Stock market on a freefall: Canada arrest senior executive at Chinese telecoms giant Huawei at the request of the U.S.

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plankton

Woohoo Mullens!!!
Jun 12, 2012
6,946
2,973
Denmark
#2
I specifically bought a Huawei because I wanted to diversify the violation of my privacy. I'm not even joking, because using smartphones the NSA/GCHQ had backdoors in just made the everyone kind of give up on privacy issues. Now there is another serious actor on the stage and the 'muricans are shitting their panties. GOOD! Now we can maybe go back to actually securing people's privacy on electronic or at least not intentionally creating vulnerabilities
 
Jul 23, 2017
295
100
30
#3
I specifically bought a Huawei because I wanted to diversify the violation of my privacy. I'm not even joking, because using smartphones the NSA/GCHQ had backdoors in just made the everyone kind of give up on privacy issues. Now there is another serious actor on the stage and the 'muricans are shitting their panties. GOOD! Now we can maybe go back to actually securing people's privacy on electronic or at least not intentionally creating vulnerabilities
Trump must have mistook China for Zimbabwe. Never thought I'll see the day Washington resorts to this level of thuggery in order order to maintain it's hegemony on the world's economy.
We'll see how China responds in the coming days, perhaps months. One thing for sure, CPC will do everything in their power to prove to their citizens that they're not weak.
 
Jun 4, 2013
4,839
1,637
#5
Trump must have mistook China for Zimbabwe. Never thought I'll see the day Washington resorts to this level of thuggery in order order to maintain it's hegemony on the world's economy.
We'll see how China responds in the coming days, perhaps months. One thing for sure, CPC will do everything in their power to prove to their citizens that they're not weak.
China does no different & is probably worse. They bully and intimidate all the other SE nations seizing lands that aren't theirs and people go missing everyday. Who's more important? the president of interpol? or some rich dadies girl???

I read this as America sending warning shots to Bejing. Now contrast this with the UK. Just today there were several news articles citing british security and telecoms personnel saying the wholesale selling of UK assets to the Chinese has been a massive security blunder. But the UK didn't care then and probably still doesn't now, we're the whore of the world, whoever has the $$$$ gets a ride.

I'm no America fan. I'm no Chinese fan. But I can respect a country that defends it's interests.
 

V-2

[ [ Tech-Noir ] ]
Jan 1, 2017
3,471
5,065
Kármán Line
#7
Trump must have mistook China for Zimbabwe. Never thought I'll see the day Washington resorts to this level of thuggery in order order to maintain it's hegemony on the world's economy.
We'll see how China responds in the coming days, perhaps months. One thing for sure, CPC will do everything in their power to prove to their citizens that they're not weak.
The US is a thug for responding to China's ceaseless engagement in writ large currency manipulation, overbuilding, subsidization, product dumping, lack of reciprocity, forced technology transfers and the state directed intransigent strategy for the outright theft of intellectual property and trade secrets that violate their WTO free trade agreements and undercut US output, competitiveness, employment, investment, research, development, innovation and strategic domestic industries (a few of which America literally brought into existence) invaluable to its sustained economic growth and national security?

Why can't this fucking shithouse country innovate anything themselves?

the DOW is down 77 points right now,at 24,949

kinda not a freefall

interesting news though

Australia has banned this corporation from any 5G involvement or development in its telecom industry, and it was also attempting to hoard trade secrets from an American semiconductor start-up. The founder (CFO's biological daddy) is a former military technologist officer in the People's Liberation Army.

The global sell off the last couple weeks has been pretty brutal, trade war rhetoric and geopolitical sabre rattling hasn't helped. A recession around the corner is a real concern but there's a reason the Fed has been consistently implementing rate hikes directly in the face of Trump and his fucking Twitter tantrums about it.

The "mass layoffs" I saw yesterday simply don't carry the intended weight of the words if the actual data demonstrates continued job market growth. The Swiss investment bank claiming "American companies are starting to shift production overseas" when the data for real manufacturing output, employment and wages show a consistent upward trajectory and net gain? That shit just confuses people, and works like a form of propaganda.

