Why are the USA and the EU not talking about that inequality or lopsided overcapacity in wealth and taking action against that? Oops, it is only the top 10%, which includes all the ruling elites, that are against industrial overcapacity in China, while the bottom 50% obviously are in favor of that as they are benefiting from cheaper goods made in China. Overcapacity is a bane for those bottom feeders, but a boon for those at the top of the food chain. As ruling elites, talking about that brings trouble, so keep it under the rug. I think it also applies to everywhere else in the world. You can bet on that.
Anonymous
There is going to be an overcapacity in chip manufacturing in the USA with all the investments by Taiwanese, South Koreans and Japanese in Arizona. The USA domestic market will not be able to absorb the overcapacity and like agriculture, they need the Chinese market.
ReplyDeleteMeanwhile, the Chinese market is closing for them little by little. Even Nvidia is nervous about the future. China is the biggest consumer market for chips, accounting for more than 31% as of 2022. By 2028, China is expected to produce half of the world's semiconductor chips, cheaper than others of course. How does that matter to chipmakers in Arizona relating to market share in China? Probably needs help from McDonalds and others, LOL.
When USA's overcapacity in chip manufacturing faces problems selling outside the USA, would anyone dare to bet that China will not be blamed for the glut by not buying from the USA. Of course, overcapacity in chip manufacturing in USA is not going to be blamed. As always, the blame is always on someone else when the USA makes a mistake, especially Trump. Of course, any credit is all going to be taken by Trump, silly me.
Never mind, Trump will be subsidizing those chip makers in Arizona, just like what he did with farmers in his first term. Uh-oh, last I heard more than 250 farms have filed for bankruptcy over the last year, between April 2024 and March 2025. So, are subsidies working?
ReplyDeleteUSA taxpayers are really being pushed below water, having to pay for subsidies to farmers and chip makers while the rich are enjoying billion- dollar tax cuts. But never mind, those tariffs collected by the USA Government should cover the tax cuts. The question is who are paying those tariffs that is most interesting. Hope USA citizens, especially the bottom feeders, are still enjoying their American Dream, or should I say nightmare.
On the one hand Trump is making all kinds of threats against China and on the other he is 'demanding' that China must triple purchase of USA soya beans. Oh yes, China will just prostrate in front of Trump and shout 'Long live the emperor' for his big, beautiful, constructive, productive and wonderful 'edit'. China is not the EU, Japan or South Korea that bows to Trump.
The tariffs collected only covers a fraction of the tax cuts for the filthy rich in the USA.
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