From the Telegraph via Yahoo, this article describes how Boris Johnson’s government may allow the sale of Britain’s largest semiconductor manufacturing facility, Wafer Fab, to a Chinese company operating through a Dutch subsidiary.
This is absolute madness and reflects the failure of the Western capitalistic system to respond to China’s strategic challenge. If an entity is not sufficiently profitable, the Western response is to sell it. The Chinese response is strategic–if owning the plant might allow the Chinese to get a toehold or a foothold in making semiconductors–an area where it remains dependent on outside suppliers–then it is willing to spend any amount of money because it is almost certainly subsidized by Beijing’s cash hoard of some $3 trillion. It’s not a dollars-and-cents calculation. It’s a strategic calculation.
The Biden Administration should use its clout with Johnson to stop this sale. Ever since he led his country out of the European Union, he has desired to build up the “special” relationship with the United States. This would be a great opportunity to start achieving that.
