China wants foreign investment to help build microchips

It currently buys 59 per cent of the world's chips

China's trying to become a world-leader in the production of 'semiconductors', they're a kind of microchip and are pretty crucial to its tech industry. It needs help raising the money to do that.

What it means: This story kind of shows how reliant countries are on each other when it comes to developing different industries. China already has a big tech industry, but it until now was importing a lot of the chips it needed from overseas. In fact, China currently buys 59 per cent of all the chips produced in the world.

Now, you might remember that China and the US have been talking tough in a 'trade war'. Semiconductors are part of that, and the US is keen to stop China totally dominating the development of next-generation technologies (that's things like AI).

China is now intent on decreasing its reliance on overseas products. But to do that, it needs overseas money. It's trying to   more in its domestic industry, and has set up a fund – it's called the China Integrated Circuit Industry Investment Fund Co. – to make sure there's enough money. For China, even if foreign investors are helping fund it, it's still hugely beneficial that it's building its own stuff, rather than buying from overseas.

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  • RW

    Your right to a degree. You mentioned “the wandering Jew”.

    I elaborate that the Jewish people, historically have tended to migrate almost exclusively to locations that are economically and culturally vibrant already. I would speculate that Jews have thrived in these places and have often improved the bounds of their economies and knowledge base.

    You can also ask; how many massive entertainment conglomerates, Nobel winners or billionaires has Isreal developed? If Jews are so capable, why isn’t Tel Aviv the Rome of our time?

    Jews are successful because they value education, maintain a strong social cohesive, they actively monitor and have a good sense for Zeitgeist wherever they are and they carefully choose the places they settle and congregate themselves heavily in these choice locations.

    But most importantly (haulocaust increased the importance of this aspect), they actually designed their culture for success. They not only attend Harvard, they use what they learned to better the group as a whole. With as much, they studied intricate networking systems, adapted to it and in many cases improved upon them. (See how Japan acquired Aegis warships and made them better).

    Of course there is nothing wrong with any of this. It’s when you elaborately gain disproportionate power in any society where you would stand out, you must take care when attempting to make a society better (Civil Rights movement) and rewriting that society all together (mass immigration). Ask blacks in China, Mexico, Philippines or India how much opportunity they have? Go to businesses owned by their American diaspora and see how many blacks they hire. Go to Silicon Valley and see how many East or South Asian tech workers wish they could work with more black people. California might work as a state, but as a nation, I think your rolling the nuclear dice here. I hope we can succeed as a tolerant pluralistic superpower but at this stage in human societal development, it’s a pipe dream.

    And if Jews really are the icon for success, they would see that fundamental human successes happen over generations. Just look at the rest of the planet? Are we ready?