I wonder if given the COVID and real estate crises, Xi’s government just doesn’t have the financial resources to bail out the chips industry, plus maybe they (correctly?) understand that the likelihood of building an internationally competitive chips industry is poor (given the sanctions) even if they do dump in another $200b?
Also, it seems like China is being less antagonistic towards Taiwan and other countries in the last few days. Together with the lack of chips bailout, maybe it means they’ve realized that it was too early to “go loud” and are pivoting back to a softer, more cooperative strategy.
I wonder if given the COVID and real estate crises, Xi’s government just doesn’t have the financial resources to bail out the chips industry, plus maybe they (correctly?) understand that the likelihood of building an internationally competitive chips industry is poor (given the sanctions) even if they do dump in another $200b?
Also, it seems like China is being less antagonistic towards Taiwan and other countries in the last few days. Together with the lack of chips bailout, maybe it means they’ve realized that it was too early to “go loud” and are pivoting back to a softer, more cooperative strategy.