And the same goes for the USA's semiconductor alliance, trying to corner the global market for chips. Again, without the Chinese market, those are going to be lame horses running a race against China's own self-developed semiconductor sector. China has the market, the manufacturing hub to absorb all the outputs and the capacity to export much cheaper chips than what those who invested in Arizona are able to offer, with all the expensive factors at play.
High end chips are basically for military adoption and high-end mobile phones and computers. Consumer electronics and EVs all still depend on matured chips which China is able to make itself in abundance.
China will not collapse because of the lack of high-end chips. Making them in the case of China is just a matter of time. And the time gap is narrowing faster than anticipated.
Anonymous
Minus China's big market and now minus India, and minus African countries, what chances are there for USA manufacturers and farmers to compete successfully elsewhere? 4.2 billion of world population live in China, India and countries in Africa. That is half the global population without taking in countries like Indonesia, Pakistan, Bangladesh and Brazil, also with big population totaling another billion but also big agricultural countries themselves. These are BRICS or potential BRICS countries.
ReplyDeleteFarming growth and expansion in USA is moving in the opposite direction. Trump is even forcing other countries to buy USA farm products like soya, corn and beef, a desperate move, more like using hands around their necks to force them to comply. That is how desperate he is and under tremendous pressure from farmers. Most of Trump's supporters and MAGA base are farmers, and the consequence of his trade war is now affecting their livelihood very badly.