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Occupied Korea Suffers 1st Trade Deficit with China in 3 Decades
(english.chosun.com)
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this post was submitted on 16 Dec 2023
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If chip exports contributed most to the previous trade surpluses for ROK and now US has sanctioned Chinese companies on the chip aspect, wouldn't the sanctions be the primary reason behind China using homegrown ones? They only abstractly mention "Washington-Beijing tensions" in the last line.
The sanctions are absolutely the reason, and as I recall both ROK and Taiwan fought really hard to get exemptions. I guess now that China's domestic output is ramping up, there's simply no reason to import.
The interesting thing is we are still only in the beginning of the Chip War. Give it a few more years and both occupied Korea and the Chinese rebellion province will be in a much worse situation.
The speed with which China managed to start producing 5nm chips has been absolutely stunning. Even the most optimistic predictions were that it would take around half a decade for China to be able to do that. Now that China got serious about this, I fully expect that we'll see China surpass whatever the west is able to produce within a few years. At that point, China will become the major global chip supplier and it will be very difficult for western companies to compete with that. I'm including ROK and Taiwan under western umbrella here. I wonder if this might end up having an impact on politics in Taiwan as well given that chip exports are a major part of the economy.