Has this report been released yet today?

https://www.bloomberg.com/news/arti...ket-very-strong-by-many-measures?srnd=premium

The figures are projected to show that U.S. employers added 198,000 jobs to nonfarm payrolls in November. That’s still considered healthy, though it would be less than October’s 250,000. The unemployment rate probably held at 3.7 percent, the lowest since 1969, while wages likely advanced 3.1 percent from a year earlier, matching the fastest pace since 2009.

Powell’s comments are his final scheduled public remarks before the Fed goes into a blackout period before its Dec. 18-19 policy meeting, at which officials are expected to raise interest rates by a quarter percentage point for the fourth time this year.







^^ Remember when old - lol the fuck - young V-2 promised you this would happen a year ago?
 

Dazl1212

100% British Gammon.
May 16, 2013
18,004
4,690
UK
#8
The US is a thug for responding to China's ceaseless engagement in writ large currency manipulation, overbuilding, subsidization, product dumping, lack of reciprocity, forced technology transfers and the state directed intransigent strategy for the outright theft of intellectual property and trade secrets that violate their WTO free trade agreements and undercut US output, competitiveness, employment, investment, research, development, innovation and strategic domestic industries (a few of which America literally brought into existence) invaluable to its sustained economic growth and national security?

Why can't this fucking shithouse country innovate anything themselves?




Australia has banned this corporation from any 5G involvement or development in its telecom industry, and it was also attempting to hoard trade secrets from an American semiconductor start-up. The founder (CFO's biological daddy) is a former military technologist officer in the People's Liberation Army.

The global sell off the last couple weeks has been pretty brutal, trade war rhetoric and geopolitical sabre rattling hasn't helped. A recession around the corner is a real concern but there's a reason the Fed has been consistently implementing rate hikes directly in the face of Trump and his fucking Twitter tantrums about it.

The "mass layoffs" I saw yesterday simply don't carry the intended weight of the words if the actual data demonstrates continued job market growth. The Swiss investment bank claiming "American companies are starting to shift production overseas" when the data for real manufacturing output, employment and wages show a consistent upward trajectory and net gain? That shit just confuses people, and works like a form of propaganda.

Has this report been released yet today?

https://www.bloomberg.com/news/arti...ket-very-strong-by-many-measures?srnd=premium

The figures are projected to show that U.S. employers added 198,000 jobs to nonfarm payrolls in November. That’s still considered healthy, though it would be less than October’s 250,000. The unemployment rate probably held at 3.7 percent, the lowest since 1969, while wages likely advanced 3.1 percent from a year earlier, matching the fastest pace since 2009.

Powell’s comments are his final scheduled public remarks before the Fed goes into a blackout period before its Dec. 18-19 policy meeting, at which officials are expected to raise interest rates by a quarter percentage point for the fourth time this year.







^^ Remember when old - lol the fuck - young V-2 promised you this would happen a year ago?
Did you get my PM?
 
May 17, 2013
49,021
12,074
The House that Peterbilt
#9
The US is a thug for responding to China's ceaseless engagement in writ large currency manipulation, overbuilding, subsidization, product dumping, lack of reciprocity, forced technology transfers and the state directed intransigent strategy for the outright theft of intellectual property and trade secrets that violate their WTO free trade agreements and undercut US output, competitiveness, employment, investment, research, development, innovation and strategic domestic industries (a few of which America literally brought into existence) invaluable to its sustained economic growth and national security?

Why can't this fucking shithouse country innovate anything themselves?




Australia has banned this corporation from any 5G involvement or development in its telecom industry, and it was also attempting to hoard trade secrets from an American semiconductor start-up. The founder (CFO's biological daddy) is a former military technologist officer in the People's Liberation Army.

The global sell off the last couple weeks has been pretty brutal, trade war rhetoric and geopolitical sabre rattling hasn't helped. A recession around the corner is a real concern but there's a reason the Fed has been consistently implementing rate hikes directly in the face of Trump and his fucking Twitter tantrums about it.

