Reply to post: Re: Unexpected consequence ?

China cooks covert chips, recruits global geeks to dodge US restrictions

martinusher Silver badge

Re: Unexpected consequence ?

I've said before in several posts that all sanctions did was upset the build/buy balance. Back in the Good Old Days of global trade it just wasn't worth Huawei's while to invest in technologies that it could source, it put its development budget elsewhere. Once sanctions kicked in the build/buy tradeoff changed and the result was that all these technologies -- which aren't exclusively "American" anyway -- became not just cost effective to bring into China, it became a national necessity.

So we hold them up for a couple of years. All it costs us is a major market and the prospect of a formidable competitor going forward.

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