Get Ready for War with China

the world is a mess first the Russian Ukraine conflict and now China and Taiwan are butting heads if you think this doesn't impact you well you're in for a rude awakening today I'll tell you how the China Taiwan conflict will mortally wound the semiconductor chip industry and take the chip shortage situation further down to zero we'll also see how the conflict will exist or abandon inflation here in the U.S and on top of that we'll talk about how the car industry will come to a stall and new car deliveries which are already delayed will go further down the wait list things started heating up recently when U.S House speaker Nancy Pelosi announced she's visiting Taipei this got China riled up so why is China so mad let's look at Taiwan first you might think it's just small innocuous Island and nothing more but here's the thing not many people know this but Taiwan makes more than 90 percent of the world's most advanced semiconductors last year alone Taiwan exported some 118 billion dollars worth of chips and that's despite the global chip shortage we've been seeing the last couple of years the chip shortage as of recent has been mainly due to surging demand and also pandemic related disruptions in production actually the chip shortage has been one of the huge factors why new car production fell behind and then Russia's invasion of Ukraine made the chip shortage even worse only recently several analysts finally became hopeful that the shortage might end later this year maybe next but then the China Taiwan conflict started brewing a few weeks ago so now we might be headed back to square one let me explain let's start by looking at semiconductor chips themselves typically chips are made out of silicone and they're responsible for the control and memory functions in various products I'm talking about everything from computers to smartphones to even microwaves and of course cars in modern high-tech cars semiconductors are needed for important functions like safety feature sensors displays power management infotainment power steering and more modern electronics and computers just can't run without these chips so you can see why any company or country that makes them as a powerful position to be in but now imagine a small area of land is responsible for most of the chip production in the world and that is Taiwan it's a bit smaller than 13 000 square miles we're talking almost the size of the U.S states of Delaware and Maryland combined or you can think of it as a tad larger than the country of Belgium but its population is over 23 million people making it one of the most densely populated countries in the world so here in the small dense places where most of the world's semiconductors come from the largest chip maker in Taiwan is also the largest maker in the world they make all almost 50 percent of the global Supply and that's the Taiwan semiconductor Manufacturing Company Limited or tsmc for sure let's put that into respect just view the top ship maker side by side the second most powerful company in chip Market of Samsung which is located in South Korea they account for 17 percent of the world's chip reduction and the largest chip maker outside of Asia is global foundries It's actually an American company but they only make seven percent of the world's production so you can see the large disparity in volume and you can see why tsmc alone is crazy important to the world let alone the car industry tsmc was founded back in 1987. they think all sorts of chips for various Industries their biggest customers include Apple AMD Nvidia arm broadcom and more by the way did you know that apple is their biggest customer Apple makes up 26 the tsmc's revenue but recently tsmc warned that if the already high attentions with China continue to escalate tsmc operations could pretty much cease according to current chairman of tsmc Mark Liu if China were to physically invade Taiwan tsmc wouldn't be able to cooperate due to their Reliance on the global supply chain at the end of the day human lives would be impacted which is the biggest tragedy but even if you personally don't care about that what you do care about is your own convenience no more chips mean no more new smart forms computers appliances or cars in the near horizon or you'll have to use your devices longer before you can upgrade this would be a bigger technology crisis than the shortage we've been seeing so far just consider the past two years the chip shortage hobbled the car industry and caused major car companies like Ford Volkswagen Fiat Chrysler Toyota Nissan scale back in production Ford missed 1.25 million Car Sales last year Volkswagen's production was 1.15 million less than planned and GM Toyota and solanus also came up short in production each by a million cars all together these car companies alone produce five and a half million cars less than initially planned and that's not counting the other car makers of the world so now if China doesn't pay Taiwan this will further hurt car companies TV makers will take the biggest hits since they require even more Electronics than traditional cars regardless of EV or conventional gasoline cars high-tech features and cars will get next there's just no way around it we've already seen this with current chip shortage for