China Was Just Sent Back To The Dark Ages
China was just sent back to the Dark Ages now for decades many have been forecasting the fast rising China would take over the United States as the dominant superpower in the world displacing the United States and we might all be speaking Chinese one day well anyway as I've reported many times over the last two years China has big big problems problems so big I don't think they can overcome them such as demographics water energy food political dysfunction and more and if that wasn't enough for them to deal with on their own the U.S has been in trade Wars with them since the Trump era specifically the tech sector the trade War shutting down Huawei ZTE you know targeting Tick-Tock and all that right but what just happened is so much bigger and so much more severe as it stands right now China is finished literally sent back to the Dark Ages so in this video I'm going to break down what just happened to China that changes everything you know and what your expectations would be how this affects China the United States and other players what the ramifications are of China what the new risks are and will be what China's next move could be and what this all means to you so let's go all right welcome back if you're new to the channel my name is Mark moss and I make these videos to change the way you look at money the way that you look at the world and the world is changing rapidly it's exciting it's scary now if we navigate this correctly it could be the massive opportunity we're all looking for that's my plan anyway and hopefully I'm bringing you with me as long as you want to come along so let's take a look and see what's going on in the world this is massive news as a matter of fact this might be some of the biggest news that I can think of in my life I mean this is that big and I'm not trying to give you like this hyped up thing I mean this is big big news has massive implications and we'll talk about some of those implications in a minute all right so let's bring this up here um the new oil now the the the wealth of a nation has always been based off of the natural resources that they have of course uh gold minerals and oil energy is what the whole world needs is what drives the entire world and so Nations that have oil uh did very very well Nations without energy without oil did poorly so oil is um is has been the most desirable commodity in the world but microchips are the new oil they've been kind of like the new oil so let's run through this real quickly just to just so I can show you how big this is before I break down exactly what happened and what their ramifications are so uh just real quickly let's just get you up to speed the history of semiconductors microchips you hear about them what are they you kind of have an idea but you may not know that Bell Laboratories in the United States of course in the US invented the transistor in 1947 so the transistor was something just very simple on a circuit board before the semiconductors okay so Bell Labs 1947 1959 about a decade later the bipolar integrated circuit ICS this is when things really started taking off was invented by Kilby of Texas Instruments all right so Texas Instruments again Texas the United States took off with it and Fairchild Semiconductor in the U.S it marked the dawn of the IC era of course that's the integrated circuits 1967 so right around 1970. I talk a lot about the five industrial revolutions 1971 the age of the microprocessor the 1970 basically right there Texas Instruments developed the electronic desktop calculator now if you're old enough like me you remember those real basic calculators uh well that's what we're talking about here the calculator you don't think about how advanced that is but it needs semiconductors to work semiconductors are now used in every corner of our society and support everyday life so this is kind of a picture of the Silicon transistor and then as 1970 the microprocessor they go in like alarm clocks on your desk and then as they've gone up video games personal computers mobile phones smartphones Etc so that's kind of the the deal but I want to show you the history of that and uh of the technical technological Revolution and that it started in the United States now we're going to come back to that now this is a little bit of the history of the global semiconductor industry or I should say not the history but the demand of the global semiconductor industry from 20 to 20 to 2025 and what you can see is this massive growth of course this is forecast for 2025 and you can see this and this kind of shows you what these are all being used for so we have 11 for automotive we have 31 for communications so the technological Revolution microprocessor led to the internet telecommunications so here we go telecommunications 31 industrial use is 12 data processing a big one almost 35 percent servers we're going to talk about that more in a minute and then down here this little bit of black 11 for Consumer Electronics they're basically anything anything that turns on any type of device has some sort of a chip in it now like I said the demand is growing of course we're moving more into the information age the technical digital age and so everything's got any chips we're gonna need more chips we're going to need more advanced chips now China obviously has massive demand for it when I talk about it as being the new oil I mean it's the new oil this is China's trade balance from 2020. this is two years ago so it's gotten a lot more off balance but what we can see right here is this is their semiconductors and they are importing they are spending almost twice the amount of money on semiconductors than they do for oil now this