Shares in Tokyo Electron fell 7.5%, leading a drop in Japan’s Nikkei 225 Stock Average. Fellow chip gear providers including Lasertec Corp. and Screen Holdings Co. also ranked among the market’s biggest decliners. ASML’s stock was similarly down 9.9% in Amsterdam, even as the company reported better-than-expected second-quarter bookings. Shares of Applied Materials Inc., Lam Research Corp. and KLA Corp. — the three biggest American makers of chip equipment — also tumbled on Wednesday. Applied Materials, the largest of the three, fell as much as 7.8% in its worst intraday decline since November.
I don’t think the drop in share prices matter that much. The dips from previous announcements of sanctions went away quickly, because the chip industry overall is in a very strong position globally.
The administration is in a tenuous position. US companies feel that restrictions on exports to China have unfairly punished them and are pushing for changes. Allies, meanwhile, see little reason to alter their policies when the US presidential election is just a few months away.
This is really the crux of the issue, and not so much geopolitics. Some of the US companies that pushed for the sanctions (like Micron tech) have themselves suffered from Chinese retaliation (Micron tech “mysteriously” failed its cybersecurity review in China, and China has clamped down on germanium exports).
The American chip-equipment makers — Applied Materials, Lam and KLA — have been pressing their case in a series of recent meetings with US officials, according to people familiar with the situation. They have argued that current trade policies are backfiring, damaging American semiconductor companies while failing to halt Chinese progress as much as the US government hoped. But the companies don’t want the administration to use FDPR. They fear it will provoke Japan and the Netherlands to become defiant and stop cooperating.
Amazing to see western corporate interests just openly dictating government policy. The rest of the article just plainly lays out which company is telling its government to do what. We’ve dropped even the pretenses.
Amazing to see western corporate interests just openly dictating government policy
You mean like the time the CIA couped Guatemala in 1954 for banana companies?
I don’t think their pleas will work. They’re not important or big enough. NVIDIA went begging for the US to let them continue to profit from China and they’re way more important and they said no and the head of sanctions basically directly threatened them saying she’d adjust sanctions daily to prevent them getting around them with new products if necessary. Though financial capital has had and still has some interests in China, industrial capital in the west increasingly doesn’t benefit from continued trade and in fact as much of it is defense adjacent, benefits from fear-mongering, sanctions, and increasing tensions.
I have little doubt the US will continue to press the sanctions button harder and harder on China. They will hurt their own industries but help them briefly with short-term protectionism benefits. In the end though it will force China to develop their own which will hurt the west but that’s deferred pain and they hope to have a better plan or position by then.
Its insane how much our favourite capitalist roader was vindicated holy shit. All that’s left is to press the communism button.
Western leftists criticizing Deng for his shitty chess moves when it turns out he was playing Go the whole time.
I’m not too familiar with Deng. Could you explain more of his geo-politics? Thanks in advance comrade.
Short version: he opened china to investment from western capital. The plan was to use western capital to fund the construction of factories with the condition of technology sharing. Gambit was capitalism would willing sell all of its advantages in order to gain profit. The risk being that capitalists would have sway in China (and leftists constantly purity testing China).
for more check out https://redsails.org/china-has-billionaires/ it’s not specifically about Dengism but should give you more than enough context to understand it
This has a lot of introductory info on SWCC (Socialism With Chinese Characteristics)
This is pry the best introductory article on SWCC:
The long game and it’s contradictions.
and a good introduction to Deng is his interview with Oriana Fallaci.
More of his writings are on https://dengxiaopingworks.wordpress.com/
I’m not sure I would call him vindicated. He definitely bought into some of the free market economics of the 1980s which could have ended really badly. Reform and opening up only really succeeded because the Chinese government was willing to slow the pace of reform when Deng was pushing them to move faster. He also had China invade Vietnam which was a huge L.
True, the Sino Vietnamese war was an L, as expected of post Sino Soviet split Chinese foreign policy. And yeah I had the same concerns over liberalizing too fast, esp in the Jiang and Hu era, but it seems like that’s been reigned in too. Trust the process I guess.
