Ireland's Relationship with the US Needs to Evolve

Ireland's efforts to attract Chinese tech giants like TikTok, Temu, and Shein are facing challenges due to the escalating economic rivalry between the US and China. The US has expressed concerns about China's economic strategy and the potential for flooding western markets with cheap exports. As a result, the US Congress has called for a re-evaluation of US policy towards China, including holding back Chinese economic development. This has implications for Ireland, which has a strong trade and investment relationship with both countries.

Ireland's growing economic partnership with China, particularly in the high-tech and pharma sectors, is at risk as supply chains are restructured and countries focus on security and control. The US is willing to pay the economic costs of its rivalry with China, which could put pressure on Ireland to choose between the two countries. This could impact Ireland's inward investment and potential for growth. Experts warn that Ireland may be caught in the middle of the economic rivalry between the US and China, and it will need to carefully navigate its relationship with both countries.

The business ties between the US and China are strong but fraying, with tensions and conflicts between the two countries. Many big US companies rely on China for a substantial part of their income and depend on Chinese suppliers and factories. Sales from China amount to 7.1% of S&P 500 revenues for the 12 months through December [a4695595]. The US has been cracking down on China, accusing it of abusing commercial relationships, subsidizing local industries, and threatening national security. The US-China conflict has not led to a major disruption in business ties, but there are concerns about future prospects. Despite restrictions and bans, semiconductor companies like Nvidia, AMD, Intel, and Taiwan Semiconductor continue to receive substantial revenue from China. Apple also ships large quantities of semiconductors in and out of China. It is in everyone's interest for the US and China to coexist peacefully [a4695595].

The Biden administration has imposed heavy tariffs on a range of goods from China, including electric vehicles, semiconductors, solar panels, and batteries. The EU will be affected as surplus products unable to reach the US market may be sold in Europe. Irish exporters and importers can expect disruption to their supply lines as China responds and the EU decides on the best mechanism to protect its industries. The new tariffs, phased between 2024 and 2026, primarily target industries where China can outcompete foreign rivals. China is the largest source of imported goods for the EU, and Ireland imported €10.7bn worth of goods from China last year. China has warned that the US move will affect bilateral cooperation. The US has been the most important source of foreign direct investment for Ireland. Tensions between China, the US, and the EU have put pressure on Ireland. Anti-Israel boycotts are affecting KFC and McDonald's in Asia and the Middle East. Wage growth could slow future ECB rate cuts after June meeting. There are alarming differences in teens' diet, exercise, and obesity levels. Charles Leclerc won the Monaco Grand Prix. Carlow retained Leinster SHC status. Dublin beat Galway to book a Leinster final spot. TJ Reid's artistry sent Kilkenny into the Leinster SHC final. Eight people were taken to the hospital after turbulence on a flight from Qatar to Dublin. The son of a Holocaust survivor criticized President Michael D Higgins. The man who commissioned RTÉ's Cheap Irish Homes is selling his own version. [a2b60900] [c7e6818e] [54838963]

China's targeting of Taiwan's semiconductor industry could have a devastating impact on the global economy. U.S. lawmakers are visiting Taiwan despite warnings from China. The potential impact of China targeting Taiwan on the semiconductor industry is discussed [0c68208f].

Chinese leader Xi Jinping warned President Joe Biden about the risks of Washington's ban on the export of American advanced microchips and other sanctions designed to suppress China's trade and technology development; Biden responded by stating that the ban was necessary to protect American national security and that China would not receive advanced computer chips; Xi Jinping's desire to break free from American global power motivates much of his policy, but China still relies on the U.S. and its allies for the technology needed to manufacture microchips; The U.S. holds a significant advantage over China in the global chip market, particularly in the production of powerful chips for industries such as artificial intelligence; Biden's administration has imposed export controls on the sale of advanced chips and chip-making equipment to China, isolating the Chinese tech sector; These controls are designed to impede Chinese economic development and ensure American security; China's attempts to develop a self-sufficient semiconductor industry have fallen short, and it still lags behind the U.S. in manufacturing cutting-edge chips; Xi's preference for state control and harassment of tech companies and entrepreneurs has undermined innovation in China's private sector; China faces the challenge of building a single-nation chip supply chain in a highly globalized industry, which is costly and less efficient than relying on foreign competitors; China's continued ascent would have been better served by maintaining a partnership with the U.S., but Xi's hostility has weakened China's position [3375e020].

Recent studies indicate that the US is gaining a significant lead in the chip war with China. The US is on track to more than triple its semiconductor manufacturing capacity and control nearly 30% of advanced chipmaking by 2032. The CHIPS and Science Act of 2022, which allocated $39 bn to enhance US chip manufacturing capacity, has been a significant factor in this projected growth. The US has implemented a series of sanctions targeting China’s semiconductor sector. China has more semiconductor plants under construction than any other country and has committed over $142 bn in government incentives to build its domestic semiconductor industry. However, China seems to be putting more energy into legacy chips. Europe, Japan, India, and South Korea have also strengthened their own semiconductor industries. The article also discusses the global landscape of semiconductor manufacturing, the concerns about China's efforts to gain a foothold in the industry, and the geopolitical implications of the chip war [cc1f7054].

According to a recent article, China is losing the chip war with the United States. Chinese leader Xi Jinping's desire to challenge American power and build a self-sufficient semiconductor industry has not been successful. China still relies on the US and its allies for the technology needed to manufacture microchips, and the US holds a significant advantage in the global chip market. The US has imposed export controls on advanced chips and chip-making equipment to China, isolating the Chinese tech sector. China's attempts to develop a self-sufficient semiconductor industry have fallen short, and it still lags behind the US in manufacturing cutting-edge chips. China's preference for state control and harassment of tech companies and entrepreneurs has also undermined innovation in its private sector. China faces the challenge of building a single-nation chip supply chain in a highly globalized industry, which is costly and less efficient than relying on foreign competitors. The article highlights the weakening position of China in the chip war and the implications for its continued ascent [ee29d4f1].

The Biden administration's strategy on international semiconductor competition, as discussed in an op-ed, has backfired. China has responded to the US's aggression by winding down its dependence on American and Taiwanese semiconductor suppliers. This has undermined American semiconductor dominance and placed Taiwan at risk of a potential Chinese invasion. The op-ed also highlights the devastating toll that Chinese export regulations would take on the American economy, with the US semiconductor industry employing over 1.8 million Americans and generating billions in revenue. Biden's chips policy has weakened American companies exporting to China, diminished American dominance of the technology supply chain, and reduced deterrence of a Chinese invasion of Taiwan [a2419416].

The article 'Elaine Loughlin: Our relationship with the US needs to change' discusses the need for a change in Ireland's relationship with the US, highlighting the recent phone call between Taoiseach Simon Harris and US President Joe Biden. The article points out that the low-level priority given to the call indicates that Ireland's special relationship with the US is an unrequited infatuation. It took 70 days for the 15-minute phone call to happen, and the readout from the White House stated that President Biden first congratulated Mr. Harris on his recent election before discussing how to deepen cooperation on various issues. The article argues that while both administrations stress the relationship's basis on shared ancestral ties and values, it is strategically advantageous for the US to have a small island like Ireland in its pocket. Ireland provides airspace and stopover facilities in Shannon and ensures favorable conditions for US multinational companies. The article suggests that Ireland's hyper-focus on the US may limit its ability to exert real political influence. It also mentions that emigration to the US has decreased in recent years, and young Irish people are looking to other destinations for a new life or career. The article concludes by stating that as the world changes, Ireland's view of and relationship with the US must also change [a7a99bee].