Post #1252 by Timer321 on the Macroeconomic Trends and Risks board

Personal Finance Topics / Macroeconomic Trends and Risks ❤

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Forget about the legal basis, the policy could be counterproductive. This policy is likely to accelerate investment in chips within China, creating more competition and, in the long term, creating an environment for Chinese innovation that wouldn't be there if they could simply continue to import chips.

That could happen, but it is capital-intensive, and China probably can not go profitably. China is in an economic wilderness, going towards supply-side econ, but the EU is moving into supply-side econ faster and becoming the next tech hub. The EU has a lot more AI data centers than anywhere else. Then the US, and then China.

The issue with AI chips is uselessness. Making the chips and selling them is very profitable. But using them is not profitable. AI is not all it's cracked up to be.

The tax on exports is unconstitutional. That battle will tear down this tax. Words are cheap, and we are hearing plenty of them.

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