'semiconductors' in International Economics: IB Economics

Scooped by Graham Watson

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From www.theguardian.com - October 19, 2022 3:13 AM

Graham Watson's insight:

We've just been looking at the US-China trade war, and you might be forgiven for thinking that in the post-Trump era it's over.

But it isn't. Joe Biden has introduced curbs on US companies selling semi-conductors to China - largely as a way of trying to protect US economic supremacy. The article is quick to highlight that whilst China consumes three quarters of the world's semi-conductors, it only produces 15% of them, and those it does make are of inferior quality.

However, the flip side is that China is likely to retaliate with adverse implications for global trade, and the continued dispute creates greater uncertainty and that too is bad for the global economy.

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