The "mass layoffs" I saw yesterday simply don't carry the intended weight of the words if the actual data demonstrates continued job market growth. The Swiss investment bank claiming "American companies are starting to shift production overseas" when the data for real manufacturing output, employment and wages show a consistent upward trajectory and net gain? That shit just confuses people, and works like a form of propaganda.

Has this report been released yet today?

https://www.bloomberg.com/news/arti...ket-very-strong-by-many-measures?srnd=premium

The figures are projected to show that U.S. employers added 198,000 jobs to nonfarm payrolls in November. That’s still considered healthy, though it would be less than October’s 250,000. The unemployment rate probably held at 3.7 percent, the lowest since 1969, while wages likely advanced 3.1 percent from a year earlier, matching the fastest pace since 2009.

Powell’s comments are his final scheduled public remarks before the Fed goes into a blackout period before its Dec. 18-19 policy meeting, at which officials are expected to raise interest rates by a quarter percentage point for the fourth time this year.







^^ Remember when old - lol the fuck - young V-2 promised you this would happen a year ago?
welcome back,stranger................
 
Likes: Mexi-Box
Jun 4, 2013
4,839
1,637
#10
The US is a thug for responding to China's ceaseless engagement in writ large currency manipulation, overbuilding, subsidization, product dumping, lack of reciprocity, forced technology transfers and the state directed intransigent strategy for the outright theft of intellectual property and trade secrets that violate their WTO free trade agreements and undercut US output, competitiveness, employment, investment, research, development, innovation and strategic domestic industries (a few of which America literally brought into existence) invaluable to its sustained economic growth and national security?

Why can't this fucking shithouse country innovate anything themselves?




Australia has banned this corporation from any 5G involvement or development in its telecom industry, and it was also attempting to hoard trade secrets from an American semiconductor start-up. The founder (CFO's biological daddy) is a former military technologist officer in the People's Liberation Army.

The global sell off the last couple weeks has been pretty brutal, trade war rhetoric and geopolitical sabre rattling hasn't helped. A recession around the corner is a real concern but there's a reason the Fed has been consistently implementing rate hikes directly in the face of Trump and his fucking Twitter tantrums about it.

The "mass layoffs" I saw yesterday simply don't carry the intended weight of the words if the actual data demonstrates continued job market growth. The Swiss investment bank claiming "American companies are starting to shift production overseas" when the data for real manufacturing output, employment and wages show a consistent upward trajectory and net gain? That shit just confuses people, and works like a form of propaganda.

Has this report been released yet today?

https://www.bloomberg.com/news/arti...ket-very-strong-by-many-measures?srnd=premium

The figures are projected to show that U.S. employers added 198,000 jobs to nonfarm payrolls in November. That’s still considered healthy, though it would be less than October’s 250,000. The unemployment rate probably held at 3.7 percent, the lowest since 1969, while wages likely advanced 3.1 percent from a year earlier, matching the fastest pace since 2009.

Powell’s comments are his final scheduled public remarks before the Fed goes into a blackout period before its Dec. 18-19 policy meeting, at which officials are expected to raise interest rates by a quarter percentage point for the fourth time this year.







^^ Remember when old - lol the fuck - young V-2 promised you this would happen a year ago?

V2 you post stat after stat from site after site.

But you know what? No matter how many stats you post relative to the cost of living American working class, just like every other working class in the western world, IS GETTING SHIT ON.

I really don't care whether US GDP is rising.

I really don't care whether US productivity is up.

I really don't care is US industry is up.

I really don't care about China productivity slowing in comparison.

I really don't care about US hourly wage growth per hour.



