The Trade Guys Legacy Chips, Auto Exports, and the Red Sea
Jan 12, 2024
This podcast episode explores China's dominance in the legacy chip and automotive markets, the challenges of dealing with China in terms of industrial policy and trade, the need to address legal and regulatory hurdles in the technology industry, the impact of armed conflict on trade routes in the Middle East, and the discussion around piracy and multinational efforts to protect tankers and containerships.
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Legacy Chip Concerns
- China is flooding the market with legacy chips, mirroring past behavior with steel and aluminum.
- This overproduction, driven by state-allocated credit, leads to dumping and impacts various sectors, including automobiles.
Legacy Chips vs. Leading Edge
- Legacy chip issues are a trade problem, distinct from leading-edge chip export controls.
- Focus on using existing trade laws and promoting domestic innovation ('run faster') rather than overly focusing on individual economies.
Permitting Problems
- Bill Reinsch shares an anecdote about his local pool's construction being delayed by eight weeks due to permitting issues.
- This highlights permitting hurdles American firms face, impacting projects with national security implications.