The United States and China are dangerously moving toward a major conflict and as I’ll prove in today’s video, the latest microchip ban on China will have massive global implications.
One of the things you will often hear me talk about during my speeches and writings is that we live in a “global economy”. It’s really impossible for any one country to be completely self-reliant and why would you want to be? The internet has opened an entire new world to us and countries and merchants can sell goods and services around the world.
Unfortunately the US is moving toward “high end” decoupling from China, with it’s latest round of microchip sanctions. But industry experts are perplexed by Biden’s move, as it’s going to severely damage the microchip industry (which by the way has already lost $1.5 trillion dollars in market cap this year alone).
The US just proved it will stop at no costs to cut off China’s access to these chips. Even if it means huge losses for America’s own microchips companies. We haven’t heard any response from China yet (mainly because they are too busy with the 20th Party Congress) but here is the reality:
China purchases 53% of all worldwide microchips. With the US cutting off access to China, companies around the world will see massive declines in revenue. Less revenue = less money for R&D which experts are predicting a huge slowdown in microchips. Meanwhile China’s government only has one option left. Double down, invest even more and start becoming the industry leader.
I break it all down in today’s YouTube video 👇
The US no longer cares to serve anymore instead looking for ways to deter others that's what they looking for now and they don't care about recession and societ.