Oct 30, 2024, 21:30
Visitors take pictures at the booth of Intel during the 2023 China International Fair for Trade in Services (CIFTIS) at China National Convention Center in Beijing, capital of China, Sept. 4, 2023. (Xinhua/Li Xin)
BEIJING, Oct. 29 (Xinhua) -- The latest move of the United States to curb high-tech investment in China will ultimately backfire, stunting its own growth while jeopardizing the fragile recovery of the global economy.
The U.S. government announced new regulations on Monday that restrict investments in China's semiconductor, AI and quantum technology sectors, effective from January next year.
This move coincided with an announcement on Monday by U.S. semiconductor giant Intel of a 300 million U.S. dollars expansion plan of its base in southwestern China, showing once again how Washington's policies contradict with the judgment, choices and interests of American businesses.
For U.S. tech giants like Intel, Apple, Tesla, Nvidia and Qualcomm, China stands as an indispensable market with significant potential to generate profits, which can, in turn, fuel their extensive research and development.
However, these restrictive regulations risk crippling U.S. tech companies in a high-growth, tech-driven market, placing them at a competitive disadvantage globally.
The global semiconductor market is currently in a hard-won recovery, driven in large part by China's strong performance.
According to the latest data from the U.S. Semiconductor Industry Association, China's semiconductor sales surged by 19.2 percent year on year in August, a contrast to Japan's modest 2 percent growth and Europe's 9 percent decline over the same period.
Policymakers in both the United States and China are eagerly looking for a tech revolution to fuel sustained economic growth. However, isolating from the world's second-largest economy will take a heavy toll on U.S. tech firms that are at the forefront of such a revolution.
Moreover, this approach starkly contradicts market economy principles and fair competition, going against U.S. President Joe Biden's assurances that his administration is not pushing for an agenda of "decoupling" from China.
The U.S. anxiety over losing its technological edge is understandable. However, dimming the lights of others will not enhance its own standing. Similarly, regarding China as a "strategic rival" and wielding trade and investment as a weapon to advance a politically charged, ideologically biased agenda will lead to a scenario with no winners.
The entrepreneurial spirit that once propelled the United States to greatness is also crucial to the country's future success. It would be advisable for the U.S. government to heed the voices of businesses rather than placing obstacles on their path.
As the pothead war criminal stated, Poodleville would have to "live within our means". It looks like the Great Satan is imposing austerity, now that the jew-confetti era is ending, but implementing policies to try to cause as much pain to BRICS members as possible.
As well as The Independent describing Brexit as a "monumental act of self-harm", the latest poodle budget is a continuation of austerity which only the IMF has praised. BS Bernanke's "printing press" is no more, so the Poodleville's biggest export market, the gangster-run, thieved prison-state of Amerika can no longer buy poodle krapware. Arguably, Labour is grasping the nettle, whereas the Tories kicked the Ponzi scheme can down the road.
Taxes will rise. After a spurt of growth caused by the £70bn in increased squandering, growth will be lower as businesses are punished. Unemployment will increase, whilst wages will be lower. Borrowing costs will be higher. France is implementing similar austerity.
A row has erupted over so-called National Insurance. But it's long been pointed out that there's no separate pot and it's basically income tax. Furthermore, pensions and the National Harm Service are all unfunded Ponzi schemes. State sector pension unfunded liabilities are £2.7Trn against poodle GDP of £2.6Trn. Neither is there any difference between Employer's NI and Employee's NI. Along with an increase in minimum wages, it will only make youths unemployable. So the lowest 10% income tax is on top of the 10% employee's NI and the employer's 15% giving an overall 35% tax rate for even the poorest tax payers. Yet the poodle state has poverty rates over 20% (whilst king Charlie, the World's most egregious waste of space and who's lame-assed excuse for not paying reparations is that no one can change the past, just gave himself a WHOPPING 53% pay increase via the Sovereign Grant that his cousin the pothead war criminal granted the late queen). What a complete c**t!!!!
Whilst and EU member, Poodleville promised to balance the books by fiscal 2015/6 but then delayed it by two years, then till 2025, then admitted it wouldn't meet that target and now have a five year target which is like carrot on a stick that keeps on moving forward. Germany met the target in 2014.
Labour also sprung the inheritance-tax trap that the Tories set in 2015. It was always perverse to allow pensions to be a loop-hole for inheritence tax. It's like being in prison, only to find an unlocked door to the outside world. Their offspring will now pay extortionate rates of tax, whilst king Charlie didn't pay a single penny in inheritence tax. He didn't even pay for his coronation or his mother's funeral. We the taxsuckers did.
Now these rabid nut-jobs are sanctioning India too.
The BRICS+ summit in Kazan shows that it's not Russia, but the Great Satan and its vassals who are being isolated. Already, China and India surpass the Great Satan in external trade and that's by value in nominal terms. In terms of productivity, China is by far the World's largest economy and the largest trading partner for most of the planet. The new payment and settlement mechanisms is because the Great Satan can't pay its debts, so the Great Satan WILL default and the "worthless paper" USD (and "nitroglycerine" Poodle) will be devalued one way or another.
Meanwhile, the war crimes atrocities being committed and even openly bragged about by the illegitimate state of New Izrael continue to mount. Is this supposed to be a distraction or a provocation for all-out nuclear war. Iran could turn the pariah state into rubble just with conventional weapons.
Similarly, we read: "EU Set to Send Envoys to China to Explore EV Tariff Alternative".
So this is the usual crude, gangster thuggery negotiating tactics of "the West". We saw this with war criminal, Auntie May, when she asked Angela Merkel to make her an offer, to which Merkel replied that as they were leaving the EU she didn't have to make an offer. When Poodleville was selling off the remnants of its krapmobile industry, they made SAIC's negotiators pay for the drinks and sold the patents to both SAIC and Nanjing Auto before claiming it was an administrative error; puerile! Similarly, when Greece was negotiating a bailout by the EC, EU and IMF, it faxed details to Merkel in the early hours of the morning before the negotiations. Only desperate and pathetic scumbags resort to such tactics.
The history of "the West" is the history of gangsterism and competing gangs. War criminal, The Donald, also fancies himself as a competent negotiator, but he's not. As his niece says, he's adopted cheating as a way of life. The Phase 1 trade deal would have been in violation of WTO rules if China hadn't insisted on it being based on market principles and the illegal tariff war was ruled illegal by the WTO too, but the Great Satan appealed it, having already blocked the appointment of WTO judges so that it couldn't be settled.
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