Thread: When Chokepoints end up choking yourself -- How US tech dispute with China is producing layoffs in the US. ft.com/content/a75de9…
2/The US car sector is facing a major shortage of semi-conductors forcing production delays and furloughs. apnews.com/article/corona…
3/Ironically, these shortages are in part the product of US weaponization of the semi-conductor supply chain with China. reuters.com/article/us-aut…
4/In an effort to limit Chinese advances in semi-conductors the US hit the largest chip maker SMIC with export controls, limiting the ability of third parties to use their chips. news.yahoo.com/china-chip-gia…
5/This took a major producer of semi-conductors basically off line as companies avoided using their product. So supply falls. bbc.com/news/technolog…
6/At the same time, companies start to hoard chips so as to evade US sanctions. Demand rises. bloomberg.com/news/articles/…
7/This supply and demand push amplifies other sector factors like continued demand for autos and rising demand for electronics. reuters.com/article/us-aut…
8/More generally, example of unanticipated consequences of weaponized interdependence. US efforts to blunt Chinese technology generates unemployment in the midwest. For more see @dandrezner, @henryfarrell, and my new edited volume at @BrookingsPress amazon.com/Uses-Abuses-We…
9/All the more reason that we need more research on the national security implications of supply chains to prevent miscalculations. Important to manage vulnerabilities but need to make sure we dont kill patient as we engage in economic surgery. foreignaffairs.com/articles/china…
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