Category: Technology

The leadership of the People’s Republic of China (PRC) likes to describe its social and economic structure as “Socialism with Chinese characteristics.” But we can describe the U.S. system, driven by its insatiable greed for profits and global hegemony, as “Imperialism with imperialist characteristics”.

A July 5th Bloomberg article revealed that the Biden administration is pressuring the Netherlands to force Dutch companies to stop selling computer chip manufacturing equipment to China:

The US is pushing the Netherlands to ban ASML Holding NV from selling to China mainstream technology essential in making a large chunk of the world’s chips, expanding its campaign to curb the country’s rise, according to people familiar with the matter.

A computer chip ploy for a vast subsidy for Big Tech

Since the 1970s, U.S. Big Business has closed thousands of plants and factories across the country, while finance capital has invested trillions in overseas facilities to exploit low wage workers. Currently, the predominant manufacturer of the leading edge 5nm computer chip is the Taiwan based TSMC Corporation in Taiwan.

Senator Sanders stated in a July 14th  editorial for the Guardian describing a current piece of chip-industry pushed legislation for $52 billion in subsidies to build a TSMC chip facility in the U.S.:

Let’s review some recent history. Over the last 20 years, the microchip industry has shut down more than 780 manufacturing plants in the United States and eliminated 150,000 American jobs while moving most of its production overseas – after receiving over $9.5bn in government subsidies and loans.

In other words, in order to make more profits, these companies took government money and used it to ship good-paying jobs abroad. Now, as a reward for that bad behavior, these same companies are in line to receive a giant taxpayer handout to undo the damage that they did.

The undersigned chapters and members of the Democratic Socialists of America and other allied organizations and individuals strongly condemn Congress’s use of industrial policy and other elements of the proposed US Innovation and Competition Act (USICA) to counter China as part of a new Cold War fueled by US imperialist interests, which further destabilizes geopolitical relations and jeopardizes efforts toward greater global cooperation on issues affecting everyone worldwide.

We call on members of Congress to oppose this aggressive escalation and push back on the narratives that have fueled rising anti-Chinese sentiment in the US, marked by increased anti-Asian racism and violence. We oppose the USICA and other legislation that calls for increased military budgets, further militarization of the Indo-Pacific region, and fosters anti-Chinese propaganda efforts, all based on nothing more than perceived threats to US geopolitical interests. Elected members of the US Congress have the duty to prioritize the needs and concerns of their working class constituents instead of those of arms manufacturers and defense contractors who have fueled decades of endless war at the expense of genuine global cooperation and common prosperity for working class people everywhere.

We believe that US industrial policy should not be built upon imperialist ambitions that serve only to drag the world into a new Cold War. We believe that working people in the US and elsewhere deserve policies that invest in public works programs, climate resilience, infrastructure, healthcare, and more. The US Innovation and Competition Act is not created for those purposes, instead it is overwhelmingly focused on preserving US global hegemony by fabricating narratives aimed at painting China as a threat and riling up global conflict in an effort to undermine an increasingly multipolar world. If enacted, the bill would ramp up interference in the sovereignty of nations throughout the world, establish an anti-Chinese federal bureaucracy, intensify the militarization of US global policies, and continue the legacy of US industrial policy being weaponized against socialist movements globally. This legislation will promote confrontation and conflict with China, escalate the potential for military conflict between nuclear powers, and hinder global cooperation needed to address critical issues like climate change.

For these reasons, we strongly condemn the USICA and urge members of Congress to oppose the bill and call for an end to US policies that threaten hundreds of millions of people in the Indo-Pacific region and could spiral into worldwide conflict.