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Politics : Politics for Pros- moderated
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To: didjuneau who wrote (769561)10/14/2022 3:38:28 PM
From: skinowski6 Recommendations

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I don’t understand what the admin is trying to accomplish. China is the largest manufacturer of various stuff on the planet. Obviously, these days to make stuff you need chips. If we cut them off from chips, there won’t be enough products - there will be bottlenecks and shortages. Money (and we are good at creating money) will be chasing fewer good = higher prices = inflation. And it’s not the kind of inflation that can be cured by raising rates.

The Chinese seem to be very resourceful. If we cut them off from chips - they’ll tighten the belts, and build up their own chip industry. A few years from now, they will no longer be interested in buying any of our chips - they’ll be interested in convincing our buyers that their chips are cheaper and better. Instead of being our major semiconductor buyer, they’ll become a major competitor.

Which is not good for our semiconductor industry - losing a major purchaser of their products - having their market severely diminished - will be hard on their revenues - and on their ability to invest in developing new products and technologies.
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