SMIC is another Chinese company in the North American spotlight
That there is a technological struggle between the big countries is something everyone knows, and each country tries to take advantage of the situation in the best possible way. Those who are “on top” like the USA put all kinds of impediments to give up their technological position, and those who are further “down” like China try by all means to reduce the technological difference by investing and buying technology wherever it is, which usually is in the USA.
And from there comes all the news we see in the press of the bans imposed on Huawei, later on Tik Tok, and now on SMIC, which is the largest Chinese microprocessor company.
SMIC has grown a lot in recent times and the Chinese intend to be more or less independent within the next 30 years.
Today, Chinese companies must buy components in the West, and especially in the USA, to manufacture their products, but their leaders have the objective of not depending on “external” suppliers in the future.
And that is not liked by the American leaders, because they intend to stay above everyone else. And that’s what the “war” we read about in the news is all about.
The rest are “excuses” to make the decisions that suit them in order to maintain their privileged situation.
The latest threat has been directed at SMIC in the sense of prohibiting its access to USA technology to continue working. Without that technology their future may be in question.
With the threat of a veto to SMIC, it puts the latter in a very difficult situation, since the microelectronics world is dominated by the USA, and if the USA do not provide it with the machines and other tools to grow and continue working, its future operations may find serious risks.
From all this, some conclusion can be drawn for Europe. Well, we also depend on the USA at a technological level and that does not look like it will change in the future.
Seeing what happens to others, perhaps Europe should consider being a little more independent of “external” technologies.
Those technologies are what create high-level, well-paid jobs. Ultimately they are those that create wealth in the social environment.
Will we do it ?