example this year GM cut out certain features on a range of models to the chip shortage that's why a lot of 2022 Chevy Buick Cadillac or GMC models right now don't come with heated and ventilated seats or heated steering wheels this seems like a minor inconvenience but actually it's one of the most popular options for new car buyers if you're wondering where the other chip makers are well specific to the car industry the largest automatic chip suppliers other than tsmc include Infinium Technologies in Germany they Supply more than 13 percent of the cars Industries chips next up is nxp semiconductors in the Netherlands they Supply 10 and then there's Renaissance and Japan and eight and a half percent and taxes instruments at 8.3 anyway if you think that's bad it gets far worse and it's something that even Homeland Security is shaking and their boots about what China were to take the tsmc facilities in Taiwan and use resources to boost its own Mainland needs just to give China a massive Global technological advantage which would present a literal nightmare scenario for U.S Homeland Security in other countries too if you're wondering what Nancy Pelosi's visited anything to do with it all well according to news reports China had previously sent strong warnings that its military would not sit idly by if Pelosi were to visit but Pelosi ignored the warnings and visited Taiwan anyway and now China is livid the thing is China believes Taiwan belongs to them it doesn't really recognize Taiwan as an independent Sovereign Nation so if you're China and you say don't land in Taiwan pretty much you're saying don't trespass but then someone deliberately ignores you and comes anyway well that's why China feels they just got slapped in the face the conflict between China and Taiwan is nothing new it's been evolving since 1945 when China subjected the island of Taiwan and other territories in the area to this political regime of Communism China currently claims sovereignty over the South rule Island China considers Taiwan a breakaway Province Taiwan considers itself an independent country and even has its own Constitution and democratically elected leaders did you know that Nancy Pelosi is highest ranking U.S official to visit Taiwan in 25 years the morning before Nancy Pelosi's visit Chinese fighter jets took to the sky they flew right along the Taiwan Strait as a visual warning after Pelosi's visit the Taiwanese government said that it had come under Cyber attack but now China is conducting more military drills in the waters and airspace around Taiwan this may just be the beginning the numbers aren't on taiwan's side China has 412 000 Ground Force personnel in their Eastern and Southern fleets that one only has 88 000 and remember Taiwan is an island country the island nation's absolutely outnumbered fighter jets warships and submarines actually Taiwan has no aircraft carriers at all not even one obviously they don't have the power to defend themselves if China does declare Ward and invade Taiwan the loss of human lives would be by far the worst consequence but also Taiwanese shipping lanes would be negatively effective you see the shipping lanes in Taiwan are among one of the busiest in the entire world as it is let's put this in perspective in the first seven months of this year almost half of the world's 5400 container ships use the Taiwan Straits these ships were transporting not only semiconductors and cell phones but also appliances and clothing but in addition to that some 88 percent of the largest container ships of the world use the Waterway so if China invades Taiwan well these shipping lanes would no longer be safe to pass so you can imagine what Havoc this will throw on the shipping industry but on a positive impact most of those ships are Chinese ships delivering Chinese products to the world and they'd kind of be doing themselves a disservice by closing the shipping lanes tsmc chairman Mark Liu recently stated that war brings no winners everybody loses he added that tsmc's manufacturing facilities are very sophisticated and they depend on real-time connection with the outside world especially with countries like Japan the US and those in Europe tsmc depends on these countries for everything from chemical close to materials spare parts and even engineering software and diagnosis hopefully by now you can see why in our connected World offshore conflicts like this no longer impact just local countries but also impact everyone in the world including you and me here's another serious consequence we all agree that prices are higher than we've ever seen in fact inflation is an all-time 40-year high now the US government isn't just sitting idly by it's actively trying to control but Chinese Taiwanese tensions are seriously complicated in the U.S government's efforts to reduce prices and control the inflation you see back when Donald Trump was president under Section 301 he imposed tariffs on literally hundreds of billions of dollars worth of Chinese Imports for a couple of months now President Biden has been evaluated and possibly nixene are easing some of these tariffs that's because reducing tariffs could be a means to help temper inflation rates here in the United States for example reportedly Biden has been weighing possible options to