Because relative to the cost of living day after day, week after week, year after year, the western world is regressing as our super rich corporations and money-elite suckup every cent. So I don't care about how we compare to any country overall. I care about living standards for Average Joe. if you can show me a statistic that shows by say 2030 this bullshit will be a distant memory I'll listen.
 

plankton

Woohoo Mullens!!!
Jun 12, 2012
6,946
2,973
Denmark
#11
So it's something to do with violating the Iran sanctions then?
Yes because 'muricans don't trust their government to keep tabs on their firearms but a Chinese company selling routers and cellphones to Iranians is so dangerous that people need to be arrested abroad and stand trial in America :wall
 
May 16, 2013
3,602
265
105
Finland
#12
I specifically bought a Huawei because I wanted to diversify the violation of my privacy. I'm not even joking, because using smartphones the NSA/GCHQ had backdoors in just made the everyone kind of give up on privacy issues. Now there is another serious actor on the stage and the 'muricans are shitting their panties. GOOD! Now we can maybe go back to actually securing people's privacy on electronic or at least not intentionally creating vulnerabilities
Does NSA have backdoor to iphones?

I have Android phone and i'm pretty sure that every file i've had in my phone and every text messsage or phone call are in some NSA server somewhere.
 

Deebo

"Messkin" Deebo
Jun 5, 2013
12,574
7,888
Show dem balls bro
#13
Yes because 'muricans don't trust their government to keep tabs on their firearms but a Chinese company selling routers and cellphones to Iranians is so dangerous that people need to be arrested abroad and stand trial in America :wall

It's true. I'm glad you put that into perspective.

Remember kids, guns did not drop the atom bombs on Hiroshima and Nagasaki, a telephone call from one man did.
 
Jun 4, 2013
4,839
1,637
#14
Does NSA have backdoor to iphones?

I have Android phone and i'm pretty sure that every file i've had in my phone and every text message or phone call are in some NSA server somewhere.
I never understood the paranoia behind this tbh. I mean my grandad used to work for BT and he'd tell me stories of how he'd sit in the exchange with the operators listening to people's conversations. Lunchtimes they'd tap into the sex lines.

And Jay can read every single PM you send. But I doubt he'd have the time to read it. Let alone 1 billion of them. People get flagged up and focused on, but 99.99% get ignored, even those with copyrighted movies etc. Because we all know the government spies on us but we all like to pretend we don't know that the government knows it can spy on us and the government's know that if they publicly show they know what we already know then we'd all be super pissed off.........you know? :)
 

plankton

Woohoo Mullens!!!
Jun 12, 2012
6,946
2,973
Denmark
#15
Does NSA have backdoor to iphones?

I have Android phone and i'm pretty sure that every file i've had in my phone and every text messsage or phone call are in some NSA server somewhere.
And that's exactly why I support Huawei. NSA does not give a fuck about your security. All that information is used to secure American dominance which is based on economic strength. So the main purpose of all that data collected is industrial espionage to secure american companies a leg up on the competition. It's simply a stated security policy by the US to be the dominant economic power no matter what. It doesn't matter if other countries have smarter people, invest more in innovation or work harder. USA #1 by cheating if necessary. So now China challenges that status and they of course cheat every bit as much at the Americans but at least they give me the option of deciding who fucks me over and make people actually think about securing their data. And it let's me scorn the NSA a tiny bit by choosing some unnamed Chinese SigInt agency over them
 
May 19, 2013
747
445
#16
I never understood the paranoia behind this tbh. I mean my grandad used to work for BT and he'd tell me stories of how he'd sit in the exchange with the operators listening to people's conversations. Lunchtimes they'd tap into the sex lines.

And Jay can read every single PM you send. But I doubt he'd have the time to read it. Let alone 1 billion of them. People get flagged up and focused on, but 99.99% get ignored, even those with copyrighted movies etc. Because we all know the government spies on us but we all like to pretend we don't know that the government knows it can spy on us and the government's know that if they publicly show they know what we already know then we'd all be super pissed off.........you know? :)
Wait so you mean the government do not care what the reply is when my wife texts me asking what I fancy for dinner? Well now I'm offended.
 

V-2

[ [ Tech-Noir ] ]
Jan 1, 2017
3,471
5,065
Kármán Line
#17
V2 you post stat after stat from site after site.

But you know what? No matter how many stats you post relative to the cost of living American working class, just like every other working class in the western world, IS GETTING SHIT ON.

