China Readying $143 Billion Package For Its Chip Firms In Face of US Curbs (reuters.com) 26
China is working on a more than 1 trillion yuan ($143 billion) support package for its semiconductor industry, three sources said, in a major step towards self sufficiency in chips and to counter U.S. moves aimed at slowing its technological advances. Reuters reports: Beijing plans to roll out what will be one of its biggest fiscal incentive packages over five years, mainly as subsidies and tax credits to bolster semiconductor production and research activities at home, said the sources. It signals, as analysts have expected, a more direct approach by China in shaping the future of an industry which has become a geopolitical hot button due to soaring demand for chips and which Beijing regards as a cornerstone of its technological might.
It will also likely further raise concerns in the United States and its allies about China's competition in the semiconductor industry, say analysts. Some U.S. lawmakers are already worried about China's chip production capacity build up. The plan could be implemented as soon as the first quarter of next year [...]. The majority of the financial assistance would be used to subsidize the purchases of domestic semiconductor equipment by Chinese firms, mainly semiconductor fabrication plants, or fabs, they said. Such companies would be entitled to a 20% subsidy on the cost of purchases [...]. In August, President Joe Biden signed the Chips and Science Act, which includes more than $52 billion for U.S. companies producing computer chips, as well as billions more in tax credits to encourage investment in semiconductor manufacturing.
Shortly thereafter, the U.S. passed a sweeping set of regulations that aim to choke off China's access to advanced chips, the tools necessary to manufacture years-old designs, and the service and support mechanisms needed to keep chip fabrication systems running smoothly.
It will also likely further raise concerns in the United States and its allies about China's competition in the semiconductor industry, say analysts. Some U.S. lawmakers are already worried about China's chip production capacity build up. The plan could be implemented as soon as the first quarter of next year [...]. The majority of the financial assistance would be used to subsidize the purchases of domestic semiconductor equipment by Chinese firms, mainly semiconductor fabrication plants, or fabs, they said. Such companies would be entitled to a 20% subsidy on the cost of purchases [...]. In August, President Joe Biden signed the Chips and Science Act, which includes more than $52 billion for U.S. companies producing computer chips, as well as billions more in tax credits to encourage investment in semiconductor manufacturing.
Shortly thereafter, the U.S. passed a sweeping set of regulations that aim to choke off China's access to advanced chips, the tools necessary to manufacture years-old designs, and the service and support mechanisms needed to keep chip fabrication systems running smoothly.
Re: (Score:1)
Central planning of everything still fails horribly, regardless of how well meaning you are, because you just can't actually know the needs of hundreds of millions of people.
The only way i see communism having a chance to work is if the communes are small and pretty independent from the government instead of having some sort of super controlling bloated machine that is mostly blind to the individual needs.
And this kind, you start by actually making a commune within the current system, thriving, multiplying
Re: (Score:2)
The problem is informed voting because what works for a 100 person village doesn't work for a nation of 1.4 billion. Perhaps at such a large scale the way to do it is by having a delegate structure where voting is a free-for-all at the lowest suburban level, then a subset of those millions are chosen by their peers for promotion up to the next level, and up and up until reaching the national level. Think of it as a filter where at every level the delegates might well personally know the true character of
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I mean, i imagine the point of the communes is to break the community into several 100 person villages, at least it's how the commune like societies that thrived work.
Re: It won't really matter (Score:4, Interesting)
The CPC (the acronym isn't "CCP", instead think "Communist Party: China branch") does dominate mainland Chinese politics, but there are nevertheless several political parties active in mainland China and even indy members. That's not including the local parties in Hong Kong and Macau which use the primitive US-style electoral college system as an intermediary between the voters and the politicians when choosing their delegates to the National Congress.
Over the last 100 years, the mainland micro-parties have evolved away from seeking a broad electoral base, to being more specialised (think sectional parties like the Greens). Some focus on developing educational policy, some on construction policy, some on cultural policy, some on tech policy and one even representing Chinese nationals living overseas. The CPC is the only party with a non-sectoral base.
The smaller parties, the delegates and the independents don't act as an opposition "enemy" as is the style in the combative liberal democracies. Instead, they're more consultative because (a) even combined they don't reach more that 1/3 of the CPC's numbers; and (b) they hold the sole power to introduce legislation that'll then need support of the CPC when it comes time to vote for the legislation.
