Stupid Americans came out with the decoupling and derisking concepts to con stupid Europeans to cripple their own competitiveness and industries. The superficial objectives of these concepts were touted as weapons to stop China's growth but instead, when put into practice, the victims were the European companies and industries and also the European economies.
Applying these concepts, like sanctions and keeping China out of the space programme have very clear objectives, with China the targeted country and the victim. In the case of chips and chip making machine, weaponising them against China is a double edged sword as the chips and chip making machine need buyers and China is the biggest buyers. Decoupling and derisking are totally insane acts that hurt the Europeans more than they hurt China. It is obvious that stupid European industries like ASML is hurting badly, and so do American chip manufacturers.
Decoupling and derisking are necessary when a party is a victim of another party that is weaponsing its strength to weaken or disadvantage the victim party. China or Russia should be the parties to practise decoupling and derisking to protect themselves. A good example is China decoupling/derisking from Australia's iron ore. When China is over dependent on Australian iron ore and the later was abusing its privilege of being the biggest supplier, it is in China's interest to decouple and derisk. China just did that to kill the Australian iron ore suppliers. China is also decoupling from American suppliers for chips and agriculture products like soya beans and poultry.
Now, why would ASML want to decouple and derisk from selling its highly lucrative chip making machine to China? Why would European countries that are highly dependent and benefiting from cheap Russian oil and gas think it is good to decouple/derisk from Russian suppliers? In the same vein, why would Wallmart want to decouple/derisk from Chinese suppliers, or Apple doing the same? The only reason, if any, is when China starts to weaponise its products and supplies to the users and consumers. Is China doing that? Is Russia weaponising its supplies of oil and gas?
Why would the rest of the world start a stampede to decouple and derisk from the American dollar and financial system? Exactly, the Americans are weaponising the dollar and financial systems against everyone at its whim and fancy. There are real and serious consequences not to decouple and derisk from the American dollar and financial systems.
On the other hand, ASML, chip makers, Apple, Ford, GM and many American and European companies, especially Mercedes, Volkswagen, BMW, Audi etc are having a symbiotic relationship with China and Russia, and benefiting from the relationships. The choice is obvious. When would American and European companies stupidly listen to the Washington narrative and want to decouple and derisk from Russia and China when the result is to their detriment?
Are the European leaders and industries leaders that stupid to cut their nose to spike their face? Or they had no choice, under coercion of the American Empire and do they die, don't do as told by the evil Americans they would also die?
The economies and industries of America and Europe are suffering badly. China too is affected, but this would be temporary as China is fully capable to developing its own needs and be self sufficient, just like the China Space Station and Space industries.
While the Europeans continue to be stupid and unthinking and blindly move along to decouple and derisk from the factory of the world and the biggest consumer market, the only thing to say is, 'Good Riddance' to bad rubbish and stupidity. In the case of ASML, it is not just decoupling/derisking, they are weaponsing the supply of chip making machine against China. But not to worry. They are hurting themselves as China would develop its own chip making machine and ASML can forget about the biggest buyers, just like Boeing. China would not buy from them any more.
They did not know why they want to decouple and want to derisk from China and Russia. Oh stupid South Korea and Japan are also in the same boat.
PS.China does not weaponise its products and services, including rare earth, until the Americans forced it upon China.
The Global South is decoupling and derisking from the US$, which is the bane of all global problems. This is the real elephant in the room that was never seriously looked into or realised until now. The USA had weaponised the US$ hegemony to bring harm to many countries using sanctions and seizure of reserves that caused misery and hunger for the people of those countries they targeted.
ReplyDeleteThe USA had misused the massive privilege of the US$ hegemony to print unlimited amounts of money to support military bases and supporting logistics, wars, subterfuge, instigation of unrest by funding opposition groups, terrorism and NGOs to destablise countries. The whole world now starting to realise how dangerous it is for them, after watching the seizure of the Russian Central Bank Assets over the Ukraine War. They are asking - Who is next?
What threat does China pose to the rest of the world as a 'Factory of the World' that it needed to be decoupled or derisked? In fact China is providing the world at large with cheaper products that the USA and the West cannot possibly compete with. China is also providing a lucrative market for businesses to sell and set up bases to manufacture cheaper products leveraging on its skilled workers, supply chains and infrastructure. The USA is not able to compete against China is those areas. That is the real reason why the decoupling and derisking hubris is invented to fool the blind. And the irony is that the Europeans, supposed to be the smartest and best educated, are the easiest to fool. How could the Global South not be fooled is a good question?