is a big deal because China has to import about 85 percent of their energy unlike the United States which is the largest exporter of energy so China has to import all their energy and they still spend almost double on the semiconductors that they do in oil why is that well because China's manufacturing everything right they're manufacturing all the Robotics and the AI and everything electronic and they need all these semiconductors right we're going to come back to that all right but if you think China is leading the race you might be wrong as a matter of fact right where it all started is still at the top so this is top semiconductor companies Now intel sits at the top of the Heap we'll talk more about Intel in its place and where tsmc from Taiwan fit in we'll come back to that 72 billion dollars from Intel then we have right here so we have Samsung which is now moved into lead and Taiwan semiconductor and those two again South Korea and Taiwan friends allies friendly countries with the US and then we have uh us us so you see who is leading the race it's still the United States or the friendly countries we're going to break this down a little bit more but I want to frame this up before we dig in okay so I also want to explain this part too really quickly so there's three main types of semiconductors this is super important for you to understand all right so tier one is the highest level chips these are the most advanced the fastest chips and they go in the brand new iPhones they go with brand new iPhones servers remember we talked about the uh the servers they have 30 what 35 percent of the market servers power management systems these are the tier one ships the most advanced chips then we have two tier two and these go in things like cars your smart thermostats you know they can run basic functions and then we have tier three which are the most basic they just go into like a real basic watch uh again back to like that Texas Instruments calculator so real basic things like your alarm clock that just sits on your nightstand so real basic things tier three tier one and two is really where all the stuff done obviously tier one so it's important to understand so you can understand exactly what's happened so let's dig into this a little bit so the tech arms race is on so we've we have been in a period since 1944 Bretton Woods agreement we've been in after World War II we've been in this period of globalization where the world has had increased peace increased prosperity and this globalization has allowed us all to work with each other specialized Industries free and open trade and because of that we haven't really had to be racing other people in arms or technology because we just share as a matter of fact an iPhone I believe has parts from like six different continents inside that phone so we haven't been racing with anybody there's been no competition now we did have the arms race in the Cold War era where Russia and the US were competing to see who could build the biggest arsenal of nuclear weapons but then now I believe we're having a tech arms race and this is exactly what's framing up why well because the world is breaking apart all right so uh the U.S drops the hammer or we might say that the U.S just
hit them right back to the Dark Ages now a lot of people look at China like this with this big old bicep the all-powerful China right they're going to take over the world they're going to install their social credit score system you've got Ray dalio praising China how great they are how powerful they are and then people look at the United States as this little scrawny little guy over here and we're just The Whipping Boy of China that's how the world looks everyone's expecting China to take over their economy is growing so fast and on and on and on well you kind of was but with uh one Biden administrative action that ended it just like that so let's look at some of this a little bit so in 1990 under the WTO agreement this helped bring China up to speed technologically now it's important to understand we'll come back to this but it's important to understand China China's been around forever their dynasties have been around as long as the world's been around right however China lost their place in the world back when the entire world moved to the gold standard China won to stay on a silver standard they lost their place in the world they've been fighting to get back but then they had Mao's Great Leap Forward which was actually a great leap backwards they went into crazy communism about 50 million people died and it's that communism that held them back why in America where we have individualism where we have freedom we have creativity the individualism the freedom the creativity allows us to see problems and come up with Solutions allows us to have freedom of speech so we have these ideas we share them we sharpen them we produce them when you're in communism you have no free thought right everyone is an automaton everyone has to think the same thing it takes away the creativity it takes a way to Ingenuity so after the mouse greatly forward 50 million people died China could not get up to speed they couldn't compete in the world stage until they added a little bit of capitalism in the 80s so let's open up a little bit of freeports let's open up a little bit of free trade and that little bit of capitalism exploded China but really what brought it Forward was in 1990 under the WTO agreement it helped China bring in technology so they started to import Technologies which really got up to speed and now over the last few decades China has been getting more and more and more advanced you hear about them taking over the world with their Ai and their ballistic