eliminate certain tariffs expand the list of tariffs exclusions to help domestic companies that don't have other options for supplies outside of China now dividing Administration is reconsidering whether or not to lift some of the tariffs if any what does this all mean to you and me well here's the thing about tariffs in general tariffs make it more expensive to import products that levees are placed upon so what would happen if Biden carries through on his original plan to remove certain tariffs well if you ask any U.S products executive they'll tell you that tariffs add to a product sale price if you remove or reduce tariffs on Imports of China they would help bring down the price of a product but that's not necessarily always true tariffs aren't the only inflation pressures that suppliers are patients yet there are other analysts that will tell you a different story they say that yes removing the tariffs will reduce prices but it'll be barely noticeable some say that removing all Trump era tariffs on Chinese Goods could reduce Consumer Price Index by 0.26 of one percentage point at most whatever the cause if these tariffs aren't removed it won't help inflation one bit just the opposite if the U.S gets drawn further into a possible Chinese Taiwanese War it could lower the U.S gross domestic product by 5 to 10 percent and the US is aware of this actually most of the major world governments are and they're already preparing they're literally pouring billions of dollars to improve their domestic ship manufacturing capabilities take the US for example Congress recently passed a 52 billion dollar funding bill to help Intel Corporation and also tsmc to boost their chip manufacturing footprint in the United States most people know that China is pretty skilled at making fakes and that's across various Industries not just clothing bags and watches a recent report found that the Chinese group called apt-41 stole an estimated trillions of dollars in intellectual property theft and they didn't just steal from a few companies they stalled through about 30 companies across the energy manufacturing and pharmaceutical sectors a 12-month investigation by cyber reason named Operation cuckoo bees found that hundreds of gigabytes of intellectual property and sensitive data were taken from companies across North America Europe and Asia by Chinese hackers I'm talking about stolen information like diagrams blueprints formulas and Manufacturing related proprietary data different fighter Jet's missiles and depression and obesity drugs they targeted information and blueprints from products that weren't even patented yet evidently the Chinese cyber Espionage campaign has been operating on detectives since 2019 according to the FBI China has a bigger hacking problem than any other major Nation combined and guess who its biggest target is brace yourself because it's the United States and today China is cloning electric cars that mimic popular EV Brands if you're wondering why they're attracted to EVS now just look at the sales stance in the first quarter of this year Alone 2 million EVS result there was a 75 increase compared to quarter one from the year before China obviously has noticed a huge growth potential in electric vehicles and China companies like leado Neo and x-punk have all made it clear that they're shooting for Tesla's top spot here's the thing all Tesla models share one thing in common a high purchase price after add-ons are Model S can easily cost you over a hundred grand and China knows this and here's where they come in China is a massive non-union labor force and Supply chains so production costs are low that's why ripping off car designs and selling them for less than the price so the Tesla comes easy to them let me give you an example look at state-owned Chinese car maker changan Automotive recently it launched a new EV that looks a lot like a Tesla Model 3. the name of the Tesla want to be is the shenlon sl03 it offers 320 miles of range compared to Tesla Model 3 range of 358 miles the width wheelbase night so these two cars are almost identical except the shenline sl3 is about four inches longer than the model 3. but the similarities don't stop there inside both cars Interiors are very minimalistic both have a large horizontal Center display and both use extremely similar user interface in China the Tesla Model 3 starts about 40 Grand but Shenron slo3 is much lower just twenty six thousand dollars that's a nearly fifteen thousand dollar difference between the authentic Tesla Model 3 versus the shenline slo3 copycat needless to say the shed line sl3 gained almost instantly popularity giant within just the first hours of its launched the shenline sl3 received over 15 000 reservations eventually the company plans to produce 15 000 units per month they're planning to build five factories globally and expand globally too I'll give you another example several weeks ago Chinese smart EV makers hacked pong Motors launched the first G9 SUV as you can see its similarities to the Tesla Model why if you're wondering why G9 has emulated model y just look at model y success in the first six months of 2022 more than 172 400 model wise were delivered to customers across China that's an increase of 188 percent from the year prior cutting Dax Punk the G9 only