Chips War

My previous post would not be to the point without analyzing in more details the situation around microprocessors in China and how it could evolve. For what was initially the competition between developed nations fighting for market dominance, is about to become the most important global geopolitical battle, which I think can be called ‘Chips War’ between the US and China.
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China AI 2023

Some analysts have recently said that the West can either technologically become the follower of China, or slowly decline into the status of a colony, or if it wants to avoid these scenarios, take urgent actions to leapfrog the current status of lethargy and denial. Read this article on how the approach to AI differs between China and the West, and why Europe has to take action now.
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German Weiqi

After the visit of Annalena Baerbock to Beijing few months ago, another significant event is the publication of German Strategy on China, a document that aims to describe the view of Germany on the future of the bilateral and multilateral relationships with China. The document is important, as it includes sections on how EU should align the position on China, and as it could also inspire similar policies in other countries like Switzerland.

It is important to mention that the document comes two years after EU parliament rejected the comprehensive trade agreement between EU and China, which included important clauses of opening Chinese markets in various industries for EU companies. The Strategy on China doesn’t refer to that Agreement, doesn’t comment it, and doesn’t propose any similar initiative to be renegotiated with China.

China is described as a great economic, technological, political and military power. The document seems to be written several months ago, as it doesn’t include any mention of recent diplomatic events like for example brokering Saudi-Iranian agreement to re-establish normal diplomatic relationships, or expected expansion of BRICS and SCO organizations where China plays key role.

It is not clear who are the authors of this document. But as Annalena Baerbock presented this document in MERICS forum, it could be assumed that MERICS analysts contributed in its preparation.

Here is my point of view on this Strategy.
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