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Trade Barriers and De-globalisation - US curbs on selling microchips to China

Graham Watson

19th October 2022

We've just been looking at the US-China trade war, and you might be forgiven for thinking that in the post-Trump era it's over. But is in't.

Joe Biden has introduced curbs on US companies selling semi-conductors to China - largely as a way of trying to protect US economic supremacy. The article is quick to highlight that whilst China consumes three quarters of the world's semi-conductors, it only produces 15% of them, and those it does make are of inferior quality.

However, the flip side is that China is likely to retaliate with adverse implications for global trade, and the continued dispute creates greater uncertainty and that too is bad for the global economy.

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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