Posted on 01/16/2017 9:22:51 PM PST by RightGeek
Semiconductors are essential to everything from home appliances to cars, satellites and fighter aircraft. The U.S. has led the industry since its start in the 1950s, with firms like Intel, Qualcomm and Apple today accounting for nearly 50% of global sales, worth about $165 billion a year, and employing some 359,000 Americans. Semiconductors are the fourth-most valuable U.S. export behind airplanes, petroleum products and cars.
China hopes to change this through state subsidies and predatory trade practices. The White House report, drafted by industry and policy experts, warns that “Chinese policies are distorting markets in ways that undermine innovation, subtract from U.S. market share, and put U.S. national security at risk.”
In 2014 the Chinese government launched an unprecedented $150 billion program to subsidize domestic semiconductor production and acquire advanced technologies overseas. Beijing also increasingly forces Chinese firms to use domestic suppliers while forcing foreign firms to transfer technology in exchange for market access. This indirect theft of intellectual property is complemented by direct pilfering via abuse of joint ventures, state-backed cyberhacking and commercial espionage.
No Chinese semiconductor firm is in the global top 20 today, but Beijing aspires to world-class status in all major segments of the industry by 2030. By 2025 it wants to produce 70% of the chips used in its economy, up from 9% today. Along the way it wants to erode the commercially and militarily significant technological advantage long held by companies in the U.S., Japan, Taiwan, South Korea and Germany.
The recent attempt by Chinese investors to buy German firm Aixtron, which isn’t mentioned in the White House report, raises particular red flags. Two state-backed Chinese firms may have colluded to put Aixtron into distress by canceling a large order at the last minute.
(Excerpt) Read more at wsj.com ...
Btt
China is taxing people by their communist government stealing the people’s technologies and inventions. It is a communist design to indeed crush capitalist competition by encouraging intellectual theft and on the flanks and government theft of patents on the front.
This is why in part communist Merkel also supports immigrants raping germans...
This is why we elected Donad Trump. This is what punitive tariffs are for.
The United States must start treating China like it is an atheistic communist nation intent on the demise of the United States of America.
Companies building plant in China makes a joke about protecting trade their secrets.
Notice that few multi-billion dollar semiconductor fabs are built in India, yet many in China. There is a reason for this. To justify a multi-billion dollar fab, it needs to be running at 99.9% efficiency; this is impossible if the energy goes out or of water supplies too are fitful.
China understood this early and built an infrastructure to support this. India, largely because of mass corruption, is behind in these areas.
I have had the same thought.
It is timely for the WSJ to publish this... One more little task for the Trump administration to address. China’s 2014 plan, eh ... thanks, 0bama, for nothing.
Levin is a globalist Free Traitor™ fascist who I can’t stand to listen to for 5 seconds.
Why is it that those folks get hung up on the adjective "free" and not the noun "trade" which means the exchange of goods and services. If the Chinese are not purchasing our products with the case we give them for their products it isn't trade.
Instead, our sell-outs are happy to run up foreign indebtedness in a one-way bargain, hollowing our our own country until some-day the Chinese debt collectors come in an foreclose on America. That's what would have happened if we had not elected Trump.
This is where a top down control at least bought China something. But we would be wrong to wish that on India. It’s better that India be free enough to squabble about its energy or its water supplies, if it chooses. Because that also leaves it free enough to coordinate without needing a tyrannical top-down control.
India will need to grow before it can support things like that. But other things can help it grow. Rome wasn’t built in a day and neither will Delhi be.
Good point; purchases aren’t really trade.
The most sustainable model will look like barter, where the money is simply a formality.
Yeah too. Skeptics simply were crowing that we were giving China a bunch of IOUs. But IOUs count. Either we have to meet them when presented, or else we will take a severe hit to global credibility.
India has problems agreeing with itself. A few months ago I read about a squabble over river water resulting in a deadly gun battle.
I could have predicted this from the Hindu faith model. They are going to have to kick Kali and the like out of their hearts, and go for Jesus, if they want to see success like unto the west. Islam in their midst doesn’t exactly help either, though Jesus will handily overcome that.
As the bible says... “Unite my heart to fear Thy name.”
Perhaps for the same reason that 80% of Asian Indian-Americans voted to reelect Barack Obama?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.