China has secured a virtual monopoly over gallium, a critical mineral used to produce microchips in advanced military technologies. Failing to de-risk gallium supply chains could have serious security and economic consequences for the United States and its allies.
Plays stupid games, win stupid prizes as the saying goes.
China spent decades investing into their industry, and developing the skills needed to have the vertical climb we’re seeing. Nobody has a lock on it, and I never said that others can’t do it. What I said was that it will take significant time to do, and Chinese companies will have a market advantage during that time.
It’s also worth pointing out that the reason China is able to do these things is due to the fact that it retained ability to do state planning and it has large scale state owned industry. On the other hand, US ended up being largely deindustrialized because it’s run by financial capitalists who don’t see such industry as being profitable. I recommend reading this article explaining the dynamics of this https://americanaffairsjournal.org/2021/08/the-value-of-nothing-capital-versus-growth/
US would need to either provide massive subsidies for businesses to make this appealing or create its own state industry. Seems to me that neither option is likely given the current political climate in US and the financial situation it finds itself in.
China can have a near vertical climb in production (your chart) but no one else can?
The vertical change takes planning and time, but no one has a lock on it. Especially if it becomes a strategic resource (and it has).
China spent decades investing into their industry, and developing the skills needed to have the vertical climb we’re seeing. Nobody has a lock on it, and I never said that others can’t do it. What I said was that it will take significant time to do, and Chinese companies will have a market advantage during that time.
It’s also worth pointing out that the reason China is able to do these things is due to the fact that it retained ability to do state planning and it has large scale state owned industry. On the other hand, US ended up being largely deindustrialized because it’s run by financial capitalists who don’t see such industry as being profitable. I recommend reading this article explaining the dynamics of this https://americanaffairsjournal.org/2021/08/the-value-of-nothing-capital-versus-growth/
US would need to either provide massive subsidies for businesses to make this appealing or create its own state industry. Seems to me that neither option is likely given the current political climate in US and the financial situation it finds itself in.