missile systems and their Quantum Computing and all those things but that's all because we we being the United States NATO et cetera allowed them to get the technology they needed because they can't develop it on their own we'll talk about more of that in a minute but then starting in 2020 with the Trump uh Wars we'll call them Wars they were trade Wars tariff Wars we started applying terrorists now you remember why he was doing it it was because of the technology that they're stealing not developing but stealing we're gonna talk about that in a second but so they started in 2020 and then here we are 2022 Biden signs it restricts it and they're done what do I mean they're done the law that was passed by Biden says that China is now unable to import any types of tools or equipment so they they can't make the chips first of all China doesn't make the chips they're made by other countries I showed you by South Korea by Taiwan and by the United States China doesn't make any they need the chips they spend more on chips and oil to make everything but now they're unable to import chips buy chips they're unable to import any tools or equipment to make or service or even operate the chip right so they can't service operate or anything in the chips they're done they can't they can't buy them the ones that they already have they can't service them they can't operate them nothing on top of that all U.S persons and companies are forced to choose either one leave China or two lose your U.S citizenship and just like that overnight China was done sent back to the Dark Ages and everybody left so China chips microchips they're dead it's done just like that now let's talk about what this means now a couple things I want to show you all right now what are the implications of this so what does this really mean now it's happened it's all over the news you can go find out what's the implications well China is unable to advance technologically they just can't they don't have any chips they can't make the chips they can't buy the chips they can't even get the equipment needed to service the facilities that even make the chips they're done they can't make the chips they're unable to operate facilities for the level one Chips basically any industry that needs Hardware dies any industry that need Hardware dies so they can make clothes they can make shoes they can make tires they can make desks they can make furniture they can't make refrigerators or TVs or computers or missiles or robotics or any of that anything technological they're done anything that needs Hardware is dead all this AI automations they're firewalls the great firewall of China it's gonna be hard to keep that up Social credit score systems all their surveillance systems gonna be really hard to keep that up hyper missiles that they have their defense gonna be hard to do that their space program yep that's done super computers robots yeah all that's done they can make furniture they can make clothes they can make tires that's what they get to make now this is a big deal I'm going to show you how big this is but look how hungry China is for semiconductors this is since 2004 and look at the increase of how many chips this one goes to 2017. if we went to 2022 it'd probably be more like this and what we can see is that the rise of China has been taking on more and more share of the chips being man purchased from the rest of the world now what do they need them for well they need them for all those Advanced things China had put together a new plan under President XI their new plan was made in China 2025. this is a new initiative they're trying to spearhead it sort of like what the US did by trying to re-onsure the chips we're going to talk about that but so China had their own initiative made in China 2025 and what they wanted to do is start to build all these super technologically advanced things including electrical equipment new EV Vehicles information Technologies all kinds of new materials new robotics Aerospace agriculture equipment Pharmaceuticals medical devices new Maritime engineering they had this big initiative by 2025 to develop all this and all that's gone like just like that with a snap of a finger their entire economy is dead all the technology is gone now China was already on the brink right they're already on the brink they don't have the technology right they buy it they can put it together they can't manufacture themselves they don't have the capabilities to do that they don't have the workers that know how to do they don't have the technical skills required to do that they don't have the resources they don't even have the equipment to make it we're going to talk more about some of these resources and what's required to but the supply chains they don't have access to that they have to import all that and they got way way bigger problems than this if this isn't big enough they have bigger ones I'm going to lay those out for you all right so China's on the ropes and the U.S is
