this post was submitted on 04 Dec 2023
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[–] TimeSquirrel@kbin.social 10 points 11 months ago (1 children)

But even if the sanctions work, what are we trying to block?

The US is trying to kneecap China before they become a superpower on par with themselves.

[–] ShittyBeatlesFCPres@lemmy.world -1 points 11 months ago

I imagine this will only undermine that goal. If this trade war is about stupid “tough on China”political posturing, it’s obviously going to backfire. If there really is some amazing national defense reason to limit chip exports, China will obviously respond by investing heavily in R&D and domestic production capacity. In ten years, we’ll probably be doing protectionism the other way to protect Nvidia from new Chinese competitors.

From an economics standpoint, it’s backwards. If anything, China should be the one limiting chip imports to protect their upstart chip makers and give them space to catch up. We’re just doing an “infant industry” strategy for them. And all for vague “national security” reasons.