China is investing and had been investing in resources,
quietly, strategically and building up its dominance in many areas,
which is why China is now in such good stead to counter the USA and the
West in those areas like rare earth and graphite.
Meanwhile the
USA invested in wars, many wars and failed to realise the implications
of what the Chinese are doing. Now, finding it extremely difficult to
counter China in the area of rare earth reserves and processing, and yet
still does not realise its fraility and wanting to counter China with
its chips and tech wars.
The USA should realise that, as in the
quote 'blowing out someone else's candle will not make yours shine
brighter' applies to all. The USA and the West including Japan had, over
the decades, denied China access to and participation in many
technological research and development. Yet China had gone on and
succeeded and even overtaken the USA and the West in many fields.
The
space race, super computers, AI, EVs, 5G, all attested to the failure
of the West to contain China. And so it will be in evidence with the
chip wars, with failure being another catastrophe waiting to happen for
those in the Chips Alliance. Now trying to reinvent the wheel by
attempting to invest in such processing techology as rare earth
refining. Building toilets when there is an urgency to poo is not the
way to go.
Can the USA and Western military establishments and
industries like EVs and semiconductors wait for two to three years for
such essential elements to be produced by their own investments to
compensate for the supplies from China? The West will pay a heavy price
for attempted 'de-coupling' and now calling it 'de-risking' to sound
more acceptable, knowing that wholesale decoupling from China had been
foreseen as disastrous.
Anonymous
China is going after Foxconn with investigations being conducted against its operations in China. Now, slowly and surely, traitors working against China, that have earlier benefitted from their manufacturing in China for decades, are being unearthed and facing the music. Just like in Hong Kong, China waited for the worms to surface before putting them away for good. As the Chinese saying goes - 'Trying to get rid of grass and not removing the roots, allows them to grow again when the spring breeze blows'. Wisdom never goes out of fashion.
ReplyDeleteChina is now confident of providing the back up for its semicondutor industry and Foxconn's calculated incremental moves out of China is being replaced by China's own domestic players. That must have now reached a level that now allows China to take action to put Foxconn in a very uncomfortable position.
China's semiductor industry is becoming robust enought and will now not collapse even knowing that Foxconn may want to move out of China, thanks to the tech war instigated by the USA. The other good news is that the USA and its Chips allies are going to dump chips on to China in an attempt to kill off China's domestic chip manufacturers. China should let them do so, not sanctioning them, and buying up all the discounted chips for its own use, while subsidising its fledging chip players. See how long those chip manufacturers in the USA, Japan, South Korea and Taiwan are going to continue to suffer massive losses.
Who is going to kill who is still uncertain, with this move by Joe Biden and his allies. He could pass legislation to subsidise USA chip manufacturers, but what about Japanese, Korean and Taiwanese manufacturers? Think about it! Samsung and TSMC already found out, too late, about Joe Biden's chip subsidies given to those setting up Chip manufacturing in Arizona.
How many stones have the USA and its allies lifted to drop on Russia and China, but ended up hurting their own feet. Have they never learn their lessons or just stupidity having no cure?