Biden issues an executive order restricting US investments in Chinese technology

[The Stars Tremble]

I don't think you are understanding what's being discussed, or what this executive order entails. I've tried to simplify it.

"Moral authority" matters when selling to developing markets. They don't want to be on the wrong side of the US (who they may need for other goods {eg wheat or corn} or for military protection.) They may actually choose to pay double for genuine US tech, unless there is some doubt in international law.

You think moral authority doesn't matter at all. Well I think you've "simplified" international trade just a tad too much.

 

[The Stars Tremble]

China is an innovation desert.

Yeah... you don't know what you're talking about and instead are invested in repeating half-truths and utter nonsense.

And we're done.

 

[washunut]

It means we can't develop specific tech in order to boost U.S. specific manufacturing in China.

Basically, if you want to build a modern manufacturing facility that integrates AI, you'll have to use technology that comes from China... which is many steps below what is available in the U.S..

Thanks had not read about this order. So did not know the specifics.

 

[Kushinator]

"Moral authority"

This is a matter of national security.

 

[Kushinator]

And we're done.

We never even started.

 

[Tangmo]

A complete ban on US investment in China would certainly hurt them. Bans on high tech investment, really not so much. And it's a golden opportunity for Japanese, Korean and European investors too.

None of 'em are sending this technology to the CCP DictatorTyrants of Beijing.

It's called "de-risking." Trade will continue but not in these dual use technologies.

Xi's classically grandiose Chinese scheme to dominate the world in the most advanced technologies by 2025 is shot to shit already. It's the trend throughout the West and its allies and strategic partners throughout East Asia to deny CCP leverage in economic, financial, technological terms. It's true too of Taiwan that has been pulling its high tech operations off the mainland. After the 2011 violent anti Japan riots on the mainland Japan has all but pulled out of China.

Indeed, Xi and DeSantis should run on the same ticket.

 

[Tangmo]

US corporations make most of their money from the US market. China has developed to the point that it can now make goods only for the Chinese market and still grow industries that way.

When Xi the Maoist came to full power in 2013 his primary effort domestically was to increase household spending, aka consumer spending.

While consumer spending in the Western democracies was in the 60th percentile of GDP, household spending in the CCP economy was 43% of GDP.

Xi and his prime minister Li Kejiang put their shoulder to the wheel but by 2019 Chinese household spending was but 46%. It has yet to break 50%. Xi's GDP "growth" has gone from 9% to its current 3%. It's a straight line down across on the chart. With ever declining foreign markets Xi's GDP is headed toward zero and continuing. There's already deflation in the consumer market.

There are indeed a lot of delusionary posts going on at this thread about the CCP domestic markets. The Chinese are savers, not spenders. They save for the proverbial rainy time because they know from their long history their rulers are losers.

 

[Tangmo]

Does anyone know what this really mean? Does Apple have to pull out of China, how about Boeing. If people feel this is real, chip company stocks will be crushed as many of their sales are to China.

It's already begun....

Apple partner Foxconn invests another $500 million in India business​

Foxconn is investing another $500 million in its India business as it ramps up its plans to expand its chipmaking factories in the South Asian market that is becoming a key hardware hub for Apple. In a report Wednesday, Morgan Stanley analysts echoed many similar estimations, saying, Apple’s goal is to have India “contribute up to 10% of total iPhone production in 2-3 years.” Foxconn also recently signed a memorandum of understanding with the Indian state of Gujarat to set up a $20 billion semiconductor and display unit in the coastal state that is home of Prime Minister Narendra Modi. Foxconn said it will bring technical expertise to the venture, whereas Vedanta, known for its mining business, will finance the project, top officials said. The state of Gujarat will offer subsidies on capital expenditure and electricity to the project.

Apple partner Foxconn invests another $500 million in India business | TechCrunch

Foxconn will invest another $500 million in India as it ramps up its plans to expand its chipmaking factories in the South Asian market.

techcrunch.com

India is the excellent big market to get out of the CCP-PRC. The migration to isolate the CCP in technology and economics and finance has begun already.

For instance also, when Beijing in a snit banned the imports of Australian minerals, India started buying 'em up and is Australia's new minerals market. History shows clearly the Chinese with their high and mighty grandiosity are their own worst enemy.

 

[Tangmo]

China is sitting on something like $3+ trillion in foreign currency reserves. They don't need our money... they need our tech.

The CCP debt to GDP ratio finally busted through 300%.

And counting.

And yes, this is in their own domestic currency that anyway comes from Parker Bros. Which is why the CCP BoyZ need USD to support their play money. Without USD the CCP and their wholly owned and operated PRC are sunk.

 

[Tangmo]

China is an innovation desert.

Indeed.

CCP BoyZ rely on Western high end chips and technologies that are not available to 'em any more.

The West is united on this that it calls "de-risking" economic dependence and manipulation by the CCP-PRC.

Xi's typically Chinese grandiose schemes are bust already to include the Belt & Road To Nowhere.

 

[Tangmo]

Yeah... you don't know what you're talking about and instead are invested in repeating half-truths and utter nonsense.

Indeed, the poster is hammering out so much baloney it's impossible to keep up.

 

[Tangmo]

And we're done.

He should take that and run.

I would.

But then I'm not bothering with you am I.

After all very few can follow your nonsense anyway.

 

[Surrealistik]

Well OK, but the time for this was 20 years ago. China has its domestic market and most of the markets of the world. They don't really need US investment any more.

If this were even close to being true, the Chinese wouldn't be crying murder about it, nor would they be desperately trying to entice foreign investment back into the country which is already staring down deflation as its population begins to see material declines and economic growth falls off; a mere taste of the demographic and debt crises to come, with both of these being predicated on the CCP's disastrously myopic leadership and malinvestment. The simple fact is that China remains reliant on Western innovation, whether by hook or crook, and doesn't have the domestic capacity to offset its loss.

 

[ralfy]

 

[Tangmo]

Biden has frozen investors who know well already more of this is coming...

US private equity and venture capital investors have already hit the brakes on sensitive technologies in China as relations have worsened since the administration of Biden's predecessor, Donald Trump, over issues from tech to China's industrial policies to national security. The executive order and the prospects of a pause in private equity investments in China across the board come as Beijing seeks to attract capital to revive its slowing economy.

https://economictimes.indiatimes.co...ofinterest&utm_medium=text&utm_campaign=cppst


Biden says this is about national security as the US and West also "de-risk" from the CCP DictatorTyrants. Nobody's trying to wreck the CCP command economy that is failing all by itself as all command economies do historically. And it's historically fact and true that national security always trumps trade and that this is in a narrow and focused area of trade. That is, national security.

It's true anyway that he who controls Taiwan controls the global chip industry and thereby, the global economy. The US will never allow the CCP DictatorTyrants in Beijing to control Taiwan or its chip industry. Beijing is maxed out already given it needs components from the US and Europe to meet its sinister goals. It's only downhill for 'em from here.