Chips War - China hitting back

China is starting to pay the USA back in its own coin while the US$ hegemony is not gone yet. China is going after Micron for a start. I think China has carefully calibrated its move to strike back where it will hurt most. China's cyberspace regulator said it would conduct a cybersecurity review of products sold by Micron Technology to 'prevent hidden risk and safeguard national security'. Good move by China.
The USA is hysterica over such a move, claiming 'China lacks transparency in many conventions of law and policy and this is one'. The USA knows this is going to prove costly for both sides playing the same game of using 'national security issues' to support their moves. Now, what about the USA's unproven national security case against Huawei? What transparency and evidence has the USA provided other than just hype up hysteria to destroy competition. Rest assured, Micron will not be the last, as China is slowly moving away from relying wholly on USA chip makers and shedding reliance on them. Micron has a 10% market in its overall sales worldwide in China.

After China's move to discontinue the use of all window based computers in Government circles last year, and the country moving into 5G usage, the USA knows its spying game using windows platform and still relying on 4G is no longer workable, and China knows for a fact that the USA had, for decades, been playing the same game. China has therefore disabled the usual channels available for cyber espionage by they USA and by migrating into 5G, the USA has now no control in planting backdoors. However, China probably already have evidence that products made by USA companies and sold in China are taking over the task of espionage. This is a wise tactical move, and China must have found evidence of such new threats looming over its national security. After all, the claims of 'national security threat' is not that easy to prove, and it works both ways.

Since the USA is now accusing anything made in China as a spying platform - mobile phones, quayside giant cranes, substation transformers, solar panels, washing machines, bread toasters, toilet seat covers, weather balloons etc, it is high time China pays back the USA in its own coin.

Anything, rules and conventions made by man can be made by any man.

Anonymous

American hegemony in black and white

The US is fine with China’s economic success, as long as it’s on Washington’s terms
By Timur Fomenko, a political analyst

The US is so wrapped up on its protectionist, America First doctrine that it cannot be seen to be making concessions. And, looking at Yellen’s choice of words, we see the “catch” – China is only permitted to grow on the condition that it accepts “US economic leadership” – in other terms, the US’ political, economic, and military dominance....

...Today, the US wants to benefit from the Chinese market, but only if the terms are favourable for American companies and capital, and is therefore attempting to force capitulation. This is why so much of US policy concerning China is devoted to try and destroy or contain the bulk of China’s own high-end industries and companies.

For example, the US does not want China to develop its own commercial passenger jets, such as the C919; it wants Beijing to rely eternally on Boeing. It does not want China to develop its own microchip-making capabilities, as this will undermine the US control over the industry. You get the picture. The US had little issue with China dominating low-end cheap manufacturing that makes trivial and unimportant goods such as throwaway plastic hotel combs or nail clippers. That’s the kind of economic engagement Washington wants, where the balance of profits is in its favour, but the burden of consumer and labour exploitation is on the Chinese.

Finally, it might be worth noting that the US does not tolerate any economic competitor, even among allied states. Hence it has shown little remorse for the destruction and deindustrialization of the German economy, or when it crippled Japan with the 1985 Plaza Accord. The only acceptable China to the US is a weak China, that serves no purpose other than to be a cash cow from which all profits, incentive and talent are vacuumed home. China sees this as completely unacceptable, akin to a new ‘Century of Humiliation’ and this is why no ‘economic truce’ is possible if it is predicated on China’s surrender to American terms.  RT

Above are parts of an article by Fomenko in RT. The evil American Empire with a face like Yellen, is telling China and the rest of the world that it intends to be the ruler of the whole world economically and militarily and would put down any country that dares to challenge this American dominance. They had taken down Japan and Germany and now going to take down China and Russia. India and the rest of the emerging economies would face the same threat and viciousness of the evil Empire when their turns come.

The evil Americans are not about competition. The lies about freedom to choose, democracy and freedom to compete are only on American terms, that is, the Americans sit on top of the pile and everyone below can do as they like without upsetting the American's dominance. And they would coerce the rest of the world through lies, cheating, force and the might of the American war machine. They are now taking down their mask of civility, not pretending to be the good guys anymore. They are the international gangsters and the rest of the world must live under their mafia rules aka rules based order that only the silly would believe and sing in praise. And they want economic leadership by printing money and not producing goods of value for the world. They want tech leadership by suppressing Chinese techs but unable to compete in technology, no 5G, no hypersonic missiles, unable to even produce a better app than TikTok. And now their lies about having been to the moon are being exposed.

It is good that the rest of the world are marching behind China and Russia to stand up to the world's number one terrorist and gangster, the evil American Empire. The pressure and threats against their European allies are so overbearing that Europe is also rebelling and wanting out, to be free from the demonic evil American Empire.

Down with the Evil American Empire.

Satan USA is up to no good as usual

Nothing good ever comes out of the USA. Only destruction, killings, genocides, regime changes, sabotage and creating wars. Anything bad happening around the world and you know who is behind it. Now trying to be buddy up to African countries with promises of token help, which the Africans see through as another ploy just to counter China and Russia. It will not work and African leaders are now too street smart to be blindsided once again.