I really don't care whether US GDP is rising.

I really don't care whether US productivity is up.

I really don't care is US industry is up.

I really don't care about China productivity slowing in comparison.

I really don't care about US hourly wage growth per hour.

Because relative to the cost of living day after day, week after week, year after year, the western world is regressing as our super rich corporations and money-elite suckup every cent. So I don't care about how we compare to any country overall. I care about living standards for Average Joe. if you can show me a statistic that shows by say 2030 this bullshit will be a distant memory I'll listen.
I'm not an Average Joe tbh, but I do lean left on most socioeconomic issues because the overall health of the country and well being of the populace at large is important to me. Still, I'd find it difficult not to look at issues in relative terms.

It's simply a stated security policy by the US to be the dominant economic power no matter what. It doesn't matter if other countries have smarter people, invest more in innovation or work harder. USA #1 by cheating if necessary.
They don't though? The last real pillage took place in the aftermath of World War II and that's Germany's fault for being utter spastics. Most of the "cheating" takes place within the country and among US based companies themselves. There is a network of 40+ American FFRDC's that carry out applied research and pass the IP to the US private sector, this sometimes turns out utterly disastrous such as the bleak reality of pharmaceutical corporations and the US government's absolute refusal to put an end to their disgusting practices.

What the does the US need to steal from China, ming vases and pieces of the Great Wall for souvenir? Give me a fucking break. Murica So Evil when Europe went through countless wars for centuries before staging a grand finale of two started in a span of 25 years that ultimately saw (at least) 85 million people end up dead. It "learned" to co-exist when the United States put the continent in check under a collective security blanket, opened its markets and basically invented international free trade in crafting the post-war global order that put an end to all the legit imperial and colonial based bullshit. Murica utterly benevolent by comparison, breh. I couldn't care less if the NSA watches me jack off, I like showing off my dick anyway.

welcome back,stranger................
I've been 'around' but didn't see you in the "Made In America" thread and you don't post on the other forum. You're intelligent enough to realize the full range implications that come with China's actions and how it's going to affect 'ordinary' Americans when economic growth is sapped and vital, innovative industries the country literally brought into existence that serve as valuable sources of high wage employment and global exports are undercut, plus the jobs supported in a multitude of domestic small and medium businesses that are part of the supply chains.

People only see "corporation = evil, me no care" when a firm like Micron gets $9 billion worth in IP stolen and it's so unbelievably myopic and short sighted. There is absolutely zero nuance or attention to details with any mind paid at all to how industries and even individual companies can differ drastically.

This is essentially the biggest single reason we're in a geopolitical showdown with the People's Republic of China. The transistor and integrated circuit were both invented in the United States, it literally spawned the global industry and the biggest reason (allied) countries in East Asia such as Japan, South Korea and Taiwan ever got a leg up was from partnering with American firms. As noted by @Setanta, probably the most consequential invention of the 20th century and there is no such thing as "modern tech" without it.




This landed on Obama's desk the month he was leaving office.




The IP Commission report came out a month after that.

http://ipcommission.org



The biggest reason even more US-headquartered SC firms manufacturing isn't in the United States is because a lot of them are fabless (Qualcomm, AMD, NVIDIA, Marvell) which allows more breathing room to focus strictly on IC design engineering and the biggest pure play foundries are either based or located in geopolitically friendly Taiwan and Singapore. IDM's who both engineer and manufacture their own shit such as an Intel and Texas Instruments keep the overwhelming majority of their capacity stateside.











Things like this are almost a regular occurrence regardless of the corporate tax rate or whatever regulations are in place. Aside from Ireland obviously. :rofl


How do we know? Because they built and opened new US factories in 1996, 2001, 2002, 2003, 2007, 2013, 2017 regardless. Fab 32 is certified by the U.S. Green Building Council anyway and recycles 90% of its solid waste with 65%+ sitewide water conservation.





