American media: Biden's computer chip war hurts Americans

The US "National Interest" website on June 12, the original title: Biden's shortage of American microelectronics products against China's computer chip war not only hinders US economic growth, but also leads to price increases. The inflation rate in the United States has reached the highest value in 40 years. U.S. Treasury Secretary Yellen estimates that "1/3 of the US inflation comes from new cars and second -hand cars ... this is related to the shortage of semiconductor." The US foreign policy is increasing the chip shortage, thereby promoting inflation.

The Biden government chose to extend and expand Trump's trade war in China to impose sanctions on more than 20 large chip companies in China. This reduces China's semiconductor output: China's share in the global semiconductor market in 2021 declined in the second century.

Semiconductor shortage has always been one of the core drivers for inflation in the United States. According to the analysis of the more than 200 manufacturing sectors of the United States by the San Louis Federal Reserve Bank, the price of manufacturing dependence on chips is 6 percentage points higher than other manufacturing sectors. The shortage of chips also led to a decrease of 7 million vehicles in 2021, which led to an increase of 8%of the price of new American cars and 40%of the price of used cars.

The restrictions on Chinese chip manufacturers in the United States have seriously intensified the shortage of domestic chip in the United States. Biden strengthened the restrictions on Chinese manufacturers during the Trump period, which led to half a mining chip imported from China. Biden also prohibits many Chinese companies from using American equipment to produce chips, preventing companies with contracts with American entities from cooperating with Chinese companies, and prohibiting the United States from investing in Chinese -funded enterprises including SMIC, including China ’s largest chip manufacturer.

The hostility of the United States for Chinese semiconductor companies has caused panic in all walks of life, which has led the enterprise to place orders to increase inventory, thereby further intensifying chip shortages.

For the United States, a more effective way is to cancel some sanctions on Chinese chip manufacturers to reduce inflation. Even if the establishment of a new factory in the United States is not helpful to alleviate the current shortage, because the new factory takes 3 years to put into operation.

U.S. decision makers need to adapt to such a reality, that is, China is now the second largest economy in the world, and an attempt to hurt Chinese companies will also hurt the United States itself. Adopting a less confrontational attitude towards Chinese chip manufacturers will not only reduce (US) inflation, but also help prevent economic war between the United States and China from being upgraded into a spiral. (Author Kevin Claiman, translated by Wang Huicong)

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