Exclusive: U.S. moves to cut Huawei off from global chip suppliers

[Viet]

If the US could accomplish these goals with ease, they would've already been done. Unfortunately all of these come with repercussions. The US cannot single handedly remove China from the WTO. China has already become the world's largest trading nation. Even many of America's allies now trade with China more than they trade with the US and many of these will need to rely on that trade to help them recover from this disaster.

Secondly, if the US were to cut off China from the dollar market, this will cause a severe disruption and financial disaster for the US itself. It will also push for the wholesale adoption of the Petro Yuan and Digital Yuan which would accelerate the end of the USD as a reserve currency. When you take into account that China is the world's largest trading nation, this means that the USD as a reserve currency will take a huge hit. Cutting China out, will make the use of the Petro Yuan and Digital Yuan mainstream overnight and this may cause even other countries which are resentful of the US from Russia to Iran to Venezuela, etc to start using those currencies even in trade that doesn't involve China.

The end of the USD as reserve currency will bring about a sudden collapse of the US empire, that is guaranteed. Even Trump wouldn't be dumb enough to risk this.

China trades with Russia, Iran, Venezuela, North Korea are minuscule compared to the US, EU, Japan and Asean. The US can forbid the use of USD in China. That’s the most easiest way. See Iran sanctions. China export economy will shrink 90 percent if not entirely collapse in a matter of days.

 

[KAL-EL]

China has huge soft power in the world. The US cannot stop China.

and the US has zero soft power in the world

 

[tower9]

China has huge soft power in the world. The US cannot stop China.

Actually, China has very little soft power. China has been notoriously incompetent when it comes to soft power. What China has is hard power and that's about all it has.

China will survive this. But it will be hurt hard by the US, there is no doubt about it.

China trades with Russia, Iran, Venezuela, North Korea are minuscule compared to the US, EU, Japan and Asean. The US can forbid the use of USD in China. That’s the most easiest way. See Iran sanctions. China economy will collapse in a matter of days.

Sure.

 

[Beast]

If its true this ban will cut off 90% of revenue, then Huawei is in deep sh*t.

Are u sure? US still need to work with Huawei for 5G principle becos most of the standard for 5G is set by Huawei. And Huawei 5G installation chips are using chipset fabricated by Chinese factory as they do not require very high end chips used on smartphone... Same as Huawei mid range smartphone.

 

[FairAndUnbiased]

China trades with Russia, Iran, Venezuela, North Korea are minuscule compared to the US, EU, Japan and Asean. The US can forbid the use of USD in China. That’s the most easiest way. See Iran sanctions. China export economy will shrink 90 percent if not entirely collapse in a matter of days.

It will also cause massive inflation globally, which is why US doesn't do it. If they could do it without hurting themselves they would but they can't so they don't. We aren't Vietnam. Vietnam's economy is 70x smaller than China's which is bigger than the difference between USA and Iran (50x).

 

[Paul2]

It is probably good news for China. Finally China could make up its mind to punish American companies as a revenge. China's soft reactions in the last two years gave Americans an illusion that they don't have to pay any cost for their constant attacks to China.

This was glaringly obvious.

Zhongnanhai's weak position on trade dispute, and refusal of retaliate in force immediately only invited more trouble.

It let people in Washington see that being bullish on China is a risk free political capital. Instead of having one pro-China camp, and one anti-China camp in the Washington, now we have two anti-China camps there.

Xi, go fix this now...

 

[Paul2]

Not morality but the cornerstone of USA evangelism, that includes free market capitalism, free trade, Ricardo comparative advantage.

Now USA goes into central planning.

I see no contradictions there.

US supports free trade when it benefits them, and don't when it doesn't.

Now they realise themselves being on the backpedal, and they want to adapt to survive. When s**t hits the fan, even most delusional people quickly come to senses.

@Song Hong I think, you are smarter than how you look at first glance.

 

[Paul2]

What China has is hard power and that's about all it has.

Sure.

If China had hard power... If China had hard power, it would've used it. You know ways of people who climb high in CPC. If they have a gun, they shoot.

Now, again, I don't have to tell how dangerous empty threats are to people who know CPC. If you are telling a man "I WILL KIIIILLL YOIUUUUUU!!! FEAR MEEEE," and not acting on it, you tell two things: first, that you are his enemy and you will try to kill him if you can, and second, that you can not really kill him now, and it is the best to retaliate against you while it is so.

I see how the situation will be playing out:

Monday: the boy who reads out news aloud in zhongnanhai rings the buzzer, — "Those Americans are not happy with something again! They are up to something weird!," — "Throw it to Ding to prepare for the Friday meeting, and let me sleep now!"

Friday: everybody had few days to think over it. PBSC meeting happens, diatribes read, capitalists being accursed. After the meeting Xi calls his buddies to do the actual decision making. Zhong will say that Americans are bluffing, Liu and Wang will say that Americans are probably not bluffing, but still not worth the worry.

I do expect that Xi will throw some meat on the table for Americans, but without much understanding to which ends it is.

Xi doesn't care about the West. He is neither afraid of it, nor he sees anything of value in the conflict. To him, internal matters are far more important, and I think he doesn't make a connection there. Most of Xi's foreign policy decisions are actually made by his advisers, and close circle.

 

[Faith_Lock]

This was glaringly obvious.

Zhongnanhai's weak position on trade dispute, and refusal of retaliate in force immediately only invited more trouble.

It let people in Washington see that being bullish on China is a risk free political capital. Instead of having one pro-China camp, and one anti-China camp in the Washington, now we have two anti-China camps there.

Xi, go fix this now...

Chicken had come home to roost for Xi.

