How much greater has Trump made the USA during his
Presidency from 2016 to 2020? Did the trade war result in USA's
re-industrialization and the ability to decouple completely from China?
In fact, the USA had imported more from China after Trump's trade war
effort and was greater than ever before. Was the USA able to produce
most of the items itself or source uncompetitively from elsewhere like
the EU? The only stuff they are able to produce are toilet papers to
export its inflation overseas.
When decoupling becomes
unworkable, they invented 'de-risking'. How to de-risk when China is
still in control of essential raw materials needed for USA's military,
plane makers, semiconductor manufacturing, pharmaceutical industry and
consumer products?
China had just issued new control over
Antimony, a flame retardant, needed for the USA military, citing 'dual
use' security issues, the new narrative invented by the USA which China
is following suit, tit for tat. China is not playing all its cards at
once and China has all the cards hidden close to its chest that it can
use to retaliate. The control of Gallium and Geranium exports by China
stunted the semiconductor manufacturing building frenzy in Arizona and
is killing the Chips Alliance. Wonder how the extraction by the USA and
the West to strip such rare metals from discarded laptops and other
electronic devices is progressing and how competitive will that be to
counter China.
Many plans to open up rare earth mines elsewhere
have failed. The USA thought that extracting rare earths from Mongolia
in a joint venture will counter China's control of Gallium and Geranium.
But China killed it straight away by disallowing the use of its Tianjin
Port for use by Mongolia to ship the ores to Japan for refining.
Setting up refining facilities in Mongolia is costly and takes years and
expertise that Mongolia lacks. Moreover, China can still kill such
competing ventures by cutting prices that will bankrupt the investors.
Are they willing to undertake such risks?
What was the fear
actually over China's overcapacity citing the fate of others around the
world? China's control over refining capacities in every sector will put
investors trying to set up competitive logistics in grave doubt over
investment feasibility. That is what the USA is trying to put a stop to.
The USA cares little about the fate of other countries trying to
compete with China. Most countries are not competing with China as China
is already providing them with products so cheaply that they do not
find it sensible to produce themselves. The economies of scale and
comparative advantage of production does not accrue to small countries.
Why should they be bothered with China's overcapacity?
It is the
same imaginary fear mongering over threats to small countries so that
they need the USA to place military bases for such countries'
protection. The Africans no longer buy into the snake oil.
Anonymous
3 comments:
The USA really lost the edge in high tech and is very desperate. It is using the modus operandi where if it cannot compete with, it has to make the competition disappear. Not making any effort to take on the challenge of making better stuff and taking the easy way out is self-defeating.
After attempting to ban Tik Tok, the USA is now targeting Telegram, founded by a Russian and competing very successfully with USA platforms. So successful that the USA now probably wants it under USA control or targeting it.
Decoupling is going on fast and furious, no two ways about hiding it. The USA is about to ban DJI drones, which many essential USA entities depended upon for its superior performance and cheaper price. This comes on the heels of China's ban on unregulated civilian drones that can be converted to military use, or dual use. Is the ban just putting the cart before the horse to put the USA in a position of strength and look more independent than in reality? Many entities in the USA are against the ban, because they are unable to find comparable drones made elsewhere, even in the USA. According to Kevin Walmsley on 'Inside China Business', for search and rescue jobs on mountains for example, USA made drones failed even to reach the mountain top and failed to do the job.
On the other hand, the USA Government is giving waivers and exemptions to its own military, police surveillance activities from the ban, and still allow them the use of Chinese drones. The same exemption given to the USA military using Chinese semiconductors in their weapons system, while prohibiting businesses and citizens from using such semiconductors in their products. The same immunity given to their drug tainted athletes while accusing others of violating the drug rules.
The USA is all about maximizing profits for the top 1%. The rest of the 90% or thereabouts is not the Government's priority. As a Plutocracy, it is a government of the 1%, by the 1% and for the 1%. Who else can run for President without such deep pockets but the 1% elites. They have no idea how the bottom 90% are going to cope with expensive EVs and other consumer products with tariffs added on. Even USA made EVs will probably cost double or triple the price of Chinese EVs.
What are tariffs being erected for? Not to help the 90%, as they have to pay more with the tariffs added on. China is not going to lose anything, save selling fewer EVs in the USA market. China can sell to the rest of the developing world, tariff free. Tariffs are to protect the turf of the super-rich in the USA, those who owns the conglomerates on Wall Street, the big businesses having to compete with China. Their campaign donations have to be repaid with policies tailoring to their lobbying in Congress. The unseen corruption going on within the Government.
Where got corruption in the USA? Just denying, brushing aside the accusations, kicking the can further down the road and it all vanished into thin air. Were there genocides in North America by the Anglo-Saxon Whites? Nah, nothing of that ever happens by not talking about it.
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