Huawei chips

Huawei chips

Huawei (the world's biggest smartphone manufacturer) says it's running out of processor chips for its smartphones, and will soon have to stop producing its own advanced chips, because of the effects of U.S. sanctions. Huawei's Kirin chips are made by contractors that need U.S. manufacturing technology but cannot use it due to the sanctions, so production will end mid-September. AP

 

Ok. I call and raise you...with Oil exports.

https://fortune.com/2020/08/05/us-china-trade-deal-phase-one-energy-imports/

 

WHICH COMPANIES ARE MOST DEPENDENT ON CHINESE SUPPLIES?

Companies such as Raytheon Co, Lockheed Martin Corp and BAE Systems Plc all make sophisticated missiles that use rare earths metals in their guidance systems, and sensors. Lockheed and BAE declined to comment. Raytheon did not respond to a request for comment.

Apple Inc uses rare earth elements in speakers, cameras and the so-called "haptic" engines that make its phones vibrate. The company says the elements are not available from traditional recyclers because they are used in such small amounts they cannot be recovered.

Rare earths are used in rechargeable batteries for electric and hybrid cars, advanced ceramics, computers, DVD players, wind turbines, catalysts in cars and oil refineries, monitors, televisions, lighting, lasers, fiber optics, superconductors and glass polishing.

Several rare earth elements, such as neodymium and dysprosium, are critical to the motors used in electric vehicles.

RARE EARTHS IN MILITARY EQUIPMENT

Some rare earth minerals are essential in military equipment such as jet engines, missile guidance systems, antimissile defense systems, satellites, as well as in lasers.

Lanthanum, for example, is needed to manufacture night vision devices.

 

China only needs to shut down auto parts manufacturing and within 2 months Euro and US manufacturing will come to a halt.

 

That's what Trump is waiting for to bring all of the manufacturing back to USA.

 

How long before lack of parts starts putting many cars off the road ?? Guess your saying 2 months!

And Lorries maybe ??

 

Cannot, he's out in 3 months. Beside, bringing manufacturing back to America is pipe dream if you want to keep American cars in the 20 to 40k range. Parts are made in huge manufacturing plants in China's Northeast were labor is cheap. That's why global manufacturing moved there in the first place.

 

Lowe's and Home Depot. Pretty much everything they sell is made in China.

 

Rear Earth Metal dependency is an old myth. Research.

As for mfg coming or not coming back, it is dependant on the political will upstairs. Change the taxation structure, introduce sensible legal framework for environmental protection, and the robots will start humming anywhere in the US in no time. Anyone wondered why Chinese are in a rush to buy robots themselves? Cost of labor is a temporary factor in a long-term game. Germany can get by quite lovely with the expensive labor...

 

So much politics going on between China and the US right now, it's very difficult to figure out each other's end goal, other than perhaps Trump trying to provoke China into a hot headed response which the Chinese won't bite into. They know time's on their side. Still, fundamental issues remain and Biden, the presumed next president will have a mess on his hands and perhaps a military skirmish over the rocks on the China seas...