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Capitalism: Begun the Trade War has
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  • The Trump administration mounted an extensive campaign to block the sale of Dutch chip manufacturing technology to China, with Secretary of State Mike Pompeo lobbying the Netherlands government and White House officials sharing a classified intelligence report with the country’s Prime Minister.

    The pressure appears to have worked. Shortly after the White House visit, the Dutch government decided not to renew ASML’s export license, and the $150 million machine has not been shipped.

    and

    Trade relations between China and the Netherlands would be damaged if Dutch semiconductor equipment supplier ASML (ASML.AS) is not allowed to ship its newest machines to China, Beijing’s ambassador to the Netherlands was quoted.

    Clearly it is full peace.

    Despite that block of ASML (they are artificially made total monopoly in advanced chips production machines!) supplies will make tens of billions damages even in 2020 alone.

  • The US threatened to impose 25% tariffs on cars to push Europeans to initiate proceedings against Iran for violating the nuclear deal, the German defense minister has confirmed.

    Clearly trade war is ending, definitely.

  • Pentagon Blocks Clampdown on Huawei Sales

    WASHINGTON—The Commerce Department’s efforts to tighten the noose on Huawei Technologies Co. is facing a formidable obstacle: the Pentagon.

    Commerce officials have withdrawn proposed regulations making it harder for U.S. companies to sell to Huawei from their overseas facilities following objections from the Defense Department as well as the Treasury Department, people familiar with the matter said.

    The Pentagon is concerned that if U.S. companies can’t continue to ship to Huawei, they will lose a key source of revenue—depriving them of money for research and development needed to maintain a technological edge, the people said. The semiconductor industry has pressed that argument in talks with government officials.

    Defense Secretary Mark Esper was asked about The Wall Street Journal’s report in an appearance Friday at the Center for Strategic and International Studies in Washington.

    “We have to be conscious of sustaining those [technology] companies’ supply chains and those innovators,” Mr. Esper said. “That’s the balance we have to strike.”

    The Treasury Department wanted to make sure that Secretary Steven Mnuchin had a chance to weigh in, said one of the people. Cabinet officials are expected to meet on Huawei and other China issues in the coming weeks.

    splits within the Trump administration on how to deal with Huawei show the difficulty of confronting China on technology without harming U.S. companies.

    https://www.wsj.com/articles/pentagon-blocks-clampdown-on-huawei-sales-11579870801

  • Visual representation of why conflict can't be solved by agreements

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    https://www.lowyinstitute.org/the-interpreter/chart-week-global-trade-through-us-china-lens

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  • “While we still have to be enormously vigilant about terror ... the Chinese Communist Party presents the central threat of our times,” Pompeo said on Thursday.

    Finally.

  • Trump Administration Considers Halting GE Venture's Engine Deliveries to China

    The Trump administration is considering a proposal to halt deliveries of jet engines co-produced by General Electric Co. for a new airliner being developed in China, a potential escalation of protective trade measures that could have steep repercussions for the major American manufacturer.

    The administration may decline to issue a license allowing CFM International, a joint venture of GE and France's Safran SA, to export more of its LEAP 1C jet engines to China, people familiar with the discussions said. The engines are being used in the development of that country's Comac C919 jetliner, the latest in a planned family of new jets that is years behind schedule.

    People familiar with the deliberations said the primary purpose of the push to halt the engine shipments was to cripple the development of the Comac airliner, which China hopes to build into a global competitor of the dominant narrow-body airliner models made by Boeing Co. and Airbus SE. The LEAP 1C engine is the sole engine designed for use with the new Comac C919, so interrupting the supply of engines could produce an indefinite delay in the production of the C919.
  • "They don’t want any fab in the world to produce anything for Huawei - that’s the goal," one person said, speaking of the chip fabrication plants that likely would be affected by the new trade limits.

    The Trump administration also is considering cutting off China from jet-engine technology, another area where Beijing has struggled to shed reliance on U.S. and European manufacturers.

    U.S. chip-manufacturing tool makers, such as Applied Materials Inc. and Lam Research Corp., are among the biggest in the industry. The equipment they make is some of the most expensive machinery in the world. Setting up a modern chip factory typically costs many billions of dollars, and new restrictions on U.S. equipment could drive customers toward alternatives.

    "It would be a huge disincentive for any fab to use U.S. equipment because there would be a limitation on that versus Japanese or Chinese equipment,"

    Time to release the virus groups in US, I guess.

  • Western politicians are just comics and prostitutes serving big business.

  • Suppliers of key components for 5G base stations, such as PCB and optical fibers, are mostly based in Wuhan and other regions in Hubei; given that Wuhan is the epicenter of COVID-19, the outbreak is expected to negatively affect the 5G supply chain somewhat.

    It is juts such random coincidence that virus came just as US fight Chinese 5G using utter lies, bribery and even threating by force.

  • Nancy Pelosi: I’m so mad I didn’t impeach that Sonofabitch Donald Trump I can’t even talk straight! I’m doing this in an orange pant suit so Trump doesn’t put me in an orange jumpsuit, then chop my head off! It’s a Reign of Terror ...er or Drain the Swamp now in D.C. and he’s coming after everyone that went after him! That’s freedom and democracy! The Politics of personal destruction which I love! I’ve been hating China for 30 years now, whatever it takes to kill them, we will do. Even if it cuts off the main market for all our businesses and kills us!! Sometimes you have to chop off the head to save the foot or something….

  • @jleo

    It sounds funny, but she just represents interests of real serious business, same as Trump.

    Can even read interviews of Sanders, he is no different.

