201–210 of 668 posts
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Wrong. We don’t need to build refining capacity. We just need to remind China that who’s the big dog, which we seem to be doing. They’ll fall in line quickly enough.
Aye yea, the war will be over by Christmas! I've heard this one before.
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Everybody is a fan of free access and capital markets, until a foreign entity purchases something of importance. It’s a continuation of recent trends and closing markets. Nobody in their sane mind would allow a company like ASML or the likes to be purchased by competitors. But the irony is that when a non-European entity were to do something like this, e.g. nationalize their oil or mining etc. industry or a firm, the…
USA is nationalizng Intel and under this administration more of the commie shit is coming :)
You can’t socialize losses and privatize gains.
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Dollar value is not the point. For the US MIC this matters a lot. There are not really any ready replacements for some vital weapons components at a time when US weapons stockpiles have been heavily depleted.
So, we’ll pay more and still get them. You think China is the only one that can game the system? Who’s got the money?
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Everybody is a fan of free access and capital markets, until a foreign entity purchases something of importance. It’s a continuation of recent trends and closing markets. Nobody in their sane mind would allow a company like ASML or the likes to be purchased by competitors. But the irony is that when a non-European entity were to do something like this, e.g. nationalize their oil or mining etc. industry or a firm, the…
The Chinese heavily subsidize their companies and have large government bureaus that strategically guide industries over long time frames. For example, the CCP has been on a long, intentional path to destroying all international solar manufacturers via subsidies, dumping, etc. This is not how free markets function.
It stops being free when government attacks economic activity, not when it promotes it.
I don't know if something similar was feared, but I would like to remind people of what happened in 2020 with China and ARM. You don't get into the China market without losing control.
It must have slipped by me at the time - what happened with China and ARM?
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Everybody is a fan of free access and capital markets, until a foreign entity purchases something of importance. It’s a continuation of recent trends and closing markets. Nobody in their sane mind would allow a company like ASML or the likes to be purchased by competitors. But the irony is that when a non-European entity were to do something like this, e.g. nationalize their oil or mining etc. industry or a firm, the…
It's not a "free market" to allow a foreign communist country to own or control your companies or resources, whether strategic or not. The entire arrangement is governed by diplomacy between two states. FWIW, it never has been the case that everyone was a fan of "the world is flat" theory of capital and labor markets.
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And which firms in China are controlled by European entities?
European companies have had massive investments in China for decades now. Many people in the West have no idea what's going on in China. Western brands and investments are all over the place. Half the cars on the streets used to be European or American (and that has only recently changed, due to the rise of EVs). Yet Europeans and Americans often complain, "Why can't Western companies operate in China?" Excuse me?
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That whole REE thing is more of a scare tactic than anything. REEs are really not all that rare, and the current imports of REEs into the US are worth around $200-250M annually. That is millions, not billions. It's actually a laughably small amount. The main reason that it's mostly China producing them may simply be due to the fact that the volumes are so small that building your own industry is not really worth it.
Dollar value is not the point. For the US MIC this matters a lot. There are not really any ready replacements for some vital weapons components at a time when US weapons stockpiles have been heavily depleted.
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Lol, how is this not a free market? Apple subsidizes dozens of organizations internally to advance its strategic interests, what’s the difference?
I'll leave it as an exercise for the reader to spot the difference between Apple and the Chinese government.
Yes, they do favor their own companies and provide subsidies etc. that’s not the problem though, the problem is that they’re undercutting other companies by selling below cost thanks to those subsidies. Otherwise, we would have to call our farming subsidies the same.
I was originally trying to point out that it has always been important to keep your vital industries secure, it was very stupid of Intel and others to transfer so much technology abroad (to anyone) just to increase their margins, I think ASML did the best: You can purchase our machine, but that’s pretty much it.