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.
China
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 semiconductor industry is becoming
robust enough 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?
Anonymous
5 comments:
Now Janet Yellen is accusing China of giving 'subsidies' to its industries to compete unfairly with the USA. The USA is in fact doing exactly the same thing for decades, if not more drastically and longer than what she is accusing China of doing.
Calling subsidies by another name, like the 'Inflation Reductions Act' is not going to make it more palatable to the ears of those who can see the hocus pocus adopted by the USA. The same as calling 'decoupling' as 'derisking' to fool the walking dead. Kamala Harris probably can do it better with her reputation as someone who became increasingly famous in popularizing the phrase 'Word Salad', on top of her 'Dracula' laughter.
China may be doing its part in high end chips to catch up with the USA, Japan and South Korea. But China's industrial base termed 'factory of the world' does not as yet need such high-end chips, except AI and expensive top-end mobile phones. Other than that, dependence on matured chips, those 14 to 28 nanometer chips for her production of EVs, washing machines, TVs, solar panels, cranes, wind turbines and other consumer products can more or less be sourced from its domestic manufacturers.
The USA and the West may be thinking they have the upper hand in sanctioning China from acquiring high-end chips, but on the flipside, they have to understand that such endeavors still require rare earth elements that China is still the dominant player in the world.
So, who is killing who? And who is winning the Chips War is still not certain.
Furiously trying to build a toilet when the urge to poo is so intense cannot be the right way to do things. Now the USA and the West are trying to set up refining facilities for rare earth, lithium and bauxite that are needed to support their EV, semiconductor and weapons manufacturing, which China is already moving far ahead and taking control of all the raw materials decades earlier.
In the end, those facilities will probably end up as white elephants if China, with its 'industrial overcapacity' choose to flood the market with identical products at much cheaper prices. That word 'overcapacity' hangs like the 'Sword of Damocles' over the heads of investors. That is why Janet Yellen is making such a big deal about China's 'industrial overcapacity'. Therefore, to build those refining facilities or not really takes time to decide.
How much work does it take to build up the logistics and supply chains to back up the plan to be self-sufficient in rare earth elements alone is mind boggling. There is also the time factor of maybe, optimistically speaking of 5 to 10 years to consider. Can the building of military equipment be put off in order to align with that kind of timeline? There is an ongoing war in Ukraine. There is a big war coming in the Middle East. Can Zelensky and Netanyahu wait for the weapons to be manufactured in the meantime? Iran and Russia are non-negotiable in terms of having a ceasefire of 5 years. That is nonsensical and preposterous.
Overlooking Iran and underestimating its rise is just like the USA and the West taking its eyes away from China to concentrate on terrorism, trade wars and instigating and creating real wars. All the time harping on Iran's nuclear ambitions, while ignoring the other areas that Iran is innovating fast, like drones and missiles.
Iran, or Persia is as much an old civilization like China and India, and certainly has the wisdom to rise as a world power. The USA knows this and had been trying for decades to suppress Iran from rising using sanctions. Indonesia is another country that will rise to be a global power, and Indonesia will figure prominently in the depression agenda of the USA going forward.
In fact, the moves in Papua New Guinea of military co-operation does not augur well for Indonesia. Claiming that this kind of military alliance is part and parcel of the defence structure to counter the influence of China is an insult to the intelligence of Widodo and Prabowo. They fail to see China making moves against any country around the region, not to say in PNG. Moving towards China is a very wise decision for Indonesia.
They wanted China to stop trading with Russia.
Who the Hell they think they are?
It's because China can supply Russia their Rare Earth for their Military Arsenals whereas the West now shortage of them.
Hello you idiots used up nearly finish your combined Arsenals.
Now Russia, Iran. North Korea and China were to simultaneously attacked you all, aha all be dead ducks.
So better wise up.
The USA now knows for a fact that decoupling or derisking from China is just a wet dream.
So many things are under the control of China, from raw materials in Africa to expertise in refining raw materials into usable products are all found in China. Which country has the potential to do all this on such a global scale and which country has the skilled manpower to undertake all the stages of refining?
And then there is the huge Chinese market itself that many businesses, factories and manufacturers are competing to sell to. The Chinese market is probably the largest market for almost any business in the world to want to be a part of. There is no running away from reality.
The USA, via Grandma Yellen, is now telling China it cannot trade with Russia. That is just arrogance out of this world. Both China and Russia are Sovereign States and it is in their own right to trade with one another and the USA has no authority, moral or otherwise, to change that position. The USA still thinks it is in a position to dictate policies that China must follow. Those days of dictating are over. Yellen is warning China of serious consequences if it continues to do so. The USA has still not yet learnt its lesson by sanctioning Russia.
The biggest mistake that the USA made over the years must be pushing Russia closer to China, which otherwise could now be a different geopolitical world had Russia been on the side of the USA. Thanks to Russia-gate, China and Russia are moving ever closer to each other, to the chagrin of the USA and the West.
The desperation of the USA's impotence in its dealings with China is clearly exposed. What sanctions can the USA imposed on China, China has the means to retaliate and banning companies from doing business in the USA is not going to work. China already has the Global South in its circle of countries it can trade with. Moreover, Africa alone has a population that is almost three times that of the USA and EU combined, a potential market that cannot be ignored.
In South America, Argentina is said to be backpaddling in its dollarisation move and clown Javier Milei is said to be softening his tough stand against China. The country is facing a dengue epidemic with shortage of insect repellents. Inflation is exploding as well. This Joker really is another Juvenile politician, a President from Hell, that is bringing the country to its knees with his move towards the USA. Even crawling to the USA is not going to help, with the USA having its fingers in so many conflicts that it is trying to cope.
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