Tag: SMIC

China’s enormous subsidies come from trading profits. US and European subsidies come from taxpayers.

Tina Marie (Ms. Cat)
Inside China Business.

CATL and SMIC are two giant Chinese companies that are often singled out by Western think tanks as two firms who benefit from China’s subsidies, at the expense of foreign competition.

But all industrialized countries employ government subsidies, which help favored domestic industries grow. China, however, uniquely can invest in preferred sectors by channeling its massive trading surpluses, and providing low-cost access to its world-leading supply chains and logistics systems.

In contrast, North American and European companies who seek government incentives and subsidies are competing with other spending priorities, as all the funds come from taxpayers. This reality requires of companies seeking government help to do so through proxies, lobbying efforts, and through think-tanks who create research that can be published and used by lawmakers to justify the use of taxpayer funds.

China’s enormous subsidies come from trading profits. US and European subsidies come from taxpayers

US tightens rules on AI chip sales to China in blow to Nvidia

Tina Marie (Ms. Cat)

US tightens rules on AI chip sales to China in blow to Nvidia

Nvidia chief executive Jensen Huang told the Financial Times earlier this year that the 2022 controls had left the Silicon Valley company with its “hands tied behind our back” by barring sales of its most advanced chips to China. He has said further restrictions could seriously harm US chipmakers by eating into their ability to finance investment.

Related:

Updated US export controls could cover ASML’s workhorse machine, dealing China’s chip ambitions a heavy blow

China ups export curbs on key EV battery component, safeguarding graphite amid US tensions

[2020]: Would China Invade Taiwan for TSMC?

Tina Marie (Ms. Cat)

Our previous article explained the importance of the Taiwanese firm TSMC as a critical link in the global semiconductor supply chain. Although it is not the only firm with the ability to manufacture cutting-edge logic chips, TSMC is the only viable choice for chip design companies in many situations, and under normal market conditions is likely to remain so for years to come. Control of TSMC’s foundries in Taiwan might thus appear a decisive factor both in Beijing’s readiness to risk attempting unification through force, and for other states deciding whether to take a strong stance against this.

Would China Invade Taiwan for TSMC? (archived)

China Defies US Sanctions with Computer Chip Breakthrough

Tina Marie (Ms. Cat)

China Defies US Sanctions with Computer Chip Breakthrough

China’s rise as the largest, most powerful nation on earth is inevitable. The resources, energy, and time the United States is wasting in attempting to contain China’s rise and assert itself above all other nations could be used instead to find a constructive role to play among all other nations as a still powerful, influential nation with much to offer humanity, just not the most powerful or influential. The United States, like many empires before it in history, unfortunately, appears determined to squander this opportunity to peacefully transition to one powerful nation among many, and instead faces the prospects of holding neither primacy over the planet, nor significant prominence among the nations on it.

Founder of SMIC: US ability to constrain China not as strong as expected

Tina Marie (Ms. Cat)

Founder of SMIC: US ability to constrain China not as strong as expected

“If the US can’t win on a level playing field, it will take an administrative approach. It did this with Japan in the 1980s and has been constraining 5G again since 2018, but this time it’s no longer against Japan. The US is less able to constrain China, but we can’t take it lightly,” he said.