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free trade & free markets political economy subsidy

When the CHIPS Are Weighed Down

Has DEI “killed the CHIPS Act”?

The CHIPS and Science Act of 2022 created a giant package of subsidies that shouldn’t exist to begin with and is made even worse by all the strings attached.

The Act authorizes giving $52 billion of taxpayer money to microchip manufacturers to make chips in the U.S. The boost to domestic production will supposedly help us if China invades Taiwan and disrupts Taiwan’s globe-leading microchip industry.

But chipmakers eligible for the largesse are recoiling from all the embedded DEI mandates. “DEI” means “diversity, equity, and inclusion.” It’s a collectivist mantra and ideology designed to make employers fret about racial and gender quotas and DEI indoctrination at the expense of hiring qualified people and making high-quality microchips.

According to Matt Cole and Chris Nicholson, writing for The Hill, nineteen sections of the Act are devoted to DEI. One gives the Department of Commerce a mission that Commerce describes as “strengthening the U.S. semiconductor ecosystem” by ensuring “significant investments to create opportunities for Americans from historically underserved communities.”

The authors believe that CHIPS is “so loaded with DEI pork that it can’t move.” Worse, it’s making it hard for chipmakers to move, forced to focus away from making microchips and, instead, onto the wasteful exercise of appeasing regulators.

Now that they are finally about to get CHIPS funding, Intel and others are delaying announced factories and foundries on U.S. sites and instead going ahead with more overseas plants.

I guess they want to get stuff done.

This is Common Sense. I’m Paul Jacob.


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defense & war general freedom international affairs

Panic at Sea

“The passengers later told local media they feared for their lives,” Newsweek reported.

Those 23 tourists, along with 11 crew members, were traveling from Taiwan’s Kinmen islands, located just six miles off the Chinese mainland, back to the big island of Taiwan, when a Chinese Coast Guard vessel stopped and boarded their boat . . . and for 30 minutes “reviewed their travel documents.”

The Chinese regime, “in response to the recent deaths of two Chinese fisherman, whose speedboat . . . capsized while being pursued by Taiwanese authorities for allegedly trespassing in restricted waters,” has threatened to “step up maritime law enforcement around Taiwan’s outlying Kinmen islands,” explains the magazine.

Kuan Bi-ling, head of Taiwan’s Ocean Affairs Council, said the incident “caused unnecessary ‘public panic.’”

A bit dramatic for just checking people’s IDs. 

But context is everything. 

After all, Chinese dictator Xi Jinping has repeatedly threatened a military invasion that would inevitably kill thousands upon thousands of Taiwanese. And China’s ever-growing military constantly stalks Taiwan, regularly encircling the island with its warships and planes.

The concern of Taiwanese officials is that China’s stepping up its harassment campaign. For 30 years there has been peace around Kinmen, which has become a tourist attraction memorializing Cold War times.

We don’t want to re-live that frosty period, just remember it.

“We urge the PRC [People’s Republic of China] to engage in meaningful dialogue with Taiwan to reduce the risk of miscalculation,” declared a U.S. State Department spokesperson.

But the problem isn’t miscalculation. The Chinese calculate that they can get their way by threatening, bullying, and intimidating Taiwan, their neighbors, the U.S., and the rest of the world. 

Panic? Try not to . . . when Chinazis are checking your papers.

This is Common Sense. I’m Paul Jacob.


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Dangerous Neighbor

“Are you a journalist?” asked the woman in an overflow crowd of thousands, who, like me, couldn’t fit into the packed stadium for a Democratic Progressive Party rally on the eve of Taiwan’s election.

“Or do you just love Taiwan?” 

With a broad smile, I told her: “I love Taiwan.”

This, my second trip to the beautiful island nation, was as inspiring as my first, in 2019. 

Two other women in the crowd explained they flew in from Italy to cast their ballots — believing the future of Taiwan depended on their vote. Which, of course, it did.

Most poignant was my conversation with a couple who had escaped the Chinazi clampdown in Hong Kong. After discussing how those 2019 protests helped “wake up the world,” I snapped a selfie with them. 

Then, five minutes later, they came back to ask me not to post their picture on social media without blacking out their faces. You see, they have relatives still in Hong Kong who might face harassment or worse from the Chinazis, if they were outed. 

“Enjoy the freedom of Taiwan today,” a Taiwanese man had offered earlier in the day at the Kaohsiung Museum of History. “It may be gone tomorrow [Election Day].” He feared a KMT victory would usher in a government far too willing to cozy up to the Chinese regime. 

On Saturday, however, DDP presidential candidate Lai Ching-te won a clear victory. His triumph was declared by the gaslighting Butchers of Beijing to be an “extreme danger.” 

But it is obvious to all that the nation of Taiwan is a danger to no one . . . and Communist Party-ruled China is a danger to everyone. 

This is Common Sense. I’m Paul Jacob. 


* One doesn’t need to look to Asia to see the threat from China. Chinese dissidents in the U.S. and Canada are routinely harassed and threatened, which our governments seem unable to do much about. And the website we’ve launched — StopTheChinazis.org — has numerous writers but only two have chosen to use their real names. Why? Fear of reprisals from the CCP against Americans here in America. 

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international affairs Internet controversy

Sit Back, America?

“America just needs to sit back,” insists Joseph Solis-Mullen, author of The Fake China Threat and Its Very Real Dangers. This, he says, is the best reaction to an admittedly aggressive China.

On his podcast, Tom Woods asserted that a Chinese invasion of Taiwan would be “a net-negative for the overall cause of human liberty” before asking Solis-Mullen: “So is your position that that’s a very unfortunate thing but there is absolutely no way the United States is going to defeat China over Taiwan, so what’s the point in trying?”

