Glenn Diesen - Greater Eurasia Podcast Collapse as U.S. Economic War on China Backfires
Sep 21, 2025
Sean Foo, a financial analyst and China expert, dives deep into the complexities of the US-China economic war. He explains how China's strategies safeguard its chip market and boost AI profitability through domestic demand. Foo highlights the unintended consequences of US tariffs, which are harming American jobs and increasing costs. He discusses the challenges the US faces in securing critical minerals and the backlash allies encounter when shifting production. The conversation also touches on the rise of alternative currencies, particularly within BRICS, and warns against EU sanctions on China.
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China's Market Power In The Chip Race
- China holds a decisive advantage via its vast domestic market and manufacturing ecosystem for AI chips.
- Allowing Nvidia unfettered access risks local firms switching to Western chips and losing momentum.
Scale Determines Chip Leadership
- Scaling and large domestic demand are critical to finance advanced chip R&D and sustain competitiveness.
- China may reach a tipping point in 2–5 years where local chips capture accelerating revenue and scale.
Budget For Tariff-Driven Consumer Squeeze
- Expect tariffs to raise input costs and squeeze U.S. consumer demand, hurting domestic manufacturing jobs.
- Prepare for stagflation-style pressure as firms absorb tariffs and reduce hiring or investment.