His refusal to retaliate against Taiwan for 4 years, against Australia for >4 years, against Hongkong protesters, and against Trump for 2 years, peoples are starting to see through Xi's weakness.

Xi had made China Trump's personal ATM machine. Any times Trump's poll rating is down, he always has China to kick around.

Under Xi, China roars like a lion and fights like a pussycat.

Everybody and their grandma know what Xi is doing. He is bidding for time and try to avoid USA and European Union gangs up. It is so easy to see through what Xi is doing. All Trump has to do is go for the final move (forget about the escalation so that Xi can bid for time). In addition, unlike 60 years ago, China is so fat and juicy, Trump can get everything he wanted by just cutting pieces from China.

I wonder how much Xi is going to give this time, maybe $300B.

 

[tower9]

If China had hard power... If China had hard power, it would've used it. You know ways of people who climb high in CPC. If they have a gun, they shoot.

Now, again, I don't have to tell how dangerous empty threats are to people who know CPC. If you are telling a man "I WILL KIIIILLL YOIUUUUUU!!! FEAR MEEEE," and not acting on it, you tell two things: first, that you are his enemy and you will try to kill him if you can, and second, that you can not really kill him now, and it is the best to retaliate against you while it is so.

I see how the situation will be playing out:

Monday: the boy who reads out news aloud in zhongnanhai rings the buzzer, — "Those Americans are not happy with something again! They are up to something weird!," — "Throw it to Ding to prepare for the Friday meeting, and let me sleep now!"

Friday: everybody had few days to think over it. PBSC meeting happens, diatribes read, capitalists being accursed. After the meeting Xi calls his buddies to do the actual decision making. Zhong will say that Americans are bluffing, Liu and Wang will say that Americans are probably not bluffing, but still not worth the worry.

I do expect that Xi will throw some meat on the table for Americans, but without much understanding to which ends it is.

Xi doesn't care about the West. He is neither afraid of it, nor he sees anything of value in the conflict. To him, internal matters are far more important, and I think he doesn't make a connection there. Most of Xi's foreign policy decisions are actually made by his advisers, and close circle.

All China has in respect to its international standing is hard power. It just has less hard power than the US, that’s its problem.

 

[riscol]

US has hard power but afraid to use it against China otherwise war had already broken out. If China did not had hard power US would have started a war already. Discussion about hard power is pointless. Only trade war, economic/financial and tech wars between these two.

 

[ZeEa5KPul]

Sorry to disappoint all the trolls, losers, and haters (not really), but it seems the US keeps getting weak at the knees
https://news.cgtn.com/news/2020-05-...eral-license-for-Huawei-Qw5L06gvUk/index.html
Dollars to donuts the US starts giving licenses to TSMC and everyone else who wants to do business with Huawei once Trump gets a look at the semiconductor stock plunge this is causing as we speak. Even if I'm wrong, the worst that will happen is that Huawei shifts to a lower gear for a couple of years until SMIC, SMEE, AMEC, et al. get their ducks in a row, then Huawei will shift up to the highest gear completely invulnerable. America will have played its last card and will have nothing left but to REEEEEEE and weep.

All China has in respect to its international standing is hard power. It just has less hard power than the US, that’s its problem.

Why do you think that if China kisses a*s it will become powerful? Is "powerful" an adjective you normally associate with kissing a*s?

 

[Paul2]

His refusal to retaliate against Taiwan for 4 years, against Australia for >4 years, against Hongkong protesters, and against Trump for 2 years, peoples are starting to see through Xi's weakness.

Everybody and their grandma know what Xi is doing. He is bidding for time and try to avoid USA and European Union gangs up.

I think everybody here kinda felt that.

His stratagem was to not make enemies abroad, so he can be free securing his power at home. Instead, what has happened was him making a lot of enemies internally, and his move not making him much friends abroad either.

Chicken had come home to roost for Xi.

Not just a chicken, but chickens, many of them. His issues with CPC's insiders are far from over. An unfinished enemy under your feet, is the most dangerous one.

A giant cohort of 65+ party cadres that had just any alignment with Xi is about to retire, and he will be left alone with the 40-something young, and hungry upcoming cadres, who are quite extreme on both sides of the spectrum.

 

[ZeEa5KPul]

I think everybody here kinda felt that.

His maxim was to not make enemies outside, so he can be free securing his power internally. Instead, what has happened was him making a lot of enemies internally, and his move not making him much friends abroad either.

Yet he does nothing but get stronger and stronger and make China stronger and stronger. False flaggers like you must be tearing their hair out. You keep crying, China and Xi keep rising.

 

[Faith_Lock]

Yet he does nothing but get stronger and stronger and make China stronger and stronger. False flaggers like you must be tearing their hair out. You keep crying, China and Xi keep rising.

I would love to see China and Xi keep on rising. What I don't want to see is Xi keeps on rising within China while China falling (by keeps on signing unequal treaties).

I think everybody here kinda felt that.

His stratagem was to not make enemies abroad, so he can be free securing his power at home. Instead, what has happened was him making a lot of enemies internally, and his move not making him much friends abroad either.

Not just a chicken, but chickens, many of them. His issues with CPC's insiders are far from over. An unfinished enemy under your feet, is the most dangerous one.

A giant cohort of 65+ party cadres that had just any alignment with Xi is about to retire, and he will be left alone with the 40-something young, and hungry upcoming cadres, who are quite extreme on both sides of the spectrum.

What China needs is a Putin right now.

Xi did a great job in the epidemic. But China is a meritocracy, every province governors would have done a great job.

A guy like Putin as President who manage the external affair and military while a Prime minister who manage the internal affair would be perfect for China.