The mainland and Taiwan parties all arose during the civil war so they're all ~100 years old. The Hong Kong and Macau parties are newer and were established as a going away gift when the UK and Portuguese leases expired - apparently neither the UK or Portugal felt the need to establish political movements while they were in charge, and, oddly enough, the western world was entirely happy with the absence of democratic institutions in Macau and Hong Kong until about a day after the islands were handed back to China. Funny that.
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The CPC (the acronym isn't "CCP", instead think "Communist Party: China branch")
Both CPC and CCP are correct, but CCP seems to be the more accepted acronym in English.
https://en.wikipedia.org/wiki/Chinese_Communist_Party [wikipedia.org]
https://www.britannica.com/topic/Chinese-Communist-Party [britannica.com]
https://www.cfr.org/backgrounder/chinese-communist-party [cfr.org]
https://www.csis.org/programs/freeman-chair-china-studies/ccp-inc [csis.org]
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Correct in the same way that Democratic People's Republic of Korea is.
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It's already been abandoned.
There is some speculation that it's actually a clever move by the CCP, because if there are a lot of deaths now it just discourages future protests and makes people think they should listen to Xi. If it doesn't, see they aren't authoritarian, they do listen!
Double standards (Score:3)
Ours are "encouraging investment in semiconductor manufacturing" by "US companies".
Yours are "subsidies" that "raise concerns" about "competition".
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It's not just encouragement, it's laws preventing the import/export of Chinese technology, and requiring it to be ripped out of production and replaced with American gear.
Not just in the US, other allied countries are being encouraged to do the same.
That's a massive subsidy.
Re: (Score:1)
It's not just encouragement, it's laws preventing the import/export of Chinese technology, and requiring it to be ripped out of production and replaced with American gear.
Not just in the US, other allied countries are being encouraged to do the same.
That's a massive subsidy.
Inflation Reduction Act of 2022 [$738b] + CHIPS and Science Act [$280b] (names means nothing) > China "support package" [ $143b]
Re:Double standards (Score:4, Insightful)
Re: (Score:1, Flamebait)
The sinophobic trolls have mod points I see.
Re: (Score:3)
Re:Double standards (Score:4, Insightful)
Just try to imagine what they say about the US in China. An unstable, failing democracy that was nearly overthrown by an armed insurrection, that incarcerates more people than almost any other nation and forces them to do slave labour, and which explicitly plans to destroy the Chinese economy, the thing that has brought hundreds of millions out of poverty. The US blames China for everything, claims that COVID was deliberate, and regularly invades other countries on false accusations.
All those things have an element of truth to them, but are of course not the whole picture. So when I hear people like you reel off lists of all the reasons to hate China and wage an economic war against it, I am unimpressed.
Re: (Score:1)
Wonderful! (Score:2)
Smart move if done right and this is why: (Score:2)
"Free market" is a contradiction in terms beloved by contrarian plebs.
Partnerships done right (like South Carolina catering to German automotive investment) can bring jobs of decent quality while increasing the tax base but only inept/corrupt mistakes make national news.
Like politics business is war and it's a matter of civic duty for government and business to work together notwithstanding fuckups. Humans of normal intelligence are unfit to make complex choices because they through no fault of their own ar
Job one will be (Score:1)
Re: (Score:2, Informative)
Western IP theft is also known as Chinese innovation.
What to worry? (Score:2)
It will also likely further raise concerns in the United States and its allies about China's competition in the semiconductor industry, say analysts.
According common knowledge about China, based on what we see in many posts here,
- China only copy and steal, they won't be able to actually develop anything
- China GDP figures were fake and had been for the last 30-40 years, the true figure is only a faction what they claimed
- Chinese are incapable of innovation and creating anything new
- China economy will collapse very soon, if not due to Evergande, it would due to economy being choked by their zero-covid policy
- China's zero-covid policy were ineffective
How long before (Score:2)
Western semiconductor and supplier companies lobby for a bigger subsidy for "national security reasons" so that they will not be overtaken by the Chinese?
After all US is only giving away about 50B to it's companies compared to almost 150B by China. And EU has to also up it's game and prepare at least a similar amount to match China and the US! /S