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DECEMBER 2022
A tale (from 12)
Devonshire-Ellis, Chair of Russia and China
China’s propensity for infringing and not Belt Initiative, agrees that the ban will
respecting U.S. patents — especially those likely have the U.S. government’s primary
in the high technology sector — is legend- goal of slowing China’s progress in the
ary. high tech area — but won’t stop it.
Controls justified Time to pull ahead
Many believe the harsh October 7 sanc- Instead, adds Ellis, “It is more likely to
tions are merited as a payback that should give the U.S. manufacturers time to pull
have been introduced years ago. Still, ev- ahead of China in technical aspects and to
erything has a price, and even more so in achieve what Washington considers a safe
diplomacy between countries. distance in capabilities.”
While the longer term, Devonshire-Ellis
says, reflect the U.S. convern over the
race for dominance in AI, there are other
geopolitical interests.
These include the potential impact over
other global industries, where the U.S.
wants to become dominant, as in electric
vehicles.
Decline of gas-operated vehicles
There are some one billion gas-driven
vehicles. That number, says Devonshire-
Ellis, is expected to fall by half by 2030.
This means there is a growth market in
Xi Jinping, China’s president-for-life, plants a tree in Beijing.
(China News Service) EVs potentially between now and the dec-
dade’s end. “Washington wants itufactus
A worsening supply chain to take the lion’s share of that — at least
Writing about the October sanctions one in the tetories is political sway over.”
month later for Microsoft News, Jude San-
nith of CNBC maintains “The global semi- Washington, he says, has been pressuring
conductor supply chain is set to worsen.” chip makers and equipment suppliers in
Europe, such as the Dutch ASML, to limit
He says “escalating prices coupled with a its sales to China.
more severe supply crunch, “experts say
is the unwelcome fallout” of the October Devonshire-Ellis asks if the sanction give
controls. the U.S. an advantage. The main ques-
tion, he says, is “how much time will the
Quoting an executive at Kinaxis, a supply sanctions delay China’s ability to produce
chain management firm, Sannith reports, advanced semiconductors?
“The semiconductor supply cruch is here
to stay. for another three to five years.” In reality, “The cat is already out of the
bag,” he contends. Many companies in
In a recent article for China Briefing, Chris next page
