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The only thing missing from the article is what would be a good response to this policy. Tariffs seem like a very suboptimal solution. It seems highly unlikely
by pm90 2y ago
The only thing missing from the article is what would be a good response to this policy.
Tariffs seem like a very suboptimal solution. It seems highly unlikely that manufacturing at the scale needed to replace China is possible domestically. There’s simply not enough people that can run the factories required to service demand. Perhaps the manufacturing base will shift to eg India, but the de-industrialization of the US will continue.
It boggles my mind why the US is doing this. Targeted sanctions on cutting edge technologies seems fine, but Steel tariffs? Come on. American retailers are going to jack up prices, American consumers will get squeezed more than ever before and high inflation is only going to cause more instability.
The US seems intent on accelerating its demise.
- etempleton 2y agoI think you see the response: 1. Tariffs 2.Strategic Government Funding (e.g. Chips Act) 3. Leverage Alliances to Deny Key Components (e.g. ASML EUV lithograph) Chinese Chip Manufacturers are going to have to spend more money to try to keep up with competing chips and even then will largely be uncompetitive in the short to mid term.