Grandstanding policies by the USA are going to backfire badly

All these grandstanding policies by the USA are going to backfire badly or are already backfiring against the USA.

Taking the Chip war as an example, the policy is really forcing China to dive headlong to prioritize chip development which it would not have done so and still content to rely on imported chips from USA, Japan and South Korea for a longer duration. Now the chip market in China is closing for these three countries like in motor vehicles.

And those chip factories set up by TSMC and others in Arizona are not even proven to be progressing unhindered with unforeseen issues cropping up and delaying the production schedule. By the time they are sorted out, especially to train skilled workers, China would already be self-sufficient and dominating. The China high speed train waits for nobody to catch up.

Decoupling from China is also proving to be a no go, which is why it is now called 'de-risking' with even the nonsense about over-capacity thrown in. Right now, China is exporting less to the USA and more to the Global South, a growing market that cannot be ignored. China is building all the new bridges to take advantage of the situation, which is in fact a blessing in disguise. The USA on the other hand is blowing up bridges and closing its doors. Who would investors bet on to invest in manufacturing? It is a no brainer choice.

Now, the USA and Israel have forced Iran's hand to make nuclear weapons. And China has also benefitted from the miscalculation of Trump and Netanyahu, selling more weapons to Iran to beef up its defense capabilities. This is another example of backfiring against the USA.


Anonymous