Why do I care on an even more specific level? Because my city has been transformed from a backwater call center hub into a global advanced manufacturing powerhouse. It happened largely thanks to Intel but also the talent of the labor pool, educational infrastructure, business environment, quality of life, cost of living and supply of land. Why would I be rooting for China to undermine that? Advotech, Amkor Technology, Collabratech, Entrepix, Everspin Technologies, Lansdale Semiconductor, Microchip Technology and ON Semiconductor are all locally hdq and/or start-ups. Someone please explain to me why this isn't desirable.

Its not exactly Wal-Mart superstores or Amazon fulfillment centers.

 
#19
I'm not an Average Joe tbh, but I do lean left on most socioeconomic issues because the overall health of the country and well being of the populace at large is important to me. Still, I'd find it difficult not to look at issues in relative terms.



They don't though? The last real pillage took place in the aftermath of World War II and that's Germany's fault for being utter spastics. Most of the "cheating" takes place within the country and among US based companies themselves. There is a network of 40+ American FFRDC's that carry out applied research and pass the IP to the US private sector, this sometimes turns out utterly disastrous such as the bleak reality of pharmaceutical corporations and the US government's absolute refusal to put an end to their disgusting practices.

What the does the US need to steal from China, ming vases and pieces of the Great Wall for souvenir? Give me a fucking break. Murica So Evil when Europe went through countless wars for centuries before staging a grand finale of two started in a span of 25 years that ultimately saw (at least) 85 million people end up dead. It "learned" to co-exist when the United States put the continent in check under a collective security blanket, opened its markets and basically invented international free trade in crafting the post-war global order that put an end to all the legit imperial and colonial based bullshit. Murica utterly benevolent by comparison, breh. I couldn't care less if the NSA watches me jack off, I like showing off my dick anyway.



I've been 'around' but didn't see you in the "Made In America" thread and you don't post on the other forum. You're intelligent enough to realize the full range implications that come with China's actions and how it's going to affect 'ordinary' Americans when economic growth is sapped and vital, innovative industries the country literally brought into existence that serve as valuable sources of high wage employment and global exports are undercut, plus the jobs supported in a multitude of domestic small and medium businesses that are part of the supply chains.

People only see "corporation = evil, me no care" when a firm like Micron gets $9 billion worth in IP stolen and it's so unbelievably myopic and short sighted. There is absolutely zero nuance or attention to details with any mind paid at all to how industries and even individual companies can differ drastically.

This is essentially the biggest single reason we're in a geopolitical showdown with the People's Republic of China. The transistor and integrated circuit were both invented in the United States, it literally spawned the global industry and the biggest reason (allied) countries in East Asia such as Japan, South Korea and Taiwan ever got a leg up was from partnering with American firms. As noted by @Setanta, probably the most consequential invention of the 20th century and there is no such thing as "modern tech" without it.




This landed on Obama's desk the month he was leaving office.




The IP Commission report came out a month after that.

http://ipcommission.org



The biggest reason even more US-headquartered SC firms manufacturing isn't in the United States is because a lot of them are fabless (Qualcomm, AMD, NVIDIA, Marvell) which allows more breathing room to focus strictly on IC design engineering and the biggest pure play foundries are either based or located in geopolitically friendly Taiwan and Singapore. IDM's who both engineer and manufacture their own shit such as an Intel and Texas Instruments keep the overwhelming majority of their capacity stateside.











Things like this are almost a regular occurrence regardless of the corporate tax rate or whatever regulations are in place. Aside from Ireland obviously. :rofl


How do we know? Because they built and opened new US factories in 1996, 2001, 2002, 2003, 2007, 2013, 2017 regardless. Fab 32 is certified by the U.S. Green Building Council anyway and recycles 90% of its solid waste with 65%+ sitewide water conservation.





Why do I care on an even more specific level? Because my city has been transformed from a backwater call center hub into a global advanced manufacturing powerhouse. It happened largely thanks to Intel but also the talent of the labor pool, educational infrastructure, business environment, quality of life, cost of living and supply of land. Why would I be rooting for China to undermine that? Advotech, Amkor Technology, Collabratech, Entrepix, Everspin Technologies, Lansdale Semiconductor, Microchip Technology and ON Semiconductor are all locally hdq and/or start-ups. Someone please explain to me why this isn't desirable.

