Interesting move by the Biden Administration - who just placed new technology restrictions on China in regard to the semiconductor industry. No US firm involved with semiconductors are allowed to continue to do business with China and no US citizen is allowed to work in China on semiconductor related industries.
"For all practical purposes the Chinese semiconductor industry of everything over the Internet of Things level of quality is now dead, and that has a lot more implications than it sounds."
Don't think the threat of stripping a person's citizenship for defying the Executive Order is constitutional but the effects of the Order have been immediate. I can see this effecting the War in Ukraine as the Chinese have become Russia's sole chip supplier for all their higher tech weapons and the Russian arsenal was already depleted.
We'll have to wait to see how the rest of the repercussions shake out.
I find this **really** scary. Our beloved Brandon administration is already edging us toward a nuclear exchange with Russia, and now they declare economic war on China? For the love of God, why? Maybe they felt that China had it coming: unfair trade practices, theft of intellectual property, corporate espionage, etc. -- but couldn't we come up with a response short of wrecking the Chinese economy? Here's a comment in Peter Grant's Bayou Renaissance Man blog):
ReplyDelete"China cannot let this stand. Premier Xi dare not allow his country's high-tech industries to be stranded like this. He must and will retaliate, so hard that (he hopes) he can force the USA to back down. That may include measures such as invading Taiwan, to get his hands on that island nation's high-tech chip foundries and expertise. This may be the event that triggers such an invasion. It's that serious. (Yes, Taiwan is doubtless prepared to destroy its chip foundries if China invades; but if Xi is persuaded that his own special forces can carry out a lightning strike to take over the foundries before they can be destroyed . . . oh, boy.)"
Does anyone remember why Japan felt compelled to try to neutralize the US Navy by launching an attack on Pearl Harbor in 1941? Hint: it had to do with a trade embargo . . .
It's a decision by this administration , so it's a MASSIVELY stupid one.
DeleteYou should know better Chris.
The entire reason Japan bombed Pearl Harbor was an attempt to secure natural resources after FDR pulled this same shit and cut them off from Oil imports and froze their overseas assets. They gambled on knocking out the US Navy so they could seize territories that were happily selling them products less than 6 months earlier.
Japan lost that gamble, but they never bet if Franklin doesn't force the issue.
I thought of pre-war Japan as I read the article but back then it was oil, rubber and trade restrictions. Russia is China's gas station. This is a devastating but narrow restriction and we aren't cutting off food products.
DeleteMay be missing something but not really opposed to the move.