in the driver's seat now the US is in the driver's seat because we have all the Ingenuity all the creativity we create this now it's true that Taiwan Purdue uses the microchips but it's the US that controls all the supplies as I already told you the United States is where the semiconductor was invented in the first place but what about Taiwan what about South Korea right Samsung tsmc they're getting up bigger and faster than Intel is right Mark well let's take a look at that so Taiwan does yes make about 65 percent of the world semiconductors and almost 90 percent of the advanced chips it's true the United States doesn't have the capabilities to make as advanced chips as Taiwan that's true by comparison though China produces a little over five percent uh while the US produces 10 percent of the chips but basic chips not the advanced ones like Taiwan does so that that part is true however the United States is still heavily in control so what we can see here is that according to this 2020 state of the U.S semiconductor industry report America Remains the leader in semiconductor Marketplace 65 Global fabulous Market 51 of global IDM Market 40 of global equipment Market but it's even bigger than that so like I said Taiwan has capabilities to make the most advanced chips the US doesn't however the United States Remains the unchallenged world leader the unchallenged leader in semiconductor design controlling about 85 percent of the world market for electronic design automation so the United States designs it invents it and then we give it to Taiwan to put it together so it's not like they're smarter than we are they have better capabilities that we are we are part of it they have part of it we're working together in that now that's important to understand which we'll come back to in a little bit uh when it comes to China and Taiwan we're going to talk about that but also if that doesn't put us in the driver's seat enough as it is then this certainly does so what we can see is the Ultra Pure super secret sand that's silica sand silica sand is made to or used to make semiconductors so the sand that makes the your iPhone possible that makes so the the highest in chips that go in like iPhones and everything else the highest in chips need the purest silica sand available and you know where that comes from good old North Carolina in the United States the processor that makes your laptop or cell phone work was fabricated using quartz from this obscure appellation Backwater North Carolina so um the U.S designs the chips we produce the materials for the chips and then we send it over to Taiwan for it to be manufactured so the US is clearly in control like I said taiwan's the largest producer of chips but the Reliant on the US for design now the U.S is taking all of this back now if we're not already in the driver's seat enough we want more so you've probably heard by now under the byte Administration under this new Chips act they basically the United States wants to re-onshore all of our domestic production of these chips so it's cool that you know Taiwan works with us and they're friendly and South Korea and it's cool that they take our designs and our materials to put them together but we want that to be done here we want to have greater control over that we would like those U.S jobs as well and so
what's happening is under this chip sack you can see the chips for American act why it's necessary and what it does and what we can see is that there's 50 billion dollars of incentives for us and foreign companies to come build in the United States so just like these American companies going to build in China now the US is saying hey foreign companies come build in the United States it's a pretty big pretty big deal we can see lots and lots of big people are coming Qualcomm is commit to spending an additional 4 billion on ships a matter of fact I kind of outlined them right here um Micron 100 billion dollars are going to spend to build a facility in New York Intel a 20 billion facility in Ohio Qualcomm building a facility in New York and tsmc from Taiwan that controls the majority of the market the most advanced chips they're going to come and build in Arizona so instead of sending stuff to Taiwan to get built Taiwan is going to build it here in America we expect over 42 000 highly skilled jobs to be added so if the US didn't already have enough control it is coming on stronger now like I said this sends China back to the Dark Ages I can't imagine a bigger blow sure they can make clothes and furniture and tires and shoes but nothing that has Hardware no electronics their AI robotics compute everything is done even their military I mean what are you gonna do you're gonna I mean you can fight with guns but no no weapons that require any type of Robotics or Hardware so that's a big problem a really really big problem but China has even bigger problems so we talked about the technology we talked about that but they have bigger problems I'm not going to dive into each of these this will trigger you enough to go do your own research or you can leave me a comment let me know if you want videos on these topics but they have a massive demographic problem uh this is bigger than most people even understand or can even think about if I give it to you quickly but this is the demographics in 2020 and what this shows is the largest segment of their population is right here between 50 and 80 years old the problem is you don't have enough young people down here so as these people move up and age out there's no young people coming up below them this is a math problem this is not conspiratorial and there's no fix for this China desperately needs 30 year olds today because they had a one child policy for decades they desperately need 30 year olds and they can't have them they can go pay every girl in the world or in China a million dollars to have a baby it doesn't fix their problem within 25 years half of the Chinese population will be gone they'll just be timed out they'll be old there's not enough people the Chinese population 1.3 1.4 billion people will be cut down to six or seven hundred million within 25 years that is a big massive problem we can do a video on that if you want they have another big problem and that is water China's a National Water emergency so China faces some of the most serious water issues on the entire planet China and a big problem uh you know you can go 40 days without food you