Manufacturing’s globalization has led to a dependence on imports for product sourcing. Due to the pandemic, the country’s ports were frozen and its borders were closed, leaving Americans with barren shelves and excessive costs. Many Americans are wondering why we need to import oil since our reserves are sufficient to support us in this country in light of the rising price of gasoline at the pump.
If all goes well, it seems excellent that there is worldwide trade. However, it also gives those who own the product the power.
These disputes have had serious repercussions in the past and even sparked war.
Western Journal considers the following:
The United States has a history of economically cornering adversaries on the international stage, forcing them to initiate hostilities.
On July 26, 1941, one of the most well-known applications of this tactic occurred.
President Franklin D. Roosevelt imposed extensive economic penalties and asset seizures against Japan on that day.
According to History, as a result of the sanctions, “Japan lost access to three-fourths of its overseas trade and 88 percent of its imported oil,”
Japan had little choice but to declare war on the West and prepare its imperial fleet against the United States less than five months later because it needed oil to maintain its military force.
Some predict a circumstance akin to this since they have experienced it before.
CNBC reports that the US now appears to be using the same tactic against China by severely limiting chip and semiconductor exports to that nation.
For any modern military to preserve its formidability on the international stage, access to semiconductors is just as important as access to petroleum was for forces in the 1940s.
The U.S. Department of Commerce has imposed stringent guidelines and licensing requirements for chip exports to China, according to CNBC, with the apparent intention of preventing that nation from obtaining the chips used in supercomputers.
This included a step to prevent China from obtaining specific semiconductor chips produced anywhere in the world using American machinery.
According to CNBC, the justification for these broad regulations is largely based on the idea that chips can be used for “advanced military capabilities” and would be utilized for such purposes in the future.
This suggests that the regulation’s restrictions are in place to impede China’s military.
Abishur Prakash, co-founder of the Center for Innovating the Future, told CNBC, “With the latest action, the chasm between the U.S. and China has now expanded to the point of no return.”
“The latest chip rules are a sign that Washington is not trying to rebuild relations with Beijing. Instead, the U.S. is making it clear that it’s taking this competition more seriously than it ever has, and is willing to take steps that were once unthinkable,” he stated.
According to Pranay Kotasthane, director of the Takshashila Institution’s high-tech geopolitics program, these requirements will “hobble” China’s domestic chip manufacture.
Jim Lewis, a technology and cybersecurity expert at the Center for Strategic and International Studies, a Washington, D.C.-based think tank, said that the measures would put China back years. He said they were reminiscent of the strict laws that prevailed during the height of the Cold War. China won’t stop producing chips, but this will seriously slow them down.
It is unsettling to think about China’s options if it wants to keep providing its military with cutting-edge processors, which are now prohibitively expensive for the country to acquire.
China may be able to get what they require from other sources, but those sources are hostile.
More on this story via The Republic Brief:
CNBC noted that Taiwan and South Korea — countries that are less than friendly with China — currently dominate the chip industry. According to another CNBC article, Taiwanese manufacturers in 2020 accounted for over 60 percent of global revenue brought in from the manufacturing of semiconductors… CONTINUE READING…