The narrative that China cannot be allowed to progress too fast is also another piece of fabricated crap. The real reason is that China is not allowed to overtake the USA in every field. But China is doing exactly what the USA and the EU feared. China's is now bypassing the USA in terms of research papers, patents and being self sufficient in many areas. Chips is the only sector that China needs to catch up and it is doing exactly that as a top priority.
In the recent past, depriving China of access to important developments in technology and engineering was the modus operandi, all designed to prevent China from rising. Not to mention that the Anglo Saxon Whites have already employed various underhand moves like using religion, drugging, attempting to tear up China into pieces, resorting to trade wars and even biological weapons, on top of the devious scheme being fabricated to nuke China on many occasions. Now trying decoupling and derisking to contain China and using the Chip sanctions to add more ammunition. China will overcome them. It is just a matter of time.
The USA and the West have seen the capabilities of China - in space technology and exploration, jet engine development, super computers, high speed trains, electric vehicles, communication equipment, AI and infrastructure developments. That China could now compete with the best after being left out in the cold for decades is testimony to the capabilities of the Chinese people.
We need to deCECA . .
ReplyDeleteUninvited US Treasury Secretary Janet Yellen, hat in hand, to visit China July 6-9
ReplyDeleteAs agreed between China and the United States, US Treasury Secretary Janet Yellen will visit China from July 6 to 9, China's Ministry of Finance confirmed on Monday.
Yellen’s visit comes just weeks after Secretary of State Antony Blinken, also uninvited, was in Beijing. It also coincides with the efforts of the US trying to avoid a recession while containing inflation.
The US Treasury said Yellen will discuss “the importance for our countries – as the world’s two largest economies – to responsibly manage our relationship, communicate directly about areas of concern, and work together to address global challenges.”
But actually, observers said Yellen is desperate to address the fiscal and financial issues between the two countries during her trip to China - a major objective is to persuade China to refrain from reducing its holdings of US Treasury bonds and instead increase them at the appropriate time to help the US addressing inflation issues.
China in April cut its holding of US Treasuries by $400 million to $868.9 billion, on increasing defaults risks, according to data released by the US Treasury on June 16.
According to updated information on the US Treasury website on June 16, the size of the US treasury bonds exceeded $32 trillion, reaching $32.039 trillion. If there is no foreign takeover, it will inevitably lead to increasing financial pressure on the US, observers said.
With all the vile and malicious intentions to destroy China over the decades - religious indoctrination (which they succeeded with the Native American Indians and other Natives) which gave them the thinking it will work against China but failed, forcing opium on the Chinese to make them weak which the Chinese fought back against, dividing China up into spheres of influence which the Chinese resisted, using trade wars as economic coercion against China which also failed, attempting to decimate China with COVID19 which did not work, and now using technology war to suppress China.
ReplyDeleteWhen the technology war being waged again fails, there will be further attempts in another form. China must keep up its military upgrading and remain strong, as the next attempt points to all out war. Why? Because the USA has run out of options to suppress China.
The site on Treasury holdings by countries has not been updated since January, 2023. Where can I find the latest figures? Would someone help?
ReplyDeleteThe slow updating could be intentional.
ReplyDeleteChina will ban the export of gallium and germanium, two components for chips and radars, in a bid to respond to the U.S.'s curb on supplies of high-tech components to China, the Ministry of Commerce said in a statement released Monday.
ReplyDeleteThe ministry will impose export controls on gallium and germanium-related items in order to safeguard national security and interests, the statement said.
Exporters shall apply for an export license to the Ministry of Commerce and report the contract and utility before shipping out the related item, it said.
The export control took effect on August 1.
https://youtu.be/If1XBWfh2VI
DeleteAbout 40 percent of the world's germanium, a metal even rarer than gold, is in China. However, this fact does not even rank it as first in the world.
ReplyDeleteIn fact, 70 percent of germanium's supply in the global market comes from China, while the US holds the largest germanium resources and has strict export control over it. A similar case applies to gallium of which China has the richest resources yet exports the absolute majority in the global market. Its export in 2022 had even grown by more than 40 percent than 2021. The mining of both involves heavy pollution to the environment.
