
U.S. Chip Makers Fear Trap in a Trade Deal with China - petethomas
https://www.wsj.com/articles/u-s-chip-industry-cool-on-chinese-purchase-offer-11552936389
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CharlesColeman
> U.S. semiconductor firms say they have told the Trump administration not to
> include them in any deal that calls for Beijing to step up purchases of
> American goods and services. Because U.S. production costs are so high,
> mandatory-purchase quotas would essentially force U.S. chip makers to open
> new factories in China, these companies say, potentially giving China more
> control over their production.

That doesn't make one bit of sense to me. Once the factories are in China,
their products should no longer be counted as "American goods," and purchases
of them should no longer satisfy the quota. Making that quota "mandatory"
should also make China relatively price insensitive, because refusing to make
enough purchases due to price would mean violating the quota.

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CharlesColeman
Paywall bypass: [https://outline.com/V5qU4L](https://outline.com/V5qU4L)

