World

The United States has teamed up with allies to fight China in the most important industry Russian news EN

CNBC: U.S. starts building alliances to fight China over chips

USA recently joined forces with major allies, including Japan and South Koreafor the fight against China in the critical microchip industry, writes CNBC.

Washington’s main goal is to secure its own supply chains, which are vital for manufacturers of electronics, household appliances, cars and many other categories of goods, and also to prevent the possible dominance of Chinese companies in the foreseeable future.

Companies from the US and East Asian countries create specialized alliances, however, experts say, contradictions are already arising between them. Complicating the situation is too high a concentration of production in a small number of countries. Currently, about 80 percent of all capacities are concentrated in South Korea and Taiwan, and the Taiwanese TSMC is considered the leading player in the world market.

According to Pranaya Kotastane of the Indian Institute of Takshashila, the concentration of the main production centers in a small number of countries is fraught with geopolitical risks, in addition to economic and logistical inconveniences.

Leave a Reply

Your email address will not be published.

Back to top button