from the man in the street, especially children. Neither are they the "democracy chips" touted by Taiwan's DPP leader Tsai. The semiconductor business is cyclical in nature. There was a downward cycle in the industry some years ago. Many chip companies around the world nearly went bust, and some big Taiwanese chip corporations took the opportunity to acquire those companies at low prices.

By pressuring all other countries to join it in its chip war against China, the US is paving the way or planting the seed of disaster for the global semiconductor industry some years down the road. Many countries, including some EU members, are rushing headlong into the semiconductor industry. Taking the analogy of all farmers rushing to grow apples at the height of demand, the foolish farmers will end up holding an overabundance of rotten apples in the end. :cry:

Additional Reference:



 
Werbung:
" There is no doubt that China will win in the chip race"

there is plenty of doubt in that.
 
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