8/02/2023

China's success is testament to its political system

 As I always say, the USA and the West hates strong leaders, because it would be difficult for them to destabilise the country to install a stooge. That is why throughout history, they could not stomach communist ruled countries and will find ways and means to bring them down.

The USA and the West hates China, Russia, North Korea, Iran for the one and only reason of being unable to bring them down without being able to interfere in elections, like what they did in Ukraine. And they keep on chipping away at this point. They professed not to deal with dictators, but could not do the same to the Saudis perpetual monarchy. Now the Saudis do not even think it necessary to deal with the USA. Mohammed bin Salman probably understood and took Kissinger's advice and is staying far away from being a friend of the USA. It is nothing but a fatal infactuation to remain as a friend of the USA.

The fact that Communism under China is able to progress exceedingly well, and bring so much benefits to the people, just as well or even better than a democractic system, is another reason for the USA and the West wanting to demonise communist countries at all cost, particularly China. China's ability to progress so fast under Communism is contrary to the adage that communism is inferior to democracy, and perennially touted as backward and a stifling system.

The reality, however, proved otherwise and the USA and the West are paranoid and have no answer to explain the oddity. Even communist Vietnam outperformed many democratic countries, eg India, touted to be the biggest democracy in the world, but having little to show for it.

And I may even suggest that North Korea could have given the South a run for its money if not for all the sanctions imposed by the rest of the world. And of course, isolated and friendless Communist Russia as described by the West, is doing economically better than the EU itself. Numbers don't lie, propagandas are predominantly lies.

Anonymous

5 comments:

Anonymous said...

China's First Homemade 28-Nanometer Lithography Machine at Year-end

China will launch its first 28-nanometer homegrown lithography machine at the year-end, representing a great leapfrog for the nation's chip industry after years of US-led suppression and containment.

According to the Securities Daily, Shanghai Micro Electronics Equipment Group (SMEE) has been committed to developing a 28-nm immersion lithography machine, and it's expected the first domestically produced SSA/800-10W lithography machine will be delivered to the market by the end of 2023.

Founded in 2002, SMEE is one of China's leading lithography machine makers and accounts for about 80 percent of the domestic market, industry sources said. Reuters described the company as China's only potential competitor to the Netherlands' world-leading lithography machine maker ASML.

SMEE's website noted that it has developed machines capable of manufacturing chips at the 90-nm node standard - a technology that is suitable for producing low-end chips.

He Rongming, vice chairman of SMEE, said that in 2002 when Chinese experts went abroad for inspections, some foreign engineers said: "Even if we gave you all the blueprints, you might not be able to produce a lithography machine," according to the Securities Daily report.

After returning to China, He led the team in five years of research and development, and the team achieved a major breakthrough in the crucial exposure process.

The 28-Nanometer achievement comes at a critical time when the US has persuaded its allies, including Japan and the Netherlands, to join in its effort to contain China's tech sector growth.

Anonymous said...

We never know how much the world lost in creativity and innovation due to sanctions against or the putting down of innovating companies like Toshiba, Alstom, Huawei and the like, because they were too competitive vis a vis USA companies. Until those USA companies reached the pinnacle of their succcess, like Apple and Microsoft, would the USA not target competing foreign companies in similar sectors of technology. But there will be many others that the USA will target later, like aircraft manufacturing, EV and AI.

Huawei had been dominating the communications market, even in the USA, and had to be put down, by hook or by crook. Had Ericson or Nokia been in Huawei's shoes, nothing would have happened. Huawei's mobile business had been competing too well with Apple in certain sectors and many countries and is a growing signal for USA's action to stifle its growth.

Stifling competition is a gain for the USA, but a giant loss for the world at large. After subjugation of Germany and Japan from rising to compete with the USA in many areas, China is today also in the USA's radar of subjugation. But China is too big and too strong a country to be dicated and trampled upon. China is not Iraq or Libya.

The biggest mistake made by the USA was pushing Russia to form an alliance with China. The Soviet Union and China were not on good terms formerly, which allowed the USA to capitalise and cripple the Soviets during the cold war. Divided the Soviets fell, while China was looked upon as still backward, poor and comprising cooks and laundrymen, nothing that the USA had to fear about. But today Russia and China will stand as two united powers and presenting a totally new prospect for the USA to think of subjugating either of them.

Now the USA is finding faults with Tesla and Twitter as well, both owned by Elon Musk. Look closely at all the petty issues raised against Twitter, and hyping up of issues relating to Tesla EV, all because Elon Musk is not towing the USA line, and is even investing and depending on the big market in China. Musk is perhaps the one among a handful of big USA conglomerate CEOs that can foresee his future tied to the Chinese market, unlike those short sighted chip manufacturers killing their future by following the USA's chip war against China.

DJI, the global Chinese drone maker is also now in the crosshairs of the USA. And what is even worse is that India, now beholden to the USA following Modi's visit to Washington, even killing the US$1 billion investment by BYD to set up a manufacturing plant in India. India is content to remain backward despite talking about wanting to overtake China as the 'factory of the world' only in words. That is good news for Joe Biden. Keeping India backward like the Africans before, and everything about India rising now becomes a mirage and is under the USA's control. I know the Indians will be deeply unhappy about my comments, because they, like the USA are grand followers of the magic word 'denial'.