needs five minutes of ultra fast charging to get 124 driving range miles right now Tesla's Auto Parts software has not been approved for use in China but some versions of the G9 will come fit with the lidar sensors that can use the city navigation pilot software to autonomously drive the SUV in urban areas without human intervention within the first 24 hours of its pre-sale launch on August 10th gg9 received some 23 8 000 offers now Tesla isn't the only victim here there are other car companies whose car designs are being ripped off by Chinese EV makers Jaguar Land Rover took Chinese automaker changling to court ripping off the designs of the Range Rover Evoke SUV the judge ruled in favor of Jaguar Land Rover in 2019 and jingling was ordered to immediately stop sales manufacturing and marketing of their SUV called the land wind X7 and they were ordered to come at St Land Rover too funny enough in kuangjing China a jingling will end with X7 an authentic Range Rover Evoque actually brushed against each other in real life by sheer coincidence talking about accidentally millionaire twin Volkswagen's design was also infringed on back in 2017 at the gin and Evie show the wickaroo V7 caught consumers attention that's because this low-speed TV looked an almost mirror image of the Volkswagen e up with only 75 miles of range and a top speed of 31 miles per hour this EV is definitely low speed it's also definitely a copy almost every single body panel and pirate look identical to the original ER even a logo on a car looked almost identical Volkswagen's classic logo and then there's yet another Chinese company named Beijing Aztec technology it's rumored to have applied for a patent on a design that's almost identical to a classic Mini the mini is an iconic car owned by the BMW group and the original Mini went out of production in 2000 and now Chinese company want to make the electric car clone of the mini hatchback pretty much if you look at patent photos it's as if a Beijing Aztec technology put the mini design in a copy machine and printed it in gracedale needless to say BMW is not happy about all this did you know that China also got some hot water with a Apple car but it wasn't just any run-of-the-mill copycat that tried to mimic the Apple car's design it was an ax Apple engineer back in August 2022 former Apple engineer employee shol Lang Zhang pleaded guilty to stealing confidential information from Apple saying also had been working as an engineer in the self-driving car project since 2015. but out of nowhere in April 2018 sang informed Apple that he decided to resign so he could be closer to a sick mother in China but here's the real story saying it actually decided to go to work for Chinese automaker X Punk now zanga told Apple he'd work for x-punk once he got to China and so Apple started investigating Zang especially because the Apple car is a super notoriously secret project apple found out he had actually transferred 24 gigabytes of Highly problematic data to his wife's laptop and that included a whopping 25-page document with circuit board schematics for the Apple car Azan got to the San Jose International Airport to return to China he realized he wasn't alone federal agents were there and they were looking form the agents ended up intercepting and arresting them right there at the airport well let's just say that Zhang wasn't the stealthiest thief either surveillance cameras at the scene found that he was arrested he had on his person some circuit boards of a server which he stole from the Apple lab the next Punk come to Zhang's rescue not even close after Zhang's arrest publicly announced that they had nothing to do with this case and they had no knowledge of any details of it they also added that they were never involved in the investigation by the U.S Judiciary authorities and that they had no related dispute with that later in July of the same year Federal grand jury in San Jose indicted Zang for obtaining a 25-page document to contain detailed drawings of a circuit board design that was going to be used in an apple car recently pleaded guilty to the theft and he could face up to 10 years in prison in a fine of up to 250 000 but saying isn't the only Apple employee to have been accused of stealing information about the Apple car back in 2019 another former Chinese Apple employer was charged with attempting to smuggle out of China Apple car schematics manuals photographs and Rams to China this case is still ongoing but now you tell me do you think China will invade Taiwan and do you even care please share your opinion by commenting below if you like this video please like share and subscribe thanks for your support [Music]

Channel: Scotty Kilmer

Views: 453,849

Keywords: auto, auto repair, car, car diy, car repair, cars, diy, how to, mechanic, repair, scotty kilmer, car review, war, get ready for war, going to war, are we going to war, should we go to war, the truth about war, wartime, is the united states going to war, war stories, get ready, ready, china, chinese, chinese cars, china cars, war with china, us vs china, united states, china war, going to war with china, chinese war, will china go to war, will the us go to war, chinese car clones

Id: KvX4QzzW5ZI

Length: 18min 20sec (1100 seconds)

Published: Mon Aug 14 2023