Monday, August 28, 2023

China chips

President Biden is often accused by his detractors of being somehow indebted to China. The most common reason given is that his son Hunter received benefits from China and the Chinese government can use that as a bargaining chip to get concessions. This doesn't seem likely based on Biden's behavior toward China. First off, he kept the import taxes on Chinese goods implemented by Trump. Second, Biden signed an executive order prohibiting new US investment in high tech areas in China. Third, he passed the Chips Act which will build chips here to compete against China. Forth, he set export controls banning China from buying advanced chips and equipment that makes chips. Fifth, Biden has ordered that top engineers and executives working for Chinese chip comes to either come home or lose their citizenship. These are the actions of a president who is not concerned about what China thinks but is concerned about America becoming independent in the chip business.

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