Solis-Mullen answered in the affirmative: “the U.S. would lose an attempt to block China from absorbing Taiwan.” 

To illustrate, he noted that “it’s 80 miles off the coast of China,” and said “imagine someone trying to invade Cuba, for example, and the United States was determined not to let them. Of course, they couldn’t.”

An unfortunate formulation, since the U.S. is not threatening to invade Taiwan; China is!

Better to have said, imagine an eastern hemisphere power trying to protect Cuba from an invasion by the U.S. Since to this day you can find American politicians advocating a conquest of Cuba, the analogy is more nearly exact.

And perhaps for similar reasons as to why Cuba remains unconquered, Taiwan is actually defensible — especially with U.S. naval and air support. 

While a recent CSIS war game showed massive death and destruction should China surprise Solis-Mullen by launching an amphibious assault, it in turn found China’s navy devastated and the attack repelled. Ian Easton’s look at The Chinese Invasion Threat also concluded that Taiwan can defeat a PLA invasion force.

Today, treaty obligations require the U.S. to come to the military defense of Japan and the Philippines, both under threat from China. The Taiwan Relations Act mandates that we provide Taiwan (which lies between them) with the wherewithal to defend itself and President Biden has repeatedly pledged direct U.S. military assistance should China launch the unprovoked attack the CCP regularly threatens.

Solis-Mullen advocates we abandon these obligations. He seems to recognize it means a complete U.S. withdrawal from Asia and Chinese Communist Party “domination,” but his notion that it “will not impact our prosperity at all” is naïve.

Sitting back to watch another evil empire gobble up free peoples would be, as Tom Woods put it, a huge blow “for the overall cause of human liberty.”

Seems like the wrong armchair position.

This is Common Sense. I’m Paul Jacob.


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Can’t Eat Chips?

“The hawks will generally talk in terms of ‘the technology will fall into China’s hands,’” says political scientist Joseph Silos-Mullen, referring to a threatened Chinese invasion of Taiwan, where 90 percent of the world’s high-end computer chips are fabricated.

“That would never happen,” the author of The Fake China Threat assures, “because the United States has already said publicly that they would destroy — that they would literally bomb out of existence — those very factories.“

Wow. Sure seems those semiconductor chips are awfully important.

It’s a “pretext,” he argues — and I’m quoting from his November Tom Woods Show appearance. “Even if China had [the high-end chip fabs], why wouldn’t China want to sell [chips] to the rest of the world? Right? What good is it just to hold all of the semiconductors? It doesn’t make any sense.”

After Solis-Mullen complained about a lack of follow-up questions in mainstream media discourse, historian and podcaster Woods inexplicably failed to ask him one. Instead, Woods doubled down by dismissing previous fears that some authoritarian dictator might monopolize “all the oil.”

Woods inquired incredulously, “What would you do with it? Unless you have a fetish for it. What would you do with it?”

“Drink it?” Solis-Mullen jokingly asked.

Hahaha. But, seriously, Mr. Woods, no concerns at all about “so-and-so” having a monopoly on oil? Not even Putin? Or China’s Xi Jinping?

¡No problemo! Xi can’t drink the oil, after all. He would just have to sell it to us . . . and surely at very reasonable rates.

Right? Whew! That was close.

Maybe the CCP could “never” get its hands on those fabs producing all the high-end computer chips, but if somehow it did, are we really supposed to believe it wouldn’t be YUGELY advantageous to China? 

Say, militarily?

You know, should this “fake” threat keep becoming more and more real.

This is Common Sense. I’m Paul Jacob.


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general freedom international affairs national politics & policies

It’s a Date

“Do not mess with Taiwan before 2028,” Vivek Ramaswamy instructed translators to tell Chinese ruler Xi Jinping, “before the end of my first term, okay?”

Responding to a question from Hugh Hewitt on his radio program, Ramaswamy — the entrepreneur, author, and GOP presidential candidate — urged a “move from strategic ambiguity to strategic clarity.”

The right idea, I guess, just not elaborated in the clear-thinking manner I have been hoping for.

You see, there was a “second part” to Ramaswamy’s foreign policy prescription. “That commitment is only as far as 2028,” he explained, “by which point I will have led the United States of America to achieve semiconductor independence, and we will not take the risk of war that risks Americans lives after that for some nationalistic dispute between China and Taiwan.”

“Some nationalistic dispute”?* Sure, between the democratic miracle of the last century and a genocidal totalitarian regime that claims it . . . along with claiming 90 percent of the South China Sea, the world’s busiest waterway.

A skeptical Hewitt heard Ramaswamy “saying ‘I will go to war, including attacking the Chinese mainland, if you attack before semiconductor independence. And afterwards, you can have Taiwan. So if you just wait until 2029, you may have Taiwan.’”

Let’s make the world safe for semiconductors! 

But . . . not for people? 

Ramaswamy’s transactional approach might make the Taiwanese feel less inclined to assist our efforts toward semiconductor independence. And what a terrible message to send other allies in the region!  

As the democratic countries of Asia and the world are stepping up and coming together to push back against Beijing’s belligerence, the U.S. ought not jeopardize this by suggesting more convenient dates for calendaring in future Chinazi invasions.

This is Common Sense. I’m Paul Jacob.


* From the interview, Ramaswamy appears ignorant of Taiwanese history; namely, the fact that the Nationalist Chinese forces that fled to the island in 1949, as well as their offspring, comprise a distinct minority of the island nation’s population. Meanwhile, the native Taiwanese had been under Japanese colonial rule for the previous fifty years and, prior to that, never completely under Chinese control.

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