US pressures Asian allies to join crusade against Chinese chipmakers US efforts to starve China's semiconductor and tech industry of chips has entered a new phase: pressuring its allies to join its cause. Speaking with Japanese Prime Minister Fumio Kishida Sunday, US ambassador Rahm Emanuel emphasized the importance of a unified front restricting semiconductor exports to China, Bloomberg …
>I still can't understand why China hasn't retaliated yet ...
I think they have already. We just know it as 'supply chain shortages' and 'disappointing sales'. I believe it was Napoleon that said "Never interrupt an adversary when they're making a mistake" so I would expect them to just sail on doing what they're doing while we jump up and down impotently on the sidelines. This time will give them the motive and opportunity to consolidate and rationalize any unnecessary dependencies or weaknesses in their supply chains.
You're right, it will end in tears. We won't notice because we'll be busy somewhere else fighting yet another war either directly or through a proxy). Aerospace is one segment of business that's reliably profitable, it can reliably create a market for its products at any time.
China has already retaliated, but there’s more to the story than this one El Reg article tells. China, or shall I say “Chinese registered companies that May or may not be loosely coupled extensions of the government” have a track record of stealing the IP of major companies in the chip supply chain. For example the Chinese company Jinhua managed to get details of Micron’s IP regarding DRAM design and manufacturing, which they subsequently applied for their own patents over. Micron sued Jinhau for IP theft and patent breach. Jinhau countersued in the province of Fujian (where they’re HQ’d), and the Fujian court promptly found in Jinhau’s favour and imposed a punishment of barring Micron from selling 26 products into GRC. There’s other examples. Using trade and security controls to stop Japanese, Dutch, and US chip manufacturing equipment is an attempt to stop China capitalising on their already conducted espionage. Advanced chip design and manufacturing are strategic military advantages whether for the US/NATO alliance or GRC, or any other. There’s a big game being played here that goes beyond P&L for any of the individual companies involved.
They do not need to retaliate by disrupting trade for example. Their best retaliation would be to use all available means to acquire "legally", steal, develop, etc. few key missing technologies. If they succeed this would be it. They're already manufacturing king. The US cutting off China's access will slow it down but I am not sure if it is possible to make that state permanent. They may actually accelerate China's into being self sufficient in Hi-Tech area. If this happens China would have the rest of the world to play with and use Russia as the energy, grains, metals and whatever else they're missing supplier. Maybe add Africa for some stuff.
I think the worst mistake the US did was to loose manufacturing to a large degree. It drives everything else. It has to be restored and be competitive.
The short answer is - they don't. They just want to promote as much Taiwan/China instability/mistrust as possible, get TSMC to open foundries in the US, and then I'm guessing the Taiwan foundry will end up getting a Stuxnet type worm mysteriously that destroys or greatly hinders manufacturing ability
This is Huawei all over again: the US cannot compete so they'll ask others to help falsify the capitalist model.
The US approach to free market forces is about the same as Elon Musk's to free speech - all OK as long as it's ours.
If the US would invest half the amount of money and energy in its school system and local investment as they do in lobbying and politics they would not have this problem in the first place. No, China is not all wonderful and liable to screw up badly (see the current Covid problems), but recent US activities seem to suggest there's a massive lack of confidence there in their ability to compete. Not a good sign.
Or the last administration that blocked imports of Canadian aluminium for national security while allowing Russia to buy American plants. Blocked Canadian competitors to the 737 while demanding Canada buy f35s
And banned a whole range if European products from wine to steel.
I wonder if the Eu would allow a federation of European steel makers to buy ASML and then just decide to not bother selling anything to US customers
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