Taps Coogan – September 28th, 2020

Enjoy The Sounding Line? Click here to subscribe.

David Roche, Independent Strategy President and longtime China observer, recently spoke with CNBC to warn that the recent US decision to apply export restrictions to Chinese semi-conductor giant SMIC is an “extremely significant” escalation in what he describes as a ‘Cold-War.’ Despite comparatively little press coverage of the SMIC export restrictions, Mr. Roche notes that it is far more likely to garner a Chinese counter-action than the US restrictions on Huawei and TikTok because it strikes at the foundation of China’s high tech aspirations: the ability to manufacture high-end chips integrated into the global supply chain.

He also expresses concern about Chinese demand growth and the labor market.

Watch the full discussion below:

Would you like to be notified when we publish a new article on The Sounding Line? Click here to subscribe for free.