China has retaliated against the Silicon Tax with a new approval system for buying American semiconductors.
Here's what you need to know:
- China will require companies to submit a formal argument explaining why domestic chips aren't sufficient before buying American semiconductors.
- This is a state-controlled permission system, not a tariff.
- The timeline of events is:
- Dec 8: Trump announced a 25% levy on semiconductor exports to China.
- Dec 9: Beijing began drafting buyer restrictions.
- This mirrors the H20 fiasco, with:
- Zero sales
- Zero Treasury revenue
- Months of blocked demand
- Nvidia made $12B from China in fiscal 2024, but this revenue is now locked behind the approval process.
- The semiconductor logic has flipped:
- Washington thought it could sell old tech at premium prices and keep China dependent.
- Beijing responded by turning that dependency into leverage.
- The outcome will shape the decade:
- Either Trump reverses course and returns to containment.#WriteToEarnUpgrade #USJobsData #BinanceBlockchainWeek #PerpDEXRace
