The flea war: the invisible war without death…for now – Economic Policy
Sometimes you have to thank heaven for the difficulties you can avoid. But with the war going on in Europe right now, it’s impossible to thank heaven.
As for anxiety, we’re not spoiled until 2022. But as economist Charles Sannat points out, “A war against Russia will be 10% inflation, and a war against China will be 30%.“If we can turn off the thermostats for the war in Ukraine, wear big sweaters and reduce our fuel consumption, what if the island of Taiwan, where the world’s largest semiconductor factory is located, is occupied by the Chinese army. I remind you that without “chips” there is no digital revolution and the economy in general there is no
A note from consultant Deloitte recalls that the auto sector has come to a grinding halt due to a shortage of components. Today, electronics make up about 40% of the cost of a car. Even Dacia, which is not the most advanced model of Renault in terms of technology, cannot do without these components. That is, we are dependent on China. And here the concept of economic war gets its full meaning.
It is obvious that, The US is waging a proxy war against Russia. They also know that they will win and win the largest contracts for the reconstruction of Ukraine, because the US is also the largest military and financial supporter of Ukraine. On the other hand, it would be a mistake for those who think that Taiwan’s defense will be limited to the defense of democratic values and human rights. The US is racing against time to become independent when it comes to chips. The Americans want independence from China, as in energy. China is a systematic competitor for them. Therefore, the United States applied friendly pressure TSMC company, a world leader in semiconductors based in Taiwan, to install two megafactories in the United States. The investment, which will be 12 billion dollars at the beginning, reached 40 billion dollars through the magic wand. Europe, for its part, is unfortunately lagging behind, while at the same time trying to ensure the beginning of sovereignty by 2030.
This flea war, which is basically invisible and now goes on without death, is more important for our future than what is happening right now on our doorstep. Emmanuel Macron knows this well. After his last visit to the United States, he realized that there is no need for an enemy with a trade ally like the United States.
As for anxiety, we’re not spoiled until 2022. But as noted by economist Charles Sannat, “a war against Russia will result in 10% inflation, and a war against China will result in 30% inflation.” If we can turn down the thermostats, wear oversized sweaters, and reduce our fuel consumption for the war in Ukraine, what if the island of Taiwan, home to the world’s largest semiconductor factory, is invaded by the Chinese military? I remind you that without “chips” there is neither a digital revolution nor an economy at all. A note from consultant Deloitte recalls that the auto sector has come to a grinding halt due to a shortage of components. Today, electronics make up about 40% of the cost of a car. Even Dacia, which is not the most advanced model of Renault in terms of technology, cannot do without these components. That is, we are dependent on China. And here the concept of economic war takes its full meaning. It is clear that the USA is waging a proxy war against Russia. They also know that they will win and win the largest contracts for the reconstruction of Ukraine, because the US is also the largest military and financial supporter of Ukraine. On the other hand, it would be a mistake for those who think that Taiwan’s defense will be limited to the defense of democratic values and human rights. The US is racing against time to become independent when it comes to chips. The Americans want independence from China, as in energy. China is a systematic competitor for them. So the United States put friendly pressure on TSMC, the world leader in semiconductors based in Taiwan, to build two megafactories in the United States. The investment, which will be 12 billion dollars at the beginning, reached 40 billion dollars through the magic wand. Europe, for its part, is unfortunately lagging behind, while at the same time trying to ensure the onset of sovereignty by 2030. This largely invisible and now undying flea war is more important to our future. more than what is now opening at our doorstep. Emmanuel Macron knows this well. After his last visit to the United States, he realized that there is no need for an enemy with a trade ally like the United States.
