US trade war with China reaches point of no return

The point of no return has been passed - the American government, literally in a couple of months, created all the conditions to return the United States to the times of the Great Depression. The figures are arranged, the cards are laid out - the US-China trade war is already bearing fruit. There is not even the slightest chance that America's economy will be resurrected.

 

Intel's imminent demise

 

The US government has imposed a ban on the supply of products from Inspur, which is positioned in the production of high-tech servers. Naturally, we are talking about the supply of equipment to the Chinese market. On average, this is 50% of Intel brand revenue.

 

 

It could have been possible to keep the position, providing the American market, but here, too, failure. Industry giant Apple has already officially announced the development of its own ARM processors for personal computers and laptops. That is, you can forget about income (which is about 10% of the total turnover).

 

Intel also received a blow to the liver from its direct competitor in the market - AMD Corporation. The manufacturer of cheap components has launched highly efficient processors and chips for motherboards on the market. Given the minimum price and excellent power ratings, Intel has no chance of standing on its feet. Only pricing policy can save - reducing the cost of all types of products. But this is also impossible, since Intel's entire business is funded by bank loans.

 

US trade war with China will affect Taiwan

 

Chipset makers TSMC and MediaTek are also sounding the alarm. The Americans are threatening Taiwan with sanctions if they decide to extend the contract for the supply of chips to China. It is not yet clear how the case will end. But, if Taiwan follows the lead of the United States, it will lose up to 90% of all its income. And this is imminent bankruptcy. Suffice it to recall the fate of the ZTE corporation, which, falling under the sanctions, literally in 3 months, lost $ 12 billion in revenue and merged from the market.

 

 

Perhaps the Taiwanese government understands the risks and will find some solution to please everyone. So far, in 30 years of American oppression of China, the Taiwanese have managed to stay afloat. East is a delicate matter. People know the value of resources and money. And it pleases.

 

Dragon's tail kick - China is ready to solve its problems on its own

 

China's manufacturing capacity is not as far behind the United States as it seems at first glance. Even if the Chinese do not have modern innovative designs, they know how to make copies. Now the Chinese government is throwing all the money into the economy and technology. Equipment is hastily purchased, and bounty hunters are luring highly qualified specialists from all countries.

 

 

All these actions suggest that in the near future - 6-12 months, China will be able to launch its own production of chips to ensure its own market. And where there are high-tech chips, there are processors for computer technology. If we add affordability, the global IT market is bound to shake. A quarter of the world's population is China. The best friends of the Chinese are Russia, Mongolia and North Korea. There is a sales market - the American economy will fall down and will no longer rise.

 

Long-suffering Huawei

 

Few people have heard of Huawei outside of China. The plant gradually produced modems for the world market and smartphones for the Chinese. A breakthrough in 5G technology has enabled the Huawei brand to provide quality wireless connectivity to the entire world. And then the United States stuck its nose in, accusing the manufacturer of stealing information. And immediately sanctions. Only this policy has played into the hands of the Chinese.

 

 

As a result, all potential opponents of US policy have opted for the Huawei brand. The share of smartphones in the world market, literally in one year, increased from 5 to 30%. Remember there was such a high-tech Lenovo brand? Where is he now? With a market share of 20% for 2018, America's best friend has become obscurity. On the shop windows, instead of Lenovo, new items from Huawei, Honor and Xiaomi flaunt.

 

Even the refusal to support Google services (at the command from above from the government) led the Chinese to launch their own application store. And it will develop rapidly as Huawei has officially announced a total duty-free software developer. For those who don't know, Apple and Google have introduced a 30% digital tax, which we recently discussed. wrote.

 

US trade wars are a very stupid idea

 

American life teaches nothing. Suffice it to recall the ill-fated US sanctions against Russia in 2014. They decided to plunge the Russians into chaos, but the opposite happened. For 3 years, Russia has raised its industry to the level of 1970, providing people with jobs and goods of all categories of necessity. Europe is the loser. Which, due to the shortsightedness of its government, loses billions of Euros annually. And he will lose until he gets rid of the American yoke. The US trade war with China will affect all world powers. The Chinese quickly adapt to the market, and then they will begin to choose - with whom to be friends, and whose economy will plunge into chaos.

 

 

It's a shame that only a dozen people decide the fate of the whole world. Intel makes great, high-performance processors. Google has a great service and technical base. Huawei makes cool smartphones and modems. Italy and Greece have the most delicious olive oil, while Holland has the best cheeses. By conducting fair trade between different countries of the world, it is easy to satisfy demand and develop the economy. It is a pity that our rulers do not understand this.