Alibaba To Set Up New Chip Company Amid Fear of US Tech Dependency (cnn.com)

hackingbear shares a report from CNN: China's biggest tech firm announced Wednesday that the new [semiconductor] business will develop artificial intelligence chips for cloud computing, internet-connected devices and other sectors. Alibaba's chief technology officer, Jeff Zhang, said the e-commerce company's advantages in algorithms and data put it in "a unique position to lead real technology breakthroughs in disruptive areas, such as quantum and chip technology." "The market for chips is controlled by America ... and suddenly if they stop selling, what that means, you understand," Alibaba Executive Chairman Jack Ma told university students in Tokyo in April. "That's why China, Japan and any country -- you need core technologies." Ma's remarks came shortly after the U.S. Commerce Department blocked American companies from selling parts to ZTE, a Chinese tech company that relied on U.S. suppliers, including chipmakers, to manufacture smartphones and telecommunications equipment. Slashdot reader hackingbear adds: "The since-lifted ban woke up China to the (political) risks of dependence on American technologies, just like the U.S. is afraid of dependency on Chinese rare earth products which account for ~80% of world's supplies."

Comments

Ma said several things

[rmdingler]

Paraphrase: "Trade should not be used for war, but should instead foster peace."

This does shed some light on the full ramifications of protectionist trade policy... much like thermonuclear war, there are no winners.

Re:Ma said several things

[TomBauserman]

Agreed and that's why trump's "If I can't win I'm taking my toys and going home" attitude is going to send this whole country down the shitter. He's using trade and economic policies as a way to say HA HA SO THERE! HOW DO YOU LIKE THAT?? HUH HUH! We elected a 3rd grader to be our president.

Re:Ma said several things

[Jane Q. Public]

You're both ignorant of what's going on here.

China, for decades, has been engaging in very severely "protectionist" trade policies, which the prior 2 administrations just bent over for and didn't do a damned thing.

In particular, China engages in "hidden" barriers to trade, rather than tariffs. But they are no less barriers.

For example, China may say there is no tariff on imported steel. But will order the semi-state-controlled automobile manufacturers to use only Chinese steel in their factories.

So even though there is not a "tariff", per se, they still aren't buying American steel.

(That's just an illustration, by the way. I'm not talking about steel in particular. They've done similar things all across their centrally-planned economy.)

Trump realizes that... but you didn't. He's negotiating, using tariffs, to get China to bring down those other trade barriers. In an attempt to ultimately remove trade barriers and move closer to free trade.

Honestly. Learn a little about the subject you are discussing. He may be using tariffs, but only as a lever to eventually remove trade barriers.

It's not possible for Trump to start a "trade war" with China. They've been at trade war with us for decades. You just didn't know it, and past administrations were sitting on their thumbs.

Re:Ma said several things

[AmiMoJo]

Those are called "non-tariff barriers".

China hasn't been having a trade war with the US, that's nonsense. China is/was an emerging economy and had seen how the US fucked with other similar economies in the region, and did what it thought was right. You can argue that it wasn't the right thing (I would) but now China has reached the stage where it is looking to do trade deals that remove such barriers anyway. CSTPP did it, and it's been talking to the EU about it.

Trump blundered in at just the wrong moment, just the time where all the efforts of his predecessors were bearing fruit and trade deals were a possibility.

Re:huh?

[ShanghaiBill]

dont they already have the fabs and plans for everything anyway????

No. The big modern fabs are in Taiwan, not PRC.

Rare Earth Monopoly Nonsense

[DatbeDank]

The rare earth metal monopoly the Chinese have is only predicated on their propensity to rape their environment with horrific processing of said metals.

Before China, the US was the biggest producer. It just so happened a Chinese company bought out the US one thanks to Billy "didn't inhale" Clinton administration's inability to understand long term plans.

The second they decide to screw with sales is the second another producer will come out and usurp them (like the Japanese recently did).

It just means that companies like Apple will have to take a 950% markup over their usual 1000%.

Re:Rare Earth Monopoly Nonsense

[ShanghaiBill]

All it would take is some country in Africa deciding to priortize their infrastructure and education

Can you let us know when that happens?

Extra popcorn, please

[Tablizer]

I enjoy watching this trade war for some twisted reason. It's like a slow-motion showdown at the Not O.K. Corral. I might change my mind when our collective eye gets put out, but for now the show is bigly great.

China is acting really nervous, while Mr. Orange is giddy jabbing sticks into their beehive (and all beehives for that matter).

How many times has this been threatened/Rumored ?

[Crashmarik]

Really nothing like using a threat instead of action. Not even the Russians were silly enough to fall for that, and always made us deploy before they would negotiate a reduction.

In this case I can't even count the number of times China is going to develop it's own OS, it's going to Develop it's own X86 clone. You know what it's true. They will do it as soon as they figure they can steal what they need to make it happen and it's in their interest to do so. If you think otherwise you haven't been paying attention since Nixon opened up China.

Re:huh?

[AlanObject]

dont they already have the fabs and plans for everything anyway????

No. The big modern fabs are in Taiwan, not PRC.

Actually, each of the big fab houses have larger facilities in the mainland as opposed the island. Labor is cheaper there.