  • Trade War/ Bio War

    There's a lot more to this US battle with Huawei than cell phones. It has to do with warfare, Charles Lieber...and also Wuhan. Wuhan? Yes, Wuhan. But not in the way some Youtubers may think...

    image

    OK, people might wonder why I say the US military industrial complex and the neocons are freaking out about 5G and cell phones. It's more than just cell phones. The technology that China is working on will, in the view of the US DoD, change the nature of warfare forever. It's a big flipping deal. According to a White House Defense industry report, "Another concern are China’s advances in “foundational dual-use industries such as semiconductors, chip materials, robotics, aviation and satellites,” the report says. As technical innovation moves abroad, “changing rules around intellectual property development will impede U.S. access to the latest manufacturing technologies.” At risk is America’s loss of leadership in industries of the future such as artificial intelligence, quantum computing and robotics, the report notes. “Over the remainder of this century, these emerging industries will help redefine the BATTLEFIELD.”

    Charles Lieber, chair of Harvard's department of chemistry and member of the China's Thousand Talents Program. who was doing research with the Wuhan University of Technology didn't get unjustly arrested for nothing. They say he was covering up ties to China. How ridiculous! His name was probably listed on the Thousand Talents website. FBI doesn't have the internet, or what? For working with the Thousand Talents Program and developing nano-batteries and nano-tech. with the University of Technology in Wuhan (NOT the University of Virology as some have been saying on Youtube), which is the pilot city for the "Made in China 2025" The same initiative that the US Sec of Defense freaked out about to the Armed Services Committee. Oh that's funny.. Wuhan, did you say? I heard about something going on there recently in the news. Yes Wuhan.

    In 2016, the Chinese designated Wuhan as the model city for the roll out of the digital Silk Road and AI and 5G and the Made in China2025 Initiative. China’s Ministry of Industry and Information Technology to give Wuhan all priority for all resources, projects and programs. This is a big threat to the US military-industrial complex. So Wuhan keeps coming up, doesn't it?

    This is a technological arms race and the US is losing. So, they are resorting to a lot of dirty tricks. A lot of them. I'm not making connections. I'm saying the US was not happy about Wuhan.

    http://www.wh-china.com/whxw/201612/t2931068.htm

    http://www.xinhuanet.com/english/2018-01/21/c_136913339.htm

    https://www.sciencemag.org/news/2020/02/why-did-chinese-university-hire-charles-lieber-do-battery-research

  • ( U.S ) Companies ‘will take their toys elsewhere’

    Humiliated by the United Kingdom’s refusal to exclude Huawei from its 5G broadband network, the Trump Administration has doubled down on its attempts to stop China, with poor prospects for success.

    Major potential blowback

    The blowback against American prestige and the risk to key American companies is enormous. If the United States makes good on the rumored threat to suspend jet engine shipments to China, effectively suspending China’s program to develop a home-built civilian passenger jet designed around the GE/Safran engine, the US-China trade war will take on an entirely different character. France’s Safran is a national security asset and the sandbagging of the French firm will push Paris towards Beijing. The prospective damage to leading US firms, including Boeing – which sells a quarter of its planes to China – as well as the top US chip designers may be devastating.

    Some US companies won’t go out of business, but they will go out of the United States. On February 16 the New York Times reported that the “RISC-V Foundation, a nonprofit that has created an open-source software standard for the chips that power smartphones and other electronics, acknowledged in recent months that it had chosen to move its incorporation from Delaware to Switzerland because of concerns from its members about more stringent regulations in the United States.”

    The Times added: “If this administration proceeds with the current trajectory, we’ll see more defections of companies, of scientists,” said Scott Jones, a nonresident fellow with the Stimson Center. “They’ll take their toys and they’ll go elsewhere, and other economies will be the beneficiary of that.”

    Qualcomm, Nvidia and other US semiconductor companies earn most of their revenues in Asia. If they are not permitted to sell to China, they will lose a large part of their business. Even worse: Huawei now produces smartphone chipsets like the Kirin series that compete head-on with Qualcomm’s offerings, and the Ascend processor for servers that compete with Nvidia.

    According to a Chinese analyst, Huawei might drop the price of its chipsets by 30% in a price war with the Americans, driving them out of the whole of the Asian market. In that case, the analyst said, Nvidia would run out of cash in 18 months and Qualcomm would run out in 24 months, forcing them to shut down research and development. That would mark the end of American importance in the semiconductor industry that the US created.
  • Trump blasts proposed restrictions on selling U.S. jet parts to China

    U.S. President Donald Trump on Tuesday blasted proposals that could hinder U.S. companies from supplying jet engines and other components to China's aviation industry and said he had instructed his administration to prevent such moves. The president's intervention illustrated, at least in this case, his desire to prioritize economic benefits over potential competitive pitfalls and national security concerns. It also contrasts with the sharp restrictions his administration has placed on U.S. companies trading with Huawei Technologies, the world's largest telecommunications equipment maker, citing national security reasons.

    In a series of tweets on Tuesday, Trump said national security should not be used as an "excuse" to make it difficult for foreign countries to buy U.S. products. "The United States cannot, & will not, become such a difficult place to deal with in terms of foreign countries buying our product, including for the always used National Security excuse, that our companies will be forced to leave in order to remain competitive," Trump wrote on Twitter. "As an example, I want China to buy our jet engines, the best in the World," he added. Trump later said before departing to California that, "things have been put on my desk that have nothing to do with national security, including chipmakers."

    The Semiconductor Industry Association (SIA) said it welcomed Trump's comments. “We applaud President Trump’s tweets supporting U.S. companies being able to sell products to China and opposing proposed regulations that would unduly curtail that ability," said John Neuffer, the group's president, in a statement. "As we have discussed with the administration, sales of non-sensitive, commercial products to China drive semiconductor research and innovation, which is critical to America’s economic strength and national security.”