Sorry for the long post, below. Couldn`t make it shorter.
Japan’s attack on Pearl Harbor was provoked by the US`s economic warfare.
Japan depended on many imports from the US and, starting in 1939, Roosevelt imposed several economic sanctions on Japan.
On July 31, 1940 he embargoed exports of aviation motor fuels and lubricants. On October 16, 1940, he embargoed all exports of scrap iron and steel. On July 26, 1941, Roosevelt froze Japanese assets in the United States. One week later Roosevelt embargoed the export of the remaining grades of oil still flowing to Japan.
The British and the Dutch followed suit, embargoing exports to Japan from their colonies in south east Asia.
Dec 7th 1941 Japan attacked Pearl Harbor.
DOES ANY OF THE ABOVE SOUND SOMEWHAT FAMILIAR??
If China invaded Taiwan and seized TSMC, it would be a much, much more serious event than Japan`s Pearl Harbor attack in 1941. It would put US`s economy on its knees.
No wonder the US is scared shitless!!
The economic warfare against China started with tariffs then IP theft and so on. It is escalating quickly. The most recent episode is blocking the access of China to semiconductors. China imports twice as much in semiconductors than it does in oil.
The US is terrified by the prospect of China crossing the Taiwan strait.
In my previous post, I thought TSMC was under enormous pressure from the US, and most likely it is. HOWEVER... Morris Chang is an old, old fox!!!
He knows the US is kind of desperate because they are just as dependent on TSMC as China is. As a consequence the whole US is kneeling in front of Morris Chang to mitigate that threat.
Right now, Morris Chang is one of the most powerful men in the world.
His declarations, last week, lowballing manufacture in the US, undervalueing American engineers, saying TSMC would produce less cutting edge chips in the US, etc... were Morris Chang`s way of extracting much, much more from the US.
A week later they are now planning SIX multibillion new factories in the US!!!???
Hmmmm….
I am pretty sure the US is now promising him land, building, machinery AND working capital, free of charge, with tax exemptions for many, many years in exchange for his building the six new factories.
Instead of one plant, he is now going to be served on a silver plate, six cutting edge plants.
In 2011 Fiat got 25 percent of Chrysler just by accepting to administer the near bankrupt car manufacturer.
TSMC is much, much more important than salvaging Chrysler.
And I doubt TSMC will put up a single cent towards any of those cutting edge plants. Morris Chang knows the US is kind of desperate. He is playing the Americans like a fiddle.
Tsai Ing-wen is powerless. Morris Chang holds all the cards. I just hope he is wise and capable enough to extract some concessions favoring his business with mainland China.
