Re:China quietly sets new 'buy Chinese' targets for state co...
by DiogenesKynikos on Tuesday August 03, 2021 @11:47AM
(#28050632)
> it's obvious now that the West needs to start acting
China's drive to reduce dependence on imports of high-tech goods is a reaction to the US' attempts over the last few years to use this dependence against China.
The US has used its central position in the world's financial system to force other countries to stop doing business with certain Chinese companies, such as Huawei. This can be a death sentence for these companies. Huawei can't buy 7nm chips from anyone - including Chinese companies - because those companies are afraid of US sanctions.
China has recognized that it is vulnerable to this type of economic aggression, and is taking measures to insulate itself. I expect to see China, Russia and other countries targeted by sanctions build up financial systems that bypass the US dollar, and for China to try to reduce dependence on high-tech imports.
This all goes back to the aggressive foreign policy that Trump initiated, and which Biden appears to be continuing.
China's drive to reduce dependence on imports of high-tech goods is a reaction to the US' attempts over the last few years to use this dependence against China.
The US has used its central position in the world's financial system to force other countries to stop doing business with certain Chinese companies, such as Huawei. This can be a death sentence for these companies. Huawei can't buy 7nm chips from anyone - including Chinese companies - because those companies are afraid of US sanctions.
China has recognized that it is vulnerable to this type of economic aggression, and is taking measures to insulate itself. I expect to see China, Russia and other countries targeted by sanctions build up financial systems that bypass the US dollar, and for China to try to reduce dependence on high-tech imports.
This all goes back to the aggressive foreign policy that Trump initiated, and which Biden appears to be continuing.