Its not exactly Wal-Mart superstores or Amazon fulfillment centers.

tds
 

V-2

[ [ Tech-Noir ] ]
Jan 1, 2017
3,471
5,065
Kármán Line
#20
Don't underestimate the cut throat, psychopathic steez bruh. Let's get fucking nasty then.

Foreign "Investment" restriction through CFIUS is another tool that's being strengthened and utilized. It prevents state-backed Chinese companies from buying up US tech assets and transfering intellectual property overseas, or having their employees train their Chinese replacements. It's necessary when even minority stakes can allow a Chinese investor access to industrial secrets that would otherwise be blocked. There have been at least a dozen deals nixed over the last couple years, and that policy really started towards the end of Obama's second term. Now the EU is falling in line and starting to do the same, Germany has blocked several over the last couple months.

Caught in America's Assault

For a sense of the damage the United States can inflict on China with export controls, take a trip to the city of Jinjiang on the country’s southeastern coast.

That’s where Fujian Jinhua Integrated Circuit Co. built a $6 billion plant to produce semiconductors as part of China’s goal of making the country a self-sufficient technology powerhouse. But after the U.S. President barred exports to the company, its dream is now in tatters with consultants from American suppliers gone, the factories silent and workers rattled.

Less than a month ago, Jinhua was full-speed ahead on an enormous undertaking financed by the local government that blanketed its corner of the city with bristling power plants, hulking workers’ dormitories and modern research labs. It was within months of a deadline to kick off full-scale production of some 60,000 wafers a month, a key step to giving China a competitive producer of memory chips used in smartphones.

Then the U.S. Justice Department accused it of stealing American technology, and Commerce slammed the door on purchases of the chipmaking gear it needed to hit that milestone. Expansion work halted as its American and even European suppliers skipped town. Now, uncertainty shrouds a company President Xi Jinping’s touted as one of three future domestic champions of chipmaking.

The day the U.S. announced its ban, Applied Materials Inc. staff packed up and left, according to people familiar with the matter. The American company had shipped components to Jinhua as recently as Sept. 20, according to an airway bill seen by Bloomberg. KLA-Tencor Corp and Lam Research Corp. also recalled their engineers, the people said. Even Dutch giant ASML Holding N.V. -- whose EUV machines are the linchpin in next-generation chipmaking -- pulled out within days, abandoning work on a second assembly line. The once-smooth influx of equipment ground to a halt. On a windy afternoon in November, a giant plot of land adjoining Jinhua’s campus earmarked for its second facility stood vacant, not even a bulldozer in sight.

So rapid was the exodus that, in many cases, Jinhua employees had no inkling of the departures till they were gone, one person said. Only a smattering of the foreign-employed engineers bothered to inform their peers before catching flights to Shanghai and Taipei, the person said. “They didn’t even give us time to say goodbye,” one person said.

From a broader perspective, the speed with which the U.S. squashed Jinhua’s ambitions underscores the extent to which China -- despite well-publicized intentions of becoming a global tech superpower by 2025 -- remains reliant on American innovation. Jinhua was to spearhead the transition for a country beholden to giants from Intel Corp. to Micron Technologies Inc. It’s an effort that’s become critical as the rivalry between the world’s two largest economies deepens. Indeed, It was Micron that first accused Jinhua and UMC of purloining its trade secrets, setting events in motion.

“Memory chips are cement for the entire IT industry, so China is eager to break the international monopoly and improve its own power of discourse in the world,” said Roger Sheng, an industry analyst with Gartner Research.

Jinhua was a key cog in a campaign to move away from chip imports -- an influx that surpasses China’s annual spending on oil. Now that vision’s in jeopardy. To some, it seems a matter of time until the Trump administration targets the other two designated national champions: Tsinghua Unigroup’s Yangtze River Memory and Hefei Changxin, run by the government of central Anhui province.

Crush Them.
 
Likes: Joe E