Here’s an exceedingly stupid take on Communist China using subsidies to eviscerate the US economy.
“(We should be) making a beeline to the nearest Hallmark store to buy thank you cards to send to the Chinese government for the subsidies it provides to Chinese exporters….”
This was published just this past September. After almost two years of the global lockdown – and more than six months of the all-encompassing US supply chain shortage – caused by just one China (and US)-subsidized Chinese export – the Coronavirus.
To witness all the damage our lack of domestic production has done – and the China Virus has exposed and exacerbated – and then say we should be thanking China for doing it all to us? Is a whole new level of idiocy.
But of course, Communist China money has purchased a LOT of US idiocy over the last several decades.
Because President Donald Trump wasn’t owned by China. But just about everyone else in DC is – and has been.
“Companies are teaming up with untraditional allies out of fear that the fall legislative session will lead to restrictive laws.”
Fear not, US sell-outs: The rumors of this “uphill battle” are highly exaggerated.
Why are all of these US officials acting like Chinese officials? Money. Coin. Dollar bills, y’all.
China’s money – and its influence – is everywhere.
And the companies China didn’t suck out of America? They’re buying them right here in the US. Without any opposition from the officials we elect – but they own.
Ah yes: The ever-increasingly dominant Digital Economy.
As we’ve seen, US Big Tech companies refuse to work with our government – but are more than happy to work with China’s Communist government. But it goes way beyond just these “edge” sell-outs.
The core businesses that make the Digital Economy possible? Are one way or another almost entirely dominated by China.
But even before China can dominate all of these portions of the Digital Economy? They must dominate semiconductor production. Semiconductor “chips” are the digital brains behind everything technological. So of course China dominates chip production too.
“In 1990, the U.S. and Europe produced more than three-quarters of the world’s semiconductors. Now, they produce less than a quarter. Japan, South Korea, Taiwan and China have risen to squeeze out the U.S. and Europe. And China is on pace to become the world’s largest chip producer by 2030.”
Oh: And China is buying out its Asian competitors.
“Chinese businesses bought almost $32 billion of equipment used to produce computer chips from Japan, South Korea, Taiwan and elsewhere, a 20% jump from 2019, a Bloomberg analysis of official trade data shows.
“And with companies like Huawei Technologies Co. stockpiling supplies ahead of U.S. sanctions, imports of computer chips climbed to almost $380 billion — making up about 18% of all of China’s imports for the year.”
China dominates semiconductors – the same way they dominate everything else.
And what are US companies doing about all of this?
“Silicon Valley venture-capital firms and chip-industry giants are ramping up deals in China’s semiconductor industry, alarming U.S. officials.”
The thing is, there remains a political advantage to domestic chip production. It looks good to look like you’re actually for the country you purportedly represent. And it means lots of really good jobs – anywhere chip manufacture occurs.
So with Democrats staring down the barrel of what appears to be a very unpleasant 2022 election, perhaps the following will actually come to fruition.
“Between shuttered auto plants, skyrocketing component pricing, and ever-growing lead times, the ongoing semiconductor shortage is hard to miss. And while the Biden Administration’s massive infrastructure bill has garnered the lion’s share of media attention, Congress hasn’t forgotten about the chip shortage.
“Introduced early this summer, the $52 billion CHIPs for America Act aims to bolster U.S. semiconductor supply chains and reduce reliance on Asia-Pacific foundry operators like Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung Electronics. And unlike the hulking infrastructure bill, the CHIPs for America Act has broad bipartisan support in the senate.”
Congress has wasted many months myopically fixated on this monstrosity. Which has now created a year-end legislative log jam. Which has led to this….
“Despite bipartisan support in the Senate, a plea by the Commerce Secretary and growing desperation from industry officials, Congress still can’t get a key bill that funds the U.S. chip business over the finish line.”
The CHIPS bill should be treated as “must-pass” legislation.
Because it is must-pass legislation.
[FIRST PUBLISHED AT: Substack].
PHOTO: Chinese Yuan. PHOTO BY: Mussi Katz, CC0 1.0 Universal (CC0 1.0) Public Domain Dedication.