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China's Subsidies Are Destroying America

December 22, 2021

Chinese semiconductor subsidies are allowing them to corner the market at our expense.

Here’s an exceedingly stupid take on Communist China using subsidies to eviscerate the US economy.

China’s Export Subsidies Are a Gift:

“(We should be) making a beeline to the nearest Hallmark store to buy thank you cards to send to the Chinese government for the subsidies it provides to Chinese exporters….”

This was published just this past September.  After almost two years of the global lockdown - and more than six months of the all-encompassing US supply chain shortage - caused by just one China (and US)-subsidized Chinese export - the Coronavirus.

Importing Government Subsidies: The Worst of Fake ‘Free Trade’

To witness all the damage our lack of domestic production has done - and the China Virus has exposed and exacerbated - and then say we should be thanking China for doing it all to us?  Is a whole new level of idiocy. 

But of course, Communist China money has purchased a LOT of US idiocy over the last several decades.

How America's Biggest Companies Made China Great Again

Consultant Helps U.S. Companies Move to China

Leftist Big Tech: ‘Communist China? Heck Yes. The US Military? Heck No.’

The US Sell-Out Continues: Big Tech's Latest Capitulations to Communist China

US Companies Are Sticking with China Despite Rising Tensions and Pressure from Trump

Because President Donald Trump wasn’t owned by China.  But just about everyone else in DC is - and has been.

Corporate America Fights Uphill Battle Against Anti-China Push:

“Companies are teaming up with untraditional allies out of fear that the fall legislative session will lead to restrictive laws.”

Fear not, US sell-outs: The rumors of this “uphill battle” are highly exaggerated. 

Biden Administration Pushed Congress to Water Down Anti-China Bill

Senate Dems Blocking Measure To Prohibit Imports Made With Chinese Slave Labor

Why are all of these US officials acting like Chinese officials?  Money.  Coin.  Dollar bills, y’all.

Chinese Energy Firm Chairman Gifted Hunter Biden an $80,000 Diamond After He Agreed to Help Expand the Business by Making ‘Introductions’ for $10 Million a Year

Quid…pro quo:

Hunter Biden Firm Helped Chinese Company Secure $3.8 Billion Cobalt Mines

China’s money - and its influence - is everywhere. 

Dem Big Wigs Including Harris, Cuomo, Schumer Listed as ‘Domestic Contacts’ in Biden Chinese Business Email

Like with Hunter Biden, McConnell and Pelosi Are Beholden to China Through Family Business Deals

Sen. Feinstein's Husband Had Ties to China as She Pushed Trade

Schiff Refuses to Disclose Why He Withheld Details of Swalwell’s Relationship with a Chinese Spy from Intel Committee

Chinese Illegally Donated to Bill Clinton Reelection

And the companies China didn’t suck out of America?  They’re buying them right here in the US.  Without any opposition from the officials we elect - but they own.

Why Are We Letting China Buy American Companies?

The Biggest American Companies Now Owned by the Chinese

Ten Iconic American Companies Owned by Chinese Investors

China Is Buying Up American Farms

How China Acquires ‘The Crown Jewels’ of U.S. Technology

Ah yes: The ever-increasingly dominant Digital Economy. 

As we’ve seen, US Big Tech companies refuse to work with our government - but are more than happy to work with China’s Communist government.  But it goes way beyond just these “edge” sell-outs. 

The core businesses that make the Digital Economy possible?  Are one way or another almost entirely dominated by China.

Rare Earth Metals Are Critical to Tech Sector and China Dominates Market

China Dominates Global Coal Production

How China Is Dominating Artificial Intelligence

Three Reasons Why China Is the Global Drones Leader

But even before China can dominate all of these portions of the Digital Economy?  They must dominate semiconductor production.  Semiconductor “chips” are the digital brains behind everything technological.  So of course China dominates chip production too.

China Semiconductor Imports Surge to All-Time High Amid Global Chip Shortage

Modern Infrastructure Problem: A Lack of Domestic Semiconductor Production

Why Fewer Chips Say ‘Made in the U.S.A.’:

“In 1990, the U.S. and Europe produced more than three-quarters of the world’s semiconductors. Now, they produce less than a quarter. Japan, South Korea, Taiwan and China have risen to squeeze out the U.S. and Europe. And China is on pace to become the world’s largest chip producer by 2030.”

Oh: And China is buying out its Asian competitors.

China Stockpiles Chips, Chip-Making Machines to Resist U.S.:

“Chinese businesses bought almost $32 billion of equipment used to produce computer chips from Japan, South Korea, Taiwan and elsewhere, a 20% jump from 2019, a Bloomberg analysis of official trade data shows.

“And with companies like Huawei Technologies Co. stockpiling supplies ahead of U.S. sanctions, imports of computer chips climbed to almost $380 billion -- making up about 18% of all of China’s imports for the year.”

China dominates semiconductors - the same way they dominate everything else. 

Eyeing US, China Wields $33 Billion in Subsidies to Bolster Chips

And what are US companies doing about all of this?

U.S. Companies Aid China’s Bid for Chip Dominance Despite Security Concerns:

“Silicon Valley venture-capital firms and chip-industry giants are ramping up deals in China’s semiconductor industry, alarming U.S. officials.”

Helpful.

The thing is, there remains a political advantage to domestic chip production.  It looks good to look like you’re actually for the country you purportedly represent.  And it means lots of really good jobs - anywhere chip manufacture occurs. 

So with Democrats staring down the barrel of what appears to be a very unpleasant 2022 election, perhaps the following will actually come to fruition. 

Can Congress' $52 Billion Chip Bill Overcome the Silicon Shortage?:

“Between shuttered auto plants, skyrocketing component pricing, and ever-growing lead times, the ongoing semiconductor shortage is hard to miss. And while the Biden Administration’s massive infrastructure bill has garnered the lion’s share of media attention, Congress hasn’t forgotten about the chip shortage.

“Introduced early this summer, the $52 billion CHIPs for America Act aims to bolster U.S. semiconductor supply chains and reduce reliance on Asia-Pacific foundry operators like Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung Electronics. And unlike the hulking infrastructure bill, the CHIPs for America Act has broad bipartisan support in the senate.”

Except….

Beating Dead Horses: Forget 'Build Back Better' and Get Bipartisan Already

Congress has wasted many months myopically fixated on this monstrosity.  Which has now created a year-end legislative log jam.  Which has led to this….

Congress’ Chip-Funding Pause Raises Alarms:

“Despite bipartisan support in the Senate, a plea by the Commerce Secretary and growing desperation from industry officials, Congress still can't get a key bill that funds the U.S. chip business over the finish line.”

The CHIPS bill should be treated as “must-pass” legislation.

Because it is must-pass legislation.

[FIRST PUBLISHED AT: Substack].

PHOTO: Chinese Yuan. PHOTO BY: Mussi Katz, CC0 1.0 Universal (CC0 1.0) Public Domain Dedication.

Article Tags
Government & Politics
Author
Seton Motley is the president of Less Government, a DC-based non-profit organization dedicated to reducing the power of government and protecting the First Amendment from governmental assault.
smotley@lessgovernment.org @SetonMotley

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