Whatever comes out of the talks between Janet Yellen and
the Chinese leaders, China must never fall into the mistaken belief
that the USA really wants to repair ties and making peace. To the extent
that even if the tech war or the trade war is disbanded and over, China
must never let its priority be hijacked.
It is of paramount
importance that China should relentlessly pursue the path of self
reliance in the field of high end chip manufacturing, whatever happens,
even if the USA unwinds its sanctions of high end chips to China. If
China were to reverse gear or stagnate in its development in this area,
and thinks it is still more convenient to rely once again on foreign
entities supplying those high end chips, in view of assurances by the
other side, it is making the same fatal mistake again. China will
stagnate and be at the mercy of the USA, EU, Japan and the South
Koreans.
China's latest export restrictions on Gallium and
Germanium is the first step of its serious retaliation move against the
chip sanctions, and both are important essential rare earth minerals
required, not just for TSMC's chip production, but for ASML's chip
making machine as well, including many other requirements in the
military field. It is a calculated move by China. As I said before,
China's retaliation is calibrated to inflict the most pain. China's
continued hold on its position in the field of rare earth must also be
kept tightly controlled, as it has the biggest reserve as well as being
the world's biggest rare earth refiner.
When China has control of
these two essential areas, chip manufacturing and rare earth supplies,
it holds some measure of bargaining power to deal with countries
attempting to exert pressure on China with sanctions in selected fields,
like high end chips. China must therefore never let this be another
mistake needing correction in future.
Anonymous
PS. Yellen has dug a deep hole for the Chinese to fall in and be buried forever. 'Washington is not seeking a winner-take-all competition with Beijing'. Really? Anyone stupid enough to believe this?
The West has the machines. China has the raw materials needed to build the machines. Eventually, China will develop the knowhow to build the machines, it will then have both machines and raw materials. The West will have none as it can't build the machines without the raw material.
ReplyDeleteIn April, Yellen says security comes before economy in U.S.-China relationship: “Even though these policies may have economic impacts, they are driven by straightforward national-security considerations, We will not compromise on these concerns, even when they force trade-offs with our economic interests.”
ReplyDeleteNow in Beijing she says China should not let disputes over national security harm economic relations. Yellen’s remarks came several hours after she assured US business executives that she would voice concerns about Beijing’s punitive actions, including the escalating pressure on companies and possible Chinese export controls on critical minerals
Yellen is just like Biden. Both are old and forgetful.
ReplyDeleteNow that China is also using national security reasons to hit back against USA companies, the USA is criticising such action as 'unfair economic practices'. It cannot be that only the USA can use this national security weapon against others, and that it cannot apply to their similar actions. What is sauce for the goose is sauce for the gander, as they say.
ReplyDeleteAgain, the USA has not looked at, or fear to look at itself in the mirror. What has the USA done to Huawei, BJI, BYD, Tik Tok and others'? Those curbs and sanctions that they did against Chinese companies recently are 'fair economic practices'? That they can spout such fabricated arguments without a tinge of guilt is really hyprocrisy of the highest order.
The USA uses the Chips Act to stifle China, by forcing other countries to sanction China over high end chips import, all of which were done, not in retaliation against China acting rogue, but for no other reason than to prevent China from overtaking the USA. Is this 'fair economic practices' by any figment of the imagination?
Janet Yellen was quoted as saying that her current visit to Beijing was to mend ties, but by lecturing China on such issues as Chinese curbs on USA companies and branding such action as 'unfair economic practics' is not going to help. What kind of fairness or unfairness is she referring to? It cannot be just a one sided argument against China, while the USA's action is a non event, and not subject to criticism in the eyes of the Anglo Saxon Whites. This does not mean the USA side does not wrong.
It is quite obvious that those export controls on Gallium and Germanism by China is already expected to hit badly the chip and chip manufacturing equipment makers from Taiwan, Japan, South Korea and the Netherlands. Already TSMC is crying to the USA godfather for help in a perceived shortage of the above two raw materials.
This is just the start of China's retaliation. And it will not just affect chips and semiconductor manufacturers. The defence industry, EVs, AI and computers, smartphones will all be affected sooner or later. The West, Japanese and South Koreans wants to play their part in the USA's game of containing and sanctioning China and are getting what they deserve.
Moreover, Russia and China have yet to take steps to curb Neon Gas exports for chip manufacturing. Russia and China still has lots of cards to play to inflict real pain on the West and cronies. Russia is said to be stopping the Black Sea Grain Deal, as the bulk of those grains are reaching Europe rather than African countries that needed them most. Who can blame them, allowing grains to be shipped to their enemies.
The pros and cons I think have long been weighed out by the BRICS countries. They have been working on it not yesterday.
ReplyDeleteLetting the US$ hegemony remain means a scenario of forever being under the control of the USA and its sanctions, which is going to be used against each and every country some day. And bear in mind that if this BRICS de-dollarisation fails and the China/Russian alliance fails to protect BRICS countries, there will never be another chance for the Global South to extricate itself from the curse of the US$ hegemony. Is the world prepare for that?
