It must also be said that China is already helping the USA to reduce its trade deficit by selling less rare earths to the USA, am I right. Why does the USA want to import more rare earths from China that will make the deficit worse, lol?
On the other hand, in order to sell more to China, why is the USA putting all the sanctions and hurdles to prevent sales of chips to China and only the outdated versions were offered to China. Trump thinks the Chinese are as dumb as he is trying to keep the Chinese dependent on USA tech.
The good thing about those sanctions is that they have helped in fast tracking the Chinese into striving to be self-dependent much faster and pouring in resources to enable China to stay away from USA tech. China would still be dependent on USA tech if all those tech sanctions had not been put in place by the USA. As they say, necessity is the mother of invention, and the Chinese are just keeping their heads down and powering ahead.
Now, the Chinese are rising to become a big competitor in the field of memory chips, which even Samsung, the world's biggest memory chip maker, is worried.
The Chinses are now on their way to making high-end chips using new architecture that has the USA, ASML and TSMC worried as well. That they have found a way around, without depending on hardware constraints controlled by the USA, is a game changer. The soothsayers in the West can continue to throw doubts in the new architecture created by the Chinese, but China will have the last laugh when the shit hits their fan.
Anonymous
1 comment:
The USA initially wanted to decouple from China, thinking it will bring China down to its knees, with all the rhetorics created to rally the doggies. Then they found out the hard way that the sword cuts both ways. Just to mention one or two items make a fool out of the whole decoupling idea - China's rare earth dominance and its hold over the USA agricultural sector. The USA found out that its testicles got stuck in seaweeds and find it impossible to untangle itself. So, they literally stopped talking about decoupling and adopted the derisking mantra. The USA had mastered the use of 'word salads' extremely well. But China is not easily fooled.
But trying to walk back on the decoupling idea is already too late. China is fully aware that the USA has no cards to play by decoupling from China. In fact, all the rhetorics regarding trade wars and tariffs are giving China hints that it must be self-dependent in all sectors. And the Chinese are sparing no effort and resources to help the USA to decouple from China today.
As I always say, China is chipping away relentlessly at the last bastion of USA power - its lead in high-end chips. The USA is stirring up a hornet's nest and will get bitten soon. Success for China may be slow, but the writing is on the wall. China is deadly serious about turning the tables on the USA in high- end chips. China is a patient learner, a patient planner and a patient strategist. As they say, slow and steady wins the race. The USA is overly arrogant regarding its control over the chip industry. It may soon realize that its arrogance is going to cost it dearly. The USA never really expected China to rise so rapidly over the last four decades. Never under-estimate China's revolve when it is pushed into a corner.
Post a Comment