All these facts make it just for the Ministry of Commerce and the General Administration of Customs to issue export restrictions on industrial products and material containing gallium and germanium from August 1, 2023. China needs to regulate its own mineral industry so as to develop it in a healthier way, instead of polluting itself only for the world's biggest mine holder to save it as a "strategic resource".
Those doubting China's decision could ask the US government why it holds the world's largest germanium mines but seldom exploits them. Or they could ask the Netherlands why it included certain semiconductor-related products, such as lithographic machines, into its export control list. It is they that challenge the world supply chain, and the blames that belong to them should never be shifted to China as it's defending its own legal national interests in this rather uncertain world.
China to impose export controls on key materials for chipmaking as West's 'chip war' escalates
ReplyDeleteBeijing. July 03 - China will impose export controls on gallium and germanium, both used in the making of semiconductors and other electronic components, starting next month to safeguard national security and interests, two ministries announced on Monday.
"In order to safeguard national security and interests, with the approval of the State Council, it is decided to implement export controls on items related to gallium and germanium," the Ministry of Commerce (MOFCOM) and the General Administration of Customs (GAC) said in a notice.
According to the notice, starting on August 1, items meeting certain characteristics shall not be exported without approval. The ministries listed eight items related to gallium, and six items related to germanium.
Under the export control, exporters must file an application with local commerce authorities for exports of the relevant items and must be approved by the Ministry of Commerce before exporting such items. Exporters would face fines and criminal charges, if they export such items without permission.
Both gallium and germanium are key in the making of semiconductors and other electronics. For example, germanium is used in fiber optics and semiconductors, while gallium is used in making chipsets for electronic devices such as computer motherboards or portable phones, according to media reports.
China is the world's top producer of raw gallium, which is used in making chipsets to generate high frequency raid waves in 5G base stations, accounting for 95 percent of the global output, according to industry information provider Fierce Electronics.
China is also a major supplier of germanium, which is mainly used in fiber and infrared optics, PET plastics, electronics and solar panels. The EU has listed the metal as a critical raw material, as it imports about 17 percent of its supplies from China, according to media reports.
While the notice issued by the MOFCOM and GAC on Monday did not go into detail of what prompted the move, apart from saying it aims to protect national security and interests, the move comes as the US and some of its allies are relentlessly stepping up crackdowns on China's technological development in various fields, including semiconductors.
For example, in the latest move, under mounting pressure from Washington, the Netherlands' government last week announced a ministerial order restricting exports of certain advanced semiconductor equipment. As a result, Dutch chipmaking equipment giant ASML said that due to these export control regulations, ASML will need to apply for export licenses with the Dutch government for all shipments of its most advanced immersion DUV lithography systems.
China has repeatedly voiced dissatisfaction over the Dutch move and called on the Dutch government to respect market principles and contractual spirits in order to avoid damage to bilateral cooperation. Chinese officials have also slammed the US' abuse of export control measures to maintain its hegemony, while creating disruption to global supply chains.
As the US and its allies continue to escalate their chip war and technological crackdown, it is normal and indeed crucial for China to take proactive measures to safeguard its technological development and national security and interests, Chinese industry analysts said.
India State Refiners Consider Paying in Yuan for Russian Crude as Moscow Rejects Indian Rupees
ReplyDeleteIn a blow to Indian pride, India’s state oil refiners Bharat Petroleum Corp. and Hindustan Petroleum Corp. are considering paying for Russian crude in yuan in an effort to widen their currency options.
Most payments are currently made in dirhams and dollars, and the risk that the use of these currencies for trade with Russia will be stopped is making the refiners look for alternatives, officials from the two companies said, asking not to be identified due to the sensitivity of the matter.
Spokesmen at India’s oil ministry, HPCL, BPCL and Indian Oil didn’t immediately reply to phone calls and text messages seeking comments.
Selling dollars to buy yuan would also result in India effectively helping China further its currency agenda, potentially a politically unpalatable step in India.
Russia ought to know when it comes to the crunch, only China will fight alongside Russia against UltraSatanicAmerica ( USA ) and its stooges. The joint effort by Russia and China in the Korean and Vietnam wars is concrete proof of a trustworthy relationship. But can Russia say the same of India when Russia needs military support ?
ReplyDelete- pretty cocksure India will talk its way out using its forked tongue and wriggle away.