Iraq and Libya were minnows in the de-dollarisation game, without Russian or Chinese support, and could easily be destroyed by the USA. Even then they needed fabricated and manufactured evidence to use the UN rubber stamp to carry out their vile and criminal plot. There are now so many countries in the UN not in unison with the USA after the Iraq War. Their conscience have gotten the better of their decisions going forward, except for the unconscienable Anglo Saxon White clique.
The war in Ukraine already shows how difficult it is for the USA and the West to have an upper hand against the Russians. It is not just the physical war. There is also the economic war going against Russia, the more than fourteen thousand sanctions working for the USA and the West, and yet they could not put Russia out of business. Putting China in BRICS together with the Russians is a different ball game altogether. There is also Iran, not a minnow to be sniffed at, to consider, smack in the Middle East oil hub.
India, tilting towards closer ties with the US, for sure will be the spoiler in BRICS. But the creation of BRIC currency doesn't require the consensus of all 5 members. Even if India doesn't has the team spirit to join or participate in the collaborative currency project, the rest will still carry out the new currency unit plan, just as India's withdrawal from the Regional Comprehensive Economic Partnership (RCEP) negotiations; it had no impact on the effectiveness and development of RCEP.
ReplyDeleteWestern diplomats once said that India considers itself clever but in reality behaves like an immature child, always nitpicking. Many have jokingly said that if India were to become a permanent member of the United Nations Security Council, it would exercise the veto power every day, making it impossible to reach any resolutions.
Ah neh . . .
Chip makers of USA, Taiwan, Japan and South Korea are in deep trouble with the curb in exports of Gallium and Germanium by China over 'national security issues'. The term 'national security issue' is now a very useful concept and very difficult or impossible to prove argument, coming back to haunt the USA.
ReplyDeleteThis is the reality being played out: It is always possible to find or create alternatives to produce more Gallium and Germanium, but setting up facilities to produce these two elements takes years and very heavy investments needed. Added to that is the uncertainty of returns, which investors are not likely to wait stretching over years, even a decade or more. How the industry will also change with new methods emerging with more R & D, is also a factor to consider, which could render massive investments turning into dust.
Realistically, let us assume that the USA and its allies succeeds in upping production to be self sufficient. The next question is - how are they going to deal with the Chinese supply side of the equation, with the massive production capacity of the Chinese ready to unsettle the market if it is again threatened. China can always flood the market with much more cheaper to produce Gallium and Germanium to sabotage those facilities in the West. Selling cheaper is not a crime, so is selling at exhorbitant prices.
Therefore dealing with the Gallium and Germanium problem is not as simple as it looks from the perspective of the USA and its allies. And it is a problem of their own making by forcing China to retaliate. They thought China would not retaliate, but it did. Just like Trump's trade war.
As many people have said, the USA and the West make decisions on the spur of the moment, never considering the consequences. Now they have seen their miscalculations in Ukraine, the Chips Act, the Chip4 alliance, the sanctions and seizure of Russian assets, the oil price cap and the damage being done to close allies. The irony is that they never learn from their mistakes.
Russia confirms BRICS will create a gold-backed currency:
ReplyDelete'Friday, according to state-run RT, the Russian government has confirmed that Brazil, Russia, India, China and South Africa, also known as BRICS nations, will introduce a new trading currency backed by gold. The official announcement is expected to be made during the BRICS summit in August in South Africa.'
Link to article:
https://www.kitco.com/news/2023-07-07/Russia-confirms-BRICS-will-create-a-gold-backed-currency.html
How Legendary Putin Made Russia Great Again
ReplyDelete1) He got rid of the traitorous fifth column within Russia. These parasites - handpicked by the US and globalists - were deliberately destroying Russia in the 1990s.
2) He crushed Chechnya’s jihadists who were armed/funded by the CIA. Winning that war was a huge morale boost for Russian military, which was decimated in the 1990s.
3) Putin healed and turbocharged the Russian economy in countless ways:
-- Grew GDP 10-fold in 10 years
-- Tamed inflation, which was like 100% when he took office
-- Made Russia the king of oil and gas again
-- Increased Forex Reserves from virtually 0 to $600+ billion
-- Russia was importing food in the late 1990s. Under Putin, Russia became #1 in wheat and surpassed the U.S. in exports!
-- Built massive infrastructure for the people
-- Putin reduced poverty, suicide (Singapore's suicide rate is currently the highest in 20 years), unemployment and numerous other social problems that plagued Russia in the 1990s
4) He made strategic alliances with China; envisioned a multipolar world as early as 2007; challenged the American Empire; saved Syria from US-sponsored Al Qaeda; and is now championing dedollarization and BRICS currency.
He rebuilt friendship with Europe. In 2012, every European leader has great relations with Putin.
5) Brought back Christianity and family values to Russia. Built/renovated 10,000 churches and monasteries
Of course, the US sabotaged Russia’s growth and prosperity, demonized Putin, and is playing the perfect role of “Empire of Chaos.”
If Russia survives this vicious attack by the psychopaths of U.S./NATO, it will emerge stronger and as a veritable great power of the 21st century.
And everyone in the Global South should be rooting for Russia. Foolishly, Singapore was the only nation in ASEAN and the Global South to impose sanctions on Russia.