Today, Satan is creating more trouble on the Korean Peninsula. Satan is going to provide Seoul with nuclear submarines to deter the North. Look at the smug look on Yoon's stupid doggie face, thinking this is going to scare handsome Kim. Oh, not to forget, Biden is going to forge an 'iron clad' alliance with Seoul. 'Iron clad'? Now we are already moving into the 'Steel Clad' era.

But, wait a minute. It is nothing about the North Korean threat against the South, but about confronting China that is in the mind of Biden. North Korea is just the diversion, and Seoul just provides the opportunity. The USA has been trying to proliferate its nuclear agenda in Asia to encircle China. They started with Australia successfully, now moving to South Korea, but surprisingly not 'iron cladding' Japan as well, since Japan is also threatened by North Korea and is the most hardcore anti China doggie of the USA. All the more reason to believe that Japan already host USA nuclear weapons on the sly.

Let us see what Russia will do. Cuba needs nuclear weapons to deter threats from the USA. Haiti is also in need of protection after the USA threatens to invite itself into the country to 'stabilise' the chaos in Haiti recently. How holistic!

Venezuela, most importantly, had already tasted the USA's regime changing agenda, using Guaido as proxy, and realistically Maduro needs deterrents as well, most of all to protect its massive oil reserves that is the crown jewel that the USA is salivating to take over. Some Russian nuclear submarines for them would be ideal. What are you waiting for Maduro? This is the chance.

According to sources, China's coastline is lined with sensors to detect submarines trying to sneak close to its shore. Wonder what hit the USA submarine, the USS Connecticut, two years ago when it tried to break the cordon. Must have hit a bird, superman, a fish, or a mountain. Imagine a multi billion submarine, touted as state of the art, and still no clue what they hit. Or just a cover up for being detected and displaying its massive failures against Chinese detection methods? Oh yes, they were not sneaking around, just holidaying under the South China Sea.

Anonymous

Drosophila fruit flies smuggled into China to destroy crops

 

The video above showed China Port customs checked one luggage claimed to be only cothing. But when scan through and opened up the bag, there were more than 60 bottles containing the larvae of Drosophila, some 7,000 of it. If these bottle were successfully smuggled into China and the mature Drosophilas spread through the whole of china it will destroy all the fruits plantations. The matured one multiply very fast. How cruel the person is. The luggage is from the USA.

China has been under constant attacked by the West, very likely the Americans with all kinds of biological and chemical agents. This is the main reason why so many deadly diseases appeared in China, eg bird flu, swine fever, mad cow disease, Sars and the latest Covid19. The Americans have 336 military bioweapon labs all over the world. The number is only those that were reported. How many unreported. Military bioweapon labs are meant for military purposes, not civilian biolabs.

The evil Americans are very wicked. But they would not escape from their karmic retribution.

The Chip Alliance or Cheap Alliance

The Chip Alliance set up is now backfiring on the USA and the West. They are now at sixes and sevens with the Chinese market getting smaller as China ramped up production of matured chips. Samsung just reported a 96% drop in profit in lst quarter, amid shutting down capacity. They blamed it on COVID and the lockdowns resulting in demand for consumer products, but still will not admit the loss of business in the Chinese market as a contributing factor. Let them fool themselves silly.
China is clamping down its export of refined rare earth materials, essential for chip manufacturing and weapons manufacturing. The USA and the West are now forming another alliance to refine rare earth. Would rare earth refiners outside China, or what is left of them, be coaxed to set up factories in USA like the Chip Manufacturers, with promises of subsidies. Ask TSMC what happened to those subsidies and how TSMC had been taken to the cleaners trying to build a chip manufacturing plant in Arizona. A supposedly US$10 billion plant is now turning into a US$40 billion black hole, just to take advantage of the reported US$15 billion subsidy that is still not forthcoming. And that is not factoring in the problems trying to integrate USA workers with hardworking Taiwanese workers with different work ethics.

Actually, rare earth is not rare, and is available in large quantities in many countries and Australia in particular is one big source, and they are just looking at availability of the raw ores thinking the alliance will again solve the issue. But it is the expertise in refining the raw ores that is the big problem for them. Depending on China with such environmental unfriendly facilities to let China pick up the pollution demonisation is just like forcing China into the opium trade to destroy the country, and trying to save their own backyard, which is now backfiring on them as well. Decoupling from China is not as simple as 'trade wars are easy to win'.

Setting up such new refining facilities from scratch is going to take years and environment issues will definitely surface. Australia tried to shift some of its rare earth refining facilities to Malaysia and faced plenty of flak from the Malaysian public. The refining facilities pollute rivers and contaminate fertile land, and is a health hazard for those living close to those facilities.

Setting up refining facilities is estimated to take as long as 10 to 15 years. Of course it can be ramped up faster, but the most important question of all is where are they going to get the expertise to run the refining facilities for the ores from scratch. 85% of all global rare earth processing are now done in China, and China is said to produce the best rare earth elements in terms of purity. Just like the shortage of chip innovation talents in the USA after formation of the Chip Alliance, they had to resort to force to bring back talents from foreign chip makers to the USA, with loss of USA citizenship if they refuse. Would the USA do the same for rare earth?

Right now, even the USA has to send its rare earth ores to be refined in China. Think about that!

Anonymous

PS. What is the point of making more chips while cutting off your biggest buyer?