Anonymous said...

Chinese carmaker BYD faces Indian tax investigation

Chinese automaker BYD faces an ongoing Indian investigation over allegations that it paid too little tax on imported parts for cars it assembles and sells in the country, two sources with direct knowledge of the matter said.

India's Directorate of Revenue Intelligence (DRI) has alleged that China's largest electric vehicle (EV) maker, whose expansion plans have been hit by fractious relations between New Delhi and Beijing, underpaid tax of 730 million rupees ($9 million).

Although BYD has deposited this sum after the DRI's preliminary findings, the source added, the investigation is ongoing and could lead to additional tax charges and penalties. The DRI is yet to issue a final notice to BYD, which can challenge the findings.

BYD is facing heightened scrutiny from New Delhi over a $1 billion proposal to build cars locally, amid tighter rules on foreign investment from bordering nations, including China. BYD told its Indian joint venture partner it had considered dropping the investment plans.

Smartphone maker Xiaomi Corp has been accused of illegal remittances to foreign entities in the name of royalties, allegations it has denied and challenged in court.

Anonymous said...

Modi Government is using the tax laws to hit foreign investors under the belt, particularly the Chinese. More than 2,700 foreign entities have left India, totally disillusioned.

It is no use challenging, because you are in their territory and doing business there. They have all the say, including changing the laws. Let this be a lesson to all Chinese investors. Stay as far away as possible from India. Bangladesh looks more promising, so does Vietnam. Both are rising stars in their own rights, with conducive environments for foreign investments. And there are the vast potential of Africa opening up. India had, over the decades garnered a notorious name for not honouring their words.

Ever wonder why foreign companies labelled India 'The graveyard of foreign investment'? The victims include Ford, Harley Davidson, Carrefour, Henkel, Daiichi Sankyo, with many others, and lately Wistron and Foxconn. Foxconn is said to be still intent on investing in India, but what is the amount realistically? US$194 million compared to their initial US$19.4 billion joint venture with Vedenta. Just a drop in the ocean and the Indians are jubilant and counterarguing that Foxconn loves to invest in India.

Never forget the saying that 'fools rush in where angels fear to tread'.

Anonymous said...

China’s Rare Earths Export Curbs Will Sink US’ Microchip Manufacturing

Chinese export controls on germanium and gallium have stepped into effect amid fears that this will mean more expensive microchips, solar panels, cars, and even weapons. More significantly, the restrictions threaten to sink the Biden administration’s ambitious domestic microchip manufacturing goals, says China-US trade expert Thomas Pauken II.

China’s rare earths restrictions officially stepped into force on Tuesday, with the measures, announced last month after Beijing said it needed to protect its “national security and interests,” expected to cause a sharp jump in the cost of an array of advanced manufactured goods, particularly electronics.

The export controls, which will require companies seeking to export the pair of rare earth metals to apply for licenses, come in retaliation to a long list of US hostile measures, including restrictions on the import of Chinese high-tech goods.
“This is just the beginning,” former Chinese Vice Commerce Minister Wei Jianguo said last month, warning that “China’s tool box has many more types of measures available” should Washington try to retaliate to the rare earths semi-ban.

“Obviously, these consequences are going to be devastating to US efforts to promote their manufacturing industry, to create these factories where they’re reshoring back home,” said Thomas Pauken II, a veteran consultant and commentator on Asia-Pacific affairs, referring to the $50+ billion push announced by the Biden administration last year to restore the US’ domestic electronics component manufacturing capabilities. “The thing is, you need these ingredients that are necessary for the chips and the semiconductors,” he said.

“So now I’m hearing that TSMC," the Taiwan-based semiconductor giant, “is now having a rethink about doing their fab or semiconductor foundry that they were thinking about opening in Arizona. Also, there's another story about Intel. They were going to open up this major chip manufacturing plant in Ohio, and now suddenly they're saying, 'Well, maybe we won't open up this factory in Ohio because we lost all our Chinese customers. And because of these export controls we don't have the ability to create all these chips,'” Pauken said.

Pauken believes the US and its allies may not have expected Beijing to go through with its rare earths export restriction threats, judging by the limited reporting on the matter, apart from specialized Washington-based think tanks warning about the “devastating impact” such export controls could have on the US, Europe, Japan, “and much of the world.”

“I think the real story is that the West maybe thought China was bluffing. Maybe they thought that China wasn’t being serious about these export controls. And now that they are starting to go into effect, they are realizing how destructive they can be. The fact of the matter is that the US has not done proper preparations to deal with the counter-sanctions or the counter-attacks led by China…They just thought that if they made all these announcements that they were going after China and all these other countries were following them, then somehow, China was going to wimp out, look scared, and then change their mind under the pressure. But in reality, what China has learned is that you cannot back down under peer pressure coming from Washington,” the observer said.

Pauken expects the export restrictions to put a “big hurt” on the global economy, but not so much on Beijing, which could even receive a boost to its domestic manufacturing industry as rare earths that once went to other countries will stay in China.

“So basically it's a case of if you're tough to China, China will fight back just as tough. If you're nice to China, then China will be nice. Right now, Europe decided they want to support the US and want to push back against China. So, of course, China is not only going after the US, but they're also hitting Europe,” the observer said.