Chip war: USA, Japan and EU raise new barriers to high technology for China. What will Beijing do now?

Chip war: USA, Japan and EU raise new barriers to high technology for China.  What will Beijing do now?

other than globalization. Under pressure from Washington, the Europeans and the Japanese raised their stakes export barriers machines to produce Chipsstarting with the Dutchman’s almost indispensable tools ASML that enable the creation of more complex semiconductors needed to develop arms more complex, as well as for applicationsartificial intelligence. Beijing’s response should not be long in coming: according to experts, China will soon confirm its technological and manufacturing leadership Cattle in batteries forelectric car, which complicates US green car plans (at least 50 percent of components must be produced in the United States, according to the law Biden wants). Not to mention Green Europe’s dependence on Chinese hegemony. “The world – reads the July 2022 IEA report – will depend almost entirely on China to supply key elements for solar panel production until 2025. Depending on the production capacity under construction, the Chinese share of polysilicon, rods and wafers will soon reach 95%.” A good mortgage on growth strategies in the coming years, if the logic of making friends continues to prevail, ie Globalization is limited to friends.

The challenge between the US and China over chips and the decline in trade in the non-global world

But the challenge between China and the United States is destined to be the main key to the international situation that has been marked by, thanks to the difficulties of trade, slowed growth Provided by the International Monetary Fund. data World Economic Outlook Witnessing the slowdown from 6.1 to 3.4%, but also the prediction that in the next five years the global economy will grow by less than 3%, the lowest medium-term forecast since 1990. The fall of the Berlin Wall but above all to the vents of Deng Xiaoping.

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Dutch ASML Cuts Off Supplies to Beijing: Historical Significance

In this window you must enter the last one tight on semiconductors imposed by Washington against Beijing, a move so aggressive that it, according to the British member Niall Ferguson, recalled Franklin Delano Roosevelt’s restrictions on oil imports from Imperial Japan, one of the reasons that led to the attack on Pearl Harbor in 1941. Doing so incantations ASML’s decision to cut off supplies Chinese industries certainly have historical significance. The Dutch company, which was born from a subsidiary of Philips, tried to defend its neutrality to the end (15% of its turnover depends on China) regarding geopolitical disputes, only to admit, last March 8, the need to join Washington’s ban.

Also read: US-China chip war: Challenge passes through Taiwan and ASML. And the stellants remain uncut

After all, Veldhoven is unique in the world, the only card in Europe’s hand in the chip challenge. With the arrival of 35,000 employees from 119 countries (an average of 3,500 new hires every six months) Asml It is the flagship of European science: Here, with the core contribution of German Zeiss, the chip machinery production process is based UV lithography The extremes that allow the development of 2/4 nanometer semiconductors are far more advanced than Beijing’s technology can achieve, despite the financial efforts. These technological treasures, widely with Taiwanese Tsmc, You should not reach Beijing, are the dictates of Washington, which Dutch Prime Minister Mark Rutte had to comply with. But it happened Ursula von der Leyen At the recent Chinese mission, Xi Jinping predicted the new rules that the European Union is preparing to launch “to prevent the escape of emerging and sensitive technologies abroad.”

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The new war on potato chips: How will China react now?

It is easy for the Chinese president to misunderstand. But, on March 31, another cold shower arrived, this time from Japan. Starting in July, Tokyo will also ban Nikon and Tokyo Electron from exporting machinery needed to produce high-end chips, thus eliminating the only alternative to ASML, the equity giant (seeking $200 billion in capital) unknown to most investors. This is how he gets up An electronic barrier between China and high technology Which Belongs to American Technology: Behind the geopolitical backdrop, a trade war rages to the last slice, pending response from Beijing: For lithium or rare earth batteries. We’ll see.

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