This conflict is about more than one aspect of the economics. We know China is engaged in terrible human abuses. Time to stop using money as the reason for being complicit through inaction.
It will cost a lot more than trillions. Just like the US has lost its Textiles, Paper, Automobile, etc. industries, it seems hell-bent on throwing away its semiconductor industries as well.
Companies like Huawei were perfectly happy buying their semiconductors from the US.
Banning the sale of those semiconductors will hurt the US in several ways:
First, the loss of billions in semiconductor sales in the short-term. That won't be good for the likes of Intel, AMD, etc. There won't be ready capital to build new hi-tech fabs.
Second, Huawei and other other Chinese companies will set up their own semiconductor manufacturing which save them money by buying the home-grown product.
Thirdly, With those Chinese semiconductor manufacturers online, the sales of US semiconductors will be adversely affected by stiff competition from cheaper Chinese manufacturers. That would probably sound the death-knell for those US semiconductor companies, as has happened with the other industries mentioned above.
The US is hamstrung by preference for short-term thinking instead of long-term gain.
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[ 4.3 ms ] story [ 14.6 ms ] threadCompanies like Huawei were perfectly happy buying their semiconductors from the US.
Banning the sale of those semiconductors will hurt the US in several ways:
First, the loss of billions in semiconductor sales in the short-term. That won't be good for the likes of Intel, AMD, etc. There won't be ready capital to build new hi-tech fabs.
Second, Huawei and other other Chinese companies will set up their own semiconductor manufacturing which save them money by buying the home-grown product.
Thirdly, With those Chinese semiconductor manufacturers online, the sales of US semiconductors will be adversely affected by stiff competition from cheaper Chinese manufacturers. That would probably sound the death-knell for those US semiconductor companies, as has happened with the other industries mentioned above.
The US is hamstrung by preference for short-term thinking instead of long-term gain.