Taps Coogan – September 28th, 2020
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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:
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