But a large part is simply a lower cost structure in an economy with GDP/capita about a fourth of that in the US. They can simply cost-reduce the well-understood, mature, manufacturing process for ICs just as they did for solar cells.
They could give them away, since Chinese chip plants are owned & managed by the CCP.
Biden will not do anything that would benefit the US as a matter of policy, and tariffs would go against his contract(s) with Xi.
There’s a reason there are weight classes in boxing and MMA. You can’t have fair competition if someone has an unfair advantage going into a fight.
The same is true of economic competition. In a totalitarian government everyone is an obligatory employee without a contract and without true rights. Workforce costs are controlled by the dictatorship. ‘Laws’ are what the dictatorship says they are, so patents and intellectual property are not constraints. An open and free society can’t compete on even footing with a dictatorship without putting in place protections.
What does Red China buy from us? They buy some planes and some grain. The balance of payments stats are wildly in their favor. I say tax the *bleep* out of everything they send us!
Article argues covid in US was blowback from US economic warfare against China.
https://www.unz.com/runz/american-pravda-the-covid-epidemic-as-lab-leak-or-biowarfare/
Tariffs and quotas are a lousy way to protect US chip companies from competition. If China can sell the chips at a lower cost, fine. Let them come in and give consumers a break with lower prices on the products that use those chips. HOWEVER, at the same time, let US chip makers completely expense any R&D expenditures made in the current tax year, even before those new technologies come online. This is a win-win for consumers and chip companies. The only loser is the gov’t because it can’t steal your money through tariff collections and the R&D expensing on tax receipts from the chip manufacturer.
IF the Bidenistas do this, AND IF they do it for any stated reason other than “national security”, then it will be overturned at the World Court as they well know and they will clutch their pearls and wring their hands and proclaim their powerlessness over said World Court decision, and WE FReepers will know that it’s just Kabuki Theater pablum to be consumed by the ignorant masses ...
Here is a concept... Stop R&D and pause it. Go a few years with known tech that is already available and proven. There is no law that says everything absolutely has to be re-engineered from the ground up every year creating a demand for parts that are not even produced or available yet.
Chip Wars / Economic Warfare bump for later....