In this case, the risk is that China literally takes over (one way or another) the vast majority of supply of semiconductors to specifically harm western companies (or countries in a war setting). In that scenario, are you still worried about unequal kick backs or are you happy that the nation has access to the chips it needs for industry and defense?

Even if we would go to war, its probably a war we would prefer not to have to fight even if the weapons used stay conventional. It's the kind of situation that changes the course of history in a big way for the loser.

Nobody wants to be the Spanish after the defeat of the Armada of the 21st century.

If allies can't depend on US to defend them then it opens up all sorts of possibilities none of which are in the best interests of the US or those that value democracy.

For example closest allies like Australia for example would have no choice but to capitulate and bow down to China's whims. This would include ending the Five Eyes security arrangement and allowing Huawei to operate the 5G backbone infrastructure.

Crimea begs to differ...

There are so many dynamics involved e.g. Japan needing to defend the Senkaku Islands, India, UK and EU member states being involved and the fact that you an increasingly united front within APAC.

Also China's military is a lot of smoke and mirrors. They simply can't match the F-22 and F-35 in the air or the Ford class aircraft carriers in the sea. And US is looking to build a missile defence system on Guam to prevent long range attacks.

There are simply too many factors in play to give any percentage of winning.

>Ford class aircraft carriers

Isn't there only one Ford class carrier? And it is still not fully ready, and it is in the Atlantic, so at this point is not ready to play a part in any South China Sea conflict.

No one is expecting war this year. There will be 3 Ford Class carriers by 2030 and 5 by 2040. As well as the Nimitz class which are still better than what China has today.

In times of war, this USD debt is going to be a liability for china, since the US can just refuse to repay it (and after all, what else is china going to do about? Declare war again?).

Kind of explains the problems with China having too much USD debt. Even without times of war.

This is a contradiction. It leaves open the possibility of sanctions sufficient to induce US companies to stop building everything in China.

In the long term the cost of this is negligible or produces a net benefit. Maybe some things cost more if it would have been cheaper to make them in China, but that isn't necessarily true outside of China's cross-subsidies which you're then still paying for, and even if they do you get the countervailing economic benefit of repatriating some of the production. (It's also plausible that sanctions on China would move production to places like Mexico and Brazil which are still cheaper than the US, but then you're back to no significant long-term cost increase and a benefit from diversifying production.)

The main cost is in the short term, because things would cost more. But they would cost more by the amount of the tariffs. Which go to the government, which it can then give back to the domestic population in various ways. Which could produce a domestic benefit, if China ends up paying any of the tariffs. If there is a $1 import tariff which pays for a $1 tax reduction for the middle class, but the tariff is paid $0.75 by the domestic buyer and $0.25 by the foreign manufacturer, you just transferred $0.25 to the domestic population.

The only way you even get a short-term domestic cost is if manufacturing actually does start moving out of China. Because then you have a $1 tariff which causes people to be willing to pay $0.25 more for a product made in Ohio or Mexico. Which costs you the $0.25 and then you don't get the $1 to offset domestic taxes. But it costs China $5, i.e. the full value of the sale and not just the amount of the tariff or the marginal cost of manufacturing it elsewhere. It costs them more than it costs the US. Which gives the US more negotiating leverage to get whatever concessions they want.

To see the mind-set of the US/Europeans in the 1940s, take the time to watch the miniseries "The Singapore Grip". The British in particular were very dismissive of the Japanese. They sent a whole two(!) battleships off to destroy the Japanese invasion fleet. The Japanese polished them off in about an hour and a half. [I see that moment as the point when the whole British Empire died. But it took the British another 15 years to recognise that death.]

Getting in a naval battle with China may likely someday become "getting in a land war with Russia".

> https://www.scmp.com/news/china/military/article/3098972/chi...

Also there are US air bases in Phillipines, Singapore, South Korea, Australia, Guam etc. This is going to be a regional conflict not just between US and China.

Again. Anyone who says there is a 100% chance of winning is delusional and ignores the history of war on this planet.

Being able to sink any hostile warship within 2000 miles of the Spratly Islands is a significant deterrent to external military intervention in the region.

Of course, whether that holds true if boots land on their soil, who knows.

These corporations are the ones whom benefited from exporting the production infrastructure at the expense of the labor market. Now, they want the labor market to fund the redevelopment of the infrastructure for their benefit.

I'm confused as to why the US government needs to be involved capital investment when these companies are boasting historic profit margins.

Another way to look at this is to say that other countries are now more appealing places to manufacture certain goods than the USA is. Everything is relative, and other countries have agency too.

Presumably they would cooperate and do something about it if they saw the current situation as too risky?

These companies move manufacturing overseas because they don't want to pay family members/neighbors a decent wage, or other business incentives like lax polution standards.

Now they want struggling Americas to build them a new cozy home in the country they abandoned. (You know what I mean by abandoned. The last thing the wealthy boys will ever do is move these wealthy executives to these cheaper countries completely.)

I'm at the point---go ahead and give them billions. Give them land. Take off any tariffs. Yes--a complete 180 from my opening sentence.

I feel computer chips are very important, and we do need factories here.

It seems like every few years a big prospering industry takes tax payer money. I'm always hoping they might show a bit of gratitude, but no. We bailed out "big stupid banks" (quote by Jamie Diamond), and the banks just turned around raised fees for everything.

I don't want a lot. Just some compassion with prices. If you sell drugs (Pharmacutical jab) to another counties at a huge discount; give poor/middle class Americas the same deal? Johnson & Johnson were the only drug company that didn't take millions in grants for Covid research. You would think by taking millions in gifts, the manufactoring information would be freely available to any American? (I am so glad they found a vaccine. I am still angry over my prescription price dole out each month.)

Oh yea, I'm not one sided. I felt AOC, and others, took demands to far with Amazon a few years ago.

It's almost like when we do get a say in a private business decision, we go overboard? We are so used to big businesses stepping on us, we over demand?

But yea, I'm completely disenfranchised. Give them money, and incentives.

It will be interesting to see what our inflation rate will be in a few years.

I heard a big wig stock guy say today he is worrying the dollar might not be used as a bench mark in other countries in a few years if we don't stop spending like drunken sailors.

I'm all for spending when it benefits the poor, and middle class. It doesn't seem to ever trickle down.

The homeless encampments are just getting bigger in my county. I see too many frantic people filling up moving vans. Instead of happiness over the opening, I'm seeing a lot of misplaced anger when I go out.

(Sorry about rambling.)

With good regulation and unionization this can lead to great wealth distribution in the US along with worldwide economic power.