Skip to comments.Chips Loom as a Target If Trade Dispute Expands
Posted on 04/28/2018 4:40:54 AM PDT by reaganaut1
Rumors out of Washington these days regarding technology boggle the mind, with the unthinkable sounding more and more possible at a time of intense rhetoric: A ban by the Trump administration on all sales of computer chips by U.S. companies to China.
Under legislation known as the International Economic Emergency Powers Act, or IEEPA, instituted during the Iranian hostage crisis, the executive branch can place quotas on U.S. goods, and restrict what can be sold, in order to sanction a target country on national security grounds.
Computer chips are a tremendous area of leverage for the U.S. on the global stage, especially given Chinas poorly developed semiconductor efforts. Chips could be the big stick that Trump reaches for next to punish China.
The prospect of a ban could create some very bad headlines for U.S. chip companies, even if things are settled through negotiations. More importantly, China, already fearful of its reliance on U.S. chips, may redouble its efforts to cultivate a home-grown industry. When I talk to trade experts around D.C., the No. 1used word is unprecedented, says Ed Mills, a Washington-based policy analyst at Raymond James. Mills believes a broad ban is increasingly possible.
What Mills views as unprecedented is the use of IEEPA for trade purposes. The administration has extended the definition of national security to one of economic security, of not letting our technology secrets out, says Mary Lovely, a senior fellow with the Peterson Institute.
Neither the Treasury Department nor the Commerce Department, which often implement trade restrictions, responded to requests for comment on these issues.
The chip industry has had enough unexpected encounters with regulation this year to make a ban on chip sales conceivable.
(Excerpt) Read more at barrons.com ...
Keeping a close hold on advanced technology has *always* been a matter of national security. Furthermore, national security and economic security are very closely entwined.
China has a long history of reverse engineering our technology and stealing intellectual property. Our trade war with them has been going on for decades. These idiots who are busy getting the vapors over the Trump administration efforts to fight back don't seem to realize that the decades of buying cheap knock-offs from China have been damaging our economy. Shuttering manufacturing plants and putting people out of work so that we can buy cheap gadgets made using slave labor does *not* help the country.
Thank God for President Trump.
This is very risky.
Most computers including Apple are built in China.
Most Windows computers are built by the same companies in China and then repackaged with different plastic.
Inte and Apple are not going to like this.
Many of the better motherboards are made in Taiwan.
Taiwan is an excellent choice as well. As is Singapore. Maybe not as cheap as the other places I mentioned, but the compensation in quality can be more than worth the extra labor costs.
We truly have a patriot for a President!
NOT FOR LONG! Ha ha ha ha
Free Traitors are sadden and my hear sings!
Did it ever occur to you Free Traitors that the goal is to make computers in the USA? Get it blood you sucking < expletive deleted >?
You Free Traitors just don't get it? Made in the USA is the goal!!!
As usual, you are wrong.
Computers will be assembled where there is the lowest cost. That place is not in America where we are at full employment excluding druggies and those that can’t be relied on to get to work
The tariff will make the USA the lowest cost place to build! Viva the tariff, Viva Trump, Viva USA!
Computers will be assembled where there is the lowest cost. That place is not in America where we are at full employment excluding druggies and those that cant be relied on to get to work
You can trash your fellow Americans and sound like Hillary all you want. But that is useless, the fact is that the "deplorable" swill you disdain so much is taking over the Re-puke-again Party and DISPLACING the slime ball globalist hacks like you!
Oh yeah I forgot to ask: Where you gonna go?
facts are facts and no amount of fallacious ad hominem attack will change them
The fact is the Republican party is changing to a pro-American worker nationalist party and displacing you globalists politically — and you don’t like it. In the words of the douche bag extraordinaire Karl Bushbot Rove, Where you going to go?
Your premise is wrong.
American trade world wide is going to grow, not cease.
What you think you know is mostly garbage
The R party is changing where you going to go?
You are the one that will need to decide. Your isolationist vision is never going to come about.
Trump is hoping the threat is sufficient to drive change.
If not, then the actual imposition is likely to have the desired effect in short order.
I am today announcing my intent to raise tariffs on as much as $300 million in Japanese exports to the United States. I am taking these actions in response to Japan's inability to enforce our September 1986 agreement on semiconductor trade. Regrettably, Japan has not enforced major provisions of the agreement aimed at preventing dumping of semiconductor chips in third country markets and improving U.S. producers' access to the Japanese market. I am committed to the full enforcement of our trade agreements designed to provide American industry with free and fair trade opportunities.
Remember what happened next? This time is a little different since China is not our friend. The result will be the same though.
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