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How can China retaliate for US's embargo of ZTE

不爱睡觉的猪 2018-05-14 14:03:18 贸易美国中兴
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How can China retaliate for US's embargo of ZTE


ZTE is China's 5G champion and China was positioned to lead international 5G, but with this ban, ZTE looks like it'll be dead in the water. How can China retaliate against this embargo to prevent future displays of force from the US?


Some thoughts:

China owns most of the earth's rare earth metals including lithium (used for batteries), silicon (used for CPUs and microprocessors). If China were to completely buy up the rest of the silicon in one fiscal year, then issue an embargo of silicon against the US for "war crimes against Yemen and Palestine", then the US semiconductor industry would be seriously dead in the water.

I don't think there's a way in hell for Tesla to get into the Chinese market at this point. Perhaps less capable EV manufacturers from other countries could be allowed in, but China should not support the US's EV industry.

Similar to how Apple uses the A10 chip in both its smart phones and computers, Huawei can be given money for R&D to start developing Kirin chips for computers as well as smart phones. Right now, I think it's silly that Huawei is being so myopic with their kirin technology. They could have potentially much larger market share if China were to prevent Intel from selling in China.

TSMC in Taiwan makes all the CPUs for Intel, Apple, Qualcomm, Exynos. If TSMC, sometime in the future, were to be prevented from making CPUS for intel and apple and qualcomm, it would not actually hurt TSMC. Because all lost market share of apple, intel, and qualcomm would be taken up by exynos, and exynos CPUs could still be made by TSMC. Or kirin CPUs would take over the market share, and huawei could expand to fill the void.







[-]killingzooChinese [  ] 14

Impose 1000% environmental impact taxes on some targeted companies.


[-]northstar31453[S] [  ] 11

Tesla can kiss china factory goodbye


[-]AsianZ1 [  ] 15

Remove all trademarks and copyrights given to Trump and seize all Trump related assets in China. They do not need to sanction the entirety of the US to make the US hurt, making Trump hurt will be more than enough for China to get its way. The man child in the white House will throw a hissy fit if he finds out a huge portion of his money has been taken away, and then he will come begging for it back.


[-]hashtagplsTaiwanese 3   1

i was going to suggest US methods of political assassination and death squads but funding domestic companies and eclipsing US global market share is good as well.


[-]northstar31453[S] [  ] 11

Maybe let tesla in, then immediately seizing all their assets on "national security" grounds?

Also, if China overwhelmed Iran, Syria, Palestine, Yemen with military equipment and they blew up Saudi Arabia and Israel, what would happen to the USD?



[-]sanjugo 2   1

For ZTE, target large markets like India, Africa and eastern Europe where the US don't give a shit and Apple don't make economic sense for anyone. Then China should just make their own semiconductors and be done with it. Just as no one can argue with buying foreign-branded-but-made-in-China products, they'll soon learn to accept Chinese branded products. This of course has started anyway with Haier, Xiaomi, Lenovo, Oppo etc. all leading the way.


[-]northstar31453[S] [  ] 11

ZTE can't target any markets since they can't produce anything...


[-]Hund-kex 6   1

US has always prioritized semiconductor exports to China, since their massive companies can easily outcompete smaller Chinese ones like TSMC, tsinghua unigroup and Huawei's own. Giving up that advantage is paramount to digging their own graves, at least within the industry.

A rare minerals ban would wreck the US' high tech industry, but it would seriously hurt China's credibility as an industrial power. Everyone will be prioritizing extraction tech once they see China can suddenly cut them off. Winning the trade war would not be worth giving up market shares in what's essentially the oil industry of the electronic age.

China should provide subsidies for local companies to help them eat up the lost US shares before some other company moves in and eats them.

Right now China sits on three "trade nukes" in the form of rare minerals ban, agriculture import ban and US debt recall. US doesn't have any response that's nearly as strong, short of using Chinese Americans as hostages, which might not work if the CPC doesn't see them as citizens.

China should wait until the opportune moment to drop them where they can force maximum concessions and cause as much chaos as possible. The more the stakes get raised, the more potential gain there is. If China dropped now, US might apologize and retract tariffs and return to Obama admin's status quo, which is not really a win. They need them to go deeper into the rabbit hole.









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