only go about three days without water water is essential for Life drought and pollution combined to make devastating water lot of problems so they don't have enough water as it is and the water that they do have they've completely contaminated they've completely polluted out that's a problem the country has 20 percent of the world's population with less than eight percent of the water now you need water for people to live they don't have enough for that they need water for crops to grow you need water for energy so you need water to cool your coal and your nuclear reactor and your natural gas plants you need water for your manufacturing and they don't have any that is a massive problem on its own then we have energy so China's power problems exposed to strategic weakness China has to import about 85 percent of its energy now what if they can't import it what if there was like a blockade that prevented ships from coming on board what if other nations didn't want to sell to China anymore China is done this is a very it's a strategic weakness that they have then we have the food situation this is even worse zizing ping admits China could face a severe food crisis in 2022. China doesn't have the arable land in the United States it's like the Bread Basket over here we can grow food everywhere in China it's mostly does desert and they don't have the water they don't have the land they need to feed their people we have a financial crisis that's happening a banking crisis and then we have political dysfunction on top of that kind of going back to what I was talking about capitalism versus communism the problem is as I already laid out with Communism it's a big problem but it's only getting worse because now xenping has given no indications of stepping away from power they just had their big Congress meeting and he's just given himself more Runway more years to continue to rule the Chinese Party by Iron Fist the problem is in a situation like that is now he's up there all alone without getting information needed it's never going to work it never has worked and it's only going to continue to be a problem so this is if the technology isn't a big enough problem this all is now what happens next I don't know I don't have a crystal ball but let's look at a couple scenarios here so scenario Number One China goes all the way back to the Dark Ages they leave the factories they go back to the fields they do their grow their rice they can still make some stuff textiles you know things like that but they're out of Technology that's option number one um at this point that's the most likely option now what other options are there well another option is that China takes Taiwan by force by War now this is not a far out idea of course we've talked about this before on the channel but we can see right here Chinese military to prepare for war as president G said because what he said in his uh in his speech the other day prepare for war China's people's Liberation Army must quote prepare for war they will not stand down they will not let um anybody get in their way of taking Taiwan back that's what they're saying and what does the United States say well the United States agrees as a matter of fact blinken warns China on quote a faster timeline to force Taiwan to submit for unification so the China says we're going to take it the U.S says yes they're moving faster to take it so that's a real problem um I guess we want to go to war with China now if they take over Taiwan does that fix their situation do they instantly get microchips well no because remember Taiwan doesn't make the chips on their own they need the designs from the US they need the silica from the U.S so what do they do in absence of that plus a lot of people have said strategies chip manufacturers in Taiwan said if China were to take Taiwan by force they would blow up all the factories not China but Taiwan Taiwan or the US will just blow them up way they wouldn't fall into China hand so even if they took Taiwan they wouldn't get the factories and even if they did get the factories they don't have the supplies they need to build them so that's possible now war is possible it's everywhere that's not the possibility and then maybe a more likely outcome is the U.S uses this as a bargaining
chip maybe the U.S says hey you know this problem we're having with Ukraine and uh and Russia China you're a problem because you're buying all the energy from Russia we're trying to sanction them over here but you're giving them all the money so tell you what if you join us and help us defeat Russia if you help us defeat them by sanctioning them not buying their stuff maybe providing some of your weapons to Ukraine Etc in exchange for you joining the size with us we'll give you back access to the technology and maybe it's a bargaining chip I don't know which one of these things it is one two or three but I'd love to hear your opinion you could drop that one two or three in the comments down below let me know what you think now I don't know which one it is um for sure we know one's happening right now um two is highly likely but three seems very likely as well so let me know what you think um either way this is one of the biggest pieces of news that I've seen like I can remember owl the leader the global leader in technology China is going to take over the world just got decapitated now I'd love to hear what you think as always give me thumbs up on this video if you like it if you don't like the video give me thumbs down but tell me why in the comments down below please click on that subscribe button and the bell notifications today when I put new videos out and that's what I got to your success I'm out [Music]
2022-10-24 07:48
