I mean that does make sense. The trade deficit is on our side. We are importing more than we are exporting. Cutting the exports will just further exacerbate that deficit. With that being said, it does make sense not to export some high tech products to China out of security fears. But they do have a point. China is self sufficient enough that they don’t need to import much from us.
What security fears? The West has completely obliterated medium-term leverage in high tech exports. We’ve single-handedly done something that multiple levels of Chinese government have failed to: force Chinese companies to use domestic vendors despite inferior performance and higher cost. We’ve single-handedly pushed Made in China 2025 into a success story, driven millions of dollars into research investment, and contributed billions in dollars in sales into Chinese companies that people wouldn’t even consider as vendors before.
Huawei was desperately trying to sell their Ascend AI accelerators before and to no avail. Today? They’re swamped with orders. SMIC was barely usable except for research purposes and bottom-of-the-barrel development (and even research would prefer to use TSMC). Today? They’re shipping millions of units at 7nm.
Globalization theory works to protect established powers so long as established powers continue to innovate, since newcomers have little incentive to invest in fields that established powers are both 1. Much more advanced in and 2. Constantly advancing in at a pace that’s difficult to catch up to.
Well, I wasn’t saying that I supported our decisions. I was just saying that the knee jerk reaction of applying sanctions made sense for the politicians obsessed with national security. I’m personally happy that the Chinese are advancing their R&D efforts. I personally think everyone should do that.
I mean that does make sense. The trade deficit is on our side. We are importing more than we are exporting. Cutting the exports will just further exacerbate that deficit. With that being said, it does make sense not to export some high tech products to China out of security fears. But they do have a point. China is self sufficient enough that they don’t need to import much from us.
What security fears? The West has completely obliterated medium-term leverage in high tech exports. We’ve single-handedly done something that multiple levels of Chinese government have failed to: force Chinese companies to use domestic vendors despite inferior performance and higher cost. We’ve single-handedly pushed Made in China 2025 into a success story, driven millions of dollars into research investment, and contributed billions in dollars in sales into Chinese companies that people wouldn’t even consider as vendors before.
Huawei was desperately trying to sell their Ascend AI accelerators before and to no avail. Today? They’re swamped with orders. SMIC was barely usable except for research purposes and bottom-of-the-barrel development (and even research would prefer to use TSMC). Today? They’re shipping millions of units at 7nm.
Globalization theory works to protect established powers so long as established powers continue to innovate, since newcomers have little incentive to invest in fields that established powers are both 1. Much more advanced in and 2. Constantly advancing in at a pace that’s difficult to catch up to.
Do you have sources for further reading, especially relating to your middle paragraph?
Well, I wasn’t saying that I supported our decisions. I was just saying that the knee jerk reaction of applying sanctions made sense for the politicians obsessed with national security. I’m personally happy that the Chinese are advancing their R&D efforts. I personally think everyone should do that.