Is This The End for China? Biden Ramps Up Economic War
China's economic development is slowing, its real estate market is imploding, its manufacturing sector has been ravaged by authoritarian covid lockdowns, and the country is facing imminent energy and food shortages. In addition, China is aging faster than any other country on the planet, and its population of 1,4 billion is expected to decrease by half in the next decades due to its old one-child policy.
But things are set to get even worse for China due to a recent trade decision by the Biden Administration.
The Escalating Economic War With China
The United States recently announced that it will prohibit the export of advanced computer chips and semiconductors to China. This is a significant development. These high-end computer chips are necessary components for artificial intelligence, quantum computing, hypersonic weapons, and virtually every other advanced technology that China is attempting to take over from the United States.
Without these powerful computer chips - which are designed and manufactured by the United States and its allies - the Communist-led nation cannot compete with the United States or achieve tech supremacy. China, of course, is incensed by the United States' move to prohibit exports of these chips. Despite considerable effort, China has proven incapable of creating semiconductors of comparable quality to those of US companies - such as Nvidia or Intel - or the Taiwanese Semiconductor Manufacturing Company.
Of course, China will still be a major player in the international arena for the foreseeable future. But, due to the tremendous challenges it faces, we can safely conclude that China is not on the verge of becoming the world's next great superpower. Rather, China is better thought of as a rapidly declining wannabe empire whose greatest years are behind it.
Ashton Cohen is an attorney, investor, writer, and host of Ashton Cohen: The ELECTile Dysfunction Podcast.