The Biden administration did something really smart. I don’t know exactly who is responsible, but I am grateful. On Sunday, Hot Air posted the story. I need to say up front that this is one of those articles I do not totally understand, but what I read sounds really good.
The article reports:
I am pretty sure that I have never praised the Biden Administration. I mean, why would I?
Well, I may have found a reason, believe it or not. It seems that the Biden Administration has struck a huge blow against the Chinese tech industry, and it wasn’t even by accident. They did something right, and never let it be said that I am more unfair to liberals than my job naturally requires.
…So here we go, and yes, it is painful to praise Biden, even a little bit. Worse, I have to rely on The New York Times for part of the story, completing my humiliation:
This is the important part of the article:
There are two important aspects of the China/Taiwan tension that are both related to technology:
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- China has become a technology superpower due to America’s reliance on its manufacturing prowess. Almost everything we think of as high-tech has a lot of Chinese manufacturing and components in the end product. Those DJI drones doing the heavy lifting in Ukraine? Chinese.
- Taiwan is a much more important technology superpower. Almost every high-end microprocessor (the highest up the value chain) is reliant on Taiwan Semiconductor Manufacturing Company (TSMC) is made by TSMC. They blow everybody else away in making chips, including former leader Intel. Over half of the chips in the products you use are manufactured by TSMC.
China doesn’t only want Taiwan territory; if they ran Taiwan they would control many of the most important parts of the tech industry. They aren’t a design or software powerhouse, but the world would still rely on them for high-tech products. As a matter of fact, one of the reasons China remains hesitant to invade Taiwan is the implied strategy of the Taiwanese government to threaten the destruction of TSMC facilities were they to be invaded. This is the so-called “silicon shield.”
The article concludes:
To the extent that I can, which is not much, I have verified this. And that means that it is of medium reliability. Certainly, ASML leaving is a big blow, and the extent of the Biden Administration sanctions is dramatic, the thread itself is more than plausible.
I admit to being shocked that the Biden Administration has chosen this path. It is bold, aggressive, and likely to hurt China badly both economically and militarily. I would have to assume that they have war-gamed the consequences extensively because such a move would not be taken either lightly or without serious consideration.
In this case, unlike the Russia sanctions, the Administration had plenty of time to evaluate the costs and benefits. Without access to the information and analysis they have, I can’t say with certainty that this was precisely the right policy, but it certainly moves us in the direction of achieving the goal of slowing China’s ability to threaten our interests in the Pacific.
Even a blind squirrel finds a nut occasionally!